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<HTML><HEAD><TITLE>Form S-1</TITLE>
<META content=03/27/2009 name=date>
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style="FONT-SIZE: 10pt; COLOR: #000000; LINE-HEIGHT: 12pt; FONT-FAMILY: Times New Roman">
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center><B>As filed with the
Securities and Exchange Commission on March 30, 2009</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 6px" align=right><B>Registration
No.&nbsp;333-</B></P>
<P
style="BORDER-TOP: #000000 12px double; MARGIN: 0px; PADDING-TOP: 4px"><BR></P>
<P style="FONT-SIZE: 13pt; MARGIN: 0px; LINE-HEIGHT: 15pt"
align=center><B>UNITED STATES</B></P>
<P style="FONT-SIZE: 13pt; MARGIN: 0px; LINE-HEIGHT: 15pt"
align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center><B>Washington, D.C.
20549</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px"
align=center>_____________________</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center>&nbsp;</P>
<P style="FONT-SIZE: 13pt; MARGIN: 0px; LINE-HEIGHT: 15pt"
align=center><B>FORM&nbsp;S-1</B></P>
<P style="MARGIN: 0px" align=center><B>REGISTRATION STATEMENT</B></P>
<P style="MARGIN: 0px" align=center><B>UNDER</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center><B>THE SECURITIES
ACT OF 1933</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px"
align=center>_____________________</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center>&nbsp;</P>
<P style="FONT-SIZE: 16pt; MARGIN: 0px; LINE-HEIGHT: 18pt"
align=center><B>Dollar General Corporation</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center>(Exact name of
registrant as specified in its charter)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center><FONT
style="FONT-SIZE: 8pt">_____________________</FONT></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=211></TD>
<TD width=211></TD>
<TD width=211></TD></TR>
<TR>
<TD vAlign=top width=211>
<P style="MARGIN: 0px" align=center><B>Tennessee<BR></B>(State of
Incorporation)</P></TD>
<TD vAlign=top width=211>
<P style="MARGIN: 0px" align=center><B>5331<BR></B>(Primary Standard
Industrial<BR>Classification Code Number)</P></TD>
<TD vAlign=top width=211>
<P style="MARGIN: 0px" align=center><B>61-0502302<BR></B>(I.R.S. Employer
Identification No.)</P></TD></TR>
<TR>
<TD vAlign=top width=633 colSpan=3>
<P align=center>&nbsp;_____________________</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=296></TD></TR>
<TR>
<TD vAlign=bottom width=296>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; LINE-HEIGHT: normal"
align=center><B>100 Mission Ridge<BR>Goodlettsville, Tennessee
37072<BR>(615)&nbsp;855-4000<BR></B><FONT style="FONT-SIZE: 8pt">(Address,
including zip code, and telephone number, including area code, of
registrants&#146; principal executive offices)</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=296>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: normal" align=center><B>Susan S.
Lanigan<BR>Executive Vice President, General Counsel<BR>Dollar General
Corporation<BR>100 Mission Ridge<BR>Goodlettsville, Tennessee
37072<BR>(615)&nbsp;855-4000<BR></B><FONT style="FONT-SIZE: 8pt">(Name,
address, including zip code, and telephone number, including area code, of
agent for service)</FONT></P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=316></TD>
<TD width=326></TD></TR>
<TR>
<TD vAlign=bottom width=642 colSpan=2>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px"
align=center><B>With copies to:</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=642 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=316>
<P style="MARGIN: 0px" align=center><B>Joseph H. Kaufman Esq.<BR>Simpson
Thacher &amp; Bartlett LLP<BR>425 Lexington Avenue<BR>New York, New York
10017-3954<BR>(212) 455-2000</B></P></TD>
<TD vAlign=top width=326>
<P style="MARGIN: 0px" align=center><B>Gary Brown Esq.<BR>Baker, Donelson,
Bearman, Caldwell &amp; Berkowitz, PC<BR>Commerce Center Suite 1000<BR>211
Commerce Street<BR>Nashville, Tennessee 37201<BR>(615)
726-5763</B></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 3px; MARGIN-BOTTOM: 0px" align=center><B>Approximate date
of commencement of proposed sale to the public:</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 6px" align=center><B>As soon as
practicable after this Registration Statement is declared effective.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px">If any of the
securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule&nbsp;415 under the Securities Act of 1933,
check the following box. &nbsp;<FONT style="FONT-FAMILY: Wingdings">x</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px">If this Form
is filed to register additional securities for an offering pursuant to
Rule&nbsp;462(b) under the Securities Act, please check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. &nbsp;<FONT
style="FONT-FAMILY: Wingdings">o</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px"><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">If
this Form is a post-effective amendment filed pursuant to Rule&nbsp;462(c) under
the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. &nbsp;<FONT style="FONT-FAMILY: Wingdings">o</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px">If this Form
is a post-effective amendment filed pursuant to Rule&nbsp;462(d) under the
Securities Act, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same
offering. &nbsp;<FONT style="FONT-FAMILY: Wingdings">o</FONT></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px">Indicate by
check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the
definitions of &#147;large accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller
reporting company&#148; in Rule&nbsp;12b-2 of the Exchange Act.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=151></TD>
<TD width=117></TD>
<TD width=190></TD>
<TD width=174></TD></TR>
<TR>
<TD vAlign=top width=151>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px"
align=center>Large accelerated filer&nbsp;<FONT
style="FONT-FAMILY: Wingdings">o</FONT></P></TD>
<TD vAlign=top width=117>
<P style="MARGIN: 0px" align=center>Accelerated filer&nbsp;<FONT
style="FONT-FAMILY: Wingdings">o</FONT></P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px" align=center>Non-accelerated filer&nbsp;<FONT
style="FONT-FAMILY: Wingdings">x<BR></FONT>(Do not check if a smaller
reporting company)</P></TD>
<TD vAlign=top width=174>
<P style="MARGIN: 0px" align=center>Smaller reporting company&nbsp;<FONT
style="FONT-FAMILY: Wingdings">o</FONT></P></TD></TR></TABLE>
<P style="MARGIN: 3px" align=center>____________________</P>
<P style="MARGIN: 3px" align=center>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center><B>CALCULATION OF
REGISTRATION FEE</B></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=267></TD>
<TD width=91></TD>
<TD width=91></TD>
<TD width=91></TD>
<TD width=91></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=267>
<P style="MARGIN: 0px"><B>Title of Each Class of Securities<BR>to be
Registered</B></P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center><B>Amount to
be<BR>Registered</B></P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center><B>Proposed Maximum<BR>Offering Price
per Note</B></P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center><B>Proposed Maximum<BR>Aggregate
Offering<BR>Price</B></P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center><B>Amount
of<BR>Registration<BR>Fee</B></P></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=267>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.625%
Senior Notes due 2015</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)</P></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=267>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">11.875%/12.625%
Senior Subordinated Toggle Notes due 2017</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)</P></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top width=267>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Guarantees
of 10.625% Senior Notes <BR>due 2015(2)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)(3)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)(3)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)(3)</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)(3)</P></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=top width=267>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Guarantees
of 11.875%/12.625% Senior Subordinated Toggle Notes due 2017(2)</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)(3)</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)(3)</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)(3)</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=91>
<P style="MARGIN: 0px" align=center>(1)(3)</P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 3px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 0px">An
indeterminate amount of securities are being registered hereby to be offered
solely for market-making purposes by specified affiliates of the registrants.
Pursuant to Rule&nbsp;457(q) under the Securities Act of 1933, as amended, no
filing fee is required.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 0px">See
inside facing page for registrant guarantors.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 0px">Pursuant
to Rule&nbsp;457(n) under the Securities Act, no separate filing fee is required
for the guarantees.</P>
<P style="MARGIN: 0px; TEXT-INDENT: 48px"><B>The registrants hereby amend this
Registration Statement on such date or dates as may be necessary to delay its
effective date until the registrants shall file&nbsp;a further amendment which
specifically states that this Registration Statement shall thereafter become
effective in accordance with Section&nbsp;8(a) of the Securities Act of 1933, as
amended, or until the Registration Statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said
Section&nbsp;8(a), may determine.</B></P>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 12px double"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>TABLE OF REGISTRANT GUARANTORS</B></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=190></TD>
<TD width=93></TD>
<TD width=74></TD>
<TD width=190></TD>
<TD width=85></TD></TR>
<TR>
<TD vAlign=bottom width=190>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Exact Name of Registrant as Specified<BR>in its Charter
(or Other Organizational Document)</B></P></TD>
<TD vAlign=bottom width=93>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>State or Other<BR>Jurisdiction
of<BR>Incorporation<BR>or&nbsp;Organization</B></P></TD>
<TD vAlign=bottom width=74>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>I.R.S. Employer Identification Number</B></P></TD>
<TD vAlign=bottom width=190>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Address, Including Zip Code, of Registrant&#146;s Principal
Executive Offices</B></P></TD>
<TD vAlign=bottom width=85>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Telephone Number, Including Area Code, of Registrant&#146;s
Principal Executive Offices</B></P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">DC
Financial, LLC</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">N/A</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">DG
Logistics, LLC</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">62-1805098</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">DG
Promotions, Inc.</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">62-1792083</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">DG Retail,
LLC</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">36-4577242</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">DG
Strategic I, LLC</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">26-4507991</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,</P>
<P style="MARGIN: 0px">Goodlettsville, TN 37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">DG
Strategic II, LLC</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">26-4508076</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,</P>
<P style="MARGIN: 0px">Goodlettsville, TN 37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">DG
Strategic III, LLC</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">26-4508134</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,</P>
<P style="MARGIN: 0px">Goodlettsville, TN 37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">DG
Transportation, Inc.</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">37-1517488</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Dolgen I,
Inc.</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">26-4508189</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Dolgen II,
Inc.</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">26-4508236</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Dolgen III,
Inc.</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">26-4508282</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Dolgencorp
of New York, Inc.</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Kentucky</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">62-1829863</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Dolgencorp
of Texas,&nbsp;Inc.</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Kentucky</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">61-1193136</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Dolgencorp,
LLC</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Kentucky</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">61-0852764</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Dollar
General Partners</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Kentucky</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">61-1193137</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Retail Risk
Solutions, LLC</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Tennessee</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">26-1644044</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">South
Boston FF&amp;E, LLC</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Delaware</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">26-0411224</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">South
Boston Holdings, Inc.</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>Delaware</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">20-5220571</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR>
<TR>
<TD vAlign=top width=190>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Sun-Dollar,
L.P.</P></TD>
<TD vAlign=top width=93>
<P style="MARGIN: 0px" align=center>California</P></TD>
<TD vAlign=top width=74>
<P style="MARGIN: 0px">95-4629930</P></TD>
<TD vAlign=top width=190>
<P style="MARGIN: 0px">100 Mission Ridge,<BR>Goodlettsville, TN
37072</P></TD>
<TD vAlign=top width=85>
<P style="MARGIN: 0px" align=center>615-855-4000</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 4px; MARGIN-BOTTOM: 0px"><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 700px">
<P
style="PAGE-BREAK-BEFORE: always; MARGIN: 0px; COLOR: #ff0000; FONT-FAMILY: Times"><B>The
information in this prospectus is not complete and may be changed. We may not
sell the securities until the registration statement filed with the Securities
and Exchange Commission is effective. This prospectus is not an offer to sell
these securities and it is not soliciting an offer to buy these securities in
any state where the offer or sale is not permitted. </B></P>
<P
style="MARGIN-TOP: 3px; MARGIN-BOTTOM: 3px; COLOR: #ff0000; FONT-FAMILY: Times"
align=center><B>Subject to Completion Dated March 30, 2009 </B></P>
<P style="MARGIN: 1px" align=center><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center><IMG height=72
alt=[forms1final001.jpg] src="forms1final001.jpg" width=91 align=middle></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 13pt; MARGIN-BOTTOM: 8px; LINE-HEIGHT: 15pt"
align=center><B>Dollar General Corporation</B></P>
<P style="MARGIN: 0px" align=center><B>$1,175,000,000 10.625% Senior Notes due
2015</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center><B>$655,891,000
11.875%/12.625% Senior Subordinated Toggle Notes due 2017</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 6px"
align=center>__________________________<BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px">The 10.625%
Senior Notes due 2015 (the &#147;senior notes&#148;) bear interest at a rate of 10.625%
per annum and will mature on July&nbsp;15, 2015. Cash interest on the
11.875%/12.625% Senior Subordinated Toggle Notes (the &#147;senior subordinated
notes&#148;) will accrue at a rate of 11.875% per annum, and PIK interest will accrue
at a rate of 12.625% per annum. The senior subordinated notes will mature on
July&nbsp;15, 2017. The senior notes and the senior subordinated notes are
collectively referred to herein as the &#147;notes,&#148; unless the context otherwise
requires.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px">We may redeem
some or all of the senior notes at any time on or after July&nbsp;15, 2011 and
some or all of the senior subordinated notes at any time on or after
July&nbsp;15, 2012, in each case at the redemption prices set forth in this
prospectus. We may redeem some or all of the senior notes prior to July&nbsp;15,
2011 and some or all of the senior subordinated notes prior to July&nbsp;15,
2012, in each case at a price equal to 100% of the principal amount of the notes
redeemed plus the applicable &#147;make-whole&#148; premium as described in this
prospectus. On or before July&nbsp;15, 2010, we may also redeem up to 35% of the
senior notes and 35% of the senior subordinated notes, in each case at the
redemption prices set forth in this prospectus, using the proceeds of certain
equity offerings.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px">The senior
notes are senior unsecured obligations of Dollar General Corporation and rank
senior in right of payment to our future debt and other obligations that are, by
their terms, expressly subordinated in right of payment to the senior notes,
including the senior subordinated notes. The senior notes rank equal in right of
payment to all of our existing and future senior debt and other obligations that
are not, by their terms, expressly subordinated in right of payment to the
senior notes. The senior notes are effectively subordinated to all of our
existing and future secured debt, including obligations under our Credit
Facilities (defined under the section entitled &#147;Description of Other
Indebtedness&#148;), to the extent of the value of the assets securing such debt, and
structurally subordinated to all obligations of each of our subsidiaries that is
not a guarantor of the senior notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px">The senior
subordinated notes are senior unsecured obligations and will be subordinated in
right of payment to our existing and future senior debt, including obligations
under our Credit Facilities and the senior notes. The senior subordinated notes
rank equal in right of payment to all of our existing and future senior
subordinated debt and other obligations that are not, by the terms of the senior
subordinated notes, expressly made senior. The senior subordinated notes are
effectively subordinated to all of our existing and future secured debt,
including obligations under our Credit Facilities, to the extent of the value of
the assets securing such debt, and will be structurally subordinated to all
obligations of any subsidiaries that do not guarantee the senior subordinated
notes. The senior subordinated notes rank senior in right of payment to all of
our future debt and other obligations that are, by their terms, expressly
subordinated in right of payment to the senior subordinated notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px"
align=center>________________________</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px" align=center>&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px"><B>See &#147;Risk
Factors&#148; beginning on page&nbsp;10 for a discussion of certain risks that you
should consider before investing in the notes.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px"><B>Neither the
Securities and Exchange Commission nor any state securities commission has
approved or disapproved of the notes or passed upon the adequacy or accuracy of
this prospectus. Any representation to the contrary is a criminal
offense.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 3px; TEXT-INDENT: 48px">This
prospectus has been prepared for and may be used by Goldman,
Sachs&nbsp;&amp;&nbsp;Co. and other affiliates of Goldman,
Sachs&nbsp;&amp;&nbsp;Co. in connection with offers and sales of the notes
related to market-making transactions in the notes effected from time to time.
Such affiliates of Goldman, Sachs&nbsp;&amp;&nbsp;Co. may act as principal or
agent in such transactions, including as agent for the counterparty when acting
as principal or as agent for both counterparties, and may receive compensation
in the form of discounts and commissions, including from both counterparties,
when it acts as agents for both. Such sales will be made at prevailing market
prices at the time of sale, at prices related thereto or at negotiated prices.
We will not receive any proceeds from such sales.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center>The date of this
prospectus is
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2009.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P></DIV>
<DIV style="WIDTH: 624px">
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>Table of Contents</B></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=598></TD>
<TD width=35></TD></TR>
<TR>
<TD vAlign=bottom width=598>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=35>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Page</B></P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Summary</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>1</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Risk
Factors</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>10</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Statements
Regarding Forward-Looking Information</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>15</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">The
Transactions</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>16</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Ownership
and Corporate Structure</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>19</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Use of
Proceeds</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>20</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Capitalization</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>21</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Ratio of
Earnings to Fixed Charges</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>22</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Description
of Other Indebtedness</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>23</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Description
of Senior Notes</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>27</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Description
of Senior Subordinated Notes</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>84</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Book-Entry
Settlement and Clearance</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>146</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Certain
U.S. Federal Income and Estate Tax Consequences</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>149</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Certain
ERISA Considerations</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>156</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Plan of
Distribution</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>157</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Legal
Matters</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>158</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Experts</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>158</P></TD></TR>
<TR>
<TD vAlign=top width=598>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Available
Information</P></TD>
<TD vAlign=bottom width=35>
<P style="MARGIN: 0px" align=right>158</P></TD></TR></TABLE>
<P style="MARGIN: 13px" align=center>_________________</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px"><B>We have
not authorized any dealer, salesperson or other person to give any information
or represent anything to you other than the information contained in this
prospectus. You must not rely on unauthorized information or
representations.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px"><B>This
prospectus does not offer to sell nor ask for offers to buy any of the
securities in any jurisdiction where it is unlawful, where the person making the
offer is not qualified to do so, or to any person who cannot legally be offered
the securities. The information in this prospectus is current only as of the
date on its cover and may change after that date.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>i</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>MARKET AND INDUSTRY DATA</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We obtained
the industry, market and competitive position data used throughout this
prospectus or used in documents incorporated by reference into this prospectus
from our own internal estimates and research as well as from industry
publications and research, surveys and studies conducted by third parties.
Industry publications, studies and surveys generally state that they have been
obtained from sources believed to be reliable, although they do not guarantee
the accuracy or completeness of such information. While we believe that each of
these publications, studies and surveys is reliable, we have not independently
verified industry, market and competitive position data from third-party
sources. While we believe our internal business research is reliable and the
market definitions are appropriate, neither such research nor these definitions
have been verified by any independent source.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>ii</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SUMMARY</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px"><I>This
summary highlights information appearing elsewhere or incorporated by reference
in this prospectus. This summary is not complete and does not contain all of the
information that you should consider before making your investment decision. You
should carefully read this summary together with the entire prospectus,
including the information presented under the section entitled &#147;Risk Factors&#148;
and the information that is incorporated into this prospectus by reference to
our Annual Report on Form&nbsp;10-K for the fiscal year ended January 30, 2009
(including without limitation the additional Risk Factors disclosed in
Part&nbsp;I, Item&nbsp;1A of such Form&nbsp;10-K). See the &#147;Available
Information&#148; section of this prospectus for a further discussion of
incorporation by reference.</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px"><I>Unless the
context otherwise requires, references in this prospectus to &#147;Dollar General,&#148;
&#147;we,&#148; &#147;our,&#148; &#147;us&#148; and &#147;the Company&#148; refer to Dollar General Corporation and its
consolidated subsidiaries, both before and after the Transactions (as defined
below under the section entitled &#147;The Transactions&#148;), and references to the
&#147;Issuer&#148; refer to Dollar General Corporation. Financial information identified
in this prospectus as &#147;pro forma&#148; gives effect to the consummation of the
Transactions. This prospectus contains references to years 2009, 2008, 2007,
2006, 2005 and 2004, which represent fiscal years ending or ended January 29,
2010, January&nbsp;30, 2009, February&nbsp;1, 2008, February&nbsp;2, 2007,
February&nbsp;3, 2006 and January&nbsp;28, 2005, respectively, unless the
context otherwise requires. In this prospectus &#147;fiscal 2008 Form&nbsp;10-K&#148;
refers to our Annual Report on Form&nbsp;10-K for the fiscal year ended January
30, 2009 that we filed with the SEC on March&nbsp;24, 2009 and that is
incorporated herein by reference.</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><B>Our
Company</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We are the
largest discount retailer in the United States by number of stores, with 8,414
stores located in 35 states, primarily in the southern, southwestern, midwestern
and eastern United States, as of February&nbsp;27, 2009. We serve a broad
customer base and offer a focused assortment of everyday items, including basic
consumable merchandise and other home, apparel and seasonal products. A majority
of our products are priced at $10 or less and approximately 25% of our products
are priced at $1 or less.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We offer a
compelling value proposition for our customers based on convenient store
locations, easy in and out shopping and quality name brand and private brand
merchandise at highly competitive everyday low prices. We believe our
combination of value and convenience distinguishes us from other discount,
convenience and drugstore retailers, who typically focus on either value or
convenience. Our business model is focused on strong and sustainable sales
growth, attractive margins, and limited maintenance capital expenditure and
working capital needs, which, in combination, result in significant cash flow
from operations (before interest).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We were
founded in 1939 as J.L. Turner and Son, Wholesale. We opened our first dollar
store in 1955, when we were incorporated as a Kentucky corporation under the
name J.L. Turner&nbsp;&amp; Son,&nbsp;Inc. We changed our name to Dollar General
Corporation in 1968 and reincorporated as a Tennessee corporation in 1998. In
2007, we entered into a merger transaction with an entity controlled by
investment funds affiliated with Kohlberg Kravis Roberts &amp; Co., L.P. (&#147;KKR&#148;
or &#147;Sponsor&#148;), as discussed in more detail under &#147;The Transactions&#148; below.
&nbsp;Our principal executive offices are located at 100 Mission Ridge,
Goodlettsville, Tennessee 37072, and our telephone number is
(615)&nbsp;855-4000. Our website address is <I>www.dollargeneral.com</I>. The
information on our website is not part of this prospectus.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We have
increased our total number of stores from 6,700 on January 30, 2004 to 8,362 on
January 30, 2009, a 4.5% compounded annual growth rate (&#147;CAGR&#148;). Over the same
period, we grew our net sales from $6.9&nbsp;billion to $10.5&nbsp;billion (8.8%
CAGR), driven by growth in number of stores as well as same store sales growth.
We slowed new store growth in 2007 and 2008 and closed approximately 400 stores
in 2007 to improve our profitability and to enable us to focus on improving the
performance of existing stores. In 2008, we opened 207 new stores, closed 39
stores, and relocated or remodeled 404 existing stores. Net sales in 2008 were
driven primarily by a same-store sales increase of 9.0%. We intend to accelerate
our new store growth in 2009 with plans to open approximately 450 new stores and
to remodel or relocate approximately 400 stores.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>1</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>Summary of the Terms of the Notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px"><I>The
summary below, which is not intended to be complete, describes the principal
terms of the notes. Certain of the terms and conditions summarized below are
subject to important limitations and exceptions. The &#147;Description of Senior
Notes&#148; and &#147;Description of Senior Subordinated Notes&#148; sections of this
prospectus contain more detailed descriptions of the terms and conditions of the
notes.</I></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=196></TD>
<TD width=26></TD>
<TD width=410></TD></TR>
<TR>
<TD vAlign=top width=196>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Issuer</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">Dollar General.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Securities</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">$1,830,891,000 in aggregate principal amount of
notes, consisting of:</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">$1,175,000,000 in aggregate principal amount of
10.625% senior notes due 2015; and</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">$655,891,000 in aggregate principal amount of
11.875% /12.625% senior subordinated notes due 2017.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Maturity
Dates</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">The senior notes will mature on July&nbsp;15, 2015.
</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">The senior subordinated notes will mature on
July&nbsp;15, 2017.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Interest
Payment Dates</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">Interest on the notes will be payable on
January&nbsp;15 and July&nbsp;15 of each year, beginning on
January&nbsp;15, 2008.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Interest
Rates and Forms of Payment</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">The senior notes will bear interest at a rate of
10.625% per annum.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">Cash interest on the senior subordinated notes will
accrue at a rate of 11.875% per annum, and PIK Interest (defined below)
will accrue at a rate of 12.625% per annum. The initial interest payment
on the senior subordinated notes will be payable in cash. For any interest
period commencing on or after January&nbsp;15, 2008 through July&nbsp;15,
2011 we may elect to pay interest on the senior subordinated notes (i) in
cash; (ii) by increasing the principal amount of the senior subordinated
notes or by issuing new senior subordinated notes (&#147;PIK Notes&#148;) (such
increase or issuance, &#147;PIK Interest&#148;) or (iii) by paying interest on half
of the principal amount of the senior subordinated notes in cash and half
in PIK Interest. If we elect to pay PIK Interest, we will increase the
principal amount of the senior subordinated notes or issue PIK Notes, in
each case, in an amount equal to the amount of PIK Interest for the
applicable interest payment period (rounded up to the nearest $1,000 in
the case of global notes and to the nearest whole dollar in the case of
senior subordinated notes in certificated form) to holders of the senior
subordinated notes on the relevant record date. The senior subordinated
notes will bear interest on the increased principal amount thereof from
and after the applicable interest payment date on which a payment of PIK
Interest is made. We must elect the form of interest payment with respect
to each interest period no later than 30 days before the beginning of the
applicable interest period. In the absence of such an election or proper
notification of such election to the trustee, interest will be payable in
accordance with the last election made for the previous interest period.
</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>2</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=196></TD>
<TD width=26></TD>
<TD width=410></TD></TR>
<TR>
<TD vAlign=top width=196>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Original
Issue Discount</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">We will have the option to pay interest on the
senior subordinated notes in cash interest or PIK Interest for any
interest payment period after the initial interest payment through
July&nbsp;15, 2011. For U.S. federal income tax purposes, the existence of
this option means that none of the interest payments on the senior
subordinated notes will be qualified stated interest even if we never
exercise the option to pay PIK Interest. Consequently, the senior
subordinated notes will be treated as issued with original issue discount,
and U.S. holders (as defined in &#147;Certain U.S. Federal Income and Estate
Tax Consequences&#148;) will be required to include the original issue discount
in gross income on a constant yield to maturity basis, regardless of
whether interest is paid currently in cash. For more information, see
&#147;Certain U.S. Federal Income and Estate Tax Consequences.&#148;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Security</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">None. The notes will be unsecured obligations of
the Issuer and the subsidiary guarantors.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Guarantees</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">The senior notes will be unconditionally
guaranteed, jointly and severally, on an unsecured senior basis, and the
senior subordinated notes will be unconditionally guaranteed, jointly and
severally, on an unsecured senior subordinated basis, in each case, by
each of our wholly owned subsidiaries that has guaranteed our Credit
Facilities (as defined below under the section entitled &#147;Description of
Other Indebtedness&#148;).</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">Our non-guarantor subsidiaries accounted for
approximately $97.9&nbsp;million of net revenues and approximately
$26.2&nbsp;million of net income, in each case, for 2008 and approximately
$313.3&nbsp;million of total assets and approximately $250.5&nbsp;million
of total liabilities, in each case, as of January 30, 2009. Included in
these net revenues, net income, total assets and total liabilities
balances are certain intercompany balances that are eliminated in
consolidation.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Ranking</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">The senior notes are our senior unsecured
obligations and will:</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">rank senior in right of payment to our existing and
future debt and other obligations that are, by their terms, expressly
subordinated in right of payment to the senior notes, including the senior
subordinated notes;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">rank equal in right of payment to all of our
existing and future senior debt and other obligations that are not, by
their terms, expressly subordinated in right of payment to the senior
notes; and</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">be effectively subordinated to all of our existing
and future secured debt (including obligations under the Credit
Facilities), to the extent of the value of the assets securing such debt,
and be structurally subordinated to all obligations of each of our
subsidiaries that is not a guarantor of the senior notes.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">Similarly, the senior note guarantees will be
senior unsecured obligations of the guarantors and will:</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">rank senior in right of payment to all of the
applicable guarantor&#146;s existing and future debt and other obligations that
are, by their terms, expressly subordinated in right of payment to the
senior notes, including the applicable guarantor&#146;s guarantee under the
senior subordinated notes;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">rank equal in right of payment to all of the
applicable guarantor&#146;s existing and future senior debt and other
obligations that are not, by their terms, expressly subordinated in right
of payment to the senior notes; and</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>3</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=196></TD>
<TD width=26></TD>
<TD width=410></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">be effectively subordinated in right of payment to
all of the applicable guarantor&#146;s existing and future secured debt
(including the applicable guarantor&#146;s guarantee under the Credit
Facilities), to the extent of the value of the assets securing such debt,
and be structurally subordinated to all obligations of any subsidiary of a
guarantor if that subsidiary is not also a guarantor of the senior
notes.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">The senior subordinated notes are our unsecured
senior subordinated obligations and will:</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">be subordinated in right of payment to our existing
and future senior debt, including our Credit Facilities, the senior notes
and the 2010 Notes;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">rank equal in right of payment to all of our
existing and future senior subordinated debt and other obligations that
are not, by the terms of the senior subordinated notes, expressly made
senior;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">be effectively subordinated to all of our existing
and future secured debt (including obligations under our Credit
Facilities), to the extent of the value of the assets securing such debt,
and be structurally subordinated to all obligations of any subsidiaries
that do not guarantee the senior subordinated notes; and</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">rank senior in right of payment to all of our
future debt and other obligations that are, by their terms, expressly
subordinated in right of payment to the senior subordinated
notes.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">Similarly, the senior subordinated note guarantees
will be unsecured senior subordinated obligations of the guarantors and
will:</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">be subordinated in right of payment to all of the
applicable guarantor&#146;s existing and future senior debt, including such
guarantor&#146;s guarantee under our Credit Facilities, the senior notes and
the 2010 Notes;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">rank equal in right of payment to all of the
applicable guarantor&#146;s future senior subordinated debt and other
obligations that are not, by the terms of the senior subordinated notes,
expressly made senior;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">be effectively subordinated to all of the
applicable guarantor&#146;s existing and future secured debt (including such
guarantor&#146;s guarantee under our Credit Facilities), to the extent of the
value of the assets securing such debt, and be structurally subordinated
to all obligations of any subsidiary of a guarantor if that subsidiary is
not also a guarantor of the senior subordinated notes; and</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">rank senior in right of payment to all of the
applicable guarantor&#146;s future debt and other obligations that are, by
their terms, expressly subordinated in right of payment to the guarantees
of the senior subordinated notes.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>4</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=196></TD>
<TD width=26></TD>
<TD width=410></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">As of January 30, 2009, (1)&nbsp;the notes and
related guarantees rank effectively junior to approximately
$2,300.0&nbsp;million of senior secured indebtedness and
$24.4&nbsp;million of payment obligations relating to capital lease
obligations and other indebtedness, (2)&nbsp;the senior notes and related
guarantees rank senior to the $655.9&nbsp;million of senior subordinated
notes, (3)&nbsp;the senior subordinated notes and related guarantees rank
junior to the senior notes and our 2010 Notes, and (4)&nbsp;we had an
additional $932.8&nbsp;million of unutilized capacity under our senior
secured asset-based revolving credit facility.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Optional
Redemption</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">We may redeem some or all of the senior notes at
any time on or after July&nbsp;15, 2011 and we may redeem some or all of
the senior subordinated notes at any time on or after July&nbsp;15, 2012,
in each case at the redemption prices set forth in this
prospectus.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">We may redeem some or all of the senior notes prior
to July&nbsp;15, 2011 and some or all of the senior subordinated notes
prior to July&nbsp;15, 2012, in each case at a price equal to 100% of the
principal amount of the notes redeemed plus the applicable &#147;make-whole&#148;
premium as described in this prospectus.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">On or before July&nbsp;15, 2010, we may also redeem
up to 35% of the senior notes and 35% of the senior subordinated notes, in
each case, at the redemption prices set forth in this prospectus, using
the proceeds of certain equity offerings.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Mandatory
Principal Redemption</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">If the senior subordinated notes would otherwise
constitute &#147;applicable high yield discount obligations&#148; within the meaning
of Section 163(i)(1) of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;), at the end of each accrual period ending after the fifth
anniversary of the senior subordinated notes&#146; issuance (each, an &#147;AHYDO
redemption date&#148;), we will be required to redeem for cash a portion of
each senior subordinated note then outstanding equal to the &#147;Mandatory
Principal Redemption Amount&#148; (such redemption, a &#147;Mandatory Principal
Redemption&#148;). The redemption price for the portion of each senior
subordinated note redeemed pursuant to a Mandatory Principal Redemption
will be 100% of the principal amount of such portion plus any accrued
interest thereon on the date of redemption. The &#147;Mandatory Principal
Redemption Amount&#148; means, as of each AHYDO redemption date, the excess, if
any, of (a) the aggregate amount of accrued and unpaid interest and all
accrued and unpaid &#147;original issue discount&#148; (as defined in Section
1273(a)(1) of the Code) with respect to the senior subordinated notes,
over (b) an amount equal to the product of (i) the &#147;issue price&#148; (as
defined in Sections 1273(b) and 1274(a) of the Code) of the senior
subordinated notes multiplied by (ii) the &#147;yield to maturity&#148; (as defined
in the Treasury Regulation Section 1.1272-1(b)(1)(i)) of the senior
subordinated notes. No partial redemption or repurchase of the senior
subordinated notes prior to any AHYDO redemption date pursuant to any
other provision of the indenture governing the senior subordinated notes
will alter the Issuer&#146;s obligation to make the Mandatory Principal
Redemption with respect to any senior subordinated notes that remain
outstanding on any AHYDO redemption date.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>5</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=196></TD>
<TD width=26></TD>
<TD width=410></TD></TR>
<TR>
<TD vAlign=top width=196>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Change of
Control and Asset Sales</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">If we sell certain assets under certain
circumstances, or experience certain change of control events, each holder
of senior notes or senior subordinated notes, as applicable, may require
us to purchase all or a portion of its notes at the purchase prices set
forth in this prospectus, plus accrued and unpaid interest and special
interest, if any, to the purchase date. See &#147;Description of Senior
Notes&#151;Repurchase at the Option of Holders&#148; and &#147;Description of Senior
Subordinated Notes&#151;Repurchase at the Option of Holders.&#148; Our Credit
Facilities or other agreements may restrict us from repurchasing any of
the notes, including any purchase we may be required to make as a result
of a change of control or certain asset sales. See &#147;Risk Factors&#151;Risks
Related to the Notes&#151;We may not have the ability to raise the funds
necessary to finance the change of control offer required by the
indentures governing the notes.&#148;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Certain
Covenants</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">The indentures governing the notes restrict our
ability and the ability of our restricted subsidiaries to, among other
things:</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">incur additional indebtedness, issue disqualified
stock or issue certain preferred stock;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">pay dividends and make certain distributions,
investments and other restricted payments;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">create certain liens or encumbrances;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">sell assets;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">enter into transactions with affiliates;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">limit the ability of restricted subsidiaries to
make payments to us;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">merge, consolidate, sell or otherwise dispose of
all or substantially all of our assets; and</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P>&nbsp;</P></TD>
<TD vAlign=top width=410>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=top width=26>
<P style="MARGIN: 0px" align=right>&#149;</P></TD>
<TD vAlign=top width=410>
<P style="MARGIN: 0px">designate our subsidiaries as unrestricted
subsidiaries.</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">These covenants are subject to important exceptions
and qualifications described under the headings &#147;Description of Senior
Notes&#148; and &#147;Description of Senior Subordinated Notes.&#148;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=196>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Use of
Proceeds</P></TD>
<TD vAlign=bottom width=437 colSpan=2>
<P style="MARGIN: 0px">We will not receive any cash proceeds from the sale
of the notes in the offer. See &#147;Use of Proceeds.&#148;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>6</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>Summary Historical and Pro Forma Consolidated Financial and
Other Data</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Set forth
below is summary historical consolidated financial and other data and summary
unaudited pro forma consolidated financial and other data of Dollar General, at
the dates and for the periods indicated. The summary historical statement of
operations data and statement of cash flows data for the period from
February&nbsp;3, 2007 through July&nbsp;6, 2007 (Predecessor) and the period
from March 6, 2007 through February&nbsp;1, 2008 (Successor), the years ended
January 30, 2009 and February&nbsp;2, 2007 and balance sheet data as of January
30, 2009 and February&nbsp;1, 2008, have been derived from our historical
audited consolidated financial statements incorporated by reference herein from
our fiscal 2008 Form 10-K. The balance sheet data as of February 2, 2007 has
been derived from our historical audited consolidated financial statements not
included or incorporated by reference herein.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The summary
unaudited pro forma consolidated financial and other data for the fiscal year
ended February 1, 2008 has been prepared to give effect to the Transactions in
the manner described under &#147;Unaudited Pro Forma Condensed Consolidated Financial
Information&#148; and the notes thereto, incorporated by reference herein from our
fiscal 2008 Form 10-K, as if they had occurred on February&nbsp;3, 2007. The pro
forma adjustments are based upon available information and certain assumptions
that we believe are reasonable. The summary unaudited pro forma consolidated
financial and other data are for informational purposes only and do not purport
to represent what our results of operations, balance sheet data or other
financial information actually would have been if the Transactions had occurred
at any date, and such data do not purport to project the results of operations
for any future period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The summary
historical and pro forma consolidated financial and other data should be read in
conjunction with &#147;The Transactions&#148; appearing elsewhere in this prospectus as
well as the sections of our fiscal 2008 Form&nbsp;10-K captioned &#147;Selected
Financial Data,&#148; &#147;Management&#146;s Discussion and Analysis of Financial Condition
and Results of Operations,&#148; &#147;Unaudited Pro Forma Condensed Consolidated
Financial Information&#148; and our consolidated financial statements and related
notes that are included in our fiscal 2008 Form&nbsp;10-K and incorporated by
reference herein. </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>7</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=233></TD>
<TD width=15></TD>
<TD width=15></TD>
<TD width=72></TD>
<TD width=16></TD>
<TD width=71></TD>
<TD width=15></TD>
<TD width=72></TD>
<TD width=15></TD>
<TD width=72></TD>
<TD width=15></TD>
<TD width=72></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=264 colSpan=6>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Historical</B></P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Pro Forma</B></P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Historical</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=176 colSpan=4>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Predecessor</B></P></TD>
<TD vAlign=bottom width=264 colSpan=6>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Successor</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"><I>(amounts in
millions, excluding number of stores, selling square feet, and net sales
per square foot)</I></P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Fiscal Year<BR>Ended<BR>February 2,<BR>2007(1)</B></P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>February 3,<BR>2007<BR>through<BR>July
6,<BR>2007(1)</B></P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>March 6,<BR>2007 <BR>through<BR>February
1,<BR>2008(2)</B></P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Fiscal Year<BR>Ended<BR>February 1,<BR>2008</B></P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Fiscal Year<BR>Ended<BR>January 30, <BR>2009</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"><B>Statement of
Operations Data:</B></P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Net
sales</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>9,169.8&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>3,923.8&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>5,571.5&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>9,495.2&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>10,457.7&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Cost
of goods sold</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>6,801.6&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>2,852.2&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>3,999.6&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>6,852.5&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>7,396.6&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Gross
profit</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>2,368.2&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>1,071.6&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>1,571.9&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>2,642.8&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>3,061.1&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Selling,
general and administrative expense</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>2,119.9&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>960.9&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>1,324.5&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>2,310.9&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>2,448.6&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Litigation
settlement and related costs, net</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>-&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>-&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>-&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>-&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>32.0&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Transaction
and related costs</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>-&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>101.4&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>1.2&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>1.2&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>-&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Operating
profit</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>248.3&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>9.2&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>246.1&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>330.6&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>580.5&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Interest
income</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(7.0)</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(5.0)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(3.8)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(8.8)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(3.1)</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Interest
expense</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>34.9&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>10.3&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>252.9&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>436.7&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>391.9&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Other
(income) expense</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>-&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>-&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>3.6&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>3.6&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>(2.8)</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Income
(loss) before income taxes</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>220.4&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>4.0&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(6.6)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(100.9)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>194.4&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Income
tax expense (benefit)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>82.4&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>12.0&nbsp;</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>(1.8)</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>(42.9)</P></TD>
<TD vAlign=bottom width=88 colSpan=2>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=right>86.2&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Net
income (loss)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>137.9&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>$</P></TD>
<TD vAlign=bottom width=71>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>(8.0)</P></TD>
<TD vAlign=bottom width=15>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>(4.8)</P></TD>
<TD vAlign=bottom width=15>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>(57.9)</P></TD>
<TD vAlign=bottom width=15>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P
style="FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 3px double"
align=right>108.2&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"><B>Statement of
Cash Flows Data:</B></P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Net
cash provided by (used in):</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Operating
activities</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>405.4&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>201.9&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>239.6&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>575.2&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Investing
activities</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(282.0)</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(66.9)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(6,848.4)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(152.6)</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Financing
activities</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(134.7)</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>25.3&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>6,709.0&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(144.8)</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Total
capital expenditures</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(261.5)</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(56.2)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(83.6)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>(205.5)</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"><B>Other
Financial and Operating Data:</B></P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Same
store sales growth(3)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>3.3%</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>2.6%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>1.9%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>9.0%</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Same
store sales(3)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8,327.2&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>3,656.6&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>5,264.2&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>10,118.5&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Number
of stores included in <BR>same store sales calculation</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>7,627&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>7,655&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>7,735&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8,153&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Number
of stores (at period end)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8,229&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8,205&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8,194&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8,362&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Selling
square feet in thousands (at period end)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>57,299&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>57,379&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>57,376&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>58,803&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Net
sales per square foot(4)</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>162.6&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>163.9&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>165.4&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>179.7&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Highly
consumable sales</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>65.7%</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>66.7%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>66.4%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>69.3%</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Seasonal
sales</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>16.4%</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>15.4%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>16.3%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>14.6%</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Home
products sales</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>10.0%</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>9.2%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>9.1%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8.2%</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Basic
clothing sales</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>7.9%</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8.7%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8.2%</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>7.9%</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Rent
expense</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>343.9&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=71>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>150.2&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>214.5&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>389.6&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt"><B>Balance
Sheet Data (at period end):</B></P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Cash
and cash equivalents and<BR>short-term investments</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>219.2&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>119.8&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>$</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>378.0&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Total
assets</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>3,040.5&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8,656.4&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>8,889.2&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Total
debt</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>270.0&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>4,282.0&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>4,137.1&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=233>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 10pt">Total
shareholders&#146; equity</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>1,745.7&nbsp;</P></TD>
<TD vAlign=bottom width=16>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=71>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>2,703.9&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=15>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=right>2,831.7&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: -13px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt; FONT-FAMILY: Times">(1)
</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 5px; TEXT-INDENT: 0px; LINE-HEIGHT: 10pt; FONT-FAMILY: Times">Includes
the effects of certain strategic merchandising and real estate initiatives that
resulted in the closing of approximately 460 stores and changes in the Company&#146;s
inventory management model which resulted in greater inventory markdowns than in
previous years. </P><A name=page_ce75701_1_10></A>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: -13px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt; FONT-FAMILY: Times">(2)
</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 5px; TEXT-INDENT: 0px; LINE-HEIGHT: 10pt; FONT-FAMILY: Times">Includes
the results of Buck Acquisition Corp. for the period prior to the merger with
and into Dollar General Corporation from March&nbsp;6, 2007 (its formation)
through July&nbsp;6, 2007 and the post-merger results of Dollar General
Corporation for the period from July&nbsp;7, 2007 through February&nbsp;1, 2008.
</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: -13px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt; FONT-FAMILY: Times">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 5px; TEXT-INDENT: 0px; LINE-HEIGHT: 10pt; FONT-FAMILY: Times">Same-store
sales have been calculated based upon stores that were open at least 13 full
fiscal months and remained open at the end of the reporting period. If
applicable, the Company excludes the sales in the 53rd week of a 53-week year
from the same-store sales calculation.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: -13px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt; FONT-FAMILY: Times">(4)
</P>
<P
style="PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt">Net
sales per square foot was calculated based on total sales for the preceding 12
months as of the ending date of the reporting period divided by the average
selling square footage during the period, including the end of the fiscal year,
the beginning of the fiscal year, and the end of each of the Company&#146;s three
interim fiscal quarters. For the period from February 3, 2007 through July 6,
2007, average selling square footage was calculated using the average of square
footage as of July 6, 2007 and as of the end of each of the four preceding
quarters. &nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>8</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=129></TD>
<TD width=72></TD>
<TD width=72></TD>
<TD width=72></TD>
<TD width=72></TD>
<TD width=72></TD>
<TD width=76></TD>
<TD width=74></TD></TR>
<TR>
<TD vAlign=bottom width=129>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=360 colSpan=5>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Historical</B></P></TD>
<TD vAlign=bottom width=76>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Pro<BR>Forma</B></P></TD>
<TD vAlign=bottom width=74>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Historical</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=129>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=288 colSpan=4>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Predecessor</B></P></TD>
<TD vAlign=bottom width=223 colSpan=3>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Successor</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=129>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=216 colSpan=3>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Fiscal Year Ended</B></P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=150 colSpan=2>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Fiscal Year Ended</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=129>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 9px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; TEXT-INDENT: -9px; LINE-HEIGHT: 10pt"><B>Ratios
of earnings to fixed charges(1)</B></P></TD>
<TD vAlign=bottom width=72>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>January&nbsp;28, 2005</B></P></TD>
<TD vAlign=bottom width=72>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>February&nbsp;3, 2006(2)</B></P></TD>
<TD vAlign=bottom width=72>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>February&nbsp;2, 2007</B></P></TD>
<TD vAlign=bottom width=72>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>February&nbsp;3,<BR>2007<BR>through<BR>July&nbsp;6,<BR>2007</B></P></TD>
<TD vAlign=bottom width=72>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>March 6,<BR>2007<BR>through<BR>February&nbsp;1,
2008</B></P></TD>
<TD vAlign=bottom width=76>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>February&nbsp;1,<BR>2008</B></P></TD>
<TD vAlign=bottom width=74>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>January&nbsp;30,<BR>2009</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=129>
<P
style="PADDING-LEFT: 13px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: -13px; LINE-HEIGHT: 10pt">Actual</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=center>5.6x</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=center>5.3x</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=center>2.5x</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=center>1.1x</P></TD>
<TD vAlign=bottom width=72>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=center>(3)</P></TD>
<TD vAlign=bottom width=76>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=74>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=center>1.4x</P></TD></TR>
<TR>
<TD vAlign=bottom width=129>
<P
style="PADDING-LEFT: 13px; FONT-SIZE: 8pt; PADDING-BOTTOM: 4px; MARGIN: 0px; TEXT-INDENT: -13px; LINE-HEIGHT: 10pt; BORDER-BOTTOM: #000000 1px solid">Pro
forma (4)</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=72>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=76>
<P style="FONT-SIZE: 8pt; MARGIN: 0px; LINE-HEIGHT: 10pt"
align=center>(5)</P></TD>
<TD vAlign=bottom width=74>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: -13px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 5px; TEXT-INDENT: 0px; LINE-HEIGHT: 10pt">For
purposes of computing the ratio of earnings to fixed charges, (a)&nbsp;earnings
consist of income (loss) before income taxes, plus fixed charges less
capitalized expenses related to indebtedness (amortization expense for
capitalized interest is not significant) and (b)&nbsp;fixed charges consist of
interest expense (whether expensed or capitalized), the amortization of debt
issuance costs and discounts related to indebtedness, and the interest portion
of rent expense.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: -13px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 5px; TEXT-INDENT: 0px; LINE-HEIGHT: 10pt">The
fiscal year ended February 3, 2006 was comprised of 53 weeks.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: -13px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 5px; TEXT-INDENT: 0px; LINE-HEIGHT: 10pt">For
the period from March 6, 2007 through February&nbsp;1, 2008, fixed charges
exceeded earnings by $6.6&nbsp;million. </P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: -13px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt">(4)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: 5px; TEXT-INDENT: 0px; LINE-HEIGHT: 10pt">To
give effect to the increase in interest expense resulting from the portion of
the notes proceeds used to retire the $198.3&nbsp;million of our
8<SUP>5</SUP>/<SUB>8</SUB>% unsecured notes due June&nbsp;10, 2010 as if such
transactions had occurred at the beginning of the period presented.<A
name=d.inst.1.B></A><A name=d.inst.1.C></A></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN-BOTTOM: -13px; TEXT-INDENT: -22px; LINE-HEIGHT: 10pt">(5)</P>
<P
style="PADDING-LEFT: 22px; FONT-SIZE: 8pt; MARGIN: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 10pt">For
the fiscal year ended February&nbsp;1, 2008, pro forma fixed charges exceeded
earnings by $3.4&nbsp;million.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>9</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>RISK FACTORS</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px"><I>You should
carefully consider the risk factors set forth below and the risk factors
incorporated herein by reference to our fiscal 2008 Form&nbsp;10-K as well as
the other information contained in this prospectus before deciding whether to
invest in the notes. Any of the following risks could materially and adversely
affect our business, financial condition or results of operations. However, the
selected risks described below and the risks that are incorporated herein by
reference to our fiscal 2008 Form&nbsp;10-K are not the only risks facing us.
Additional risks and uncertainties not currently known to us or those we
currently view to be immaterial may also materially and adversely affect our
business, financial condition or results of operations. In such a case, the
trading price of the notes could decline or we may not be able to make payments
of principal and interest on the notes, and you may lose all or part of your
original investment.</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><B>Risks Related to
the Notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Your ability to transfer the
notes may be limited by the absence of an active trading market, and there is no
assurance that any active trading market for the notes exists or will
continue.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We do not
intend to apply for a listing of the notes on a securities exchange or any
automated dealer quotation system. We cannot assure you as to the liquidity of
markets that may develop for the notes, your ability to sell the notes or the
price at which you would be able to sell the notes. Certain financial
institutions have advised us that they intend to make a market in the notes as
permitted by applicable laws and regulations; however, those entities are not
obligated to make a market in any of the notes, and they may discontinue their
market-making activities at any time without notice. Therefore, an active market
for any of the notes, if developed, may not continue. Because Goldman,
Sachs&nbsp;&amp;&nbsp;Co. and its respective affiliates may be considered
affiliates of ours, they are required to deliver a current &#147;market-maker&#148;
prospectus in connection with any secondary market sale of the notes, which may
affect their ability to continue market-making activities. Historically, the
market for non investment-grade debt has been subject to disruptions that have
caused substantial volatility in the prices of securities similar to the notes.
The market, if any, for any of the notes may not be free from similar
disruptions and any such disruptions may adversely affect the prices at which
you may sell your notes. In addition, the notes may trade at a discount from
your purchase price, depending upon prevailing interest rates, the market for
similar notes, our performance and other factors.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>We may not be able to
generate sufficient cash to service all of our indebtedness, including the
notes, and may be forced to take other actions to satisfy our obligations under
our indebtedness, which may not be successful.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Our ability
to make scheduled payments on or to refinance our debt obligations depends on
our financial condition and operating performance, which is subject to
prevailing economic and competitive conditions and to certain financial,
business and other factors beyond our control. We may be unable to maintain a
level of cash flow from operating activities sufficient to permit us to pay the
principal, premium, if any, and interest on our indebtedness, including the
notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If our cash
flow and capital resources are insufficient to fund our debt service
obligations, we may be forced to reduce or delay investments and capital
expenditures, or to sell assets, seek additional capital or restructure or
refinance our indebtedness, including the notes. These alternative measures may
not be successful and may not permit us to meet our scheduled debt service
obligations. In the absence of such operating results and resources, we could
face substantial liquidity problems and might be required to dispose of material
assets or operations to meet our debt service and other obligations. Our senior
secured credit agreement and the indentures governing the notes will restrict
our ability to dispose of assets and use the proceeds from such disposition. We
may not be able to consummate those dispositions or to obtain the proceeds that
we could realize from them, and these proceeds may not be adequate to meet any
debt service obligations then due.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>10</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><B>Repayment
of our debt, including each series of notes, is dependent on cash flow generated
by our subsidiaries and their ability to make distributions to us.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Our
subsidiaries own a significant portion of our assets and conduct a significant
portion of our operations. Accordingly, repayment of our indebtedness, including
each series of notes, is dependent, to a significant extent, on the generation
of cash flow by our subsidiaries and their ability to make such cash available
to us, by dividend, debt repayment or otherwise. Unless they are guarantors of
the notes, our subsidiaries do not have any obligation to pay amounts due on the
notes or to make funds available for that purpose. Our subsidiaries may not be
able to, or may not be permitted to, make distributions to enable us to make
payments in respect of our indebtedness, including the notes. Each subsidiary is
a distinct legal entity and, under certain circumstances, legal and contractual
restrictions may limit our ability to obtain cash from our subsidiaries. While
the indentures governing the notes will limit the ability of our subsidiaries to
incur consensual restrictions on their ability to pay dividends or make other
intercompany payments to us, these limitations are subject to certain
qualifications and exceptions. In the event that we do not receive distributions
from our subsidiaries, we may be unable to make required principal and interest
payments on our indebtedness, including the notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>U.S. Holders will be required
to pay U.S. federal income tax on the senior subordinated notes whether we pay
interest on the senior subordinated notes in cash or PIK Interest. </B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We have the
option to pay interest on the senior subordinated notes in cash interest or PIK
Interest for any interest payment period after the initial interest payment
through July 15, 2011. For U.S. federal income tax purposes, the existence of
this option means that none of the interest payments on the senior subordinated
notes will be qualified stated interest even if we never exercise the option to
pay PIK Interest. Consequently, the senior subordinated notes will be treated as
issued with original issue discount, and U.S. holders (as defined in &#147;Certain
U.S. Federal Income and Estate Tax Consequences&#148;) will be required to include
the original issue discount in gross income on a constant yield to maturity
basis, regardless of whether interest is paid currently in cash. See
&#147;Description of Senior Subordinated Notes&#151;Principal, Maturity and Interest&#148; and
&#147;Certain U.S. Federal Income and Estate Tax Consequences.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Claims of noteholders will be
structurally subordinated to the claims of creditors of our non-guarantor
subsidiaries.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The notes
will not be guaranteed by all of our subsidiaries. For example, our subsidiaries
that do not guarantee the Credit Facilities will not guarantee the notes.
Accordingly, claims of holders of the notes will be structurally subordinate to
the claims of creditors of these non-guarantor subsidiaries, including trade
creditors. All obligations of our non-guarantor subsidiaries will have to be
satisfied before any of the assets of such subsidiaries would be available for
distribution, upon a liquidation or otherwise, to us or a guarantor of the
notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Our
non-guarantor subsidiaries accounted for approximately $97.9&nbsp;million of net
revenues and approximately $26.2&nbsp;million of net income, in each case, for
2008 and approximately $313.3&nbsp;million of total assets, and approximately
$250.5&nbsp;million, of total liabilities, in each case as of January 30, 2009.
Included in these net revenues, net income, total assets and total liabilities
balances are certain intercompany balances that are eliminated in consolidation.
</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Your right to receive
payments on each series of notes is effectively junior to those lenders who have
a security interest in our assets.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Our
obligations under the notes and our guarantors&#146; obligations under their
guarantees of the notes are unsecured, but our obligations under our Credit
Facilities and each guarantor&#146;s obligations under its respective guarantee of
the Credit Facilities are secured by a security interest in substantially all of
our domestic tangible and intangible assets, including the stock of most of our
wholly owned U.S. subsidiaries, and a portion of the assets and a portion of the
stock of certain of our non-U.S. subsidiaries. If we are declared bankrupt or
insolvent, or if we default under our Credit Facilities, the lenders could
declare all of the funds borrowed thereunder, together with accrued interest,
immediately due and payable. If we were unable to repay such indebtedness, the
lenders could foreclose on the pledged assets to the exclusion of holders of the
notes, even if an event of default exists under the indentures governing the
notes at such time. Furthermore, if the lenders foreclose and sell the pledged
equity </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>11</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">interests
in any subsidiary guarantor under the notes, then that guarantor will be
released from its guarantee of the notes automatically and immediately upon such
sale. In any such event, because the notes will not be secured by any of our
assets or the equity interests in subsidiary guarantors, it is possible that
there would be no assets remaining from which your claims could be satisfied or,
if any assets remained, they might be insufficient to satisfy your claims fully.
See &#147;Description of Other Indebtedness.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">As of January
30, 2009, we had $2.324 billion of senior secured indebtedness, comprised of
financing and capital lease obligations, other debt instruments and indebtedness
under our Credit Facilities, not including unused capacity of
$932.8&nbsp;million under our revolving asset-based credit facility, subject to
borrowing base availability. The indentures governing the notes will permit us
and our restricted subsidiaries to incur substantial additional indebtedness in
the future, including senior secured indebtedness.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Your right to receive
payments on the senior subordinated notes will be junior to our existing and
future senior indebtedness, including borrowings under our Credit Facilities and
the senior notes.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The senior
subordinated notes and the related guarantees will be contractually subordinated
to all of our current and future senior indebtedness (other than trade
payables), including our borrowings under our Credit Facilities and the senior
notes, and all of our and the guarantors&#146; future borrowings (other than trade
payables), except any future indebtedness that expressly provides that it ranks
equal with, or subordinated in right of payment to, the senior subordinated
notes and the related guarantees. As a result of such subordination, in the
event of the bankruptcy, liquidation or dissolution of us or any subsidiary
guarantor, our assets or the assets of the applicable subsidiary guarantor would
be available to pay obligations under the senior subordinated notes and our
other senior subordinated obligations only after all payments had been made on
our senior indebtedness or the senior indebtedness of the applicable subsidiary
guarantor. Sufficient assets may not remain after all of these payments have
been made to make any payments on the senior subordinated notes and our other
senior subordinated obligations, including payments of interest when due. In
addition, all payments on the senior subordinated notes and the related
guarantees will be blocked in the event of a payment default on senior debt and
may be blocked for up to 179 of 360 consecutive days in the event of certain
non-payment defaults on senior debt.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In the event
of a bankruptcy, liquidation or reorganization or similar proceeding relating to
us or the guarantors, holders of the senior subordinated notes will participate
with trade creditors and all other holders of our and the guarantors&#146;
subordinated indebtedness in the assets remaining after we and the guarantors
have repaid all of our senior debt. However, because the indenture governing the
senior subordinated notes requires that amounts otherwise payable to holders of
the senior subordinated notes in a bankruptcy or similar proceeding be paid to
holders of senior debt instead, holders of the senior subordinated notes may
receive less, ratably, than holders of trade payables in any such proceeding. In
any of these cases, we and the guarantors may not have sufficient funds to pay
all of our creditors and holders of senior subordinated notes may receive less,
ratably, than the holders of our senior debt.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">As of January
30, 2009, the senior subordinated notes and the related guarantees are
subordinated to $3.481&nbsp;billion of senior debt, $2.324&nbsp;billion of which
is secured debt, and up to $932.8&nbsp;million is available for borrowing as
additional senior secured debt under our Credit Facilities, subject to borrowing
base availability. </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>If we default on our
obligations to pay our indebtedness, we may not be able to make payments on the
notes.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Any default
under the agreements governing our indebtedness, including a default under the
senior secured credit agreements, that is not waived by the required lenders,
and the remedies sought by the holders of such indebtedness, could prevent us
from paying principal, premium, if any, and interest on the notes and
substantially decrease the market value of the notes. If we are unable to
generate sufficient cash flow and are otherwise unable to obtain funds necessary
to meet required payments of principal, premium, if any, and interest on our
indebtedness, or if we otherwise fail to comply with the various covenants in
the instruments governing our indebtedness (including covenants in our Credit
Facilities and the indentures under which the notes were issued), we could be in
default under the terms of the agreements governing such indebtedness, including
our senior secured credit agreements and the indentures under which the notes
were issued. In the event of such default, the holders of such indebtedness
could elect to declare all the funds borrowed thereunder to be due and payable,
together with accrued and unpaid interest, the lenders under our Credit
Facilities could elect to terminate their commitments thereunder, cease making
</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>12</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">further
loans and institute foreclosure proceedings against our assets, and we could be
forced into bankruptcy or liquidation. If our operating performance declines, we
may in the future need to obtain waivers from the required lenders under our
Credit Facilities to avoid being in default. If we breach our covenants under
our Credit Facilities and seek a waiver, we may not be able to obtain a waiver
from the required lenders. If this occurs, we would be in default under our
senior secured credit agreements, the lenders could exercise their rights, as
described above, and we could be forced into bankruptcy or liquidation.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>We may not have the ability
to raise the funds necessary to finance the change of control offer required by
the indentures governing the notes.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Upon the
occurrence of a &#147;change of control,&#148; as defined in the indentures governing the
notes, we must offer to buy back the notes at a price equal to 101% of the
principal amount, together with any accrued and unpaid interest, if any, to the
date of the repurchase. Our failure to purchase, or give notice of purchase of,
the senior notes or the senior subordinated notes, as applicable, would be a
default under each of the indentures governing the notes, which would also be a
default under our Credit Facilities.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If a change
of control occurs, it is possible that we may not have sufficient assets at the
time of the change of control to make the required repurchase of notes or to
satisfy all obligations under our Credit Facilities and the indentures under
which the notes were issued. In order to satisfy our obligations, we could seek
to refinance the indebtedness under our Credit Facilities and the indentures or
obtain a waiver from the lenders or you as a holder of notes. We cannot assure
you that we would be able to obtain a waiver or refinance our indebtedness on
terms acceptable to us, if at all.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>The lenders under our Credit
Facilities have the discretion to release the guarantors under the senior
secured credit agreements in a variety of circumstances, which will cause those
guarantors to be released from their guarantees of the notes.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">While any
obligations under our Credit Facilities remain outstanding, any guarantee of the
notes may be released without action by, or consent of, any holder of the notes
or the trustee under the indentures governing the notes, at the discretion of
lenders under our Credit Facilities, if such guarantor is no longer a guarantor
of obligations under our Credit Facilities or any other indebtedness. See
&#147;Description of Senior Notes&#151;Guarantees&#148; and &#147;Description of Senior Subordinated
Notes&#151;Guarantees.&#148; The lenders under our Credit Facilities have the discretion
to release the guarantees under our Credit Facilities in a variety of
circumstances. You will not have a claim as a creditor against any subsidiary
that is no longer a guarantor of the notes, and the indebtedness and other
liabilities, including trade payables, whether secured or unsecured, of those
subsidiaries will effectively be senior to claims of noteholders.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Federal and state fraudulent
transfer laws may permit a court to void the guarantees, and, if that occurs,
you may not receive any payments on the notes.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Federal and
state fraudulent transfer and conveyance statutes may apply to the issuance of
the notes and the incurrence of the guarantees. Under federal bankruptcy law and
comparable provisions of state fraudulent transfer or conveyance laws, which may
vary from state to state, the notes or guarantees could be voided as a
fraudulent transfer or conveyance if (1)&nbsp;we or any of the guarantors, as
applicable, issued the notes or incurred the guarantees with the intent of
hindering, delaying or defrauding creditors or (2)&nbsp;we or any of the
guarantors, as applicable, received less than reasonably equivalent value or
fair consideration in return for either issuing the notes or incurring the
guarantees and, in the case of (2)&nbsp;only, one of the following is also true
at the time thereof:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">we or any of
the guarantors, as applicable, were insolvent or rendered insolvent by reason of
the issuance of the notes or the incurrence of the guarantees;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">the issuance
of the notes or the incurrence of the guarantees left us or any of the
guarantors, as applicable, with an unreasonably small amount of capital to carry
on the business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>13</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">we or any of
the guarantors intended to, or believed that we or such guarantor would, incur
debts beyond our or such guarantor&#146;s ability to pay as they mature; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">we or any of
the guarantors was a defendant in an action for money damages, or had a judgment
for money damages docketed against us or such guarantor if, in either case,
after final judgment, the judgment is unsatisfied.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If a court
were to find that the issuance of the notes or the incurrence of the guarantee
was a fraudulent transfer or conveyance, the court could void the payment
obligations under the notes or such guarantee or further subordinate the notes
or such guarantee to presently existing and future indebtedness of ours or of
the related guarantor, or require the holders of the notes to repay any amounts
received with respect to such guarantee. In the event of a finding that a
fraudulent transfer or conveyance occurred, you may not receive any repayment on
the notes. Further, the voidance of the notes could result in an event of
default with respect to our and our subsidiaries&#146; other debt that could result
in acceleration of such debt.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">As a general
matter, value is given for a transfer or an obligation if, in exchange for the
transfer or obligation, property is transferred or an antecedent debt is secured
or satisfied. A debtor will generally not be considered to have received value
in connection with a debt offering if the debtor uses the proceeds of that
offering to make a dividend payment or otherwise retire or redeem equity
securities issued by the debtor.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We cannot be
certain as to the standards a court would use to determine whether or not we or
the guarantors were solvent at the relevant time or, regardless of the standard
that a court uses, that the issuance of the guarantees would not be further
subordinated to our or any of our guarantors&#146; other debt.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>The Investors control us and
may have conflicts of interest with us or you now or in the future.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Kohlberg
Kravis Roberts &amp; Co. L.P. (&#147;KKR&#148; or the &#147;Sponsor&#148;), GS Capital Partners VI
Fund, L.P. and affiliated funds (affiliates of Goldman, Sachs&nbsp;&amp; Co.),
Citi Private Equity, Wellington Management Company, LLP, CPP Investment Board
(USRE II) Inc., and other equity co-investors (collectively, the &#147;Investors&#148;)
indirectly own, through their investment in Buck Holdings, L.P. (&#147;Parent&#148;), a
substantial portion of our common stock. As a result, the Investors have control
over our decisions to enter into any corporate transaction and have the ability
to prevent any transaction that requires shareholder approval regardless of
whether noteholders believe that any such transactions are in their own best
interests. For example, the Investors could cause us to make acquisitions that
increase the amount of indebtedness that is secured or that is senior to the
notes or to sell assets, which may impair our ability to make payments under the
notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Investors
are also in the business of making investments in companies and may from time to
time acquire and hold interests in businesses that compete directly or
indirectly with us. The Investors may also pursue acquisition opportunities that
may be complementary to our business and, as a result, those acquisition
opportunities may not be available to us. So long as the Investors, or other
funds controlled by or associated with the Investors, continue to indirectly own
a significant amount of our outstanding common stock, even if such amount is
less than 50%, the Investors will continue to be able to strongly influence or
effectively control our decisions.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>14</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>STATEMENTS REGARDING FORWARD-LOOKING INFORMATION</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">This
prospectus, including the information incorporated into this prospectus by
reference to our fiscal 2008 Form&nbsp;10-K, contains &#147;forward-looking
statements&#148; within the meaning of the federal securities laws, which involve
risks and uncertainties. You can identify forward-looking statements because
they are not solely statements of historical fact or they contain words such as
&#147;believes,&#148; &#147;expects,&#148; &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;seeks,&#148; &#147;approximately,&#148;
&#147;intends,&#148; &#147;plans,&#148; &#147;estimates,&#148; &#147;anticipates&#148; or similar expressions that
concern our strategy, plans or intentions. For example, all statements we make
relating to our estimated and projected earnings, costs, expenditures, cash
flows, growth rates and financial results, our plans and objectives for future
operations, growth or initiatives, or the expected outcome or impact of pending
or threatened litigation are forward-looking statements. In addition, we,
through our senior management, from time to time make forward-looking public
statements concerning our expected future operations and performance and other
developments. All forward-looking statements are subject to risks and
uncertainties that may change at any time, and, therefore, our actual results
may differ materially from those that we expected. We derive many of our
forward-looking statements from our operating budgets and forecasts, which are
based upon many detailed assumptions. While we believe that our assumptions are
reasonable, we caution that it is very difficult to predict the impact of known
factors, and, of course, it is impossible for us to anticipate all factors that
could affect our actual results. Important factors that could cause actual
results to differ materially from our expectations (&#147;cautionary statements&#148;) are
disclosed under &#147;Risk Factors&#148; in this prospectus, as well as throughout our
fiscal 2008 Form&nbsp;10-K including, without limitation, cautionary statements
under the heading &#147;Critical Accounting Policies and Estimates&#148; contained in
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations&#148; and &#147;Risk Factors.&#148; All written and oral forward-looking statements
attributable to us, or persons acting on our behalf, are expressly qualified in
their entirety by the cautionary statements as well as other cautionary
statements that are made from time to time in our other SEC filings and public
communications. You should evaluate all forward-looking statements made in this
prospectus in the context of these risks and uncertainties.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We caution
you that the important factors referenced above may not contain all of the
material factors that are important to you. In addition, we cannot assure you
that we will realize the results or developments we expect or anticipate or,
even if substantially realized, that they will result in the consequences or
affect us or our operations in the way we expect. The forward-looking statements
included in this prospectus are made only as of the date hereof. We undertake no
obligation to publicly update or revise any forward-looking statement as a
result of new information, future events or otherwise, except as otherwise
required by law.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>15</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>THE TRANSACTIONS</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">On
March&nbsp;11, 2007, we entered into an Agreement and Plan of Merger (the
&#147;Merger Agreement&#148;) with Parent and Buck Acquisition Corp. (&#147;Buck&#148;). Parent is
and Buck was (prior to the Merger) controlled by investment funds affiliated
with KKR. On July&nbsp;6, 2007, we consummated a merger of Buck with and into
Dollar General, with Dollar General surviving the Merger as a subsidiary of
Parent. Pursuant to the Merger Agreement, the former holders of our common stock
received $22.00 per share, or approximately $6.9&nbsp;billion. The Merger
consideration was funded through the use of our available cash, cash equity
contributions from the Investors, equity contributions of certain members of our
management and the debt financings discussed below. Our outstanding common stock
is now owned by Parent and certain members of management. Our common stock is no
longer registered with the Securities and Exchange Commission (&#147;SEC&#148;) and is no
longer traded on a national securities exchange.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The following
transactions occurred in conjunction with the Merger:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">We entered
into a credit agreement and related security and other agreements consisting of
a $2.3&nbsp;billion senior secured term loan facility, which matures on
July&nbsp;6, 2014.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">We entered
into a credit agreement and related security and other agreements consisting of
a senior secured asset-based revolving credit facility of up to
$1.125&nbsp;billion (of which $432.3&nbsp;million was drawn at closing and
$132.3&nbsp;million was paid down on the same day), subject to borrowing base
availability, which matures July&nbsp;6, 2013. As of January 30, 2009, we had no
borrowings, $51.0&nbsp;million of commercial letters of credit, and
$83.7&nbsp;million of standby letters of credit outstanding under the
asset-based revolving credit facility.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">We
terminated the revolving loans and paid in full all interest and all other
amounts due in connection with such termination under the pre-Merger senior
credit facility. We also terminated commercial letters of credit totaling
approximately $141.2&nbsp;million and standby letters of credit totaling
approximately $40.7&nbsp;million and replaced those letters of credit with new
letters of credit under the asset-based revolving credit facility.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">We issued
$1.175&nbsp;billion aggregate principal amount of 10.625% senior notes due 2015,
which mature on July&nbsp;15, 2015, and $725&nbsp;million aggregate principal
amount of 11.875%/12.625% senior subordinated toggle notes due 2017, which
mature on July&nbsp;15, 2017 (of which $69.1&nbsp;million has been repurchased
by the Issuer and cancelled subsequent to the Merger).</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">We completed
a cash tender offer (the &#147;Tender Offer&#148;) for our outstanding 8&nbsp;5/8% Notes
due June 2010 (the &#147;2010 Notes&#148;). Approximately 99% of the 2010 Notes were
validly tendered and accepted for payment in that tender offer. We also executed
a supplemental indenture governing the 2010 Notes that were not tendered in the
Tender Offer which eliminated substantially all of the restrictive covenants
contained in the indenture pursuant to which the 2010 Notes were issued.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">We entered
into a monitoring agreement and an indemnity agreement with certain of the
Investors pursuant to which we paid to those entities an aggregate initial
annual management fee of $5&nbsp;million, which amount will increase by 5%
annually, along with reimbursement of out-of-pocket expenses incurred in
connection with the provision of services under the agreement. We also paid
those entities other fees in connection with certain services provided in
connection with the Merger and related transactions. Those entities are also
entitled to receive a fee equal to 1% of the gross transaction value in
connection with certain subsequent financing, acquisition, disposition, and
change in control transactions, as well as a termination fee in the event of an
initial public offering or under certain other circumstances. Pursuant to the
terms of the indemnity agreement, we have agreed to customary exculpation and
indemnification provisions in favor of these entities and their affiliates.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">We entered
into agreements with certain members of management (the &#147;Senior Management
Participants&#148;) pursuant to which they invested in Dollar General, as the
surviving corporation in the Merger, through a cash investment, a rollover of
employee stock options or a combination thereof. In </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>16</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">addition,
we offered other employees (the &#147;Other Management Participants,&#148; together with
the Senior Management Participants, the &#147;Management Participants&#148;), a similar
investment opportunity to participate in our common equity.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">We entered
into stockholder agreements with certain members of management that, among other
things, contain agreements among the parties with respect to restrictions on the
transfer of the shares, including tag-along rights, drag-along rights,
registration rights (including customary indemnification provisions) and call
options and put options.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The offering
of the notes, the initial borrowings under our Credit Facilities, the equity
investment by the Investors in Parent, the equity investment in Dollar General
by the Management Participants, the Merger, the Tender Offer, the replacement of
certain credit facilities and of certain letters of credit, the payment of
related fees and expenses and other related transactions are collectively
referred to in this prospectus as the &#147;Transactions.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The sources
and uses of the funds for the Transactions are shown in the table below. </P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=198></TD>
<TD width=18></TD>
<TD width=81></TD>
<TD width=252></TD>
<TD width=18></TD>
<TD width=64></TD></TR>
<TR>
<TD vAlign=bottom width=198>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Amount</B></P></TD>
<TD vAlign=bottom width=252>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Amount</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=198>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P style="MARGIN: 0px" align=center><B>(Dollars in<BR>millions)</B></P></TD>
<TD vAlign=bottom width=252>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P style="MARGIN: 0px" align=center><B>(Dollars
in<BR>millions)</B></P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px"><B>Sources
of Funds:</B></P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=252>
<P style="PADDING-LEFT: 39px; MARGIN: 0px"><B>Uses of Funds:</B></P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Credit
Facilities:</P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=252>
<P style="PADDING-LEFT: 39px; MARGIN: 0px">Purchase price</P></TD>
<TD vAlign=bottom width=18>
<P style="MARGIN: 0px" align=right>$</P></TD>
<TD vAlign=bottom width=64>
<P style="MARGIN: 0px" align=right>7,024.9</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P style="PADDING-LEFT: 26px; MARGIN: 0px; TEXT-INDENT: -13px">Revolving
asset-based credit<BR>facility(1)</P></TD>
<TD vAlign=bottom width=18>
<P style="MARGIN: 0px" align=right>$</P></TD>
<TD vAlign=bottom width=81>
<P style="MARGIN: 0px" align=right>432.3</P></TD>
<TD vAlign=bottom width=252>
<P style="PADDING-LEFT: 39px; MARGIN: 0px">Rollover equity(5)</P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P style="MARGIN: 0px" align=right>3.2</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P style="PADDING-LEFT: 26px; MARGIN: 0px; TEXT-INDENT: -13px">Term loan
facility(2)</P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P style="MARGIN: 0px" align=right>2,300.0</P></TD>
<TD vAlign=top width=252>
<P style="PADDING-LEFT: 39px; MARGIN: 0px">Refinance existing
indebtedness(6)</P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P style="MARGIN: 0px" align=right>215.6</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Senior
notes, net of discount</P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P style="MARGIN: 0px" align=right>1,151.8</P></TD>
<TD vAlign=top width=252>
<P style="PADDING-LEFT: 39px; MARGIN: 0px">Other retained
indebtedness(3)</P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P style="MARGIN: 0px" align=right>66.7</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Senior
subordinated notes</P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P style="MARGIN: 0px" align=right>725.0</P></TD>
<TD vAlign=bottom width=252>
<P style="PADDING-LEFT: 39px; MARGIN: 0px">Fees and expenses(7)</P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P style="MARGIN: 0px" align=right>287.0</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Other
retained indebtedness(3)</P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P style="MARGIN: 0px" align=right>66.7</P></TD>
<TD vAlign=bottom width=252>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Equity
contribution(4)</P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P style="MARGIN: 0px" align=right>2,767.0</P></TD>
<TD vAlign=bottom width=252>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Rollover
equity(5)</P></TD>
<TD vAlign=bottom width=100 colSpan=2>
<P style="MARGIN: 0px" align=right>3.2</P></TD>
<TD vAlign=bottom width=252>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=82 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 13px; MARGIN-BOTTOM: 1px; TEXT-INDENT: -13px">Excess
cash on hand</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=100
colSpan=2>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align=right>151.4</P></TD>
<TD vAlign=top width=252>
<P>&nbsp;</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=82
colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=198>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 26px; MARGIN-BOTTOM: 2px; TEXT-INDENT: -13px">Total
Sources</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=18>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px" align=right>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=81>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px" align=right>7,597.4</P></TD>
<TD vAlign=top width=252>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 39px; MARGIN-BOTTOM: 2px">&nbsp;&nbsp;Total
Uses</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=18>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px" align=right>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=64>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px"
align=right>7,597.4</P></TD></TR></TABLE>
<P style="MARGIN: 0px">_______________________</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px; TEXT-INDENT: 0px">Upon
the closing of the Merger, we entered into a $1.125&nbsp;billion senior secured
asset-based revolving credit facility with a six-year maturity, of which
$350.0&nbsp;million is available for letters of credit, subject to borrowing
base limitations. This facility consists of Tranche A Loans and Tranche A-1
Loans. All loans under the facility shall be made as Tranche A-1 Loans until
such time as all commitments under the Tranche A-1 Loans have been funded or
there is no further availability under the Tranche A-1 Loans, at which point
loans under the facility shall be made as Tranche A Loans. Any payments made on
the principal amount of the loans outstanding will first be applied to all the
Tranche A Loans outstanding before any amount will be applied to the Tranche A-1
Loans. As of January 30, 2009, we had no borrowings, $51.0&nbsp;million of
commercial letters of credit, and $83.7&nbsp;million of standby letters of
credit outstanding under our senior secured asset-based revolving credit
facility. See &#147;Description of Other Indebtedness.&#148;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px; TEXT-INDENT: 0px">Upon
the closing of the Merger, we entered into a $2.3&nbsp;billion senior secured
term loan facility with a seven-year maturity, the full amount of which was
borrowed on the closing date. This facility consists of two tranches, one of
which is a &#147;first-loss&#148; tranche, which, in certain circumstances, will be
subordinated in right of payment to the other tranche. See &#147;Description of Other
Indebtedness.&#148;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px; TEXT-INDENT: 0px">Consists
of certain financing and capital lease obligations and other debt instruments.
See &#147;Capitalization.&#148;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(4)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px; TEXT-INDENT: 0px">Represents
the cash equity investment of approximately $2.767&nbsp;billion made in Parent
and Parent&#146;s general partner by the Investors.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(5)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px; TEXT-INDENT: 0px">Represents
approximately $3.2&nbsp;million invested directly in Dollar General by the
Senior Management Participants, in the form of a rollover of their existing
equity interests in Dollar General to equity interests in Dollar General
following the Merger or through cash investments in Dollar General. In addition,
at various </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 6px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>17</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px; PAGE-BREAK-BEFORE: always">times
following the Merger we offered certain other employees a similar opportunity to
participate in our common equity.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(6)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px; TEXT-INDENT: 0px">We
repurchased $198.3&nbsp;million in aggregate principal amount of the 2010 Notes
at the closing of the Tender Offer substantially concurrently with the closing
of the Merger. 2010 Notes not repurchased pursuant to the Tender Offer remained
outstanding. As of January 30, 2009, approximately $1.8 million in aggregate
principal amount of the 2010 Notes remained outstanding. &nbsp;Includes expenses
and a premium (a portion of which includes a consent payment) of
$17.3&nbsp;million.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(7)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px; TEXT-INDENT: 0px">Reflects
our fees, expenses and other costs associated with the Transactions. Such fees
and expenses include placement and other financing fees, advisory fees,
transaction fees paid to affiliates of certain of the Investors, and other
transaction costs and professional fees. See note 11 to the Consolidated
Financial Statements included in the fiscal 2008 Form 10-K.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>18</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>OWNERSHIP AND CORPORATE STRUCTURE</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 6px; TEXT-INDENT: 48px">The diagram
below sets forth our corporate structure immediately following consummation of
the Transactions. All of our issued and outstanding capital stock is held by
Parent and the Management Participants. Parent is managed by its general
partner, Buck Holdings, LLC, a Delaware limited liability company, which is
currently controlled by investment funds affiliated with the Sponsor.
Immediately following consummation of the Transactions, the Investors owned
approximately 96.5% of the issued and outstanding common stock of Dollar General
through their investment in Parent (with certain co-investors holding limited
partnership interests in Parent and certain co-investors and the Sponsor holding
a general partnership interest in Parent through their control of Buck Holdings,
LLC) and the remaining approximately 3.5% was held directly by the Senior
Management Participants, in each case on a fully diluted basis. See &#147;The
Transactions.&#148; As of March 17, 2009, the Investors owned approximately 95.7% of
the outstanding common stock of Dollar General through their investment in
Parent and the remaining approximately 4.3% was held directly by the Management
Participants, in each case on a fully diluted basis. This structure was achieved
through a series of equity contributions that occurred in connection with the
Merger and thereafter. Parent, Buck Holdings, LLC and Buck were formed for the
purpose of consummating the Transactions. We continue to own substantially the
same operating assets.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 6px" align=center><IMG height=339
alt=[forms1final002.jpg] src="forms1final002.jpg" width=389 align=middle></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(1)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px">Represents
the cash equity investments of approximately $2.767 billion made in Parent by
the Investors.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(2)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px">Represents
approximately $10.4&nbsp;million invested directly in Dollar General by the
Senior Management Participants, either in the form of a rollover of their
existing equity interests in Dollar General to equity interests in Dollar
General following the Merger, the exchange of their stock options outstanding
prior to the Merger for vested options to purchase shares of common stock (the
&#147;Rollover Options&#148;), or through cash investments in Dollar General. As of March
17, 2009, the Management Participants had invested in Dollar General
approximately $13.9 million either in the form of the rollover of equity
interests that existed prior to the Transactions, referenced immediately above,
or through cash investments in Dollar General.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(3)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px">In connection
with the Merger, we entered into (i)&nbsp;a $1.125&nbsp;billion senior secured
asset-based revolving credit facility with a six-year maturity; and (ii)&nbsp;a
$2.3&nbsp;billion senior secured term loan facility with a seven-year maturity,
$2.3&nbsp;billion of which was borrowed on the closing date. As of January 30,
2009, we had no borrowings, $51.0&nbsp;million of commercial letters of credit,
and $83.7&nbsp;million of standby letters of credit outstanding under our senior
secured asset-based revolving credit facility and $2.3&nbsp;billion of
borrowings outstanding under our senior secured term loan facility.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 6px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>19</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>USE OF PROCEEDS</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">This
prospectus is delivered in connection with the sale of notes by Goldman, Sachs
&amp; Co. and its affiliates in market-making transactions. We will not receive
any of the proceeds from such transactions.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>20</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>CAPITALIZATION</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The following
table sets forth our capitalization as of January 30, 2009. The information in
this table should be read in conjunction with &#147;The Transactions&#148; included
elsewhere in this prospectus and in conjunction with the &#147;Selected Financial
Data,&#148; &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results
of Operations&#148; and &#147;Unaudited Pro Forma Condensed Consolidated Financial
Information&#148; sections of, and our financial statements included in, our fiscal
2008 Form&nbsp;10-K and incorporated herein by reference.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=519></TD>
<TD width=20></TD>
<TD width=93></TD></TR>
<TR>
<TD vAlign=bottom width=519>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=114 colSpan=2>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>January 30, 2009</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=519>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=114 colSpan=2>
<P style="MARGIN: 0px" align=center><B>(in millions)</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=519>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=114 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 13px; MARGIN-BOTTOM: 2px; TEXT-INDENT: -13px">Cash
and cash equivalents</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=20>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px" align=right>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=93>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px"
align=right>&nbsp;378.0</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">Debt:</P></TD>
<TD vAlign=bottom width=114 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P style="PADDING-LEFT: 26px; MARGIN: 0px; TEXT-INDENT: -13px">Credit
Facilities:</P></TD>
<TD vAlign=bottom width=114 colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P style="PADDING-LEFT: 40px; MARGIN: 0px; TEXT-INDENT: -13px">Revolving
asset-based credit facility(1)</P></TD>
<TD vAlign=bottom width=20>
<P style="MARGIN: 0px" align=right>$</P></TD>
<TD vAlign=bottom width=93>
<P style="MARGIN: 0px" align=right>0.0</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P style="PADDING-LEFT: 40px; MARGIN: 0px; TEXT-INDENT: -13px">Term loan
facility(2)</P></TD>
<TD vAlign=bottom width=114 colSpan=2>
<P style="MARGIN: 0px" align=right>2,300.0</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P style="PADDING-LEFT: 26px; MARGIN: 0px; TEXT-INDENT: -13px">Senior
notes, net of discount</P></TD>
<TD vAlign=bottom width=114 colSpan=2>
<P style="MARGIN: 0px" align=right>1,155.0</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P style="PADDING-LEFT: 26px; MARGIN: 0px; TEXT-INDENT: -13px">Senior
subordinated notes(3)</P></TD>
<TD vAlign=bottom width=114 colSpan=2>
<P style="MARGIN: 0px" align=right>655.9</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P style="PADDING-LEFT: 26px; MARGIN: 0px; TEXT-INDENT: -13px">Tax
increment financing due February 2035</P></TD>
<TD vAlign=bottom width=114 colSpan=2>
<P style="MARGIN: 0px" align=right>14.5</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 26px; MARGIN-BOTTOM: 1px; TEXT-INDENT: -13px">Capital
lease obligations and other</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=114
colSpan=2>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align=right>11.8</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 13px; MARGIN-BOTTOM: 1px; TEXT-INDENT: -13px">Total
debt</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=114
colSpan=2>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"
align=right>4,137.1</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 13px; MARGIN-BOTTOM: 1px; TEXT-INDENT: -13px">Equity</P></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width=114
colSpan=2>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px"
align=right>2,831.7</P></TD></TR>
<TR>
<TD vAlign=top width=519>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 26px; MARGIN-BOTTOM: 2px; TEXT-INDENT: -13px">Total
capitalization</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=20>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px" align=right>$</P></TD>
<TD style="BORDER-BOTTOM: #000000 3px double" vAlign=bottom width=93>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px"
align=right>6,968.8</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(1)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px">Upon the
closing of the Merger, we entered into a $1.125&nbsp;billion senior secured
asset-based revolving credit facility with a six-year maturity, of which
$350.0&nbsp;million is available for letters of credit, subject to borrowing
base limitations. This facility consists of Tranche&nbsp;A Loans and
Tranche&nbsp;A-1 Loans. All loans under the facility shall be made as
Tranche&nbsp;A-1 Loans until such time as all commitments under the
Tranche&nbsp;A-1 Loans have been funded or there is no further availability
under the Tranche&nbsp;A-1 Loans, at which point loans under the facility shall
be made as Tranche&nbsp;A Loans. Any payments made on the principal amount of
the loans outstanding will first be applied to all the Tranche&nbsp;A Loans
outstanding before any amount will be applied to the Tranche&nbsp;A-1 Loans. As
of January 30, 2009, we had no borrowings, $51.0&nbsp;million of commercial
letters of credit, and $83.7&nbsp;million of standby letters of credit
outstanding under our senior secured asset-based revolving credit facility. See
&#147;Description of Other Indebtedness.&#148;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(2)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px">Upon the
closing of the Merger, we entered into a $2.3&nbsp;billion senior secured term
loan facility with a seven-year maturity, the full amount of which was borrowed
on the closing date. This facility consists of two tranches, one of which is a
&#147;first-loss&#148; tranche, which, in certain circumstances, will be subordinated in
right of payment to the other tranche thereof. See &#147;Description of Other
Indebtedness.&#148;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(3)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: 6px">Subsequent to
the Merger, we repurchased and cancelled $69.1&nbsp;million of the senior
subordinated notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>21</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>RATIO OF EARNINGS TO FIXED CHARGES</B></P>
<P style="MARGIN: 0px; TEXT-INDENT: 48px">The following table sets forth the
ratio of our earnings to our fixed charges for the periods indicated.</P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=139></TD>
<TD width=73></TD>
<TD width=73></TD>
<TD width=73></TD>
<TD width=80></TD>
<TD width=80></TD>
<TD width=73></TD>
<TD width=73></TD></TR>
<TR>
<TD vAlign=bottom width=139>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=381 colSpan=5>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Historical</B></P></TD>
<TD vAlign=bottom width=73>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Pro<BR>Forma</B></P></TD>
<TD vAlign=bottom width=73>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Historical</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=139>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=300 colSpan=4>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Predecessor</B></P></TD>
<TD vAlign=bottom width=227 colSpan=3>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Successor</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=139>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=219 colSpan=3>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Fiscal Year Ended</B></P></TD>
<TD vAlign=bottom width=80>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=80>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=146 colSpan=2>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Fiscal Year Ended</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=139>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 9px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; TEXT-INDENT: -9px; LINE-HEIGHT: 11pt"><B>Ratios
of earnings to fixed charges(1)</B></P></TD>
<TD vAlign=bottom width=73>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>January&nbsp;28, 2005</B></P></TD>
<TD vAlign=bottom width=73>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>February&nbsp;3, 2006(2)</B></P></TD>
<TD vAlign=bottom width=73>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>February&nbsp;2, 2007</B></P></TD>
<TD vAlign=bottom width=80>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>February&nbsp;3,<BR>2007<BR>through<BR>July&nbsp;6,<BR>2007</B></P></TD>
<TD vAlign=bottom width=80>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>March 6,<BR>2007<BR>through<BR>February&nbsp;1,
2008</B></P></TD>
<TD vAlign=bottom width=73>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>February&nbsp;1,<BR>2008</B></P></TD>
<TD vAlign=bottom width=73>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 9pt; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid"
align=center><B>January&nbsp;30,<BR>2009</B></P></TD></TR>
<TR>
<TD vAlign=bottom width=139>
<P
style="PADDING-LEFT: 13px; FONT-SIZE: 9pt; MARGIN: 0px; TEXT-INDENT: -13px; LINE-HEIGHT: 11pt">Actual</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 9pt; MARGIN: 0px; LINE-HEIGHT: 11pt"
align=center>5.6x</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 9pt; MARGIN: 0px; LINE-HEIGHT: 11pt"
align=center>5.3x</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 9pt; MARGIN: 0px; LINE-HEIGHT: 11pt"
align=center>2.5x</P></TD>
<TD vAlign=bottom width=80>
<P style="FONT-SIZE: 9pt; MARGIN: 0px; LINE-HEIGHT: 11pt"
align=center>1.1x</P></TD>
<TD vAlign=bottom width=80>
<P style="FONT-SIZE: 9pt; MARGIN: 0px; LINE-HEIGHT: 11pt"
align=center>(3)</P></TD>
<TD vAlign=bottom width=73>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 9pt; MARGIN: 0px; LINE-HEIGHT: 11pt"
align=center>1.4x</P></TD></TR>
<TR>
<TD vAlign=bottom width=139>
<P
style="PADDING-LEFT: 13px; FONT-SIZE: 9pt; PADDING-BOTTOM: 4px; MARGIN: 0px; TEXT-INDENT: -13px; LINE-HEIGHT: 11pt; BORDER-BOTTOM: #000000 1px solid">Pro
forma (4)</P></TD>
<TD vAlign=bottom width=73>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=80>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=80>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=73>
<P style="FONT-SIZE: 9pt; MARGIN: 0px; LINE-HEIGHT: 11pt"
align=center>(5)</P></TD>
<TD vAlign=bottom width=73>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 24px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">(1)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 24px; MARGIN-BOTTOM: 13px">For purposes
of computing the ratio of earnings to fixed charges, (a)&nbsp;earnings consist
of income (loss) before income taxes, plus fixed charges less capitalized
expenses related to indebtedness (amortization expense for capitalized interest
is not significant) and (b)&nbsp;fixed charges consist of interest expense
(whether expensed or capitalized), the amortization of debt issuance costs and
discounts related to indebtedness, and the interest portion of rent expense.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(2)</P>
<P style="PADDING-LEFT: 22px; MARGIN: 0px; TEXT-INDENT: 0px">The fiscal year
ended February 3, 2006 was comprised of 53 weeks.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(3)</P>
<P style="PADDING-LEFT: 22px; MARGIN: 0px; TEXT-INDENT: 0px">For the period from
March 6, 2007 through February&nbsp;1, 2008, fixed charges exceeded earnings by
$6.6&nbsp;million. </P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(4)</P>
<P style="PADDING-LEFT: 22px; MARGIN: 0px; TEXT-INDENT: 0px">To give effect to
the increase in interest expense resulting from the portion of the notes
proceeds used to retire the $198.3&nbsp;million of our
8<SUP>5</SUP>/<SUB>8</SUB>% unsecured notes due June&nbsp;10, 2010 as if such
transactions had occurred at the beginning of the period presented.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 22px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -22px">(5)</P>
<P style="PADDING-LEFT: 22px; MARGIN: 0px; TEXT-INDENT: 0px">For the fiscal year
ended February&nbsp;1, 2008, pro forma fixed charges exceeded earnings by
$3.4&nbsp;million.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>22</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>DESCRIPTION OF OTHER INDEBTEDNESS</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Senior Secured Credit
Facilities</B></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Overview</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In connection
with the Transactions, we entered into two senior secured credit agreements,
each with Goldman Sachs Credit Partners L.P., Citigroup Global Markets, Inc.,
Lehman Brothers&nbsp;Inc. and Wachovia Capital Markets, LLC, each as joint lead
arranger and joint bookrunner. The CIT Group/Business Credit, Inc. is
administrative agent under the senior secured credit agreement for the
asset-based revolving credit facility and Citicorp North America, Inc. is
administrative agent under the senior secured credit agreement for the term loan
facility. We refer to these new facilities as the &#147;Credit Facilities.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Credit
Facilities provided senior secured financing of $3.425&nbsp;billion, consisting
of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">$2.3&nbsp;billion
in a senior secured term loan facility; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a senior
secured asset-based revolving credit facility of up to $1.125&nbsp;billion (of
which up to $350.0&nbsp;million is available for letters of credit), subject to
borrowing base availability.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The term loan
facility consists of two tranches, one of which is a &#147;first-loss&#148; tranche,
which, in certain circumstances, will be subordinated in right of payment to the
other tranche of the term loan facility.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We are the
borrower under the term loan credit facility and the primary borrower under the
asset-based credit facility. In addition, certain subsidiaries of ours are
designated as borrowers under the asset-based credit facility. The asset-based
revolving credit facility includes borrowing capacity available for letters of
credit and for short-term borrowings referred to as swingline loans.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Credit
Facilities provide that we have the right at any time to request up to
$325.0&nbsp;million of incremental commitments under one or more incremental
term loan facilities and/or asset-based revolving credit facilities. The lenders
under these facilities are not under any obligation to provide any such
incremental commitments and any such addition of or increase in commitments will
be subject to our not exceeding certain senior secured leverage ratios and
certain other customary conditions precedent. Our ability to obtain extensions
of credit under these incremental commitments will also be subject to the same
conditions as extensions of credit under the Credit Facilities.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The amount
from time to time available under the senior secured asset-based revolving
credit facility (including in respect of letters of credit) shall not exceed the
sum of the tranche&nbsp;A borrowing base and the tranche&nbsp;A-1 borrowing
base. The tranche&nbsp;A borrowing base equals the sum of (i)&nbsp;85% of the
net orderly liquidation value of all eligible inventory of ours and each
co-borrower and each guarantor thereunder and (ii)&nbsp;90% of all accounts
receivable and credit/debit card receivables of ours and each co-borrower and
each guarantor thereunder, in each case, subject to a reserve equal to the
principal amount of the 2010 Notes that remain outstanding at any time and other
customary reserves and eligibility criteria. The tranche&nbsp;A-1 borrowing base
equals 10% to 12% of the net orderly liquidation value of all eligible inventory
of ours and each co-borrower and each guarantor under the asset-based revolving
credit facility. All loans under the asset-based revolving credit facility shall
be made as tranche&nbsp;A-1 loans until such time as all tranche&nbsp;A-1
commitments have been funded or there is no further availability under the
tranche&nbsp;A-1 borrowing base, at which point loans under the asset-based
revolving credit facility shall be made as tranche&nbsp;A loans. Any payments
made on the principal amount of the loans outstanding under the asset-based
revolving credit facility will first be applied to all the tranche&nbsp;A loans
outstanding before any amount will be applied to the tranche&nbsp;A-1 loans
outstanding.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Interest
Rate and Fees</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Borrowings
under the Credit Facilities bear interest at a rate equal to an applicable
margin plus, at our option, either (a)&nbsp;LIBOR or (b)&nbsp;a base rate (which
is usually equal to the prime rate). The applicable margin for </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>23</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">borrowings
is (i)&nbsp;under the term loan facility, 2.75% with respect to LIBOR borrowings
and 1.75% with respect to base-rate borrowings and (ii)&nbsp;as of January 30,
2009 under the asset-based revolving credit facility (except in the last out
tranche described above), 1.25% with respect to LIBOR borrowings and 0.25% with
respect to base-rate borrowings and for any last out borrowings, 2.25% with
respect to LIBOR borrowings and 1.25% with respect to base-rate borrowings. The
applicable margins for borrowings under the asset-based revolving credit
facility (except in the case of last out borrowings) are subject to adjustment
each quarter based on average daily excess availability under the asset-based
revolving credit facility.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition
to paying interest on outstanding principal under the Credit Facilities, we are
required to pay a commitment fee to the lenders under the asset-based revolving
credit facility in respect of the unutilized commitments thereunder. At January
30, 2009, the commitment fee rate was 0.375% per annum. The commitment fee rate
will be reduced (except with regard to the last out tranche) to 0.25% per annum
at any time the unutilized commitments under the asset-based credit facility are
equal to or less than 50% of the aggregate commitments under the asset-based
revolving credit facility. We must also pay customary letter of credit fees.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Prepayments</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The senior
secured credit agreement for the term loan facility requires us to prepay
outstanding term loans, subject to certain exceptions, with:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">50% of our
annual excess cash flow (as defined in the credit agreement) which will be
reduced to 25% and 0% if we achieve and maintain a total net leverage ratio of
6.0 to 1.0 and 5.0 to 1.0, respectively;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">100% of the
net cash proceeds of all non-ordinary course asset sales or other dispositions
of property in excess of $25&nbsp;million in the aggregate and subject to our
right to reinvest the proceeds; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">100% of the
net cash proceeds of any incurrence of debt, other than proceeds from debt
permitted under the senior secured credit agreement for the term loan
facility.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The foregoing
mandatory prepayments will be applied to the term loan facility as directed by
the senior secured credit agreement for the term loan facility. Through January
30, 2009, no prepayments have been required under the prepayment provisions
listed above.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
the senior secured credit agreement for the asset-based revolving credit
facility requires us to prepay the asset-based revolving credit facility,
subject to certain exceptions, with:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">100% of the
net cash proceeds of all non-ordinary course asset sales or other dispositions
of revolving facility collateral (as defined below) in excess of $1&nbsp;million
in the aggregate and subject to our right to reinvest the proceeds; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">to the
extent such extensions of credit exceed the then current borrowing bases (as
defined in the senior secured credit agreement for the asset-based revolving
credit facility).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We may be
obligated to pay a prepayment premium on the amount repaid under the term loan
facility if the term loans are voluntarily repaid in whole or in part before
July&nbsp;6, 2009. We may voluntarily repay outstanding loans under the
asset-based revolving credit facility at any time without premium or penalty,
other than customary &#147;breakage&#148; costs with respect to LIBOR loans.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If a change
of control as defined in the senior secured credit agreements governing our
Credit Facilities occurs, this will cause an event of default under the senior
secured credit agreements. Upon an event of default, indebtedness under the
Credit Facilities may be accelerated, in which case we will be required to repay
all outstanding loans plus accrued and unpaid interest and all other amounts
outstanding under the Credit Facilities.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>24</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -24px"><B><I>Letters
of Credit</I></B></P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">$350.0&nbsp;million
of our asset-based revolving credit facility is available for letters of
credit.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Amortization</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Beginning
September&nbsp;30, 2009, we are required to repay installments on the loans
under the term loan credit facility in equal quarterly principal amounts in an
aggregate amount per annum equal to 1% of the total funded principal amount at
July&nbsp;6, 2007, with the balance payable on July&nbsp;6, 2014. There is no
amortization under the asset-based revolving credit facility. The entire
principal amounts (if any) outstanding under the asset-based revolving credit
facility are due and payable in full at maturity, on July&nbsp;6, 2013, on which
day the commitments thereunder will terminate.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Guarantee
and Security</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">All
obligations under the Credit Facilities are unconditionally guaranteed by
substantially all of our existing and future domestic subsidiaries (excluding
certain immaterial subsidiaries and certain subsidiaries designated by us under
our senior secured credit agreements as &#147;unrestricted subsidiaries&#148;), referred
to, collectively, as U.S. Guarantors.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">All
obligations under the asset-based revolving credit facility, and the guarantees
of those obligations, are secured by all existing and after-acquired inventory,
accounts receivable, and other assets arising from such inventory and accounts
receivable, of ours and each U.S. Guarantor (the &#147;Revolving Facility
Collateral&#148;), subject to certain exceptions.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">All
obligations under the term loan facility and the guarantees of those obligations
are secured by:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a
second-priority security interest in the Revolving Facility Collateral;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a first
priority security interest in, and mortgages on, substantially all of the
tangible and intangible assets of ours and each U.S. Guarantor (other than the
Revolving Facility Collateral); and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a
first-priority pledge of 100% of the capital stock held by us or any of our
domestic subsidiaries that are directly owned by us or one of the U.S.
Guarantors and 65% of the voting capital stock of each of our existing and
future foreign subsidiaries that are directly owned by us or one of the U.S.
Guarantors.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Certain
Covenants and Events of Default</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The senior
secured credit agreements contain a number of covenants that, among other
things, restrict, subject to certain exceptions, our ability to:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">incur
additional indebtedness;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">sell
assets;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">pay
dividends and distributions or repurchase our capital stock;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">make
investments or acquisitions;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">repay or
repurchase subordinated indebtedness (including the senior subordinated notes)
or the senior notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>25</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">amend
material agreements governing our subordinated indebtedness (including the
senior subordinated notes) or the senior notes; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">change our
lines of business.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The senior
secured credit agreements also contain certain customary affirmative covenants
and events of default.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">At January
30, 2009, we had no borrowings, $51.0&nbsp;million of commercial letters of
credit, and $83.7&nbsp;million of standby letters of credit outstanding under
our asset-based revolving credit facility.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>2010 Notes and Other
Indebtedness</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">On
July&nbsp;6, 2007, immediately after the completion of the Merger, we completed
a cash tender offer to purchase any and all of our $200&nbsp;million principal
amount of the 2010 Notes. Approximately 99% of the 2010 Notes were validly
tendered and accepted for payment. The tender offer included a consent payment
equal to 3% of the par value of the 2010 Notes, and such payments along with
associated settlement costs totaling $6.2&nbsp;million were paid and reflected
as a loss on debt retirement in the 2007 periods presented. Additionally,
because we received the requisite consents to the proposed amendments to the
indenture pursuant to which the 2010 Notes were issued, a supplemental indenture
to effect such amendments was executed and delivered. The amendments, which
eliminated substantially all of the restrictive covenants contained in the
indenture, became operative upon the purchase of the tendered 2010 Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">As of January
30, 2009, we had other indebtedness comprised of capital lease obligations of
$9.9&nbsp;million and a tax increment financing for our distribution center in
Marion, Indiana of $14.5&nbsp;million.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>26</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>DESCRIPTION OF SENIOR NOTES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>General</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Certain terms
used in this description are defined under the subheading &#147;Certain
Definitions.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Buck
Acquisition Corp. issued $1,175,000,000 aggregate principal amount of 10.625%
senior notes due 2015 (the &#147;<I>Senior Notes</I>&#148;) under an indenture dated
July&nbsp;6, 2007 (the &#147;<I>Senior Indenture</I>&#148;) among Buck Acquisition Corp.,
the Guarantors and U.S. Bank National Association (the successor trustee), as
trustee (the &#147;Successor Trustee&#148;). Immediately following the closing of the
offering and as part of the Transactions, Buck Acquisition Corp. merged with and
into Dollar General Corporation, with Dollar General Corporation continuing as
the surviving corporation and assuming all the obligations of Buck Acquisition
Corp. under the Senior Indenture. In this description, the terms &#147;<I>we</I>,&#148;
&#147;<I>our</I>,&#148; &#147;<I>us</I>,&#148; &#147;<I>the Issuer</I>&#148; and &#147;<I>the Company</I>&#148; refer to
Buck Acquisition Corp. prior to the merger described above and to Dollar General
Corporation as the surviving corporation in the merger, together with its
consolidated Subsidiaries (except that &#147;the Issuer&#148; does not include
consolidated subsidiaries).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Effective
February 25, 2009 (the &#147;Effective Date&#148;), Wells Fargo Bank, National Association
(the &#147;Prior Trustee&#148;) resigned as trustee under the Senior Indenture. &nbsp;The
Company entered into an Instrument of Resignation, Appointment and Acceptance
(the &#147;Instrument of Resignation&#148;), effective as of the Effective Date, with the
Prior Trustee and the Successor Trustee. &nbsp;The instrument of Resignation
provides that, effective as of the Effective Date, (1) the Prior Trustee
assigns, transfers, delivers and confirms to the Successor Trustee all of its
rights, title, interest under the Senior Indenture and all of its rights, title,
interests, capacities, privileges, duties and responsibilities as Trustee under
the Senior Indenture; (2) the Company accepts the resignation of the Prior
Trustee as Trustee under the Senior Indenture and appoints the Successor Trustee
as Trustee under the Senior Indenture; and (3) the Successor Trustee accepts its
appointment as successor Trustee, and shall be vested with all of the rights,
title, interests, capacities, privileges, duties and responsibilities of the
Trustee, under the Senior Indenture. Nothing contained in the Instrument of
Resignation shall in any way affect the Company&#146;s obligations to the Prior
Trustee under Section 7.07 of the Senior Indenture or any lien created
thereunder. In this description, the term &#147;Trustee&#148; refers to the Prior Trustee
during the period prior to the Effective Date and to the Successor Trustee for
the period commencing on the Effective Date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The following
description is only a summary of the material provisions of the Senior
Indenture, does not purport to be complete and is qualified in its entirety by
reference to the provisions of that agreement, including the definitions therein
of certain terms used below. We urge you to read the Senior Indenture because
it, and not this description, will define your rights as Holders. You may
request copies of the Senior Indenture at our address set forth under the
heading &#147;Summary.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Brief Description of the
Senior Notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Notes:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are general
unsecured senior obligations of the Issuer;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are <I>pari
passu</I> in right of payment with all existing and future unsecured Senior
Indebtedness of the Issuer;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are
effectively subordinated to all Secured Indebtedness of the Issuer, including
Indebtedness under the Issuer&#146;s new Senior Credit Facilities, to the extent of
the collateral securing such Indebtedness;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are senior
in right of payment to all existing and future Subordinated Indebtedness of the
Issuer, including the Senior Subordinated Notes;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are
structurally subordinated to any existing and future indebtedness and
liabilities of non-guarantor Subsidiaries, including the Issuer&#146;s Foreign
Subsidiaries and any Unrestricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>27</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are
initially unconditionally guaranteed on a joint and several and senior basis by
each Restricted Subsidiary that guarantees the General Credit Facility; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are subject
to registration with the SEC pursuant to the Registration Rights Agreement.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Guarantees</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
Guarantors, as primary obligors and not merely as sureties, initially jointly
and severally fully and unconditionally guarantee, on a senior basis, the
performance and full and punctual payment when due, whether at maturity, by
acceleration or otherwise, of all obligations of the Issuer under the Senior
Indenture and the Senior Notes, whether for payment of principal of, premium, if
any, or interest or Special Interest in respect of the Senior Notes, expenses,
indemnification or otherwise, on the terms set forth in the Senior Indenture by
executing the Senior Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
Restricted Subsidiaries which guarantee the General Credit Facility initially
guaranteed the Senior Notes. Each Guarantee is a general unsecured senior
obligation of the applicable Guarantor, ranks <I>pari passu</I> in right of
payment with all existing and any future Senior Indebtedness of such Guarantor,
is effectively subordinated to all Secured Indebtedness of such Guarantor to the
extent of the value of the collateral securing such Indebtedness, and is senior
in right of payment to all existing and any future Subordinated Indebtedness of
such Guarantor (including the Senior Subordinated Notes). The Senior Notes will
be structurally subordinated to Indebtedness and other liabilities of
Subsidiaries of the Issuer that do not guarantee the Senior Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Not all of
the Issuer&#146;s Subsidiaries guarantee the Senior Notes. In the event of a
bankruptcy, liquidation or reorganization of any of these non-Guarantor
Subsidiaries, the non-Guarantor Subsidiaries will pay the holders of their debt
and their trade creditors before they will be able to distribute any of their
assets to the Issuer. None of the Issuer&#146;s Subsidiaries which are Foreign
Subsidiaries, non-Wholly Owned Subsidiaries or any Receivables Subsidiaries will
guarantee the Senior Credit Facilities, the Senior Notes or the Senior
Subordinated Notes. Our non-Guarantor Subsidiaries accounted for approximately
$97.9&nbsp;million of net revenues and approximately $26.2&nbsp;million of net
income, in each case, for 2008 and approximately $313.3&nbsp;million of total
assets, and approximately $250.5&nbsp;million of total liabilities, in each case
as of January 30, 2009. </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
obligations of each Guarantor under its Guarantee is limited as necessary to
prevent the Guarantee from constituting a fraudulent conveyance under applicable
law.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Any entity
that makes a payment under its Guarantee will be entitled upon payment in full
of all guaranteed obligations under the Senior Indenture to a contribution from
each other Guarantor in an amount equal to such other Guarantor&#146;s pro rata
portion of such payment based on the respective net assets of all the Guarantors
at the time of such payment determined in accordance with GAAP.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If a
Guarantee were rendered voidable, it could be subordinated by a court to all
other indebtedness (including guarantees and other contingent liabilities) of
the Guarantor, and, depending on the amount of such indebtedness, a Guarantor&#146;s
liability on its Guarantee could be reduced to zero. See &#147;Risk Factors&#151;Risks
Related to the Notes&#151;Federal and state fraudulent transfer laws may permit a
court to void the guarantees, and, if that occurs, you may not receive any
payments on the notes.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Each
Guarantee by a Guarantor will provide by its terms that it will be automatically
and unconditionally released and discharged upon:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 124px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -76px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 124px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -29px">(a)
</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 124px; MARGIN-BOTTOM: 13px">any sale,
exchange or transfer (by merger or otherwise) of the Capital Stock of such
Guarantor, after which the applicable Guarantor is no longer a Restricted
Subsidiary of all or substantially all the assets of such Guarantor, which sale,
exchange or transfer is made in compliance with the applicable provisions of the
Senior Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>28</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 124px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -29px">(b)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 124px; MARGIN-BOTTOM: 13px">the release
or discharge of the guarantee by such Guarantor of the Senior Credit Facilities
or such other guarantee that resulted in the creation of such guarantee, except
a discharge or release by or as a result of payment under such guarantee;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 124px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -29px">(c)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 124px; MARGIN-BOTTOM: 13px">the
designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted
Subsidiary in compliance with the applicable provisions of the Senior Indenture;
or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 124px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -29px">(d)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 124px; MARGIN-BOTTOM: 13px">the
exercise by the Issuer of its legal defeasance option or covenant defeasance
option as described under &#147;Legal Defeasance and Covenant Defeasance&#148; or the
discharge of the Issuer&#146;s obligations under the Senior Indenture in accordance
with the terms of the Senior Indenture; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -48px">(2)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px">such
Guarantor delivering to the Trustee an Officer&#146;s Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for in the Senior
Indenture relating to such transaction have been complied with.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Paying Agent and Registrar
for the Senior Notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
maintains one or more paying agents and a registrar for the Senior Notes with
offices in the Borough of Manhattan, City of New York. As of the date of this
prospectus, the paying agent and the registrar for the Senior Notes is the
Trustee.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The registrar
will maintain a register reflecting ownership of the Senior Notes outstanding
from time to time and will make payments on and facilitate transfer of Senior
Notes on behalf of the Issuer.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
may change the paying agents or the registrars without prior notice to the
Holders. The Issuer or any of its Subsidiaries may act as a paying agent or
registrar.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Transfer and Exchange</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">A Holder may
transfer or exchange Senior Notes in accordance with the Senior Indenture. The
registrar and the Trustee may require a Holder to furnish appropriate
endorsements and transfer documents in connection with a transfer of Senior
Notes. Holders will be required to pay all taxes due on transfer. The Issuer
will not be required to transfer or exchange any Senior Note selected for
redemption. Also, the Issuer will not be required to transfer or exchange any
Senior Note for a period of 15&nbsp;days before a selection of Senior Notes to
be redeemed.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Principal, Maturity and
Interest</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
issued $1,175,000,000 in aggregate principal amount of Senior Notes. The Senior
Notes will mature on July&nbsp;15, 2015. Subject to compliance with the covenant
described below under the caption &#147;Certain Covenants&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148; the Issuer
may issue additional Senior Notes under the Senior Indenture (any such Senior
Notes, &#147;<I>Additional Senior Notes</I>&#148;). The Senior Notes, and any Additional
Senior Notes subsequently issued under the Senior Indenture, will be treated as
a single class for all purposes under the Senior Indenture, including waivers,
amendments, redemptions and offers to purchase. Unless the context requires
otherwise, references to &#147;Senior Notes&#148; for all purposes of the Senior Indenture
and this &#147;Description of Senior Notes&#148; include any Additional Senior Notes that
are actually issued.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Interest on
the Senior Notes accrues at the rate of 10.625% per annum and is payable
semi-annually in arrears on January&nbsp;15 and July&nbsp;15, commencing on
January&nbsp;15, 2008, to the Holders of record on the immediately preceding
January&nbsp;1 and July&nbsp;1. Interest on the Senior Notes accrues from the
most recent date to which interest has been paid or, if no interest has been
paid, from and including the Issue Date. Interest on the Senior Notes is
computed on the basis of a 360-day year comprised of twelve 30-day months.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>29</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 51px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -7px"><B><I>Special
Interest</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Special
Interest may accrue on the Senior Notes in certain circumstances pursuant to the
Registration Rights Agreement. Any Special Interest on the Senior Notes will be
payable in the same form elected by the Issuer for payment of interest for the
applicable interest payment period. All references in the Senior Indenture, in
any context, to any interest or other amount payable on or with respect to the
Senior Notes shall be deemed to include any Special Interest pursuant to the
Registration Rights Agreement. Principal of, premium, if any, and interest on
the Senior Notes will be payable at the office or agency of the Issuer
maintained for such purpose within the City and State of New York or, at the
option of the Issuer, payment of interest may be made by check mailed to the
Holders of the Senior Notes at their respective addresses set forth in the
register of Holders; <I>provided</I> that all payments of principal, premium, if
any, and interest with respect to the Senior Notes represented by one or more
global notes registered in the name of or held by the Depository Trust Company
(&#147;DTC&#148;) or its nominee will be made by wire transfer of immediately available
funds to the accounts specified by the Holder or Holders thereof. Until
otherwise designated by the Issuer, the Issuer&#146;s office or agency in New York
will be the office of the Trustee maintained for such purpose.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Mandatory Redemption; Offers
to Purchase; Open Market Purchases</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not be required to make any mandatory redemption or sinking fund payments
with respect to the Senior Notes. However, under certain circumstances, the
Issuer may be required to offer to purchase Senior Notes as described under the
caption &#147;Repurchase at the Option of Holders.&#148; The Issuer may from time to time
acquire any Senior Notes by means other than a redemption, whether by tender
offer, in open market purchases, through negotiated transactions or
otherwise.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Optional Redemption</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Except as set
forth below, the Issuer will not be entitled to redeem Senior Notes at its
option prior to July&nbsp;15, 2011.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">At any time
prior to July&nbsp;15, 2011, the Issuer may redeem all or a part of the Senior
Notes, upon not less than 30 nor more than 60&nbsp;days&#146; prior notice mailed by
first-class mail to the registered address of each Holder or otherwise in
accordance with the procedures of DTC, at a redemption price equal to 100% of
the principal amount of the Senior Notes redeemed plus the Applicable Premium as
of, and accrued and unpaid interest and Special Interest, if any, to the date of
redemption (the &#147;<I>Redemption Date</I>&#148;), subject to the rights of Holders on
the relevant record date to receive interest due on the relevant interest
payment date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">On and after
July&nbsp;15, 2011, the Issuer may redeem the Senior Notes, in whole or in part,
upon not less than 30 nor more than 60&nbsp;days&#146; prior notice mailed by
first-class mail to the registered address of each Holder or otherwise in
accordance with the procedures of DTC, at the redemption prices (expressed as
percentages of principal amount of the Senior Notes to be redeemed) set forth
below, plus accrued and unpaid interest thereon and Special Interest, if any, to
the applicable Redemption Date, subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date, if redeemed during the twelve-month period beginning on July&nbsp;15 of
each of the years indicated below:</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=577></TD>
<TD width=72></TD></TR>
<TR>
<TD vAlign=bottom width=577>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"><B>Year</B></P></TD>
<TD vAlign=bottom width=72>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Percentage</B></P></TD></TR>
<TR>
<TD vAlign=top width=577>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">2011</P></TD>
<TD vAlign=bottom width=72>
<P style="MARGIN: 0px" align=center>105.313%</P></TD></TR>
<TR>
<TD vAlign=top width=577>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">2012</P></TD>
<TD vAlign=bottom width=72>
<P style="MARGIN: 0px" align=center>102.656%</P></TD></TR>
<TR>
<TD vAlign=top width=577>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">2013 and
thereafter</P></TD>
<TD vAlign=bottom width=72>
<P style="MARGIN: 0px" align=center>100.000%</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
until July&nbsp;15, 2010, the Issuer may, at its option, on one or more
occasions redeem up to 35% of the aggregate principal amount of Senior Notes at
a redemption price equal to 110.625% of the aggregate principal amount thereof,
plus accrued and unpaid interest thereon and Special Interest, if any, to the
applicable Redemption Date, subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date, with the net cash proceeds of one or more Equity Offerings;
<I>provided</I> that at least 50% of the sum of the original aggregate principal
amount of Senior Notes issued under the Senior Indenture and the </P>
<P style="MARGIN: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>30</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">original
principal amount of any Additional Senior Notes issued under the Senior
Indenture after the Issue Date remains outstanding immediately after the
occurrence of each such redemption; <I>provided further</I> that each such
redemption occurs within 90&nbsp;days of the date of closing of each such Equity
Offering.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notice of any
redemption may be given prior to the redemption thereof, and any such redemption
or notice may, at the Issuer&#146;s discretion, be subject to one or more conditions
precedent, including, but not limited to, completion of an Equity Offering or
other corporate transaction.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If the Issuer
redeems less than all of the outstanding Senior Notes, the Trustee shall select
the Senior Notes to be redeemed in the manner described under &#147;Repurchase at the
Option of Holders&#151;Selection and Notice.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Repurchase at the Option of
Holders</B></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Change
of Control</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Notes provide that if a Change of Control occurs, unless the Issuer has
previously or concurrently mailed a redemption notice with respect to all the
outstanding Senior Notes as described under &#147;Optional Redemption,&#148; the Issuer
will make an offer to purchase all of the Senior Notes pursuant to the offer
described below (the &#147;<I>Change of Control Offer</I>&#148;) at a price in cash (the
&#147;<I>Change of Control Payment</I>&#148;) equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest and Special Interest, if any, to
the date of purchase, subject to the right of Holders of the Senior Notes of
record on the relevant record date to receive interest due on the relevant
interest payment date. Within 30&nbsp;days following any Change of Control, the
Issuer will send notice of such Change of Control Offer by first-class mail,
with a copy to the Trustee, to each Holder to the address of such Holder
appearing in the security register with a copy to the Trustee or otherwise in
accordance with the procedures of DTC, with the following information:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that a Change
of Control Offer is being made pursuant to the covenant entitled &#147;Change of
Control&#148; and that all Senior Notes properly tendered pursuant to such Change of
Control Offer will be accepted for payment by the Issuer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the purchase
price and the purchase date, which will be no earlier than 30&nbsp;days nor
later than 60&nbsp;days from the date such notice is mailed (the &#147;<I>Change of
Control Payment Date</I>&#148;);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that any
Senior Note not properly tendered will remain outstanding and continue to accrue
interest;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that unless
the Issuer defaults in the payment of the Change of Control Payment, all Senior
Notes accepted for payment pursuant to the Change of Control Offer will cease to
accrue interest on the Change of Control Payment Date;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that Holders
electing to have any Senior Notes purchased pursuant to a Change of Control
Offer will be required to surrender such Senior Notes, with the form entitled
&#147;Option of Holder to Elect Purchase&#148; on the reverse of such Senior Notes
completed, to the paying agent specified in the notice at the address specified
in the notice prior to the close of business on the third Business Day preceding
the Change of Control Payment Date;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that Holders
will be entitled to withdraw their tendered Senior Notes and their election to
require the Issuer to purchase such Senior Notes; <I>provided</I> that the
paying agent receives, not later than the close of business on the 30th day
following the date of the Change of Control notice, a telegram, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Senior Notes tendered for purchase, and a statement that such Holder
is withdrawing its tendered Senior Notes and its election to have such Senior
Notes purchased;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that if the
Issuer is redeeming less than all of the Senior Notes, the Holders of the
remaining Senior Notes will be issued new Senior Notes that will be equal in
principal amount to the unpurchased portion of the Senior Notes surrendered. The
unpurchased portion of the Senior Notes must be equal to $2,000 or an integral
multiple of $1,000 in excess thereof; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>31</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the other
instructions, as determined by us, consistent with the covenant described
hereunder, that a Holder must follow.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will comply with the requirements of Rule&nbsp;14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent they are
applicable in connection with the repurchase of Senior Notes pursuant to a
Change of Control Offer. To the extent that the provisions of any securities
laws or regulations conflict with the provisions of the Senior Indenture, the
Issuer will comply with the applicable securities laws and regulations and shall
not be deemed to have breached its obligations described in the Senior Indenture
by virtue thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">On the Change
of Control Payment Date, the Issuer will, to the extent permitted by law,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">accept for
payment all Senior Notes issued by it or portions thereof properly tendered
pursuant to the Change of Control Offer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">deposit with
the paying agent an amount equal to the aggregate Change of Control Payment in
respect of all Senior Notes or portions thereof so tendered; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">deliver, or
cause to be delivered, to the Trustee for cancellation the Senior Notes so
accepted together with an Officer&#146;s Certificate to the Trustee stating that such
Senior Notes or portions thereof have been tendered to and purchased by the
Issuer.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The paying
agent will promptly mail to each Holder the Change of Control Payment for such
Senior Notes, and the Trustee will promptly authenticate and mail (or cause to
be transferred by book entry) to each Holder a new Senior Note equal in
principal amount to any unpurchased portion of the Senior Notes surrendered, if
any; <I>provided</I> that each such new Senior Note will be in a principal
amount of $2,000 or an integral multiple of $1,000 in excess thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Credit Facilities will, and future credit agreements or other agreements
relating to Senior Indebtedness to which the Issuer becomes a party may, provide
that certain change of control events with respect to the Issuer would
constitute a default thereunder (including a Change of Control under the Senior
Indenture). If we experience a change of control that triggers a default under
our Senior Credit Facilities, we could seek a waiver of such default or seek to
refinance our Senior Credit Facilities. In the event we do not obtain such a
waiver or refinance the Senior Credit Facilities, such default could result in
amounts outstanding under our Senior Credit Facilities being declared due and
payable and could cause a Receivables Facility to be wound down.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Our ability
to pay cash to the Holders following the occurrence of a Change of Control may
be limited by our then-existing financial resources. Therefore, sufficient funds
may not be available when necessary to make any required repurchases.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Change of
Control purchase feature of the Senior Notes may in certain circumstances make
more difficult or discourage a sale or takeover of us and, thus, the removal of
incumbent management. The Change of Control purchase feature is a result of
negotiations between the Initial Purchasers and us. After the Issue Date, we
have no present intention to engage in a transaction involving a Change of
Control, although it is possible that we could decide to do so in the future.
Subject to the limitations discussed below, we could, in the future, enter into
certain transactions, including acquisitions, refinancings or other
recapitalizations, that would not constitute a Change of Control under the
Senior Indenture, but that could increase the amount of indebtedness outstanding
at such time or otherwise affect our capital structure or credit ratings.
Restrictions on our ability to incur additional Indebtedness are contained in
the covenants described under &#147;Certain Covenants&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock&#148; and
&#147;Certain Covenants&#151;Liens.&#148; Such restrictions in the Senior Indenture can be
waived only with the consent of the Holders of a majority in principal amount of
the Senior Notes then outstanding. Except for the limitations contained in such
covenants, however, the Senior Indenture will not contain any covenants or
provisions that may afford Holders protection in the event of a highly leveraged
transaction.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>32</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">The
Issuer will not be required to make a Change of Control Offer following a Change
of Control if a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in the
Senior Indenture applicable to a Change of Control Offer made by us and
purchases all Senior Notes validly tendered and not withdrawn under such Change
of Control Offer. Notwithstanding anything to the contrary herein, a Change of
Control Offer may be made in advance of a Change of Control, conditional upon
such Change of Control, if a definitive agreement is in place for the Change of
Control at the time of making of the Change of Control Offer.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
definition of &#147;Change of Control&#148; includes a disposition of all or substantially
all of the assets of the Issuer to any Person. Although there is a limited body
of case law interpreting the phrase &#147;substantially all,&#148; there is no precise
established definition of the phrase under applicable law. Accordingly, in
certain circumstances there may be a degree of uncertainty as to whether a
particular transaction would involve a disposition of &#147;all or substantially all&#148;
of the assets of the Issuer. As a result, it may be unclear as to whether a
Change of Control has occurred and whether a Holder may require the Issuer to
make an offer to repurchase the Senior Notes as described above.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
provisions under the Senior Indenture relating to the Issuer&#146;s obligation to
make an offer to repurchase the Senior Notes as a result of a Change of Control
may be waived or modified with the written consent of the Holders of a majority
in principal amount of the Senior Notes.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Asset
Sales</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture provides that the Issuer will not, and will not permit any of its
Restricted Subsidiaries to consummate, directly or indirectly, an Asset Sale,
unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer or
such Restricted Subsidiary, as the case may be, receives consideration at the
time of such Asset Sale at least equal to the fair market value (as determined
in good faith by the Issuer) of the assets sold or otherwise disposed of;
and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">except in the
case of a Permitted Asset Swap, at least 75% of the consideration therefor
received by the Issuer or such Restricted Subsidiary, as the case may be, is in
the form of cash or Cash Equivalents; <I>provided</I> that the amount of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
liabilities (as shown on the Issuer&#146;s or such Restricted Subsidiary&#146;s most
recent balance sheet or in the footnotes thereto) of the Issuer or such
Restricted Subsidiary, other than liabilities that are by their terms
subordinated to the Senior Notes, that are assumed by the transferee of any such
assets and for which the Issuer and all of its Restricted Subsidiaries have been
validly released by all creditors in writing,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
securities received by the Issuer or such Restricted Subsidiary from such
transferee that are converted by the Issuer or such Restricted Subsidiary into
cash (to the extent of the cash received) within 180&nbsp;days following the
closing of such Asset Sale, and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Designated Non-cash Consideration received by the Issuer or such Restricted
Subsidiary in such Asset Sale having an aggregate fair market value, taken
together with all other Designated Non-cash Consideration received pursuant to
this clause&nbsp;(c) that is at that time outstanding, not to exceed 5.0% of
Total Assets at the time of the receipt of such Designated Non-cash
Consideration, with the fair market value of each item of Designated Non-cash
Consideration being measured at the time received and without giving effect to
subsequent changes in value,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">shall be
deemed to be cash for purposes of this provision and for no other purpose.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Within 360
days after the receipt of any Net Proceeds of any Asset Sale, the Issuer or such
Restricted Subsidiary, at its option, may apply the Net Proceeds from such Asset
Sale,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>33</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
permanently reduce:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Obligations
under the Senior Notes or any other Senior Indebtedness of the Issuer or any
Guarantor (other than Obligations owed to the Issuer or a Restricted Subsidiary)
and, in the case of Obligations under revolving credit facilities or other
similar Indebtedness, to correspondingly permanently reduce commitments with
respect thereto; <I>provided</I> that if the Issuer or any Restricted Subsidiary
shall so reduce Obligations under any Senior Indebtedness that is not secured by
a Lien, the Issuer or such Guarantor will, equally and ratably, reduce
Obligations under the Senior Notes by, at its option, (A)&nbsp;redeeming Senior
Notes, (B)&nbsp;making an offer (in accordance with the procedures set forth
below for an Asset Sale Offer) to all Holders to purchase their Senior Notes at
100% of the principal amount thereof, <I>plus</I> the amount of accrued and
unpaid interest and Special Interest, if any, on the principal amount of Senior
Notes to be repurchased or (C)&nbsp;purchasing Senior Notes through open market
purchases (to the extent such purchases are at a price equal to or higher than
100% of the principal amount thereof) in a manner that complies with the Senior
Indenture and applicable securities law; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of a Restricted Subsidiary that is not a Guarantor, other than Indebtedness owed
to the Issuer or another Restricted Subsidiary;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to make
(a)&nbsp;an Investment in any one or more businesses, <I>provided</I> that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (b)&nbsp;capital expenditures or
(c)&nbsp;acquisitions of other assets, in each of (a), (b)&nbsp;and (c), used or
useful in a Similar Business; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to make an
Investment in (a)&nbsp;any one or more businesses, <I>provided</I> that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (b)&nbsp;properties or
(c)&nbsp;acquisitions of other assets that, in each of (a), (b)&nbsp;and (c),
replace the businesses, properties and/or assets that are the subject of such
Asset Sale;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I> that, in the
case of clauses (2)&nbsp;and (3)&nbsp;above, a binding commitment shall be
treated as a permitted application of the Net Proceeds from the date of such
commitment so long as the Issuer, or such other Restricted Subsidiary enters
into such commitment with the good faith expectation that such Net Proceeds will
be applied to satisfy such commitment within 180&nbsp;days of such commitment
(an &#147;<I>Acceptable Commitment</I>&#148;) and, in the event any Acceptable Commitment
is later cancelled or terminated for any reason before the Net Proceeds are
applied in connection therewith, the Issuer or such Restricted Subsidiary enters
into another Acceptable Commitment (a &#147;<I>Second Commitment</I>&#148;) within
180&nbsp;days of such cancellation or termination; <I>provided</I>,
<I>further</I>, that if any Second Commitment is later cancelled or terminated
for any reason before such Net Proceeds are applied, then such Net Proceeds
shall constitute Excess Proceeds.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Any Net
Proceeds from Asset Sales that are not invested or applied as provided and
within the time period set forth in the first sentence of the preceding
paragraph will be deemed to constitute &#147;<I>Excess Proceeds</I>.&#148; When the
aggregate amount of Excess Proceeds exceeds $75.0&nbsp;million, the Issuer shall
make an offer to all Holders and, if required or permitted by the terms of any
Senior Indebtedness, to the holders of such Senior Indebtedness (an &#147;<I>Asset
Sale Offer</I>&#148;), to purchase the maximum aggregate principal amount of the
Senior Notes and such Senior Indebtedness that is a minimum of $2,000 or an
integral multiple of $1,000 in excess thereof that may be purchased out of the
Excess Proceeds at an offer price in cash in an amount equal to 100% of the
principal amount thereof, plus accrued and unpaid interest and Special Interest,
if any, to the date fixed for the closing of such offer, in accordance with the
procedures set forth in the Senior Indenture. The Issuer will commence an Asset
Sale Offer with respect to Excess Proceeds within ten Business Days after the
date that Excess Proceeds exceed $75.0&nbsp;million by mailing the notice
required pursuant to the terms of the Senior Indenture, with a copy to the
Trustee.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">To the extent
that the aggregate amount of Senior Notes and such Senior Indebtedness tendered
pursuant to an Asset Sale Offer is less than the Excess Proceeds, the Issuer may
use any remaining Excess Proceeds for general corporate purposes, subject to
other covenants contained in the Senior Indenture. If the aggregate principal
amount of Senior Notes or other Senior Indebtedness surrendered by such holders
thereof exceeds the amount of Excess </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>34</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Proceeds,
the Trustee shall select the Senior Notes and such other Senior Indebtedness to
be purchased on a pro rata basis based on the accreted value or principal amount
of the Senior Notes or such Senior Indebtedness tendered. Upon completion of any
such Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.
Additionally, the Issuer may, at its option, make an Asset Sale Offer using
proceeds from any Asset Sale at any time after consummation of such Asset Sale;
<I>provided</I> that such Asset Sale Offer shall be in an aggregate amount of
not less than $75.0&nbsp;million. Upon consummation of such Asset Sale Offer,
any Net Proceeds not required to be used to purchase Senior Notes shall not be
deemed Excess Proceeds.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pending the
final application of any Net Proceeds pursuant to this covenant, the holder of
such Net Proceeds may apply such Net Proceeds temporarily to reduce Indebtedness
outstanding under a revolving credit facility or otherwise invest such Net
Proceeds in any manner not prohibited by the Senior Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will comply with the requirements of Rule&nbsp;14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws or
regulations are applicable in connection with the repurchase of the Senior Notes
pursuant to an Asset Sale Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of the Senior
Indenture, the Issuer will comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations described
in the Senior Indenture by virtue thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Credit Facilities will prohibit or limit (subject to limited exceptions), and
future credit agreements or other agreements to which the Issuer becomes a party
may limit or prohibit, the Issuer from purchasing any Senior Notes as a result
of an Asset Sale Offer. In the event the Issuer is required to make an Asset
Sale Offer at a time when the Issuer is prohibited from purchasing the Senior
Notes, the Issuer could seek the consent of its lenders to permit the purchase
of the Senior Notes or could attempt to refinance the borrowings that contain
such prohibition. If the Issuer does not obtain such consent or repay such
borrowings, the Issuer will remain prohibited from purchasing the Senior Notes.
In such case, the Issuer&#146;s failure to purchase tendered Senior Notes would
constitute an Event of Default under the Senior Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
provisions under the Senior Indenture relative to the Issuer&#146;s obligation to
make an offer to repurchase the Senior Notes as a result of an Asset Sale may be
waived or modified with the written consent of the Holders of a majority in
principal amount of the Senior Notes.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Selection
and Notice</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If the Issuer
is redeeming less than all of the Senior Notes issued at any time, the Trustee
will select the Senior Notes to be redeemed (a)&nbsp;if the Senior Notes are
listed on any national securities exchange, in compliance with the requirements
of the principal national securities exchange on which the Senior Notes are
listed, (b)&nbsp;on a pro rata basis to the extent practicable or (c)&nbsp;by
lot or such other similar method in accordance with the procedures of DTC.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notices of
purchase or redemption shall be mailed by first-class mail, postage prepaid, at
least 30 but not more than 60&nbsp;days before the purchase or Redemption Date
to each Holder at such Holder&#146;s registered address or otherwise in accordance
with the procedures of DTC, except that redemption notices may be mailed more
than 60&nbsp;days prior to a Redemption Date if the notice is issued in
connection with a defeasance of the Senior Notes or a satisfaction and discharge
of the Senior Indenture. If any Senior Note is to be purchased or redeemed in
part only, any notice of purchase or redemption that relates to such Senior Note
shall state the portion of the principal amount thereof that has been or is to
be purchased or redeemed.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will issue a new Senior Note in a principal amount equal to the unredeemed
portion of the original Senior Note in the name of the Holder upon cancellation
of the original Senior Note. Senior Notes called for redemption become due on
the date fixed for redemption. On and after the Redemption Date, interest ceases
to accrue on Senior Notes or portions thereof called for redemption.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>35</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><B>Certain
Covenants</B></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Limitation
on Restricted Payments</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(I)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">declare or
pay any dividend or make any payment or distribution on account of the Issuer&#146;s,
or any of its Restricted Subsidiaries&#146; Equity Interests, including any dividend
or distribution payable in connection with any merger or consolidation other
than:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">dividends
or distributions by the Issuer payable solely in Equity Interests (other than
Disqualified Stock) of the Issuer; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">dividends
or distributions by a Restricted Subsidiary so long as, in the case of any
dividend or distribution payable on or in respect of any class or series of
securities issued by a Restricted Subsidiary other than a Wholly-Owned
Subsidiary, the Issuer or a Restricted Subsidiary receives at least its pro rata
share of such dividend or distribution in accordance with its Equity Interests
in such class or series of securities;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(II)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">purchase,
redeem, defease or otherwise acquire or retire for value any Equity Interests of
the Issuer or any direct or indirect parent of the Issuer, including in
connection with any merger or consolidation;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(III)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make any
principal payment on, or redeem, repurchase, defease or otherwise acquire or
retire for value in each case, prior to any scheduled repayment, sinking fund
payment or maturity, any Subordinated Indebtedness, other than:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
permitted under clauses (8)&nbsp;and (9)&nbsp;of the covenant described under
&#147;&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock&#148;; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
purchase, repurchase or other acquisition of Subordinated Indebtedness purchased
in anticipation of satisfying a sinking fund obligation, principal installment
or final maturity, in each case due within one year of the date of purchase,
repurchase or acquisition; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(IV)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make any
Restricted Investment</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">(all such payments and other
actions set forth in clauses (I)&nbsp;through (IV)&nbsp;above (other than any
exception thereto) being collectively referred to as &#147;<I>Restricted
Payments</I>&#148;), unless, at the time of such Restricted Payment:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">no Default
shall have occurred and be continuing or would occur as a consequence
thereof;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">immediately
after giving effect to such transaction on a <I>pro forma</I> basis, the Issuer
could incur $1.00 of additional Indebtedness under the provisions of the first
paragraph of the covenant described under &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock&#148;; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Issuer and its Restricted Subsidiaries after the Issue Date
(including Restricted Payments permitted by clauses (1), (2)&nbsp;(with respect
to the payment of dividends on Refunding Capital Stock (as defined below)
pursuant to clause&nbsp;(b) thereof only), (6)(c), (9)&nbsp;and (14)&nbsp;of the
next succeeding paragraph, but excluding all other Restricted Payments permitted
by the next succeeding paragraph), is less than the sum of (without
duplication):</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">50%
of the Consolidated Net Income of the Issuer for the period (taken as one
accounting period) beginning May&nbsp;4, 2007, to the end of the Issuer&#146;s most
recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment, or, in the case such
Consolidated Net Income for such period is a deficit, minus 100% of such
deficit; <I>plus</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>36</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">100%
of the aggregate net cash proceeds and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received by
the Issuer since immediately after the Issue Date from the issue or sale of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(A)
Equity Interests of the Issuer, including Treasury Capital Stock (as defined
below), but excluding cash proceeds and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received
from the sale of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 192px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(x)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 192px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Equity
Interests to members of management, directors or consultants of the Issuer, any
direct or indirect parent company of the Issuer and the Issuer&#146;s Subsidiaries
after the Issue Date to the extent such amounts have been applied to Restricted
Payments made in accordance with clause&nbsp;(4) of the next succeeding
paragraph; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 192px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(y)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 192px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Designated
Preferred Stock; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">&nbsp;&nbsp;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(B)
to the extent such net cash proceeds are actually contributed to the Issuer,
Equity Interests of the Issuer&#146;s direct or indirect parent companies (excluding
contributions of the proceeds from the sale of Designated Preferred Stock of
such companies or contributions to the extent such amounts have been applied to
Restricted Payments made in accordance with clause&nbsp;(4) of the next
succeeding paragraph); or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(ii)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">debt
securities of the Issuer that have been converted into or exchanged for such
Equity Interests of the Issuer;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px"><I>provided</I>,
<I>however</I>, that this clause&nbsp;(b) shall not include the proceeds from
(V)&nbsp;Refunding Capital Stock (as defined below), (W)&nbsp;Equity Interests
of the Issuer or convertible debt securities of the Issuer sold to a Restricted
Subsidiary, as the case may be, (X)&nbsp;Disqualified Stock or debt securities
that have been converted into Disqualified Stock, (Y)&nbsp;Excluded
Contributions or (Z)&nbsp;transactions whose proceeds were used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to
clause&nbsp;(13)(a) of the second paragraph of &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148; solely to
the extent of such usage; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">100%
of the aggregate amount of cash and the fair market value, as determined in good
faith by the Issuer, of marketable securities or other property contributed to
the capital of the Issuer following the Issue Date (other than net cash proceeds
to the extent such net cash proceeds (i)&nbsp;have been used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to
clause&nbsp;(13)(a) of the second paragraph of &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148;
(ii)&nbsp;are contributed by a Restricted Subsidiary or (iii)&nbsp;constitute
Excluded Contributions; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
the extent not already included in Consolidated Net Income, 100% of the
aggregate amount received in cash and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received by
means of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
sale or other disposition (other than to the Issuer or a Restricted Subsidiary)
of Restricted Investments made by the Issuer or its Restricted Subsidiaries and
repurchases and redemptions of such Restricted Investments from the Issuer or
its Restricted Subsidiaries and repayments of loans or advances, and releases of
guarantees, which constitute Restricted Investments by the Issuer or its
Restricted Subsidiaries, in each case after the Issue Date; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(ii)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
sale (other than to the Issuer or a Restricted Subsidiary) of the stock of an
Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary (other
than in each case to the extent the Investment in such Unrestricted Subsidiary
was made by the Issuer or a Restricted Subsidiary pursuant to clause&nbsp;(7) of
the next succeeding paragraph or to the extent such </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>37</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Investment
constituted a Permitted Investment) or a dividend from an Unrestricted
Subsidiary after the Issue Date; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in
the case of the redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary after the Issue Date, the fair market value of the Investment in such
Unrestricted Subsidiary, as determined by the Issuer in good faith (or if such
fair market value exceeds $75.0&nbsp;million, in writing by an Independent
Financial Advisor), at the time of the redesignation of such Unrestricted
Subsidiary as a Restricted Subsidiary other than to the extent the Investment in
such Unrestricted Subsidiary was made by the Issuer or a Restricted Subsidiary
pursuant to clause&nbsp;(7) of the next succeeding paragraph or to the extent
such Investment constituted a Permitted Investment.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The foregoing
provisions will not prohibit:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the payment
of any dividend within 60&nbsp;days after the date of declaration thereof, if at
the date of declaration such payment would have complied with the provisions of
the Senior Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a) the
redemption, repurchase, retirement or other acquisition of any Equity Interests
(&#147;<I>Treasury Capital Stock</I>&#148;) or Subordinated Indebtedness of the Issuer or
any Equity Interests of any direct or indirect parent company of the Issuer, in
exchange for, or out of the proceeds of the substantially concurrent sale (other
than to a Restricted Subsidiary) of, Equity Interests of the Issuer or any
direct or indirect parent company of the Issuer to the extent contributed to the
Issuer (in each case, other than any Disqualified Stock) (&#147;<I>Refunding Capital
Stock</I>&#148;) and (b)&nbsp;if immediately prior to the retirement of Treasury
Capital Stock, the declaration and payment of dividends thereon was permitted
under clause&nbsp;(6) of this paragraph, the declaration and payment of
dividends on the Refunding Capital Stock (other than Refunding Capital Stock the
proceeds of which were used to redeem, repurchase, retire or otherwise acquire
any Equity Interests of any direct or indirect parent company of the Issuer) in
an aggregate amount per year no greater than the aggregate amount of dividends
per annum that were declarable and payable on such Treasury Capital Stock
immediately prior to such retirement;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
redemption, repurchase or other acquisition or retirement of Subordinated
Indebtedness of the Issuer or a Guarantor made in exchange for, or out of the
proceeds of the substantially concurrent sale of, new Indebtedness of the Issuer
or a Guarantor, as the case may be, which is incurred in compliance with
&#147;&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock&#148; so long as:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
principal amount (or accreted value) of such new Indebtedness does not exceed
the principal amount of (or accreted value, if applicable), plus any accrued and
unpaid interest on, the Subordinated Indebtedness being so redeemed,
repurchased, acquired or retired for value, plus the amount of any reasonable
premium (including reasonable tender premiums), defeasance costs and any
reasonable fees and expenses incurred in connection with the issuance of such
new Indebtedness;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
new Indebtedness is subordinated to the Senior Notes or the applicable Guarantee
at least to the same extent as such Subordinated Indebtedness so purchased,
exchanged, redeemed, repurchased, acquired or retired for value;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
new Indebtedness has a final scheduled maturity date equal to or later than the
final scheduled maturity date of the Subordinated Indebtedness being so
redeemed, repurchased, acquired or retired; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
new Indebtedness has a Weighted Average Life to Maturity equal to or greater
than the remaining Weighted Average Life to Maturity of the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">a Restricted
Payment to pay for the repurchase, retirement or other acquisition or retirement
for value of Equity Interests (other than Disqualified Stock) of the Issuer or
any of its direct or indirect parent companies held by any future, present or
former employee, director or consultant of the Issuer, any of its Subsidiaries
or any of its direct or indirect parent companies pursuant to any management
equity plan or stock </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>38</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">option
plan or any other management or employee benefit plan or agreement, including
any Equity Interests rolled over by management of the Company or any of its
direct or indirect parent companies in connection with the Transactions;
<I>provided</I>, <I>however</I>, that the aggregate Restricted Payments made
under this clause&nbsp;(4) do not exceed in any calendar year $12.5&nbsp;million
(which shall increase to $25.0&nbsp;million subsequent to the consummation of an
underwritten public Equity Offering by the Issuer or any direct or indirect
parent entity of the Issuer) (with unused amounts in any calendar year being
carried over to succeeding calendar years subject to a maximum (without giving
effect to the following proviso) of $50.0&nbsp;million in any calendar year
(which shall increase to $100.0&nbsp;million subsequent to the consummation of
an underwritten public Equity Offering by the Issuer or any direct or indirect
parent corporation of the Issuer)); <I>provided further</I> that such amount in
any calendar year may be increased by an amount not to exceed:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
cash proceeds from the sale of Equity Interests (other than Disqualified Stock)
of the Issuer and, to the extent contributed to the Issuer, Equity Interests of
any of the Issuer&#146;s direct or indirect parent companies, in each case to members
of management, directors or consultants of the Issuer, any of its Subsidiaries
or any of its direct or indirect parent companies that occurs after the Issue
Date to the extent the cash proceeds from the sale of such Equity Interests have
not otherwise been applied to the payment of Restricted Payments by virtue of
clause&nbsp;(3) of the preceding paragraph; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
cash proceeds of key man life insurance policies received by the Issuer or its
Restricted Subsidiaries after the Issue Date; <I>less</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of any Restricted Payments previously made with the cash proceeds
described in clauses (a)&nbsp;and (b)&nbsp;of this clause&nbsp;(4);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">and <I>provided</I>,
<I>further</I>, that cancellation of Indebtedness owing to the Issuer or any
Restricted Subsidiary from members of management of the Issuer, any of the
Issuer&#146;s direct or indirect parent companies or any of the Issuer&#146;s Restricted
Subsidiaries in connection with a repurchase of Equity Interests of the Issuer
or any of its direct or indirect parent companies will not be deemed to
constitute a Restricted Payment for purposes of this covenant or any other
provision of the Senior Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Issuer or any of its Restricted Subsidiaries or any
class or series of Preferred Stock of any Restricted Subsidiary issued in
accordance with the covenant described under &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock&#148; to the
extent such dividends are included in the definition of &#147;Fixed Charges&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a) &nbsp;the
declaration and payment of dividends to holders of any class or series of
Designated Preferred Stock (other than Disqualified Stock) issued by the Issuer
after the Issue Date;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
declaration and payment of dividends to a direct or indirect parent company of
the Issuer, the proceeds of which will be used to fund the payment of dividends
to holders of any class or series of Designated Preferred Stock (other than
Disqualified Stock) of such parent company issued after the Issue Date;
<I>provided</I> that the amount of dividends paid pursuant to this
clause&nbsp;(b) shall not exceed the aggregate amount of cash actually
contributed to the Issuer from the sale of such Designated Preferred Stock;
or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
declaration and payment of dividends on Refunding Capital Stock that is
Preferred Stock in excess of the dividends declarable and payable thereon
pursuant to clause&nbsp;(2) of this paragraph;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I>, <I>however</I>,
in the case of each of (a), (b)&nbsp;and (c)&nbsp;of this clause&nbsp;(6), that
for the most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date of issuance of
such Designated Preferred Stock or the declaration of such dividends on
Refunding Capital Stock that is Preferred Stock, after giving effect to such
issuance or declaration on a <I>pro forma</I> basis, the Issuer and its
Restricted Subsidiaries on a consolidated basis would have had a Fixed Charge
Coverage Ratio of at least 2.00 to 1.00;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>39</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
in Unrestricted Subsidiaries having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause&nbsp;(7) that
are at the time outstanding, without giving effect to the sale of an
Unrestricted Subsidiary to the extent the proceeds of such sale do not consist
of cash or marketable securities, not to exceed $50.0&nbsp;million at the time
of such Investment (with the fair market value of each Investment being measured
at the time made and without giving effect to subsequent changes in value);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">repurchases
of Equity Interests deemed to occur upon exercise of stock options or warrants
if such Equity Interests represent a portion of the exercise price of such
options or warrants;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
declaration and payment of dividends on the Issuer&#146;s common stock (or the
payment of dividends to any direct or indirect parent entity to fund a payment
of dividends on such entity&#146;s common stock), following consummation of the first
public offering of the Issuer&#146;s common stock or the common stock of any of its
direct or indirect parent companies after the Issue Date, of up to 6% per annum
of the net cash proceeds received by or contributed to the Issuer in or from any
such public offering, other than public offerings with respect to the Issuer&#146;s
common stock registered on Form&nbsp;S-8 and other than any public sale
constituting an Excluded Contribution;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Restricted
Payments that are made with Excluded Contributions;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">other
Restricted Payments in an aggregate amount taken together with all other
Restricted Payments made pursuant to this clause&nbsp;(11) not to exceed
$100.0&nbsp;million at the time made;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">distributions
or payments of Receivables Fees;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Restricted Payment made as part of the Transactions and the fees and expenses
related thereto or used to fund amounts owed to Affiliates (including dividends
to any direct or indirect parent of the Issuer to permit payment by such parent
of such amount), in each case to the extent permitted by the covenant described
under &#147;&#151;Transactions with Affiliates&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
repurchase, redemption or other acquisition or retirement for value of any
Subordinated Indebtedness in accordance with the provisions similar to those
described under the captions &#147;Repurchase at the Option of Holders&#151;Change of
Control&#148; and &#147;Repurchase at the Option of Holders&#151;Asset Sales&#148;; <I>provided</I>
that all Senior Notes tendered by Holders in connection with a Change of Control
Offer or Asset Sale Offer, as applicable, have been repurchased, redeemed or
acquired for value;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
declaration and payment of dividends by the Issuer to, or the making of loans
to, any direct or indirect parent in amounts required for any direct or indirect
parent companies to pay, in each case without duplication,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">franchise
and excise taxes and other fees, taxes and expenses required to maintain their
corporate existence;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">foreign,
federal, state and local income taxes, to the extent such income taxes are
attributable to the income of the Issuer and its Restricted Subsidiaries and, to
the extent of the amount actually received from its Unrestricted Subsidiaries,
in amounts required to pay such taxes to the extent attributable to the income
of such Unrestricted Subsidiaries; <I>provided</I> that in each case the amount
of such payments in any fiscal year does not exceed the amount that the Issuer
and its Restricted Subsidiaries would be required to pay in respect of foreign,
federal, state and local taxes for such fiscal year were the Issuer, its
Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent
described above) to pay such taxes separately from any such parent entity;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">customary
salary, bonus and other benefits payable to officers and employees of any direct
or indirect parent company of the Issuer to the extent such salaries, bonuses
and other benefits are attributable to the ownership or operation of the Issuer
and its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>40</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">general
corporate operating and overhead costs and expenses of any direct or indirect
parent company of the Issuer to the extent such costs and expenses are
attributable to the ownership or operation of the Issuer and its Restricted
Subsidiaries; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">fees
and expenses other than to Affiliates of the Issuer related to any unsuccessful
equity or debt offering of such parent entity; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(16)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
redemption for cash of a portion of each Senior Subordinated Note then
outstanding equal to any &#147;Mandatory Principal Redemption Amount&#148; applicable
thereto, to the extent required under the Senior Subordinated Indenture. The
&#147;Mandatory Principal Redemption Amount&#148; means, as of the date of such
redemption, the excess, if any, of (a)&nbsp;the aggregate amount of accrued and
unpaid interest and all accrued and unpaid &#147;original issue discount&#148; (as defined
in Section&nbsp;1273(a)(1) of the Code) with respect to the Senior Subordinated
Notes, over (b)&nbsp;an amount equal to the product of (i)&nbsp;the &#147;issue
price&#148; (as defined in Sections 1273(b) and 1274(a) of the Code) of the Senior
Subordinated Notes multiplied by (ii)&nbsp;the &#147;yield to maturity&#148; (as defined
in the Treasury Regulation Section&nbsp;1.1272-1(b)(1)(i)) of the Senior
Subordinated Notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I>, <I>however</I>,
that at the time of, and after giving effect to, any Restricted Payment
permitted under clause&nbsp;(11), no Default shall have occurred and be
continuing or would occur as a consequence thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">As of the
Issue Date, all of the Issuer&#146;s Subsidiaries will be Restricted Subsidiaries.
The Issuer will not permit any Unrestricted Subsidiary to become a Restricted
Subsidiary except pursuant to the last sentence of the definition of
&#147;Unrestricted Subsidiary.&#148; For purposes of designating any Restricted Subsidiary
as an Unrestricted Subsidiary, all outstanding Investments by the Issuer and its
Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so
designated will be deemed to be Restricted Payments in an amount determined as
set forth in the last sentence of the definition of &#147;Investment.&#148; Such
designation will be permitted only if a Restricted Payment in such amount would
be permitted at such time, whether pursuant to the first paragraph of this
covenant or under clause&nbsp;(7), (10)&nbsp;or (11)&nbsp;of the second
paragraph of this covenant, or pursuant to the definition of &#147;Permitted
Investments,&#148; and if such Subsidiary otherwise meets the definition of an
Unrestricted Subsidiary. Unrestricted Subsidiaries will not be subject to any of
the restrictive covenants set forth in the Senior Indenture.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the foregoing provisions of this covenant, the Issuer will not, and will not
permit any of its Restricted Subsidiaries to, pay any cash dividend or make any
cash distribution on or in respect of the Issuer&#146;s Capital Stock or purchase for
cash or otherwise acquire for cash any Capital Stock of the Issuer or any direct
or indirect parent of the Issuer, for the purpose of paying any cash dividend or
making any cash distribution to, or acquiring Capital Stock of any direct or
indirect parent of the Issuer for cash from, the Investors, or Guarantee any
Indebtedness of any Affiliate of the Issuer for the purpose of paying such
dividend, making such distribution or so acquiring such Capital Stock to or from
the Investors, in each case by means of utilization of the cumulative Restricted
Payment credit provided by the first paragraph of this covenant, or the
exceptions provided by clauses (1), (7)&nbsp;or (11)&nbsp;of the second
paragraph of this covenant or clauses (8)&nbsp;or (13)&nbsp;of the definition of
&#147;Permitted Investments,&#148; unless at the time and after giving effect to such
payment, the Consolidated Leverage Ratio of the Issuer would be equal to or less
than 6.00:1.00.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Limitation
on Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, issue, assume, guarantee or otherwise become directly
or indirectly liable, contingently or otherwise (collectively, &#147;<I>incur</I>&#148;
and collectively, an &#147;<I>incurrence</I>&#148;) with respect to any Indebtedness
(including Acquired Indebtedness), and the Issuer will not issue any shares of
Disqualified Stock and will not permit any Restricted Subsidiary to issue any
shares of Disqualified Stock or Preferred Stock; <I>provided</I>,
<I>however</I>, that the Issuer may incur Indebtedness (including Acquired
Indebtedness) or issue shares of Disqualified Stock, and any of its Restricted
Subsidiaries may incur Indebtedness (including Acquired Indebtedness), issue
shares of Disqualified Stock and issue shares of Preferred Stock, if the Fixed
Charge Coverage Ratio on a consolidated basis for the Issuer and its Restricted
Subsidiaries&#146; most recently ended four fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred or such Disqualified Stock or Preferred
Stock is issued would have been at least 2.00 to 1.00, determined on a <I>pro
forma</I> basis (including a <I>pro forma</I> application of the net proceeds
therefrom), as if the additional Indebtedness had been incurred, or the </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>41</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Disqualified
Stock or Preferred Stock had been issued, as the case may be, and the
application of proceeds therefrom had occurred at the beginning of such
four-quarter period; <I>provided, further,</I> that Restricted Subsidiaries that
are not Guarantors may not incur Indebtedness or Disqualified Stock or Preferred
Stock if, after giving <I>pro forma</I> effect to such incurrence or issuance
(including a <I>pro forma</I> application of the net proceeds therefrom), more
than an aggregate of $250.0&nbsp;million of Indebtedness or Disqualified Stock
or Preferred Stock of Restricted Subsidiaries that are not Guarantors would be
outstanding pursuant to this paragraph and clauses (13)(b), (15)&nbsp;and
(20)&nbsp;below at such time.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The foregoing
limitations will not apply to:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
incurrence of Indebtedness under (x)&nbsp;Credit Facilities (other than the ABL
Facility) by the Issuer or any of its Restricted Subsidiaries and the issuance
and creation of letters of credit and bankers&#146; acceptances thereunder (with
letters of credit and bankers&#146; acceptances being deemed to have a principal
amount equal to the face amount thereof), up to an aggregate principal amount of
$2,625.0&nbsp;million outstanding at any one time and (y)&nbsp;the ABL Facility
by the Issuer or any of its Restricted Subsidiaries and the issuance and
creation of letters of credit and bankers&#146; acceptances thereunder (with letters
of credit and bankers&#146; acceptances being deemed to have a principal amount equal
to the face amount thereof), up to an aggregate principal amount equal to the
ABL Facility Cap;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
incurrence by the Issuer and any Guarantor of Indebtedness represented by the
Senior Notes issued on the Issue Date (including any Guarantee hereof) and the
Senior Exchange Notes and related guarantees of the Senior Exchange Notes to be
issued in exchange for the Senior Notes and the Guarantees pursuant to the
Registration Rights Agreement (other than any Additional Senior Notes and
related guarantees);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
incurrence by the Issuer and any Guarantor of Indebtedness represented by the
Senior Subordinated Notes and related guarantees, as well as any exchange notes
and exchange guarantees to be issued in exchange for the Senior Subordinated
Notes and related guarantees pursuant a registration rights agreement;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of the Issuer and its Restricted Subsidiaries in existence on the Issue Date
(other than Indebtedness described in clauses (1), (2)&nbsp;and (3)&nbsp;of this
paragraph);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
consisting of Capitalized Lease Obligations and Purchase Money Obligations in a
principal amount not to exceed $250.0&nbsp;million (excluding the principal
amount of any Capitalized Lease Obligations or Purchase Money Obligations
relating to the purchase, lease or improvement of the Company&#146;s distribution
centers located in Fulton, Missouri, Indianola, Mississippi and Ardmore,
Oklahoma) in the aggregate at any one time outstanding together with all other
Indebtedness issued under this clause&nbsp;(5); so long as such Indebtedness
exists at the date of such purchase, lease or improvement, or is created within
270&nbsp;days thereafter;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
incurred by the Issuer or any of its Restricted Subsidiaries constituting
reimbursement obligations with respect to letters of credit issued in the
ordinary course of business, including letters of credit in respect of workers&#146;
compensation or employee health claims, or other Indebtedness with respect to
reimbursement-type obligations regarding workers&#146; compensation, or employee
health claims; <I>provided</I>, <I>however</I>, that upon the drawing of such
letters of credit or the incurrence of such Indebtedness, such obligations are
reimbursed within 30&nbsp;days following such drawing or incurrence;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
arising from agreements of the Issuer or its Restricted Subsidiaries providing
for indemnification, adjustment of purchase price or similar obligations, in
each case, incurred or assumed in connection with the disposition of any
business, assets or a Subsidiary, other than guarantees of Indebtedness incurred
by any Person acquiring all or any portion of such business, assets or a
Subsidiary for the purpose of financing such acquisition; <I>provided</I>,
<I>however</I>, that such Indebtedness is not reflected on the balance sheet of
the Issuer, or any of its Restricted Subsidiaries (contingent obligations
referred to in a footnote to financial statements and not otherwise reflected on
the balance sheet will not be deemed to be reflected on such balance sheet for
purposes of this clause&nbsp;(7));</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>42</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of the Issuer to a Restricted Subsidiary; <I>provided</I> that any such
Indebtedness owing to a Restricted Subsidiary that is not a Guarantor is
expressly subordinated in right of payment to the Senior Notes; <I>provided</I>,
<I>further</I>, that any subsequent issuance or transfer of any Capital Stock or
any other event which results in any Restricted Subsidiary ceasing to be a
Restricted Subsidiary or any other subsequent transfer of any such Indebtedness
(except to the Issuer or another Restricted Subsidiary) shall be deemed, in each
case, to be an incurrence of such Indebtedness not permitted by this
clause&nbsp;(8);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of a Restricted Subsidiary to the Issuer or another Restricted Subsidiary;
<I>provided</I> that if a Guarantor issues such Indebtedness to a Restricted
Subsidiary that is not a Guarantor (other than to any Restricted Subsidiary
engaged in the insurance business in order to provide insurance to the Issuer
and its Subsidiaries), such Indebtedness is expressly subordinated in right of
payment to the Guarantee of the Senior Notes of such Guarantor; <I>provided</I>,
<I>further</I>, that any subsequent issuance or transfer of any Capital Stock or
any other event which results in any such Restricted Subsidiary ceasing to be a
Restricted Subsidiary or any other subsequent transfer of any such Indebtedness
(except to the Issuer or another Restricted Subsidiary) shall be deemed, in each
case, to be an incurrence of such Indebtedness not permitted by this
clause&nbsp;(9);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">shares of
Preferred Stock of a Restricted Subsidiary issued to the Issuer or another
Restricted Subsidiary; <I>provided</I> that any subsequent issuance or transfer
of any Capital Stock or any other event which results in any such Restricted
Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent
transfer of any such shares of Preferred Stock (except to the Issuer or another
of its Restricted Subsidiaries) shall be deemed in each case to be an issuance
of such shares of Preferred Stock not permitted by this clause&nbsp;(10);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Hedging
Obligations (excluding Hedging Obligations entered into for speculative
purposes) for the purpose of limiting interest rate risk with respect to any
Indebtedness permitted to be incurred pursuant to &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148; exchange
rate risk or commodity pricing risk;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">obligations
in respect of performance, bid, appeal and surety bonds and completion
guarantees provided by the Issuer or any of its Restricted Subsidiaries in the
ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a)
Indebtedness or Disqualified Stock of the Issuer and Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or any Restricted Subsidiary equal to
100.0% of the net cash proceeds received by the Issuer since immediately after
the Issue Date from the issue or sale of Equity Interests of the Issuer or cash
contributed to the capital of the Issuer (in each case, other than Excluded
Contributions or proceeds of Disqualified Stock or sales of Equity Interests to
the Issuer or any of its Subsidiaries) as determined in accordance with clauses
(3)(b) and (3)(c) of the first paragraph of &#147;&#151;Limitation on Restricted Payments&#148;
to the extent such net cash proceeds or cash have not been applied pursuant to
such clauses to make Restricted Payments or to make other Investments, payments
or exchanges pursuant to the second paragraph of &#147;&#151;Limitation on Restricted
Payments&#148; or to make Permitted Investments (other than Permitted Investments
specified in clauses (1)&nbsp;and (3)&nbsp;of the definition thereof) and
(b)&nbsp;Indebtedness or Disqualified Stock of Issuer and Indebtedness,
Disqualified Stock or Preferred Stock of the Issuer or any Restricted Subsidiary
not otherwise permitted hereunder in an aggregate principal amount or
liquidation preference, which when aggregated with the principal amount and
liquidation preference of all other Indebtedness, Disqualified Stock and
Preferred Stock then outstanding and incurred pursuant to this
clause&nbsp;(13)(b), does not at any one time outstanding exceed
$250.0&nbsp;million; <I>provided</I>, <I>however</I> that on a <I>pro forma
basis</I>, together with any amounts incurred and outstanding by Restricted
Subsidiaries that are not Guarantors pursuant to the second proviso to the first
paragraph of this covenant and clauses (15)&nbsp;and (20), no more than
$250.0&nbsp;million of Indebtedness, Disqualified Stock or Preferred Stock at
any one time outstanding and incurred pursuant to this clause&nbsp;(13)(b) shall
be incurred by Restricted Subsidiaries that are not Guarantors (it being
understood that any Indebtedness, Disqualified Stock or Preferred Stock incurred
pursuant to this clause&nbsp;(13)(b) shall cease to be deemed incurred or
outstanding for purposes of this clause&nbsp;(13)(b) but shall be deemed
incurred for the purposes of the first paragraph of this covenant from and after
the first date on which the Issuer or such Restricted Subsidiary could have
incurred such Indebtedness, Disqualified Stock or Preferred Stock under the
first paragraph of this covenant without reliance on this
clause&nbsp;(13)(b));</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
incurrence or issuance by the Issuer or any Restricted Subsidiary of
Indebtedness, Disqualified Stock or Preferred Stock which serves to refund or
refinance any Indebtedness, Disqualified Stock or Preferred </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>43</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Stock
of the Issuer or any Restricted Subsidiary incurred as permitted under the first
paragraph of this covenant and clauses (2), (3), (4), (5)&nbsp;and (13)(a)
above, this clause&nbsp;(14) and clause&nbsp;(15) below or any Indebtedness,
Disqualified Stock or Preferred Stock of the Issuer or any Restricted Subsidiary
issued to so refund or refinance such Indebtedness, Disqualified Stock or
Preferred Stock of the Issuer or any Restricted Subsidiary including additional
Indebtedness, Disqualified Stock or Preferred Stock incurred to pay premiums
(including reasonable tender premiums), defeasance costs and fees in connection
therewith (the &#147;<I>Refinancing Indebtedness</I>&#148;) prior to its respective
maturity; <I>provided</I>, <I>however</I>, that such Refinancing
Indebtedness:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">has
a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is
incurred which is not less than the remaining Weighted Average Life to Maturity
of the Indebtedness, Disqualified Stock or Preferred Stock being refunded or
refinanced,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
the extent such Refinancing Indebtedness refinances (i)&nbsp;Indebtedness
subordinated or <I>pari passu</I> to the Senior Notes or any Guarantee thereof,
such Refinancing Indebtedness is subordinated or <I>pari passu</I> to the Senior
Notes or the Guarantee at least to the same extent as the Indebtedness being
refinanced or refunded or (ii)&nbsp;Disqualified Stock or Preferred Stock, such
Refinancing Indebtedness must be Disqualified Stock or Preferred Stock,
respectively, and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">shall
not include Indebtedness, Disqualified Stock or Preferred Stock of a Subsidiary
of the Issuer that is not a Guarantor that refinances Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or a Guarantor;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">and <I>provided further</I> that
subclause (a)&nbsp;of this clause&nbsp;(14) will not apply to any refunding or
refinancing of any Indebtedness outstanding under a Credit Facility;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness,
Disqualified Stock or Preferred Stock of (x)&nbsp;the Issuer or a Restricted
Subsidiary incurred to finance an acquisition of any Person or assets or
(y)&nbsp;Persons that are acquired by the Issuer or any Restricted Subsidiary or
merged into the Issuer or a Restricted Subsidiary in accordance with the terms
of the Senior Indenture; <I>provided</I> that after giving effect to such
acquisition or merger, either:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in the first sentence
of this covenant, or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Fixed Charge Coverage Ratio of the Issuer and the Restricted Subsidiaries is
greater than immediately prior to such acquisition or merger;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I>, <I>however</I>
that on a <I>pro forma</I> basis, together with amounts incurred and outstanding
pursuant to the second proviso to the first paragraph of this covenant and
clauses (13)(b) and (20), no more than $250.0&nbsp;million of Indebtedness,
Disqualified Stock or Preferred Stock at any one time outstanding and incurred
by Restricted Subsidiaries that are not Guarantors pursuant to this
clause&nbsp;(15) shall be incurred and outstanding;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(16)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument drawn against insufficient funds in the ordinary
course of business; <I>provided</I> that such Indebtedness is extinguished
within two Business Days of its incurrence;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(17)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of the Issuer or any of its Restricted Subsidiaries supported by a letter of
credit issued pursuant to any Credit Facilities, in a principal amount not in
excess of the stated amount of such letter of credit;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(18)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a) any
guarantee by the Issuer or a Restricted Subsidiary of Indebtedness or other
Obligations of any Restricted Subsidiary, so long as the incurrence of such
Indebtedness incurred by such Restricted Subsidiary is permitted under the terms
of the Senior Indenture, or (b)&nbsp;any guarantee by a Restricted Subsidiary of
Indebtedness of the Issuer permitted to be incurred under the terms of the
Senior Indenture; <I>provided</I> that such guarantee is incurred in accordance
with the covenant described below under &#147;&#151;Limitation on Guarantees of
Indebtedness by Restricted Subsidiaries&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>44</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(19)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of Foreign Subsidiaries of the Issuer in an amount not to exceed at any one time
outstanding and together with any other Indebtedness incurred under this
clause&nbsp;(19) 5.0% of the Total Assets of the Foreign Subsidiaries (it being
understood that any Indebtedness incurred pursuant to this clause&nbsp;(19)
shall cease to be deemed incurred or outstanding for purposes of this
clause&nbsp;(19) but shall be deemed incurred for the purposes of the first
paragraph of this covenant from and after the first date on which the Issuer or
such Restricted Subsidiaries could have incurred such Indebtedness under the
first paragraph of this covenant without reliance on this clause&nbsp;(19));</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(20)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness,
Disqualified Stock or Preferred Stock of a Restricted Subsidiary incurred to
finance or assumed in connection with an acquisition in a principal amount not
to exceed $100.0&nbsp;million in the aggregate at any one time outstanding
together with all other Indebtedness, Disqualified Stock and/or Preferred Stock
issued under this clause&nbsp;(20) (it being understood that any Indebtedness,
Disqualified Stock or Preferred Stock incurred pursuant to this clause&nbsp;(20)
shall cease to be deemed incurred or outstanding for purposes of this
clause&nbsp;(20) but shall be deemed incurred for the purposes of the first
paragraph of this covenant from and after the first date on which such
Restricted Subsidiary could have incurred such Indebtedness, Disqualified Stock
or Preferred Stock under the first paragraph of this covenant without reliance
on this clause&nbsp;(20)); <I>provided, however</I>, that, on a <I>pro forma</I>
basis, together with amounts incurred and outstanding by Restricted Subsidiaries
that are not Guarantors pursuant to the second proviso to the first paragraph of
this covenant and clauses (13)(b) and (15), no more than $250.0&nbsp;million of
Indebtedness would be incurred and outstanding by Restricted Subsidiaries that
are not Guarantors;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(21)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of the Issuer or any of its Restricted Subsidiaries consisting of (i)&nbsp;the
financing of insurance premiums or (ii)&nbsp;take-or-pay obligations contained
in supply arrangements, in each case, incurred in the ordinary course of
business; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(22)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
consisting of Indebtedness issued by the Issuer or any of its Restricted
Subsidiaries to current or former officers, directors and employees thereof,
their respective estates, spouses or former spouses, in each case to finance the
purchase or redemption of Equity Interests of the Issuer or any direct or
indirect parent company of the Issuer to the extent described in clause&nbsp;(4)
of the second paragraph under the caption &#147;&#151;Limitation on Restricted
Payments.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of determining compliance with this covenant:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the event
that an item of Indebtedness, Disqualified Stock or Preferred Stock (or any
portion thereof) meets the criteria of more than one of the categories of
permitted Indebtedness, Disqualified Stock or Preferred Stock described in
clauses (1)&nbsp;through (22)&nbsp;above or is entitled to be incurred pursuant
to the first paragraph of this covenant, the Issuer, in its sole discretion,
will classify or reclassify such item of Indebtedness, Disqualified Stock or
Preferred Stock (or any portion thereof) and will only be required to include
the amount and type of such Indebtedness, Disqualified Stock or Preferred Stock
in one of the above clauses; <I>provided</I> that all Indebtedness outstanding
under the Credit Facilities on the Issue Date will be treated as incurred on the
Issue Date under clause&nbsp;(1) of the preceding paragraph; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">at the time
of incurrence, the Issuer will be entitled to divide and classify an item of
Indebtedness in more than one of the types of Indebtedness described in the
first and second paragraphs above.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Accrual of
interest, the accretion of accreted value and the payment of interest in the
form of additional Indebtedness, Disqualified Stock or Preferred Stock will not
be deemed to be an incurrence of Indebtedness, Disqualified Stock or Preferred
Stock for purposes of this covenant.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the
relevant currency exchange rate in effect on the date such Indebtedness was
incurred, in the case of term debt, or first committed, in the case of revolving
credit debt; <I>provided</I> that if such Indebtedness is incurred to refinance
other Indebtedness denominated in a foreign currency, and such refinancing would
cause the applicable U.S. dollar-denominated restriction to be exceeded if
calculated at the relevant currency exchange rate in effect on the date of such
refinancing, such U.S. dollar-denominated restriction shall be deemed not to
have been </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>45</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">exceeded
so long as the principal amount of such refinancing Indebtedness does not exceed
the principal amount of such Indebtedness being refinanced.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The principal
amount of any Indebtedness incurred to refinance other Indebtedness, if incurred
in a different currency from the Indebtedness being refinanced, shall be
calculated based on the currency exchange rate applicable to the currencies in
which such respective Indebtedness is denominated that is in effect on the date
of such refinancing.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture provides that the Issuer will not, and will not permit any Guarantor
to, directly or indirectly, incur any Indebtedness (including Acquired
Indebtedness) that is subordinated or junior in right of payment to any
Indebtedness of the Issuer or such Guarantor, as the case may be, unless such
Indebtedness is expressly subordinated in right of payment to the Senior Notes
or such Guarantor&#146;s Guarantee to the extent and in the same manner as such
Indebtedness is subordinated to other Indebtedness of the Issuer or such
Guarantor, as the case may be; <I>provided</I> that this sentence shall not
apply to Indebtedness incurred under clause (1) of the second paragraph of this
covenant.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture will not treat (1)&nbsp;unsecured Indebtedness as subordinated or
junior to Secured Indebtedness merely because it is unsecured or (2)&nbsp;Senior
Indebtedness as subordinated or junior to any other Senior Indebtedness merely
because it has a junior priority with respect to the same collateral.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Liens</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any Guarantor to, directly or indirectly, create,
incur, assume or suffer to exist any Lien (except Permitted Liens) that secures
obligations under any Indebtedness or any related Guarantee, on any asset or
property of the Issuer or any Guarantor now owned or hereafter acquired, or any
income or profits therefrom, or assign or convey any right to receive income
therefrom, unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of Liens securing Subordinated Indebtedness, the Senior Notes and related
Guarantees are secured by a Lien on such property, assets or proceeds that is
senior in priority to such Liens; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in all other
cases, the Senior Notes or the Guarantees are equally and ratably secured or are
secured by a Lien on such property, assets or proceeds that is senior in
priority to such Liens;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">except that the foregoing shall
not apply to (a)&nbsp;Liens securing Indebtedness permitted to be incurred under
Credit Facilities, including any letter of credit relating thereto, that was
permitted by the terms of the Senior Indenture to be incurred pursuant to
clause&nbsp;(1) of the second paragraph under &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock&#148; and
(b)&nbsp;Liens incurred to secure Obligations in respect of any Indebtedness
permitted to be incurred pursuant to the covenant described above under
&#147;&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock&#148;; <I>provided</I> that, with respect to Liens securing
Obligations permitted under this subclause&nbsp;(b), at the time of incurrence
and after giving pro&nbsp;forma effect thereto, the Consolidated Secured Debt
Ratio would be no greater than&nbsp;3.25 to&nbsp;1.0. Any Lien which is granted
to secure the Senior Notes under this covenant shall be discharged at the same
time as the discharge of the Lien (other than through the exercise of remedies
with respect thereto) that gave rise to the obligation to so secure the
Senior&nbsp;Notes.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Merger,
Consolidation or Sale of All or Substantially All Assets</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
may not consolidate or merge with or into or wind up into (whether or not the
Issuer is the surviving corporation), or sell, assign, transfer, lease, convey
or otherwise dispose of all or substantially all of its properties or assets, in
one or more related transactions, to any Person unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer is
the surviving corporation or the Person formed by or surviving any such
consolidation or merger (if other than the Issuer) or to which such sale,
assignment, transfer, lease, conveyance or other disposition will have been made
is a corporation organized or existing under the laws of the jurisdiction of
</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>46</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">organization
of the Issuer or the laws of the United States, any state thereof, the District
of Columbia, or any territory thereof (such Person, as the case may be, being
herein called the &#147;<I>Successor Company</I>&#148;);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Successor
Company, if other than the Issuer, expressly assumes all the obligations of the
Issuer under the Senior Notes and the Senior Indenture pursuant to supplemental
indentures or other documents or instruments in form reasonably satisfactory to
the Trustee;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">immediately
after such transaction, no Default exists;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">immediately
after giving <I>pro forma</I> effect to such transaction and any related
financing transactions, as if such transactions had occurred at the beginning of
the applicable four-quarter period,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Successor Company would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the
first sentence of the covenant described under &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Fixed Charge Coverage Ratio for the Successor Company, the Issuer and its
Restricted Subsidiaries would be greater than such ratio for the Issuer and its
Restricted Subsidiaries immediately prior to such transaction;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">each
Guarantor, unless it is the other party to the transactions described above, in
which case clause&nbsp;(b) of the second succeeding paragraph shall apply, shall
have by supplemental indenture confirmed that its Guarantee shall apply to such
Person&#146;s obligations under the Senior Indenture, the Senior Notes and the
Registration Rights Agreement; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
shall have delivered to the Trustee an Officer&#146;s Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such
supplemental indentures, if any, comply with the Senior Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Successor
Company will succeed to, and be substituted for the Issuer, as the case may be,
under the Senior Indenture, the Guarantees and the Senior Notes, as applicable.
Notwithstanding the foregoing clauses (3)&nbsp;and (4),</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Restricted Subsidiary may consolidate with or merge into or transfer all or part
of its properties and assets to the Issuer, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
may merge with an Affiliate of the Issuer, as the case may be, solely for the
purpose of reincorporating the Issuer in a State of the United States or any
state thereof, the District of Columbia or any territory thereof so long as the
amount of Indebtedness of the Issuer and its Restricted Subsidiaries is not
increased thereby.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Subject to
certain limitations described in the Senior Indenture governing release of a
Guarantee upon the sale, disposition or transfer of a Guarantor, no Guarantor
will, and the Issuer will not permit any Guarantor to, consolidate or merge with
or into or wind up into (whether or not the Issuer or Guarantor is the surviving
corporation), or sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of its properties or assets, in one or more related
transactions, to any Person unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a) such
Guarantor is the surviving corporation or the Person formed by or surviving any
such consolidation or merger (if other than such Guarantor) or to which such
sale, assignment, transfer, lease, conveyance or other disposition will have
been made is a corporation, partnership, limited partnership, limited liability
corporation or trust organized or existing under the laws of the jurisdiction of
organization of such Guarantor, as the case may be, or the laws of the United
States, any state thereof, the District of Columbia, or any territory thereof
(such Guarantor or such Person, as the case may be, being herein called the
&#147;<I>Successor Person</I>&#148;);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>47</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Successor Person, if other than such Guarantor, expressly assumes all the
obligations of such Guarantor under the Senior Indenture and such Guarantor&#146;s
related Guarantee pursuant to supplemental indentures or other documents or
instruments in form reasonably satisfactory to the Trustee;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">immediately
after such transaction, no Default exists; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer shall have delivered to the Trustee an Officer&#146;s Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and
such supplemental indentures, if any, comply with the Senior Indenture; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
transaction is made in compliance with the covenant described under &#147;Repurchase
at the Option of Holders&#151;Asset Sales.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Subject to
certain limitations described in the Senior Indenture, the Successor Person will
succeed to, and be substituted for, such Guarantor under the Senior Indenture
and such Guarantor&#146;s Guarantee. Notwithstanding the foregoing, any Guarantor may
(i)&nbsp;merge into or transfer all or part of its properties and assets to
another Guarantor or the Issuer, (ii)&nbsp;merge with an Affiliate of the Issuer
solely for the purpose of reincorporating the Guarantor in the United States,
any state thereof, the District of Columbia or any territory thereof or
(iii)&nbsp;convert into a corporation, partnership, limited partnership, limited
liability corporation or trust organized or existing under the laws of the
jurisdiction of organization of such Guarantor.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Transactions
with Affiliates</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, make any
payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate of the Issuer
(each of the foregoing, an &#147;<I>Affiliate Transaction</I>&#148;) involving aggregate
payments or consideration in excess of $15.0&nbsp;million, unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Affiliate Transaction is on terms that are not materially less favorable to the
Issuer or its relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Issuer or such Restricted Subsidiary
with an unrelated Person on an arm&#146;s-length basis; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
delivers to the Trustee with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate payments or consideration in
excess of $25.0&nbsp;million, a resolution adopted by the majority of the board
of directors of the Issuer approving such Affiliate Transaction and set forth in
an Officer&#146;s Certificate certifying that such Affiliate Transaction complies
with clause&nbsp;(1) above.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The foregoing
provisions will not apply to the following:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">transactions
between or among the Issuer or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Restricted
Payments permitted by the provisions of the Senior Indenture described above
under the covenant &#147;&#151;Limitation on Restricted Payments&#148; and the definition of
&#147;Permitted Investments&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the payment
of management, consulting, monitoring and advisory fees and related expenses to
the Investors pursuant to the Sponsor Management Agreement (plus any unpaid
management, consulting, monitoring and advisory fees and related expenses
accrued in any prior year) and the termination fees pursuant to the Sponsor
Management Agreement, in each case as in effect on the Issue Date, or any
amendment thereto (so long as any such amendment is not disadvantageous in the
good faith judgment of the board of directors of the Issuer to the Holders when
taken as a whole as compared to the Sponsor Management Agreement in effect on
the Issue Date);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the payment
of reasonable and customary fees paid to, and indemnities provided for the
benefit of, officers, directors, employees or consultants of Issuer, any of its
direct or indirect parent companies or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>48</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">transactions
in which the Issuer or any of its Restricted Subsidiaries, as the case may be,
delivers to the Trustee a letter from an Independent Financial Advisor stating
that such transaction is fair to the Issuer or such Restricted Subsidiary from a
financial point of view or stating that the terms are not materially less
favorable to the Issuer or its relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Issuer or such
Restricted Subsidiary with an unrelated Person on an arm&#146;s-length basis;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any agreement
as in effect as of the Issue Date, or any amendment thereto (so long as any such
amendment is not disadvantageous to the Holders when taken as a whole as
compared to the applicable agreement as in effect on the Issue Date in the
reasonable determination of the Issuer);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the existence
of, or the performance by the Issuer or any of its Restricted Subsidiaries of
its obligations under the terms of, any stockholders agreement (including any
registration rights agreement or purchase agreement related thereto) to which it
is a party as of the Issue Date and any similar agreements which it may enter
into thereafter; <I>provided</I>, <I>however</I>, that the existence of, or the
performance by the Issuer or any of its Restricted Subsidiaries of obligations
under any future amendment to any such existing agreement or under any similar
agreement entered into after the Issue Date shall only be permitted by this
clause&nbsp;(7) to the extent that the terms of any such amendment or new
agreement are not otherwise disadvantageous to the Holders when taken as a whole
in the reasonable determination of the Issuer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Transactions and the payment of all fees and expenses related to the
Transactions, in each case as disclosed in the offering documentation relating
to the outstanding notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">transactions
with customers, clients, suppliers, or purchasers or sellers of goods or
services, in each case in the ordinary course of business and otherwise in
compliance with the terms of the Senior Indenture which are fair to the Issuer
and its Restricted Subsidiaries, in the reasonable determination of the board of
directors of the Issuer or the senior management thereof, or are on terms at
least as favorable as might reasonably have been obtained at such time from an
unaffiliated party;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the issuance
of Equity Interests (other than Disqualified Stock) of the Issuer to any
Permitted Holder or to any director, officer, employee or consultant;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">sales of
accounts receivable, or participations therein, in connection with the ABL
Facility and any Receivables Facility;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">payments by
the Issuer or any of its Restricted Subsidiaries to any of the Investors made
for any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including, without limitation,
in connection with acquisitions or divestitures, which payments are approved by
a majority of the board of directors of the Issuer in good faith;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">payments or
loans (or cancellation of loans) to employees or consultants of the Issuer, any
of its direct or indirect parent companies or any of its Restricted Subsidiaries
and employment agreements, stock option plans and other similar arrangements
with such employees or consultants which, in each case, are approved by the
Issuer in good faith;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">investments
by the Investors in securities of the Issuer or any of its Restricted
Subsidiaries so long as (i)&nbsp;the investment is being offered generally to
other investors on the same or more favorable terms and (ii)&nbsp;the investment
constitutes less than 5.0% of the proposed or outstanding issue amount of such
class of securities;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">payments to
or from, and transactions with, any joint ventures in the ordinary course of
business; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(16)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">payments by
the Issuer (and any direct or indirect parent thereof) and its Subsidiaries
pursuant to tax sharing agreements among the Issuer (and any such parent) and
its Subsidiaries on customary terms to the extent attributable to the ownership
or operation of the Issuer and its Subsidiaries; <I>provided</I> that in each
case the amount of such payments in any fiscal year does not exceed the amount
that the Issuer, its Restricted Subsidiaries and its </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>49</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Unrestricted
Subsidiaries (to the extent of amounts received from Unrestricted Subsidiaries)
would be required to pay in respect of foreign, federal, state and local taxes
for such fiscal year were the Issuer and its Restricted Subsidiaries (to the
extent described above) to pay such taxes separately from any such parent
entity.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Dividend
and Other Payment Restrictions Affecting Restricted Subsidiaries</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any of its Restricted Subsidiaries that are not
Guarantors to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any consensual encumbrance or consensual restriction
on the ability of any such Restricted Subsidiary to:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a) pay
dividends or make any other distributions to the Issuer or any of its Restricted
Subsidiaries on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits, or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">pay
any Indebtedness owed to the Issuer or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make loans or
advances to the Issuer or any of its Restricted Subsidiaries; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">sell, lease
or transfer any of its properties or assets to the Issuer or any of its
Restricted Subsidiaries,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">except (in each case) for such
encumbrances or restrictions existing under or by reason of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">contractual
encumbrances or restrictions in effect on the Issue Date, including pursuant to
the Senior Credit Facilities and the related documentation;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Senior Indenture, the Senior Notes, the Senior Subordinated Indenture and the
Senior Subordinated Notes;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">purchase
money obligations for property acquired in the ordinary course of business that
impose restrictions of the nature discussed in clause&nbsp;(3) above on the
property so acquired;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">applicable
law or any applicable rule, regulation or order;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
agreement or other instrument of a Person acquired by the Issuer or any
Restricted Subsidiary in existence at the time of such acquisition (but not
created in connection therewith or in contemplation thereof), which encumbrance
or restriction is not applicable to any Person, or the properties or assets of
any Person, other than the Person and its Subsidiaries, or the property or
assets of the Person and its Subsidiaries, so acquired;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(f)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">contracts
for the sale of assets, including customary restrictions with respect to a
Subsidiary of the Issuer pursuant to an agreement that has been entered into for
the sale or disposition of all or substantially all of the Capital Stock or
assets of such Subsidiary;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(g)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Secured
Indebtedness that limits the right of the debtor to dispose of the assets
securing such Indebtedness that is otherwise permitted to be incurred pursuant
to the covenants described under &#147;&#151;Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock&#148; and &#147;&#151;Liens&#148;;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(h)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">restrictions
on cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">other
Indebtedness, Disqualified Stock or Preferred Stock of Foreign Subsidiaries
permitted to be incurred subsequent to the Issue Date pursuant to the provisions
of the covenant described under &#147;&#151;Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>50</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(j)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">customary
provisions in joint venture agreements and other agreements or arrangements
relating solely to such joint venture;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(k)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">customary
provisions contained in leases or licenses of intellectual property and other
agreements, in each case entered into in the ordinary course of business;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(l)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
encumbrances or restrictions of the type referred to in clauses (1),
(2)&nbsp;and (3)&nbsp;above imposed by any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings of the contracts, instruments or obligations referred to in clauses
(a)&nbsp;through (k)&nbsp;above; <I>provided</I> that such amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are, in the good faith judgment of the Issuer, no
more restrictive with respect to such encumbrance and other restrictions taken
as a whole than those prior to such amendment, modification, restatement,
renewal, increase, supplement, refunding, replacement or refinancing; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(m)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">restrictions
created in connection with any Receivables Facility that, in the good faith
determination of the Issuer, are necessary or advisable to effect the
transactions contemplated under such Receivables Facility.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Limitation
on Guarantees of Indebtedness by Restricted Subsidiaries</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not permit any of its Wholly-Owned Subsidiaries that are Restricted
Subsidiaries (and non-Wholly-Owned Subsidiaries if such non-Wholly-Owned
Subsidiaries guarantee other capital markets debt securities of the Issuer or
any Guarantor), other than a Guarantor, a Foreign Subsidiary or a Receivables
Subsidiary, to guarantee the payment of any Indebtedness of the Issuer or any
other Guarantor unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Restricted Subsidiary within 30&nbsp;days executes and delivers a supplemental
indenture to the Senior Indenture providing for a Guarantee by such Restricted
Subsidiary, except that with respect to a guarantee of Indebtedness of the
Issuer or any Guarantor:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">if
the Senior Notes or such Guarantor&#146;s Guarantee are subordinated in right of
payment to such Indebtedness, the Guarantee under the supplemental indenture
shall be subordinated to such Restricted Subsidiary&#146;s guarantee with respect to
such Indebtedness substantially to the same extent as the Senior Notes are
subordinated to such Indebtedness; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">if
such Indebtedness is by its express terms subordinated in right of payment to
the Senior Notes or such Guarantor&#146;s Guarantee, any such guarantee by such
Restricted Subsidiary with respect to such Indebtedness shall be subordinated in
right of payment to such Guarantee substantially to the same extent as such
Indebtedness is subordinated to the Senior Notes; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Restricted Subsidiary waives, and will not in any manner whatsoever claim or
take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Issuer or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its
Guarantee;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I> that this
covenant shall not be applicable to (i)&nbsp;any guarantee of any Restricted
Subsidiary that existed at the time such Person became a Restricted Subsidiary
and was not incurred in connection with, or in contemplation of, such Person
becoming a Restricted Subsidiary and (ii)&nbsp;guarantees of any Receivables
Facility by any Receivables Subsidiary.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Reports
and Other Information</I></B></P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
that the Issuer may not be subject to the reporting requirements of
Section&nbsp;13 or 15(d) of the Exchange Act or otherwise report on an annual
and quarterly basis on forms provided for such annual and quarterly reporting
pursuant to rules and regulations promulgated by the SEC, the Senior Indenture
will require the </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>51</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Issuer
to file with the SEC (and make available to the Trustee and Holders (without
exhibits), without cost to any Holder, within 15&nbsp;days after it files with
the SEC) from and after the Issue Date,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">within
90&nbsp;days (or any other time period then in effect under the rules and
regulations of the Exchange Act with respect to the filing of a Form&nbsp;10-K
by a non-accelerated filer) after the end of each fiscal year, annual reports on
Form&nbsp;10-K, or any successor or comparable form, containing the information
required to be contained therein, or required in such successor or comparable
form;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">within
45&nbsp;days after the end of each of the first three fiscal quarters of each
fiscal year, reports on Form&nbsp;10-Q containing all information that would be
required to be contained in Form&nbsp;10-Q, or any successor or comparable
form;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">promptly from
time to time after the occurrence of an event required to be therein reported,
such other reports on Form&nbsp;8-K, or any successor or comparable form;
and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any other
information, documents and other reports which the Issuer would be required to
file with the SEC if it were subject to Section&nbsp;13 or 15(d) of the Exchange
Act;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">in each case in a manner that
complies in all material respects with the requirements specified in such form;
<I>provided</I> that the Issuer shall not be so obligated to file such reports
with the SEC if the SEC does not permit such filing, in which event the Issuer
will make available such information to prospective purchasers of Senior Notes,
in addition to providing such information to the Trustee and the Holders, in
each case within 15&nbsp;days after the time the Issuer would be required to
file such information with the SEC if it were subject to Section&nbsp;13 or
15(d) of the Exchange Act. In addition, to the extent not satisfied by the
foregoing, the Issuer will agree that, for so long as any Senior Notes are
outstanding, it will furnish to Holders and to securities analysts and
prospective investors, upon their request, the information required to be
delivered pursuant to Rule&nbsp;144A(d)(4) under the Securities Act.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In the event
that any direct or indirect parent company of the Issuer becomes a Guarantor of
the Senior Notes, the Senior Indenture will permit the Issuer to satisfy its
obligations in this covenant with respect to financial information relating to
the Issuer by furnishing financial information relating to such parent;
<I>provided</I> that the same is accompanied by consolidating information that
explains in reasonable detail the differences between the information relating
to such parent, on the one hand, and the information relating to the Issuer and
its Restricted Subsidiaries on a standalone basis, on the other hand.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the foregoing, such requirements shall be deemed satisfied prior to the
commencement of the exchange offer or the effectiveness of the shelf
registration statement described in the Registration Rights Agreement
(1)&nbsp;by the filing with the SEC of the exchange offer registration statement
or shelf registration statement (or any other similar registration statement),
and any amendments thereto, with such financial information that satisfies
Regulation&nbsp;S-X, subject to exceptions consistent with the presentation of
financial information in the offering documentation relating to the outstanding
notes, to the extent filed within the times specified above, or (2)&nbsp;by
posting reports that would be required to be filed substantially in the form
required by the SEC on the Issuer&#146;s website (or that of any of its parent
companies) or providing such reports to the Trustee within 15&nbsp;days after
the time the Issuer would be required to file such information with the SEC if
it were subject to Section&nbsp;13 or 15(d) of the Exchange Act, the financial
information (including a &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; section) that would be required to be
included in such reports, subject to exceptions consistent with the presentation
of financial information in the offering documentation relating to the
outstanding notes, to the extent filed within the times specified above.
Notwithstanding anything herein to the contrary, the Issuer will not be deemed
to have failed to comply with any of its agreements set forth under this
covenant for purposes of clause&nbsp;(3) under &#147;Events of Default and Remedies&#148;
until 120&nbsp;days after the date any report is required to be filed with the
SEC (or posted on the Issuer&#146;s website or provided to the Trustee) pursuant to
this covenant.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>52</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><B>Events
of Default and Remedies</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture provides that each of the following is an &#147;<I>Event of
Default</I>&#148;:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">default in
payment when due and payable, upon redemption, acceleration or otherwise, of
principal of, or premium, if any, on the Senior Notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">default for
30&nbsp;days or more in the payment when due of interest or Special Interest on
or with respect to the Senior Notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">failure by
the Issuer or any Guarantor for 60&nbsp;days after receipt of written notice
given by the Trustee or the Holders of not less 30% in principal amount of the
Senior Notes then outstanding under the Senior Indenture to comply with any of
its obligations, covenants or agreements (other than a default referred to in
clauses (1)&nbsp;and (2)&nbsp;above) contained in the Senior Indenture or the
Senior Notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">default under
any mortgage, indenture or instrument under which there is issued or by which
there is secured or evidenced any Indebtedness for money borrowed by the Issuer
or any of its Restricted Subsidiaries or the payment of which is guaranteed by
the Issuer or any of its Restricted Subsidiaries, other than Indebtedness owed
to the Issuer or a Restricted Subsidiary, whether such Indebtedness or guarantee
now exists or is created after the issuance of the Senior Notes, if both:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
default either results from the failure to pay any principal of such
Indebtedness at its stated final maturity (after giving effect to any applicable
grace periods) or relates to an obligation other than the obligation to pay
principal of any such Indebtedness at its stated final maturity and results in
the holder or holders of such Indebtedness causing such Indebtedness to become
due prior to its stated maturity; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
principal amount of such Indebtedness, together with the principal amount of any
other such Indebtedness in default for failure to pay principal at stated final
maturity (after giving effect to any applicable grace periods), or the maturity
of which has been so accelerated, aggregate $50.0&nbsp;million or more at any
one time outstanding;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">failure by
the Issuer or any Significant Subsidiary (or group of Subsidiaries that together
would constitute a Significant Subsidiary) to pay final judgments aggregating in
excess of $50.0&nbsp;million, which final judgments remain unpaid, undischarged
and unstayed for a period of more than 60&nbsp;days after such judgment becomes
final, and in the event such judgment is covered by insurance, an enforcement
proceeding has been commenced by any creditor upon such judgment or decree which
is not promptly stayed;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">certain
events of bankruptcy or insolvency with respect to the Issuer or any Significant
Subsidiary (or group of Subsidiaries that together would constitute a
Significant Subsidiary); or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Guarantee
of any Significant Subsidiary (or group of Subsidiaries that together would
constitute a Significant Subsidiary) shall for any reason cease to be in full
force and effect or be declared null and void or any responsible officer (or the
responsible officers of any group of Subsidiaries that together would constitute
a Significant Subsidiary) of any Guarantor that is a Significant Subsidiary, as
the case may be, denies that it has any further liability under its Guarantee or
gives notice to such effect, other than by reason of the termination of the
Senior Indenture or the release of any such Guarantee in accordance with the
Senior Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If any Event
of Default (other than of a type specified in clause&nbsp;(6) above) occurs and
is continuing under the Senior Indenture, the Trustee or the Holders of at least
30% in principal amount of the Senior Notes then outstanding under the Senior
Indenture may declare the principal, premium, if any, interest and any other
monetary obligations on all the Senior Notes then outstanding under the Senior
Indenture to be due and payable immediately.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Upon the
effectiveness of such declaration, such principal premium, if any, and interest
will be due and payable immediately. Notwithstanding the foregoing, in the case
of an Event of Default arising under clause&nbsp;(6) of </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>53</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">the
first paragraph of this section, all outstanding Senior Notes will become due
and payable without further action or notice. The Senior Indenture provides that
the Trustee may withhold from the Holders notice of any continuing Default,
except a Default relating to the payment of principal, premium, if any, or
interest, if it determines that withholding notice is in their interest. In
addition, the Trustee shall have no obligation to accelerate the Senior Notes if
in the best judgment of the Trustee acceleration is not in the best interest of
the Holders.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture provides that the Holders of a majority in aggregate principal amount
of the Senior Notes then outstanding under the Senior Indenture by notice to the
Trustee may on behalf of the Holders of all of the Senior Notes waive any
existing Default and its consequences under the Senior Indenture except a
continuing Default in the payment of interest on, premium, if any, or the
principal of any Senior Note held by a non-consenting Holder. In the event of
any Event of Default specified in clause&nbsp;(4) above, such Event of Default
and all consequences thereof (excluding any resulting payment default, other
than as a result of acceleration of the Senior Notes) shall be annulled, waived
and rescinded, automatically and without any action by the Trustee or the
Holders, if within 20&nbsp;days after such Event of Default arose:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Indebtedness or guarantee that is the basis for such Event of Default has been
discharged;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Holders
thereof have rescinded or waived the acceleration, notice or action (as the case
may be) giving rise to such Event of Default; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the default
that is the basis for such Event of Default has been cured.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Subject to
the provisions of the Senior Indenture relating to the duties of the Trustee
thereunder, in case an Event of Default occurs and is continuing, the Trustee
will be under no obligation to exercise any of the rights or powers under the
Senior Indenture at the request or direction of any of the Holders unless the
Holders have offered to the Trustee reasonable indemnity or security against any
loss, liability or expense. Except to enforce the right to receive payment of
principal, premium, if any, or interest when due, no Holder may pursue any
remedy with respect to the Senior Indenture or the Senior Notes unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such Holder
has previously given the Trustee notice that an Event of Default is
continuing;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Holders of at
least 30% in principal amount of the then outstanding Senior Notes have
requested the Trustee to pursue the remedy;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Holders have
offered the Trustee reasonable security or indemnity against any loss, liability
or expense;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Trustee
has not complied with such request within 60&nbsp;days after the receipt thereof
and the offer of security or indemnity; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Holders of a
majority in principal amount of the then outstanding Senior Notes have not given
the Trustee a direction inconsistent with such request within such 60-day
period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Subject to
certain restrictions, under the Senior Indenture the Holders of a majority in
principal amount of the total outstanding Senior Notes are given the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the
Trustee. The Trustee, however, may refuse to follow any direction that conflicts
with law or the Senior Indenture or that the Trustee determines is unduly
prejudicial to the rights of any other Holder or that would subject the Trustee
to personal liability.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture provides that the Issuer is required to deliver to the Trustee
annually a statement regarding compliance with the Senior Indenture, and the
Issuer is required, within five Business Days upon becoming aware of any
Default, to deliver to the Trustee a statement specifying such Default.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>54</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><B>No
Personal Liability of Directors, Officers, Employees and Shareholders</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">No director,
officer, employee, incorporator or shareholder of the Issuer or any Guarantor or
any of their parent companies (other than the Issuer and the Guarantors) shall
have any liability for any obligations of the Issuer or the Guarantors under the
Senior Notes, the Guarantees or the Senior Indenture or for any claim based on,
in respect of, or by reason of such obligations or their creation. Each Holder
by accepting the Senior Notes waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Senior Notes. Such
waiver may not be effective to waive liabilities under the federal securities
laws, and it is the view of the SEC that such a waiver is against public
policy.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Legal Defeasance and Covenant
Defeasance</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
obligations of the Issuer and the Guarantors under the Senior Indenture will
terminate (other than certain obligations) and will be released upon payment in
full of all of the Senior Notes issued under the Senior Indenture. The Issuer
may, at its option and at any time, elect to have all of its obligations
discharged with respect to the Senior Notes issued under the Senior Indenture
and have the Issuer&#146;s and each Guarantor&#146;s obligation discharged with respect to
its Guarantee (&#147;<I>Legal Defeasance</I>&#148;) and cure all then existing Events of
Default except for:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
rights of Holders of Senior Notes issued under the Senior Indenture to receive
payments in respect of the principal of, premium, if any, and interest on the
Senior Notes when such payments are due solely out of the trust created pursuant
to the Senior Indenture;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer&#146;s obligations with respect to Senior Notes concerning issuing temporary
notes, registration of such Senior Notes, mutilated, destroyed, lost or stolen
Senior Notes and the maintenance of an office or agency for payment and money
for security payments held in trust;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
rights, powers, trusts, duties and immunities of the Trustee, and the Issuer&#146;s
obligations in connection therewith; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Legal Defeasance provisions of the Senior Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
the Issuer may, at its option and at any time, elect to have its obligations and
those of each Guarantor released with respect to certain covenants that are
described in the Senior Indenture (&#147;<I>Covenant Defeasance</I>&#148;) and thereafter
any omission to comply with such obligations shall not constitute a Default with
respect to the Senior Notes. In the event Covenant Defeasance occurs, certain
events (not including bankruptcy, receivership, rehabilitation and insolvency
events pertaining to the Issuer) described under &#147;Events of Default and
Remedies&#148; will no longer constitute an Event of Default with respect to the
Senior Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In order to
exercise either Legal Defeasance or Covenant Defeasance with respect to the
Senior Notes:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders, cash in U.S. dollars, Government Securities, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally
recognized firm of independent public accountants, to pay the principal of,
premium, if any, and interest due on the Senior Notes issued under the Senior
Indenture on the stated maturity date or on the redemption date, as the case may
be, of such principal, premium, if any, or interest on such Senior Notes, and
the Issuer must specify whether such Senior Notes are being defeased to maturity
or to a particular redemption date;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in
the case of Legal Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject
to customary assumptions and exclusions,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer has received from, or there has been published by, the United States
Internal Revenue Service a ruling, or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>55</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">since
the original issuance of the Senior Notes, there has been a change in the
applicable U.S. federal income tax law,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, subject to
customary assumptions and exclusions, the Holders will not recognize income,
gain or loss for U.S. federal income tax purposes, as applicable, as a result of
such Legal Defeasance and will be subject to U.S. federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if
such Legal Defeasance had not occurred;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in
the case of Covenant Defeasance, the Issuer shall have delivered to the Trustee
an Opinion of Counsel reasonably acceptable to the Trustee confirming that,
subject to customary assumptions and exclusions, the Holders will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such
Covenant Defeasance and will be subject to such tax on the same amounts, in the
same manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">no
Default (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other
Indebtedness and, in each case, the granting of Liens in connection therewith)
shall have occurred and be continuing on the date of such deposit;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under the Senior Credit Facilities, the
Senior Subordinated Indenture, the Senior Subordinated Notes or any other
material agreement or instrument (other than the Senior Indenture) to which the
Issuer or any Guarantor is a party or by which the Issuer or any Guarantor is
bound (other than that resulting from borrowing funds to be applied to make such
deposit and any similar and simultaneous deposit relating to other Indebtedness
and, in each case, the granting of Liens in connection therewith);</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer shall have delivered to the Trustee an Opinion of Counsel to the effect
that, as of the date of such opinion and subject to customary assumptions and
exclusions following the deposit, the trust funds will not be subject to the
effect of Section&nbsp;547 of Title 11 of the United States Code;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer shall have delivered to the Trustee an Officer&#146;s Certificate stating that
the deposit was not made by the Issuer with the intent of defeating, hindering,
delaying or defrauding any creditors of the Issuer or any Guarantor or others;
and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer shall have delivered to the Trustee an Officer&#146;s Certificate and an
Opinion of Counsel (which Opinion of Counsel may be subject to customary
assumptions and exclusions) each stating that all conditions precedent provided
for or relating to the Legal Defeasance or the Covenant Defeasance, as the case
may be, have been complied with.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Satisfaction and
Discharge</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture will be discharged and will cease to be of further effect as to all
Senior Notes issued thereunder, when either:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all
Senior Notes theretofore authenticated and delivered, except lost, stolen or
destroyed Senior Notes which have been replaced or paid and Senior Notes for
whose payment money has theretofore been deposited in trust, have been delivered
to the Trustee for cancellation; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a)
all Senior Notes not theretofore delivered to the Trustee for cancellation have
become due and payable by reason of the making of a notice of redemption or
otherwise, will become due and payable within one year or may be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Issuer, and the Issuer or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders, cash in U.S. dollars, Government
Securities, or a </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>56</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">combination
thereof, in such amounts as will be sufficient without consideration of any
reinvestment of interest to pay and discharge the entire indebtedness on the
Senior Notes not theretofore delivered to the Trustee for cancellation for
principal, premium, if any, and accrued interest to the date of maturity or
redemption;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">no
Default (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other
Indebtedness and, in each case, the granting of Liens in connection therewith)
with respect to the Senior Indenture or the Senior Notes shall have occurred and
be continuing on the date of such deposit or shall occur as a result of such
deposit, and such deposit will not result in a breach or violation of, or
constitute a default under, the Senior Credit Facilities, the Senior
Subordinated Indenture, the Senior Subordinated Notes or any other material
agreement or instrument (other than the Senior Indenture) to which the Issuer or
any Guarantor is a party or by which the Issuer or any Guarantor is bound (other
than that resulting from borrowing funds to be applied to make such deposit and
any similar and simultaneous deposit relating to other Indebtedness and, in each
case, the granting of Liens in connection therewith);</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer has paid or caused to be paid all sums payable by it under the Senior
Indenture; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer has delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Senior Notes at maturity or the
redemption date, as the case may be.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
the Issuer must deliver an Officer&#146;s Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge
have been satisfied.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Amendment, Supplement and
Waiver</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Except as
provided in the next two succeeding paragraphs, the Senior Indenture, any
Guarantee, and the Senior Notes may be amended or supplemented with the consent
of the Holders of at least a majority in principal amount of the Senior Notes
then outstanding, including consents obtained in connection with a purchase of,
or tender offer or exchange offer for, Senior Notes, and any existing Default or
compliance with any provision of the Senior Indenture, the Senior Notes issued
thereunder, any Guarantee may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Senior Notes, other than
Senior Notes beneficially owned by the Issuer or its Affiliates (including
consents obtained in connection with a purchase of or tender offer or exchange
offer for the Senior Notes).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture provides that, without the consent of each affected Holder, an
amendment or waiver may not, with respect to any Senior Notes held by a
non-consenting Holder:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">reduce
the principal amount of such Senior Notes whose Holders must consent to an
amendment, supplement or waiver;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">reduce
the principal of or change the fixed final maturity of any such Senior Note or
alter or waive the provisions with respect to the redemption of such Senior
Notes (other than provisions relating to the covenants described above under the
caption &#147;Repurchase at the Option of Holders&#148;);</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">reduce
the rate of or change the time for payment of interest on any Senior Note;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">waive
a Default in the payment of principal of or premium, if any, or interest on the
Senior Notes, except a rescission of acceleration of the Senior Notes by the
Holders of at least a majority in aggregate principal amount of the Senior Notes
and a waiver of the payment default that resulted from such acceleration, or in
respect of a covenant or provision contained in the Senior Indenture or any
Guarantee which cannot be amended or modified without the consent of all
Holders;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>57</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(5)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make
any Senior Note payable in money other than that stated therein;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make
any change in the provisions of the Senior Indenture relating to waivers of past
Defaults or the rights of Holders to receive payments of principal of or
premium, if any, or interest on the Senior Notes;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make
any change in these amendment and waiver provisions;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">impair
the right of any Holder to receive payment of principal of, or interest on such
Holder&#146;s Senior Notes on or after the due dates therefor or to institute suit
for the enforcement of any payment on or with respect to such Holder&#146;s Senior
Notes;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make
any change to or modify the ranking of the Senior Notes that would adversely
affect the Holders; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">except
as expressly permitted by the Senior Indenture, modify the Guarantees of any
Significant Subsidiary in any manner adverse to the Holders.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the foregoing, the Issuer, any Guarantor (with respect to a Guarantee or the
Senior Indenture to which it is a party) and the Trustee may amend or supplement
the Senior Indenture, any Guarantee or Notes without the consent of any
Holder;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
cure any ambiguity, omission, mistake, defect or inconsistency;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
provide for uncertificated Senior Notes of such series in addition to or in
place of certificated Senior Notes;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
comply with the covenant relating to mergers, consolidations and sales of
assets;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
provide for the assumption of the Issuer&#146;s or any Guarantor&#146;s obligations to the
Holders;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
make any change that would provide any additional rights or benefits to the
Holders or that does not adversely affect the legal rights under the Senior
Indenture of any such Holder;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
add covenants for the benefit of the Holders or to surrender any right or power
conferred upon the Issuer or any Guarantor;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
comply with requirements of the SEC in order to effect or maintain the
qualification of the Senior Indenture under the Trust Indenture Act;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
evidence and provide for the acceptance and appointment under the Senior
Indenture of a successor Trustee thereunder pursuant to the requirements
thereof;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
provide for the issuance of Senior Exchange Notes or private exchange notes,
which are identical to Senior Exchange Notes except that they are not freely
transferable;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
add a Guarantor under the Senior Indenture;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
conform the text of the Senior Indenture, Guarantees or the Senior Notes to any
provision of this &#147;Description of Senior Notes&#148; to the extent that such
provision in this &#147;Description of Senior Notes&#148; was intended to be a verbatim
recitation of a provision of the Senior Indenture, Guarantee or Senior Notes;
or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>58</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(12)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
make any amendment to the provisions of the Senior Indenture relating to the
transfer and legending of Senior Notes as permitted by the Senior Indenture,
including, without limitation, to facilitate the issuance and administration of
the Senior Notes; <I>provided</I>, <I>however</I>, that (i)&nbsp;compliance with
the Senior Indenture as so amended would not result in Senior Notes being
transferred in violation of the Securities Act or any applicable securities law
and (ii)&nbsp;such amendment does not materially and adversely affect the rights
of Holders to transfer Senior Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The consent
of the Holders will not be necessary under the Senior Indenture to approve the
particular form of any proposed amendment. It is sufficient if such consent
approves the substance of the proposed amendment.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Notices</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notices given
by publication will be deemed given on the first date on which publication is
made and notices given by first-class mail, postage prepaid, will be deemed
given five calendar days after mailing.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Concerning the
Trustee</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture contains certain limitations on the rights of the Trustee thereunder,
should it become a creditor of the Issuer, to obtain payment of claims in
certain cases, or to realize on certain property received in respect of any such
claim as security or otherwise. The Trustee is permitted to engage in other
transactions; however, if it acquires any conflicting interest it must eliminate
such conflict within 90&nbsp;days, apply to the SEC for permission to continue
or resign.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture provides that the Holders of a majority in principal amount of the
outstanding Senior Notes will have the right to direct the time, method and
place of conducting any proceeding for exercising any remedy available to the
Trustee, subject to certain exceptions. The Senior Indenture provides that in
case an Event of Default shall occur (which shall not be cured), the Trustee
will be required, in the exercise of its power, to use the degree of care of a
prudent person in the conduct of his own affairs. Subject to such provisions,
the Trustee is under no obligation to exercise any of its rights or powers under
the Senior Indenture at the request of any Holder, unless such Holder shall have
offered to the Trustee security and indemnity satisfactory to it against any
loss, liability or expense.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Governing Law</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Indenture, the Senior Notes and any Guarantee are governed by and construed in
accordance with the laws of the State of New York.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Certain Definitions</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Set forth
below are certain defined terms used in the Senior Indenture. For purposes of
the Senior Indenture, unless otherwise specifically indicated, the term
&#147;consolidated&#148; with respect to any Person refers to such Person on a
consolidated basis in accordance with GAAP, but excluding from such
consolidation any Unrestricted Subsidiary as if such Unrestricted Subsidiary
were not an Affiliate of such Person.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>ABL
Facility</I>&#148; means the Asset-Based Revolving Credit Agreement to be entered
into as of the Issue Date by and among the Issuer, the lenders party thereto in
their capacities as lenders thereunder and The CIT Group/Business
Credit&nbsp;Inc., as Administrative Agent, including any guarantees, collateral
documents, instruments and agreements executed in connection therewith, and any
amendments, supplements, modifications, extensions, renewals, restatements,
refundings or refinancings thereof and any indentures, notes, debentures or
credit facilities or commercial paper facilities with banks or other
institutional lenders or investors that replace, refund or refinance any part of
the loans, notes, other credit facilities or commitments thereunder, including
any such replacement, refunding or refinancing facility or indenture that
increases the amount borrowable thereunder or alters the maturity thereof
(<I>provided</I> that such increase in borrowings is permitted under &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148; above).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>59</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>ABL
Facility Cap</I>&#148; means an amount equal to the greater of
(x)&nbsp;$1,125.0&nbsp;million and (y)&nbsp;the sum of (i)&nbsp;85% of the net
orderly liquidation value as determined in good faith by the Issuer of inventory
of the Issuer and each Guarantor and (ii)&nbsp;90% of all credit card
receivables of the Issuer and each Guarantor determined in accordance with
GAAP.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>ABL
Obligations</I>&#148; means Obligations under the ABL Facility.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>ABL
Secured Parties</I>&#148; means each of (i)&nbsp;the ABL Collateral Agent on behalf
of itself and the lenders under the ABL Facility and lenders or their affiliates
counterparty to related Hedging Obligations and (ii)&nbsp;each other holder of
ABL Obligations.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Acquired
Indebtedness</I>&#148; means, with respect to any specified Person,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Restricted Subsidiary of such specified Person, including
Indebtedness incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Restricted Subsidiary of such
specified Person, and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Affiliate</I>&#148;
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person. For purposes of this definition, &#147;control&#148; (including,
with correlative meanings, the terms &#147;controlling,&#148; &#147;controlled by&#148; and &#147;under
common control with&#148;), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Applicable
Premium</I>&#148; means, with respect to any Senior Note on any Redemption Date, the
greater of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">1.0%
of the principal amount of such Senior Note; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
excess, if any, of (a)&nbsp;the present value at such Redemption Date of
(i)&nbsp;the redemption price of such Senior Note at July&nbsp;15, 2011 (such
redemption price being set forth in the tables appearing above under the
captions &#147;Optional Redemption&#148;), plus (ii)&nbsp;all required interest payments
due on such Senior Note through July&nbsp;15, 2011 (excluding accrued but unpaid
interest to the Redemption Date), computed using a discount rate equal to the
Treasury Rate as of such Redemption Date plus 50 basis points; over (b)&nbsp;the
principal amount of such Senior Note.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Asset
Sale</I>&#148; means:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
sale, conveyance, transfer or other disposition, whether in a single transaction
or a series of related transactions, of property or assets (including by way of
a Sale and Lease-Back Transaction) of the Issuer or any of its Restricted
Subsidiaries (each referred to in this definition as a &#147;<I>disposition</I>&#148;);
or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
issuance or sale of Equity Interests of any Restricted Subsidiary, whether in a
single transaction or a series of related transactions (other than Preferred
Stock of Restricted Subsidiaries issued in compliance with the covenant
described under &#147;Certain Covenants&#151;Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock&#148;);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">in each case, other than:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>60</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
disposition of Cash Equivalents or Investment Grade Securities or obsolete or
worn out equipment in the ordinary course of business or any disposition of
inventory or goods (or other assets) held for sale in the ordinary course of
business;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
disposition of all or substantially all of the assets of the Issuer in a manner
permitted pursuant to the provisions described above under &#147;Certain
Covenants&#151;Merger, Consolidation or Sale of All or Substantially All Assets&#148; or
any disposition that constitutes a Change of Control pursuant to the Senior
Indenture;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
making of any Restricted Payment or Permitted Investment that is permitted to be
made, and is made, under the covenant described above under &#147;Certain
Covenants&#151;Limitation on Restricted Payments&#148;;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
disposition of assets or issuance or sale of Equity Interests of any Restricted
Subsidiary in any transaction or series of related transactions with an
aggregate fair market value of less than $25.0&nbsp;million;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
disposition of property or assets or issuance of securities by a Restricted
Subsidiary of the Issuer to the Issuer or by the Issuer or a Restricted
Subsidiary of the Issuer to another Restricted Subsidiary of the Issuer;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(f)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
the extent allowable under Section&nbsp;1031 of the Code or any comparable or
successor provision, any exchange of like property (excluding any boot thereon)
for use in a Similar Business;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(g)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
lease, assignment or sub-lease of any real or personal property in the ordinary
course of business;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(h)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
issuance or sale of Equity Interests in, or Indebtedness or other securities of,
an Unrestricted Subsidiary;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">foreclosures
on assets;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(j)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">sales
of accounts receivable, or participations therein, in connection with the ABL
Facility or any Receivables Facility;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(k)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
financing transaction with respect to property built or acquired by the Issuer
or any Restricted Subsidiary after the Issue Date, including Sale and Lease-Back
Transactions and asset securitizations permitted by the Senior Indenture;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(l)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">dispositions
in the ordinary course of business by any Restricted Subsidiary engaged in the
insurance business in order to provide insurance to the Issuer and its
Subsidiaries;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(m)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
unwinding of any Hedging Obligations; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(n)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">sales,
transfers and other dispositions of Investments in joint ventures to the extent
required by, or made pursuant to, customary buy/sell arrangements between the
joint venture parties set forth in joint venture arrangements and similar
binding arrangements.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Asset
Sale Offer</I>&#148; has the meaning set forth in the fourth paragraph under
&#147;Repurchase at the Option of Holders&#151;Asset Sales.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Bankruptcy
Code</I>&#148; means Title 11 of the United States Code, as amended.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Bankruptcy
Law</I>&#148; means the Bankruptcy Code and any similar federal, state or foreign law
for the relief of debtors.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>61</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Business
Day</I>&#148; means each day which is not a Legal Holiday.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Capital
Stock</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of a corporation, corporate stock;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of a partnership or limited liability company, partnership or membership
interests (whether general or limited); and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any other
interest or participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of assets of, the issuing
Person.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Capitalized
Lease Obligation</I>&#148; means, at the time any determination thereof is to be
made, the amount of the liability in respect of a capital lease that would at
such time be required to be capitalized and reflected as a liability on a
balance sheet (excluding the footnotes thereto) in accordance with GAAP.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Capitalized
Software Expenditures</I>&#148; means, for any period, the aggregate of all
expenditures (whether paid in cash or accrued as liabilities) by a Person and
its Restricted Subsidiaries during such period in respect of purchased software
or internally developed software and software enhancements that, in conformity
with GAAP, are or are required to be reflected as capitalized costs on the
consolidated balance sheet of a Person and its Restricted Subsidiaries.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Cash
Equivalents</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">United States
dollars;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">euro or any
national currency of any participating member state of the EMU or such local
currencies held by the Issuer and its Restricted Subsidiaries from time to time
in the ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">securities
issued or directly and fully and unconditionally guaranteed or insured by the
U.S. government (or any agency or instrumentality thereof the securities of
which are unconditionally guaranteed as a full faith and credit obligation of
the U.S. government) with maturities of 24&nbsp;months or less from the date of
acquisition;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">certificates
of deposit, time deposits and eurodollar time deposits with maturities of one
year or less from the date of acquisition, bankers&#146; acceptances with maturities
not exceeding one year and overnight bank deposits, in each case with any
commercial bank having capital and surplus of not less than $500.0&nbsp;million
in the case of U.S. banks and $100.0&nbsp;million (or the U.S. dollar equivalent
as of the date of determination) in the case of non-U.S. banks;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">repurchase
obligations for underlying securities of the types described in clauses
(3)&nbsp;and (4)&nbsp;entered into with any financial institution meeting the
qualifications specified in clause&nbsp;(4) above;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">commercial
paper rated at least P-1 by Moody&#146;s or at least A-1 by S&amp;P and in each case
maturing within 24&nbsp;months after the date of creation thereof;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">marketable
short-term money market and similar securities having a rating of at least P-2
or A-2 from either Moody&#146;s or S&amp;P, respectively (or, if at any time neither
Moody&#146;s nor S&amp;P shall be rating such obligations, an equivalent rating from
another Rating Agency) and in each case maturing within 24&nbsp;months after the
date of creation thereof;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">investment
funds investing 95% of their assets in securities of the types described in
clauses (1)&nbsp;through (7)&nbsp;above;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>62</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">readily
marketable direct obligations issued by any state, commonwealth or territory of
the United States or any political subdivision or taxing authority thereof
having an Investment Grade Rating from either Moody&#146;s or S&amp;P with maturities
of 24&nbsp;months or less from the date of acquisition;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
or Preferred Stock issued by Persons with a rating of &#147;A&#148; or higher from S&amp;P
or &#147;A2&#148; or higher from Moody&#146;s with maturities of 24&nbsp;months or less from
the date of acquisition; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
with average maturities of 24&nbsp;months or less from the date of acquisition
in money market funds rated AAA- (or the equivalent thereof) or better by
S&amp;P or Aaa3 (or the equivalent thereof) or better by Moody&#146;s.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the foregoing, Cash Equivalents shall include amounts denominated in currencies
other than those set forth in clauses (1)&nbsp;and (2)&nbsp;above;
<I>provided</I> that such amounts are converted into any currency listed in
clauses (1)&nbsp;and (2)&nbsp;as promptly as practicable and in any event within
ten Business Days following the receipt of such amounts.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Change of
Control</I>&#148; means the occurrence of any of the following:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the sale,
lease or transfer, in one or a series of related transactions, of all or
substantially all of the assets of the Issuer and its Subsidiaries, taken as a
whole, to any Person other than a Permitted Holder; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
becomes aware (by way of a report or any other filing pursuant to
Section&nbsp;13(d) of the Exchange Act, proxy, vote, written notice or
otherwise) of the acquisition by any Person or group (within the meaning of
Section&nbsp;13(d)(3) or Section&nbsp;14(d)(2) of the Exchange Act, or any
successor provision), including any group acting for the purpose of acquiring,
holding or disposing of securities (within the meaning of Rule&nbsp;13d-5(b)(1)
under the Exchange Act or any successor provision), other than the Permitted
Holders, in a single transaction or in a related series of transactions, by way
of merger, consolidation or other business combination or purchase of beneficial
ownership (within the meaning of Rule&nbsp;13d-3 under the Exchange Act, or any
successor provision) of 50% or more of the total voting power of the Voting
Stock of the Issuer or any of its direct or indirect parent companies holding
directly or indirectly 100% of the total voting power of the Voting Stock of the
Issuer.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Code</I>&#148;
means the Internal Revenue Code of 1986, as amended, or any successor
thereto.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Depreciation and Amortization Expense</I>&#148; means with respect to any Person for
any period, the total amount of depreciation and amortization expense, including
the amortization of deferred financing fees, debt issuance costs, commissions,
fees and expenses and Capitalized Software Expenditures, of such Person and its
Restricted Subsidiaries for such period on a consolidated basis and otherwise
determined in accordance with GAAP.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Interest Expense</I>&#148; means, with respect to any Person for any period, without
duplication, the sum of:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">consolidated
interest expense of such Person and its Restricted Subsidiaries for such period,
to the extent such expense was deducted (and not added back) in computing
Consolidated Net Income (including (a)&nbsp;amortization of original issue
discount resulting from the issuance of Indebtedness at less than par,
(b)&nbsp;all commissions, discounts and other fees and charges owed with respect
to letters of credit or bankers&#146; acceptances, (c)&nbsp;non-cash interest
payments (but excluding any non-cash interest expense attributable to the
movement in the mark to market valuation of Hedging Obligations or other
derivative instruments pursuant to GAAP), (d)&nbsp;the interest component of
Capitalized Lease Obligations, and (e)&nbsp;net payments, if any, pursuant to
interest rate Hedging Obligations with respect to Indebtedness, and excluding
(u)&nbsp;accretion or accrual of discounted liabilities not constituting
Indebtedness, (v)&nbsp;any expense resulting from the discounting any
Indebtedness in connection with the application of recapitalization accounting
or, if applicable, purchase accounting, (w)&nbsp;any Special Interest and any
comparable &#147;additional interest&#148; with respect to other securities,
(x)&nbsp;amortization of deferred financing fees, debt issuance costs,
commissions, fees and expenses, (y)&nbsp;any expensing of bridge, commitment and
other financing fees and (z)&nbsp;commissions, discounts, yield and other fees
and charges (including any interest expense) related to any Receivables
Facility); plus</P>
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<P style="MARGIN: 0px" align=center>63</P>
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<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">consolidated
capitalized interest of such Person and its Restricted Subsidiaries for such
period, whether paid or accrued; less</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">interest
income for such period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">For purposes of this definition,
interest on a Capitalized Lease Obligation shall be deemed to accrue at an
interest rate reasonably determined by such Person to be the rate of interest
implicit in such Capitalized Lease Obligation in accordance with GAAP.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Leverage Ratio&#148;</I> as of any date of determination, means the ratio of
(1)&nbsp;Consolidated Total Indebtedness of the Issuer and its Restricted
Subsidiaries as of the end of the most recent fiscal period for which internal
financial statements are available immediately preceding the date on which such
event for which such calculation is being made shall occur to (2)&nbsp;the
Issuer&#146;s EBITDA for the most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding the date on
which such event for which such calculation is being made shall occur, in each
case with such pro forma adjustments to Consolidated Total Indebtedness and
EBITDA as are appropriate and consistent with the pro forma adjustment
provisions set forth in the definition of &#147;Fixed Charge Coverage Ratio.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Net Income</I>&#148; means, with respect to any Person for any period, the aggregate
of the Net Income of such Person for such period, on a consolidated basis, and
otherwise determined in accordance with GAAP; <I>provided</I>, <I>however</I>,
that, without duplication,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any after-tax
effect of extraordinary, non-recurring or unusual gains or losses (less all fees
and expenses relating thereto) or expenses (including relating to the
Transactions to the extent incurred on or prior to May&nbsp;1, 2008), severance,
relocation costs, consolidation and closing costs, integration and facilities
opening costs, business optimization costs, transition costs, restructuring
costs, signing, retention or completion bonuses, and curtailments or
modifications to pension and post-retirement employee benefit plans shall be
excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
cumulative effect of a change in accounting principles during such period shall
be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any after-tax
effect of income (loss) from disposed, abandoned or discontinued operations and
any net after-tax gains or losses on disposal of disposed, abandoned,
transferred, closed or discontinued operations shall be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any after-tax
effect of gains or losses (less all fees and expenses relating thereto)
attributable to asset dispositions or abandonments other than in the ordinary
course of business, as determined in good faith by the Issuer, shall be
excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Net
Income for such period of any Person that is an Unrestricted Subsidiary shall be
excluded, and, solely for the purpose of determining the amount available for
Restricted Payments under clause&nbsp;3(a) of the first paragraph of &#147;Certain
Covenants&#151;Limitation on Restricted Payments,&#148; the Net Income for such period of
any Person that is not a Subsidiary or that is accounted for by the equity
method of accounting shall be excluded; <I>provided</I> that Consolidated Net
Income of the Issuer shall be increased by the amount of dividends or
distributions or other payments that are actually paid in cash (or to the extent
converted into cash) to the Issuer or a Restricted Subsidiary thereof in respect
of such period, to the extent not already included therein,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">solely for
the purpose of determining the amount available for Restricted Payments under
clause&nbsp;(3)(a) of the first paragraph of &#147;Certain Covenants&#151;Limitation on
Restricted Payments,&#148; the Net Income for such period of any Restricted
Subsidiary (other than any Guarantor) shall be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of its Net Income is not at the date of determination wholly
permitted without any prior governmental approval (which has not been obtained)
or, directly or indirectly, by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, or governmental
regulation applicable to that Restricted Subsidiary or its stockholders, unless
such restriction with respect to the payment of dividends or similar
distributions has been legally waived; <I>provided</I> that Consolidated Net
Income of the Issuer will be increased by the amount of dividends or other
distributions or </P>
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<P style="MARGIN: 0px" align=center>64</P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">other
payments actually paid in cash (or to the extent converted into cash) or Cash
Equivalents to the Issuer or a Restricted Subsidiary thereof in respect of such
period, to the extent not already included therein,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">effects of
adjustments (including the effects of such adjustments pushed down to the Issuer
and its Restricted Subsidiaries) in the property, equipment, inventory, software
and other intangible assets, deferred revenue and debt line items in such
Person&#146;s consolidated financial statements pursuant to GAAP resulting from the
application of recapitalization accounting or, if applicable, purchase
accounting in relation to the Transactions or any consummated acquisition or the
amortization or write-off of any amounts thereof, net of taxes, shall be
excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any after-tax
effect of income (loss) from the early extinguishment of Indebtedness or Hedging
Obligations or other derivative instruments shall be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
impairment charge or asset write-off, including, without limitation, impairment
charges or asset write-offs related to intangible assets, long-lived assets or
investments in debt and equity securities, in each case, pursuant to GAAP and
the amortization of intangibles arising pursuant to GAAP shall be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any non-cash
compensation expense recorded from grants of stock appreciation or similar
rights, stock options, restricted stock or other rights, and any cash charges
associated with the rollover, acceleration or payout of Equity Interests by
management of the Company or any of its direct or indirect parent companies in
connection with the Transactions, shall be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any fees and
expenses incurred during such period, or any amortization thereof for such
period, in connection with any acquisition, Investment, Asset Sale, issuance or
repayment of Indebtedness, issuance of Equity Interests, refinancing transaction
or amendment or modification of any debt instrument (in each case, including any
such transaction consummated prior to the Issue Date and any such transaction
undertaken but not completed) and any charges or non-recurring merger costs
incurred during such period as a result of any such transaction shall be
excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">accruals and
reserves that are established or adjusted within twelve months after the Issue
Date that are so required to be established as a result of the Transactions in
accordance with GAAP, or changes as a result of adoption or modification of
accounting policies, shall be excluded, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to the extent
covered by insurance and actually reimbursed, or, so long as the Issuer has made
a determination that there exists reasonable evidence that such amount will in
fact be reimbursed by the insurer and only to the extent that such amount is
(a)&nbsp;not denied by the applicable carrier in writing within 180&nbsp;days
and (b)&nbsp;in fact reimbursed within 365&nbsp;days of the date of such
evidence (with a deduction for any amount so added back to the extent not so
reimbursed within 365&nbsp;days), expenses with respect to liability or casualty
events or business interruption shall be excluded.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the foregoing, for the purpose of the covenant described under &#147;Certain
Covenants&#151;Limitation on Restricted Payments&#148; only (other than clause&nbsp;(3)(d)
thereof), there shall be excluded from Consolidated Net Income any income
arising from any sale or other disposition of Restricted Investments made by the
Issuer and its Restricted Subsidiaries, any repurchases and redemptions of
Restricted Investments from the Issuer and its Restricted Subsidiaries, any
repayments of loans and advances which constitute Restricted Investments by the
Issuer or any of its Restricted Subsidiaries, any sale of the stock of an
Unrestricted Subsidiary or any distribution or dividend from an Unrestricted
Subsidiary, in each case only to the extent such amounts increase the amount of
Restricted Payments permitted under such covenant pursuant to clause&nbsp;(3)(d)
thereof.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Secured Debt Ratio&#148; </I>as of any date of determination, means the ratio of (1)
Consolidated Total Indebtedness of the Issuer and its Restricted Subsidiaries
that is secured by Liens as of the end of the most recent fiscal period for
which internal financial statements are available immediately preceding the date
on which such event for which such calculation is being made shall occur to (2)
the Issuer&#146;s EBITDA for the most recently ended four full fiscal quarters for
which internal financial statements are available immediately preceding the date
on which such event for which such calculation is being made shall occur, in
each case with such pro forma </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>65</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">adjustments
to Consolidated Total Indebtedness and EBITDA as are appropriate and consistent
with the pro forma adjustment provisions set forth in the definition of &#147;Fixed
Charge Coverage Ratio.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Total Indebtedness</I>&#148; means, as of any date of determination, an amount equal
to the sum of (1) the aggregate amount of all outstanding Indebtedness of the
Issuer and its Restricted Subsidiaries on a consolidated basis consisting of
Indebtedness for borrowed money, Obligations in respect of Capitalized Lease
Obligations and debt obligations evidenced by promissory notes and similar
instruments (and excluding, for the avoidance of doubt, all obligations relating
to Receivables Facilities) and (2) the aggregate amount of all outstanding
Disqualified Stock of the Issuer and all Preferred Stock of its Restricted
Subsidiaries on a consolidated basis, with the amount of such Disqualified Stock
and Preferred Stock equal to the greater of their respective voluntary or
involuntary liquidation preferences and maximum fixed repurchase prices, in each
case determined on a consolidated basis in accordance with GAAP. For purposes
hereof, the &#147;maximum fixed repurchase price&#148; of any Disqualified Stock or
Preferred Stock that does not have a fixed repurchase price shall be calculated
in accordance with the terms of such Disqualified Stock or Preferred Stock as if
such Disqualified Stock or Preferred Stock were purchased on any date on which
Consolidated Total Indebtedness shall be required to be determined pursuant to
the Indenture, and if such price is based upon, or measured by, the fair market
value of such Disqualified Stock or Preferred Stock, such fair market value
shall be determined reasonably and in good faith by the Issuer.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Contingent
Obligations</I>&#148; means, with respect to any Person, any obligation of such
Person guaranteeing any leases, dividends or other obligations that do not
constitute Indebtedness (&#147;<I>primary obligations</I>&#148;) of any other Person (the
&#147;<I>primary obligor</I>&#148;) in any manner, whether directly or indirectly,
including, without limitation, any obligation of such Person, whether or not
contingent,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to purchase
any such primary obligation or any property constituting direct or indirect
security therefor,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to advance or
supply funds:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">for
the purchase or payment of any such primary obligation, or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">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 against loss in respect thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Credit
Facilities</I>&#148; means, with respect to the Issuer or any of its Restricted
Subsidiaries, one or more debt facilities, including the Senior Credit
Facilities, or other financing arrangements (including, without limitation,
commercial paper facilities or indentures) providing for revolving credit loans,
term loans, letters of credit or other long-term indebtedness, including any
notes, mortgages, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and any amendments, supplements,
modifications, extensions, renewals, restatements or refundings thereof and any
indentures, notes, debentures or credit facilities or commercial paper
facilities that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount
permitted to be borrowed thereunder or alters the maturity thereof
(<I>provided</I> that such increase in borrowings is permitted under &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148;) or adds Restricted Subsidiaries as additional
borrowers or guarantors thereunder and whether by the same or any other agent,
lender or group of lenders.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Default</I>&#148;
means any event that is, or with the passage of time or the giving of notice or
both would be, an Event of Default.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Designated
Non-cash Consideration</I>&#148; means the fair market value of non-cash
consideration received by the Issuer or a Restricted Subsidiary in connection
with an Asset Sale that is so designated as Designated Non-cash </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>66</P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Consideration
pursuant to an Officer&#146;s Certificate, setting forth the basis of such valuation,
executed by the principal financial officer of the Issuer, less the amount of
cash or Cash Equivalents received in connection with a subsequent sale of or
collection on such Designated Non-cash Consideration.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Designated
Preferred Stock</I>&#148; means Preferred Stock of the Issuer or any parent
corporation thereof (in each case other than Disqualified Stock) that is issued
for cash (other than to a Restricted Subsidiary or an employee stock ownership
plan or trust established by the Issuer or any of its Subsidiaries) and is so
designated as Designated Preferred Stock, pursuant to an Officer&#146;s Certificate
executed by the principal financial officer of the Issuer or the applicable
parent corporation thereof, as the case may be, on the issuance date thereof,
the cash proceeds of which are excluded from the calculation set forth in
clause&nbsp;(3) of the first paragraph under &#147;Certain Covenants&#151;Limitation on
Restricted Payments.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Disqualified
Stock</I>&#148; means, with respect to any Person, any Capital Stock of such Person
which, by its terms, or by the terms of any security into which it is
convertible or for which it is putable or exchangeable, or upon the happening of
any event, matures or is mandatorily redeemable (other than solely as a result
of a change of control or asset sale) pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof (other than
solely as a result of a change of control or asset sale), in whole or in part,
in each case prior to the date 91&nbsp;days after the earlier of the maturity
date of the Senior Notes or the date the Senior Notes are no longer outstanding;
<I>provided</I>, <I>however</I>, that if such Capital Stock is issued to any
plan for the benefit of employees of the Issuer or its Subsidiaries or by any
such plan to such employees, such Capital Stock shall not constitute
Disqualified Stock solely because it may be required to be repurchased by the
Issuer or its Subsidiaries in order to satisfy applicable statutory or
regulatory obligations.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>EBITDA</I>&#148;
means, with respect to any Person for any period, the Consolidated Net Income of
such Person for such period</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">increased
(without duplication) by:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">provision
for taxes based on income or profits or capital gains, including, without
limitation, foreign, federal, state, franchise and similar taxes and foreign
withholding taxes (including penalties and interest related to such taxes or
arising from tax examinations) of such Person paid or accrued during such period
deducted (and not added back) in computing Consolidated Net Income in such
period; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Fixed
Charges of such Person for such period (including (x)&nbsp;net losses on Hedging
Obligations or other derivative instruments entered into for the purpose of
hedging interest rate risk and (y)&nbsp;costs of surety bonds in connection with
financing activities, in each case, to the extent included in Fixed Charges),
together with items excluded from the definition of &#147;Consolidated Interest
Expense&#148; pursuant to clauses (1)(u), (v), (w), (x), (y)&nbsp;and (z)&nbsp;of the
definition thereof, and, in each such case, to the extent the same were deducted
(and not added back) in calculating such Consolidated Net Income in such period;
<I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Consolidated
Depreciation and Amortization Expense of such Person for such period to the
extent the same was deducted (and not added back) in computing Consolidated Net
Income in such period; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
expenses or charges (other than depreciation or amortization expense) related to
any Equity Offering, Permitted Investment, acquisition, disposition,
recapitalization or the incurrence of Indebtedness permitted to be incurred by
the Senior Indenture (including a refinancing thereof) (whether or not
successful), including (i)&nbsp;such fees, expenses or charges related to the
offering of the Senior Notes and any Credit Facilities and (ii)&nbsp;any
amendment or other modification of the Senior Notes, and, in each case, deducted
(and not added back) in computing Consolidated Net Income in such period;
<I>plus</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>67</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(e)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of any restructuring charge or reserve deducted (and not added back) in
such period in computing Consolidated Net Income, including any one-time costs
incurred in connection with acquisitions after the Issue Date and costs related
to the closure and/or consolidation of facilities; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(f)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
other non-cash charges, including any write-offs or write-downs, reducing
Consolidated Net Income for such period (<I>provided</I> that if any such
non-cash charges represent an accrual or reserve for potential cash items in any
future period, the cash payment in respect thereof in such future period shall
be subtracted from EBITDA to such extent, and excluding amortization of a
prepaid cash item that was paid in a prior period); <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(g)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of any minority interest expense consisting of income attributable to
minority equity interests of third parties deducted (and not added back) in such
period in calculating Consolidated Net Income in such period; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(h)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of management, monitoring, consulting and advisory fees and related
expenses paid in such period to the Investors to the extent otherwise permitted
under &#147;Certain Covenants&#151;Transactions with Affiliates&#148;; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of net cost savings projected by the Issuer in good faith to be realized
as a result of specified actions taken or to be taken (calculated on a <I>pro
forma</I> basis as though such cost savings had been realized on the first day
of such period), net of the amount of actual benefits realized during such
period from such actions; <I>provided</I> that (w)&nbsp;such cost savings are
reasonably identifiable and factually supportable, (x)&nbsp;such actions have
been taken or are to be taken within 12&nbsp;months after the date of
determination to take such action, (y)&nbsp;no cost savings shall be added
pursuant to this clause&nbsp;(i) to the extent duplicative of any expenses or
charges relating to such cost savings that are included in clause&nbsp;(e) above
with respect to such period and (z)&nbsp;the aggregate amount of cost savings
added pursuant to this clause&nbsp;(i) shall not exceed $25.0&nbsp;million for
any four consecutive quarter period (which adjustments may be incremental to
<I>pro forma</I> adjustments made pursuant to the second paragraph of the
definition of &#147;Fixed Charge Coverage Ratio&#148;); <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(j)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of loss on sales of receivables and related assets to the Receivables
Subsidiary in connection with a Receivables Facility; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(k)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">an
amount equal to the impact on cost of goods sold and operating profit of
incremental markdowns taken as a result of Project Alpha as described in the
offering documentation relating to the outstanding notes; <I>provided</I> that
this clause (k) shall not apply to any quarterly period beginning after
February&nbsp;1, 2008; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(l)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
expenses associated with Project Alpha inventory and real estate initiatives as
described in the offering documentation relating to the outstanding notes;
<I>provided</I> that this clause (l) shall not apply to any quarterly period
beginning after February&nbsp;1, 2008; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(m)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
costs or expense incurred by the Issuer or a Restricted Subsidiary pursuant to
any management equity plan or stock option plan or any other management or
employee benefit plan or agreement or any stock subscription or shareholder
agreement, to the extent that such cost or expenses are funded with cash
proceeds contributed to the capital of the Issuer or net cash proceeds of an
issuance of Equity Interests of the Issuer (other than Disqualified Stock)
solely to the extent that such net cash proceeds are excluded from the
calculation set forth in clause&nbsp;(3) of the first paragraph under &#147;Certain
Covenants&#151;Limitation on Restricted Payments&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">decreased by
(without duplication) non-cash gains increasing Consolidated Net Income of such
Person for such period, excluding any non-cash gains to the extent they
represent the reversal of an accrual or reserve for a potential cash item that
reduced EBITDA in any prior period; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">increased or
decreased by (without duplication):</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>68</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
net gain or loss resulting in such period from Hedging Obligations and the
application of Statement of Financial Accounting Standards No.&nbsp;133;
<I>plus</I> or <I>minus</I>, as applicable, and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
net gain or loss resulting in such period from currency translation gains or
losses related to currency remeasurements of Indebtedness (including any net
loss or gain resulting from Hedging Obligations for currency exchange risk).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>EMU</I>&#148;
means the economic and monetary union as contemplated in the Treaty on European
Union.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Equity
Interests</I>&#148; means Capital Stock and all warrants, options or other rights to
acquire Capital Stock, but excluding any debt security that is convertible into,
or exchangeable for, Capital Stock.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Equity
Offering</I>&#148; means any public or private sale of common stock or Preferred
Stock of the Issuer or any of its direct or indirect parent companies (excluding
Disqualified Stock), other than:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">public
offerings with respect to the Issuer&#146;s or any direct or indirect parent
company&#146;s common stock registered on Form&nbsp;S-8;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">issuances to
any Subsidiary of the Issuer; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any such
public or private sale that constitutes an Excluded Contribution.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>euro</I>&#148;
means the single currency of participating member states of the EMU.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Event of
Default</I>&#148; has the meaning set forth under &#147;Events of Default and
Remedies.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Excess
Proceeds</I>&#148; has the meaning set forth in the fourth paragraph under
&#147;Repurchase at the Option of Holders&#151;Asset Sales.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Exchange
Act</I>&#148; means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Excluded
Contribution</I>&#148; means net cash proceeds, marketable securities or Qualified
Proceeds received by the Issuer after the Issue Date from</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">contributions
to its common equity capital, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the sale
(other than to a Subsidiary of the Issuer or to any management equity plan or
stock option plan or any other management or employee benefit plan or agreement
of the Issuer) of Capital Stock (other than Disqualified Stock and Designated
Preferred Stock) of the Issuer,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">in each case designated as
Excluded Contributions pursuant to an Officer&#146;s Certificate executed by the
principal financial officer of the Issuer on the date such capital contributions
are made or the date such Equity Interests are sold, as the case may be, which
are excluded from the calculation set forth in clause&nbsp;(3) of the first
paragraph under &#147;Certain Covenants&#151;Limitation on Restricted Payments.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Fixed
Charge Coverage Ratio</I>&#148; means, with respect to any Person for any period, the
ratio of EBITDA of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the Issuer or any Restricted
Subsidiary incurs, assumes, guarantees, redeems, retires or extinguishes any
Indebtedness (other than Indebtedness incurred under any revolving credit
facility unless such Indebtedness has been permanently repaid and has not been
replaced) or issues or redeems Disqualified Stock or Preferred Stock subsequent
to the commencement of the period for which the Fixed Charge Coverage Ratio is
being calculated but prior to or simultaneously with the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the &#147;<I>Fixed Charge
Coverage Ratio Calculation Date</I>&#148;), then the Fixed Charge Coverage Ratio
shall be calculated giving <I>pro forma</I> effect to such incurrence,
assumption, guarantee, redemption, retirement or extinguishment of Indebtedness,
or such issuance or </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>69</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">redemption
of Disqualified Stock or Preferred Stock, as if the same had occurred on the
first day of the applicable four-quarter period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of making the computation referred to above, Investments, acquisitions,
dispositions, mergers, consolidations and disposed operations (as determined in
accordance with GAAP) that have been made by the Issuer or any of its Restricted
Subsidiaries during the four-quarter reference period or subsequent to such
reference period and on or prior to or simultaneously with the Fixed Charge
Coverage Ratio Calculation Date shall be calculated on a <I>pro forma</I> basis
assuming that all such Investments, acquisitions, dispositions, mergers,
consolidations and disposed operations (and the change in any associated fixed
charge obligations and the change in EBITDA resulting therefrom) had occurred on
the first day of the four-quarter reference period. If, since the beginning of
such period, any Person that subsequently became a Restricted Subsidiary or was
merged with or into the Issuer or any of its Restricted Subsidiaries since the
beginning of such period shall have made any Investment, acquisition,
disposition, merger, consolidation or disposed operation that would have
required adjustment pursuant to this definition, then the Fixed Charge Coverage
Ratio shall be calculated giving <I>pro forma</I> effect thereto for such period
as if such Investment, acquisition, disposition, merger, consolidation or
disposed operation had occurred on the first day of the applicable four-quarter
period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of this definition, whenever <I>pro forma</I> effect is to be given to a
transaction, the <I>pro forma</I> calculations shall be made in good faith by a
responsible financial or accounting officer of the Issuer. If any Indebtedness
bears a floating rate of interest and is being given <I>pro forma</I> effect,
the interest on such Indebtedness shall be calculated as if the rate in effect
on the Fixed Charge Coverage Ratio Calculation Date had been the applicable rate
for the entire period (taking into account any Hedging Obligations applicable to
such Indebtedness). Interest on a Capitalized Lease Obligation shall be deemed
to accrue at an interest rate reasonably determined by a responsible financial
or accounting officer of the Issuer to be the rate of interest implicit in such
Capitalized Lease Obligation in accordance with GAAP. For purposes of making the
computation referred to above, interest on any Indebtedness under a revolving
credit facility computed on a <I>pro forma</I> basis shall be computed based
upon the average daily balance of such Indebtedness during the applicable period
except as set forth in the first paragraph of this definition. Interest on
Indebtedness that may optionally be determined at an interest rate based upon a
factor of a prime or similar rate, a eurocurrency interbank offered rate or
other rate shall be deemed to have been based upon the rate actually chosen, or,
if none, then based upon such optional rate chosen as the Issuer may
designate.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Fixed
Charges</I>&#148; means, with respect to any Person for any period, the sum of:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Consolidated
Interest Expense of such Person for such period;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all cash
dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Preferred Stock during such period; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all cash
dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Disqualified Stock during such period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Foreign
Subsidiary</I>&#148; means, with respect to any Person, any Restricted Subsidiary of
such Person that is not organized or existing under the laws of the United
States, any state thereof or the District of Columbia and any Restricted
Subsidiary of such Foreign Subsidiary.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>GAAP</I>&#148;
means generally accepted accounting principles in the United States which are in
effect on the Issue Date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>General
Credit Facility</I>&#148; means the credit agreement to be entered into as of the
Issue Date by and among the Issuer, the lenders party thereto in their
capacities as lenders thereunder and Citicorp North America, Inc., as
Administrative Agent, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements, refundings or
refinancings thereof and any indentures, notes, debentures or credit facilities
or commercial paper facilities with banks or other institutional lenders or
investors that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>70</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">facility
or indenture that increases the amount borrowable thereunder or alters the
maturity thereof (<I>provided</I> that such increase in borrowings is permitted
under &#147;Certain Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance
of Disqualified Stock and Preferred Stock&#148; above).</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Government
Securities</I>&#148; means securities that are:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">which, in either case, are not
callable or redeemable at the option of the issuers thereof, and shall also
include a depository receipt issued by a bank (as defined in
Section&nbsp;3(a)(2) of the Securities Act), as custodian with respect to any
such Government Securities or a specific payment of principal of or interest on
any such Government Securities held by such custodian for the account of the
holder of such depository receipt; <I>provided</I> that (except as required by
law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the Government Securities or the specific payment of
principal of or interest on the Government Securities evidenced by such
depository receipt.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>guarantee</I>&#148;
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including letters of credit and reimbursement agreements in respect
thereof), of all or any part of any Indebtedness or other obligations.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Guarantee</I>&#148;
means the guarantee by any Guarantor of the Issuer&#146;s Obligations under the
Senior Indenture.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Guarantor</I>&#148;
means each Restricted Subsidiary that Guarantees the Senior Notes in accordance
with the terms of the Senior Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Hedging
Obligations</I>&#148; means, with respect to any Person, the obligations of such
Person under any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement, commodity swap agreement, commodity cap
agreement, commodity collar agreement, foreign exchange contract, currency swap
agreement or similar agreement providing for the transfer or mitigation of
interest rate or currency risks either generally or under specific
contingencies.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Holder</I>&#148;
means the Person in whose name a Senior Note is registered on the registrar&#146;s
books.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Indebtedness</I>&#148;
means, with respect to any Person, without duplication:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
indebtedness (including principal and premium) of such Person, whether or not
contingent:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in
respect of borrowed money;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">evidenced
by bonds, notes, debentures or similar instruments or letters of credit or
bankers&#146; acceptances (or, without duplication, reimbursement agreements in
respect thereof);</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">representing
the balance deferred and unpaid of the purchase price of any property (including
Capitalized Lease Obligations), except (i)&nbsp;any such balance that
constitutes a trade payable or similar obligation to a trade creditor, in each
case accrued in the ordinary course of business and (ii)&nbsp;any earn-out
obligations until such obligation becomes a liability on the balance sheet of
such Person in accordance with GAAP; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">representing
any Hedging Obligations;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>71</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">if
and to the extent that any of the foregoing Indebtedness (other than letters of
credit and Hedging Obligations) would appear as a liability upon a balance sheet
(excluding the footnotes thereto) of such Person prepared in accordance with
GAAP;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
the extent not otherwise included, any obligation by such Person to be liable
for, or to pay, as obligor, guarantor or otherwise on, the obligations of the
type referred to in clause&nbsp;(1) of a third Person (whether or not such items
would appear upon the balance sheet of the such obligor or guarantor), other
than by endorsement of negotiable instruments for collection in the ordinary
course of business; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
the extent not otherwise included, the obligations of the type referred to in
clause&nbsp;(1) of a third Person secured by a Lien on any asset owned by such
first Person, whether or not such Indebtedness is assumed by such first
Person;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I>, <I>however</I>,
that notwithstanding the foregoing, Indebtedness shall be deemed not to include
(a)&nbsp;Contingent Obligations incurred in the ordinary course of business or
(b)&nbsp;obligations under or in respect of Receivables Facilities.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Independent
Financial Advisor</I>&#148; means an accounting, appraisal, investment banking firm
or consultant to Persons engaged in Similar Businesses of nationally recognized
standing that is, in the good faith judgment of the Issuer, qualified to perform
the task for which it has been engaged.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Initial
Purchasers</I>&#148; means Goldman, Sachs&nbsp;&amp; Co., Citigroup Global
Markets&nbsp;Inc., Lehman Brothers&nbsp;Inc. and Wachovia Capital Markets,
LLC.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>insolvency
or liquidation proceeding</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any case
commenced by or against the Issuer or any Guarantor under any Bankruptcy Law for
the relief of debtors, any other proceeding for the reorganization,
recapitalization or adjustment or marshalling of the assets or liabilities of
the Issuer or any Guarantor, any receivership or assignment for the benefit of
creditors relating to the Issuer or any Guarantor or any similar case or
proceeding relative to the Issuer or any Guarantor or its creditors, as such, in
each case whether or not voluntary;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to the Issuer or any Guarantor, in each case whether or not
voluntary and whether or not involving bankruptcy or insolvency; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any other
proceeding of any type or nature in which substantially all claims of creditors
of the Issuer or any Guarantor are determined and any payment or distribution is
or may be made on account of such claims.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Investment
Grade Rating</I>&#148; means a rating equal to or higher than Baa3 (or the
equivalent) by Moody&#146;s and BBB- (or the equivalent) by S&amp;P, or an equivalent
rating by any other Rating Agency.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Investment
Grade Securities</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof (other than Cash
Equivalents);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">debt
securities or debt instruments with an Investment Grade Rating, but excluding
any debt securities or instruments constituting loans or advances among the
Issuer and its Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>72</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">investments
in any fund that invests exclusively in investments of the type described in
clauses (1)&nbsp;and (2)&nbsp;which fund may also hold immaterial amounts of
cash pending investment or distribution; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">corresponding
instruments in countries other than the United States customarily utilized for
high quality investments.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Investments</I>&#148;
means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of loans (including guarantees),
advances or capital contributions (excluding accounts receivable, trade credit,
advances to customers, commissions, travel and similar advances to officers and
employees, in each case made in the ordinary course of business), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other
securities issued by any other Person and investments that are required by GAAP
to be classified on the balance sheet (excluding the footnotes) of the Issuer in
the same manner as the other investments included in this definition to the
extent such transactions involve the transfer of cash or other property. For
purposes of the definition of &#147;Unrestricted Subsidiary&#148; and the covenant
described under &#147;Certain Covenants&#151;Limitation on Restricted Payments&#148;:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">&#147;Investments&#148;
shall include the portion (proportionate to the Issuer&#146;s equity interest in such
Subsidiary) of the fair market value of the net assets of a Subsidiary of the
Issuer at the time that such Subsidiary is designated an Unrestricted
Subsidiary; <I>provided</I>, <I>however</I>, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Issuer shall be deemed to continue to
have a permanent &#147;Investment&#148; in an Unrestricted Subsidiary in an amount (if
positive) equal to:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer&#146;s &#147;Investment&#148; in such Subsidiary at the time of such redesignation;
<I>less</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
portion (proportionate to the Issuer equity interest in such Subsidiary) of the
fair market value of the net assets of such Subsidiary at the time of such
redesignation; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any property
transferred to or from an Unrestricted Subsidiary shall be valued at its fair
market value at the time of such transfer, in each case as determined in good
faith by the Issuer.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Investors</I>&#148;
means Kohlberg Kravis Roberts&nbsp;&amp; Co. L.P., GS Capital Partners VI Fund,
L.P. and funds managed by Citigroup Private Equity LP, and each of their
respective Affiliates but not including, however, any portfolio companies of any
of the foregoing.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Issue
Date</I>&#148; means July&nbsp;6, 2007.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Issuer</I>&#148;
has the meaning set forth in the first paragraph under &#147;General&#148;;
<I>provided</I> that when used in the context of determining the fair market
value of an asset or liability under the Senior Indenture other than in
calculating the ABL Facility Cap, &#147;Issuer&#148; shall be deemed to mean the board of
directors of the Issuer when the fair market value is equal to or in excess of
$50.0&nbsp;million (unless otherwise expressly stated).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Legal
Holiday</I>&#148; means a Saturday, a Sunday or a day on which commercial banking
institutions are not required to be open in the State of New York.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Lien</I>&#148;
means, with respect to any asset, any mortgage, lien (statutory or otherwise),
pledge, hypothecation, charge, security interest, preference, priority or
encumbrance of any kind in respect of such asset, whether or not filed, recorded
or otherwise perfected under applicable law, including any conditional sale or
other title retention agreement, any lease in the nature thereof, any option or
other agreement to sell or give a security interest in and any filing of or
agreement to give any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction; <I>provided</I> that in no event shall
an operating lease be deemed to constitute a Lien.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Moody&#146;s</I>&#148;
means Moody&#146;s Investors Service,&nbsp;Inc. and any successor to its rating
agency business.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Net
Income</I>&#148; means, with respect to any Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect
of Preferred Stock dividends.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>73</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Net
Proceeds</I>&#148; means the aggregate cash proceeds received by the Issuer or any of
its Restricted Subsidiaries in respect of any Asset Sale, including any cash
received upon the sale or other disposition of any Designated Non-cash
Consideration received in any Asset Sale, net of the direct costs relating to
such Asset Sale and the sale or disposition of such Designated Non-cash
Consideration, including legal, accounting and investment banking fees, and
brokerage and sales commissions, any relocation expenses incurred as a result
thereof, taxes paid or payable as a result thereof (after taking into account
any available tax credits or deductions and any tax sharing arrangements),
amounts required to be applied to the repayment of principal, premium, if any,
and interest on Senior Indebtedness required (other than required by
clause&nbsp;(1) of the second paragraph of &#147;Repurchase at the Option of
Holders&#151;Asset Sales&#148;) to be paid as a result of such transaction and any
deduction of appropriate amounts to be provided by the Issuer or any of its
Restricted Subsidiaries as a reserve in accordance with GAAP against any
liabilities associated with the asset disposed of in such transaction and
retained by the Issuer or any of its Restricted Subsidiaries after such sale or
other disposition thereof, including pension and other post-employment benefit
liabilities and liabilities related to environmental matters or against any
indemnification obligations associated with such transaction.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Obligations</I>&#148;
means any principal, interest (including any interest accruing subsequent to the
filing of a petition in bankruptcy, reorganization or similar proceeding at the
rate provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable state, federal or foreign law),
premium, penalties, fees, indemnifications, reimbursements (including
reimbursement obligations with respect to letters of credit and bankers&#146;
acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities, payable under the documentation governing any
Indebtedness.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Officer</I>&#148;
means the Chairman of the Board, the Chief Executive Officer, the President, any
Executive Vice President, Senior Vice President or Vice President, the Treasurer
or the Secretary of the Issuer.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Officer&#146;s
Certificate</I>&#148; means a certificate signed on behalf of the Issuer by an
Officer of the Issuer, who must be the principal executive officer, the
principal financial officer, the treasurer or the principal accounting officer
of the Issuer, that meets the requirements set forth in the Senior
Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Opinion
of Counsel</I>&#148; means a written opinion from legal counsel who is acceptable to
the Trustee. The counsel may be an employee of or counsel to the Issuer or the
Trustee.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Permitted
Asset Swap</I>&#148; means the concurrent purchase and sale or exchange of Related
Business Assets or a combination of Related Business Assets and cash or Cash
Equivalents between the Issuer or any of its Restricted Subsidiaries and another
Person; <I>provided</I>, that any cash or Cash Equivalents received must be
applied in accordance with the covenant described under &#147;Repurchase at the
Option of Holders&#151;Asset Sales.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Permitted
Holders</I>&#148; means each of the Investors, members of management of the Issuer
(or its direct or indirect parent) and any assignees of the equity commitments
of the Investors on the Issue Date who are (or will be pursuant to the
agreements referenced in &#147;The Transactions&#148; section included elsewhere in this
prospectus) holders of Equity Interests of the Issuer (or any of its direct or
indirect parent companies) and any group (within the meaning of
Section&nbsp;13(d)(3) or Section&nbsp;14(d)(2) of the Exchange Act or any
successor provision) of which any of the foregoing are members; <I>provided</I>
that, in the case of such group and without giving effect to the existence of
such group or any other group, such Investors, members of management and
assignees of the equity commitments of the Investors, collectively, have
beneficial ownership of more than 50% of the total voting power of the Voting
Stock of the Issuer or any of its direct or indirect parent companies.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Permitted
Investments</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment in the Issuer or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment in cash and Cash Equivalents or Investment Grade Securities;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>74</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment by the Issuer or any of its Restricted Subsidiaries in a Person that
is engaged in a Similar Business if as a result of such Investment:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Person becomes a Restricted Subsidiary; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Person, in one transaction or a series of related transactions, is merged or
consolidated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Issuer or a Restricted Subsidiary,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">and, in each case, any
Investment held by such Person; <I>provided,</I> that such Investment was not
acquired by such Person in contemplation of such acquisition, merger,
consolidation or transfer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment in securities or other assets not constituting cash, Cash Equivalents
or Investment Grade Securities and received in connection with an Asset Sale
made pursuant to the provisions described under &#147;Repurchase at the Option of
Holders&#151;Asset Sales&#148; or any other disposition of assets not constituting an
Asset Sale;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment existing on the Issue Date;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment acquired by the Issuer or any of its Restricted Subsidiaries:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in
exchange for any other Investment or accounts receivable held by the Issuer or
any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such
other Investment or accounts receivable; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">as
a result of a foreclosure by the Issuer or any of its Restricted Subsidiaries
with respect to any secured Investment or other transfer of title with respect
to any secured Investment in default;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Hedging
Obligations permitted under clause&nbsp;(11) of the second paragraph of the
covenant described in &#147;Certain Covenants&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment in a Similar Business having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause&nbsp;(8) that
are at that time outstanding, not to exceed $50.0&nbsp;million at the time of
such Investment (with the fair market value of each Investment being measured at
the time made and without giving effect to subsequent changes in value);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
the payment for which consists of Equity Interests (exclusive of Disqualified
Stock) of the Issuer or any of its direct or indirect parent companies;
<I>provided</I>, <I>however</I>, that such Equity Interests will not increase
the amount available for Restricted Payments under clause&nbsp;(3) of the first
paragraph under the covenant described in &#147;Certain Covenants&#151;Limitations on
Restricted Payments&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">guarantees of
Indebtedness permitted under the covenant described in &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
transaction to the extent it constitutes an Investment that is permitted and
made in accordance with the provisions of the second paragraph of the covenant
described under &#147;Certain Covenants&#151;Transactions with Affiliates&#148; (except
transactions described in clauses (2), (5)&nbsp;and (9)&nbsp;of such
paragraph);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">additional
Investments having an aggregate fair market value, taken together with all other
Investments made pursuant to this clause&nbsp;(13) that are at that time
outstanding (without giving effect to the sale of an Unrestricted Subsidiary to
the extent the proceeds of such sale do not consist of cash or marketable
securities), not to </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>75</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">exceed
$100.0&nbsp;million at the time of such Investment (with the fair market value
of each Investment being measured at the time made and without giving effect to
subsequent changes in value);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
relating to a Receivables Subsidiary that, in the good faith determination of
the Issuer, are necessary or advisable to effect the ABL Facility or any
Receivables Facility, as the case may be;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">advances to,
or guarantees of Indebtedness of, employees not in excess of $10.0&nbsp;million
outstanding at any one time, in the aggregate;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(16)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">loans and
advances to officers, directors and employees for business-related travel
expenses, moving expenses and other similar expenses, in each case incurred in
the ordinary course of business or consistent with past practices or to fund
such Person&#146;s purchase of Equity Interests of the Issuer or any direct or
indirect parent company thereof; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(17)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment or the licensing or contribution of intellectual property pursuant to
joint marketing arrangements with other Persons.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Permitted
Liens</I>&#148; means, with respect to any Person:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">pledges or
deposits by such Person under workmen&#146;s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection with
bids, tenders, contracts (other than for the payment of Indebtedness) or leases
to which such Person is a party, or deposits to secure public or statutory
obligations of such Person or deposits of cash or U.S. government bonds to
secure surety or appeal bonds to which such Person is a party, or deposits as
security for contested taxes or import duties or for the payment of rent, in
each case incurred in the ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens imposed
by law, such as carriers&#146;, warehousemen&#146;s and mechanics&#146; Liens, in each case for
sums not yet overdue for a period of more than 30&nbsp;days or being contested
in good faith by appropriate proceedings or other Liens arising out of judgments
or awards against such Person with respect to which such Person shall then be
proceeding with an appeal or other proceedings for review if adequate reserves
with respect thereto are maintained on the books of such Person in accordance
with GAAP;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens for
taxes, assessments or other governmental charges not yet overdue for a period of
more than 30&nbsp;days or payable or subject to penalties for nonpayment or
which are being contested in good faith by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the books
of such Person in accordance with GAAP;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens in
favor of issuers of performance and surety bonds or bid bonds or with respect to
other regulatory requirements or letters of credit issued pursuant to the
request of and for the account of such Person in the ordinary course of its
business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">minor survey
exceptions, minor encumbrances, easements or reservations of, or rights of
others for, licenses, rights-of-way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning or other restrictions as
to the use of real properties or Liens incidental to the conduct of the business
of such Person or to the ownership of its properties which were not incurred in
connection with Indebtedness and which do not in the aggregate materially
adversely affect the value of said properties or materially impair their use in
the operation of the business of such Person;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
securing Indebtedness permitted to be incurred pursuant to clauses (1), (5),
(13), (14), (19)&nbsp;or (20)&nbsp;of the second paragraph under &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148;; <I>provided</I> that (a)&nbsp;Liens securing
Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred
pursuant to clause&nbsp;(14) relate only to Refinancing Indebtedness that serves
to refund or refinance Indebtedness, Disqualified Stock or Preferred Stock
incurred under clause&nbsp;(5) or (13)&nbsp;of the second paragraph under
&#147;Certain Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock,&#148; (b)&nbsp;Liens securing Indebtedness
permitted to be incurred pursuant to </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>76</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">clause&nbsp;(19)
extend only to the assets of Foreign Subsidiaries, (c)&nbsp;Liens securing
Indebtedness permitted to be incurred pursuant to clause&nbsp;(20) are solely on
acquired property or the assets of the acquired entity, as the case may be and
(d)&nbsp;Liens securing Indebtedness, Disqualified Stock or Preferred Stock
permitted to be incurred pursuant to clause&nbsp;(5) of the second paragraph
under &#147;Certain Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance
of Disqualified Stock and Preferred Stock&#148; extend only to the assets so
financed, purchased, constructed or improved;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
existing on the Issue Date (other than Liens in favor of the lenders under the
Senior Credit Facilities);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
property or shares of stock of a Person at the time such Person becomes a
Subsidiary; <I>provided</I>, <I>however</I>, such Liens are not created or
incurred in connection with, or in contemplation of, such other Person becoming
such a Subsidiary; <I>provided</I>, <I>further</I>, <I>however</I>, that such
Liens may not extend to any other property owned by the Issuer or any of its
Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
property at the time the Issuer or a Restricted Subsidiary acquired the
property, including any acquisition by means of a merger or consolidation with
or into the Issuer or any of its Restricted Subsidiaries; <I>provided</I>,
<I>however</I>, that such Liens are not created or incurred in connection with,
or in contemplation of, such acquisition; <I>provided</I>, <I>further</I>,
<I>however</I>, that the Liens may not extend to any other property owned by the
Issuer or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
securing Indebtedness or other obligations of a Restricted Subsidiary owing to
the Issuer or another Restricted Subsidiary permitted to be incurred in
accordance with the covenant described under &#147;Certain Covenants&#151;Limitation on
Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
securing Hedging Obligations so long as the related Indebtedness is, and is
permitted to be under the Senior Indenture, secured by a Lien on the same
property securing such Hedging Obligations;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
specific items of inventory or other goods and proceeds of any Person securing
such Person&#146;s obligations in respect of bankers&#146; acceptances issued or created
for the account of such Person to facilitate the purchase, shipment or storage
of such inventory or other goods;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">leases,
subleases, licenses or sublicenses granted to others in the ordinary course of
business which do not materially interfere with the ordinary conduct of the
business of the Issuer or any of its Restricted Subsidiaries and do not secure
any Indebtedness;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens arising
from Uniform Commercial Code financing statement filings regarding operating
leases entered into by the Issuer and its Restricted Subsidiaries in the
ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens in
favor of the Issuer or any Guarantor;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(16)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
equipment of the Issuer or any of its Restricted Subsidiaries granted in the
ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(17)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
accounts receivable and related assets incurred in connection with a Receivables
Facility;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(18)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens to
secure any refinancing, refunding, extension, renewal or replacement (or
successive refinancing, refunding, extensions, renewals or replacements) as a
whole, or in part, of any Indebtedness secured by any Lien referred to in the
foregoing clauses (6), (7), (8)&nbsp;and (9); <I>provided</I>, <I>however</I>,
that (a)&nbsp;such new Lien shall be limited to all or part of the same property
that secured the original Lien (plus improvements on such property), and
(b)&nbsp;the Indebtedness secured by such Lien at such time is not increased to
any amount greater than the sum of (i)&nbsp;the outstanding principal amount or,
if greater, committed amount of the Indebtedness described under clauses (6),
(7), (8)&nbsp;and (9)&nbsp;at the time the original Lien became a Permitted Lien
under the Senior Indenture, and (ii)&nbsp;an amount necessary to pay any fees
and expenses, including premiums, related to such refinancing, refunding,
extension, renewal or replacement;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>77</P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(19)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">deposits made
in the ordinary course of business to secure liability to insurance
carriers;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(20)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">other Liens
securing obligations incurred in the ordinary course of business which
obligations do not exceed $20.0&nbsp;million at any one time outstanding;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(21)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
securing judgments for the payment of money not constituting an Event of Default
under clause&nbsp;(5) under the caption &#147;Events of Default and Remedies&#148; so long
as such Liens are adequately bonded and any appropriate legal proceedings that
may have been duly initiated for the review of such judgment have not been
finally terminated or the period within which such proceedings may be initiated
has not expired;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(22)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens in
favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods in the
ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(23)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
(i)&nbsp;of a collection bank arising under Section&nbsp;4-210 of the Uniform
Commercial Code, or any comparable or successor provision, on items in the
course of collection, (ii)&nbsp;attaching to commodity trading accounts or other
commodity brokerage accounts incurred in the ordinary course of business, and
(iii)&nbsp;in favor of banking institutions arising as a matter of law
encumbering deposits (including the right of set-off) and which are within the
general parameters customary in the banking industry;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(24)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens deemed
to exist in connection with Investments in repurchase agreements permitted under
&#147;Certain Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock&#148;; <I>provided</I> that such Liens do not
extend to any assets other than those that are the subject of such repurchase
agreements;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(25)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens that
are contractual rights of set-off (i)&nbsp;relating to the establishment of
depository relations with banks not given in connection with the issuance of
Indebtedness, (ii)&nbsp;relating to pooled deposit or sweep accounts of the
Issuer or any of its Restricted Subsidiaries to permit satisfaction of overdraft
or similar obligations incurred in the ordinary course of business of the Issuer
and its Restricted Subsidiaries or (iii)&nbsp;relating to purchase orders and
other agreements entered into with customers of the Issuer or any of its
Restricted Subsidiaries in the ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(26)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
encumbering reasonable customary initial deposits and margin deposits and
similar Liens attaching to commodity trading accounts or other brokerage
accounts incurred in the ordinary course of business and not for speculative
purposes; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(27)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens arising
out of conditional sale, title retention, consignment or similar arrangements
for the sale or purchase of goods entered into by the Issuer or any Restricted
Subsidiary in the ordinary course of business.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of this definition, the term &#147;Indebtedness&#148; shall be deemed to include interest
on such Indebtedness.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Person</I>&#148;
means any individual, corporation, limited liability company, partnership, joint
venture, association, joint stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other
entity.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Plan of
Reorganization</I>&#148; means any plan of reorganization, plan of liquidation,
agreement for composition, or other type of plan of arrangement proposed in or
in connection with any insolvency or liquidation proceeding.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Preferred
Stock</I>&#148; means any Equity Interest with preferential rights of payment of
dividends or upon liquidation, dissolution or winding up.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Purchase
Money Obligations</I>&#148; means any Indebtedness incurred to finance or refinance
the acquisition, leasing, construction or improvement of property (real or
personal) or assets (other than Capital Stock), and whether acquired through the
direct acquisition of such property or assets, or otherwise.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>78</P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Qualified
Proceeds</I>&#148; means the fair value of assets that are used or useful in, or
Capital Stock of any Person engaged in, a Similar Business; <I>provided</I> that
the fair market value of any such assets or Capital Stock shall be determined by
the Issuer in good faith.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Rating
Agencies</I>&#148; means Moody&#146;s and S&amp;P or if Moody&#146;s or S&amp;P or both shall
not make a rating on the Senior Notes publicly available, a nationally
recognized statistical rating agency or agencies, as the case may be, selected
by the Issuer which shall be substituted for Moody&#146;s or S&amp;P or both, as the
case may be.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Receivables
Facility</I>&#148; means any of one or more receivables financing facilities as
amended, supplemented, modified, extended, renewed, restated or refunded from
time to time, the Obligations of which are non-recourse (except for customary
representations, warranties, covenants and indemnities made in connection with
such facilities) to the Issuer or any of its Restricted Subsidiaries (other than
a Receivables Subsidiary) pursuant to which the Issuer or any of its Restricted
Subsidiaries purports to sell its accounts receivable to either (a)&nbsp;a
Person that is not a Restricted Subsidiary or (b)&nbsp;a Receivables Subsidiary
that in turn funds such purchase by purporting to sell its accounts receivable
to a Person that is not a Restricted Subsidiary or by borrowing from such a
Person or from another Receivables Subsidiary that in turn funds itself by
borrowing from such a Person.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Receivables
Fees</I>&#148; means distributions or payments made directly or by means of discounts
with respect to any accounts receivable or participation interest therein issued
or sold in connection with, and other fees paid to a Person that is not a
Restricted Subsidiary in connection with any Receivables Facility.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Receivables
Subsidiary</I>&#148; means any Subsidiary formed for the purpose of facilitating or
entering into one or more Receivables Facilities, and in each case engages only
in activities reasonably related or incidental thereto.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Redemption
Date</I>&#148; has the meaning set forth under &#147;Optional Redemption&#151;Senior
Notes.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Registration
Rights Agreement</I>&#148; means the Registration Rights Agreement related to the
Senior Notes, dated as of the Issue Date, among the Issuer, the Guarantors and
the Initial Purchasers.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Related
Business Assets</I>&#148; means assets (other than cash or Cash Equivalents) used or
useful in a Similar Business; <I>provided</I> that any assets received by the
Issuer or a Restricted Subsidiary in exchange for assets transferred by the
Issuer or a Restricted Subsidiary will not be deemed to be Related Business
Assets if they consist of securities of a Person, unless upon receipt of the
securities of such Person, such Person would become a Restricted Subsidiary.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Restricted
Investment</I>&#148; means an Investment other than a Permitted Investment.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Restricted
Subsidiary</I>&#148; means, at any time, any direct or indirect Subsidiary of the
Issuer (including any Foreign Subsidiary) that is not then an Unrestricted
Subsidiary; <I>provided</I>, <I>however</I>, that upon an Unrestricted
Subsidiary&#146;s ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be
included in the definition of &#147;Restricted Subsidiary.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>S&amp;P</I>&#148;
means Standard&nbsp;&amp; Poor&#146;s, a division of The McGraw-Hill
Companies,&nbsp;Inc., and any successor to its rating agency business.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Sale and
Lease-Back Transaction</I>&#148; means any arrangement providing for the leasing by
the Issuer or any of its Restricted Subsidiaries of any real or tangible
personal property, which property has been or is to be sold or transferred by
the Issuer or such Restricted Subsidiary to a third Person in contemplation of
such leasing.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>SEC</I>&#148;
means the U.S. Securities and Exchange Commission.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Secured
Indebtedness</I>&#148; means any Indebtedness of the Issuer or any of its Restricted
Subsidiaries secured by a Lien.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>79</P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Securities
Act</I>&#148; means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Credit Facilities</I>&#148; means the ABL Facility and the General Credit
Facility.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Exchange Notes</I>&#148; means any notes issued in exchange for the Senior Notes
pursuant to the Registration Rights Agreement or similar agreement.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Indebtedness</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all
Indebtedness of the Issuer or any Guarantor outstanding under the Senior Credit
Facilities or the Senior Notes and related Guarantees (including interest
accruing on or after the filing of any petition in bankruptcy or similar
proceeding or for reorganization of the Issuer or any Guarantor (at the rate
provided for in the documentation with respect thereto, regardless of whether or
not a claim for post-filing interest is allowed in such proceedings)), and any
and all other fees, expense reimbursement obligations, indemnification amounts,
penalties, and other amounts (whether existing on the Issue Date or thereafter
created or incurred) and all obligations of the Issuer or any Guarantor to
reimburse any bank or other Person in respect of amounts paid under letters of
credit, acceptances or other similar instruments;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all Hedging
Obligations (and guarantees thereof) owing to a Lender (as defined in the Senior
Credit Facilities) or any Affiliate of such Lender (or any Person that was a
Lender or an Affiliate of such Lender at the time the applicable agreement
giving rise to such Hedging Obligation was entered into); <I>provided</I> that
such Hedging Obligations are permitted to be incurred under the terms of the
Senior Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any other
Indebtedness of the Issuer or any Guarantor permitted to be incurred under the
terms of the Senior Indenture, unless the instrument under which such
Indebtedness is incurred expressly provides that it is subordinated in right of
payment to the Senior Notes or any related Guarantee; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all
Obligations with respect to the items listed in the preceding clauses (1),
(2)&nbsp;and (3);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I>, <I>however</I>,
that Senior Indebtedness shall not include:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
obligation of such Person to the Issuer or any of its Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any liability
for federal, state, local or other taxes owed or owing by such Person;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any accounts
payable or other liability to trade creditors arising in the ordinary course of
business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Indebtedness or other Obligation of such Person which is subordinate or junior
in any respect to any other Indebtedness or other Obligation of such Person;
or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that portion
of any Indebtedness which at the time of incurrence is incurred in violation of
the Senior Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Subordinated Indenture</I>&#148; means the Senior Subordinated Indenture dated as of
the Issue Date, among the Issuer, the Guarantors, as guarantors and the Trustee,
as trustee, pursuant to which the Senior Subordinated Notes are issued.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Subordinated Notes</I>&#148; means the $725,000,000 aggregate principal amount of
11.875%/12.625% Senior Subordinated Toggle Notes due 2017 issued by the Issuer
under the Senior Subordinated Indenture on the Issue Date.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Significant
Subsidiary</I>&#148; means any Restricted Subsidiary that would be a &#147;significant
subsidiary&#148; as defined in Article&nbsp;1, Rule&nbsp;1-02 of Regulation&nbsp;S-X,
promulgated pursuant to the Securities Act, as such regulation is in effect on
the Issue Date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>80</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Similar
Business</I>&#148; means any business conducted or proposed to be conducted by the
Issuer and its Restricted Subsidiaries on the Issue Date or any business that is
similar, reasonably related, incidental or ancillary thereto.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Special
Interest</I>&#148; means all additional interest then owing pursuant to the
Registration Rights Agreement.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Sponsor
Management Agreement</I>&#148; means the management agreement between certain of the
management companies associated with the Investors and the Issuer.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Subordinated
Indebtedness</I>&#148; means, with respect to the Senior Notes,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Indebtedness of the Issuer which is by its terms subordinated in right of
payment to the Senior Notes, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Indebtedness of any Guarantor which is by its terms subordinated in right of
payment to the Guarantee of such entity of the Senior Notes.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Subsidiary</I>&#148;
means, with respect to any Person:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
corporation, association, or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of which more than
50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time of determination owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person or a combination thereof or is consolidated under
GAAP with such Person at such time; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
partnership, joint venture, limited liability company or similar entity of
which</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(x)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">more
than 50% of the capital accounts, distribution rights, total equity and voting
interests or general or limited partnership interests, as applicable, are owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof whether in the form
of membership, general, special or limited partnership or otherwise, and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(y)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Person or any Restricted Subsidiary of such Person is a controlling general
partner or otherwise controls such entity.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Total
Assets</I>&#148; means the total assets of the Issuer and its Restricted Subsidiaries
on a consolidated basis, as shown on the most recent consolidated balance sheet
of the Issuer or such other Person as may be expressly stated.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Transactions</I>&#148;
means the acquisition of all of the outstanding capital stock of Dollar General
Corporation, including the payment of the acquisition consideration in
connection therewith, the equity investment by the Investors and members of
management, the issuance of the Senior Notes and the Senior Subordinated Notes,
the tender offer and consent solicitation for any and all of the outstanding
8<SUP>5</SUP>/<SUB>8</SUB>% Notes due 2010 of Dollar General Corporation and the
execution of, and borrowings on the Issue Date under, the Senior Credit
Facilities and, the pledge and security arrangements in connection with the
foregoing, in each case as in effect on the Issue Date, and the related
transactions described in this prospectus under the section thereof entitled
&#147;The Transactions.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Treasury
Rate</I>&#148; means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity
(as compiled and published in the most recent Federal Reserve Statistical
Release H.15 (519)&nbsp;that has become publicly available at least two Business
Days prior to the Redemption Date (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to July&nbsp;15, 2011;
<I>provided</I>, <I>however</I>, that if the period from the Redemption Date to
July&nbsp;15, 2011 is less than one year, the weekly average yield on actually
traded United States Treasury securities adjusted to a constant maturity of one
year will be used.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>81</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Trust
Indenture Act</I>&#148; means the Trust Indenture Act of 1939, as amended (15 U.S.C
&#167;&#167; 77aaa-777bbbb).</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Unrestricted
Subsidiary</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Subsidiary of the Issuer which at the time of determination is an Unrestricted
Subsidiary (as designated by the Issuer, as provided below); and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Subsidiary of an Unrestricted Subsidiary.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
may designate any Subsidiary of the Issuer (including any existing Subsidiary
and any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Equity
Interests or Indebtedness of, or owns or holds any Lien on, any property of, the
Issuer or any Subsidiary of the Issuer (other than solely any Subsidiary of the
Subsidiary to be so designated); <I>provided</I> that:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Unrestricted Subsidiary must be an entity of which the Equity Interests entitled
to cast at least a majority of the votes that may be cast by all Equity
Interests having ordinary voting power for the election of directors or Persons
performing a similar function are owned, directly or indirectly, by the
Issuer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
designation complies with the covenants described under &#147;Certain
Covenants&#151;Limitation on Restricted Payments&#148;; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">each of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Subsidiary to be so designated; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">its
Subsidiaries</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px">has not at
the time of designation, and does not thereafter, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Issuer or any Restricted Subsidiary.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
<I>provided</I> that, immediately after giving effect to such designation, no
Default shall have occurred and be continuing and either:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
could incur at least $1.00 of additional Indebtedness pursuant to the Fixed
Charge Coverage Ratio test described in the first paragraph under &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148;; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Fixed
Charge Coverage Ratio for the Issuer and its Restricted Subsidiaries would be
greater than such ratio for the Issuer and its Restricted Subsidiaries
immediately prior to such designation, in each case on a <I>pro forma</I> basis
taking into account such designation.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
shall notify the Trustee of any such designation by promptly filing with the
Trustee a copy of the resolution of the board of directors of the Issuer or any
committee thereof giving effect to such designation and an Officer&#146;s Certificate
certifying that such designation complied with the foregoing provisions.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Voting
Stock</I>&#148; of any Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the board of directors
of such Person.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Weighted
Average Life to Maturity</I>&#148; means, when applied to any Indebtedness,
Disqualified Stock or Preferred Stock, as the case may be, at any date, the
quotient obtained by dividing:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>82</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the sum of
the products of the number of years from the date of determination to the date
of each successive scheduled principal payment of such Indebtedness or
redemption or similar payment with respect to such Disqualified Stock or
Preferred Stock multiplied by the amount of such payment; by</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the sum of
all such payments.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Wholly-Owned
Subsidiary</I>&#148; of any Person means a Subsidiary of such Person, 100% of the
outstanding Equity Interests of which (other than directors&#146; qualifying shares)
shall at the time be owned by such Person or by one or more Wholly-Owned
Subsidiaries of such Person.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>83</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>DESCRIPTION OF SENIOR SUBORDINATED NOTES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>General</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Certain terms
used in this description are defined under the subheading &#147;Certain
Definitions.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Buck
Acquisition Corp. issued $725,000,000 aggregate principal amount of
11.875%/12.625% senior subordinated toggle notes due 2017 (the &#147;<I>Senior
Subordinated Notes</I>&#148;) under an indenture dated July&nbsp;6, 2007 (the
&#147;<I>Senior Subordinated Indenture</I>&#148;) among Buck Acquisition Corp., the
Guarantors and U.S. Bank National Association (the successor trustee), as
trustee (the &#147;Successor Trustee&#148;). &nbsp;Immediately following the closing of
the offering and as part of the Transactions, Buck Acquisition Corp. merged with
and into Dollar General Corporation, with Dollar General Corporation continuing
as the surviving corporation and assuming all the obligations of Buck
Acquisition Corp. under the Senior Subordinated Indenture. In this description,
the terms &#147;<I>we</I>,&#148; &#147;<I>our</I>,&#148; &#147;<I>us</I>,&#148; &#147;<I>the Issuer</I>&#148; and
&#147;<I>the Company</I>&#148; refer to Buck Acquisition Corp. prior to the merger
described above and to Dollar General Corporation as the surviving corporation
in the merger, together with its consolidated Subsidiaries (except that &#147;the
Issuer&#148; does not include consolidated subsidiaries). As of the date of this
prospectus, $655,891,000 aggregate principal amount of Senior Subordinated Notes
remained outstanding.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Effective
February 25, 2009 (the &#147;Effective Date&#148;), Wells Fargo Bank, National Association
(the &#147;Prior Trustee&#148;) resigned as Trustee under the Senior Subordinated
Indenture. &nbsp;The Company entered into an Instrument of Resignation,
Appointment and Acceptance (the &#147;Instrument of Resignation&#148;), effective as of
the Effective Date, with the Prior Trustee and the Successor Trustee. &nbsp;The
instrument of Resignation provides that, effective as of the Effective Date, (1)
the Prior Trustee assigns, transfers, delivers and confirms to the Successor
Trustee all of its rights, title, interest under the Senior Subordinated
Indenture and all of its rights, title, interests, capacities, privileges,
duties and responsibilities as Trustee under the Senior Subordinated Indenture;
(2) the Company accepts the resignation of the Prior Trustee as Trustee under
the Senior Subordinated Indenture and appoints the Successor Trustee as Trustee
under the Senior Subordinated Indenture; and (3) the Successor Trustee accepts
its appointment as successor Trustee, and shall be vested with all of the
rights, title, interests, capacities, privileges, duties and responsibilities of
the Trustee, under the Senior Subordinated Indenture. Nothing contained in the
Instrument of Resignation shall in any way affect the Company&#146;s obligations to
the Prior Trustee under Section 7.07 of the Senior Subordinated Indenture or any
lien created thereunder. In this description, the term &#147;Trustee&#148; refers to the
Prior Trustee during the period prior to the Effective Date and to the Successor
Trustee for the period commencing on the Effective Date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The following
description is only a summary of the material provisions of the Senior
Subordinated Indenture, does not purport to be complete and is qualified in its
entirety by reference to the provisions of that agreement, including the
definitions therein of certain terms used below. We urge you to read the Senior
Subordinated Indenture because it, and not this description, will define your
rights as Holders of Senior Subordinated Notes. You may request copies of the
Senior Subordinated Indenture at our address set forth under the heading
&#147;Summary.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Brief Description of the
Senior Subordinated Notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Notes:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are general
unsecured senior subordinated obligations of the Issuer;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are
subordinated in right of payment to all existing and future Senior Indebtedness
of the Issuer, including Indebtedness under the Issuer&#146;s Senior Credit
Facilities and the Issuer&#146;s Senior Notes;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are <I>pari
passu</I> in right of payment with all future unsecured Senior Subordinated
Indebtedness of the Issuer;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are
effectively subordinated to all Secured Indebtedness of the Issuer, including
Indebtedness under the Issuer&#146;s Senior Credit Facilities, to the extent of the
collateral securing such Indebtedness;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>84</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are senior
in right of payment to all future Subordinated Indebtedness of the Issuer;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are
structurally subordinated to any existing and future indebtedness and
liabilities of non-guarantor Subsidiaries, including the Issuer&#146;s Foreign
Subsidiaries and any Unrestricted Subsidiaries;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are
initially unconditionally guaranteed on a joint and several and senior
subordinated basis by each Restricted Subsidiary that guarantees the General
Credit Facility; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">are subject
to registration with the SEC pursuant to the Registration Rights Agreement.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Guarantees</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
Guarantors, as primary obligors and not merely as sureties, initially jointly
and severally fully and unconditionally guarantee, on a senior subordinated
basis, the performance and full and punctual payment when due, whether at
maturity, by acceleration or otherwise, of all obligations of the Issuer under
the Senior Subordinated Indenture and the Senior Subordinated Notes, whether for
payment of principal of, premium, if any, or interest or Special Interest in
respect of the Senior Subordinated Notes, expenses, indemnification or
otherwise, on the terms set forth in the Senior Subordinated Indenture by
executing the Senior Subordinated Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
Restricted Subsidiaries which guarantee the General Credit Facility initially
guarantee the Senior Subordinated Notes. Each Guarantee is a general unsecured
senior subordinated obligation of the applicable Guarantor, is subordinated in
right of payment to all existing and any future Senior Indebtedness of such
Guarantor, is <I>pari passu</I> in right of payment with any future Senior
Subordinated Indebtedness of such Guarantor, is effectively subordinated to all
Secured Indebtedness of such Guarantor to the extent of the value of the
collateral securing such Indebtedness, and will rank senior in right of payment
to any future Subordinated Indebtedness of such Guarantor. The Senior
Subordinated Notes are structurally subordinated to Indebtedness and other
liabilities of Subsidiaries of the Issuer that do not guarantee the Senior
Subordinated Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Not all of
the Issuer&#146;s Subsidiaries guarantee the Senior Subordinated Notes. In the event
of a bankruptcy, liquidation or reorganization of any of these non-Guarantor
Subsidiaries, the non-Guarantor Subsidiaries will pay the holders of their debt
and their trade creditors before they will be able to distribute any of their
assets to the Issuer. None of the Issuer&#146;s Subsidiaries which are Foreign
Subsidiaries, non-Wholly Owned Subsidiaries or any Receivables Subsidiaries will
guarantee the Senior Credit Facilities, the Senior Notes or the Senior
Subordinated Notes. Our Non-Guarantor Subsidiaries accounted for approximately
$97.9&nbsp;million of net revenues and approximately $26.2&nbsp;million of net
income, in each case, for 2008 and approximately $313.3&nbsp;million of total
assets, and approximately $250.5&nbsp;million of total liabilities, in each case
as of January 30, 2009. </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
obligations of each Guarantor under its Guarantee will be limited as necessary
to prevent the Guarantee from constituting a fraudulent conveyance under
applicable law.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Any entity
that makes a payment under its Guarantee will be entitled upon payment in full
of all guaranteed obligations under the Senior Subordinated Indenture to a
contribution from each other Guarantor in an amount equal to such other
Guarantor&#146;s <I>pro rata</I> portion of such payment based on the respective net
assets of all the Guarantors at the time of such payment determined in
accordance with GAAP.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If a
Guarantee were rendered voidable, it could be subordinated by a court to all
other indebtedness (including guarantees and other contingent liabilities) of
the Guarantor, and, depending on the amount of such indebtedness, a Guarantor&#146;s
liability on its Guarantee could be reduced to zero. See &#147;Risk Factors&#151;Risks
Related to the Notes&#151;Federal and state fraudulent transfer laws may permit a
court to void the guarantees, and, if that occurs, you may not receive any
payments on the notes.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>85</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">Each
Guarantee by a Guarantor will provide by its terms that it will be automatically
and unconditionally released and discharged upon:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 168px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -72px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 168px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -29px">(a)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 168px; MARGIN-BOTTOM: 13px">any sale,
exchange or transfer (by merger or otherwise) of the Capital Stock of such
Guarantor (including any sale, exchange or transfer), after which the applicable
Guarantor is no longer a Restricted Subsidiary or all or substantially all the
assets of such Guarantor, which sale, exchange or transfer is made in compliance
with the applicable provisions of the Senior Subordinated Indenture;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 168px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -29px">(b)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 168px; MARGIN-BOTTOM: 13px">the release
or discharge of the guarantee by such Guarantor of the Senior Credit Facilities
or such other guarantee that resulted in the creation of such guarantee, except
a discharge or release by or as a result of payment under such guarantee;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 168px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -29px">(c)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 168px; MARGIN-BOTTOM: 13px">the
designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted
Subsidiary in compliance with the applicable provisions of the Senior
Subordinated Indenture; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 168px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -29px">(d)</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 168px; MARGIN-BOTTOM: 13px">the
exercise by the Issuer of its legal defeasance option or covenant defeasance
option as described under &#147;Legal Defeasance and Covenant Defeasance&#148; or the
discharge of the Issuer&#146;s obligations under the Senior Subordinated Indenture in
accordance with the terms of the Senior Subordinated Indenture; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 91px">such
Guarantor delivering to the Trustee an Officer&#146;s Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for in the Senior
Subordinated Indenture relating to such transaction have been complied with.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Other Senior Subordinated
Indebtedness Versus Senior Subordinated Notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Only
Indebtedness of the Issuer or a Guarantor that is Senior Indebtedness ranks
senior to the Senior Subordinated Notes and the Guarantees in accordance with
the provisions of the Senior Subordinated Indenture. The Senior Subordinated
Notes and the Guarantees rank <I>pari passu</I> with all future Senior
Subordinated Indebtedness of the Issuer and the Guarantors.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
and the Guarantors agree in the Senior Subordinated Indenture not to incur any
Indebtedness that is subordinate or junior in right of payment to Senior
Indebtedness, unless such Indebtedness is Senior Subordinated Indebtedness of
the applicable person or is expressly subordinated in right of payment to Senior
Subordinated Indebtedness of such person. The Senior Subordinated Indenture does
not treat (i)&nbsp;unsecured Indebtedness as subordinated or junior to Secured
Indebtedness merely because it is unsecured or (ii)&nbsp;Senior Indebtedness as
subordinated or junior to any other Senior Indebtedness merely because it has a
junior priority with respect to the same collateral.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Payment of Senior
Subordinated Notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Neither the
Issuer nor any Guarantor are permitted to make payments of principal of or
premium, if any, or interest on the Senior Subordinated Notes (or pay any other
obligations relating to the Senior Subordinated Notes, including Special
Interest, fees, costs, expenses, indemnities and rescission or damage claims) or
make any deposit pursuant to the provisions described under &#147;Legal Defeasance
and Covenant Defeasance&#148; or &#147;Satisfaction and Discharge&#148; below and may not
purchase, redeem or otherwise retire any Senior Subordinated Notes
(collectively, &#147;<I>pay the Senior Subordinated Notes</I>&#148;) (except in the form
of Permitted Junior Securities) if either of the following occurs (a &#147;<I>Payment
Default</I>&#148;):</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>86</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Obligation on any Designated Senior Indebtedness of the Issuer is not paid in
full in cash when due (after giving effect to any applicable grace period);
or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
other default on Designated Senior Indebtedness of the Issuer occurs and the
maturity of such Designated Senior Indebtedness is accelerated in accordance
with its terms;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">unless, in either case, the
Payment Default has been cured or waived and any such acceleration has been
rescinded or such Designated Senior Indebtedness has been paid in full in cash.
Notwithstanding the foregoing, the Issuer is permitted to pay the Senior
Subordinated Notes if it and the Trustee receive written notice approving such
payment from the Representatives of all Designated Senior Indebtedness with
respect to which the Payment Default has occurred and is continuing.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">During the
continuance of any default other than a Payment Default (a &#147;<I>Non-Payment
Default</I>&#148;) with respect to any Designated Senior Indebtedness pursuant to
which the maturity thereof may be accelerated without further notice (except
such notice as may be required to effect such acceleration) or the expiration of
any applicable grace periods, the Issuer is not permitted to pay the Senior
Subordinated Notes (except in the form of Permitted Junior Securities) for a
period (a &#147;<I>Payment Blockage Period</I>&#148;) commencing upon the receipt by the
Trustee (with a copy to the Issuer) of written notice (a &#147;<I>Blockage
Notice</I>&#148;) of such default from the Representative of such Designated Senior
Indebtedness specifying an election to effect a Payment Blockage Period and
ending 179&nbsp;days thereafter. The Payment Blockage Period will end earlier if
such Payment Blockage Period is terminated:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">by
written notice to the Trustee and the Issuer from the Person or Persons who gave
such Blockage Notice;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">because
the default giving rise to such Blockage Notice is cured, waived or otherwise no
longer continuing; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">because
such Designated Senior Indebtedness has been discharged or repaid in full in
cash.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the provisions described above, unless the holders of such Designated Senior
Indebtedness or the Representative of such Designated Senior Indebtedness have
accelerated the maturity of such Designated Senior Indebtedness, the Issuer and
related Guarantors are permitted to resume paying the Senior Subordinated Notes
after the end of such Payment Blockage Period. The Senior Subordinated Notes
shall not be subject to more than one Payment Blockage Period in any consecutive
360-day period irrespective of the number of defaults with respect to Designated
Senior Indebtedness during such period; <I>provided</I> that if any Payment
Blockage Notice is delivered to the Trustee by or on behalf of the holders of
Designated Senior Indebtedness of the Issuer (other than the holders of
Indebtedness under the Senior Credit Facilities), a Representative of holders of
Indebtedness under the Senior Credit Facilities may give another Payment
Blockage Notice within such period. However, in no event may the total number of
days during which any Payment Blockage Period or Periods on the Senior
Subordinated Notes is in effect exceed 179&nbsp;days in the aggregate during any
consecutive 360-day period, and there must be at least 181&nbsp;days during any
consecutive 360-day period during which no Payment Blockage Period is in effect.
Notwithstanding the foregoing, however, no Default that existed or was
continuing on the date of delivery of any Blockage Notice to the Trustee will
be, or be made, the basis for a subsequent Blockage Notice unless such default
has been cured or waived for a period of not less than 90 consecutive days (it
being acknowledged that any subsequent action, or any breach of any financial
covenants during the period after the date of delivery of such initial Blockage
Notice, that, in either case, would give rise to a Non-Payment Default pursuant
to any provisions under which a Non-Payment Default previously existed or was
continuing shall constitute a new Non-Payment Default for this purpose).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Upon any
payment or distribution of the assets of the Issuer upon a total or partial
liquidation or dissolution or reorganization of or similar proceeding relating
to the Issuer or its property:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>87</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
holders of Senior Indebtedness of the Issuer will be entitled to receive payment
in full in cash of such Senior Indebtedness before the Holders are entitled to
receive any payment;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">until
the Senior Indebtedness of the Issuer is paid in full in cash, any payment or
distribution to which Holders would be entitled but for the subordination
provisions of the Senior Subordinated Indenture will be made to holders of such
Senior Indebtedness as their interests may appear, except that Holders may
receive Permitted Junior Securities; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">if
a distribution is made to Holders that, due to the subordination provisions,
should not have been made to them, such Holders are required to hold it in trust
for the holders of Senior Indebtedness of the Issuer and pay it over to them as
their interests may appear.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
subordination and payment blockage provisions described above will not prevent a
Default from occurring under the Senior Subordinated Indenture upon the failure
of the Issuer to pay principal, premium, if any, or interest with respect to the
Senior Subordinated Notes when due by their terms. If payment of the Senior
Subordinated Notes is accelerated because of an Event of Default, the Issuer or
the Trustee must promptly notify the holders of Designated Senior Indebtedness
or the Representative of such Designated Senior Indebtedness of the
acceleration. So long as there shall remain outstanding Senior Indebtedness
under the Senior Credit Facilities, a Blockage Notice with respect to the Senior
Credit Facilities may only be given by the respective administrative agents
thereunder unless otherwise agreed to in writing by the respective requisite
lenders named therein. If any Designated Senior Indebtedness is outstanding,
neither the Issuer nor any Guarantor may pay the Senior Subordinated Notes until
five Business Days after the Representatives of all the issues of Designated
Senior Indebtedness receive notice of such acceleration and, thereafter, may pay
the Senior Subordinated Notes only if the Senior Subordinated Indenture
otherwise permits payment at that time.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">A Guarantor&#146;s
obligations under its Guarantee are senior subordinated obligations. As such,
the rights of Holders to receive payment by a Guarantor pursuant to its
Guarantee will be subordinated in right of payment to the rights of holders of
Senior Indebtedness of such Guarantor. The terms of the subordination and
payment blockage provisions described above with respect to the Issuer&#146;s
obligations under the Senior Subordinated Notes apply equally to a Guarantor and
the obligations of such Guarantor under its Guarantee.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">A Holder by
its acceptance of Senior Subordinated Notes agrees to be bound by these
subordination provisions and authorizes and expressly directs the Trustee under
the Senior Subordinated Indenture, on its behalf, to take such action as may be
necessary or appropriate to effectuate the subordination provided for in the
Senior Subordinated Indenture and appoints the Trustee under the Senior
Subordinated Indenture its attorney-in-fact for such purpose.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">By reason of
the subordination provisions contained in the Senior Subordinated Indenture, in
the event of a liquidation or insolvency proceeding, creditors of the Issuer or
a Guarantor who are holders of Senior Indebtedness of the Issuer or such
Guarantor, as the case may be, may recover more, ratably, than the Holders, and
creditors of the Issuer or a Guarantor who are not holders of Senior
Indebtedness may recover less, ratably, than holders of Senior Indebtedness of
the Issuer or such Guarantor and may recover more, ratably, than the Holders.
See &#147;Risk Factors&#151;Risks Related to the Notes&#151;Your right to receive payments on
the senior subordinated notes will be junior to our existing and future senior
indebtedness, including borrowings under our new senior secured credit
facilities and the senior notes.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The terms of
the subordination provisions described above will not apply to payments from
money or the proceeds of Government Securities deposited in trust or with the
Trustee, as applicable, for the payment of principal of and interest on the
Senior Subordinated Notes pursuant to the provisions described under &#147;Legal
Defeasance and Covenant Defeasance&#148; or &#147;Satisfaction and Discharge,&#148; if the
subordination provisions described in this section were not violated at the time
the applicable amounts were deposited in trust or with the Trustee, as
applicable, pursuant to such sections.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>88</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><B>Paying
Agent and Registrar for the Senior Subordinated Notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
maintains one or more paying agents and a registrar for the Senior Subordinated
Notes with offices in the Borough of Manhattan, City of New York. As of the date
of this prospectus, the paying agent and the registrar for the Senior
Subordinated Notes is the Trustee.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The registrar
will maintain a register reflecting ownership of the Senior Subordinated Notes
outstanding from time to time and will make payments on and facilitate transfer
of Senior Subordinated Notes on behalf of the Issuer.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
may change the paying agents or the registrars without prior notice to the
Holders. The Issuer or any of its Subsidiaries may act as a paying agent or
registrar.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Transfer and Exchange</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">A Holder may
transfer or exchange Senior Subordinated Notes in accordance with the Senior
Subordinated Indenture. The registrar and the Trustee may require a Holder to
furnish appropriate endorsements and transfer documents in connection with a
transfer of Senior Subordinated Notes. Holders will be required to pay all taxes
due on transfer. The Issuer will not be required to transfer or exchange any
Senior Subordinated Note selected for redemption. Also, the Issuer will not be
required to transfer or exchange any Senior Subordinated Note for a period of
15&nbsp;days before a selection of Senior Subordinated Notes to be redeemed.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Principal, Maturity and
Interest</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
issued $725,000,000 in aggregate principal amount of Senior Subordinated Notes.
As of the date of this prospectus, $655,891,000 aggregate principal amount of
Senior Subordinated Notes remained outstanding. The Senior Subordinated Notes
will mature on July&nbsp;15, 2017. Subject to compliance with the covenant
described below under the caption &#147;Certain Covenants&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148; the Issuer
may issue additional Senior Subordinated Notes from time to time after this
offering under the Senior Subordinated Indenture (any such Senior Subordinated
Notes, &#147;<I>Additional Senior Subordinated Notes</I>&#148;). In addition, in
connection with the payment of PIK Interest or Partial PIK Interest in respect
of the Senior Subordinated Notes, the Issuer is entitled, without the consent of
the Holders, to increase the outstanding principal amount of the Senior
Subordinated Notes or issue additional Senior Subordinated Notes (the &#147;<I>PIK
Notes</I>&#148;) under the Senior Subordinated Indenture on the same terms and
conditions as the Senior Subordinated Notes (in each case, the &#147;<I>PIK
Payment</I>&#148;). The Senior Subordinated Notes, the PIK Notes and any Additional
Senior Subordinated Notes subsequently issued under the Senior Subordinated
Indenture, are treated as a single class for all purposes under the Senior
Subordinated Indenture, including waivers, amendments, redemptions and offers to
purchase. Unless the context requires otherwise, references to &#147;Senior
Subordinated Notes&#148; for all purposes of the Senior Subordinated Indenture and
this &#147;Description of Senior Subordinated Notes&#148; include any PIK Notes and
Additional Senior Subordinated Notes that are actually issued, and references to
&#147;principal amount&#148; of the Senior Subordinated Notes includes any increase in the
principal amount of the outstanding Senior Notes as a result of a PIK
Payment.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Interest on
the Senior Subordinated Notes is payable semi-annually in arrears on
January&nbsp;15 and July&nbsp;15, commencing on January&nbsp;15, 2008, to the
Holders of record on the immediately preceding January&nbsp;1 and July&nbsp;1.
Interest on the Senior Subordinated Notes accrues from the most recent date to
which interest has been paid or, if no interest has been paid, from and
including the Issue Date. Interest on the Senior Subordinated Notes will be
computed on the basis of a 360-day year comprised of twelve 30-day months. For
any interest payment period after the initial interest payment period and prior
to July&nbsp;15, 2011,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>89</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">The
Issuer may, at its option, elect to pay interest on the Senior Subordinated
Notes:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">entirely in
cash (&#147;<I>Cash Interest</I>&#148;);</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">entirely by
increasing the principal amount of the outstanding Senior Subordinated Notes or
by issuing PIK Notes (&#147;<I>PIK Interest</I>&#148;); or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">on 50% of
the outstanding principal amount of the Senior Subordinated Notes in cash and on
50% of the principal amount by increasing the principal amount of the
outstanding Senior Subordinated Notes or by issuing PIK Notes (&#147;<I>Partial PIK
Interest</I>&#148;).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
must elect the form of interest payment with respect to each interest period by
delivering a notice to the Trustee at least 30&nbsp;days prior to the beginning
of each interest period. The Trustee shall promptly deliver a corresponding
notice to the Holders. In the absence of such an election for any interest
period, interest on the Senior Subordinated Notes shall be payable according to
the election for the previous interest period. Interest for the first interest
period commencing on the Issue Date shall be payable entirely in cash. After
July&nbsp;15, 2011, the Issuer will make all interest payments on the Senior
Subordinated Notes entirely in cash. Notwithstanding anything to the contrary,
the payment of accrued interest in connection with any redemption of Senior
Subordinated Notes as described under &#147;&#151;Optional Redemption&#148; or &#147;Repurchase at
the Option of Holders&#148; shall be made solely in cash.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Cash Interest
on the Senior Subordinated Notes will accrue at a rate of 11.875% per annum and
be payable in cash. PIK Interest on the Senior Subordinated Notes will accrue at
a rate of 12.625% per annum and be payable (x)&nbsp;with respect to Senior
Subordinated Notes represented by one or more global notes registered in the
name of, or held by, The Depository Trust Company (&#147;<I>DTC</I>&#148;) or its nominee
on the relevant record date, by increasing the principal amount of the
outstanding global Senior Subordinated Note by an amount equal to the amount of
PIK Interest for the applicable interest period (rounded up to the nearest
$1,000) and (y)&nbsp;with respect to Senior Subordinated Notes represented by
certificated notes, by issuing PIK Notes in certificated form in an aggregate
principal amount equal to the amount of PIK Interest for the applicable period
(rounded up to the nearest whole dollar), and the Trustee will, at the request
of the Issuer, authenticate and deliver such PIK Notes in certificated form for
original issuance to the Holders on the relevant record date, as shown by the
records of the register of Holders. In the event that the Issuer elects to pay
Partial PIK Interest for any interest period, each Holder will be entitled to
receive Cash Interest in respect of 50% of the principal amount of the Senior
Subordinated Notes held by such Holder on the relevant record date and PIK
Interest in respect of 50% of the principal amount of the Senior Subordinated
Notes held by such Holder on the relevant record date. Following an increase in
the principal amount of the outstanding global Senior Subordinated Notes as a
result of a PIK Payment, such global Senior Subordinated Notes will bear
interest on such increased principal amount from and after the date of such PIK
Payment. Any PIK Notes issued in certificated form will be dated as of the
applicable interest payment date and will bear interest from and after such
date. All Senior Subordinated Notes issued pursuant to a PIK Payment will mature
on July&nbsp;15, 2017 and will be governed by, and subject to the terms,
provisions and conditions of, the Senior Subordinated Indenture and shall have
the same rights and benefits as the Senior Subordinated Notes issued on the
Issue Date. Any certificated PIK Notes will be issued with the description &#147;PIK&#148;
on the face of such PIK Note.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If the Senior
Subordinated Notes would otherwise constitute &#147;applicable high yield discount
obligations&#148; within the meaning of Section&nbsp;163(i)(1) of the Code, at the
end of each accrual period ending after the fifth anniversary of the Senior
Subordinated Notes&#146; issuance (each, an &#147;<I>AHYDO redemption date</I>&#148;), the
Issuer will be required to redeem for cash a portion of each Senior Subordinated
Note then outstanding equal to the &#147;Mandatory Principal Redemption Amount&#148; (such
redemption, a &#147;<I>Mandatory Principal Redemption</I>&#148;). The redemption price for
the portion of each Senior Subordinated Note redeemed pursuant to a Mandatory
Principal Redemption will be 100% of the principal amount of such portion plus
any accrued interest thereon on the date of redemption. The &#147;Mandatory Principal
Redemption Amount&#148; means, as of each AHYDO redemption date, the excess, if any,
of (a)&nbsp;the aggregate amount of accrued and unpaid interest and all accrued
and unpaid &#147;original issue discount&#148; (as defined in Section&nbsp;1273(a)(1) of
the Code) with respect to the Senior Subordinated Notes, over (b)&nbsp;an amount
equal to the product of (i)&nbsp;the &#147;issue price&#148; (as defined in Sections
1273(b) and 1274(a) of the Code) of the Senior Subordinated Notes multiplied by
(ii)&nbsp;the &#147;yield to maturity&#148; (as defined in the Treasury Regulation
Section&nbsp;1.1272-1(b)(1)(i)) of the Senior Subordinated Notes. No partial
redemption or repurchase of the Senior Subordinated Notes prior to any AHYDO
redemption date pursuant to any other provision of the Senior Subordinated
Indenture will </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>90</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">alter
the Issuer&#146;s obligation to make any Mandatory Principal Redemption with respect
to any Senior Subordinated Notes that remain outstanding on the AHYDO redemption
date.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Special
Interest</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Special
Interest may accrue on the Senior Subordinated Notes in certain circumstances
pursuant to the Registration Rights Agreement. Any Special Interest on the
Senior Subordinated Notes will be payable in the same form elected by the Issuer
for payment of interest for the applicable interest payment period. All
references in the Senior Subordinated Indenture, in any context, to any interest
or other amount payable on or with respect to the Senior Subordinated Notes
shall be deemed to include any Special Interest pursuant to the Registration
Rights Agreement. Principal of, premium, if any, and interest on the Senior
Subordinated Notes will be payable at the office or agency of the Issuer
maintained for such purpose within the City and State of New York or, at the
option of the Issuer, payment of interest may be made by check mailed to the
Holders at their respective addresses set forth in the register of Holders;
<I>provided</I> that all payments of principal, premium, if any, and interest
with respect to the Senior Subordinated Notes represented by one or more global
notes registered in the name of or held by DTC or its nominee will be made by
wire transfer of immediately available funds to the accounts specified by the
Holder or Holders thereof. Until otherwise designated by the Issuer, the
Issuer&#146;s office or agency in New York will be the office of the Trustee
maintained for such purpose.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Mandatory Redemption; Offers
to Purchase; Open Market Purchases</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Except as set
forth in the last paragraph under &#147;Principal, Maturity and Interest,&#148; the Issuer
will not be required to make any mandatory redemption or sinking fund payments
with respect to the Senior Subordinated Notes. However, under certain
circumstances, the Issuer may be required to offer to purchase Senior
Subordinated Notes as described under the caption &#147;Repurchase at the Option of
Holders.&#148; The Issuer may from time to time acquire any Senior Subordinated Notes
by means other than a redemption, whether by tender offer, in open market
purchases, through negotiated transactions or otherwise.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Optional Redemption</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Except as set
forth below, the Issuer will not be entitled to redeem Senior Subordinated Notes
at its option prior to July&nbsp;15, 2012.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">At any time
prior to July&nbsp;15, 2012, the Issuer may redeem all or a part of the Senior
Subordinated Notes, upon not less than 30 nor more than 60&nbsp;days&#146; prior
notice mailed by first-class mail to the registered address of each Holder or
otherwise in accordance with the procedures of DTC, at a redemption price equal
to 100% of the principal amount of the Senior Subordinated Notes redeemed plus
the Applicable Premium as of, and accrued and unpaid interest and Special
Interest, if any, to the date of redemption (the &#147;<I>Redemption Date</I>&#148;),
subject to the rights of Holders on the relevant record date to receive interest
due on the relevant interest payment date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">On and after
July&nbsp;15, 2012, the Issuer may redeem the Senior Subordinated Notes, in
whole or in part, upon not less than 30 nor more than 60&nbsp;days&#146; prior notice
mailed by first-class mail to the registered address of each Holder or otherwise
in accordance with the procedures of DTC, at the redemption prices (expressed as
percentages of principal amount of the Senior Subordinated Notes to be redeemed)
set forth below, plus accrued and unpaid interest thereon and Special Interest,
if any, to the applicable Redemption Date, subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
interest payment date, if redeemed during the twelve-month period beginning on
July&nbsp;15 of each of the years indicated below:</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=577></TD>
<TD width=72></TD></TR>
<TR>
<TD vAlign=bottom width=577>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"><B>Year</B></P></TD>
<TD vAlign=bottom width=72>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Percentage</B></P></TD></TR>
<TR>
<TD vAlign=top width=577>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">2012</P></TD>
<TD vAlign=bottom width=72>
<P style="MARGIN: 0px" align=center>105.938%</P></TD></TR>
<TR>
<TD vAlign=top width=577>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">2013</P></TD>
<TD vAlign=bottom width=72>
<P style="MARGIN: 0px" align=center>103.958%</P></TD></TR>
<TR>
<TD vAlign=top width=577>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">2014</P></TD>
<TD vAlign=bottom width=72>
<P style="MARGIN: 0px" align=center>101.979%</P></TD></TR>
<TR>
<TD vAlign=top width=577>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">2015 and
thereafter</P></TD>
<TD vAlign=bottom width=72>
<P style="MARGIN: 0px" align=center>100.000%</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>91</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=577></TD>
<TD width=72></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
until July&nbsp;15, 2010, the Issuer may, at its option, on one or more
occasions redeem up to 35% of the aggregate principal amount of Senior
Subordinated Notes at a redemption price equal to 111.875% of the aggregate
principal amount thereof, plus accrued and unpaid interest thereon and Special
Interest, if any, to the applicable Redemption Date, subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant interest payment date, with the net cash proceeds of one or more Equity
Offerings; <I>provided</I> that at least 50% of the sum of the original
aggregate principal amount of Senior Subordinated Notes issued under the Senior
Subordinated Indenture and the original principal amount of any Additional
Senior Subordinated Notes issued under the Senior Subordinated Indenture after
the Issue Date remains outstanding immediately after the occurrence of each such
redemption; <I>provided further</I> that each such redemption occurs within
90&nbsp;days of the date of closing of each such Equity Offering.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notice of
redemption may be given prior to the redemption thereof, and any such redemption
or notice may, at the Issuer&#146;s discretion, be subject to one or more conditions
precedent, including, but not limited to, completion of an Equity Offering or
other corporate transaction.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If the Issuer
redeems less than all of the outstanding Senior Subordinated Notes, the Trustee
shall select the Senior Subordinated Notes to be redeemed in the manner
described under &#147;Repurchase at the Option of Holders&#151;Selection and Notice.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Repurchase at the Option of
Holders</B></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Change
of Control</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Notes provide that if a Change of Control occurs, unless the Issuer
has previously or concurrently mailed a redemption notice with respect to all
the outstanding Senior Subordinated Notes as described under &#147;Optional
Redemption,&#148; the Issuer will make an offer to purchase all of the Senior
Subordinated Notes pursuant to the offer described below (the &#147;<I>Change of
Control Offer</I>&#148;) at a price in cash (the &#147;<I>Change of Control Payment</I>&#148;)
equal to 101% of the aggregate principal amount thereof plus accrued and unpaid
interest and Special Interest, if any, to the date of purchase, subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date. Within 30&nbsp;days following any Change
of Control, the Issuer will send notice of such Change of Control Offer by
first-class mail, with a copy to the Trustee, to each Holder to the address of
such Holder appearing in the security register or otherwise in accordance with
the procedures of DTC, with the following information:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that a Change
of Control Offer is being made pursuant to the covenant entitled &#147;Change of
Control&#148; and that all Senior Subordinated Notes properly tendered pursuant to
such Change of Control Offer will be accepted for payment by the Issuer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the purchase
price and the purchase date, which will be no earlier than 30&nbsp;days nor
later than 60&nbsp;days from the date such notice is mailed (the &#147;<I>Change of
Control Payment Date</I>&#148;);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that any
Senior Subordinated Note not properly tendered will remain outstanding and
continue to accrue interest;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that unless
the Issuer defaults in the payment of the Change of Control Payment, all Senior
Subordinated Notes accepted for payment pursuant to the Change of Control Offer
will cease to accrue interest on the Change of Control Payment Date;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that Holders
electing to have any Senior Subordinated Notes purchased pursuant to a Change of
Control Offer will be required to surrender such Senior Subordinated Notes, with
the form entitled &#147;Option of Holder to Elect Purchase&#148; on the reverse of such
Senior Subordinated Notes completed, to the paying agent and at the address
specified in the notice prior to the close of business on the third Business Day
preceding the Change of Control Payment Date;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>92</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that Holders
will be entitled to withdraw their tendered Senior Subordinated Notes and their
election to require the Issuer to purchase such Senior Subordinated Notes;
<I>provided</I> that the paying agent receives, not later than the close of
business on the 30th day following the date of the Change of Control notice, a
telegram, facsimile transmission or letter setting forth the name of the Holder,
the principal amount of Senior Subordinated Notes tendered for purchase, and a
statement that such Holder is withdrawing its tendered Senior Subordinated Notes
and its election to have such Senior Subordinated Notes purchased;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that if the
Issuer is redeeming less than all of the Senior Subordinated Notes, the Holders
of the remaining Senior Subordinated Notes will be issued new Senior
Subordinated Notes that will be equal in principal amount to the unpurchased
portion of the Senior Subordinated Notes surrendered. The unpurchased portion of
the Senior Subordinated Notes must be equal to $2,000 or an integral multiple of
$1,000 in excess thereof; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the other
instructions, as determined by us, consistent with the covenant described
hereunder, that a Holder must follow.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will comply with the requirements of Rule&nbsp;14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent they are
applicable in connection with the repurchase of Senior Subordinated Notes
pursuant to a Change of Control Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of the Senior
Subordinated Indenture, the Issuer will comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations
described in the Senior Subordinated Indenture by virtue thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">On the Change
of Control Payment Date, the Issuer will, to the extent permitted by law,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">accept for
payment all Senior Subordinated Notes issued by it or portions thereof properly
tendered pursuant to the Change of Control Offer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">deposit with
the paying agent an amount equal to the aggregate Change of Control Payment in
respect of all Senior Subordinated Notes or portions thereof so tendered;
and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">deliver, or
cause to be delivered, to the Trustee for cancellation the Senior Subordinated
Notes so accepted together with an Officer&#146;s Certificate to the Trustee stating
that such Senior Subordinated Notes or portions thereof have been tendered to
and purchased by the Issuer.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The paying
agent will promptly mail to each Holder the Change of Control Payment for such
Senior Subordinated Notes, and the Trustee will promptly authenticate and mail
(or cause to be transferred by book entry) to each Holder a new Senior
Subordinated Note equal in principal amount to any unpurchased portion of the
Senior Subordinated Notes surrendered, if any; <I>provided</I> that each such
new Senior Subordinated Note will be in a principal amount of $2,000 or an
integral multiple of $1,000 in excess thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Credit Facilities and Senior Notes will limit, and future credit agreements or
other agreements relating to the Senior Indebtedness to which the Issuer becomes
a party may prohibit or limit, the Issuer from purchasing any Senior
Subordinated Notes as a result of a Change of Control. In the event a Change of
Control occurs at a time when the Issuer is prohibited from purchasing the
Senior Subordinated Notes, the Issuer could seek the consent of its lenders and
the holders of the Senior Notes to permit the purchase of the Senior
Subordinated Notes or could attempt to refinance the borrowings and Senior Notes
that contain such prohibition. In such case, the Issuer&#146;s failure to purchase
tendered Senior Subordinated Notes would constitute an Event of Default under
the Senior Subordinated Indenture. If, as a result thereof, a default occurs
with respect to any Senior Indebtedness, the subordination provisions in the
Senior Subordinated Indenture would restrict payments to the Holders under
certain circumstances. The Senior Credit Facilities will, and future credit
agreements or other agreements relating to Senior Indebtedness to which the
Issuer becomes a party may, provide that certain change of control events with
respect to the Issuer would constitute a default thereunder (including a Change
of Control under the Senior Subordinated Indenture). If we experience a change
of control that triggers a default under our Senior Credit Facilities, we could
seek a waiver of such default or seek to refinance our Senior Credit Facilities.
In the event we do not obtain such a </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>93</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">waiver
or refinance the Senior Credit Facilities, such default could result in amounts
outstanding under our Senior Credit Facilities being declared due and payable
and could cause a Receivables Facility to be wound down.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Our ability
to pay cash to the Holders following the occurrence of a Change of Control may
be limited by our then-existing financial resources. Therefore, sufficient funds
may not be available when necessary to make any required repurchases.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Change of
Control purchase feature of the Senior Subordinated Notes may in certain
circumstances make more difficult or discourage a sale or takeover of us and,
thus, the removal of incumbent management. The Change of Control purchase
feature is a result of negotiations between the Initial Purchasers and us. After
the Issue Date, we have no present intention to engage in a transaction
involving a Change of Control, although it is possible that we could decide to
do so in the future. Subject to the limitations discussed below, we could, in
the future, enter into certain transactions, including acquisitions,
refinancings or other recapitalizations, that would not constitute a Change of
Control under the Senior Subordinated Indenture, but that could increase the
amount of indebtedness outstanding at such time or otherwise affect our capital
structure or credit ratings. Restrictions on our ability to incur additional
Indebtedness are contained in the covenants described under &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148; and &#147;Certain Covenants&#151;Liens.&#148; Such restrictions in
the Senior Subordinated Indenture can be waived only with the consent of the
Holders of a majority in principal amount of the Senior Subordinated Notes then
outstanding. Except for the limitations contained in such covenants, however,
the Senior Subordinated Indenture will not contain any covenants or provisions
that may afford Holders protection in the event of a highly leveraged
transaction.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not be required to make a Change of Control Offer following a Change of
Control if a third party makes the Change of Control Offer in the manner, at the
times and otherwise in compliance with the requirements set forth in the Senior
Subordinated Indenture applicable to a Change of Control Offer made by us and
purchases all Senior Subordinated Notes validly tendered and not withdrawn under
such Change of Control Offer. Notwithstanding anything to the contrary herein, a
Change of Control Offer may be made in advance of a Change of Control,
conditional upon such Change of Control, if a definitive agreement is in place
for the Change of Control at the time the Change of Control Offer is made.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
definition of &#147;Change of Control&#148; includes a disposition of all or substantially
all of the assets of the Issuer to any Person. Although there is a limited body
of case law interpreting the phrase &#147;substantially all,&#148; there is no precise
established definition of the phrase under applicable law. Accordingly, in
certain circumstances there may be a degree of uncertainty as to whether a
particular transaction would involve a disposition of &#147;all or substantially all&#148;
of the assets of the Issuer. As a result, it may be unclear as to whether a
Change of Control has occurred and whether a Holder may require the Issuer to
make an offer to repurchase the Senior Subordinated Notes as described
above.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
provisions under the Senior Subordinated Indenture relating to the Issuer&#146;s
obligation to make an offer to repurchase the Senior Subordinated Notes as a
result of a Change of Control may be waived or modified with the written consent
of the Holders of a majority in principal amount of the Senior Subordinated
Notes.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Asset
Sales</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Indenture provides that the Issuer will not, and will not permit
any of its Restricted Subsidiaries to consummate, directly or indirectly, an
Asset Sale, unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer or
such Restricted Subsidiary, as the case may be, receives consideration at the
time of such Asset Sale at least equal to the fair market value (as determined
in good faith by the Issuer) of the assets sold or otherwise disposed of;
and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">except in the
case of a Permitted Asset Swap, at least 75% of the consideration therefor
received by the Issuer or such Restricted Subsidiary, as the case may be, is in
the form of cash or Cash Equivalents; <I>provided</I> that the amount of:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>94</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
liabilities (as shown on the Issuer&#146;s or such Restricted Subsidiary&#146;s most
recent balance sheet or in the footnotes thereto) of the Issuer or such
Restricted Subsidiary, other than liabilities that are by their terms
subordinated to the Senior Subordinated Notes, that are assumed by the
transferee of any such assets and for which the Issuer and all of its Restricted
Subsidiaries have been validly released by all creditors in writing,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
securities received by the Issuer or such Restricted Subsidiary from such
transferee that are converted by the Issuer or such Restricted Subsidiary into
cash (to the extent of the cash received) within 180&nbsp;days following the
closing of such Asset Sale, and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Designated Non-cash Consideration received by the Issuer or such Restricted
Subsidiary in such Asset Sale having an aggregate fair market value, taken
together with all other Designated Non-cash Consideration received pursuant to
this clause&nbsp;(c) that is at that time outstanding, not to exceed 5.0% of
Total Assets at the time of the receipt of such Designated Non-cash
Consideration, with the fair market value of each item of Designated Non-cash
Consideration being measured at the time received and without giving effect to
subsequent changes in value,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">shall be
deemed to be cash for purposes of this provision and for no other purpose.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Within 360
days after the receipt of any Net Proceeds of any Asset Sale, the Issuer or such
Restricted Subsidiary, at its option, may apply the Net Proceeds from such Asset
Sale,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
permanently reduce:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Obligations
under any Senior Indebtedness, the Senior Subordinated Notes or any other Senior
Subordinated Indebtedness, in each case, of the Issuer or any Guarantor (other
than Obligations owed to the Issuer or a Restricted Subsidiary) and, in the case
of Obligations under revolving credit facilities or other similar Indebtedness,
to correspondingly permanently reduce commitments with respect thereto;
<I>provided</I> that if the Issuer or any Restricted Subsidiary shall so reduce
Obligations under any Senior Subordinated Indebtedness, the Issuer or such
Guarantor will, equally and ratably, reduce Obligations under the Senior
Subordinated Notes by, at its option, (A)&nbsp;redeeming Senior Subordinated
Notes, (B)&nbsp;making an offer (in accordance with the procedures set forth
below for an Asset Sale Offer) to all Holders to purchase their Senior
Subordinated Notes at 100% of the principal amount thereof, <I>plus</I> the
amount of accrued and unpaid interest and Special Interest, if any, on the
principal amount of Senior Subordinated Notes to be repurchased or
(C)&nbsp;purchasing Senior Subordinated Notes through open market purchases (to
the extent such purchases are at a price equal to or higher than 100% of the
principal amount thereof) in a manner that complies with the Senior Subordinated
Indenture and applicable securities law; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of a Restricted Subsidiary that is not a Guarantor, other than Indebtedness owed
to the Issuer or another Restricted Subsidiary;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to make
(a)&nbsp;an Investment in any one or more businesses, <I>provided</I> that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (b)&nbsp;capital expenditures or
(c)&nbsp;acquisitions of other assets, in each of (a), (b)&nbsp;and (c), used or
useful in a Similar Business; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to make an
Investment in (a)&nbsp;any one or more businesses, <I>provided</I> that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (b)&nbsp;properties or
(c)&nbsp;acquisitions of other assets that, in each of (a), (b)&nbsp;and (c),
replace the businesses, properties and/or assets that are the subject of such
Asset Sale;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I> that, in the
case of clauses (2)&nbsp;and (3)&nbsp;above, a binding commitment shall be
treated as a permitted application of the Net Proceeds from the date of such
commitment so long as the Issuer, or such other Restricted </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>95</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Subsidiary
enters into such commitment with the good faith expectation that such Net
Proceeds will be applied to satisfy such commitment within 180&nbsp;days of such
commitment (an &#147;<I>Acceptable Commitment</I>&#148;) and, in the event any Acceptable
Commitment is later cancelled or terminated for any reason before the Net
Proceeds are applied in connection therewith, the Issuer or such Restricted
Subsidiary enters into another Acceptable Commitment (a &#147;<I>Second
Commitment</I>&#148;) within 180&nbsp;days of such cancellation or termination;
<I>provided</I>, <I>further</I>, that if any Second Commitment is later
cancelled or terminated for any reason before such Net Proceeds are applied,
then such Net Proceeds shall constitute Excess Proceeds.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Any Net
Proceeds from Asset Sales that are not invested or applied as provided and
within the time period set forth in the first sentence of the preceding
paragraph will be deemed to constitute &#147;<I>Excess Proceeds</I>.&#148; When the
aggregate amount of Excess Proceeds exceeds $75.0&nbsp;million, the Issuer shall
make an offer to all Holders and, if required or permitted by the terms of any
Senior Subordinated Indebtedness, to the holders of such Senior Subordinated
Indebtedness (an &#147;<I>Asset Sale Offer</I>&#148;), to purchase the maximum aggregate
principal amount of the Senior Subordinated Notes and such Senior Indebtedness
that is a minimum of $2,000 or an integral multiple of $1,000 in excess thereof
that may be purchased out of the Excess Proceeds at an offer price in cash in an
amount equal to 100% of the principal amount thereof, plus accrued and unpaid
interest and Special Interest, if any, to the date fixed for the closing of such
offer, in accordance with the procedures set forth in the Senior Subordinated
Indenture. The Issuer will commence an Asset Sale Offer with respect to Excess
Proceeds within ten Business Days after the date that Excess Proceeds exceed
$75.0&nbsp;million by mailing the notice required pursuant to the terms of the
Senior Subordinated Indenture, with a copy to the Trustee.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">To the extent
that the aggregate amount of Senior Subordinated Notes and such Senior
Subordinated Indebtedness tendered pursuant to an Asset Sale Offer is less than
the Excess Proceeds, the Issuer may use any remaining Excess Proceeds for
general corporate purposes, subject to other covenants contained in the Senior
Subordinated Indenture. If the aggregate principal amount of Senior Subordinated
Notes or such Senior Subordinated Indebtedness surrendered by such holders
thereof exceeds the amount of Excess Proceeds, the Trustee shall select the
Senior Subordinated Notes and such other Senior Subordinated Indebtedness to be
purchased on a <I>pro rata</I> basis based on the accreted value or principal
amount of the Senior Subordinated Notes or such Senior Subordinated Indebtedness
tendered. Upon completion of any such Asset Sale Offer, the amount of Excess
Proceeds shall be reset at zero. Additionally, the Issuer may, at its option,
make an Asset Sale Offer using proceeds from any Asset Sale at any time after
consummation of such Asset Sale; <I>provided</I> that such Asset Sale Offer
shall be in an aggregate amount of not less than $75.0&nbsp;million. Upon
consummation of such Asset Sale Offer, any Net Proceeds not required to be used
to purchase Senior Subordinated Notes shall not be deemed Excess Proceeds.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pending the
final application of any Net Proceeds pursuant to this covenant, the holder of
such Net Proceeds may apply such Net Proceeds temporarily to reduce Indebtedness
outstanding under a revolving credit facility or otherwise invest such Net
Proceeds in any manner not prohibited by the Senior Subordinated Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will comply with the requirements of Rule&nbsp;14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws or
regulations are applicable in connection with the repurchase of the Senior
Subordinated Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with the provisions of
the Senior Subordinated Indenture, the Issuer will comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations described in the Senior Subordinated Indenture by virtue
thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Credit Facilities and the Senior Notes will prohibit or limit (subject to
limited exceptions), and future credit agreements or other agreements to which
the Issuer becomes a party may limit or prohibit, the Issuer from purchasing any
Senior Subordinated Notes as a result of an Asset Sale Offer. In the event the
Issuer is required to make an Asset Sale Offer at a time when the Issuer is
prohibited from purchasing the Senior Subordinated Notes, the Issuer could seek
the consent of its lenders to permit the purchase of the Senior Subordinated
Notes or could attempt to refinance the borrowings and Senior Notes that contain
such prohibition. If the Issuer does not obtain such consent or repay such
borrowings or Senior Notes, the Issuer will remain prohibited from purchasing
the Senior Subordinated Notes. In such case, the Issuer&#146;s failure to purchase
tendered Senior Subordinated Notes would constitute an Event of Default under
the Senior Subordinated Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>96</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">The
provisions under the Senior Subordinated Indenture relative to the Issuer&#146;s
obligation to make an offer to repurchase the Senior Subordinated Notes as a
result of an Asset Sale may be waived or modified with the written consent of
the Holders of a majority in principal amount of the Senior Subordinated
Notes.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Selection
and Notice</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If the Issuer
is redeeming less than all of the Senior Subordinated Notes issued at any time,
the Trustee will select the Senior Subordinated Notes to be redeemed (a)&nbsp;if
the Senior Subordinated Notes are listed on any national securities exchange, in
compliance with the requirements of the principal national securities exchange
on which the Senior Subordinated Notes are listed, (b)&nbsp;on a <I>pro rata</I>
basis to the extent practicable or (c)&nbsp;by lot or such other similar method
in accordance with the procedures of DTC.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notices of
purchase or redemption shall be mailed by first-class mail, postage prepaid, at
least 30 but not more than 60&nbsp;days before the purchase or Redemption Date
to each Holder at such Holder&#146;s registered address or otherwise in accordance
with the procedures of DTC, except that redemption notices may be mailed more
than 60&nbsp;days prior to a Redemption Date if the notice is issued in
connection with a defeasance of the Senior Subordinated Notes or a satisfaction
and discharge of the Senior Subordinated Indenture. If any Senior Subordinated
Note is to be purchased or redeemed in part only, any notice of purchase or
redemption that relates to such Senior Subordinated Note shall state the portion
of the principal amount thereof that has been or is to be purchased or
redeemed.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will issue a new Senior Subordinated Note in a principal amount equal to the
unredeemed portion of the original Senior Subordinated Note in the name of the
Holder upon cancellation of the original Senior Subordinated Note. Senior
Subordinated Notes called for redemption become due on the date fixed for
redemption. On and after the Redemption Date, interest ceases to accrue on
Senior Subordinated Notes or portions thereof called for redemption.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Certain Covenants</B></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Limitation
on Restricted Payments</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">(I)
&nbsp;declare or pay any dividend or make any payment or distribution on account
of the Issuer&#146;s, or any of its Restricted Subsidiaries&#146; Equity Interests,
including any dividend or distribution payable in connection with any merger or
consolidation other than:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">dividends
or distributions by the Issuer payable solely in Equity Interests (other than
Disqualified Stock) of the Issuer; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">dividends
or distributions by a Restricted Subsidiary so long as, in the case of any
dividend or distribution payable on or in respect of any class or series of
securities issued by a Restricted Subsidiary other than a Wholly-Owned
Subsidiary, the Issuer or a Restricted Subsidiary receives at least its <I>pro
rata</I> share of such dividend or distribution in accordance with its Equity
Interests in such class or series of securities;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">(II)
&nbsp;purchase, redeem, defease or otherwise acquire or retire for value any
Equity Interests of the Issuer or any direct or indirect parent of the Issuer,
including in connection with any merger or consolidation;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">(III)
&nbsp;make any principal payment on, or redeem, repurchase, defease or otherwise
acquire or retire for value in each case, prior to any scheduled repayment,
sinking fund payment or maturity, any Subordinated Indebtedness, other than:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>97</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
permitted under clauses (8)&nbsp;and (9)&nbsp;of the covenant described under
&#147;&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock&#148;; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
purchase, repurchase or other acquisition of Subordinated Indebtedness purchased
in anticipation of satisfying a sinking fund obligation, principal installment
or final maturity, in each case due within one year of the date of purchase,
repurchase or acquisition; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">(IV)
&nbsp;make any Restricted Investment</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">(all such payments and other
actions set forth in clauses (I)&nbsp;through (IV)&nbsp;above (other than any
exception thereto) being collectively referred to as &#147;<I>Restricted
Payments</I>&#148;), unless, at the time of such Restricted Payment:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">no Default
shall have occurred and be continuing or would occur as a consequence
thereof;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">immediately
after giving effect to such transaction on a <I>pro forma</I> basis, the Issuer
could incur $1.00 of additional Indebtedness under the provisions of the first
paragraph of the covenant described under &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock&#148;; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Issuer and its Restricted Subsidiaries after the Issue Date
(including Restricted Payments permitted by clauses (1), (2)&nbsp;(with respect
to the payment of dividends on Refunding Capital Stock (as defined below)
pursuant to clause&nbsp;(b) thereof only), (6)(c), (9)&nbsp;and (14)&nbsp;of the
next succeeding paragraph, but excluding all other Restricted Payments permitted
by the next succeeding paragraph), is less than the sum of (without
duplication):</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">50%
of the Consolidated Net Income of the Issuer for the period (taken as one
accounting period) beginning May&nbsp;4, 2007, to the end of the Issuer&#146;s most
recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment, or, in the case such
Consolidated Net Income for such period is a deficit, minus 100% of such
deficit; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">100%
of the aggregate net cash proceeds and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received by
the Issuer since immediately after the Issue Date from the issue or sale of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(A)
Equity Interests of the Issuer, including Treasury Capital Stock (as defined
below), but excluding cash proceeds and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received
from the sale of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 192px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(x)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 192px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Equity
Interests to members of management, directors or consultants of the Issuer, any
direct or indirect parent company of the Issuer and the Issuer&#146;s Subsidiaries
after the Issue Date to the extent such amounts have been applied to Restricted
Payments made in accordance with clause&nbsp;(4) of the next succeeding
paragraph; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 192px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(y)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 192px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Designated
Preferred Stock; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">(B)
to the extent such net cash proceeds are actually contributed to the Issuer,
Equity Interests of the Issuer&#146;s direct or indirect parent companies (excluding
contributions of the proceeds from the sale of Designated Preferred Stock of
such companies or contributions to the extent such amounts have been applied to
Restricted Payments made in accordance with clause&nbsp;(4) of the next
succeeding paragraph); or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(ii)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">debt
securities of the Issuer that have been converted into or exchanged for such
Equity Interests of the Issuer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>98</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><I>provided</I>,
<I>however</I>, that this clause&nbsp;(b) shall not include the proceeds from
(V)&nbsp;Refunding Capital Stock (as defined below), (W)&nbsp;Equity Interests
of the Issuer or convertible debt securities of the Issuer sold to a Restricted
Subsidiary, as the case may be, (X)&nbsp;Disqualified Stock or debt securities
that have been converted into Disqualified Stock, (Y)&nbsp;Excluded
Contributions or (Z)&nbsp;transactions whose proceeds were used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to
clause&nbsp;(13)(a) of the second paragraph of &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148; solely to
the extent of such usage; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">100%
of the aggregate amount of cash and the fair market value, as determined in good
faith by the Issuer, of marketable securities or other property contributed to
the capital of the Issuer following the Issue Date (other than net cash proceeds
to the extent such net cash proceeds (i)&nbsp;have been used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to
clause&nbsp;(13)(a) of the second paragraph of &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148;
(ii)&nbsp;are contributed by a Restricted Subsidiary or (iii)&nbsp;constitute
Excluded Contributions; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
the extent not already included in Consolidated Net Income, 100% of the
aggregate amount received in cash and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received by
means of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
sale or other disposition (other than to the Issuer or a Restricted Subsidiary)
of Restricted Investments made by the Issuer or its Restricted Subsidiaries and
repurchases and redemptions of such Restricted Investments from the Issuer or
its Restricted Subsidiaries and repayments of loans or advances, and releases of
guarantees, which constitute Restricted Investments by the Issuer or its
Restricted Subsidiaries, in each case after the Issue Date; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(ii)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 96px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
sale (other than to the Issuer or a Restricted Subsidiary) of the stock of an
Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary (other
than in each case to the extent the Investment in such Unrestricted Subsidiary
was made by the Issuer or a Restricted Subsidiary pursuant to clause&nbsp;(7) of
the next succeeding paragraph or to the extent such Investment constituted a
Permitted Investment) or a dividend from an Unrestricted Subsidiary after the
Issue Date; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in
the case of the redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary after the Issue Date, the fair market value of the Investment in such
Unrestricted Subsidiary, as determined by the Issuer in good faith (or if such
fair market value exceeds $75.0&nbsp;million, in writing by an Independent
Financial Advisor), at the time of the redesignation of such Unrestricted
Subsidiary as a Restricted Subsidiary other than to the extent the Investment in
such Unrestricted Subsidiary was made by the Issuer or a Restricted Subsidiary
pursuant to clause&nbsp;(7) of the next succeeding paragraph or to the extent
such Investment constituted a Permitted Investment.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The foregoing
provisions will not prohibit:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the payment
of any dividend within 60&nbsp;days after the date of declaration thereof, if at
the date of declaration such payment would have complied with the provisions of
the Senior Subordinated Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a) the
redemption, repurchase, retirement or other acquisition of any Equity Interests
(&#147;<I>Treasury Capital Stock</I>&#148;) or Subordinated Indebtedness of the Issuer or
any Equity Interests of any direct or indirect parent company of the Issuer, in
exchange for, or out of the proceeds of the substantially concurrent sale (other
than to a Restricted Subsidiary) of, Equity Interests of the Issuer or any
direct or indirect parent company of the Issuer to the extent contributed to the
Issuer (in each case, other than any Disqualified Stock) (&#147;<I>Refunding Capital
Stock</I>&#148;) and (b)&nbsp;if immediately prior to the retirement of Treasury
Capital Stock, the declaration and payment of dividends thereon was permitted
under clause&nbsp;(6) of this paragraph, the declaration and payment of
dividends on the Refunding Capital Stock (other than Refunding Capital Stock the
proceeds of which were used to redeem, repurchase, retire or otherwise acquire
any Equity Interests of any direct or indirect parent company of the Issuer) in
an aggregate amount per year no greater than the aggregate amount of dividends
per annum that were declarable and payable on such Treasury Capital Stock
immediately prior to such retirement;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>99</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
redemption, repurchase or other acquisition or retirement of Subordinated
Indebtedness of the Issuer or a Guarantor made in exchange for, or out of the
proceeds of the substantially concurrent sale of, new Indebtedness of the Issuer
or a Guarantor, as the case may be, which is incurred in compliance with
&#147;&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock&#148; so long as:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
principal amount (or accreted value) of such new Indebtedness does not exceed
the principal amount of (or accreted value, if applicable), plus any accrued and
unpaid interest on, the Subordinated Indebtedness being so redeemed,
repurchased, acquired or retired for value, plus the amount of any reasonable
premium (including reasonable tender premiums), defeasance costs and any
reasonable fees and expenses incurred in connection with the issuance of such
new Indebtedness;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
new Indebtedness is subordinated to the Senior Subordinated Notes or the
applicable Guarantee at least to the same extent as such Subordinated
Indebtedness so purchased, exchanged, redeemed, repurchased, acquired or retired
for value;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
new Indebtedness has a final scheduled maturity date equal to or later than the
final scheduled maturity date of the Subordinated Indebtedness being so
redeemed, repurchased, acquired or retired; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
new Indebtedness has a Weighted Average Life to Maturity equal to or greater
than the remaining Weighted Average Life to Maturity of the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">a Restricted
Payment to pay for the repurchase, retirement or other acquisition or retirement
for value of Equity Interests (other than Disqualified Stock) of the Issuer or
any of its direct or indirect parent companies held by any future, present or
former employee, director or consultant of the Issuer, any of its Subsidiaries
or any of its direct or indirect parent companies pursuant to any management
equity plan or stock option plan or any other management or employee benefit
plan or agreement, including any Equity Interests rolled over by management of
the Company or any of its direct or indirect parent companies in connection with
the Transactions; <I>provided</I>, <I>however</I>, that the aggregate Restricted
Payments made under this clause&nbsp;(4) do not exceed in any calendar year
$12.5&nbsp;million (which shall increase to $25.0&nbsp;million subsequent to the
consummation of an underwritten public Equity Offering by the Issuer or any
direct or indirect parent entity of the Issuer) (with unused amounts in any
calendar year being carried over to succeeding calendar years subject to a
maximum (without giving effect to the following proviso) of $50.0&nbsp;million
in any calendar year (which shall increase to $100.0&nbsp;million subsequent to
the consummation of an underwritten public Equity Offering by the Issuer or any
direct or indirect parent corporation of the Issuer)); <I>provided further</I>
that such amount in any calendar year may be increased by an amount not to
exceed:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
cash proceeds from the sale of Equity Interests (other than Disqualified Stock)
of the Issuer and, to the extent contributed to the Issuer, Equity Interests of
any of the Issuer&#146;s direct or indirect parent companies, in each case to members
of management, directors or consultants of the Issuer, any of its Subsidiaries
or any of its direct or indirect parent companies that occurs after the Issue
Date to the extent the cash proceeds from the sale of such Equity Interests have
not otherwise been applied to the payment of Restricted Payments by virtue of
clause&nbsp;(3) of the preceding paragraph; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
cash proceeds of key man life insurance policies received by the Issuer or its
Restricted Subsidiaries after the Issue Date; <I>less</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of any Restricted Payments previously made with the cash proceeds
described in clauses (a)&nbsp;and (b)&nbsp;of this clause&nbsp;(4);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">and <I>provided</I>,
<I>further</I>, that cancellation of Indebtedness owing to the Issuer or any
Restricted Subsidiary from members of management of the Issuer, any of the
Issuer&#146;s direct or indirect parent companies or any of the Issuer&#146;s Restricted
Subsidiaries in connection with a repurchase of Equity Interests of the Issuer
or any of its direct or </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>100</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">indirect
parent companies will not be deemed to constitute a Restricted Payment for
purposes of this covenant or any other provision of the Senior Subordinated
Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Issuer or any of its Restricted Subsidiaries or any
class or series of Preferred Stock of any Restricted Subsidiary issued in
accordance with the covenant described under &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock&#148; to the
extent such dividends are included in the definition of &#147;Fixed Charges&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a) &nbsp;the
declaration and payment of dividends to holders of any class or series of
Designated Preferred Stock (other than Disqualified Stock) issued by the Issuer
after the Issue Date;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">(b) &nbsp;the
declaration and payment of dividends to a direct or indirect parent company of
the Issuer, the proceeds of which will be used to fund the payment of dividends
to holders of any class or series of Designated Preferred Stock (other than
Disqualified Stock) of such parent company issued after the Issue Date;
<I>provided</I> that the amount of dividends paid pursuant to this
clause&nbsp;(b) shall not exceed the aggregate amount of cash actually
contributed to the Issuer from the sale of such Designated Preferred Stock;
or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">(c) &nbsp;the
declaration and payment of dividends on Refunding Capital Stock that is
Preferred Stock in excess of the dividends declarable and payable thereon
pursuant to clause&nbsp;(2) of this paragraph;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I>, <I>however</I>,
in the case of each of (a), (b)&nbsp;and (c)&nbsp;of this clause&nbsp;(6), that
for the most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date of issuance of
such Designated Preferred Stock or the declaration of such dividends on
Refunding Capital Stock that is Preferred Stock, after giving effect to such
issuance or declaration on a <I>pro forma</I> basis, the Issuer and its
Restricted Subsidiaries on a consolidated basis would have had a Fixed Charge
Coverage Ratio of at least 2.00 to 1.00;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
in Unrestricted Subsidiaries having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause&nbsp;(7) that
are at the time outstanding, without giving effect to the sale of an
Unrestricted Subsidiary to the extent the proceeds of such sale do not consist
of cash or marketable securities, not to exceed $50.0&nbsp;million at the time
of such Investment (with the fair market value of each Investment being measured
at the time made and without giving effect to subsequent changes in value);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">repurchases
of Equity Interests deemed to occur upon exercise of stock options or warrants
if such Equity Interests represent a portion of the exercise price of such
options or warrants;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
declaration and payment of dividends on the Issuer&#146;s common stock (or the
payment of dividends to any direct or indirect parent entity to fund a payment
of dividends on such entity&#146;s common stock), following consummation of the first
public offering of the Issuer&#146;s common stock or the common stock of any of its
direct or indirect parent companies after the Issue Date, of up to 6% per annum
of the net cash proceeds received by or contributed to the Issuer in or from any
such public offering, other than public offerings with respect to the Issuer&#146;s
common stock registered on Form&nbsp;S-8 and other than any public sale
constituting an Excluded Contribution;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Restricted
Payments that are made with Excluded Contributions;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">other
Restricted Payments in an aggregate amount taken together with all other
Restricted Payments made pursuant to this clause&nbsp;(11) not to exceed
$100.0&nbsp;million at the time made;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">distributions
or payments of Receivables Fees;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Restricted Payment made as part of the Transactions and the fees and expenses
related thereto or used to fund amounts owed to Affiliates (including dividends
to any direct or indirect parent of the Issuer to permit payment by such parent
of such amount), in each case to the extent permitted by the covenant described
under &#147;&#151;Transactions with Affiliates&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>101</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
repurchase, redemption or other acquisition or retirement for value of any
Subordinated Indebtedness in accordance with the provisions similar to those
described under the captions &#147;Repurchase at the Option of Holders&#151;Change of
Control&#148; and &#147;Repurchase at the Option of Holders&#151;Asset Sales&#148;; <I>provided</I>
that all Senior Subordinated Notes tendered by Holders in connection with a
Change of Control Offer or Asset Sale Offer, as applicable, have been
repurchased, redeemed or acquired for value;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
declaration and payment of dividends by the Issuer to, or the making of loans
to, any direct or indirect parent in amounts required for any direct or indirect
parent companies to pay, in each case without duplication,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">franchise
and excise taxes and other fees, taxes and expenses required to maintain their
corporate existence;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">foreign,
federal, state and local income taxes, to the extent such income taxes are
attributable to the income of the Issuer and its Restricted Subsidiaries and, to
the extent of the amount actually received from its Unrestricted Subsidiaries,
in amounts required to pay such taxes to the extent attributable to the income
of such Unrestricted Subsidiaries; <I>provided</I> that in each case the amount
of such payments in any fiscal year does not exceed the amount that the Issuer
and its Restricted Subsidiaries would be required to pay in respect of foreign,
federal, state and local taxes for such fiscal year were the Issuer, its
Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent
described above) to pay such taxes separately from any such parent entity;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">customary
salary, bonus and other benefits payable to officers and employees of any direct
or indirect parent company of the Issuer to the extent such salaries, bonuses
and other benefits are attributable to the ownership or operation of the Issuer
and its Restricted Subsidiaries;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">general
corporate operating and overhead costs and expenses of any direct or indirect
parent company of the Issuer to the extent such costs and expenses are
attributable to the ownership or operation of the Issuer and its Restricted
Subsidiaries; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">fees
and expenses other than to Affiliates of the Issuer related to any unsuccessful
equity or debt offering of such parent entity;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I>, <I>however</I>,
that at the time of, and after giving effect to, any Restricted Payment
permitted under clause&nbsp;(11), no Default shall have occurred and be
continuing or would occur as a consequence thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">As of the
Issue Date, all of the Issuer&#146;s Subsidiaries will be Restricted Subsidiaries.
The Issuer will not permit any Unrestricted Subsidiary to become a Restricted
Subsidiary except pursuant to the last sentence of the definition of
&#147;Unrestricted Subsidiary.&#148; For purposes of designating any Restricted Subsidiary
as an Unrestricted Subsidiary, all outstanding Investments by the Issuer and its
Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so
designated will be deemed to be Restricted Payments in an amount determined as
set forth in the last sentence of the definition of &#147;Investment.&#148; Such
designation will be permitted only if a Restricted Payment in such amount would
be permitted at such time, whether pursuant to the first paragraph of this
covenant or under clause&nbsp;(7), (10)&nbsp;or (11)&nbsp;of the second
paragraph of this covenant, or pursuant to the definition of &#147;Permitted
Investments,&#148; and if such Subsidiary otherwise meets the definition of an
Unrestricted Subsidiary. Unrestricted Subsidiaries will not be subject to any of
the restrictive covenants set forth in the Senior Subordinated Indenture.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the foregoing provisions of this covenant, the Issuer will not, and will not
permit any of its Restricted Subsidiaries to, pay any cash dividend or make any
cash distribution on or in respect of the Issuer&#146;s Capital Stock or purchase for
cash or otherwise acquire for cash any Capital Stock of the Issuer or any direct
or indirect parent of the Issuer, for the purpose of paying any cash dividend or
making any cash distribution to, or acquiring Capital Stock of any direct or
indirect parent of the Issuer for cash from, the Investors, or Guarantee any
Indebtedness of any Affiliate of the Issuer for the purpose of paying such
dividend, making such distribution or so acquiring such Capital Stock to or from
the Investors, in each case by means of utilization of the cumulative Restricted
Payment credit provided by the first paragraph of this covenant, or the
exceptions provided by clauses (1), </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>102</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">(7)&nbsp;or
(11)&nbsp;of the second paragraph of this covenant or clauses (8)&nbsp;or
(13)&nbsp;of the definition of &#147;Permitted Investments,&#148; unless at the time and
after giving effect to such payment, the Consolidated Leverage Ratio of the
Issuer would be equal to or less than 6.00:1.00.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Limitation
on Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, issue, assume, guarantee or otherwise become directly
or indirectly liable, contingently or otherwise (collectively, &#147;<I>incur</I>&#148;
and collectively, an &#147;<I>incurrence</I>&#148;) with respect to any Indebtedness
(including Acquired Indebtedness), and the Issuer will not issue any shares of
Disqualified Stock and will not permit any Restricted Subsidiary to issue any
shares of Disqualified Stock or Preferred Stock; <I>provided</I>,
<I>however</I>, that the Issuer may incur Indebtedness (including Acquired
Indebtedness) or issue shares of Disqualified Stock, and any of its Restricted
Subsidiaries may incur Indebtedness (including Acquired Indebtedness), issue
shares of Disqualified Stock and issue shares of Preferred Stock, if the Fixed
Charge Coverage Ratio on a consolidated basis for the Issuer and its Restricted
Subsidiaries&#146; most recently ended four fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred or such Disqualified Stock or Preferred
Stock is issued would have been at least 2.00 to 1.00, determined on a <I>pro
forma</I> basis (including a <I>pro forma</I> application of the net proceeds
therefrom), as if the additional Indebtedness had been incurred, or the
Disqualified Stock or Preferred Stock had been issued, as the case may be, and
the application of proceeds therefrom had occurred at the beginning of such
four-quarter period; <I>provided, further,</I> that Restricted Subsidiaries that
are not Guarantors may not incur Indebtedness or Disqualified Stock or Preferred
Stock if, after giving <I>pro forma</I> effect to such incurrence or issuance
(including a <I>pro forma</I> application of the net proceeds therefrom), more
than an aggregate of $250.0&nbsp;million of Indebtedness or Disqualified Stock
or Preferred Stock of Restricted Subsidiaries that are not Guarantors would be
outstanding pursuant to this paragraph and clauses (13)(b), (15)&nbsp;and
(20)&nbsp;below at such time.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The foregoing
limitations will not apply to:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
incurrence of Indebtedness under (x)&nbsp;Credit Facilities (other than the ABL
Facility) by the Issuer or any of its Restricted Subsidiaries and the issuance
and creation of letters of credit and bankers&#146; acceptances thereunder (with
letters of credit and bankers&#146; acceptances being deemed to have a principal
amount equal to the face amount thereof), up to an aggregate principal amount of
$2,625.0&nbsp;million outstanding at any one time and (y)&nbsp;the ABL Facility
by the Issuer or any of its Restricted Subsidiaries and the issuance and
creation of letters of credit and bankers&#146; acceptances thereunder (with letters
of credit and bankers&#146; acceptances being deemed to have a principal amount equal
to the face amount thereof), up to an aggregate principal amount equal to the
ABL Facility Cap;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
incurrence by the Issuer and any Guarantor of Indebtedness represented by the
Senior Subordinated Notes issued on the Issue Date (including any PIK Notes and
any Guarantee) and the Senior Subordinated Exchange Notes and related guarantees
of the Senior Subordinated Exchange Notes to be issued in exchange for the
Senior Subordinated Notes and the Guarantees pursuant to the Registration Rights
Agreement (other than any Additional Senior Subordinated Notes and related
guarantees);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
incurrence by the Issuer and any Guarantor of Indebtedness represented by the
Senior Notes and related guarantees, as well as any exchange notes and exchange
guarantees to be issued in exchange for the Senior Notes and related guarantees
pursuant a registration rights agreement;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of the Issuer and its Restricted Subsidiaries in existence on the Issue Date
(other than Indebtedness described in clauses (1), (2)&nbsp;and (3)&nbsp;of this
paragraph);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
consisting of Capitalized Lease Obligations and Purchase Money Obligations in a
principal amount not to exceed $250.0&nbsp;million (excluding the principal
amount of any Capitalized Lease Obligations or Purchase Money Obligations
relating to the purchase, lease or improvement of the Company&#146;s distribution
centers located in Fulton, Missouri, Indianola, Mississippi and Ardmore,
Oklahoma) in the aggregate at any one time outstanding together with all other
Indebtedness issued under this clause&nbsp;(5); so long as such Indebtedness
exists at the date of such purchase, lease or improvement, or is created within
270&nbsp;days thereafter;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>103</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
incurred by the Issuer or any of its Restricted Subsidiaries constituting
reimbursement obligations with respect to letters of credit issued in the
ordinary course of business, including letters of credit in respect of workers&#146;
compensation or employee health claims, or other Indebtedness with respect to
reimbursement-type obligations regarding workers&#146; compensation, or employee
health claims; <I>provided</I>, <I>however</I>, that upon the drawing of such
letters of credit or the incurrence of such Indebtedness, such obligations are
reimbursed within 30&nbsp;days following such drawing or incurrence;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
arising from agreements of the Issuer or its Restricted Subsidiaries providing
for indemnification, adjustment of purchase price or similar obligations, in
each case, incurred or assumed in connection with the disposition of any
business, assets or a Subsidiary, other than guarantees of Indebtedness incurred
by any Person acquiring all or any portion of such business, assets or a
Subsidiary for the purpose of financing such acquisition; <I>provided</I>,
<I>however</I>, that such Indebtedness is not reflected on the balance sheet of
the Issuer, or any of its Restricted Subsidiaries (contingent obligations
referred to in a footnote to financial statements and not otherwise reflected on
the balance sheet will not be deemed to be reflected on such balance sheet for
purposes of this clause&nbsp;(7));</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of the Issuer to a Restricted Subsidiary; <I>provided</I> that any such
Indebtedness owing to a Restricted Subsidiary that is not a Guarantor is
expressly subordinated in right of payment to the Senior Subordinated Notes;
<I>provided</I>, <I>further</I>, that any subsequent issuance or transfer of any
Capital Stock or any other event which results in any Restricted Subsidiary
ceasing to be a Restricted Subsidiary or any other subsequent transfer of any
such Indebtedness (except to the Issuer or another Restricted Subsidiary) shall
be deemed, in each case, to be an incurrence of such Indebtedness not permitted
by this clause&nbsp;(8);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of a Restricted Subsidiary to the Issuer or another Restricted Subsidiary;
<I>provided</I> that if a Guarantor issues such Indebtedness to a Restricted
Subsidiary that is not a Guarantor (other than to any Restricted Subsidiary
engaged in the insurance business in order to provide insurance to the Issuer
and its Subsidiaries), such Indebtedness is expressly subordinated in right of
payment to the Guarantee of the Senior Subordinated Notes of such Guarantor;
<I>provided</I>, <I>further</I>, that any subsequent issuance or transfer of any
Capital Stock or any other event which results in any such Restricted Subsidiary
ceasing to be a Restricted Subsidiary or any other subsequent transfer of any
such Indebtedness (except to the Issuer or another Restricted Subsidiary) shall
be deemed, in each case, to be an incurrence of such Indebtedness not permitted
by this clause&nbsp;(9);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">shares of
Preferred Stock of a Restricted Subsidiary issued to the Issuer or another
Restricted Subsidiary; <I>provided</I> that any subsequent issuance or transfer
of any Capital Stock or any other event which results in any such Restricted
Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent
transfer of any such shares of Preferred Stock (except to the Issuer or another
of its Restricted Subsidiaries) shall be deemed in each case to be an issuance
of such shares of Preferred Stock not permitted by this clause&nbsp;(10);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Hedging
Obligations (excluding Hedging Obligations entered into for speculative
purposes) for the purpose of limiting interest rate risk with respect to any
Indebtedness permitted to be incurred pursuant to &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148; or
exchange rate risk or commodity pricing risk;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">obligations
in respect of performance, bid, appeal and surety bonds and completion
guarantees provided by the Issuer or any of its Restricted Subsidiaries in the
ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a)
Indebtedness or Disqualified Stock of the Issuer and Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or any Restricted Subsidiary equal to
100.0% of the net cash proceeds received by the Issuer since immediately after
the Issue Date from the issue or sale of Equity Interests of the Issuer or cash
contributed to the capital of the Issuer (in each case, other than Excluded
Contributions or proceeds of Disqualified Stock or sales of Equity Interests to
the Issuer or any of its Subsidiaries) as determined in accordance with clauses
(3)(b) and (3)(c) of the first paragraph of &#147;&#151;Limitation on Restricted Payments&#148;
to the extent such net cash proceeds or cash have not been applied pursuant to
such clauses to make Restricted Payments or to make other Investments, payments
or exchanges pursuant to the second paragraph of &#147;&#151;Limitation on Restricted
Payments&#148; or to make Permitted Investments (other than Permitted Investments
specified in clauses (1)&nbsp;and (3)&nbsp;of the definition thereof) and
(b)&nbsp;Indebtedness or Disqualified Stock of Issuer and Indebtedness,
Disqualified Stock or Preferred </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>104</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Stock
of the Issuer or any Restricted Subsidiary not otherwise permitted hereunder in
an aggregate principal amount or liquidation preference, which when aggregated
with the principal amount and liquidation preference of all other Indebtedness,
Disqualified Stock and Preferred Stock then outstanding and incurred pursuant to
this clause&nbsp;(13)(b), does not at any one time outstanding exceed
$250.0&nbsp;million; <I>provided</I>, <I>however</I> that on a <I>pro forma
basis</I>, together with any amounts incurred and outstanding by Restricted
Subsidiaries that are not Guarantors pursuant to the second proviso to the first
paragraph of this covenant and clauses (15)&nbsp;and (20), no more than
$250.0&nbsp;million of Indebtedness, Disqualified Stock or Preferred Stock at
any one time outstanding and incurred pursuant to this clause&nbsp;(13)(b) shall
be incurred by Restricted Subsidiaries that are not Guarantors (it being
understood that any Indebtedness, Disqualified Stock or Preferred Stock incurred
pursuant to this clause&nbsp;(13)(b) shall cease to be deemed incurred or
outstanding for purposes of this clause&nbsp;(13)(b) but shall be deemed
incurred for the purposes of the first paragraph of this covenant from and after
the first date on which the Issuer or such Restricted Subsidiary could have
incurred such Indebtedness, Disqualified Stock or Preferred Stock under the
first paragraph of this covenant without reliance on this
clause&nbsp;(13)(b));</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
incurrence or issuance by the Issuer or any Restricted Subsidiary of
Indebtedness, Disqualified Stock or Preferred Stock which serves to refund or
refinance any Indebtedness, Disqualified Stock or Preferred Stock of the Issuer
or any Restricted Subsidiary incurred as permitted under the first paragraph of
this covenant and clauses (2), (3), (4), (5)&nbsp;and (13)(a) above, this
clause&nbsp;(14) and clause&nbsp;(15) below or any Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or any Restricted Subsidiary issued to so
refund or refinance such Indebtedness, Disqualified Stock or Preferred Stock of
the Issuer or any Restricted Subsidiary including additional Indebtedness,
Disqualified Stock or Preferred Stock incurred to pay premiums (including
reasonable tender premiums), defeasance costs and fees in connection therewith
(the &#147;<I>Refinancing Indebtedness</I>&#148;) prior to its respective maturity;
<I>provided</I>, <I>however</I>, that such Refinancing Indebtedness:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">has
a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is
incurred which is not less than the remaining Weighted Average Life to Maturity
of the Indebtedness, Disqualified Stock or Preferred Stock being refunded or
refinanced,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
the extent such Refinancing Indebtedness refinances (i)&nbsp;Indebtedness
subordinated or <I>pari passu</I> to the Senior Subordinated Notes or any
Guarantee thereof, such Refinancing Indebtedness is subordinated or <I>pari
passu</I> to the Senior Subordinated Notes or the Guarantee at least to the same
extent as the Indebtedness being refinanced or refunded or
(ii)&nbsp;Disqualified Stock or Preferred Stock, such Refinancing Indebtedness
must be Disqualified Stock or Preferred Stock, respectively, and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">shall
not include Indebtedness, Disqualified Stock or Preferred Stock of a Subsidiary
of the Issuer that is not a Guarantor that refinances Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or a Guarantor;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">and <I>provided further</I> that
subclause (a)&nbsp;of this clause&nbsp;(14) will not apply to any refunding or
refinancing of any Indebtedness outstanding under a Credit Facility;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness,
Disqualified Stock or Preferred Stock of (x)&nbsp;the Issuer or a Restricted
Subsidiary incurred to finance an acquisition of any Person or assets or
(y)&nbsp;Persons that are acquired by the Issuer or any Restricted Subsidiary or
merged into the Issuer or a Restricted Subsidiary in accordance with the terms
of the Senior Subordinated Indenture; <I>provided</I> that after giving effect
to such acquisition or merger, either:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in the first sentence
of this covenant, or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Fixed Charge Coverage Ratio of the Issuer and the Restricted Subsidiaries is
greater than immediately prior to such acquisition or merger;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px"><I>provided</I>,
<I>however</I> that on a <I>pro forma</I> basis, together with amounts incurred
and outstanding pursuant to the second proviso to the first paragraph of this
covenant and clauses (13)(b) and (20), no more than $250.0&nbsp;million of
Indebtedness, Disqualified Stock or Preferred Stock at any one time outstanding
and </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>105</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">incurred
by Restricted Subsidiaries that are not Guarantors pursuant to this
clause&nbsp;(15) shall be incurred and outstanding;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(16)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument drawn against insufficient funds in the ordinary
course of business; <I>provided</I> that such Indebtedness is extinguished
within two Business Days of its incurrence;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(17)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of the Issuer or any of its Restricted Subsidiaries supported by a letter of
credit issued pursuant to any Credit Facilities, in a principal amount not in
excess of the stated amount of such letter of credit;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(18)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a) any
guarantee by the Issuer or a Restricted Subsidiary of Indebtedness or other
Obligations of any Restricted Subsidiary, so long as the incurrence of such
Indebtedness incurred by such Restricted Subsidiary is permitted under the terms
of the Senior Subordinated Indenture, or (b)&nbsp;any guarantee by a Restricted
Subsidiary of Indebtedness of the Issuer permitted to be incurred under the
terms of the Senior Subordinated Indenture; <I>provided</I> that such guarantee
is incurred in accordance with the covenant described below under &#147;&#151;Limitation
on Guarantees of Indebtedness by Restricted Subsidiaries&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(19)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of Foreign Subsidiaries of the Issuer in an amount not to exceed at any one time
outstanding and together with any other Indebtedness incurred under this
clause&nbsp;(19) 5.0% of the Total Assets of the Foreign Subsidiaries (it being
understood that any Indebtedness incurred pursuant to this clause&nbsp;(19)
shall cease to be deemed incurred or outstanding for purposes of this
clause&nbsp;(19) but shall be deemed incurred for the purposes of the first
paragraph of this covenant from and after the first date on which the Issuer or
such Restricted Subsidiaries could have incurred such Indebtedness under the
first paragraph of this covenant without reliance on this clause&nbsp;(19));</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(20)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness,
Disqualified Stock or Preferred Stock of a Restricted Subsidiary incurred to
finance or assumed in connection with an acquisition in a principal amount not
to exceed $100.0&nbsp;million in the aggregate at any one time outstanding
together with all other Indebtedness, Disqualified Stock and/or Preferred Stock
issued under this clause&nbsp;(20) (it being understood that any Indebtedness,
Disqualified Stock or Preferred Stock incurred pursuant to this clause&nbsp;(20)
shall cease to be deemed incurred or outstanding for purposes of this
clause&nbsp;(20) but shall be deemed incurred for the purposes of the first
paragraph of this covenant from and after the first date on which such
Restricted Subsidiary could have incurred such Indebtedness, Disqualified Stock
or Preferred Stock under the first paragraph of this covenant without reliance
on this clause&nbsp;(20)); <I>provided, however</I>, that, on a <I>pro forma</I>
basis, together with amounts incurred and outstanding by Restricted Subsidiaries
that are not Guarantors pursuant to the second proviso to the first paragraph of
this covenant and clauses (13)(b) and (15), no more than $250.0&nbsp;million of
Indebtedness would be incurred and outstanding by Restricted Subsidiaries that
are not Guarantors;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(21)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of the Issuer or any of its Restricted Subsidiaries consisting of (i)&nbsp;the
financing of insurance premiums or (ii)&nbsp;take-or-pay obligations contained
in supply arrangements, in each case, incurred in the ordinary course of
business; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(22)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
consisting of Indebtedness issued by the Issuer or any of its Restricted
Subsidiaries to current or former officers, directors and employees thereof,
their respective estates, spouses or former spouses, in each case to finance the
purchase or redemption of Equity Interests of the Issuer or any direct or
indirect parent company of the Issuer to the extent described in clause&nbsp;(4)
of the second paragraph under the caption &#147;&#151;Limitation on Restricted
Payments.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of determining compliance with this covenant:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the event
that an item of Indebtedness, Disqualified Stock or Preferred Stock (or any
portion thereof) meets the criteria of more than one of the categories of
permitted Indebtedness, Disqualified Stock or Preferred Stock described in
clauses (1)&nbsp;through (22)&nbsp;above or is entitled to be incurred pursuant
to the first paragraph of this covenant, the Issuer, in its sole discretion,
will classify or reclassify such item of Indebtedness, </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>106</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">Disqualified
Stock or Preferred Stock (or any portion thereof) and will only be required to
include the amount and type of such Indebtedness, Disqualified Stock or
Preferred Stock in one of the above clauses; <I>provided</I> that all
Indebtedness outstanding under the Credit Facilities on the Issue Date will be
treated as incurred on the Issue Date under clause&nbsp;(1) of the preceding
paragraph; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">at the time
of incurrence, the Issuer will be entitled to divide and classify an item of
Indebtedness in more than one of the types of Indebtedness described in the
first and second paragraphs above.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Accrual of
interest, the accretion of accreted value and the payment of interest in the
form of additional Indebtedness, Disqualified Stock or Preferred Stock will not
be deemed to be an incurrence of Indebtedness, Disqualified Stock or Preferred
Stock for purposes of this covenant.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the
relevant currency exchange rate in effect on the date such Indebtedness was
incurred, in the case of term debt, or first committed, in the case of revolving
credit debt; <I>provided</I> that if such Indebtedness is incurred to refinance
other Indebtedness denominated in a foreign currency, and such refinancing would
cause the applicable U.S. dollar-denominated restriction to be exceeded if
calculated at the relevant currency exchange rate in effect on the date of such
refinancing, such U.S. dollar-denominated restriction shall be deemed not to
have been exceeded so long as the principal amount of such refinancing
Indebtedness does not exceed the principal amount of such Indebtedness being
refinanced.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The principal
amount of any Indebtedness incurred to refinance other Indebtedness, if incurred
in a different currency from the Indebtedness being refinanced, shall be
calculated based on the currency exchange rate applicable to the currencies in
which such respective Indebtedness is denominated that is in effect on the date
of such refinancing.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Limitation
on Layering</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any Guarantor to, directly or indirectly, incur
any Indebtedness (including Acquired Indebtedness) that is subordinate in right
of payment to any Senior Indebtedness of the Issuer or such Guarantor, as the
case may be, unless such Indebtedness is either:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">equal in
right of payment with the Senior Subordinated Notes or such Guarantor&#146;s
Guarantee of the Senior Subordinated Notes, as the case may be; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">expressly
subordinated in right of payment to the Senior Subordinated Notes or such
Guarantor&#146;s Guarantee of the Senior Subordinated Notes, as the case may be,
<I>provided</I> that this covenant shall not apply to Indebtedness incurred
under clause&nbsp;(1) of the second paragraph under &#147;&#151;Limitation on Incurrence
of Indebtedness and Issuance of Disqualified and Preferred Stock.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Indenture will not treat (1)&nbsp;unsecured Indebtedness as
subordinated or junior to Secured Indebtedness merely because it is unsecured or
(2)&nbsp;Senior Indebtedness as subordinated or junior to any other Senior
Indebtedness merely because it has a junior priority with respect to the same
collateral.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Liens</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any Guarantor to, directly or indirectly, create,
incur, assume or suffer to exist any Lien (except Permitted Liens) that secures
obligations under any Senior Subordinated Indebtedness or Subordinated
Indebtedness or any related Guarantee, on any asset or property of the Issuer or
any Guarantor now owned or hereafter acquired, or any income or profits
therefrom, or assign or convey any right to receive income therefrom,
unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>107</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of Liens securing Subordinated Indebtedness, the Senior Subordinated Notes and
related Guarantees are secured by a Lien on such property, assets or proceeds
that is senior in priority to such Liens; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in all other
cases, the Senior Subordinated Notes or the Guarantees are equally and ratably
secured or are secured by a Lien on such property, assets or proceeds that is
senior in priority to such Liens.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Any Lien
which is granted to secure the Senior Subordinated Notes under this covenant
shall be discharged at the same time as the discharge of the Lien (other than
through the exercise of remedies with respect thereto) that gave rise to the
obligation to so secure the Senior Subordinated Notes.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Merger,
Consolidation or Sale of All or Substantially All Assets</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
may not consolidate or merge with or into or wind up into (whether or not the
Issuer is the surviving corporation), or sell, assign, transfer, lease, convey
or otherwise dispose of all or substantially all of its properties or assets, in
one or more related transactions, to any Person unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer is
the surviving corporation or the Person formed by or surviving any such
consolidation or merger (if other than the Issuer) or to which such sale,
assignment, transfer, lease, conveyance or other disposition will have been made
is a corporation organized or existing under the laws of the jurisdiction of
organization of the Issuer or the laws of the United States, any state thereof,
the District of Columbia, or any territory thereof (such Person, as the case may
be, being herein called the &#147;<I>Successor Company</I>&#148;);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Successor
Company, if other than the Issuer, expressly assumes all the obligations of the
Issuer under the Senior Subordinated Notes and the Senior Subordinated Indenture
pursuant to supplemental indentures or other documents or instruments in form
reasonably satisfactory to the Trustee;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">immediately
after such transaction, no Default exists;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">immediately
after giving <I>pro forma</I> effect to such transaction and any related
financing transactions, as if such transactions had occurred at the beginning of
the applicable four-quarter period,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Successor Company would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the
first sentence of the covenant described under &#147;&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,&#148; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Fixed Charge Coverage Ratio for the Successor Company, the Issuer and its
Restricted Subsidiaries would be greater than such ratio for the Issuer and its
Restricted Subsidiaries immediately prior to such transaction;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">each
Guarantor, unless it is the other party to the transactions described above, in
which case clause&nbsp;(b) of the second succeeding paragraph shall apply, shall
have by supplemental indenture confirmed that its Guarantee shall apply to such
Person&#146;s obligations under the Senior Subordinated Indenture, the Senior
Subordinated Notes and the Registration Rights Agreement; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
shall have delivered to the Trustee an Officer&#146;s Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such
supplemental indentures, if any, comply with the Senior Subordinated
Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Successor
Company will succeed to, and be substituted for the Issuer, as the case may be,
under the Senior Subordinated Indenture, the Guarantees and the Senior
Subordinated Notes, as applicable. Notwithstanding the foregoing clauses
(3)&nbsp;and (4),</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>108</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Restricted Subsidiary may consolidate with or merge into or transfer all or part
of its properties and assets to the Issuer, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
may merge with an Affiliate of the Issuer, as the case may be, solely for the
purpose of reincorporating the Issuer in a State of the United States or any
state thereof, the District of Columbia or any territory thereof so long as the
amount of Indebtedness of the Issuer and its Restricted Subsidiaries is not
increased thereby.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Subject to
certain limitations described in the Senior Subordinated Indenture governing
release of a Guarantee upon the sale, disposition or transfer of a Guarantor, no
Guarantor will, and the Issuer will not permit any Guarantor to, consolidate or
merge with or into or wind up into (whether or not the Issuer or Guarantor is
the surviving corporation), or sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of its properties or assets, in
one or more related transactions, to any Person unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">(a) such
Guarantor is the surviving corporation or the Person formed by or surviving any
such consolidation or merger (if other than such Guarantor) or to which such
sale, assignment, transfer, lease, conveyance or other disposition will have
been made is a corporation, partnership, limited partnership, limited liability
corporation or trust organized or existing under the laws of the jurisdiction of
organization of such Guarantor, as the case may be, or the laws of the United
States, any state thereof, the District of Columbia, or any territory thereof
(such Guarantor or such Person, as the case may be, being herein called the
&#147;<I>Successor Person</I>&#148;);</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Successor Person, if other than such Guarantor, expressly assumes all the
obligations of such Guarantor under the Senior Subordinated Indenture and such
Guarantor&#146;s related Guarantee pursuant to supplemental indentures or other
documents or instruments in form reasonably satisfactory to the Trustee;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">immediately
after such transaction, no Default exists; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer shall have delivered to the Trustee an Officer&#146;s Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and
such supplemental indentures, if any, comply with the Senior Subordinated
Indenture; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
transaction is made in compliance with the covenant described under &#147;Repurchase
at the Option of Holders&#151;Asset Sales.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Subject to
certain limitations described in the Senior Subordinated Indenture, the
Successor Person will succeed to, and be substituted for, such Guarantor under
the Senior Subordinated Indenture and such Guarantor&#146;s Guarantee.
Notwithstanding the foregoing, any Guarantor may (i)&nbsp;merge into or transfer
all or part of its properties and assets to another Guarantor or the Issuer,
(ii)&nbsp;merge with an Affiliate of the Issuer solely for the purpose of
reincorporating the Guarantor in the United States, any state thereof, the
District of Columbia or any territory thereof or (iii)&nbsp;convert into a
corporation, partnership, limited partnership, limited liability corporation or
trust organized or existing under the laws of the jurisdiction of organization
of such Guarantor.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Transactions
with Affiliates</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, make any
payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate of the Issuer
(each of the foregoing, an &#147;<I>Affiliate Transaction</I>&#148;) involving aggregate
payments or consideration in excess of $15.0&nbsp;million, unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Affiliate Transaction is on terms that are not materially less favorable to the
Issuer or its relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Issuer or such Restricted Subsidiary
with an unrelated Person on an arm&#146;s-length basis; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>109</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
delivers to the Trustee with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate payments or consideration in
excess of $25.0&nbsp;million, a resolution adopted by the majority of the board
of directors of the Issuer approving such Affiliate Transaction and set forth in
an Officer&#146;s Certificate certifying that such Affiliate Transaction complies
with clause&nbsp;(1) above.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The foregoing
provisions will not apply to the following:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">transactions
between or among the Issuer or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Restricted
Payments permitted by the provisions of the Senior Subordinated Indenture
described above under the covenant &#147;&#151;Limitation on Restricted Payments&#148; and the
definition of &#147;Permitted Investments&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the payment
of management, consulting, monitoring and advisory fees and related expenses to
the Investors pursuant to the Sponsor Management Agreement (plus any unpaid
management, consulting, monitoring and advisory fees and related expenses
accrued in any prior year) and the termination fees pursuant to the Sponsor
Management Agreement, in each case as in effect on the Issue Date, or any
amendment thereto (so long as any such amendment is not disadvantageous in the
good faith judgment of the board of directors of the Issuer to the Holders when
taken as a whole as compared to the Sponsor Management Agreement in effect on
the Issue Date);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the payment
of reasonable and customary fees paid to, and indemnities provided for the
benefit of, officers, directors, employees or consultants of Issuer, any of its
direct or indirect parent companies or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">transactions
in which the Issuer or any of its Restricted Subsidiaries, as the case may be,
delivers to the Trustee a letter from an Independent Financial Advisor stating
that such transaction is fair to the Issuer or such Restricted Subsidiary from a
financial point of view or stating that the terms are not materially less
favorable to the Issuer or its relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Issuer or such
Restricted Subsidiary with an unrelated Person on an arm&#146;s-length basis;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any agreement
as in effect as of the Issue Date, or any amendment thereto (so long as any such
amendment is not disadvantageous to the Holders when taken as a whole as
compared to the applicable agreement as in effect on the Issue Date in the
reasonable determination of the Issuer);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the existence
of, or the performance by the Issuer or any of its Restricted Subsidiaries of
its obligations under the terms of, any stockholders agreement (including any
registration rights agreement or purchase agreement related thereto) to which it
is a party as of the Issue Date and any similar agreements which it may enter
into thereafter; <I>provided</I>, <I>however</I>, that the existence of, or the
performance by the Issuer or any of its Restricted Subsidiaries of obligations
under any future amendment to any such existing agreement or under any similar
agreement entered into after the Issue Date shall only be permitted by this
clause&nbsp;(7) to the extent that the terms of any such amendment or new
agreement are not otherwise disadvantageous to the Holders when taken as a whole
in the reasonable determination of the Issuer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Transactions and the payment of all fees and expenses related to the
Transactions, in each case as disclosed in the offering documentation relating
to the outstanding notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">transactions
with customers, clients, suppliers, or purchasers or sellers of goods or
services, in each case in the ordinary course of business and otherwise in
compliance with the terms of the Senior Subordinated Indenture which are fair to
the Issuer and its Restricted Subsidiaries, in the reasonable determination of
the board of directors of the Issuer or the senior management thereof, or are on
terms at least as favorable as might reasonably have been obtained at such time
from an unaffiliated party;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the issuance
of Equity Interests (other than Disqualified Stock) of the Issuer to any
Permitted Holder or to any director, officer, employee or consultant;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>110</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">sales of
accounts receivable, or participations therein, in connection with the ABL
Facility and any Receivables Facility;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">payments by
the Issuer or any of its Restricted Subsidiaries to any of the Investors made
for any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including, without limitation,
in connection with acquisitions or divestitures, which payments are approved by
a majority of the board of directors of the Issuer in good faith;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">payments or
loans (or cancellation of loans) to employees or consultants of the Issuer, any
of its direct or indirect parent companies or any of its Restricted Subsidiaries
and employment agreements, stock option plans and other similar arrangements
with such employees or consultants which, in each case, are approved by the
Issuer in good faith;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">investments
by the Investors in securities of the Issuer or any of its Restricted
Subsidiaries so long as (i)&nbsp;the investment is being offered generally to
other investors on the same or more favorable terms and (ii)&nbsp;the investment
constitutes less than 5.0% of the proposed or outstanding issue amount of such
class of securities;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">payments to
or from, and transactions with, any joint ventures in the ordinary course of
business; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(16)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">payments by
the Issuer (and any direct or indirect parent thereof) and its Subsidiaries
pursuant to tax sharing agreements among the Issuer (and any such parent) and
its Subsidiaries on customary terms to the extent attributable to the ownership
or operation of the Issuer and its Subsidiaries; <I>provided</I> that in each
case the amount of such payments in any fiscal year does not exceed the amount
that the Issuer, its Restricted Subsidiaries and its Unrestricted Subsidiaries
(to the extent of amounts received from Unrestricted Subsidiaries) would be
required to pay in respect of foreign, federal, state and local taxes for such
fiscal year were the Issuer and its Restricted Subsidiaries (to the extent
described above) to pay such taxes separately from any such parent entity.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Dividend
and Other Payment Restrictions Affecting Restricted Subsidiaries</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not, and will not permit any of its Restricted Subsidiaries that are not
Guarantors to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any consensual encumbrance or consensual restriction
on the ability of any such Restricted Subsidiary to:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 95px">(a) </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 146px">pay
dividends or make any other distributions to the Issuer or any of its Restricted
Subsidiaries on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits, or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">pay
any Indebtedness owed to the Issuer or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make loans or
advances to the Issuer or any of its Restricted Subsidiaries; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">sell, lease
or transfer any of its properties or assets to the Issuer or any of its
Restricted Subsidiaries,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">except (in each case) for such
encumbrances or restrictions existing under or by reason of:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">contractual
encumbrances or restrictions in effect on the Issue Date, including pursuant to
the Senior Credit Facilities and the related documentation;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Senior
Indenture, the Senior Notes, the Senior Subordinated Indenture and the Senior
Subordinated Notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">purchase
money obligations for property acquired in the ordinary course of business that
impose restrictions of the nature discussed in clause&nbsp;(3) above on the
property so acquired;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>111</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(d)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">applicable
law or any applicable rule, regulation or order;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any agreement
or other instrument of a Person acquired by the Issuer or any Restricted
Subsidiary in existence at the time of such acquisition (but not created in
connection therewith or in contemplation thereof), which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any
Person, other than the Person and its Subsidiaries, or the property or assets of
the Person and its Subsidiaries, so acquired;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(f)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">contracts for
the sale of assets, including customary restrictions with respect to a
Subsidiary of the Issuer pursuant to an agreement that has been entered into for
the sale or disposition of all or substantially all of the Capital Stock or
assets of such Subsidiary;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(g)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Secured
Indebtedness that limits the right of the debtor to dispose of the assets
securing such Indebtedness that is otherwise permitted to be incurred pursuant
to the covenants described under &#147;&#151;Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock&#148; and &#147;&#151;Liens&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(h)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">restrictions
on cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">other
Indebtedness, Disqualified Stock or Preferred Stock of Foreign Subsidiaries
permitted to be incurred subsequent to the Issue Date pursuant to the provisions
of the covenant described under &#147;&#151;Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(j)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">customary
provisions in joint venture agreements and other agreements or arrangements
relating solely to such joint venture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(k)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">customary
provisions contained in leases or licenses of intellectual property and other
agreements, in each case entered into in the ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(l)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
encumbrances or restrictions of the type referred to in clauses (1),
(2)&nbsp;and (3)&nbsp;above imposed by any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings of the contracts, instruments or obligations referred to in clauses
(a)&nbsp;through (k)&nbsp;above; <I>provided</I> that such amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are, in the good faith judgment of the Issuer, no
more restrictive with respect to such encumbrance and other restrictions taken
as a whole than those prior to such amendment, modification, restatement,
renewal, increase, supplement, refunding, replacement or refinancing; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(m)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">restrictions
created in connection with any Receivables Facility that, in the good faith
determination of the Issuer, are necessary or advisable to effect the
transactions contemplated under such Receivables Facility.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Limitation
on Guarantees of Indebtedness by Restricted Subsidiaries</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
will not permit any of its Wholly-Owned Subsidiaries that are Restricted
Subsidiaries (and non-Wholly-Owned Subsidiaries if such non-Wholly-Owned
Subsidiaries guarantee other capital markets debt securities of the Issuer or
any Guarantor), other than a Guarantor, a Foreign Subsidiary or a Receivables
Subsidiary, to guarantee the payment of any Indebtedness of the Issuer or any
other Guarantor unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Restricted Subsidiary within 30&nbsp;days executes and delivers a supplemental
indenture to the Senior Subordinated Indenture providing for a Guarantee by such
Restricted Subsidiary, except that with respect to a guarantee of Indebtedness
of the Issuer or any Guarantor:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">if
the Senior Subordinated Notes or such Guarantor&#146;s Guarantee are subordinated in
right of payment to such Indebtedness, the Guarantee under the supplemental
indenture shall be subordinated to such Restricted Subsidiary&#146;s guarantee with
respect to such Indebtedness substantially to the same extent as the Senior
Subordinated Notes are subordinated to such Indebtedness; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>112</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">if
such Indebtedness is by its express terms subordinated in right of payment to
the Senior Subordinated Notes or such Guarantor&#146;s Guarantee, any such guarantee
by such Restricted Subsidiary with respect to such Indebtedness shall be
subordinated in right of payment to such Guarantee substantially to the same
extent as such Indebtedness is subordinated to the Senior Subordinated Notes;
and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Restricted Subsidiary waives, and will not in any manner whatsoever claim or
take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Issuer or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its
Guarantee;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I> that this
covenant shall not be applicable to (i)&nbsp;any guarantee of any Restricted
Subsidiary that existed at the time such Person became a Restricted Subsidiary
and was not incurred in connection with, or in contemplation of, such Person
becoming a Restricted Subsidiary and (ii)&nbsp;guarantees of any Receivables
Facility by any Receivables Subsidiary.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px; TEXT-INDENT: -24px"><B><I>Reports
and Other Information</I></B></P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
that the Issuer may not be subject to the reporting requirements of
Section&nbsp;13 or 15(d) of the Exchange Act or otherwise report on an annual
and quarterly basis on forms provided for such annual and quarterly reporting
pursuant to rules and regulations promulgated by the SEC, the Senior
Subordinated Indenture will require the Issuer to file with the SEC (and make
available to the Trustee and Holders (without exhibits), without cost to any
Holder, within 15&nbsp;days after it files with the SEC) from and after the
Issue Date,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">within
90&nbsp;days (or any other time period then in effect under the rules and
regulations of the Exchange Act with respect to the filing of a Form&nbsp;10-K
by a non-accelerated filer) after the end of each fiscal year, annual reports on
Form&nbsp;10-K, or any successor or comparable form, containing the information
required to be contained therein, or required in such successor or comparable
form;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">within
45&nbsp;days after the end of each of the first three fiscal quarters of each
fiscal year, reports on Form&nbsp;10-Q containing all information that would be
required to be contained in Form&nbsp;10-Q, or any successor or comparable
form;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">promptly from
time to time after the occurrence of an event required to be therein reported,
such other reports on Form&nbsp;8-K, or any successor or comparable form;
and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any other
information, documents and other reports which the Issuer would be required to
file with the SEC if it were subject to Section&nbsp;13 or 15(d) of the Exchange
Act;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">in each case in a manner that
complies in all material respects with the requirements specified in such form;
<I>provided</I> that the Issuer shall not be so obligated to file such reports
with the SEC if the SEC does not permit such filing, in which event the Issuer
will make available such information to prospective purchasers of Senior
Subordinated Notes, in addition to providing such information to the Trustee and
the Holders, in each case within 15&nbsp;days after the time the Issuer would be
required to file such information with the SEC if it were subject to
Section&nbsp;13 or 15(d) of the Exchange Act. In addition, to the extent not
satisfied by the foregoing, the Issuer will agree that, for so long as any
Senior Subordinated Notes are outstanding, it will furnish to Holders and to
securities analysts and prospective investors, upon their request, the
information required to be delivered pursuant to Rule&nbsp;144A(d)(4) under the
Securities Act.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In the event
that any direct or indirect parent company of the Issuer becomes a Guarantor of
the Senior Subordinated Notes, the Senior Subordinated Indenture will permit the
Issuer to satisfy its obligations in this covenant with respect to financial
information relating to the Issuer by furnishing financial information relating
to such parent; <I>provided</I> that the same is accompanied by consolidating
information that explains in reasonable detail the differences between the
information relating to such parent, on the one hand, and the information
relating to the Issuer and its Restricted Subsidiaries on a standalone basis, on
the other hand.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>113</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">Notwithstanding
the foregoing, such requirements shall be deemed satisfied prior to the
commencement of the exchange offer or the effectiveness of the shelf
registration statement described in the Registration Rights Agreement
(1)&nbsp;by the filing with the SEC of the exchange offer registration statement
or shelf registration statement (or any other similar registration statement),
and any amendments thereto, with such financial information that satisfies
Regulation&nbsp;S-X, subject to exceptions consistent with the presentation of
financial information in the offering documentation relating to the outstanding
notes, to the extent filed within the times specified above, or (2)&nbsp;by
posting reports that would be required to be filed substantially in the form
required by the SEC on the Issuer&#146;s website (or that of any of its parent
companies) or providing such reports to the Trustee within 15&nbsp;days after
the time the Issuer would be required to file such information with the SEC if
it were subject to Section&nbsp;13 or 15(d) of the Exchange Act, the financial
information (including a &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; section) that would be required to be
included in such reports, subject to exceptions consistent with the presentation
of financial information in the offering documentation relating to the
outstanding notes, to the extent filed within the times specified above.
Notwithstanding anything herein to the contrary, the Issuer will not be deemed
to have failed to comply with any of its agreements set forth under this
covenant for purposes of clause&nbsp;(3) under &#147;Events of Default and Remedies&#148;
until 120&nbsp;days after the date any report is required to be filed with the
SEC (or posted on the Issuer&#146;s website or provided to the Trustee) pursuant to
this covenant.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Events of Default and
Remedies</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Indenture provides that each of the following is an &#147;<I>Event of
Default</I>&#148;:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">default in
payment when due and payable, upon redemption, acceleration or otherwise, of
principal of, or premium, if any, on the Senior Subordinated Notes, whether or
not such payment is prohibited by the subordination provisions of the Senior
Subordinated Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">default for
30&nbsp;days or more in the payment when due of interest or Special Interest on
or with respect to the Senior Notes, whether or not such payment is prohibited
by the subordination provisions of the Senior Subordinated Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">failure by
the Issuer or any Guarantor for 60&nbsp;days after receipt of written notice
given by the Trustee or the Holders of not less 30% in principal amount of the
Senior Subordinated Notes then outstanding under the Senior Subordinated
Indenture to comply with any of its obligations, covenants or agreements (other
than a default referred to in clauses (1)&nbsp;and (2)&nbsp;above) contained in
the Senior Subordinated Indenture or the Senior Subordinated Notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">default under
any mortgage, indenture or instrument under which there is issued or by which
there is secured or evidenced any Indebtedness for money borrowed by the Issuer
or any of its Restricted Subsidiaries or the payment of which is guaranteed by
the Issuer or any of its Restricted Subsidiaries, other than Indebtedness owed
to the Issuer or a Restricted Subsidiary, whether such Indebtedness or guarantee
now exists or is created after the issuance of the Senior Subordinated Notes, if
both:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
default either results from the failure to pay any principal of such
Indebtedness at its stated final maturity (after giving effect to any applicable
grace periods) or relates to an obligation other than the obligation to pay
principal of any such Indebtedness at its stated final maturity and results in
the holder or holders of such Indebtedness causing such Indebtedness to become
due prior to its stated maturity; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
principal amount of such Indebtedness, together with the principal amount of any
other such Indebtedness in default for failure to pay principal at stated final
maturity (after giving effect to any applicable grace periods), or the maturity
of which has been so accelerated, aggregate $50.0&nbsp;million or more at any
one time outstanding;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">failure by
the Issuer or any Significant Subsidiary (or group of Subsidiaries that together
would constitute a Significant Subsidiary) to pay final judgments aggregating in
excess of $50.0&nbsp;million, which final </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>114</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">judgments
remain unpaid, undischarged and unstayed for a period of more than 60&nbsp;days
after such judgment becomes final, and in the event such judgment is covered by
insurance, an enforcement proceeding has been commenced by any creditor upon
such judgment or decree which is not promptly stayed;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">certain
events of bankruptcy or insolvency with respect to the Issuer or any Significant
Subsidiary (or group of Subsidiaries that together would constitute a
Significant Subsidiary); or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Guarantee
of any Significant Subsidiary (or group of Subsidiaries that together would
constitute a Significant Subsidiary) shall for any reason cease to be in full
force and effect or be declared null and void or any responsible officer (or the
responsible officers of any group of Subsidiaries that together would constitute
a Significant Subsidiary) of any Guarantor that is a Significant Subsidiary, as
the case may be, denies that it has any further liability under its Guarantee or
gives notice to such effect, other than by reason of the termination of the
Senior Subordinated Indenture or the release of any such Guarantee in accordance
with the Senior Subordinated Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If any Event
of Default (other than of a type specified in clause&nbsp;(6) above) occurs and
is continuing under the Senior Subordinated Indenture, the Trustee or the
Holders of at least 30% in principal amount of the Senior Subordinated Notes
then outstanding under the Senior Subordinated Indenture may declare the
principal, premium, if any, interest and any other monetary obligations on all
the Senior Subordinated Notes then outstanding under the Senior Subordinated
Indenture to be due and payable immediately.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Upon the
effectiveness of such declaration, such principal premium, if any, and interest
will be due and payable immediately. Notwithstanding the foregoing, in the case
of an Event of Default arising under clause&nbsp;(6) of the first paragraph of
this section, all outstanding Senior Subordinated Notes will become due and
payable without further action or notice. The Senior Subordinated Indenture
provides that the Trustee may withhold from the Holders notice of any continuing
Default, except a Default relating to the payment of principal, premium, if any,
or interest, if it determines that withholding notice is in their interest. In
addition, the Trustee shall have no obligation to accelerate the Senior
Subordinated Notes if in the best judgment of the Trustee acceleration is not in
the best interest of the Holders.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Indenture provides that the Holders of a majority in aggregate
principal amount of the Senior Subordinated Notes then outstanding under the
Senior Subordinated Indenture by notice to the Trustee may on behalf of the
Holders of all of the Senior Subordinated Notes waive any existing Default and
its consequences under the Senior Subordinated Indenture except a continuing
Default in the payment of interest on, premium, if any, or the principal of any
Senior Subordinated Note held by a non-consenting Holder. In the event of any
Event of Default specified in clause&nbsp;(4) above, such Event of Default and
all consequences thereof (excluding any resulting payment default, other than as
a result of acceleration of the Senior Subordinated Notes) shall be annulled,
waived and rescinded, automatically and without any action by the Trustee or the
Holders, if within 20&nbsp;days after such Event of Default arose:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Indebtedness or guarantee that is the basis for such Event of Default has been
discharged;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Holders
thereof have rescinded or waived the acceleration, notice or action (as the case
may be) giving rise to such Event of Default; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the default
that is the basis for such Event of Default has been cured.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Subject to
the provisions of the Senior Subordinated Indenture relating to the duties of
the Trustee thereunder, in case an Event of Default occurs and is continuing,
the Trustee will be under no obligation to exercise any of the rights or powers
under the Senior Subordinated Indenture at the request or direction of any of
the Holders unless the Holders have offered to the Trustee reasonable indemnity
or security against any loss, liability or expense. Except to enforce the right
to receive payment of principal, premium, if any, or interest when due, no
Holder may pursue any remedy with respect to the Senior Subordinated Indenture
or the Senior Subordinated Notes unless:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such Holder
has previously given the Trustee notice that an Event of Default is
continuing;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>115</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Holders of at
least 30% in principal amount of the then outstanding Senior Subordinated Notes
have requested the Trustee to pursue the remedy;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Holders have
offered the Trustee reasonable security or indemnity against any loss, liability
or expense;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Trustee
has not complied with such request within 60&nbsp;days after the receipt thereof
and the offer of security or indemnity; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Holders of a
majority in principal amount of the then outstanding Senior Subordinated Notes
have not given the Trustee a direction inconsistent with such request within
such 60-day period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Subject to
certain restrictions, under the Senior Subordinated Indenture the Holders of a
majority in principal amount of the total outstanding Senior Subordinated Notes
are given the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or of exercising any trust or
power conferred on the Trustee. The Trustee, however, may refuse to follow any
direction that conflicts with law or the Senior Subordinated Indenture or that
the Trustee determines is unduly prejudicial to the rights of any other Holder
or that would involve the Trustee in personal liability.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Indenture provides that the Issuer is required to deliver to the
Trustee annually a statement regarding compliance with the Senior Subordinated
Indenture, and the Issuer is required, within five Business Days, upon becoming
aware of any Default, to deliver to the Trustee a statement specifying such
Default.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>No Personal Liability of
Directors, Officers, Employees and Stockholders</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">No director,
officer, employee, incorporator or stockholder of the Issuer or any Guarantor or
any of their parent companies (other than the Issuer and the Guarantors) shall
have any liability for any obligations of the Issuer or the Guarantors under the
Senior Subordinated Notes, the Guarantees or the Senior Subordinated Indenture
or for any claim based on, in respect of, or by reason of such obligations or
their creation. Each Holder by accepting the Senior Subordinated Notes waives
and releases all such liability. The waiver and release are part of the
consideration for issuance of the Senior Subordinated Notes. Such waiver may not
be effective to waive liabilities under the federal securities laws, and it is
the view of the SEC that such a waiver is against public policy.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Legal Defeasance and Covenant
Defeasance</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
obligations of the Issuer and the Guarantors under the Senior Subordinated
Indenture will terminate (other than certain obligations) and will be released
upon payment in full of all of the Senior Subordinated Notes issued under the
Senior Subordinated Indenture. The Issuer may, at its option and at any time,
elect to have all of its obligations discharged with respect to the Senior
Subordinated Notes issued under the Senior Subordinated Indenture and have the
Issuer&#146;s and each Guarantor&#146;s obligation discharged with respect to its
Guarantee (&#147;<I>Legal Defeasance</I>&#148;) and cure all then existing Events of
Default except for:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the rights of
Holders issued under the Senior Subordinated Indenture to receive payments in
respect of the principal of, premium, if any, and interest on the Senior
Subordinated Notes when such payments are due solely out of the trust created
pursuant to the Senior Subordinated Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer&#146;s
obligations with respect to Senior Subordinated Notes concerning issuing
temporary notes, registration of such Senior Subordinated Notes, mutilated,
destroyed, lost or stolen Senior Subordinated Notes and the maintenance of an
office or agency for payment and money for security payments held in trust;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the rights,
powers, trusts, duties and immunities of the Trustee, and the Issuer&#146;s
obligations in connection therewith; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Legal
Defeasance provisions of the Senior Subordinated Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>116</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">In
addition, the Issuer may, at its option and at any time, elect to have its
obligations and those of each Guarantor released with respect to certain
covenants that are described in the Senior Subordinated Indenture (&#147;<I>Covenant
Defeasance</I>&#148;) and thereafter any omission to comply with such obligations
shall not constitute a Default with respect to the Senior Subordinated Notes. In
the event Covenant Defeasance occurs, certain events (not including bankruptcy,
receivership, rehabilitation and insolvency events pertaining to the Issuer)
described under &#147;Events of Default and Remedies&#148; will no longer constitute an
Event of Default with respect to the Senior Subordinated Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In order to
exercise either Legal Defeasance or Covenant Defeasance with respect to the
Senior Subordinated Notes:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
must irrevocably deposit with the Trustee, in trust, for the benefit of the
Holders, cash in U.S. dollars, Government Securities, or a combination thereof,
in such amounts as will be sufficient, in the opinion of a nationally recognized
firm of independent public accountants, to pay the principal of, premium, if
any, and interest due on the Senior Subordinated Notes issued under the Senior
Subordinated Indenture on the stated maturity date or on the redemption date, as
the case may be, of such principal, premium, if any, or interest on such Senior
Subordinated Notes, and the Issuer must specify whether such Senior Subordinated
Notes are being defeased to maturity or to a particular redemption date;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of Legal Defeasance, the Issuer shall have delivered to the Trustee an Opinion
of Counsel reasonably acceptable to the Trustee confirming that, subject to
customary assumptions and exclusions,</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer has received from, or there has been published by, the United States
Internal Revenue Service a ruling, or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">since
the original issuance of the Senior Subordinated Notes, there has been a change
in the applicable U.S. federal income tax law,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, subject to
customary assumptions and exclusions, the Holders will not recognize income,
gain or loss for U.S. federal income tax purposes, as applicable, as a result of
such Legal Defeasance and will be subject to U.S. federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if
such Legal Defeasance had not occurred;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of Covenant Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject
to customary assumptions and exclusions, the Holders will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such Covenant
Defeasance and will be subject to such tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">no Default
(other than that resulting from borrowing funds to be applied to make such
deposit and any similar and simultaneous deposit relating to other Indebtedness
and, in each case, the granting of Liens in connection therewith) shall have
occurred and be continuing on the date of such deposit;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under the Senior Credit Facilities, the Senior
Indenture, the Senior Notes or any other material agreement or instrument (other
than the Senior Subordinated Indenture) to which the Issuer or any Guarantor is
a party or by which the Issuer or any Guarantor is bound (other than that
resulting from borrowing funds to be applied to make such deposit and any
similar and simultaneous deposit relating to other Indebtedness and, in each
case, the granting of Liens in connection therewith);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
shall have delivered to the Trustee an Opinion of Counsel to the effect that, as
of the date of such opinion and subject to customary assumptions and exclusions
following the deposit, the trust funds will not be subject to the effect of
Section&nbsp;547 of Title 11 of the United States Code;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>117</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
shall have delivered to the Trustee an Officer&#146;s Certificate stating that the
deposit was not made by the Issuer with the intent of defeating, hindering,
delaying or defrauding any creditors of the Issuer or any Guarantor or others;
and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
shall have delivered to the Trustee an Officer&#146;s Certificate and an Opinion of
Counsel (which Opinion of Counsel may be subject to customary assumptions and
exclusions) each stating that all conditions precedent provided for or relating
to the Legal Defeasance or the Covenant Defeasance, as the case may be, have
been complied with.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Satisfaction and
Discharge</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Indenture will be discharged and will cease to be of further effect
as to all Senior Subordinated Notes issued thereunder, when either:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all Senior
Subordinated Notes theretofore authenticated and delivered, except lost, stolen
or destroyed Senior Subordinated Notes which have been replaced or paid and
Senior Subordinated Notes for whose payment money has theretofore been deposited
in trust, have been delivered to the Trustee for cancellation; or</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 51px; MARGIN-BOTTOM: -16px">(2)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 51px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 44px">(a)
</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 51px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 95px">all
Senior Subordinated Notes not theretofore delivered to the Trustee for
cancellation have become due and payable by reason of the making of a notice of
redemption or otherwise, will become due and payable within one year or may be
called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and
at the expense, of the Issuer, and the Issuer or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders, cash in U.S. dollars, Government
Securities, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest to pay and discharge the
entire indebtedness on the Senior Subordinated Notes not theretofore delivered
to the Trustee for cancellation for principal, premium, if any, and accrued
interest to the date of maturity or redemption;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">no
Default (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other
Indebtedness and, in each case, the granting of Liens in connection therewith)
with respect to the Senior Subordinated Indenture or the Senior Subordinated
Notes shall have occurred and be continuing on the date of such deposit or shall
occur as a result of such deposit, and such deposit will not result in a breach
or violation of, or constitute a default under, the Senior Credit Facilities,
the Senior Indenture, the Senior Notes or any other material agreement or
instrument (other than the Senior Subordinated Indenture) to which the Issuer or
any Guarantor is a party or by which the Issuer or any Guarantor is bound (other
than that resulting from borrowing funds to be applied to make such deposit and
any similar and simultaneous deposit relating to other Indebtedness and, in each
case, the granting of Liens in connection therewith);</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer has paid or caused to be paid all sums payable by it under the Senior
Subordinated Indenture; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer has delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Senior Subordinated Notes at maturity
or the redemption date, as the case may be.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
the Issuer must deliver an Officer&#146;s Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge
have been satisfied.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Amendment, Supplement and
Waiver</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Except as
provided in the next two succeeding paragraphs, the Senior Subordinated
Indenture, any Guarantee, and the Senior Subordinated Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal
amount of the Senior Subordinated Notes then outstanding, including consents
</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>118</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">obtained
in connection with a purchase of, or tender offer or exchange offer for, Senior
Subordinated Notes, and any existing Default or compliance with any provision of
the Senior Subordinated Indenture, the Senior Subordinated Notes issued
thereunder, any Guarantee may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Senior Subordinated Notes,
other than Senior Subordinated Notes beneficially owned by the Issuer or its
Affiliates (including consents obtained in connection with a purchase of or
tender offer or exchange offer for the Senior Subordinated Notes).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Indenture provides that, without the consent of each affected
Holder, an amendment or waiver may not, with respect to any Senior Subordinated
Notes held by a non-consenting Holder:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">reduce the
principal amount of such Senior Subordinated Notes whose Holders must consent to
an amendment, supplement or waiver;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">reduce the
principal of or change the fixed final maturity of any such Senior Subordinated
Note or alter or waive the provisions with respect to the redemption of such
Senior Subordinated Notes (other than provisions relating to the covenants
described above under the caption &#147;Repurchase at the Option of Holders&#148;);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">reduce the
rate of or change the time for payment of interest on any Senior Subordinated
Note;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">waive a
Default in the payment of principal of or premium, if any, or interest on the
Senior Subordinated Notes, except a rescission of acceleration of the Senior
Subordinated Notes by the Holders of at least a majority in aggregate principal
amount of the Senior Subordinated Notes and a waiver of the payment default that
resulted from such acceleration, or in respect of a covenant or provision
contained in the Senior Subordinated Indenture or any Guarantee which cannot be
amended or modified without the consent of all Holders;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make any
Senior Subordinated Note payable in money other than that stated therein;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make any
change in the provisions of the Senior Subordinated Indenture relating to
waivers of past Defaults or the rights of Holders to receive payments of
principal of or premium, if any, or interest on the Senior Subordinated
Notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make any
change in these amendment and waiver provisions;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">impair the
right of any Holder to receive payment of principal of, or interest on such
Holder&#146;s Senior Subordinated Notes on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such
Holder&#146;s Senior Subordinated Notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">make any
change to or modify the ranking of the Senior Subordinated Notes that would
adversely affect the Holders; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">except as
expressly permitted by the Senior Subordinated Indenture, modify the Guarantees
of any Significant Subsidiary in any manner adverse to the Holders.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
any amendment to, or waiver of, the provisions of the Senior Subordinated
Indenture relating to subordination that adversely affects the rights of the
Holders will require the consent of the Holders of at least 75% in aggregate
principal amount of Senior Subordinated Notes then outstanding.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the foregoing, the Issuer, any Guarantor (with respect to a Guarantee or the
Senior Subordinated Indenture to which it is a party) and the Trustee may amend
or supplement the Senior Subordinated Indenture, any Guarantee or Notes without
the consent of any Holder;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to cure any
ambiguity, omission, mistake, defect or inconsistency;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to provide
for uncertificated Senior Subordinated Notes of such series in addition to or in
place of certificated Senior Subordinated Notes;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>119</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to comply
with the covenant relating to mergers, consolidations and sales of assets;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to provide
for the assumption of the Issuer&#146;s or any Guarantor&#146;s obligations to the
Holders;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to make any
change that would provide any additional rights or benefits to the Holders or
that does not adversely affect the legal rights under the Senior Subordinated
Indenture of any such Holder;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to add
covenants for the benefit of the Holders or to surrender any right or power
conferred upon the Issuer or any Guarantor;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to comply
with requirements of the SEC in order to effect or maintain the qualification of
the Senior Subordinated Indenture under the Trust Indenture Act;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to evidence
and provide for the acceptance and appointment under the Senior Subordinated
Indenture of a successor Trustee thereunder pursuant to the requirements
thereof;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to provide
for the issuance of Senior Subordinated Exchange Notes or private exchange
notes, which are identical to Senior Subordinated Exchange Notes except that
they are not freely transferable;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to add a
Guarantor under the Senior Subordinated Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to conform
the text of the Senior Subordinated Indenture, Guarantees or the Senior
Subordinated Notes to any provision of this &#147;Description of Senior Subordinated
Notes&#148; to the extent that such provision in this &#147;Description of Senior
Subordinated Notes&#148; was intended to be a verbatim recitation of a provision of
the Senior Subordinated Indenture, Guarantee or Senior Subordinated Notes;
or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to make any
amendment to the provisions of the Senior Subordinated Indenture relating to the
transfer and legending of Senior Subordinated Notes as permitted by the Senior
Subordinated Indenture, including, without limitation, to facilitate the
issuance and administration of the Senior Subordinated Notes; <I>provided</I>,
<I>however</I>, that (i)&nbsp;compliance with the Senior Subordinated Indenture
as so amended would not result in Senior Subordinated Notes being transferred in
violation of the Securities Act or any applicable securities law and
(ii)&nbsp;such amendment does not materially and adversely affect the rights of
Holders to transfer Senior Subordinated Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the event
that PIK Notes are issued in certificated form, to make appropriate amendments
to the Senior Subordinated Indenture to reflect an appropriate minimum
denomination of certified PIK Notes and establish minimum redemption amounts for
certified PIK Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The consent
of the Holders will not be necessary under the Senior Subordinated Indenture to
approve the particular form of any proposed amendment. It is sufficient if such
consent approves the substance of the proposed amendment.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Notices</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notices given
by publication will be deemed given on the first date on which publication is
made and notices given by first-class mail, postage prepaid, will be deemed
given five calendar days after mailing.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Concerning the
Trustee</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Indenture contains certain limitations on the rights of the Trustee
thereunder, should it become a creditor of the Issuer, to obtain payment of
claims in certain cases, or to realize on certain property received in respect
of any such claim as security or otherwise. The Trustee is permitted to engage
in other transactions; however, if it acquires any conflicting interest it must
eliminate such conflict within 90&nbsp;days, apply to the SEC for permission to
continue or resign.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>120</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">The
Senior Subordinated Indenture provides that the Holders of a majority in
principal amount of the outstanding Senior Subordinated Notes will have the
right to direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee, subject to certain exceptions.
The Senior Subordinated Indenture provides that in case an Event of Default
shall occur (which shall not be cured), the Trustee is required, in the exercise
of its power, to use the degree of care of a prudent person in the conduct of
his own affairs. Subject to such provisions, the Trustee will be under no
obligation to exercise any of its rights or powers under the Senior Subordinated
Indenture at the request of any Holder of the Senior Subordinated Notes, unless
such Holder shall have offered to the Trustee security and indemnity
satisfactory to it against any loss, liability or expense.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Governing Law</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Senior
Subordinated Indenture, the Senior Subordinated Notes and any Guarantee are
governed by and construed in accordance with the laws of the State of New
York.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Certain Definitions</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Set forth
below are certain defined terms used in the Senior Subordinated Indenture. For
purposes of the Senior Subordinated Indenture, unless otherwise specifically
indicated, the term &#147;consolidated&#148; with respect to any Person refers to such
Person on a consolidated basis in accordance with GAAP, but excluding from such
consolidation any Unrestricted Subsidiary as if such Unrestricted Subsidiary
were not an Affiliate of such Person.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>ABL
Facility</I>&#148; means the Asset-Based Revolving Credit Agreement to be entered
into as of the Issue Date by and among the Issuer, the lenders party thereto in
their capacities as lenders thereunder and The CIT Group/Business Credit Inc.,
as Administrative Agent, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements, refundings or
refinancings thereof and any indentures, notes, debentures or credit facilities
or commercial paper facilities with banks or other institutional lenders or
investors that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount
borrowable thereunder or alters the maturity thereof (<I>provided</I> that such
increase in borrowings is permitted under &#147;Certain Covenants&#151;Limitation on
Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock&#148; above).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>ABL
Facility Cap</I>&#148; means an amount equal to the greater of
(x)&nbsp;$1,125.0&nbsp;million and (y)&nbsp;the sum of (i)&nbsp;85% of the net
orderly liquidation value as determined in good faith by the Issuer of inventory
of the Issuer and each Guarantor and (ii)&nbsp;90% of all credit card
receivables of the Issuer and each Guarantor determined in accordance with
GAAP.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>ABL
Obligations</I>&#148; means Obligations under the ABL Facility.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>ABL
Secured Parties</I>&#148; means each of (i)&nbsp;the ABL Collateral Agent on behalf
of itself and the lenders under the ABL Facility and lenders or their affiliates
counterparty to related Hedging Obligations and (ii)&nbsp;each other holder of
ABL Obligations.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Acquired
Indebtedness</I>&#148; means, with respect to any specified Person,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Restricted Subsidiary of such specified Person, including
Indebtedness incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Restricted Subsidiary of such
specified Person, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Affiliate</I>&#148;
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person. For purposes of this definition, &#147;control&#148; </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>121</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">(including,
with correlative meanings, the terms &#147;controlling,&#148; &#147;controlled by&#148; and &#147;under
common control with&#148;), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Applicable
Premium</I>&#148; means, with respect to any Senior Subordinated Note on any
Redemption Date, the greater of:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">1.0% of the
principal amount of such Senior Subordinated Note; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the excess,
if any, of (a)&nbsp;the present value at such Redemption Date of (i)&nbsp;the
redemption price of such Senior Subordinated Note at July&nbsp;15, 2012 (such
redemption price being set forth in the tables appearing above under the caption
&#147;Optional Redemption&#148;), plus (ii)&nbsp;all required interest payments calculated
based on the Cash Interest rate payable on the Senior Subordinated Notes due on
such Senior Subordinated Note through July&nbsp;15, 2012 (excluding accrued but
unpaid interest to the Redemption Date), computed using a discount rate equal to
the Treasury Rate as of such Redemption Date plus 50 basis points; over
(b)&nbsp;the principal amount of such Senior Subordinated Note.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Asset
Sale</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the sale,
conveyance, transfer or other disposition, whether in a single transaction or a
series of related transactions, of property or assets (including by way of a
Sale and Lease-Back Transaction) of the Issuer or any of its Restricted
Subsidiaries (each referred to in this definition as a &#147;<I>disposition</I>&#148;);
or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the issuance
or sale of Equity Interests of any Restricted Subsidiary, whether in a single
transaction or a series of related transactions (other than Preferred Stock of
Restricted Subsidiaries issued in compliance with the covenant described under
&#147;Certain Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock&#148;);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">in each case, other than:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
disposition of Cash Equivalents or Investment Grade Securities or obsolete or
worn out equipment in the ordinary course of business or any disposition of
inventory or goods (or other assets) held for sale in the ordinary course of
business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
disposition of all or substantially all of the assets of the Issuer in a manner
permitted pursuant to the provisions described above under &#147;Certain
Covenants&#151;Merger, Consolidation or Sale of All or Substantially All Assets&#148; or
any disposition that constitutes a Change of Control pursuant to the Senior
Subordinated Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the making of
any Restricted Payment or Permitted Investment that is permitted to be made, and
is made, under the covenant described above under &#147;Certain Covenants&#151;Limitation
on Restricted Payments&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
disposition of assets or issuance or sale of Equity Interests of any Restricted
Subsidiary in any transaction or series of related transactions with an
aggregate fair market value of less than $25.0&nbsp;million;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
disposition of property or assets or issuance of securities by a Restricted
Subsidiary of the Issuer to the Issuer or by the Issuer or a Restricted
Subsidiary of the Issuer to another Restricted Subsidiary of the Issuer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(f)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to the extent
allowable under Section&nbsp;1031 of the Code or any comparable or successor
provision, any exchange of like property (excluding any boot thereon) for use in
a Similar Business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(g)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the lease,
assignment or sub-lease of any real or personal property in the ordinary course
of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>122</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(h)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any issuance
or sale of Equity Interests in, or Indebtedness or other securities of, an
Unrestricted Subsidiary;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">foreclosures
on assets;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(j)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">sales of
accounts receivable, or participations therein, in connection with the ABL
Facility or any Receivables Facility;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(k)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any financing
transaction with respect to property built or acquired by the Issuer or any
Restricted Subsidiary after the Issue Date, including Sale and Lease-Back
Transactions and asset securitizations permitted by the Senior Subordinated
Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(l)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">dispositions
in the ordinary course of business by any Restricted Subsidiary engaged in the
insurance business in order to provide insurance to the Issuer and its
Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(m)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the unwinding
of any Hedging Obligations; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(n)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">sales,
transfers and other dispositions of Investments in joint ventures to the extent
required by, or made pursuant to, customary buy/sell arrangements between the
joint venture parties set forth in joint venture arrangements and similar
binding arrangements.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Asset
Sale Offer</I>&#148; has the meaning set forth in the fourth paragraph under
&#147;Repurchase at the Option of Holders&#151;Asset Sales.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Bankruptcy
Code</I>&#148; means Title 11 of the United States Code, as amended.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Bankruptcy
Law</I>&#148; means the Bankruptcy Code and any similar federal, state or foreign law
for the relief of debtors.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Business
Day</I>&#148; means each day which is not a Legal Holiday.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Capital
Stock</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of a corporation, corporate stock;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in the case
of a partnership or limited liability company, partnership or membership
interests (whether general or limited); and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any other
interest or participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of assets of, the issuing
Person.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Capitalized
Lease Obligation</I>&#148; means, at the time any determination thereof is to be
made, the amount of the liability in respect of a capital lease that would at
such time be required to be capitalized and reflected as a liability on a
balance sheet (excluding the footnotes thereto) in accordance with GAAP.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Capitalized
Software Expenditures</I>&#148; means, for any period, the aggregate of all
expenditures (whether paid in cash or accrued as liabilities) by a Person and
its Restricted Subsidiaries during such period in respect of purchased software
or internally developed software and software enhancements that, in conformity
with GAAP, are or are required to be reflected as capitalized costs on the
consolidated balance sheet of a Person and its Restricted Subsidiaries.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Cash
Equivalents</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>123</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">United States
dollars;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">euro or any
national currency of any participating member state of the EMU or such local
currencies held by the Issuer and its Restricted Subsidiaries from time to time
in the ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">securities
issued or directly and fully and unconditionally guaranteed or insured by the
U.S. government (or any agency or instrumentality thereof the securities of
which are unconditionally guaranteed as a full faith and credit obligation of
the U.S. government) with maturities of 24&nbsp;months or less from the date of
acquisition;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">certificates
of deposit, time deposits and eurodollar time deposits with maturities of one
year or less from the date of acquisition, bankers&#146; acceptances with maturities
not exceeding one year and overnight bank deposits, in each case with any
commercial bank having capital and surplus of not less than $500.0&nbsp;million
in the case of U.S. banks and $100.0&nbsp;million (or the U.S. dollar equivalent
as of the date of determination) in the case of non-U.S. banks;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">repurchase
obligations for underlying securities of the types described in clauses
(3)&nbsp;and (4)&nbsp;entered into with any financial institution meeting the
qualifications specified in clause&nbsp;(4) above;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">commercial
paper rated at least P-1 by Moody&#146;s or at least A-1 by S&amp;P and in each case
maturing within 24&nbsp;months after the date of creation thereof;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">marketable
short-term money market and similar securities having a rating of at least P-2
or A-2 from either Moody&#146;s or S&amp;P, respectively (or, if at any time neither
Moody&#146;s nor S&amp;P shall be rating such obligations, an equivalent rating from
another Rating Agency) and in each case maturing within 24&nbsp;months after the
date of creation thereof;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">investment
funds investing 95% of their assets in securities of the types described in
clauses (1)&nbsp;through (7)&nbsp;above;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">readily
marketable direct obligations issued by any state, commonwealth or territory of
the United States or any political subdivision or taxing authority thereof
having an Investment Grade Rating from either Moody&#146;s or S&amp;P with maturities
of 24&nbsp;months or less from the date of acquisition;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Indebtedness
or Preferred Stock issued by Persons with a rating of &#147;A&#148; or higher from S&amp;P
or &#147;A2&#148; or higher from Moody&#146;s with maturities of 24&nbsp;months or less from
the date of acquisition; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
with average maturities of 24&nbsp;months or less from the date of acquisition
in money market funds rated AAA- (or the equivalent thereof) or better by
S&amp;P or Aaa3 (or the equivalent thereof) or better by Moody&#146;s.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the foregoing, Cash Equivalents shall include amounts denominated in currencies
other than those set forth in clauses (1)&nbsp;and (2)&nbsp;above;
<I>provided</I> that such amounts are converted into any currency listed in
clauses (1)&nbsp;and (2)&nbsp;as promptly as practicable and in any event within
ten Business Days following the receipt of such amounts.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Cash
Interest</I>&#148; has the meaning set forth under &#147;Principal, Maturity and
Interest.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Change of
Control</I>&#148; means the occurrence of any of the following:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the sale,
lease or transfer, in one or a series of related transactions, of all or
substantially all of the assets of the Issuer and its Subsidiaries, taken as a
whole, to any Person other than a Permitted Holder; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
becomes aware (by way of a report or any other filing pursuant to
Section&nbsp;13(d) of the Exchange Act, proxy, vote, written notice or
otherwise) of the acquisition by any Person or group (within the meaning of
Section&nbsp;13(d)(3) or Section&nbsp;14(d)(2) of the Exchange Act, or any
successor provision), including any </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>124</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">group
acting for the purpose of acquiring, holding or disposing of securities (within
the meaning of Rule&nbsp;13d-5(b)(1) under the Exchange Act or any successor
provision), other than the Permitted Holders, in a single transaction or in a
related series of transactions, by way of merger, consolidation or other
business combination or purchase of beneficial ownership (within the meaning of
Rule&nbsp;13d-3 under the Exchange Act, or any successor provision) of 50% or
more of the total voting power of the Voting Stock of the Issuer or any of its
direct or indirect parent companies holding directly or indirectly 100% of the
total voting power of the Voting Stock of the Issuer.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Code</I>&#148;
means the Internal Revenue Code of 1986, as amended, or any successor
thereto.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Depreciation and Amortization Expense</I>&#148; means with respect to any Person for
any period, the total amount of depreciation and amortization expense, including
the amortization of deferred financing fees, debt issuance costs, commissions,
fees and expenses and Capitalized Software Expenditures, of such Person and its
Restricted Subsidiaries for such period on a consolidated basis and otherwise
determined in accordance with GAAP.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Interest Expense</I>&#148; means, with respect to any Person for any period, without
duplication, the sum of:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">consolidated
interest expense of such Person and its Restricted Subsidiaries for such period,
to the extent such expense was deducted (and not added back) in computing
Consolidated Net Income (including (a)&nbsp;amortization of original issue
discount resulting from the issuance of Indebtedness at less than par,
(b)&nbsp;all commissions, discounts and other fees and charges owed with respect
to letters of credit or bankers&#146; acceptances, (c)&nbsp;non-cash interest
payments (but excluding any non-cash interest expense attributable to the
movement in the mark to market valuation of Hedging Obligations or other
derivative instruments pursuant to GAAP), (d)&nbsp;the interest component of
Capitalized Lease Obligations, and (e)&nbsp;net payments, if any, pursuant to
interest rate Hedging Obligations with respect to Indebtedness, and excluding
(u)&nbsp;accretion or accrual of discounted liabilities not constituting
Indebtedness, (v)&nbsp;any expense resulting from the discounting any
Indebtedness in connection with the application of recapitalization accounting
or, if applicable, purchase accounting, (w)&nbsp;any Special Interest and any
comparable &#147;additional interest&#148; with respect to other securities,
(x)&nbsp;amortization of deferred financing fees, debt issuance costs,
commissions, fees and expenses, (y)&nbsp;any expensing of bridge, commitment and
other financing fees and (z)&nbsp;commissions, discounts, yield and other fees
and charges (including any interest expense) related to any Receivables
Facility); plus</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">consolidated
capitalized interest of such Person and its Restricted Subsidiaries for such
period, whether paid or accrued; less</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">interest
income for such period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">For purposes of this definition,
interest on a Capitalized Lease Obligation shall be deemed to accrue at an
interest rate reasonably determined by such Person to be the rate of interest
implicit in such Capitalized Lease Obligation in accordance with GAAP.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Leverage Ratio</I>&#148; as of any date of determination, means the ratio of
(1)&nbsp;Consolidated Total Indebtedness of the Issuer and its Restricted
Subsidiaries as of the end of the most recent fiscal period for which internal
financial statements are available immediately preceding the date on which such
event for which such calculation is being made shall occur to (2)&nbsp;the
Issuer&#146;s EBITDA for the most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding the date on
which such event for which such calculation is being made shall occur, in each
case with such pro forma adjustments to Consolidated Total Indebtedness and
EBITDA as are appropriate and consistent with the pro forma adjustment
provisions set forth in the definition of &#147;Fixed Charge Coverage Ratio.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Consolidated
Net Income</I>&#148; means, with respect to any Person for any period, the aggregate
of the Net Income of such Person for such period, on a consolidated basis, and
otherwise determined in accordance with GAAP; <I>provided</I>, <I>however</I>,
that, without duplication,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>125</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any after-tax
effect of extraordinary, non-recurring or unusual gains or losses (less all fees
and expenses relating thereto) or expenses (including relating to the
Transactions to the extent incurred on or prior to May&nbsp;1, 2008), severance,
relocation costs, consolidation and closing costs, integration and facilities
opening costs, business optimization costs, transition costs, restructuring
costs, signing, retention or completion bonuses, and curtailments or
modifications to pension and post-retirement employee benefit plans shall be
excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
cumulative effect of a change in accounting principles during such period shall
be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any after-tax
effect of income (loss) from disposed, abandoned or discontinued operations and
any net after-tax gains or losses on disposal of disposed, abandoned,
transferred, closed or discontinued operations shall be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any after-tax
effect of gains or losses (less all fees and expenses relating thereto)
attributable to asset dispositions or abandonments other than in the ordinary
course of business, as determined in good faith by the Issuer, shall be
excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Net
Income for such period of any Person that is an Unrestricted Subsidiary shall be
excluded, and, solely for the purpose of determining the amount available for
Restricted Payments under clause&nbsp;3(a) of the first paragraph of &#147;Certain
Covenants&#151;Limitation on Restricted Payments,&#148; the Net Income for such period of
any Person that is not a Subsidiary or that is accounted for by the equity
method of accounting shall be excluded; <I>provided</I> that Consolidated Net
Income of the Issuer shall be increased by the amount of dividends or
distributions or other payments that are actually paid in cash (or to the extent
converted into cash) to the Issuer or a Restricted Subsidiary thereof in respect
of such period, to the extent not already included therein,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">solely for
the purpose of determining the amount available for Restricted Payments under
clause&nbsp;(3)(a) of the first paragraph of &#147;Certain Covenants&#151;Limitation on
Restricted Payments,&#148; the Net Income for such period of any Restricted
Subsidiary (other than any Guarantor) shall be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of its Net Income is not at the date of determination wholly
permitted without any prior governmental approval (which has not been obtained)
or, directly or indirectly, by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, or governmental
regulation applicable to that Restricted Subsidiary or its stockholders, unless
such restriction with respect to the payment of dividends or similar
distributions has been legally waived; <I>provided</I> that Consolidated Net
Income of the Issuer will be increased by the amount of dividends or other
distributions or other payments actually paid in cash (or to the extent
converted into cash) or Cash Equivalents to the Issuer or a Restricted
Subsidiary thereof in respect of such period, to the extent not already included
therein,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">effects of
adjustments (including the effects of such adjustments pushed down to the Issuer
and its Restricted Subsidiaries) in the property, equipment, inventory, software
and other intangible assets, deferred revenue and debt line items in such
Person&#146;s consolidated financial statements pursuant to GAAP resulting from the
application of recapitalization accounting or, if applicable, purchase
accounting in relation to the Transactions or any consummated acquisition or the
amortization or write-off of any amounts thereof, net of taxes, shall be
excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any after-tax
effect of income (loss) from the early extinguishment of Indebtedness or Hedging
Obligations or other derivative instruments shall be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
impairment charge or asset write-off, including, without limitation, impairment
charges or asset write-offs related to intangible assets, long-lived assets or
investments in debt and equity securities, in each case, pursuant to GAAP and
the amortization of intangibles arising pursuant to GAAP shall be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any non-cash
compensation expense recorded from grants of stock appreciation or similar
rights, stock options, restricted stock or other rights, and any cash charges
associated with the rollover, acceleration or payout of Equity Interests by
management of the Company or any of its direct or indirect parent companies in
connection with the Transactions, shall be excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>126</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any fees and
expenses incurred during such period, or any amortization thereof for such
period, in connection with any acquisition, Investment, Asset Sale, issuance or
repayment of Indebtedness, issuance of Equity Interests, refinancing transaction
or amendment or modification of any debt instrument (in each case, including any
such transaction consummated prior to the Issue Date and any such transaction
undertaken but not completed) and any charges or non-recurring merger costs
incurred during such period as a result of any such transaction shall be
excluded,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">accruals and
reserves that are established or adjusted within twelve months after the Issue
Date that are so required to be established as a result of the Transactions in
accordance with GAAP, or changes as a result of adoption or modification of
accounting policies, shall be excluded, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to the extent
covered by insurance and actually reimbursed, or, so long as the Issuer has made
a determination that there exists reasonable evidence that such amount will in
fact be reimbursed by the insurer and only to the extent that such amount is
(a)&nbsp;not denied by the applicable carrier in writing within 180&nbsp;days
and (b)&nbsp;in fact reimbursed within 365&nbsp;days of the date of such
evidence (with a deduction for any amount so added back to the extent not so
reimbursed within 365&nbsp;days), expenses with respect to liability or casualty
events or business interruption shall be excluded.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notwithstanding
the foregoing, for the purpose of the covenant described under &#147;Certain
Covenants&#151;Limitation on Restricted Payments&#148; only (other than clause&nbsp;(3)(d)
thereof), there shall be excluded from Consolidated Net Income any income
arising from any sale or other disposition of Restricted Investments made by the
Issuer and its Restricted Subsidiaries, any repurchases and redemptions of
Restricted Investments from the Issuer and its Restricted Subsidiaries, any
repayments of loans and advances which constitute Restricted Investments by the
Issuer or any of its Restricted Subsidiaries, any sale of the stock of an
Unrestricted Subsidiary or any distribution or dividend from an Unrestricted
Subsidiary, in each case only to the extent such amounts increase the amount of
Restricted Payments permitted under such covenant pursuant to clause&nbsp;(3)(d)
thereof.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Contingent
Obligations</I>&#148; means, with respect to any Person, any obligation of such
Person guaranteeing any leases, dividends or other obligations that do not
constitute Indebtedness (&#147;<I>primary obligations</I>&#148;) of any other Person (the
&#147;<I>primary obligor</I>&#148;) in any manner, whether directly or indirectly,
including, without limitation, any obligation of such Person, whether or not
contingent,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to purchase
any such primary obligation or any property constituting direct or indirect
security therefor,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to advance or
supply funds:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">for
the purchase or payment of any such primary obligation, or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">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 against loss in respect thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Credit
Facilities</I>&#148; means, with respect to the Issuer or any of its Restricted
Subsidiaries, one or more debt facilities, including the Senior Credit
Facilities, or other financing arrangements (including, without limitation,
commercial paper facilities or indentures) providing for revolving credit loans,
term loans, letters of credit or other long-term indebtedness, including any
notes, mortgages, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and any amendments, supplements,
modifications, extensions, renewals, restatements or refundings thereof and any
indentures, notes, debentures or credit facilities or commercial paper
facilities that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount
permitted to be borrowed thereunder or alters the maturity thereof
(<I>provided</I> that such increase in borrowings is </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>127</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">permitted
under &#147;Certain Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance
of Disqualified Stock and Preferred Stock&#148;) or adds Restricted Subsidiaries as
additional borrowers or guarantors thereunder and whether by the same or any
other agent, lender or group of lenders.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Default</I>&#148;
means any event that is, or with the passage of time or the giving of notice or
both would be, an Event of Default.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Designated
Non-cash Consideration</I>&#148; means the fair market value of non-cash
consideration received by the Issuer or a Restricted Subsidiary in connection
with an Asset Sale that is so designated as Designated Non-cash Consideration
pursuant to an Officer&#146;s Certificate, setting forth the basis of such valuation,
executed by the principal financial officer of the Issuer, less the amount of
cash or Cash Equivalents received in connection with a subsequent sale of or
collection on such Designated Non-cash Consideration.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Designated
Preferred Stock</I>&#148; means Preferred Stock of the Issuer or any parent
corporation thereof (in each case other than Disqualified Stock) that is issued
for cash (other than to a Restricted Subsidiary or an employee stock ownership
plan or trust established by the Issuer or any of its Subsidiaries) and is so
designated as Designated Preferred Stock, pursuant to an Officer&#146;s Certificate
executed by the principal financial officer of the Issuer or the applicable
parent corporation thereof, as the case may be, on the issuance date thereof,
the cash proceeds of which are excluded from the calculation set forth in
clause&nbsp;(3) of the first paragraph under &#147;Certain Covenants&#151;Limitation on
Restricted Payments.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Designated
Senior Indebtedness</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Indebtedness outstanding under the Senior Credit Facilities;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Indebtedness outstanding under the Senior Indenture; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any other
Senior Indebtedness permitted under the Senior Subordinated Indenture that, at
the date of determination, has an aggregate principal amount outstanding of at
least $35.0&nbsp;million and is specifically designated by the issuer thereof as
&#147;Designated Senior Indebtedness&#148; for purposes of the Senior Subordinated
Indenture.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Disqualified
Stock</I>&#148; means, with respect to any Person, any Capital Stock of such Person
which, by its terms, or by the terms of any security into which it is
convertible or for which it is putable or exchangeable, or upon the happening of
any event, matures or is mandatorily redeemable (other than solely as a result
of a change of control or asset sale) pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof (other than
solely as a result of a change of control or asset sale), in whole or in part,
in each case prior to the date 91&nbsp;days after the earlier of the maturity
date of the Senior Subordinated Notes or the date the Senior Subordinated Notes
are no longer outstanding; <I>provided</I>, <I>however</I>, that if such Capital
Stock is issued to any plan for the benefit of employees of the Issuer or its
Subsidiaries or by any such plan to such employees, such Capital Stock shall not
constitute Disqualified Stock solely because it may be required to be
repurchased by the Issuer or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>EBITDA</I>&#148;
means, with respect to any Person for any period, the Consolidated Net Income of
such Person for such period</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">increased
(without duplication) by:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">provision
for taxes based on income or profits or capital gains, including, without
limitation, foreign, federal, state, franchise and similar taxes and foreign
withholding taxes (including penalties and interest related to such taxes or
arising from tax examinations) of such Person paid or accrued during such period
deducted (and not added back) in computing Consolidated Net Income in such
period; <I>plus</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>128</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Fixed
Charges of such Person for such period (including (x)&nbsp;net losses on Hedging
Obligations or other derivative instruments entered into for the purpose of
hedging interest rate risk and (y)&nbsp;costs of surety bonds in connection with
financing activities, in each case, to the extent included in Fixed Charges),
together with items excluded from the definition of &#147;Consolidated Interest
Expense&#148; pursuant to clauses (1)(u), (v), (w), (x), (y)&nbsp;and (z)&nbsp;of the
definition thereof, and, in each such case, to the extent the same were deducted
(and not added back) in calculating such Consolidated Net Income in such period;
<I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Consolidated
Depreciation and Amortization Expense of such Person for such period to the
extent the same was deducted (and not added back) in computing Consolidated Net
Income in such period; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
expenses or charges (other than depreciation or amortization expense) related to
any Equity Offering, Permitted Investment, acquisition, disposition,
recapitalization or the incurrence of Indebtedness permitted to be incurred by
the Senior Subordinated Indenture (including a refinancing thereof) (whether or
not successful), including (i)&nbsp;such fees, expenses or charges related to
the offering of the Senior Subordinated Notes and any Credit Facilities and
(ii)&nbsp;any amendment or other modification of the Senior Subordinated Notes,
and, in each case, deducted (and not added back) in computing Consolidated Net
Income in such period; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of any restructuring charge or reserve deducted (and not added back) in
such period in computing Consolidated Net Income, including any one-time costs
incurred in connection with acquisitions after the Issue Date and costs related
to the closure and/or consolidation of facilities; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(f)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
other non-cash charges, including any write-offs or write-downs, reducing
Consolidated Net Income for such period (<I>provided</I> that if any such
non-cash charges represent an accrual or reserve for potential cash items in any
future period, the cash payment in respect thereof in such future period shall
be subtracted from EBITDA to such extent, and excluding amortization of a
prepaid cash item that was paid in a prior period); <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(g)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of any minority interest expense consisting of income attributable to
minority equity interests of third parties deducted (and not added back) in such
period in calculating Consolidated Net Income in such period; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(h)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of management, monitoring, consulting and advisory fees and related
expenses paid in such period to the Investors to the extent otherwise permitted
under &#147;Certain Covenants&#151;Transactions with Affiliates&#148;; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of net cost savings projected by the Issuer in good faith to be realized
as a result of specified actions taken or to be taken (calculated on a <I>pro
forma</I> basis as though such cost savings had been realized on the first day
of such period), net of the amount of actual benefits realized during such
period from such actions; <I>provided</I> that (w)&nbsp;such cost savings are
reasonably identifiable and factually supportable, (x)&nbsp;such actions have
been taken or are to be taken within 12&nbsp;months after the date of
determination to take such action, (y)&nbsp;no cost savings shall be added
pursuant to this clause&nbsp;(i) to the extent duplicative of any expenses or
charges relating to such cost savings that are included in clause&nbsp;(e) above
with respect to such period and (z)&nbsp;the aggregate amount of cost savings
added pursuant to this clause&nbsp;(i) shall not exceed $25.0&nbsp;million for
any four consecutive quarter period (which adjustments may be incremental to
<I>pro forma</I> adjustments made pursuant to the second paragraph of the
definition of &#147;Fixed Charge Coverage Ratio&#148;); <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(j)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
amount of loss on sales of receivables and related assets to the Receivables
Subsidiary in connection with a Receivables Facility; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(k)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">an
amount equal to the impact on cost of goods sold and operating profit of
incremental markdowns taken as a result of Project&nbsp;Alpha as described in
the offering documentation relating to the </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>129</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">outstanding
notes; <I>provided</I> that this clause&nbsp;(k) shall not apply to any
quarterly period beginning after February&nbsp;1, 2008; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(l)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
expenses associated with Project Alpha inventory and real estate initiatives as
described in the offering documentation relating to the outstanding notes;
<I>provided</I> that this clause (l) shall not apply to any quarterly period
beginning after February&nbsp;1, 2008; <I>plus</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(m)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
costs or expense incurred by the Issuer or a Restricted Subsidiary pursuant to
any management equity plan or stock option plan or any other management or
employee benefit plan or agreement or any stock subscription or shareholder
agreement, to the extent that such cost or expenses are funded with cash
proceeds contributed to the capital of the Issuer or net cash proceeds of an
issuance of Equity Interests of the Issuer (other than Disqualified Stock)
solely to the extent that such net cash proceeds are excluded from the
calculation set forth in clause&nbsp;(3) of the first paragraph under &#147;Certain
Covenants&#151;Limitation on Restricted Payments&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">decreased by
(without duplication) non-cash gains increasing Consolidated Net Income of such
Person for such period, excluding any non-cash gains to the extent they
represent the reversal of an accrual or reserve for a potential cash item that
reduced EBITDA in any prior period; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">increased or
decreased by (without duplication):</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
net gain or loss resulting in such period from Hedging Obligations and the
application of Statement of Financial Accounting Standards No.&nbsp;133;
<I>plus</I> or <I>minus</I>, as applicable, and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
net gain or loss resulting in such period from currency translation gains or
losses related to currency remeasurements of Indebtedness (including any net
loss or gain resulting from Hedging Obligations for currency exchange risk).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>EMU</I>&#148;
means the economic and monetary union as contemplated in the Treaty on European
Union.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Equity
Interests</I>&#148; means Capital Stock and all warrants, options or other rights to
acquire Capital Stock, but excluding any debt security that is convertible into,
or exchangeable for, Capital Stock.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Equity
Offering</I>&#148; means any public or private sale of common stock or Preferred
Stock of the Issuer or any of its direct or indirect parent companies (excluding
Disqualified Stock), other than:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">public
offerings with respect to the Issuer&#146;s or any direct or indirect parent
company&#146;s common stock registered on Form&nbsp;S-8;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">issuances to
any Subsidiary of the Issuer; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any such
public or private sale that constitutes an Excluded Contribution.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>euro</I>&#148;
means the single currency of participating member states of the EMU.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Event of
Default</I>&#148; has the meaning set forth under &#147;Events of Default and
Remedies.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Excess
Proceeds</I>&#148; has the meaning set forth in the fourth paragraph under
&#147;Repurchase at the Option of Holders&#151;Asset Sales.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Exchange
Act</I>&#148; means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Excluded
Contribution</I>&#148; means net cash proceeds, marketable securities or Qualified
Proceeds received by the Issuer after the Issue Date from</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>130</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">contributions
to its common equity capital, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the sale
(other than to a Subsidiary of the Issuer or to any management equity plan or
stock option plan or any other management or employee benefit plan or agreement
of the Issuer) of Capital Stock (other than Disqualified Stock and Designated
Preferred Stock) of the Issuer,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">in each case designated as
Excluded Contributions pursuant to an Officer&#146;s Certificate executed by the
principal financial officer of the Issuer on the date such capital contributions
are made or the date such Equity Interests are sold, as the case may be, which
are excluded from the calculation set forth in clause&nbsp;(3) of the first
paragraph under &#147;Certain Covenants&#151;Limitation on Restricted Payments.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Fixed
Charge Coverage Ratio</I>&#148; means, with respect to any Person for any period, the
ratio of EBITDA of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the Issuer or any Restricted
Subsidiary incurs, assumes, guarantees, redeems, retires or extinguishes any
Indebtedness (other than Indebtedness incurred under any revolving credit
facility unless such Indebtedness has been permanently repaid and has not been
replaced) or issues or redeems Disqualified Stock or Preferred Stock subsequent
to the commencement of the period for which the Fixed Charge Coverage Ratio is
being calculated but prior to or simultaneously with the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the &#147;<I>Fixed Charge
Coverage Ratio Calculation Date</I>&#148;), then the Fixed Charge Coverage Ratio
shall be calculated giving <I>pro forma</I> effect to such incurrence,
assumption, guarantee, redemption, retirement or extinguishment of Indebtedness,
or such issuance or redemption of Disqualified Stock or Preferred Stock, as if
the same had occurred on the first day of the applicable four-quarter
period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of making the computation referred to above, Investments, acquisitions,
dispositions, mergers, consolidations and disposed operations (as determined in
accordance with GAAP) that have been made by the Issuer or any of its Restricted
Subsidiaries during the four-quarter reference period or subsequent to such
reference period and on or prior to or simultaneously with the Fixed Charge
Coverage Ratio Calculation Date shall be calculated on a <I>pro forma</I> basis
assuming that all such Investments, acquisitions, dispositions, mergers,
consolidations and disposed operations (and the change in any associated fixed
charge obligations and the change in EBITDA resulting therefrom) had occurred on
the first day of the four-quarter reference period. If, since the beginning of
such period, any Person that subsequently became a Restricted Subsidiary or was
merged with or into the Issuer or any of its Restricted Subsidiaries since the
beginning of such period shall have made any Investment, acquisition,
disposition, merger, consolidation or disposed operation that would have
required adjustment pursuant to this definition, then the Fixed Charge Coverage
Ratio shall be calculated giving <I>pro forma</I> effect thereto for such period
as if such Investment, acquisition, disposition, merger, consolidation or
disposed operation had occurred on the first day of the applicable four-quarter
period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of this definition, whenever <I>pro forma</I> effect is to be given to a
transaction, the <I>pro forma</I> calculations shall be made in good faith by a
responsible financial or accounting officer of the Issuer. If any Indebtedness
bears a floating rate of interest and is being given <I>pro forma</I> effect,
the interest on such Indebtedness shall be calculated as if the rate in effect
on the Fixed Charge Coverage Ratio Calculation Date had been the applicable rate
for the entire period (taking into account any Hedging Obligations applicable to
such Indebtedness). Interest on a Capitalized Lease Obligation shall be deemed
to accrue at an interest rate reasonably determined by a responsible financial
or accounting officer of the Issuer to be the rate of interest implicit in such
Capitalized Lease Obligation in accordance with GAAP. For purposes of making the
computation referred to above, interest on any Indebtedness under a revolving
credit facility computed on a <I>pro forma</I> basis shall be computed based
upon the average daily balance of such Indebtedness during the applicable period
except as set forth in the first paragraph of this definition. Interest on
Indebtedness that may optionally be determined at an interest rate based upon a
factor of a prime or similar rate, a eurocurrency interbank offered rate or
other rate shall be deemed to have been based upon the rate actually chosen, or,
if none, then based upon such optional rate chosen as the Issuer may
designate.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Fixed
Charges</I>&#148; means, with respect to any Person for any period, the sum of:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Consolidated
Interest Expense of such Person for such period;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>131</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all cash
dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Preferred Stock during such period; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all cash
dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Disqualified Stock during such period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Foreign
Subsidiary</I>&#148; means, with respect to any Person, any Restricted Subsidiary of
such Person that is not organized or existing under the laws of the United
States, any state thereof or the District of Columbia and any Restricted
Subsidiary of such Foreign Subsidiary.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>GAAP</I>&#148;
means generally accepted accounting principles in the United States which are in
effect on the Issue Date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>General
Credit Facility</I>&#148; means the credit agreement to be entered into as of the
Issue Date by and among the Issuer, the lenders party thereto in their
capacities as lenders thereunder and Citicorp North America, Inc., as
Administrative Agent, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements, refundings or
refinancings thereof and any indentures, notes, debentures or credit facilities
or commercial paper facilities with banks or other institutional lenders or
investors that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount
borrowable thereunder or alters the maturity thereof (<I>provided </I>that such
increase in borrowings is permitted under &#147;Certain Covenants&#151;Limitation on
Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock&#148; above).</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Government
Securities</I>&#148; means securities that are:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">which, in either case, are not
callable or redeemable at the option of the issuers thereof, and shall also
include a depository receipt issued by a bank (as defined in
Section&nbsp;3(a)(2) of the Securities Act), as custodian with respect to any
such Government Securities or a specific payment of principal of or interest on
any such Government Securities held by such custodian for the account of the
holder of such depository receipt; <I>provided</I> that (except as required by
law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the Government Securities or the specific payment of
principal of or interest on the Government Securities evidenced by such
depository receipt.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>guarantee</I>&#148;
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including letters of credit and reimbursement agreements in respect
thereof), of all or any part of any Indebtedness or other obligations.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Guarantee</I>&#148;
means the guarantee by any Guarantor of the Issuer&#146;s Obligations under the
Senior Subordinated Indenture.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Guarantor</I>&#148;
means each Restricted Subsidiary that Guarantees the Senior Subordinated Notes
in accordance with the terms of the Senior Subordinated Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Hedging
Obligations</I>&#148; means, with respect to any Person, the obligations of such
Person under any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement, commodity swap agreement, commodity cap
agreement, commodity collar agreement, foreign exchange contract, currency swap
agreement or </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>132</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">similar
agreement providing for the transfer or mitigation of interest rate or currency
risks either generally or under specific contingencies.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Holder</I>&#148;
means the Person in whose name a Senior Subordinated Note is registered on the
registrar&#146;s books.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Indebtedness</I>&#148;
means, with respect to any Person, without duplication:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
indebtedness (including principal and premium) of such Person, whether or not
contingent:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in
respect of borrowed money;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">evidenced
by bonds, notes, debentures or similar instruments or letters of credit or
bankers&#146; acceptances (or, without duplication, reimbursement agreements in
respect thereof);</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">representing
the balance deferred and unpaid of the purchase price of any property (including
Capitalized Lease Obligations), except (i)&nbsp;any such balance that
constitutes a trade payable or similar obligation to a trade creditor, in each
case accrued in the ordinary course of business and (ii)&nbsp;any earn-out
obligations until such obligation becomes a liability on the balance sheet of
such Person in accordance with GAAP; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">representing
any Hedging Obligations;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px">if and to
the extent that any of the foregoing Indebtedness (other than letters of credit
and Hedging Obligations) would appear as a liability upon a balance sheet
(excluding the footnotes thereto) of such Person prepared in accordance with
GAAP;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to the extent
not otherwise included, any obligation by such Person to be liable for, or to
pay, as obligor, guarantor or otherwise on, the obligations of the type referred
to in clause&nbsp;(1) of a third Person (whether or not such items would appear
upon the balance sheet of the such obligor or guarantor), other than by
endorsement of negotiable instruments for collection in the ordinary course of
business; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">to the extent
not otherwise included, the obligations of the type referred to in
clause&nbsp;(1) of a third Person secured by a Lien on any asset owned by such
first Person, whether or not such Indebtedness is assumed by such first
Person;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I>, <I>however</I>,
that notwithstanding the foregoing, Indebtedness shall be deemed not to include
(a)&nbsp;Contingent Obligations incurred in the ordinary course of business or
(b)&nbsp;obligations under or in respect of Receivables Facilities.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Independent
Financial Advisor</I>&#148; means an accounting, appraisal, investment banking firm
or consultant to Persons engaged in Similar Businesses of nationally recognized
standing that is, in the good faith judgment of the Issuer, qualified to perform
the task for which it has been engaged.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Initial
Purchasers</I>&#148; means Goldman, Sachs&nbsp;&amp; Co., Citigroup Global
Markets&nbsp;Inc., Lehman Brothers&nbsp;Inc. and Wachovia Capital Markets,
LLC.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>insolvency
or liquidation proceeding</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any case
commenced by or against the Issuer or any Guarantor under any Bankruptcy Law for
the relief of debtors, any other proceeding for the reorganization,
recapitalization or adjustment or marshalling of the assets or liabilities of
the Issuer or any Guarantor, any receivership or assignment for the benefit of
creditors relating to the Issuer or any Guarantor or any similar case or
proceeding relative to the Issuer or any Guarantor or its creditors, as such, in
each case whether or not voluntary;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>133</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to the Issuer or any Guarantor, in each case whether or not
voluntary and whether or not involving bankruptcy or insolvency; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any other
proceeding of any type or nature in which substantially all claims of creditors
of the Issuer or any Guarantor are determined and any payment or distribution is
or may be made on account of such claims.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Investment
Grade Rating</I>&#148; means a rating equal to or higher than Baa3 (or the
equivalent) by Moody&#146;s and BBB- (or the equivalent) by S&amp;P, or an equivalent
rating by any other Rating Agency.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Investment
Grade Securities</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof (other than Cash
Equivalents);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">debt
securities or debt instruments with an Investment Grade Rating, but excluding
any debt securities or instruments constituting loans or advances among the
Issuer and its Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">investments
in any fund that invests exclusively in investments of the type described in
clauses (1)&nbsp;and (2)&nbsp;which fund may also hold immaterial amounts of
cash pending investment or distribution; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">corresponding
instruments in countries other than the United States customarily utilized for
high quality investments.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Investments</I>&#148;
means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of loans (including guarantees),
advances or capital contributions (excluding accounts receivable, trade credit,
advances to customers, commissions, travel and similar advances to officers and
employees, in each case made in the ordinary course of business), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other
securities issued by any other Person and investments that are required by GAAP
to be classified on the balance sheet (excluding the footnotes) of the Issuer in
the same manner as the other investments included in this definition to the
extent such transactions involve the transfer of cash or other property. For
purposes of the definition of &#147;Unrestricted Subsidiary&#148; and the covenant
described under &#147;Certain Covenants&#151;Limitation on Restricted Payments&#148;:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">&#147;Investments&#148;
shall include the portion (proportionate to the Issuer&#146;s equity interest in such
Subsidiary) of the fair market value of the net assets of a Subsidiary of the
Issuer at the time that such Subsidiary is designated an Unrestricted
Subsidiary; <I>provided</I>, <I>however</I>, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Issuer shall be deemed to continue to
have a permanent &#147;Investment&#148; in an Unrestricted Subsidiary in an amount (if
positive) equal to:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Issuer&#146;s &#147;Investment&#148; in such Subsidiary at the time of such redesignation;
<I>less</I></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
portion (proportionate to the Issuer equity interest in such Subsidiary) of the
fair market value of the net assets of such Subsidiary at the time of such
redesignation; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any property
transferred to or from an Unrestricted Subsidiary shall be valued at its fair
market value at the time of such transfer, in each case as determined in good
faith by the Issuer.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Investors</I>&#148;
means Kohlberg Kravis Roberts&nbsp;&amp; Co. L.P. GS Capital Partners VI Fund,
L.P. and funds managed by Citigroup Private Equity LP, and each of their
respective Affiliates but not including, however, any portfolio companies of any
of the foregoing.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Issue
Date</I>&#148; means July&nbsp;6, 2007.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>134</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Issuer</I>&#148;
has the meaning set forth in the first paragraph under &#147;General&#148;;
<I>provided</I> that when used in the context of determining the fair market
value of an asset or liability under the Senior Subordinated Indenture other
than in calculating the ABL Facility Cap, &#147;Issuer&#148; shall be deemed to mean the
board of directors of the Issuer when the fair market value is equal to or in
excess of $50.0&nbsp;million (unless otherwise expressly stated).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Legal
Holiday</I>&#148; means a Saturday, a Sunday or a day on which commercial banking
institutions are not required to be open in the State of New York.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Lien</I>&#148;
means, with respect to any asset, any mortgage, lien (statutory or otherwise),
pledge, hypothecation, charge, security interest, preference, priority or
encumbrance of any kind in respect of such asset, whether or not filed, recorded
or otherwise perfected under applicable law, including any conditional sale or
other title retention agreement, any lease in the nature thereof, any option or
other agreement to sell or give a security interest in and any filing of or
agreement to give any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction; <I>provided</I> that in no event shall
an operating lease be deemed to constitute a Lien.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Moody&#146;s</I>&#148;
means Moody&#146;s Investors Service,&nbsp;Inc. and any successor to its rating
agency business.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Net
Income</I>&#148; means, with respect to any Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect
of Preferred Stock dividends.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Net
Proceeds</I>&#148; means the aggregate cash proceeds received by the Issuer or any of
its Restricted Subsidiaries in respect of any Asset Sale, including any cash
received upon the sale or other disposition of any Designated Non-cash
Consideration received in any Asset Sale, net of the direct costs relating to
such Asset Sale and the sale or disposition of such Designated Non-cash
Consideration, including legal, accounting and investment banking fees, and
brokerage and sales commissions, any relocation expenses incurred as a result
thereof, taxes paid or payable as a result thereof (after taking into account
any available tax credits or deductions and any tax sharing arrangements),
amounts required to be applied to the repayment of principal, premium, if any,
and interest on Senior Indebtedness required (other than required by
clause&nbsp;(1) of the second paragraph of &#147;Repurchase at the Option of
Holders&#151;Asset Sales&#148;) to be paid as a result of such transaction and any
deduction of appropriate amounts to be provided by the Issuer or any of its
Restricted Subsidiaries as a reserve in accordance with GAAP against any
liabilities associated with the asset disposed of in such transaction and
retained by the Issuer or any of its Restricted Subsidiaries after such sale or
other disposition thereof, including pension and other post-employment benefit
liabilities and liabilities related to environmental matters or against any
indemnification obligations associated with such transaction.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Obligations</I>&#148;
means any principal, interest (including any interest accruing subsequent to the
filing of a petition in bankruptcy, reorganization or similar proceeding at the
rate provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable state, federal or foreign law),
premium, penalties, fees, indemnifications, reimbursements (including
reimbursement obligations with respect to letters of credit and bankers&#146;
acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities, payable under the documentation governing any
Indebtedness.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Officer</I>&#148;
means the Chairman of the Board, the Chief Executive Officer, the President, any
Executive Vice President, Senior Vice President or Vice President, the Treasurer
or the Secretary of the Issuer.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Officer&#146;s
Certificate</I>&#148; means a certificate signed on behalf of the Issuer by an
Officer of the Issuer, who must be the principal executive officer, the
principal financial officer, the treasurer or the principal accounting officer
of the Issuer, that meets the requirements set forth in the Senior Subordinated
Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Opinion
of Counsel</I>&#148; means a written opinion from legal counsel who is acceptable to
the Trustee. The counsel may be an employee of or counsel to the Issuer or the
Trustee.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Partial
PIK Interest</I>&#148; has the meaning set forth under &#147;Principal, Maturity and
Interest.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>135</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Permitted
Asset Swap</I>&#148; means the concurrent purchase and sale or exchange of Related
Business Assets or a combination of Related Business Assets and cash or Cash
Equivalents between the Issuer or any of its Restricted Subsidiaries and another
Person; <I>provided</I>, that any cash or Cash Equivalents received must be
applied in accordance with the covenant described under &#147;Repurchase at the
Option of Holders&#151;Asset Sales.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Permitted
Holders</I>&#148; means each of the Investors, members of management of the Issuer
(or its direct or indirect parent) and any assignees of the equity commitments
of the Investors on the Issue Date who are (or will be pursuant to the
agreements referenced in &#147;The Transactions&#148; section included elsewhere in this
prospectus) &nbsp;holders of Equity Interests of the Issuer (or any of its
direct or indirect parent companies) and any group (within the meaning of
Section&nbsp;13(d)(3) or Section&nbsp;14(d)(2) of the Exchange Act or any
successor provision) of which any of the foregoing are members; <I>provided</I>
that, in the case of such group and without giving effect to the existence of
such group or any other group, such Investors, members of management and
assignees of the equity commitments of the Investors, collectively, have
beneficial ownership of more than 50% of the total voting power of the Voting
Stock of the Issuer or any of its direct or indirect parent companies.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Permitted
Investments</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment in the Issuer or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment in cash and Cash Equivalents or Investment Grade Securities;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment by the Issuer or any of its Restricted Subsidiaries in a Person that
is engaged in a Similar Business if as a result of such Investment:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Person becomes a Restricted Subsidiary; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Person, in one transaction or a series of related transactions, is merged or
consolidated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Issuer or a Restricted Subsidiary,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">and, in each case, any
Investment held by such Person; <I>provided,</I> that such Investment was not
acquired by such Person in contemplation of such acquisition, merger,
consolidation or transfer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment in securities or other assets not constituting cash, Cash Equivalents
or Investment Grade Securities and received in connection with an Asset Sale
made pursuant to the provisions described under &#147;Repurchase at the Option of
Holders&#151;Asset Sales&#148; or any other disposition of assets not constituting an
Asset Sale;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment existing on the Issue Date;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment acquired by the Issuer or any of its Restricted Subsidiaries:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">in
exchange for any other Investment or accounts receivable held by the Issuer or
any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such
other Investment or accounts receivable; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">as
a result of a foreclosure by the Issuer or any of its Restricted Subsidiaries
with respect to any secured Investment or other transfer of title with respect
to any secured Investment in default;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Hedging
Obligations permitted under clause&nbsp;(11) of the second paragraph of the
covenant described in &#147;Certain Covenants&#151;Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Investment in a Similar Business having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause&nbsp;(8) that
are at that time outstanding, not to exceed $50.0&nbsp;million at </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>136</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">the
time of such Investment (with the fair market value of each Investment being
measured at the time made and without giving effect to subsequent changes in
value);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
the payment for which consists of Equity Interests (exclusive of Disqualified
Stock) of the Issuer or any of its direct or indirect parent companies;
<I>provided</I>, <I>however</I>, that such Equity Interests will not increase
the amount available for Restricted Payments under clause&nbsp;(3) of the first
paragraph under the covenant described in &#147;Certain Covenants&#151;Limitations on
Restricted Payments&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">guarantees of
Indebtedness permitted under the covenant described in &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
transaction to the extent it constitutes an Investment that is permitted and
made in accordance with the provisions of the second paragraph of the covenant
described under &#147;Certain Covenants&#151;Transactions with Affiliates&#148; (except
transactions described in clauses (2), (5)&nbsp;and (9)&nbsp;of such
paragraph);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">additional
Investments having an aggregate fair market value, taken together with all other
Investments made pursuant to this clause&nbsp;(13) that are at that time
outstanding (without giving effect to the sale of an Unrestricted Subsidiary to
the extent the proceeds of such sale do not consist of cash or marketable
securities), not to exceed $100.0&nbsp;million at the time of such Investment
(with the fair market value of each Investment being measured at the time made
and without giving effect to subsequent changes in value);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
relating to a Receivables Subsidiary that, in the good faith determination of
the Issuer, are necessary or advisable to effect the ABL Facility or any
Receivables Facility, as the case may be;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">advances to,
or guarantees of Indebtedness of, employees not in excess of $10.0&nbsp;million
outstanding at any one time, in the aggregate;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(16)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">loans and
advances to officers, directors and employees for business-related travel
expenses, moving expenses and other similar expenses, in each case incurred in
the ordinary course of business or consistent with past practices or to fund
such Person&#146;s purchase of Equity Interests of the Issuer or any direct or
indirect parent company thereof; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(17)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment or the licensing or contribution of intellectual property pursuant to
joint marketing arrangements with other Persons.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Permitted
Junior Securities</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Equity
Interests in the Issuer, any Guarantor or any direct or indirect parent of the
Issuer; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">unsecured
debt securities that are subordinated to all Senior Indebtedness (and any debt
securities issued in exchange for Senior Indebtedness) to substantially the same
extent as, or to a greater extent than, the Senior Subordinated Notes and the
related Guarantees are subordinated to Senior Indebtedness under the Senior
Subordinated Indenture;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px"><I>provided</I>
that the term &#147;Permitted Junior Securities&#148; shall not include any securities
distributed pursuant to a plan of reorganization if the Indebtedness under the
Senior Credit Facilities is treated as part of the same class as the Senior
Subordinated Notes for purposes of such plan of reorganization; <I>provided
further</I> that to the extent that any Senior Indebtedness of the Issuer
outstanding on the date of consummation of any such plan of reorganization is
not paid in full in cash on such date, the holders of any such Senior
Indebtedness not so paid in full in cash have consented to the terms of such
plan of reorganization.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Permitted
Liens</I>&#148; means, with respect to any Person:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>137</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">pledges or
deposits by such Person under workmen&#146;s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection with
bids, tenders, contracts (other than for the payment of Indebtedness) or leases
to which such Person is a party, or deposits to secure public or statutory
obligations of such Person or deposits of cash or U.S. government bonds to
secure surety or appeal bonds to which such Person is a party, or deposits as
security for contested taxes or import duties or for the payment of rent, in
each case incurred in the ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens imposed
by law, such as carriers&#146;, warehousemen&#146;s and mechanics&#146; Liens, in each case for
sums not yet overdue for a period of more than 30&nbsp;days or being contested
in good faith by appropriate proceedings or other Liens arising out of judgments
or awards against such Person with respect to which such Person shall then be
proceeding with an appeal or other proceedings for review if adequate reserves
with respect thereto are maintained on the books of such Person in accordance
with GAAP;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens for
taxes, assessments or other governmental charges not yet overdue for a period of
more than 30&nbsp;days or payable or subject to penalties for nonpayment or
which are being contested in good faith by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the books
of such Person in accordance with GAAP;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens in
favor of issuers of performance and surety bonds or bid bonds or with respect to
other regulatory requirements or letters of credit issued pursuant to the
request of and for the account of such Person in the ordinary course of its
business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">minor survey
exceptions, minor encumbrances, easements or reservations of, or rights of
others for, licenses, rights-of-way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning or other restrictions as
to the use of real properties or Liens incidental to the conduct of the business
of such Person or to the ownership of its properties which were not incurred in
connection with Indebtedness and which do not in the aggregate materially
adversely affect the value of said properties or materially impair their use in
the operation of the business of such Person;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(6)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
securing Indebtedness permitted to be incurred pursuant to clauses (1), (5),
(13), (14), (19)&nbsp;or (20)&nbsp;of the second paragraph under &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148;; <I>provided</I> that (a)&nbsp;Liens securing
Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred
pursuant to clause&nbsp;(14) relate only to Refinancing Indebtedness that serves
to refund or refinance Indebtedness, Disqualified Stock or Preferred Stock
incurred under clause&nbsp;(5) or (13)&nbsp;of the second paragraph under
&#147;Certain Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock,&#148; (b)&nbsp;Liens securing Indebtedness
permitted to be incurred pursuant to clause&nbsp;(19) extend only to the assets
of Foreign Subsidiaries, (c)&nbsp;Liens securing Indebtedness permitted to be
incurred pursuant to clause&nbsp;(20) are solely on acquired property or the
assets of the acquired entity, as the case may be and (d)&nbsp;Liens securing
Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred
pursuant to clause&nbsp;(5) of the second paragraph under &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148; extend only to the assets so financed, purchased,
constructed or improved;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(7)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
existing on the Issue Date (other than Liens in favor of the lenders under the
Senior Credit Facilities);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(8)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
property or shares of stock of a Person at the time such Person becomes a
Subsidiary; <I>provided</I>, <I>however</I>, such Liens are not created or
incurred in connection with, or in contemplation of, such other Person becoming
such a Subsidiary; <I>provided</I>, <I>further</I>, <I>however</I>, that such
Liens may not extend to any other property owned by the Issuer or any of its
Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(9)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
property at the time the Issuer or a Restricted Subsidiary acquired the
property, including any acquisition by means of a merger or consolidation with
or into the Issuer or any of its Restricted Subsidiaries; <I>provided</I>,
<I>however</I>, that such Liens are not created or incurred in connection with,
or in contemplation of, such acquisition; <I>provided</I>, <I>further</I>,
<I>however</I>, that the Liens may not extend to any other property owned by the
Issuer or any of its Restricted Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>138</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(10)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
securing Indebtedness or other obligations of a Restricted Subsidiary owing to
the Issuer or another Restricted Subsidiary permitted to be incurred in
accordance with the covenant described under &#147;Certain Covenants&#151;Limitation on
Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock&#148;;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(11)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
securing Hedging Obligations so long as the related Indebtedness is, and is
permitted to be under the Senior Subordinated Indenture, secured by a Lien on
the same property securing such Hedging Obligations;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(12)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
specific items of inventory or other goods and proceeds of any Person securing
such Person&#146;s obligations in respect of bankers&#146; acceptances issued or created
for the account of such Person to facilitate the purchase, shipment or storage
of such inventory or other goods;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(13)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">leases,
subleases, licenses or sublicenses granted to others in the ordinary course of
business which do not materially interfere with the ordinary conduct of the
business of the Issuer or any of its Restricted Subsidiaries and do not secure
any Indebtedness;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(14)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens arising
from Uniform Commercial Code financing statement filings regarding operating
leases entered into by the Issuer and its Restricted Subsidiaries in the
ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(15)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens in
favor of the Issuer or any Guarantor;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(16)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
equipment of the Issuer or any of its Restricted Subsidiaries granted in the
ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(17)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens on
accounts receivable and related assets incurred in connection with a Receivables
Facility;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(18)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens to
secure any refinancing, refunding, extension, renewal or replacement (or
successive refinancing, refunding, extensions, renewals or replacements) as a
whole, or in part, of any Indebtedness secured by any Lien referred to in the
foregoing clauses (6), (7), (8)&nbsp;and (9); <I>provided</I>, <I>however</I>,
that (a)&nbsp;such new Lien shall be limited to all or part of the same property
that secured the original Lien (plus improvements on such property), and
(b)&nbsp;the Indebtedness secured by such Lien at such time is not increased to
any amount greater than the sum of (i)&nbsp;the outstanding principal amount or,
if greater, committed amount of the Indebtedness described under clauses (6),
(7), (8)&nbsp;and (9)&nbsp;at the time the original Lien became a Permitted Lien
under the Senior Subordinated Indenture, and (ii)&nbsp;an amount necessary to
pay any fees and expenses, including premiums, related to such refinancing,
refunding, extension, renewal or replacement;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(19)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">deposits made
in the ordinary course of business to secure liability to insurance
carriers;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(20)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">other Liens
securing obligations incurred in the ordinary course of business which
obligations do not exceed $20.0&nbsp;million at any one time outstanding;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(21)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
securing judgments for the payment of money not constituting an Event of Default
under clause&nbsp;(5) under the caption &#147;Events of Default and Remedies&#148; so long
as such Liens are adequately bonded and any appropriate legal proceedings that
may have been duly initiated for the review of such judgment have not been
finally terminated or the period within which such proceedings may be initiated
has not expired;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(22)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens in
favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods in the
ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(23)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
(i)&nbsp;of a collection bank arising under Section&nbsp;4-210 of the Uniform
Commercial Code, or any comparable or successor provision, on items in the
course of collection, (ii)&nbsp;attaching to commodity trading accounts or other
commodity brokerage accounts incurred in the ordinary course of business, and
(iii)&nbsp;in favor of banking institutions arising as a matter of law
encumbering deposits (including the right of set-off) and which are within the
general parameters customary in the banking industry;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>139</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(24)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens deemed
to exist in connection with Investments in repurchase agreements permitted under
&#147;Certain Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock&#148;; <I>provided</I> that such Liens do not
extend to any assets other than those that are the subject of such repurchase
agreements;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(25)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens that
are contractual rights of set-off (i)&nbsp;relating to the establishment of
depository relations with banks not given in connection with the issuance of
Indebtedness, (ii)&nbsp;relating to pooled deposit or sweep accounts of the
Issuer or any of its Restricted Subsidiaries to permit satisfaction of overdraft
or similar obligations incurred in the ordinary course of business of the Issuer
and its Restricted Subsidiaries or (iii)&nbsp;relating to purchase orders and
other agreements entered into with customers of the Issuer or any of its
Restricted Subsidiaries in the ordinary course of business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(26)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens
encumbering reasonable customary initial deposits and margin deposits and
similar Liens attaching to commodity trading accounts or other brokerage
accounts incurred in the ordinary course of business and not for speculative
purposes; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(27)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Liens arising
out of conditional sale, title retention, consignment or similar arrangements
for the sale or purchase of goods entered into by the Issuer or any Restricted
Subsidiary in the ordinary course of business.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">For purposes
of this definition, the term &#147;Indebtedness&#148; shall be deemed to include interest
on such Indebtedness.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Person</I>&#148;
means any individual, corporation, limited liability company, partnership, joint
venture, association, joint stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other
entity.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>PIK
Interest</I>&#148; has the meaning set forth under &#147;Principal, Maturity and
Interest.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>PIK
Notes</I>&#148; has the meaning set forth under &#147;Principal, Maturity and
Interest.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>PIK
Payment</I>&#148; has the meaning set forth under &#147;Principal, Maturity and
Interest.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Plan of
Reorganization</I>&#148; means any plan of reorganization, plan of liquidation,
agreement for composition, or other type of plan of arrangement proposed in or
in connection with any insolvency or liquidation proceeding.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Preferred
Stock</I>&#148; means any Equity Interest with preferential rights of payment of
dividends or upon liquidation, dissolution or winding up.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Purchase
Money Obligations</I>&#148; means any Indebtedness incurred to finance or refinance
the acquisition, leasing, construction or improvement of property (real or
personal) or assets (other than Capital Stock), and whether acquired through the
direct acquisition of such property or assets, or otherwise.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Qualified
Proceeds</I>&#148; means the fair value of assets that are used or useful in, or
Capital Stock of any Person engaged in, a Similar Business; <I>provided</I> that
the fair market value of any such assets or Capital Stock shall be determined by
the Issuer in good faith.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Rating
Agencies</I>&#148; means Moody&#146;s and S&amp;P or if Moody&#146;s or S&amp;P or both shall
not make a rating on the Senior Subordinated Notes publicly available, a
nationally recognized statistical rating agency or agencies, as the case may be,
selected by the Issuer which shall be substituted for Moody&#146;s or S&amp;P or
both, as the case may be.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Receivables
Facility</I>&#148; means any of one or more receivables financing facilities as
amended, supplemented, modified, extended, renewed, restated or refunded from
time to time, the Obligations of which are non-recourse (except for customary
representations, warranties, covenants and indemnities made in connection with
such facilities) to the Issuer or any of its Restricted Subsidiaries (other than
a Receivables Subsidiary) pursuant to </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>140</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">which
the Issuer or any of its Restricted Subsidiaries purports to sell its accounts
receivable to either (a)&nbsp;a Person that is not a Restricted Subsidiary or
(b)&nbsp;a Receivables Subsidiary that in turn funds such purchase by purporting
to sell its accounts receivable to a Person that is not a Restricted Subsidiary
or by borrowing from such a Person or from another Receivables Subsidiary that
in turn funds itself by borrowing from such a Person.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Receivables
Fees</I>&#148; means distributions or payments made directly or by means of discounts
with respect to any accounts receivable or participation interest therein issued
or sold in connection with, and other fees paid to a Person that is not a
Restricted Subsidiary in connection with any Receivables Facility.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Receivables
Subsidiary</I>&#148; means any Subsidiary formed for the purpose of facilitating or
entering into one or more Receivables Facilities, and in each case engages only
in activities reasonably related or incidental thereto.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Redemption
Date</I>&#148; has the meaning set forth under &#147;Optional Redemption.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Registration
Rights Agreement</I>&#148; means the Registration Rights Agreement related to the
Senior Subordinated Notes, dated as of the Issue Date, among the Issuer, the
Guarantors and the Initial Purchasers.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Related
Business Assets</I>&#148; means assets (other than cash or Cash Equivalents) used or
useful in a Similar Business; <I>provided</I> that any assets received by the
Issuer or a Restricted Subsidiary in exchange for assets transferred by the
Issuer or a Restricted Subsidiary will not be deemed to be Related Business
Assets if they consist of securities of a Person, unless upon receipt of the
securities of such Person, such Person would become a Restricted Subsidiary.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px"><I>&#147;Representative&#148;</I>
means, with respect to a person, any trustee, agent or representative (if any)
for an issue of Senior Indebtedness of such Person.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Restricted
Investment</I>&#148; means an Investment other than a Permitted Investment.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Restricted
Subsidiary</I>&#148; means, at any time, any direct or indirect Subsidiary of the
Issuer (including any Foreign Subsidiary) that is not then an Unrestricted
Subsidiary; <I>provided</I>, <I>however</I>, that upon an Unrestricted
Subsidiary&#146;s ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be
included in the definition of &#147;Restricted Subsidiary.&#148;</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>S&amp;P</I>&#148;
means Standard&nbsp;&amp; Poor&#146;s, a division of The McGraw-Hill
Companies,&nbsp;Inc., and any successor to its rating agency business.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Sale and
Lease-Back Transaction</I>&#148; means any arrangement providing for the leasing by
the Issuer or any of its Restricted Subsidiaries of any real or tangible
personal property, which property has been or is to be sold or transferred by
the Issuer or such Restricted Subsidiary to a third Person in contemplation of
such leasing.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>SEC</I>&#148;
means the U.S. Securities and Exchange Commission.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Secured
Indebtedness</I>&#148; means any Indebtedness of the Issuer or any of its Restricted
Subsidiaries secured by a Lien.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Securities
Act</I>&#148; means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Credit Facilities</I>&#148; means the ABL Facility and the General Credit
Facility.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Indebtedness</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all
Indebtedness of the Issuer or any Guarantor outstanding under the Senior Credit
Facilities or the Senior Notes and related Guarantees (including interest
accruing on or after the filing of any petition in bankruptcy or similar
proceeding or for reorganization of the Issuer or any Guarantor (at the rate
provided for in the </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>141</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">documentation
with respect thereto, regardless of whether or not a claim for post-filing
interest is allowed in such proceedings)), and any and all other fees, expense
reimbursement obligations, indemnification amounts, penalties, and other amounts
(whether existing on the Issue Date or thereafter created or incurred) and all
obligations of the Issuer or any Guarantor to reimburse any bank or other Person
in respect of amounts paid under letters of credit, acceptances or other similar
instruments;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all Hedging
Obligations (and guarantees thereof) owing to a Lender (as defined in the Senior
Credit Facilities) or any Affiliate of such Lender (or any Person that was a
Lender or an Affiliate of such Lender at the time the applicable agreement
giving rise to such Hedging Obligation was entered into); <I>provided</I> that
such Hedging Obligations are permitted to be incurred under the terms of the
Senior Subordinated Indenture;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any other
Indebtedness of the Issuer or any Guarantor permitted to be incurred under the
terms of the Senior Subordinated Indenture, unless the instrument under which
such Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Senior Subordinated Notes or any related
Guarantee; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">all
Obligations with respect to the items listed in the preceding clauses (1),
(2)&nbsp;and (3);</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>provided</I>, <I>however</I>,
that Senior Indebtedness shall not include:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
obligation of such Person to the Issuer or any of its Subsidiaries;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any liability
for federal, state, local or other taxes owed or owing by such Person;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any accounts
payable or other liability to trade creditors arising in the ordinary course of
business;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(d)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Indebtedness or other Obligation of such Person which is subordinate or junior
in any respect to any other Indebtedness or other Obligation of such Person;
or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(e)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">that portion
of any Indebtedness which at the time of incurrence is incurred in violation of
the Senior Subordinated Indenture; <I>provided that</I> such Indebtedness shall
be deemed not to have been incurred in violation of the Senior Subordinated
Indenture for purposes of this clause if such Indebtedness consists of
Designated Senior Indebtedness, and the holders of such Indebtedness or their
agent or representative (a)&nbsp;had no actual knowledge at the time of
incurrence that the incurrence of such Indebtedness violated the Senior
Subordinated Indenture and (b)&nbsp;shall have received an Officer&#146;s Certificate
to the effect that the incurrence of such Indebtedness does not violate the
provisions of the Senior Subordinated Indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Indenture</I>&#148; means the Senior Indenture dated as of the Issue Date, among the
Issuer, the Guarantors, as guarantors and the Trustee, as trustee, pursuant to
which the Senior Notes are issued.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Notes</I>&#148; means the $1,175,000,000 aggregate principal amount of 10.625% senior
notes due 2015 issued by the Issuer under the Senior Indenture on the Issue
Date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Subordinated Exchange Notes</I>&#148; means any notes issued in exchange for the
Senior Subordinated Notes pursuant to the Registration Rights Agreement or
similar agreement.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Senior
Subordinated Indebtedness</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">with respect
to the Issuer, Indebtedness which ranks equal in right of payment to the Senior
Subordinated Notes, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">with respect
to any Guarantor, Indebtedness which ranks equal in right of payment to the
Guarantee of such entity of the Senior Subordinated Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>142</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Significant
Subsidiary</I>&#148; means any Restricted Subsidiary that would be a &#147;significant
subsidiary&#148; as defined in Article&nbsp;1, Rule&nbsp;1-02 of Regulation&nbsp;S-X,
promulgated pursuant to the Securities Act, as such regulation is in effect on
the Issue Date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Similar
Business</I>&#148; means any business conducted or proposed to be conducted by the
Issuer and its Restricted Subsidiaries on the Issue Date or any business that is
similar, reasonably related, incidental or ancillary thereto.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Special
Interest</I>&#148; means all additional interest then owing pursuant to the
Registration Rights Agreement.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Sponsor
Management Agreement</I>&#148; means the management agreement between certain of the
management companies associated with the Investors and the Issuer.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Subordinated
Indebtedness</I>&#148; means, with respect to the Senior Subordinated Notes,</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Indebtedness of the Issuer which is by its terms subordinated in right of
payment to the Senior Subordinated Notes, and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Indebtedness of any Guarantor which is by its terms subordinated in right of
payment to the Guarantee of such entity of the Senior Subordinated Notes.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Subsidiary</I>&#148;
means, with respect to any Person:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
corporation, association, or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of which more than
50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time of determination owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person or a combination thereof or is consolidated under
GAAP with such Person at such time; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
partnership, joint venture, limited liability company or similar entity of
which</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(x)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">more
than 50% of the capital accounts, distribution rights, total equity and voting
interests or general or limited partnership interests, as applicable, are owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof whether in the form
of membership, general, special or limited partnership or otherwise, and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(y)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
Person or any Restricted Subsidiary of such Person is a controlling general
partner or otherwise controls such entity.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Total
Assets</I>&#148; means the total assets of the Issuer and its Restricted Subsidiaries
on a consolidated basis, as shown on the most recent consolidated balance sheet
of the Issuer or such other Person as may be expressly stated.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Transactions</I>&#148;
means the acquisition of all of the outstanding capital stock of Dollar General
Corporation, including the payment of the acquisition consideration in
connection therewith, the equity investment by the Investors and members of
management, the issuance of the Senior Notes and the Senior Subordinated Notes,
the tender offer and consent solicitation for any and all of the outstanding
8<SUP>5</SUP>/<SUB>8</SUB>% Notes due 2010 of Dollar General Corporation and the
execution of, and borrowings on the Issue Date under, the Senior Credit
Facilities and, the pledge and security arrangements in connection with the
foregoing, in each case as in effect on the Issue Date, and the related
transactions described in this prospectus under the section thereof entitled
&#147;The Transactions.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Treasury
Rate</I>&#148; means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity
(as compiled and published in the most recent Federal Reserve Statistical
Release H.15 (519)&nbsp;that has become publicly available at least two Business
Days prior to the Redemption Date (or, if such Statistical Release is no longer
published, any publicly available source of similar </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>143</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">market
data)) most nearly equal to the period from the Redemption Date to July&nbsp;15,
2012; <I>provided</I>, <I>however</I>, that if the period from the Redemption
Date to July&nbsp;15, 2012 is less than one year, the weekly average yield on
actually traded United States Treasury securities adjusted to a constant
maturity of one year will be used.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Trust
Indenture Act</I>&#148; means the Trust Indenture Act of 1939, as amended (15 U.S.C
&#167;&#167;&nbsp;77aaa-777bbbb).</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Unrestricted
Subsidiary</I>&#148; means:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Subsidiary of the Issuer which at the time of determination is an Unrestricted
Subsidiary (as designated by the Issuer, as provided below); and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Subsidiary of an Unrestricted Subsidiary.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
may designate any Subsidiary of the Issuer (including any existing Subsidiary
and any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Equity
Interests or Indebtedness of, or owns or holds any Lien on, any property of, the
Issuer or any Subsidiary of the Issuer (other than solely any Subsidiary of the
Subsidiary to be so designated); <I>provided</I> that:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">any
Unrestricted Subsidiary must be an entity of which the Equity Interests entitled
to cast at least a majority of the votes that may be cast by all Equity
Interests having ordinary voting power for the election of directors or Persons
performing a similar function are owned, directly or indirectly, by the
Issuer;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">such
designation complies with the covenants described under &#147;Certain
Covenants&#151;Limitation on Restricted Payments&#148;; and</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">each of:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the
Subsidiary to be so designated; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">its
Subsidiaries</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px">has not at
the time of designation, and does not thereafter, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Issuer or any Restricted Subsidiary.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
<I>provided</I> that, immediately after giving effect to such designation, no
Default shall have occurred and be continuing and either:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Issuer
could incur at least $1.00 of additional Indebtedness pursuant to the Fixed
Charge Coverage Ratio test described in the first paragraph under &#147;Certain
Covenants&#151;Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock&#148;; or</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the Fixed
Charge Coverage Ratio for the Issuer and its Restricted Subsidiaries would be
greater than such ratio for the Issuer and its Restricted Subsidiaries
immediately prior to such designation, in each case on a <I>pro forma</I> basis
taking into account such designation.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Issuer
shall notify the Trustee of any such designation by promptly filing with the
Trustee a copy of the resolution of the board of directors of the Issuer or any
committee thereof giving effect to such designation and an Officer&#146;s Certificate
certifying that such designation complied with the foregoing provisions.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Voting
Stock</I>&#148; of any Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the board of directors
of such Person.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>144</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">&#147;<I>Weighted
Average Life to Maturity</I>&#148; means, when applied to any Indebtedness,
Disqualified Stock or Preferred Stock, as the case may be, at any date, the
quotient obtained by dividing:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the sum of
the products of the number of years from the date of determination to the date
of each successive scheduled principal payment of such Indebtedness or
redemption or similar payment with respect to such Disqualified Stock or
Preferred Stock multiplied by the amount of such payment; by</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">the sum of
all such payments.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">&#147;<I>Wholly-Owned
Subsidiary</I>&#148; of any Person means a Subsidiary of such Person, 100% of the
outstanding Equity Interests of which (other than directors&#146; qualifying shares)
shall at the time be owned by such Person or by one or more Wholly-Owned
Subsidiaries of such Person.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>145</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>BOOK-ENTRY SETTLEMENT AND CLEARANCE</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>The global notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The notes are
represented by global notes in definitive, fully registered form, without
interest coupons (collectively, the &#147;global notes&#148;).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The global
notes have been deposited with the Trustee as custodian for DTC and registered
in the name of Cede&nbsp;&amp; Co., as nominee of DTC.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Ownership of
beneficial interests in each global note is limited to persons who have accounts
with DTC (&#147;DTC participants&#148;) or persons who hold interests through DTC
participants. We expect that under procedures established by DTC:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">upon deposit
of each global note with DTC&#146;s custodian, DTC will credit portions of the
principal amount of the global note to the accounts of the DTC participants;
and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">ownership of
beneficial interests in each global note will be shown on, and transfer of
ownership of those interests will be effected only through, records maintained
by DTC (with respect to interests of DTC participants) and the records of DTC
participants (with respect to other owners of beneficial interests in the global
note).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Beneficial
interests in the global notes may not be exchanged for notes in physical,
certificated form except in the limited circumstances described below.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Book-entry procedures for the
global notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">All interests
in the global notes will be subject to the operations and procedures of DTC,
Euroclear and Clearstream. We provide the following summaries of those
operations and procedures solely for the convenience of investors. The
operations and procedures of each settlement system are controlled by that
settlement system and may be changed at any time. Neither we nor the initial
purchasers are responsible for those operations or procedures.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">DTC has
advised us that it is:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a limited
purpose trust company organized under the laws of the State of New York;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a &#147;banking
organization&#148; within the meaning of the New York State Banking Law;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a member of
the Federal Reserve System;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a &#147;clearing
corporation&#148; within the meaning of the Uniform Commercial Code; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a &#147;clearing
agency&#148; registered under Section 17A of the Exchange Act.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">DTC was
created to hold securities for its participants and to facilitate the clearance
and settlement of securities transactions between its participants through
electronic book-entry changes to the accounts of its participants. DTC&#146;s
participants include securities brokers and dealers; banks and trust companies;
clearing corporations and other organizations. Indirect access to DTC&#146;s system
is also available to others such as banks, brokers, dealers and trust companies;
these indirect participants clear through or maintain a custodial relationship
with a DTC participant, either directly or indirectly. Investors who are not DTC
participants may beneficially own securities held by or on behalf of DTC only
through DTC participants or indirect participants in DTC.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">So long as
DTC&#146;s nominee is the registered owner of a global note, that nominee will be
considered the sole owner or holder of the notes represented by that global note
for all purposes under the applicable indenture. Except as provided below,
owners of beneficial interests in a global note:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>146</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">will not be
entitled to have notes represented by the global note registered in their
names;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">will not
receive or be entitled to receive physical, certificated notes; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">will not be
considered the owners or holders of the notes under the applicable indenture for
any purpose, including with respect to the giving of any direction, instruction
or approval to the Trustee under the applicable indenture.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">As a result,
each investor who owns a beneficial interest in a global note must rely on the
procedures of DTC to exercise any rights of a holder of notes under the
applicable indenture (and, if the investor is not a participant or an indirect
participant in DTC, on the procedures of the DTC participant through which the
investor owns its interest).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Payments of
principal, premium (if any) and interest with respect to the notes represented
by a global note will be made by the Trustee to DTC&#146;s nominee as the registered
holder of the global note. Neither we nor the Trustee will have any
responsibility or liability for the payment of amounts to owners of beneficial
interests in a global note, for any aspect of the records relating to or
payments made on account of those interests by DTC, or for maintaining,
supervising or reviewing any records of DTC relating to those interests.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Payments by
participants and indirect participants in DTC to the owners of beneficial
interests in a global note will be governed by standing instructions and
customary industry practice and will be the responsibility of those participants
or indirect participants and DTC.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Transfers
between participants in DTC will be effected under DTC&#146;s procedures and will be
settled in same-day funds. Transfers between participants in Euroclear or
Clearstream will be effected in the ordinary way under the rules and operating
procedures of those systems.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Cross-market
transfers between DTC participants, on the one hand, and Euroclear or
Clearstream participants, on the other hand, will be effected within DTC through
the DTC participants that are acting as depositaries for Euroclear and
Clearstream. To deliver or receive an interest in a global note held in a
Euroclear or Clearstream account, an investor must send transfer instructions to
Euroclear or Clearstream, as the case may be, under the rules and procedures of
that system and within the established deadlines of that system. If the
transaction meets its settlement requirements, Euroclear or Clearstream, as the
case may be, will send instructions to its DTC depositary to take action to
effect final settlement by delivering or receiving interests in the relevant
global notes in DTC, and making or receiving payment under normal procedures for
same-day funds settlement applicable to DTC. Euroclear and Clearstream
participants may not deliver instructions directly to the DTC depositaries that
are acting for Euroclear or Clearstream.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Because of
time zone differences, the securities account of a Euroclear or Clearstream
participant that purchases an interest in a global note from a DTC participant
will be credited on the business day for Euroclear or Clearstream immediately
following the DTC settlement date. Cash received in Euroclear or Clearstream
from the sale of an interest in a global note to a DTC participant will be
received with value on the DTC settlement date but will be available in the
relevant Euroclear or Clearstream cash account as of the business day for
Euroclear or Clearstream following the DTC settlement date.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">DTC,
Euroclear and Clearstream have agreed to the above procedures to facilitate
transfers of interests in the global notes among participants in those
settlement systems. However, the settlement systems are not obligated to perform
these procedures and may discontinue or change these procedures at any time.
Neither we nor the Trustee will have any responsibility for the performance by
DTC, Euroclear or Clearstream or their participants or indirect participants of
their obligations under the rules and procedures governing their operations.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>147</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><B>Certificated
notes</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Notes in
physical, certificated form will be issued and delivered to each person that DTC
identifies as a beneficial owner of the related notes only if:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">DTC notifies
us at any time that it is unwilling or unable to continue as depositary for the
global notes and a successor depositary is not appointed within
90&nbsp;days;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">DTC ceases
to be registered as a clearing agency under the Exchange Act and a successor
depositary is not appointed within 90 days;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">we, at our
option, notify the Trustee that we elect to cause the issuance of certificated
notes; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">certain
other events provided in the applicable indenture should occur.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>148</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>CERTAIN U.S. FEDERAL INCOME AND ESTATE TAX CONSEQUENCES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The following
is a summary of certain U.S. federal income and, in the case of non-U.S. holders
(as defined below), estate tax consequences of the purchase, ownership and
disposition of the notes as of the date hereof. Except where noted, this summary
deals only with notes that are held as capital assets.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">As used
herein, a &#147;U.S. holder&#148; means a beneficial owner of the notes that is for U.S.
federal income tax purposes any of the following:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">an
individual citizen or resident of the United States;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a
corporation (or any other entity treated as a corporation for U.S. federal
income tax purposes) created or organized in or under the laws of the United
States, any state thereof or the District of Columbia;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">an estate
the income of which is subject to U.S. federal income taxation regardless of its
source; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a trust if
it (1)&nbsp;is subject to the primary supervision of a court within the United
States and one or more United States persons have the authority to control all
substantial decisions of the trust or (2)&nbsp;has a valid election in effect
under applicable United States Treasury regulations to be treated as a United
States person.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The term
&#147;non-U.S. holder&#148; means a beneficial owner of the notes (other than a
partnership or any other entity treated as a partnership for U.S. federal income
tax purposes) that is not a U.S. holder.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">This summary
does not represent a detailed description of the U.S. federal income tax
consequences applicable to you if you are a person subject to special tax
treatment under the U.S. federal income tax laws, including, without
limitation:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a dealer in
securities or currencies;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a financial
institution;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a regulated
investment company;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a real
estate investment trust;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a tax-exempt
organization;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">an insurance
company;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a person
holding the notes as part of a hedging, integrated, conversion or constructive
sale transaction or a straddle;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a trader in
securities that has elected the mark-to-market method of accounting for your
securities;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a person
liable for alternative minimum tax;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a
partnership or other pass-through entity for U.S. federal income tax
purposes;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a U.S.
holder whose &#147;functional currency&#148; is not the U.S. dollar;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a controlled
foreign corporation;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>149</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a passive
foreign investment company; or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">a U.S.
expatriate.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">This summary
is based on the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;), United
States Treasury regulations, administrative rulings and judicial decisions as of
the date hereof. Those authorities may be changed, possibly on a retroactive
basis, so as to result in U.S. federal income and estate tax consequences
different from those summarized below.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If a
partnership (including any entity classified as a partnership for U.S. federal
income tax purposes) holds notes, the tax treatment of a partner will generally
depend upon the status of the partner and the activities of the partnership. If
you are a partnership or a partner in a partnership holding notes, you should
consult your own tax advisors.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">This summary
does not represent a detailed description of the U.S. federal income and estate
tax consequences to you in light of your particular circumstances and does not
address the effects of any state, local or non-United States tax laws. It is not
intended to be, and should not be construed to be, legal or tax advice to any
particular purchaser of notes. <B>If you are considering the purchase of notes,
you should consult your own tax advisors concerning the particular U.S. federal
income and estate tax consequences to you of the ownership of the notes, as well
as the consequences to you arising under the laws of any other taxing
jurisdiction.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Certain Tax Consequences to
U.S. Holders</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The following
is a summary of certain U.S. federal income tax consequences that will apply to
U.S. holders of the notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B><I>Senior Notes</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>Payments of Interest on
Senior Notes</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Stated
interest on a senior note will generally be taxable to you as ordinary income at
the time it is paid or accrued in accordance with your method of accounting for
U.S. federal income tax purposes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>Market Discount</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If you
purchase a senior note for an amount that is less than its principal amount, the
amount of the difference will be treated as &#147;market discount&#148; for U.S. federal
income tax purposes, unless that difference is less than a specified de minimis
amount. Under the market discount rules, you will be required to treat any
principal payment on, or any gain on the sale, exchange, retirement or other
disposition of, a senior note as ordinary income to the extent of the market
discount that you have not previously included in income and are treated as
having accrued on the senior note at the time of the payment or disposition.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
you may be required to defer, until the maturity of the senior note or its
earlier disposition in a taxable transaction, the deduction of all or a portion
of the interest expense on any indebtedness attributable to the senior note. You
may elect, on a note-by-note basis, to deduct the deferred interest expense in a
tax year prior to the year of disposition. You should consult your own tax
advisors before making this election.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Any market
discount will be considered to accrue ratably during the period from the date of
acquisition to the maturity date of the senior note, unless you elect to accrue
on a constant interest method. You may elect to include market discount in
income currently as it accrues, on either a ratable or constant interest method,
in which case the rule described above regarding deferral of interest deductions
will not apply.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>150</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><I>Amortizable
Bond Premium</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If you
purchase a senior note for an amount in excess of its principal amount, you will
be considered to have purchased the senior note at a &#147;premium.&#148; You generally
may elect to amortize the premium over the remaining term of the senior note on
a constant yield method as an offset to interest when includible in income under
your regular accounting method. If you have elected to amortize the premium, the
amortizable bond premium will reduce interest income. If you do not elect to
amortize bond premium, that premium will decrease the gain or increase the loss
you would otherwise recognize on disposition of the senior note.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>Sale, Exchange, Retirement,
or Other Taxable Disposition of Senior Notes</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Upon the
sale, exchange, retirement, or other taxable disposition of a senior note, you
generally will recognize gain or loss equal to the difference between the amount
realized upon the sale, exchange, retirement or other taxable disposition (less
an amount equal to any accrued but unpaid interest, which will be taxable as
interest income as discussed above to the extent not previously included in
income by you) and the adjusted tax basis of the senior note. Your adjusted tax
basis in a senior note will, in general, be your cost for that senior note
increased by market discount previously included in income and reduced by any
amortized premium.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Except as
described above with respect to market discount, any gain or loss will be
capital gain or loss and will be long-term capital gain or loss if at the time
of sale, exchange, retirement or other disposition, the senior note has been
held for more than one year.. Capital gains of noncorporate U.S. holders
(including individuals) derived in respect of capital assets held for more than
one year are eligible for reduced rates of taxation. The deductibility of
capital losses is subject to limitations.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B><I>Senior Subordinated
Notes</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>Original Issue
Discount</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Because the
senior subordinated notes provide us with the option to pay PIK Interest in lieu
of paying cash interest for any interest payment period commencing on or after
July&nbsp;15, 2007 through July&nbsp;15, 2011, the senior subordinated notes are
treated as issued with original issue discount (&#147;OID&#148;), as described below. The
issuance of PIK Notes is generally not treated as a payment of interest.
Instead, a senior subordinated note and any PIK Notes issued in respect of PIK
Interest thereon are treated as a single debt instrument under the OID rules.
For U.S. federal income tax purposes, increasing the principal amount of the
senior subordinated notes will generally be treated the same as the issuance of
PIK Notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The senior
subordinated notes are treated as issued with OID in an amount equal to the
difference between their &#147;stated redemption price at maturity&#148; (the sum of all
payments to be made on the senior subordinated notes other than &#147;qualified
stated interest&#148;) and their &#147;issue price.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The &#147;issue
price&#148; of the senior subordinated notes is the first price at which a
substantial amount of such notes were sold (other than to an underwriter,
placement agent or wholesaler). The term &#147;qualified stated interest&#148; means
stated interest that is unconditionally payable in cash or in property (other
than debt instruments of the issuer) at least annually at a single fixed rate
or, subject to certain conditions, based on one or more interest indices.
Because we have the option for any interest payment period commencing on or
after January&nbsp;15, 2008, through July&nbsp;15, 2011 to make interest
payments in PIK Interest instead of paying cash, the stated interest payments on
the senior subordinated notes are not qualified stated interest. You must
generally include OID in your gross income as it accrues over the term of the
senior subordinated notes without regard to your regular method of accounting
for U.S. federal income tax purposes and in advance of the receipt of cash
payments attributable to that income. </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The amount of
OID that you must include in income will generally equal the sum of the &#147;daily
portions&#148; of OID with respect to the senior subordinated note for each day
during the taxable year or portion of the taxable year in which you held such
senior subordinated note (&#147;accrued OID&#148;). The daily portion is determined by
allocating to each day in any &#147;accrual period&#148; a pro rata portion of the OID
allocable to that accrual period. The &#147;accrual period&#148; for a senior subordinated
note may be of any length and may vary in length over the term of the senior
subordinated </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>151</P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">note,
provided that each accrual period is no longer than one year and each scheduled
payment of principal or interest occurs on the first day or the final day of an
accrual period. The amount of OID allocable to any accrual period other than the
final accrual period is an amount equal to the product of the senior
subordinated note&#146;s adjusted issue price at the beginning of such accrual period
and its yield to maturity (determined on the basis of compounding at the close
of each accrual period and properly adjusted for the length of the accrual
period). OID allocable to a final accrual period is the difference between the
amount payable at maturity and the adjusted issue price at the beginning of the
final accrual period. The &#147;yield to maturity&#148; of a senior subordinated note is
the discount rate that causes the present value of all payments on the senior
subordinated note as of its original issue date to equal the issue price of such
senior subordinated note. For purposes of determining the yield to maturity, the
assumption is that we will pay interest in cash and not exercise the option to
pay PIK Interest.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The &#147;adjusted
issue price&#148; of a senior subordinated note at the beginning of any accrual
period is equal to its issue price increased by the accrued OID for each prior
accrual period determined without regard to the amortization of any acquisition
or bond premium, as described below, and reduced by any cash payments previously
made on such senior subordinated note.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If we in fact
pay interest in cash on the senior subordinated notes, you will not be required
to adjust your OID inclusions. Each payment made in cash under a senior
subordinated note will be treated first as a payment of any accrued OID that has
not been allocated to prior payments and second as a payment of principal. You
generally will not be required to include separately in income cash payments
received on the senior subordinated notes to the extent such payments constitute
payments of previously accrued OID or payments of principal.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If, for any
interest payment period, we exercise our option to pay interest in the form of
PIK Interest (or half in cash and half in PIK Interest), your OID calculation
for future periods will be adjusted by treating the senior subordinated note as
if it had been retired and then reissued for an amount equal to its adjusted
issue price on the date preceding the first date of such interest payment
period, and recalculating the yield to maturity of the reissued senior
subordinated note by treating the amount of PIK Interest (and of any prior PIK
Interest) as a payment that will be made on the maturity date of such senior
subordinated note.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The rules
regarding OID are complex and the rules described above may not apply in all
cases. Accordingly, you should consult your own tax advisors regarding their
application.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>Market Discount</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If you
purchase a senior subordinated note for an amount that is less than its adjusted
issue price, the amount of the difference will be treated as market discount for
U.S. federal income tax purposes, unless that difference is less than a
specified de minimis amount. Under the market discount rules, you will be
required to treat any principal payment on, or any gain on the sale, exchange,
retirement or other disposition of, a senior subordinated note as ordinary
income to the extent of the market discount that you have not previously
included in income and are treated as having accrued on the senior subordinated
note at the time of the payment or disposition.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
you may be required to defer, until the maturity of the senior subordinated note
or its earlier disposition in a taxable transaction, the deduction of all or a
portion of the interest expense on any indebtedness attributable to the senior
subordinated note. You may elect, on a note-by-note basis, to deduct the
deferred interest expense in a tax year prior to the year of disposition. You
should consult your own tax advisors before making this election.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Any market
discount will be considered to accrue ratably during the period from the date of
acquisition to the maturity date of the senior subordinated note, unless you
elect to accrue on a constant interest method. You may elect to include market
discount in income currently as it accrues, on either a ratable or constant
interest method, in which case the rule described above regarding deferral of
interest deductions will not apply.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>152</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><I>Acquisition
Premium, Amortizable Bond Premium</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If you
purchase a senior subordinated note for an amount that is greater than its
adjusted issue price but equal to or less than the sum of all amounts payable on
the senior subordinated note after the purchase date, you will be considered to
have purchased that senior subordinated note at an &#147;acquisition premium.&#148; Under
the acquisition premium rules, the amount of OID that you must include in gross
income with respect to the senior subordinated note for any taxable year will be
reduced by the portion of the acquisition premium properly allocable to that
year.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If you
purchase a senior subordinated note for an amount in excess of the sum of all
amounts payable on the senior subordinated note after the purchase date, you
will be considered to have purchased the senior subordinated note at a premium
and you will not be required to include any OID in income. You generally may
elect to amortize the premium over the remaining term of the senior subordinated
note on a constant yield method as an offset to interest when includible in
income under your regular accounting method. If you have elected to amortize the
premium, the amortizable bond premium will reduce interest income. If you do not
elect to amortize bond premium, that premium will decrease the gain or increase
the loss you would otherwise recognize on disposition of the senior subordinated
note.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><I>Sale, Exchange, Retirement,
or Other Taxable Disposition of Senior Subordinated Notes</I></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Subject to
the discussion below regarding the Mandatory Principal Redemption, upon the
sale, exchange, retirement, or other taxable disposition of a senior
subordinated note (or a PIK Note), you generally will recognize gain or loss
equal to the difference between the amount realized upon the sale, exchange,
retirement, or other taxable disposition and the adjusted tax basis of the
senior subordinated note (or the PIK Note). Your adjusted tax basis in a senior
subordinated note will, in general, be your cost for the senior subordinated
note, increased by OID or market discount previously included in income, and
reduced by any amortized premium and cash payments on the senior subordinated
note. Although not free from doubt, your adjusted tax basis in a senior
subordinated note should be allocated between the original senior subordinated
note and any PIK Notes received in respect of PIK Interest thereon in proportion
to their relative principal amounts. Your holding period in any PIK Note
received in respect of PIK Interest would likely be identical to your holding
period for the original senior subordinated note with respect to which the PIK
Note was received.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Except as
described above with respect to market discount, any gain or loss you recognize
will be capital gain or loss and will be long-term capital gain or loss if at
the time of sale, exchange, retirement or other disposition, the senior
subordinated note has been held for more than one year. Capital gains of
noncorporate U.S. holders (including individuals) derived in respect of capital
assets held for more than one year are eligible for reduced rates of taxation.
The deductibility of capital losses is subject to limitations.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Payments
received by a U.S. holder upon any Mandatory Principal Redemption of a portion
of a senior subordinated note will be treated as tax free payments of a portion
of the then accrued OID with respect to such senior subordinated note in its
entirety (including the portion of the senior subordinated note not
redeemed).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Certain Tax Consequences to
Non-U.S. Holders</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The following
is a summary of certain U.S. federal income and estate tax consequences that
will apply to non-U.S. holders of the notes.</P>
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<P style="MARGIN: 0px" align=center>153</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><B><I>U.S.
Federal Withholding Tax</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The 30% U.S.
federal withholding tax will not apply to any payment of interest (which for
purposes of this discussion includes OID) on the notes under the &#147;portfolio
interest rule,&#148; provided that:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">interest
paid on the notes (including OID) is not effectively connected with your conduct
of a trade or business in the United States;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">you do not
actually (or constructively) own 10% or more of the total combined voting power
of all classes of our voting stock within the meaning of the Code and applicable
United States Treasury regulations;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">you are not
a controlled foreign corporation that is related to us actually or
constructively through stock ownership;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">you are not
a bank whose receipt of interest on the notes (including OID) is described in
Section&nbsp;881(c)(3)(A) of the Code; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">either
(a)&nbsp;you provide your name and address on an Internal Revenue Service
(&#147;IRS&#148;) Form&nbsp;W-8BEN (or other applicable form), and certify, under
penalties of perjury, that you are not a United States person as defined under
the Code or (b)&nbsp;you hold your notes through certain foreign intermediaries
and satisfy the certification requirements of applicable United States Treasury
regulations. Special certification rules apply to non-U.S. holders that are
pass-through entities rather than corporations or individuals.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If you cannot
satisfy the requirements described above, payments of interest (including OID)
made to you will be subject to the 30% U.S. federal withholding tax, unless you
provide us (or our paying agent) with a properly executed:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">IRS
Form&nbsp;W-8BEN (or other applicable form) certifying an exemption from or
reduction in withholding under the benefit of an applicable income tax treaty;
or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">IRS
Form&nbsp;W-8ECI (or other applicable form) certifying interest (including OID)
paid on the notes is not subject to withholding tax because it is effectively
connected with your conduct of a trade or business in the United States (as
discussed below under &#147;&#151;U.S. Federal Income Tax&#148;).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The 30% U.S.
federal withholding tax generally will not apply to any payment of principal or
gain that you realize on the sale, exchange, retirement or other disposition of
a note; provided, however, that payments received by a non-U.S. holder upon the
Mandatory Principal Redemption of a portion of a senior subordinated note will
be treated as payments of a portion of the then accrued OID with respect to such
senior subordinated note in its entirety (including the portion of the senior
subordinated note not redeemed) and therefore will possibly be subject to the
30% U.S. federal withholding tax.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B><I>U.S. Federal Income
Tax</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">If you are
engaged in a trade or business in the United States and interest (including OID)
on the notes is effectively connected with the conduct of that trade or business
(and, if required by an applicable income tax treaty, is attributable to a
United States permanent establishment), then you will be subject to U.S. federal
income tax on that interest (including OID) on a net income basis (although you
will be exempt from the 30% U.S. federal withholding tax, provided the
certification requirements discussed above in &#147;&#151;U.S. Federal Withholding Tax&#148;
are satisfied) in generally the same manner as if you were a United States
person as defined under the Code. In addition, if you are a foreign corporation,
you may be subject to a branch profits tax equal to 30% (or lower applicable
income tax treaty rate) of such interest (including OID), subject to
adjustments.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>154</P>
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<P style="MARGIN: 0px"><BR></P>
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<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">Any
gain realized on the disposition of a note generally will not be subject to U.S.
federal income tax unless:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">the gain is
effectively connected with your conduct of a trade or business in the United
States (and, if required by an applicable income tax treaty, is attributable to
a United States permanent establishment); or</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -24px">&#149;</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 13px">you are an
individual who is present in the United States for 183&nbsp;days or more in the
taxable year of that disposition, and certain other conditions are met.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B><I>U.S. Federal Estate
Tax</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Your estate
will not be subject to U.S. federal estate tax on notes beneficially owned by
you at the time of your death, provided that any payment to you on the notes
would be eligible for exemption from the 30% U.S. federal withholding tax under
the &#147;portfolio interest rule&#148; described above under &#147;&#151;U.S. Federal Withholding
Tax&#148; without regard to the statement requirement described in the fifth bullet
point of that section.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Information Reporting and
Backup Withholding</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B><I>U.S. Holders</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In general,
information reporting requirements will apply to certain payments of principal
and interest (including OID) paid on the notes and to the proceeds of the sale
or other disposition of a note paid to you (unless you are an exempt recipient
such as a corporation). Backup withholding may apply to such payments if you
fail to provide a taxpayer identification number or a certification that you are
not subject to backup withholding.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Backup
withholding is not an additional tax and any amounts withheld under the backup
withholding rules may be allowed as a refund or a credit against your U.S.
federal income tax liability provided the required information is timely
furnished to the IRS.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B><I>Non-U.S.
Holders</I></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Generally, we
must report to the IRS and to you the amount of interest (including OID) paid to
you and the amount of tax, if any, withheld with respect to those payments.
Copies of the information returns reporting such interest payments and any
withholding may also be made available to the tax authorities in the country in
which you reside under the provisions of an applicable income tax treaty.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In general,
you will not be subject to backup withholding with respect to payments of
interest (including OID) on the notes that we make to you provided that we do
not have actual knowledge or reason to know that you are a United States person
as defined under the Code, and we have received from you the required
certification that you are a non-U.S. holder described above in the fifth bullet
point under &#147;&#151;Certain Tax Consequences to Non-U.S. Holders&#151;U.S. Federal
Withholding Tax.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Information
reporting and, depending on the circumstances, backup withholding will apply to
the proceeds of a sale or other disposition (including a redemption) of notes
within the United States or conducted through certain United States-related
financial intermediaries, unless you certify to the payor under penalties of
perjury that you are a non-U.S. holder (and the payor does not have actual
knowledge or reason to know that you are a United States person as defined under
the Code), or you otherwise establish an exemption.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Backup
withholding is not an additional tax and any amounts withheld under the backup
withholding rules may be allowed as a refund or a credit against your U.S.
federal income tax liability provided the required information is timely
furnished to the IRS.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>155</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>CERTAIN ERISA CONSIDERATIONS</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The notes may
be purchased and held by an employee benefit plan subject to Title I of the
Employee Retirement Income Security Act of 1974, as amended (&#147;ERISA&#148;), or by an
individual retirement account or other plan subject to Section&nbsp;4975 of the
Internal Revenue Code of 1986, as amended (&#147;Code&#148;). A fiduciary of an employee
benefit plan subject to ERISA must, however, determine that the purchase and
holding of a note is consistent with its fiduciary duties under ERISA. The
fiduciary of an ERISA plan, as well as any other prospective investor subject to
Section&nbsp;4975 of the Code or any similar law, must also determine that the
purchase and holding of notes will not result in a non-exempt prohibited
transaction as defined in Section&nbsp;406 of ERISA or Section&nbsp;4975 of the
Code or a violation of any applicable similar law. Each purchaser and subsequent
transferee acquiring or holding a note or any interest therein with the assets
of a plan that is subject to Section&nbsp;406 of ERISA, Section&nbsp;4975 of the
Code or any similar law (&#147;Plan Investor&#148;) will be deemed to have represented to
us, by its acquisition or holding of the note or any interest therein, that its
acquisition and holding of the notes does not constitute or give rise to a
non-exempt prohibited transaction under Section&nbsp;406 of ERISA or
Section&nbsp;4975 of the Code, or a violation of any applicable similar law. The
sale of any notes to any Plan Investor is in no respect a representation by us
or any of our affiliates or representatives that such an investment meets all
relevant legal requirements with respect to investments by Plan Investors
generally or any particular Plan Investor, or that such an investment is
appropriate for Plan Investors generally or any particular Plan Investor.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>156</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>PLAN OF DISTRIBUTION</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">This
prospectus is to be used by Goldman, Sachs&nbsp;&amp;&nbsp;Co. and its
affiliates in connection with offers and sales of the notes in market-making
transactions effected from time to time.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Goldman,
Sachs&nbsp;&amp;&nbsp;Co. and its affiliates may act as principal or agent in
such transactions, including as agent for the counterparty when acting as
principal or as agent for both counterparties, and may receive compensation in
the form of discounts and commissions, including from both counterparties, when
it acts as agents for both. Such sales will be made at prevailing market prices
at the time of sale, at prices related thereto or at negotiated prices. We will
not receive any of the proceeds from such sales.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">As of
March&nbsp;17, 2009 entities affiliated with Goldman, Sachs&nbsp;&amp;&nbsp;Co.
indirectly held approximately 21.57% of our common stock. &nbsp;See the section
of our fiscal 2008 Form 10-K captioned &#147;&#147;Security Ownership of Certain
Beneficial Owners and Management and Related Stockholder Matters.&#148; Pursuant to
the operating agreement of Buck Holdings, LLC, certain of such entities have a
right to designate a specified number of individuals to serve on the Board of
Directors of Dollar General Corporation. See the section of our fiscal 2008
Form&nbsp;10-K captioned &#147;Directors, Executive Officers and Corporate
Governance&#151;Procedures for Shareholders to Nominate Directors; Arrangements to
Serve as Directors.&#148; Goldman, Sachs&nbsp;&amp;&nbsp;Co. and its respective
affiliates have and may in the future engage in commercial and/or investment
banking transactions with Dollar General and its affiliates. Goldman,
Sachs&nbsp;&amp;&nbsp;Co. acted as an initial purchaser in connection with the
original sale of the notes on July&nbsp;6, 2007 and received a customary
underwriting discount in connection with that transaction. Goldman,
Sachs&nbsp;&amp;&nbsp;Co. and its respective affiliates currently own, and may
from time to time trade, the notes for their own accounts in connection with
their principal activities. Such sales may be made pursuant to this prospectus
or otherwise pursuant to an applicable exemption from registration.
Additionally, in the future, Goldman, Sachs&nbsp;&amp;&nbsp;Co. and its
affiliates may, from time to time, own notes as a result of their market-making
activities. See the section of our fiscal 2008 Form 10-K captioned &#147;Certain
Relationships and Related Party Transactions, and Director Independence&#148; for a
discussion of certain of our transactions with Goldman, Sachs &amp; Co. and its
affiliates.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We have been
advised by Goldman, Sachs&nbsp;&amp;&nbsp;Co. that subject to applicable laws
and regulations it currently intends to make a market in the notes. However,
Goldman, Sachs&nbsp;&amp;&nbsp;Co. is not obligated to do so, and any such
market-making may be interrupted or discontinued at any time without notice. In
addition, such market-making activity will be subject to the limits imposed by
the Securities Act and the Exchange Act. We cannot assure you that an active
trading market will be sustained. See &#147;Risk Factors&#151;Risks Related to the
Notes&#151;Your ability to transfer the notes may be limited by the absence of an
active trading market, and there is no assurance that any active trading market
will develop for the notes.&#148;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
registration rights agreements entered into between us and Goldman,
Sachs&nbsp;&amp;&nbsp;Co., we have agreed to indemnify Goldman,
Sachs&nbsp;&amp;&nbsp;Co. against certain liabilities, including liabilities
under the Securities Act.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>157</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>LEGAL MATTERS</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The validity
of the notes and related guarantees offered hereby have been passed upon by
Simpson Thacher&nbsp;&amp; Bartlett LLP, New York, New York with respect to
validity under Delaware and California law and Baker, Donelson, Bearman,
Caldwell &amp; Berkowitz, P.C. with respect to validity under Tennessee and
Kentucky law.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><B>EXPERTS</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
consolidated financial statements of Dollar General Corporation appearing in
Dollar General Corporation&#146;s Annual Report (Form&nbsp;10-K) for the fiscal year
ended January 30, 2009 have been audited by Ernst&nbsp;&amp; Young&nbsp;LLP,
independent registered public accounting firm, as set forth in their report
thereon, included therein, and incorporated herein by reference. Such
consolidated financial statements are incorporated by reference herein in
reliance upon such report given on the authority of such firm as experts in
accounting and auditing.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><B>AVAILABLE
INFORMATION</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">We have filed
with the SEC a registration statement on Form&nbsp;S-1 under the Securities Act
with respect to the notes being offered hereby. This prospectus, which forms a
part of the registration statement, does not contain all of the information set
forth in the registration statement. For further information with respect to us
and the notes, refer to the registration statement. Statements contained in this
prospectus or in any document incorporated by reference into this prospectus as
to the contents of any contract or other document are not necessarily complete,
and each such statement is qualified by the provisions of the contract or other
document filed as an exhibit to the registration statement, as applicable. We
file reports and other information with the SEC. You may read and copy, at SEC
prescribed rates, the registration statement and these other reports and
information at the Public Reference Room of the SEC located at 100 F Street,
N.E., Washington D.C. 20549. You can call the SEC at 1-800-SEC-0330 to obtain
information on the operation of the Public Reference Room. Such materials may
also be accessed electronically by means of the SEC&#146;s home page on the Internet
(<I>http://www.sec.gov</I>).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The SEC
allows us to incorporate certain information into this prospectus by reference
to other documents that we file with them. This means that we can disclose
information to you for purposes of this prospectus by referring you to other
documents on file with the SEC. We incorporate into this document by reference
our Annual Report on Form&nbsp;10-K for the fiscal year ended January 30, 2009
that we filed with the SEC on March&nbsp;24, 2009 and our Current Reports on
Form&nbsp;8-K dated February 25, 2009, March 16, 2009, and March 24, 2009, as
filed with the SEC on February 25, 2009, March 20, 2009, and March 24, 2009,
respectively. We do not incorporate by reference the portions, if any, of such
Current Reports on Form 8-K that were furnished to (rather than filed with) the
SEC. The information incorporated by reference is an important part of this
prospectus.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Upon written
or oral request, we will provide at no cost to each person, including any
beneficial owner, to whom a prospectus is delivered, a copy of any or all of the
reports or documents that have been incorporated by reference in this prospectus
but not delivered with this prospectus. Please direct such requests to Investor
Relations, Dollar General Corporation, 100 Mission Ridge, Goodlettsville,
Tennessee 37072; (615)&nbsp;855-5528. You may also view and print these
documents on the &#147;Investor Information&#148; portion of our website located at
<I>www.dollargeneral.com</I>.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">So long as we
and our subsidiary guarantors are subject to the periodic reporting requirements
of the Exchange Act, we and our subsidiary guarantors are required to furnish
the information required to be filed with the SEC to the trustee and the current
holders of the notes, which obligation will be deemed satisfied upon the filing
of reports with the SEC via the EDGAR filing system or a successor system. We
and our subsidiary guarantors have agreed that, even if we and they are not
required under the Exchange Act to furnish that information to the SEC, we and
they will nonetheless furnish certain annual and quarterly financial
information, including a &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; and, with respect to the annual information
only, a report from our certified independent accountants and certain current
reports to the trustee and the holders of the notes.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>158</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><IMG height=156 alt=[forms1final003.jpg]
src="forms1final003.jpg" width=197 align=middle></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 20pt; MARGIN: 0px; LINE-HEIGHT: 22pt"
align=center><B>Dollar General Corporation</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 14pt; MARGIN: 0px; LINE-HEIGHT: 16pt"
align=center><B>10.625% Senior Notes due 2015</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 14pt; MARGIN-BOTTOM: 18px; LINE-HEIGHT: 16pt"
align=center><B>11.875%&nbsp;/&nbsp;12.625% Senior Subordinated Toggle Notes due
2017</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"
align=center>_______________________</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center>&nbsp;</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 14pt; MARGIN-BOTTOM: 18px; LINE-HEIGHT: 16pt"
align=center><B>PROSPECTUS</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 14pt; MARGIN-BOTTOM: 18px; LINE-HEIGHT: 16pt"
align=center><FONT style="FONT-SIZE: 8pt" >___________________________</FONT><BR></P>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 12px double"><BR></P>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>159</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px" align=center><B>PART
II</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><B>INFORMATION NOT
REQUIRED IN PROSPECTUS</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Item&nbsp;13. &nbsp;Other
Expenses of Issuance and Distribution.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
registration rights agreement relating to the securities of the registrants
being registered hereby provides that Dollar General Corporation will bear all
expenses in connection with the performance of its obligations relating to the
market-making activities of Goldman, Sachs&nbsp;&amp;&nbsp;Co. and its
respective affiliates. These expenses include printer expenses and legal and
accounting fees in an approximate estimated aggregate amount of $250,000
(including fees incurred in connection with the prior registration of the notes
and certain of the related guarantees on Form S-1 (file number 333-150096)).</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Item 14.
&nbsp;Indemnification of Directors and Officers.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>California Registrant</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Sun-Dollar,
L.P. is registered under the laws of California.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Section&nbsp;15904.06
(operative January&nbsp;1, 2008) of the 2008 California Revised Limited
Partnership Act addresses the rights of a general partner with respect to its
management and conduct of partnership activities. The 2008 California Revised
Limited Partnership Act provides that a limited partnership shall reimburse a
general partner for payments made, and indemnify a general partner for
liabilities incurred by the general partner, in the ordinary course of the
activities of the partnership or for the preservation of its activities or
property.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The limited
partnership agreement of Sun-Dollar, L.P. provides that the partnership shall
indemnify each partner (and the officers and directors of each partner) against
judgments, fines, amounts paid in settlement and expenses (including, without
limitation, attorneys&#146; fees) reasonably incurred by them in any civil, criminal
or administrative proceeding in which they are involved, or threatened to be
involved, by reason of being a partner in the partnership, provided that the
partner acted in good faith, within what such partner reasonably believed to be
the scope of such partner&#146;s authority, and for a purpose which such partner
reasonably believed to be in the best interests of the partnership or the
partners. To the extent that a partner has been successful on the merits or
otherwise in defense of any such proceeding or in defense of any claim or matter
therein, such partner shall be deemed to have acted in good faith and in a
manner such partner believed to be in the best interests of the partnership or
the partners. Under any other circumstances, the determination of whether a
partner acted in good faith, within what such partner reasonably believed to be
the scope of such partner&#146;s authority, and for a purpose which such partner
reasonably believed to be in the best interests of the partnership or the
partners shall be made by independent legal counsel selected by a general
partner (who may be the regular counsel for the partnership) in a written
opinion.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Delaware Registrants</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">South Boston
Holdings,&nbsp;Inc. is incorporated under the laws of Delaware.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Section&nbsp;145
of the Delaware General Corporation Law (the &#147;DGCL&#148;) grants each corporation
organized thereunder the power to indemnify any person who is or was a director,
officer, employee or agent of a corporation or enterprise, against expenses,
including attorneys&#146; fees, judgments, fines and amounts paid in settlement
actually and reasonably incurred by him in connection with any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, other than an action by or in the right of the
corporation, by reason of being or having been in any such capacity, if he acted
in good faith in a manner reasonably believed to be in, or not opposed to, the
best interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was unlawful.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Section&nbsp;102(b)(7)
of the DGCL enables a corporation in its certification of incorporation or an
amendment thereto to eliminate or limit the personal liability of a director to
the corporation or its stockholders for monetary damages for violations of the
directors&#146; fiduciary duty of care, except (i)&nbsp;for any breach of the
director&#146;s duty of loyalty to the corporation or its stockholders, (ii)&nbsp;for
acts or omissions not in good faith or that involve intentional </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>160</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">misconduct
or a knowing violation of law, (iii)&nbsp;pursuant to Section&nbsp;174 of the
DGCL (providing for liability of directors for unlawful payment of dividends or
unlawful stock purchases or redemptions) or (iv)&nbsp;for any transaction from
which a director derived an improper personal benefit.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The by-laws
of South Boston Holdings,&nbsp;Inc. provide that such corporation shall
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action, suit or proceeding (a
&#147;Proceeding&#148;), whether civil, criminal, administrative or investigative, by
reason of the fact that he or she is or was or has agreed to become a director
or officer of the corporation, or is or was serving or has agreed to serve at
the request of the corporation as a director or officer, of another corporation,
partnership, joint venture, trust or other enterprise, or by reason of any
action alleged to have been taken or omitted in such capacity, and may indemnify
any person who was or is a party or is threatened to be made a party to such an
action, suit or proceeding by reason of the fact that he or she is or was or has
agreed to become an employee or agent of the corporation, or is or was serving
or has agreed to serve at the request of the corporation as an employee or agent
of another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys&#146; fees), judgments, fines, and amounts paid
in settlement actually and reasonably incurred by him or her or on his or her
behalf in connection with such action, suit or proceeding and any appeal
therefrom, if he or she acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the best interests of the corporation, and,
with respect to any criminal action or proceeding had no reasonable cause to
believe his or her conduct was unlawful; except that in the case of an action or
suit by or in the right of the corporation to procure a judgment in its favor
(1)&nbsp;such indemnification shall be limited to expenses (including attorneys&#146;
fees) actually and reasonably incurred by such person in the defense or
settlement of such action or suit, and (2)&nbsp;no indemnification shall be made
in respect of any claim, issue or matter as to which such person shall have been
adjudged to be liable to the corporation unless and only to the extent that the
Delaware Court of Chancery or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but
in view of all the circumstances of the case, such person is fairly and
reasonably entitled to indemnity for such expenses which the Delaware Court of
Chancery or such other court shall deem proper. The corporation shall not be
obligated to indemnify a director or officer of the corporation in respect of a
Proceeding (or part thereof) instituted by such director or officer, unless such
Proceeding (or part thereof) has been authorized by the Board of Directors. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon a plea of <I>nolo contendere</I> or its equivalent, shall
not, of itself, create a presumption that the person did not act in good faith
and in a manner which he or she reasonably believed to be in or not opposed to
the best interests of the corporation, and, with respect to any criminal action
or proceeding, had reasonable cause to believe that his or her conduct was
unlawful.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">South Boston
FF&amp;E, LLC is a limited liability company organized under the laws of
Delaware.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Section&nbsp;18-108
of the Delaware Limited Liability Company Act empowers a Delaware limited
liability company to indemnify and hold harmless any member or manager of the
limited liability company from and against any and all claims and demands
whatsoever.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The operating
agreement of South Boston FF&amp;E, LLC (&#147;South Boston FF&amp;E&#148;) provides that
South Boston FF&amp;E shall indemnify the member and those authorized agents of
South Boston FF&amp;E identified in writing by the member as entitled to be
indemnified under the section for all costs, losses, liabilities and damages
paid or accrued by the member or any such agent in connection with the business
of South Boston FF&amp;E, to the fullest extent provided or allowed by the Act
and the other laws of the State of Delaware. In addition, South Boston FF&amp;E
may advance costs of defense of any proceeding to the member or any such agent
upon receipt by South Boston FF&amp;E of an undertaking by or on behalf of such
person to repay such amount if it shall ultimately be determined that such
person is not entitled to be indemnified by South Boston FF&amp;E.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Kentucky Registrants</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Dolgencorp of
New York,&nbsp;Inc. and Dolgencorp of Texas,&nbsp;Inc. are incorporated under
the laws of Kentucky.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Sections
271B.8-500 to 271B.8-580 of the Kentucky Business Corporation Act (the &#147;KBCA&#148;)
provide that, subject to restrictions contained in the statute, a corporation
may indemnify any person made or threatened to be </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>161</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">made
a party to any threatened, pending or completed action, suit or proceeding by
reason of the fact that he is or was a director, officer, employee or agent of
the corporation, or is or was serving at the request of the corporation as a
director, officer, partner, trustee, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise or employee benefit plan.
A person who has been successful on the merits or otherwise in any suit or
matter covered by the indemnification statute shall be indemnified against
expenses (including attorneys&#146; fees) reasonably incurred by him in connection
therewith. Indemnification is authorized upon a determination that the person to
be indemnified has met the applicable standard of conduct required. Such
determination shall be made by the board of directors by a majority vote of a
quorum consisting of directors who were not parties to such action, suit or
proceeding; or if such a quorum cannot be obtained, by a majority vote of a
committee of the board, duly designated to so act by a majority of the full
board, consisting solely of two or more directors who are not parties to the
action; or by special legal counsel selected by the board or a committee
thereof; or by the shareholders who are not parties to such action, suit or
proceeding. Expenses incurred in defense may be paid in advance upon receipt by
the corporation of a written affirmation by the director of his good faith
belief that he has met the applicable standard of conduct required, a written
undertaking by or on behalf of the director to repay such advance if it is
ultimately determined that he did not meet the standard of conduct, and a
determination that the facts then known to those making the determination would
not preclude indemnification under the statute. The indemnification provided by
statute shall not be deemed exclusive of any other rights to which those seeking
indemnification may be entitled under any bylaw, agreement, vote of shareholders
or disinterested directors, or otherwise, which shall inure to the benefit of
the heirs, executors and administrators of such a person. Insurance may be
purchased on behalf of any person entitled to indemnification by the corporation
against any liability incurred in an official capacity regardless of whether the
person could be indemnified under the statute. References to the corporation
include all constituent corporations absorbed in a consolidation or merger as
well as the resulting or surviving corporation and anyone seeking
indemnification by virtue of acting in some capacity with a constituent
corporation would stand in the same position as if he had served the resulting
or surviving corporation in the same capacity.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Section&nbsp;271B.2-020
of the KBCA allows a corporation in its articles of incorporation to set forth a
provision eliminating or limiting the personal liability of a director to the
corporation or its shareholders for monetary damages for breach of his duties as
a director, provided that such provision shall not eliminate or limit the
liability of a director: (i)&nbsp;for any transaction in which the director&#146;s
personal financial interest is in conflict with the financial interests of the
corporation or its shareholders; (ii)&nbsp;for acts or omissions not in good
faith or which involve intentional misconduct or are known to the director to be
a violation of law; (iii)&nbsp;for any vote or assent to an unlawful
distribution to shareholders as prohibited under Section&nbsp;271B.8-330 of the
KBCA; or (iv)&nbsp;for any transaction from which the director derived an
improper personal benefit.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The articles
of incorporation of Dolgencorp of New York,&nbsp;Inc. and Dolgencorp of
Texas,&nbsp;Inc. contain a provision that provides that no director of the
corporation shall be personally liable to the corporation or its shareholders
for monetary damages for breach of duty as a director, except to the extent
provided by the KBCA. The bylaws of Dolgencorp of New York,&nbsp;Inc. and
Dolgencorp of Texas,&nbsp;Inc. provide that, to the maximum extent permitted by
law but subject to the limitations set forth in the bylaws, the corporation
shall indemnify a director or officer who is a party to a proceeding by reason
of the fact that he or she is or was a director or officer against any liability
incurred in the proceeding, and the corporation may advance any reasonable
expenses incurred by such director or officer in connection with the proceeding
in advance of its disposition, but the corporation shall not be required to
indemnify or advance expenses to such director or officer incurred in a
proceeding initiated by or on behalf of such director or officer, other than a
suit to enforce indemnification rights. The indemnification provisions in the
bylaws are intended to be greater than those which are otherwise provided for in
the statutes, notwithstanding such director or officer&#146;s failure to meet the
standard of conduct required for permissive indemnification under the KBCA, are
contractual in nature between the director or officer and the corporation, and
are mandatory. The rights of such director or officer to indemnification and
advancement of expenses shall not be exclusive of other rights to which such
director or officer may be entitled under the statutes, articles of
incorporation, the bylaws, a resolution of shareholders or directors, or an
agreement providing for indemnification. The rights of such director or officer
to advancement of expenses are subject to such director or officer&#146;s furnishing
to the corporation: (a)&nbsp;a written affirmation, personally signed by or on
behalf of such director or officer, of his good faith belief that he was not
liable for (i)&nbsp;any transaction in which such director or officer&#146;s personal
financial interest is in conflict with the financial interest of the corporation
or its shareholders, (ii)&nbsp;any acts or omissions not in good faith or which
involve intentional misconduct or are known to such director or officer to be a
violation of law, (iii)&nbsp;any unlawful distributions under the statutes, or
(iv)&nbsp;any transaction from which such director or officer derived an
improper </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>162</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">personal
benefit; (b)&nbsp;a written opinion of counsel for such director or officer in
the proceeding to the effect that based on the facts known to counsel for such
director or officer, a successful defense, on the merits or otherwise, is either
probable or reasonably possible; and (c)&nbsp;a written undertaking, personally
signed by or on behalf of such director or officer, to repay any advances if a
judgment or other final adjudication adverse to such director or officer
establishes that he is liable, contrary to his affirmation. No indemnification
may be made in advance of a final disposition of such proceeding or if a
judgment or other final adjudication adverse to such director or officer
establishes his liability for: (i)&nbsp;any transaction in which the personal
financial interest of such officer or director is in conflict with the financial
interests of the corporation or its shareholders; (ii)&nbsp;any acts or
omissions not in good faith or which involve intentional misconduct or are known
to such director or officer to be a violation of law; (iii)&nbsp;any unlawful
distributions under the statutes; or (iv)&nbsp;any transaction from which such
director or officer derived an improper personal benefit. The indemnification
rights granted to such director or officer in the bylaws may not be limited in
any way by a subsequent amendment to or repeal of the indemnification provision
in the bylaws with respect to acts or omissions that occur prior to the adoption
of the amendment or repeal. The corporation may, but is not required to,
maintain insurance at its expense to protect itself and any such person against
any such liability, cost or expense.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Dollar
General Partners is formed under the laws of Kentucky.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Kentucky
partnership law provides that a partnership shall indemnify every partner in
respect of payments made and personal liabilities reasonably incurred by him in
the ordinary and proper conduct of its business, or for the preservation of its
business or property.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
partnership agreement of Dollar General Partners is silent regarding
indemnification. The charter and/or bylaws of the two partners of Dollar General
Partners, Dollar General Corporation and DG Promotions,&nbsp;Inc., both
Tennessee corporations, contain indemnification provisions that are described
below.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(c)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Dolgencorp,
LLC is a limited liability company organized under the laws of Kentucky. </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Section
275.180 of the Kentucky Limited Liability Company Act provides that&nbsp;a
limited liability company's operating agreement may provide for indemnification
of a member or manager for judgments, settlements, penalties, fines or expenses
incurred in a proceeding to which a person is a party because the person is or
was a member or manager.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The articles
of organization and the operating agreement of Dolgencorp, LLC are silent
regarding indemnification.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Tennessee Registrants</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(a)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Dollar
General Corporation, DG Promotions,&nbsp;Inc., DG Transportation,&nbsp;Inc.,
Dolgen I, Inc., Dolgen II, Inc., and Dolgen III, Inc. are incorporated under the
laws of Tennessee.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The Tennessee
Business Corporation Act (&#147;TBCA&#148;) allows a Tennessee corporation&#146;s charter to
contain a provision eliminating or limiting, with certain exceptions, the
personal liability of a director to the corporation or its shareholders for
monetary damages for breach of the director&#146;s fiduciary duty as a director.
Under the TBCA, a Tennessee business corporation may not eliminate or limit
director monetary liability for (i)&nbsp;breaches of the director&#146;s duty of
loyalty to the corporation or its shareholders; (ii)&nbsp;acts or omissions not
in good faith or involving intentional misconduct or a knowing violation of law;
or (iii)&nbsp;unlawful dividends, stock repurchases or redemptions. This
provision also may not limit a director&#146;s liability for violation of, or
otherwise relieve a corporation or its directors from the necessity of complying
with, federal or state securities laws, or affect the availability of
non-monetary remedies such as injunctive relief or rescission. The charters of
Dollar General Corporation and DG Promotions,&nbsp;Inc. contain a provision
stating that directors shall not be personally liable for monetary damage to the
corporation or its shareholders for breach of fiduciary duty as a director,
except to the extent required by the TBCA in effect from time to time.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>163</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">The
TBCA provides that a corporation may indemnify any of its directors, officers,
employees and agents against liability incurred in connection with a proceeding
if (a)&nbsp;such person acted in good faith; (b)&nbsp;in the case of conduct in
an official capacity with the corporation, he reasonably believed such conduct
was in the corporation&#146;s best interests; (c)&nbsp;in all other cases, he
reasonably believed that his conduct was at least not opposed to the best
interests of the corporation; and (d)&nbsp;in connection with any criminal
proceeding, such person had no reasonable cause to believe his conduct was
unlawful. In actions brought by or in the right of the corporation, however, the
TBCA provides that no indemnification may be made if the director or officer was
adjudged to be liable to the corporation. The TBCA also provides that in
connection with any proceeding charging improper personal benefit to an officer
or director, no indemnification may be made if such officer or director is
adjudged liable on the basis that such personal benefit was improperly received.
In cases where the director or officer is wholly successful, on the merits or
otherwise, in the defense of any proceeding instigated because of his or her
status as a director or officer of a corporation, the TBCA mandates that the
corporation indemnify the director or officer against reasonable expenses
incurred in the proceeding. The TBCA provides that a court of competent
jurisdiction, unless the corporation&#146;s charter provides otherwise, upon
application, may order that an officer or director be indemnified for reasonable
expenses if, in consideration of all relevant circumstances, the court
determines that such individual is fairly and reasonably entitled to
indemnification, notwithstanding the fact that (a)&nbsp;such officer or director
was adjudged liable to the corporation in a proceeding by or in the right of the
corporation; (b)&nbsp;such officer or director was adjudged liable on the basis
that personal benefit was improperly received by him; or (c)&nbsp;such officer
or director breached his duty of care to the corporation.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Dollar
General Corporation&#146;s charter and bylaws require us to indemnify our directors
and officers to the fullest extent permitted by applicable law. Dollar General
Corporation&#146;s bylaws further require us to advance expenses to each of our
directors and officers to the full extent allowed by Tennessee law. Under Dollar
General Corporation&#146;s charter and bylaws, such indemnification and advancement
of expenses provisions are not exclusive of any other right that a director or
officer may have or acquire both as to action in his or her official capacity
and as to action in another capacity.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The charter
and bylaws of DG Promotions,&nbsp;Inc. and the bylaws of DG
Transportation,&nbsp;Inc., Dolgen I, Inc., Dolgen II, Inc., and Dolgen III, Inc.
provide that the corporation shall indemnify and advance expenses to each
director and officer of the corporation, or any person who may have served at
the request of the corporation&#146;s board of directors or its President or Chief
Executive Officer as a director or officer of another corporation, and such
person&#146;s heirs, executors, and administrators, to the fullest extent permitted
by Tennessee law. The corporation may indemnify and advance expenses to any
employee or agent of the corporation who is not a director or officer, and such
person&#146;s heirs, executors, and administrators, to the same extent as to a
director or officer, if the board of directors determines it to be in the best
interests of the corporation to do so. In addition, such indemnification and
advancement of expenses provisions are not exclusive of any other right that a
director or officer may have or acquire both as to action in his or her official
capacity and as to action in another capacity. The corporation may maintain
insurance at its own expense to protect itself and any individual who is or was
a director, officer, employee or agent of the corporation, or who, while a
director, officer, employee or agent of the corporation, is or was serving at
the request of the board of directors or Chief Executive Officer as a director,
officer, partner, trustee, employee or agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise
against any expense, liability or loss, whether or not the corporation would
have the power to indemnify such person under the bylaws or the TBCA.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(b)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">DC Financial,
LLC, DG Logistics LLC, DG Retail, LLC, DG Strategic I, LLC, DG Strategic II,
LLC, DG Strategic III, LLC, and Retail Risk Solutions, LLC are limited liability
companies organized under the laws of Tennessee.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Section&nbsp;48-243-101
of the Tennessee Limited Liability Company Act provides that an LLC may
indemnify any person made or threatened to be made a party to any threatened,
pending or completed action, suit or proceeding by reason of the fact that he is
or was a governor of a board-managed LLC, a member of a member-managed LLC or an
individual who, while a governor of a board-managed LLC or member of a
member-managed LLC, is or was serving at the LLC&#146;s request as a governor,
manager, director, officer, partner, trustee, employee or agent of another LLC,
corporation, partnership, joint venture, trust or other enterprise or employee
benefit plan (a &#147;Responsible Person&#148;). Indemnification is authorized upon a
determination that the person to be indemnified has met the requisite standard
of conduct. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>164</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">upon
a plea of <I>nolo contendere</I> or its equivalent, is not, of itself,
determinative that the Responsible Person did not meet the standard of conduct
required. An LLC may not indemnify a Responsible Person: (i)&nbsp;in connection
with a proceeding by or in the right of the LLC in which the Responsible Person
was adjudged liable to the LLC; or (ii)&nbsp;in connection with any other
proceeding charging improper personal benefit to such Responsible Person,
whether or not involving action in such person&#146;s official capacity, in which
such person was adjudged liable on the basis that personal benefit was
improperly received by such person. A person who has been successful on the
merits or otherwise in any suit or matter covered by the indemnification statute
shall be indemnified against expenses (including attorneys&#146; fees) reasonably
incurred by him in connection therewith. Expenses incurred in defense may be
paid in advance upon receipt by the LLC of a written affirmation by the
Responsible Person of his good faith belief that he has met the requisite
standard of conduct, a written undertaking by or on behalf of such person to
repay such advance if it is ultimately determined that he did not meet the
standard of conduct, and a determination that the facts then known to those
making the determination would not preclude indemnification under the statute. A
court of competent jurisdiction, unless the LLC&#146;s articles provide otherwise,
upon application by the Responsible Person, may order that such person be
indemnified for reasonable expenses if, in consideration of all relevant
circumstances, the court determines that such person is fairly and reasonably
entitled to indemnification, whether or not such person met the requisite
standard of conduct, was adjudged liable in a proceeding by or in the right of
the LLC, or was adjudged liable on the basis that personal benefit was
improperly received by him. Such determination shall be made by the board of
governors in the case of a board-managed LLC or by the members of a
member-managed LLC by a majority vote of a quorum consisting of governors or
members who were not parties to such action, suit or proceeding; or if such a
quorum cannot be obtained, by a majority vote of a committee designated by the
board of governors in the case of a board-managed LLC or by the members of a
member-managed LLC, consisting solely of two or more governors or members, as
applicable, who are not parties to the action; or by independent special legal
counsel selected by the board of governors of a board-managed LLC or by the
members of a member-managed LLC; or by the members of a board-managed LLC who
are not parties to such action, suit or proceeding. Such indemnification and
advancement of expenses provisions are not exclusive of any other right that a
Responsible Person may have; provided that no indemnification may be made to or
on behalf of any Responsible Person if a judgment or other final adjudication
adverse to the Responsible Person establishes such person&#146;s liability:
(i)&nbsp;for any breach of the duty of loyalty to the LLC or its members;
(ii)&nbsp;for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law; or (iii)&nbsp;for wrongful
distributions under Section&nbsp;48-237-101 of the Tennessee Limited Liability
Company Act. The LLC may indemnify and advance expenses to a manager, employee,
independent contractor or agent of the LLC to the same extent as a Responsible
Person. The LLC may purchase insurance on behalf of any person entitled to
indemnification by the LLC against any liability incurred in an official
capacity regardless of whether the person could be indemnified under the
statute.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The operating
agreement of DG Logistics, LLC provides that the LLC shall fully indemnify the
Member (DG Transportation,&nbsp;Inc.) for any claim against the Member in the
Member&#146;s capacity as a member or as a manager. In addition, the LLC shall
advance litigation expenses to the Member for any claim against the Member in
the Member&#146;s capacity as a member or as a manager.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The operating
agreements of DC Financial, LLC, DG Retail, LLC, DG Strategic I, LLC, DG
Strategic II, LLC, DG Strategic III, LLC, and Retail Risk Solutions, LLC provide
that the LLC shall indemnify the Member (in each case except DG Retail, LLC,
such Member is Dollar General Corporation; DG Promotion, Inc. is the Member of
DG Retail, LLC), and the authorized agents of the LLC identified in writing by
the Member as entitled to be indemnified, for all costs, losses, liabilities and
damages paid or accrued by the Member or any such agent in connection with the
business of the LLC to the fullest extent provided or allowed under Tennessee
law. In addition, the LLC may advance costs of defense of any proceeding to the
Member or any such agent upon receipt by the LLC of an undertaking by such
person to repay such amount if it is ultimately determined that such person is
not entitled to be indemnified by the LLC.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Certain Other
Arrangements</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Dollar
General Corporation has in effect a directors&#146; and officers&#146; liability insurance
policy that covers the directors and officers of each of the registrants in
amounts that we believe are customary in our industry, including for liabilities
in connection with the registration, offering and sale of the notes. Under this
policy, the insurer agrees to pay, subject to certain exclusions, for any claim
made against directors or officers of the registrants for a wrongful </P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>165</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always">act
or omission by such persons, but only if and to the extent such persons become
legally obligated to pay such claim or incur certain costs in defending such
claim.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
in connection with entering into the monitoring agreement with KKR (or
affiliates thereof) and Goldman, Sachs&nbsp;&amp; Co., we also entered into a
separate indemnification agreement with the parties to the monitoring agreement,
pursuant to which we agreed to provide customary indemnification to such parties
and their affiliates. See the &#147;Certain Relationships and Related Transactions,
and Director Independence&#148; section of our fiscal 2008 Form&nbsp;10-K.
Furthermore, the Merger Agreement requires us to maintain indemnification of
directors and officers to the fullest extent permitted by law following
completion of the Merger.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
our Employment Agreement with Mr.&nbsp;Dreiling, effective as of
January&nbsp;11, 2008, we have agreed that if Mr.&nbsp;Dreiling is made or
threatened to be made a party to any action, suit or proceeding, whether civil,
criminal, administrative or investigative, relating to a claim by his prior
employer that Mr.&nbsp;Dreiling has breached or attempted to breach certain
covenants to which he is bound as a result of his employment arrangement with
his prior employer, we will indemnify and hold harmless Mr.&nbsp;Dreiling to the
fullest extent authorized by applicable law from and against any and all
liabilities, amounts paid in settlement, costs, claims and expenses, including
all costs and expenses incurred in defense of any such proceeding (including
attorneys&#146; fees). We will pay costs and expenses Mr.&nbsp;Dreiling incurs in
defense of any such proceeding (including attorneys&#146; fees) in advance of the
final disposition of such litigation upon our receipt of (a)&nbsp;a written
request for payment, (b)&nbsp;appropriate documentation evidencing the
incurrence, amount and nature of the costs and expenses for which payment is
being sought, and (c)&nbsp;an undertaking adequate under applicable law made by
or on behalf of Mr.&nbsp;Dreiling to repay the amounts so paid if it shall
ultimately be determined that he is not entitled to be indemnified by us under
his Employment Agreement with us. Notwithstanding the foregoing, if as a result
of such proceeding Mr.&nbsp;Dreiling is prohibited from continuing his
employment with us, we shall pay to Mr.&nbsp;Dreiling his base salary until the
earliest to occur of (i)&nbsp;the date upon which he ceases to be so prohibited,
(ii)&nbsp;the date, if any, upon which he becomes employed by a subsequent
employer and (iii)&nbsp;the first anniversary of the effective date of such
prohibition.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In addition,
we shall indemnify and hold harmless Mr.&nbsp;Dreiling for all acts and
omissions occurring during his employment or service as a member of the Board
(or both) to the maximum extent provided under our charter, by-laws and
applicable law. During the Term (as defined in the Employment Agreement) and for
a term of six years thereafter, we, or any of our successors shall purchase and
maintain, at its own expense, directors and officers liability insurance
providing coverage for Mr.&nbsp;Dreiling in the same amount as for Board
members.</P>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Mr.&nbsp;Dreiling
shall provide his reasonable cooperation in connection with any proceeding (or
any appeal from any proceeding) referenced above, as well as any proceeding
which relates to events occurring during his employment.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Insofar as
indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to our directors, officers or controlling persons pursuant to the
foregoing provisions, we have been informed that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy
as expressed in the Act and is therefore unenforceable.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Item&nbsp;15. Recent Sales of
Unregistered Securities.</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In connection
with the Merger, our officer-level employees were offered the opportunity to
roll over portions of their equity and/or stock options and to purchase
additional equity of Dollar General. In connection with such opportunity, on
July&nbsp;6, 2007 these individuals purchased a total of 635,207 shares of
common stock having an aggregate value of approximately $3,176,035 and exchanged
a total of 2,225,175 stock options outstanding prior to the Merger for 1,920,543
vested options to purchase shares of common stock (the &#147;Rollover Options&#148;) in
the surviving company (the &#147;Rollover&#148;). The Rollover Options remain outstanding
in accordance with the terms of the governing stock incentive plan and grant
agreements pursuant to which the holder originally received the stock option
grants. However, immediately after the Merger, the exercise price and number of
shares underlying the Rollover Options were adjusted as a result of the Merger
and the exercise price for all of the options was adjusted to $1.25 per
option.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>166</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">We
subsequently offered certain other employees a similar investment opportunity to
participate in our common equity. As a result, on September&nbsp;20, 2007 and
October&nbsp;5, 2007, we sold 15,000 shares and 558,800 shares, respectively, of
our common stock to those employees for a purchase price of $5 per share.
&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In connection
with the investment discussed above and the Merger, our Board of Directors
adopted a new stock incentive plan pursuant to which certain of our
officer-level and other employees also were granted, on July&nbsp;6, 2007,
September&nbsp;20, 2007 and October&nbsp;5, 2007, respectively, new
non-qualified stock options to purchase 13,110,000 shares, 130,000 shares and
4,150,000 shares of our common stock at a per share exercise price of $5, which
represented the fair market value of one share of our common stock on the grant
date. Effective January&nbsp;21, 2008, our Board also granted to our CEO,
Mr.&nbsp;Dreiling, non-qualified stock options to purchase 2.5&nbsp;million
shares of our common stock pursuant to the terms of the new stock incentive
plan. All of these new options expire no later than 10&nbsp;years following the
grant date. In addition, half of the options will vest ratably on each of the
five anniversaries of July&nbsp;6, 2007 solely based upon continued employment
over that time period, while the other half of the options will vest based both
upon continued employment and upon the achievement of predetermined performance
annual or cumulative financial-based targets over time which coincide with our
fiscal year. The options also have certain accelerated vesting provisions upon a
change in control or initial public offering, as defined in the new incentive
plan.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Effective
January&nbsp;21, 2008, our Board also granted to Mr.&nbsp;Dreiling 890,000
shares of restricted common stock pursuant to the terms of the new stock
incentive plan. The restricted stock will vest on the last day of our 2011
fiscal year if Mr.&nbsp;Dreiling remains employed by us through that date. The
restricted stock also has certain accelerated vesting provisions upon a change
in control, initial public offering, termination without cause or due to death
or disability, or resignation for good reason, all as defined in
Mr.&nbsp;Dreiling&#146;s employment agreement.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The share
issuances, the Rollover Options and the new option and restricted stock grants
described above were effected without registration in reliance on (1)&nbsp;the
exemptions afforded by Section&nbsp;4(2) of the Securities Act of 1933, as
amended (the &#147;Securities Act&#148;), because the sales did not involve any public
offering, (2)&nbsp;Rule&nbsp;701 promulgated under the Securities Act for shares
that were sold under a written compensatory benefit plan or contract for the
participation of our employees, directors, officers, consultants and advisors,
and (3)&nbsp;Regulation&nbsp;S promulgated under the Securities Act relating to
offerings of securities outside of the United States.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">In connection
with the Merger, we issued the notes, which were effected without registration
in reliance on (1)&nbsp;the exemptions afforded by Rule&nbsp;144A promulgated
under the Securities Act, for private resales of securities to qualified
institutional buyers and (2)&nbsp;Regulation&nbsp;S promulgated under the
Securities Act relating to offerings of securities outside of the United
States.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><B>Item 16. &nbsp;Exhibits and
Financial Statement Schedules.</B></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=bottom width=85>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"><B>Exhibit
No.</B></P></TD>
<TD vAlign=bottom width=548>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"><B>Description</B></P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">2</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Agreement and Plan of Merger, dated as of
March&nbsp;11, 2007, by and among Buck Holdings,&nbsp;L.P., Buck
Acquisition Corp., and Dollar General Corporation (incorporated by
reference to Exhibit&nbsp;2.1 to Dollar General Corporation&#146;s Current
Report on Form&nbsp;8-K dated March&nbsp;11, 2007, filed with the SEC on
March&nbsp;12, 2007 (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.1</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amended and Restated Charter of Dollar General
Corporation (incorporated by reference to Exhibit&nbsp;3.1 to Dollar
General Corporation&#146;s Current Report on Form&nbsp;8-K dated July&nbsp;6,
2007, filed with the SEC on July&nbsp;12, 2007 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.2</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amended and Restated Bylaws of Dollar General
Corporation (adopted on September&nbsp;20, 2007) (incorporated by
reference to Exhibit&nbsp;3.2 to Dollar General Corporation&#146;s Registration
Statement on Form&nbsp;S-4 filed with the SEC on December&nbsp;21, 2007
(file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.3</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Organization of DC Financial,&nbsp;LLC
(incorporated by reference to Exhibit&nbsp;3.3 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.4</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Operating Agreement of DC Financial,&nbsp;LLC
(incorporated by reference to Exhibit&nbsp;3.4 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>167</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.5</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Organization of DG Logistics,&nbsp;LLC
(incorporated by reference to Exhibit&nbsp;3.5 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.6</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Operating Agreement of DG Logistics,&nbsp;LLC
(incorporated by reference to Exhibit&nbsp;3.6 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.7</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amended Charter of DG Promotions,&nbsp;Inc.
(incorporated by reference to Exhibit&nbsp;3.7 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.8</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Bylaws of DG Promotions,&nbsp;Inc. (incorporated by
reference to Exhibit&nbsp;3.8 to Dollar General Corporation&#146;s Registration
Statement on Form&nbsp;S-4 filed with the SEC on December&nbsp;21, 2007
(file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.9</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Organization of DG Retail,&nbsp;LLC
(incorporated by reference to Exhibit&nbsp;3.9 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.10</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Operating Agreement of DG Retail,&nbsp;LLC
(incorporated by reference to Exhibit&nbsp;3.10 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.11</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Charter of DG Transportation,&nbsp;Inc.
(incorporated by reference to Exhibit&nbsp;3.11 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.12</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Bylaws of DG Transportation,&nbsp;Inc.
(incorporated by reference to Exhibit&nbsp;3.12 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.13</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Incorporation of Dolgencorp of New
York,&nbsp;Inc. (incorporated by reference to Exhibit&nbsp;3.17 to Dollar
General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with
the SEC on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.14</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Bylaws of Dolgencorp of New York,&nbsp;Inc.
(incorporated by reference to Exhibit&nbsp;3.18 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.15</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Incorporation of Dolgencorp of
Texas,&nbsp;Inc. (incorporated by reference to Exhibit&nbsp;3.19 to Dollar
General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with
the SEC on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.16</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Bylaws of Dolgencorp of Texas,&nbsp;Inc.
(incorporated by reference to Exhibit&nbsp;3.20 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.17*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Organization of
Dolgencorp,&nbsp;LLC</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.18*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Operating Statement of
Dolgencorp,&nbsp;LLC</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.19</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amended Certificate of Assumed Name of Dollar
General Partners (incorporated by reference to Exhibit&nbsp;3.27 to Dollar
General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with
the SEC on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.20</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amended Partnership Agreement of Dollar General
Partners (incorporated by reference to Exhibit&nbsp;3.28 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.21</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Certificate of Formation of South Boston
FF&amp;E,&nbsp;LLC (incorporated by reference to Exhibit&nbsp;3.29 to
Dollar General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed
with the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.22</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Operating Agreement of South Boston
FF&amp;E,&nbsp;LLC (incorporated by reference to Exhibit&nbsp;3.30 to
Dollar General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed
with the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.23</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Certificate of Incorporation of South Boston
Holdings,&nbsp;Inc. (incorporated by reference to Exhibit&nbsp;3.31 to
Dollar General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed
with the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>168</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.24</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Bylaws of South Boston Holdings,&nbsp;Inc.
(incorporated by reference to Exhibit&nbsp;3.32 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.25</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amended Certificate of Limited Partnership of
Sun-Dollar,&nbsp;L.P. (incorporated by reference to Exhibit&nbsp;3.33 to
Dollar General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed
with the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.26</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amended Agreement of Limited Partnership of
Sun-Dollar,&nbsp;L.P. (incorporated by reference to Exhibit&nbsp;3.34 to
Dollar General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed
with the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.27</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Organization of Retail Risk
Solutions,&nbsp;LLC (incorporated by reference to Exhibit&nbsp;3.35 to
Dollar General Corporation&#146;s Amendment No.1 to Registration Statement on
Form&nbsp;S-4 filed with the SEC on January&nbsp;25, 2008 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.28</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Operating Agreement of Retail Risk
Solutions,&nbsp;LLC (incorporated by reference to Exhibit&nbsp;3.36 to
Dollar General Corporation&#146;s Amendment No.1 to Registration Statement on
Form&nbsp;S-4 filed with the SEC on January&nbsp;25, 2008 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.29*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Charter of Dolgen I, Inc.</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.30*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Bylaws of Dolgen I, Inc.</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.31*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Charter of Dolgen II, Inc.</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.32*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Bylaws of Dolgen II, Inc.</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.33*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Charter of Dolgen III, Inc.</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.34*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Bylaws of Dolgen III, Inc.</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.35*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Organization of DG Strategic I,
LLC</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.36*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Operating Agreement of DG Strategic I,
LLC</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.37*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Organization of DG Strategic II,
LLC</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.38*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Operating Agreement of DG Strategic II,
LLC</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.39*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Articles of Organization of DG Strategic III,
LLC</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">3.40*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Operating Agreement of DG Strategic III,
LLC</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.1</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Sections&nbsp;7 and 8 of Dollar General
Corporation&#146;s Amended and Restated Charter (included in
Exhibit&nbsp;3.1)</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.2</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Indenture, dated as of June&nbsp;21, 2000, by and
among Dollar General Corporation, the guarantors named therein, as
guarantors, and Wachovia Bank, National Association (formerly known as
First Union National Bank), as trustee (incorporated by reference to
Exhibit&nbsp;4.1 to Dollar General Corporation&#146;s Registration Statement on
Form&nbsp;S-4 filed with the SEC on August&nbsp;1, 2000 (file
number&nbsp;333-42704))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.3</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">First Supplemental Indenture, dated as of
July&nbsp;28, 2000, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit&nbsp;4.4 to Dollar General
Corporation&#146;s Annual Report on Form&nbsp;10-K for the fiscal year ended
January&nbsp;31, 2003, filed with the SEC on March&nbsp;19, 2003 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.4</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Second Supplemental Indenture, dated as of
June&nbsp;18, 2001, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit&nbsp;4.5 to Dollar General
Corporation&#146;s Annual Report on Form&nbsp;10-K for the fiscal year ended
January&nbsp;31, 2003, filed with the SEC on March&nbsp;19, 2003 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.5</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Third Supplemental Indenture, dated as of
June&nbsp;20, 2002, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit&nbsp;4.6 to Dollar General
Corporation&#146;s Annual Report on Form&nbsp;10-K for the fiscal year ended
January&nbsp;31, 2003, filed with the SEC on March&nbsp;19, 2003 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.6</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Fourth Supplemental Indenture, dated as of
December&nbsp;11, 2002, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit&nbsp;4.7 to Dollar General
Corporation&#146;s Annual Report on Form&nbsp;10-K for the fiscal year ended
January&nbsp;31, 2003, filed with the SEC on March&nbsp;19, 2003 (file
number&nbsp;001-11421))</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>169</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.7</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Fifth Supplemental Indenture, dated as of
May&nbsp;23, 2003, by and among Dollar General Corporation, the guarantors
named therein, as guarantors, and Wachovia Bank, National Association
(formerly known as First Union National Bank), as trustee (incorporated by
reference to Exhibit&nbsp;4.1 to Dollar General Corporation&#146;s Quarterly
Report on Form&nbsp;10-Q for the quarter ended August&nbsp;1, 2003, filed
with the SEC on August&nbsp;29, 2003 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.8</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Sixth Supplemental Indenture, dated as of
July&nbsp;15, 2003, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit&nbsp;4.2 to Dollar General
Corporation&#146;s Quarterly Report on Form&nbsp;10-Q for the quarter ended
August&nbsp;1, 2003, filed with the SEC on August&nbsp;29, 2003 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.9</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Seventh Supplemental Indenture, dated as of
May&nbsp;23, 2005, by and among Dollar General Corporation, the guarantors
named therein, as guarantors, and Wachovia Bank, National Association
(formerly known as First Union National Bank), as trustee (incorporated by
reference to Exhibit&nbsp;4.1 to Dollar General Corporation&#146;s Quarterly
Report on Form&nbsp;10-Q for the quarter ended July&nbsp;29, 2005, filed
with the SEC on August&nbsp;25, 2005 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.10</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Eighth Supplemental Indenture, dated as of
July&nbsp;27, 2005, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit&nbsp;4.2 to Dollar General
Corporation&#146;s Quarterly Report on Form&nbsp;10-Q for the quarter ended
July&nbsp;29, 2005, filed with the SEC on August&nbsp;25, 2005 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.11</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Ninth Supplemental Indenture, dated as of
August&nbsp;30, 2006, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and U.S. Bank National
Association (successor to Wachovia Bank, National Association), as trustee
(incorporated by reference to Exhibit&nbsp;4.2 to Dollar General
Corporation&#146;s Quarterly Report on Form&nbsp;10-Q for the quarter ended
November&nbsp;3, 2006, filed with the SEC on December&nbsp;12, 2006 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.12</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Tenth Supplemental Indenture, dated as of
July&nbsp;6, 2007, by and among Dollar General Corporation, the guarantors
named therein, as guarantors, and U.S. Bank National Association
(successor to Wachovia Bank, National Association), as trustee
(incorporated by reference to Exhibit&nbsp;4.1 to Dollar General
Corporation&#146;s Current Report on Form&nbsp;8-K dated July&nbsp;6, 2007,
filed with the SEC on July&nbsp;12, 2007 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.13</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Senior Indenture, dated July&nbsp;6, 2007, among
Buck Acquisition Corp., Dollar General Corporation, the guarantors named
therein and U.S. Bank National Association (the successor trustee), as
trustee (incorporated by reference to Exhibit&nbsp;4.8 to Dollar General
Corporation&#146;s Current Report on Form&nbsp;8-K dated July&nbsp;6, 2007,
filed with the SEC on July&nbsp;12, 2007 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.14</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Form of 10.625% Senior Notes due 2015 (included in
Exhibit&nbsp;4.13)</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.15</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">First Supplemental Indenture to the Senior
Indenture, dated as of September&nbsp;25, 2007, between DC
Financial,&nbsp;LLC, the Guaranteeing Subsidiary, and U.S. Bank National
Association (the successor trustee), as trustee (incorporated by reference
to Exhibit&nbsp;4.14 to Dollar General Corporation&#146;s Registration
Statement on Form&nbsp;S-4 filed with the SEC on December&nbsp;21, 2007
(file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.16</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Second Supplemental Indenture to the Senior
Indenture, dated as of December&nbsp;31, 2007, between Retail Risk
Solutions,&nbsp;LLC, the Guaranteeing Subsidiary, and U.S. Bank National
Association (the successor trustee), as trustee (incorporated by reference
to Exhibit&nbsp;4.32 to Dollar General Corporation&#146;s Amendment No.1 to
Registration Statement on Form&nbsp;S-4 filed with the SEC on
January&nbsp;25, 2008 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.17*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Third Supplemental Indenture to the Senior
Indenture, dated as of March 23, 2009, between the Guaranteeing
Subsidiaries referenced therein and U.S. Bank National Association, as
trustee</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.18</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Instrument of Resignation, Appointment and
Acceptance, effective as of February 25, 2009, by and among Dollar General
Corporation, Wells Fargo Bank, National Association, and U.S. Bank
National Association (incorporated by reference to Exhibit 99 to Dollar
General Corporation&#146;s Current Report on Form 8-K dated February 25, 2009,
filed with the SEC on February 25, 2009 (file number
001-11421))</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>170</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.19</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Senior Subordinated Indenture, dated July&nbsp;6,
2007, among Buck Acquisition Corp., Dollar General Corporation, the
guarantors named therein and U.S. Bank National Association (the successor
trustee), as trustee (incorporated by reference to Exhibit&nbsp;4.9 to
Dollar General Corporation&#146;s Current Report on Form&nbsp;8-K dated
July&nbsp;6, 2007, filed with the SEC on July&nbsp;12, 2007 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.20</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Form of 11.875%/12.625% Senior Subordinated Toggle
Notes due 2017 (included in Exhibit&nbsp;4.19)</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.21</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">First Supplemental Indenture to the Senior
Subordinated Indenture, dated as of September&nbsp;25, 2007, between DC
Financial,&nbsp;LLC, the Guaranteeing Subsidiary, and U.S. Bank National
Association (the successor trustee), as trustee (incorporated by reference
to Exhibit&nbsp;4.16 to Dollar General Corporation&#146;s Registration
Statement on Form&nbsp;S-4 filed with the SEC on December&nbsp;21, 2007
(file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.22</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Second Supplemental Indenture to the Senior
Subordinated Indenture, dated as of December&nbsp;31, 2007, between Retail
Risk Solutions,&nbsp;LLC, the Guaranteeing Subsidiary, and U.S. Bank
National Association (the successor trustee), as trustee (incorporated by
reference to Exhibit&nbsp;4.33 to Dollar General Corporation&#146;s Amendment
No.1 to Registration Statement on Form&nbsp;S-4 filed with the SEC on
January&nbsp;25, 2008 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.23*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Third Supplemental Indenture to the Senior
Subordinated Indenture, dated as of March 23, 2009, between the
Guaranteeing Subsidiaries referenced therein and U.S. Bank National
Association, as trustee</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.24</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Registration Rights Agreement, dated July&nbsp;6,
2007, among Buck Acquisition Corp., Dollar General Corporation, the
guarantors named therein and the initial purchasers named therein
(incorporated by reference to Exhibit&nbsp;4.10 to Dollar General
Corporation&#146;s Current Report on Form&nbsp;8-K dated July&nbsp;6, 2007,
filed with the SEC on July&nbsp;12, 2007 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.25</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Registration Rights Agreement, dated July&nbsp;6,
2007, among Buck Holdings,&nbsp;L.P., Buck Holdings,&nbsp;LLC, Dollar
General Corporation and Shareholders named therein (incorporated by
reference to Exhibit&nbsp;4.18 to Dollar General Corporation&#146;s
Registration Statement on Form&nbsp;S-4 filed with the SEC on
December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.26</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Credit Agreement, dated as of July&nbsp;6, 2007,
among Dollar General Corporation, as Borrower, Citicorp North
America,&nbsp;Inc., as Administrative Agent, and the other lending
institutions from time to time party thereto (incorporated by reference to
Exhibit&nbsp;4.2 to Dollar General Corporation&#146;s Current Report on
Form&nbsp;8-K dated July&nbsp;6, 2007, filed with the SEC on July&nbsp;12,
2007 (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.27</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Guarantee to the Credit Agreement, dated as of
July&nbsp;6, 2007, among certain domestic subsidiaries of Dollar General
Corporation, as Guarantors and Citicorp North America,&nbsp;Inc., as
Collateral Agent (incorporated by reference to Exhibit&nbsp;4.3 to Dollar
General Corporation&#146;s Current Report on Form&nbsp;8-K dated July&nbsp;6,
2007, filed with the SEC on July&nbsp;12, 2007 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.28</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No.1, dated as of September&nbsp;11,
2007, to the Guarantee to the Credit Agreement, between DC
Financial,&nbsp;LLC, as New Guarantor, and Citicorp North
America,&nbsp;Inc., as Collateral Agent (incorporated by reference to
Exhibit&nbsp;4.23 to Dollar General Corporation&#146;s Registration Statement
on Form&nbsp;S-4 filed with the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.29</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No.&nbsp;2, dated as of
December&nbsp;31, 2007, to the Guarantee to the Credit Agreement, between
Retail Risk Solutions,&nbsp;LLC, as New Guarantor, and Citicorp North
America,&nbsp;Inc., as Collateral Agent (incorporated by reference to
Exhibit&nbsp;4.34 to Dollar General Corporation&#146;s Amendment No.1 to
Registration Statement on Form&nbsp;S-4 filed with the SEC on
January&nbsp;25, 2008 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.30*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No. 3, dated as of March 23, 2009, to
the Guarantee to the Credit Agreement, between the New Guarantors
referenced therein and Citicorp North America, Inc., as Collateral
Agent</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.31</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Security Agreement, dated as of July&nbsp;6, 2007,
among Dollar General Corporation and certain domestic subsidiaries of
Dollar General Corporation, as Grantors, and Citicorp North
America,&nbsp;Inc., as Collateral Agent (incorporated by reference to
Exhibit&nbsp;4.4 to Dollar General Corporation&#146;s Current Report on
Form&nbsp;8-K dated July&nbsp;6, 2007, filed with the SEC on July&nbsp;12,
2007 (file number&nbsp;001-11421))</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>171</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.32</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No.1, dated as of September&nbsp;11,
2007, to the Security Agreement, between DC Financial,&nbsp;LLC, as New
Grantor, and Citicorp North America,&nbsp;Inc., as Collateral Agent
(incorporated by reference to Exhibit&nbsp;4.25 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.33</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No.&nbsp;2, dated as of
December&nbsp;31, 2007, to the Security Agreement, between Retail Risk
Solutions,&nbsp;LLC, as New Grantor, and Citicorp North
America,&nbsp;Inc., as Collateral Agent (incorporated by reference to
Exhibit&nbsp;4.35 to Dollar General Corporation&#146;s Amendment No.1 to
Registration Statement on Form&nbsp;S-4 filed with the SEC on
January&nbsp;25, 2008 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.34*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No. 3, dated as of March 23, 2009, to
the Security Agreement, between the New Grantors referenced therein and
Citicorp North America, Inc., as Collateral Agent</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.35</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Pledge Agreement, dated as of July&nbsp;6, 2007,
among Dollar General Corporation and certain domestic subsidiaries of
Dollar General Corporation, as Pledgors, and Citicorp North
America,&nbsp;Inc., as Collateral Agent (incorporated by reference to
Exhibit&nbsp;4.5 to Dollar General Corporation&#146;s Current Report on
Form&nbsp;8-K dated July&nbsp;6, 2007, filed with the SEC on July&nbsp;12,
2007 (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.36</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No.1, dated as of September&nbsp;11,
2007, to the Pledge Agreement, between DC Financial,&nbsp;LLC, as
Additional Pledgor, and Citicorp North America,&nbsp;Inc., as Collateral
Agent (incorporated by reference to Exhibit&nbsp;4.27 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.37</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No.&nbsp;2, dated as of
December&nbsp;31, 2007, to the Pledge Agreement, between Retail Risk
Solutions,&nbsp;LLC, as Additional Pledgor, and Citicorp North
America,&nbsp;Inc., as Collateral Agent (incorporated by reference to
Exhibit&nbsp;4.36 to Dollar General Corporation&#146;s Amendment No.1 to
Registration Statement on Form&nbsp;S-4 filed with the SEC on
January&nbsp;25, 2008 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.38*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No. 3, dated as of March 23, 2009, to
the Pledge Agreement, between the Additional Pledgors referenced therein
and Citicorp North America, Inc., as Collateral Agent</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.39</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">ABL Credit Agreement, dated as of July&nbsp;6,
2007, among Dollar General Corporation, as Parent Borrower, certain
domestic subsidiaries of Dollar General Corporation, as Subsidiary
Borrowers, The CIT Group/Business Credit&nbsp;Inc., as ABL Administrative
Agent, and the other lending institutions from time to time party thereto
(incorporated by reference to Exhibit&nbsp;4.6 to Dollar General
Corporation&#146;s Current Report on Form&nbsp;8-K dated July&nbsp;6, 2007,
filed with the SEC on July&nbsp;12, 2007 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.40</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Guarantee, dated as of September&nbsp;11, 2007, to
the ABL Credit Agreement, between DC Financial,&nbsp;LLC and The CIT
Group/Business Credit&nbsp;Inc., as ABL Collateral Agent (incorporated by
reference to Exhibit&nbsp;4.29 to Dollar General Corporation&#146;s
Registration Statement on Form&nbsp;S-4 filed with the SEC on
December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.41</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No.&nbsp;1, dated as of
December&nbsp;31, 2007, to the Guarantee to the ABL Credit Agreement,
between Retail Risk Solutions,&nbsp;LLC, as New Guarantor, and The CIT
Group/Business Credit&nbsp;Inc., as ABL Collateral Agent (incorporated by
reference to Exhibit&nbsp;4.37 to Dollar General Corporation&#146;s Amendment
No.1 to Registration Statement on Form&nbsp;S-4 filed with the SEC on
January&nbsp;25, 2008 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.42*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No. 2, dated as of March 23, 2009, to
the Guarantee to the ABL Credit Agreement, between the New Guarantors
referenced therein and The CIT Group/Business Credit Inc., as ABL
Collateral Agent</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.43</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">ABL Security Agreement, dated as of July&nbsp;6,
2007, among Dollar General Corporation, as Parent Borrower, certain
domestic subsidiaries of Dollar General Corporation, as Subsidiary
Borrowers, collectively the Grantors, and The CIT Group/Business
Credit&nbsp;Inc., as ABL Collateral Agent (incorporated by reference to
Exhibit&nbsp;4.7 to Dollar General Corporation&#146;s Current Report on
Form&nbsp;8-K dated July&nbsp;6, 2007, filed with the SEC on July&nbsp;12,
2007 (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.44</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No.1, dated as of September&nbsp;11,
2007, to the ABL Security Agreement, between DC Financial,&nbsp;LLC, as
New Grantor, and The CIT Group/Business Credit&nbsp;Inc., as ABL
Collateral Agent (incorporated by reference to Exhibit&nbsp;4.31 to Dollar
General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with
the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>172</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.45</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No.&nbsp;2, dated as of
December&nbsp;31, 2007, to the ABL Security Agreement, between Retail Risk
Solutions,&nbsp;LLC, as New Grantor, and The CIT Group/Business
Credit&nbsp;Inc., as ABL Collateral Agent (incorporated by reference to
Exhibit&nbsp;4.38 to Dollar General Corporation&#146;s Amendment No.1 to
Registration Statement on Form&nbsp;S-4 filed with the SEC on
January&nbsp;25, 2008 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">4.46*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Supplement No. 3, dated as of March 23, 2009, to
the ABL Security Agreement, between the New Grantors referenced therein
and The CIT Group/Business Credit Inc., as ABL Collateral Agent</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">5.1*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Opinion of Simpson Thacher&nbsp;&amp;
Bartlett&nbsp;LLP</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">5.2*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Opinion of Baker, Donelson, Bearman,
Caldwell&nbsp;&amp; Berkowitz, P.C.</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.1</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">2007 Stock Incentive Plan for Key Employees of
Dollar General Corporation and its Affiliates (incorporated by reference
to Exhibit&nbsp;10.1 to Dollar General Corporation&#146;s Registration
Statement on Form&nbsp;S-4 filed with the SEC on December&nbsp;21, 2007
(file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.2</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amendment No. 1 to the 2007 Stock Incentive Plan
for Key Employees of Dollar General Corporation and its Affiliates
(incorporated by reference to Exhibit 99 to the Company&#146;s Current Report
on Form 8-K dated May 29, 2008, filed with the SEC on June 2, 2008 (file
number 001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.3</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Form of Stock Option Agreement between Dollar
General Corporation and officers of Dollar General Corporation granting
stock options pursuant to the 2007 Stock Incentive Plan (incorporated by
reference to Exhibit&nbsp;10.2 to Dollar General Corporation&#146;s
Registration Statement on Form&nbsp;S-4 filed with the SEC on
December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.4</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Form of Option Rollover Agreement between Dollar
General Corporation and officers of Dollar General Corporation
(incorporated by reference to Exhibit&nbsp;10.3 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.5</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Form of Management Stockholder&#146;s Agreement among
Dollar General Corporation, Buck Holdings,&nbsp;L.P. and officers of
Dollar General Corporation (incorporated by reference to Exhibit&nbsp;10.4
to Dollar General Corporation&#146;s Registration Statement on Form&nbsp;S-4
filed with the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.6</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Form of Sale Participation Agreement between Buck
Holdings,&nbsp;L.P. and certain officer-level employees, dated
July&nbsp;6, 2007 (incorporated by reference to Exhibit&nbsp;10.5 to
Dollar General Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed
with the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.7</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">1998 Stock Incentive Plan (As Amended and Restated
effective as of May&nbsp;31, 2006) (incorporated by reference to
Exhibit&nbsp;99 to Dollar General Corporation&#146;s Current Report on
Form&nbsp;8-K dated May&nbsp;31, 2006, filed with the SEC on June&nbsp;2,
2006 (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.8</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amendment to Dollar General Corporation 1998 Stock
Incentive Plan, effective November&nbsp;28, 2006 (incorporated by
reference to Exhibit&nbsp;10.8 to Dollar General Corporation&#146;s Annual
Report on Form&nbsp;10-K for the fiscal year ended February&nbsp;2, 2007,
filed with the SEC on March&nbsp;29, 2007 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.9</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Form of Stock Option Grant Notice in connection
with option grants made pursuant to the 1998 Stock Incentive Plan
(incorporated by reference to Dollar General Corporation&#146;s Quarterly
Report on Form&nbsp;10-Q for the quarter ended July&nbsp;29, 2005, filed
with the SEC on August&nbsp;25, 2005 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.10</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Dollar General Corporation CDP/SERP Plan (as
amended and restated effective December&nbsp;31, 2007) (incorporated by
reference to Exhibit&nbsp;10.10 to Dollar General Corporation&#146;s
Registration Statement on Form&nbsp;S-4 filed with the SEC on
December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.11</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">First Amendment to the Dollar General Corporation
CDP/SERP Plan (as amended and restated effective December&nbsp;31, 2007)
(incorporated by reference to Exhibit&nbsp;10.11 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.12</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Second Amendment to the Dollar General Corporation
CDP/SERP Plan (as amended and restated effective December 31, 2007)
(incorporated by reference to Exhibit 10.6 to Dollar General Corporation&#146;s
Quarterly Report on Form 10-Q for the quarter ended August 1, 2008, filed
with the SEC on September 3, 2008 (file number
001-11421))</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>173</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.13</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Dollar General Corporation Annual Incentive Plan
(effective March&nbsp;16, 2005, as approved by shareholders on
May&nbsp;24, 2005) (incorporated by reference to Exhibit&nbsp;10.6 to
Dollar General Corporation&#146;s Quarterly Report on Form&nbsp;10-Q for the
quarter ended July&nbsp;29, 2005, filed with the SEC on August&nbsp;25,
2005) (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.14*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Dollar General Corporation 2009 Teamshare Bonus
Program for Named Executive Officers </P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.15</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Summary of Dollar General Corporation Life
Insurance Program as Applicable to Executive Officers (incorporated by
reference to Exhibit&nbsp;10.19 to Dollar General Corporation&#146;s Annual
Report on Form&nbsp;10-K for the fiscal year ended February&nbsp;2, 2007,
filed with the SEC on March&nbsp;29, 2007) (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.16</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Dollar General Corporation Domestic Relocation
Policy for Officers (incorporated by reference to Exhibit&nbsp;10.20 to
Dollar General Corporation&#146;s Annual Report on Form&nbsp;10-K for the
fiscal year ended February&nbsp;2, 2007, filed with the SEC on
March&nbsp;29, 2007) (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.17</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Summary of Director Compensation (incorporated by
reference to Exhibit&nbsp;10.19 to Dollar General Corporation&#146;s
Registration Statement on Form&nbsp;S-4 filed with the SEC on
December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.18</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Employment Agreement, effective as of
January&nbsp;11, 2008, between Dollar General Corporation and Richard
Dreiling (incorporated by reference to Exhibit&nbsp;10.28 to Dollar
General Corporation&#146;s Amendment No.1 to Registration Statement on
Form&nbsp;S-4 filed with the SEC on January&nbsp;25, 2008 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.19</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amendment to Employment Agreement, dated December
19, 2008, between Dollar General Corporation and Richard Dreiling
(incorporated by reference to Exhibit 10.19 to Dollar General
Corporation&#146;s Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.20</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Stock Option Agreement, dated as of
January&nbsp;21, 2008, between Dollar General Corporation and Richard
Dreiling (incorporated by reference to Exhibit&nbsp;10.29 to Dollar
General Corporation&#146;s Amendment No.1 to Registration Statement on
Form&nbsp;S-4 filed with the SEC on January&nbsp;25, 2008 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.21</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Restricted Stock Award Agreement, effective as of
January&nbsp;21, 2008, between Dollar General Corporation and Richard
Dreiling (incorporated by reference to Exhibit&nbsp;10.32 to Dollar
General Corporation&#146;s Amendment No.1 to Registration Statement on
Form&nbsp;S-4 filed with the SEC on January&nbsp;25, 2008 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.22</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Management Stockholder&#146;s Agreement, dated as of
January&nbsp;21, 2008, among Dollar General Corporation, Buck
Holdings,&nbsp;L.P. and Richard Dreiling (incorporated by reference to
Exhibit&nbsp;10.30 to Dollar General Corporation&#146;s Amendment No.1 to
Registration Statement on Form&nbsp;S-4 filed with the SEC on
January&nbsp;25, 2008 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.23</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Sale Participation Agreement, dated
January&nbsp;21, 2008, between Buck Holdings,&nbsp;L.P. and Richard
Dreiling (incorporated by reference to Exhibit&nbsp;10.31 to Dollar
General Corporation&#146;s Amendment No.1 to Registration Statement on
Form&nbsp;S-4 filed with the SEC on January&nbsp;25, 2008 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.24</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Employment Agreement, dated July&nbsp;6, 2007, by
and between Dollar General Corporation and David L. Ber&#233; (incorporated by
reference to Exhibit&nbsp;10.1 to Dollar General Corporation&#146;s Current
Report on Form&nbsp;8-K dated July&nbsp;6, 2007, filed with the SEC on
July&nbsp;12, 2007 (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.25</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Extension of Initial Term of Employment Agreement,
dated December&nbsp;27, 2007, between Dollar General Corporation and David
Ber&#233; (incorporated by reference to Exhibit&nbsp;10.33 to Dollar General
Corporation&#146;s Amendment No.1 to Registration Statement on Form&nbsp;S-4
filed with the SEC on January&nbsp;25, 2008 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.26</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Notice of Initiation of Transition Period under
Employment Agreement, dated January&nbsp;8, 2008, by Dollar General
Corporation to David Ber&#233; (incorporated by reference to Exhibit&nbsp;10.34
to Dollar General Corporation&#146;s Amendment No.1 to Registration Statement
on Form&nbsp;S-4 filed with the SEC on January&nbsp;25, 2008 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.27</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Letter Agreement dated April 9, 2008 between Dollar
General Corporation and David L. Ber&#233; (incorporated by reference to
Exhibit 99.1 to Dollar General Corporation&#146;s Current Report on Form 8-K
dated April 9, 2008, filed with the SEC on April 10, 2008 (file number
001-11421))</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>174</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.28</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amendment to Employment Agreement, dated December
17, 2008, between Dollar General Corporation and David L. Ber&#233;
(incorporated by reference to Exhibit 10.28 to Dollar General
Corporation&#146;s Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.29</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Employment Agreement with David&nbsp;M. Tehle
effective April&nbsp;1, 2006 (incorporated by reference to
Exhibit&nbsp;99.1 to Dollar General Corporation&#146;s Current Report on
Form&nbsp;8-K dated March&nbsp;30, 2006, filed with the SEC on
April&nbsp;5, 2006) (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.30</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">First Amendment to Employment Agreement with David
M. Tehle, dated as of May 9, 2008 (incorporated by reference to Exhibit
99.1 to Dollar General Corporation&#146;s Current Report on Form 8-K dated May
9, 2008, filed with the SEC on May 15, 2008 (file number
001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.31</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amendment to Employment Agreement, dated December
15, 2008, between Dollar General Corporation and David M. Tehle
(incorporated by reference to Exhibit 10.31 to Dollar General
Corporation&#146;s Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.32</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Employment Agreement with Kathleen&nbsp;R. Guion
effective April&nbsp;1, 2006 (incorporated by reference to
Exhibit&nbsp;99.2 to Dollar General Corporation&#146;s Current Report on
Form&nbsp;8-K dated March&nbsp;30, 2006, filed with the SEC on
April&nbsp;5, 2006) (file number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.33</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">First Amendment to Employment Agreement with
Kathleen R. Guion, dated as of May 9, 2008 (incorporated by reference to
Exhibit 99.2 to Dollar General Corporation&#146;s Current Report on Form 8-K
dated May 9, 2008, filed with the SEC on May 15, 2008 (file number
001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.34</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amendment to Employment Agreement, dated December
15, 2008, between Dollar General Corporation and Kathleen R. Guion
(incorporated by reference to Exhibit 10.34 to Dollar General
Corporation&#146;s Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.35</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Employment Agreement, dated December 1, 2008,
between Dollar General Corporation and Todd Vasos (incorporated by
reference to Exhibit 10.35 to Dollar General Corporation&#146;s Annual Report
on Form 10-K for the fiscal year ended January 30, 2009, filed with the
SEC on March 24, 2009 (file number 001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.36</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Stock Option Agreement, dated December 19, 2008,
between Dollar General Corporation and Todd Vasos (incorporated by
reference to Exhibit 10.36 to Dollar General Corporation&#146;s Annual Report
on Form 10-K for the fiscal year ended January 30, 2009, filed with the
SEC on March 24, 2009 (file number 001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.37</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Management Stockholder&#146;s Agreement, dated December
19, 2008, among Dollar General Corporation, Buck Holdings, L.P., and Todd
Vasos (incorporated by reference to Exhibit 10.37 to Dollar General
Corporation&#146;s Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.38</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Sale Participation Agreement, effective December
19, 2008, between Buck Holdings, L.P. and Todd Vasos (incorporated by
reference to Exhibit 10.38 to Dollar General Corporation&#146;s Annual Report
on Form 10-K for the fiscal year ended January 30, 2009, filed with the
SEC on March 24, 2009 (file number 001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.39</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Employment Agreement, effective April 1, 2006,
between Dollar General Corporation and Susan S. Lanigan (incorporated by
reference to Exhibit 10.39 to Dollar General Corporation&#146;s Annual Report
on Form 10-K for the fiscal year ended January 30, 2009, filed with the
SEC on March 24, 2009 (file number 001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.40</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">First Amendment to Employment Agreement with Susan
S. Lanigan, dated as of May 9, 2008 (incorporated by reference to Exhibit
10.40 to Dollar General Corporation&#146;s Annual Report on Form 10-K for the
fiscal year ended January 30, 2009, filed with the SEC on March 24, 2009
(file number 001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.41</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Amendment to Employment Agreement, dated December
15, 2008, between Dollar General Corporation and Susan S. Lanigan
(incorporated by reference to Exhibit 10.41 to Dollar General
Corporation&#146;s Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>175</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><BR><BR><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=85></TD>
<TD width=548></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.36</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Monitoring Fee Letter Agreement, dated July 6,
2007, among Buck Holdings, L.P., Dollar General Corporation, Kohlberg
Kravis Roberts &amp; Co L.P., and Goldman, Sachs &amp; Co. (incorporated
by reference to Exhibit 10.25 to Dollar General Corporation&#146;s Registration
Statement on Form S-4 filed with the SEC on December 21, 2007 (file number
333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.37</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Indemnification Agreement, dated July&nbsp;6, 2007,
among Buck Holdings,&nbsp;L.P., Dollar General Corporation, Kohlberg
Kravis Roberts&nbsp;&amp; Co&nbsp;L.P., and Goldman,
Sachs&nbsp;&amp;&nbsp;Co. (incorporated by reference to Exhibit&nbsp;10.26
to Dollar General Corporation&#146;s Registration Statement on Form&nbsp;S-4
filed with the SEC on December&nbsp;21, 2007 (file
number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">10.38</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Purchase Letter Agreement, dated August&nbsp;15,
2007, between Principal Life Insurance Company and DC Financial,&nbsp;LLC
(incorporated by reference to Exhibit&nbsp;10.27 to Dollar General
Corporation&#146;s Registration Statement on Form&nbsp;S-4 filed with the SEC
on December&nbsp;21, 2007 (file number&nbsp;333-148320))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">12</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Statement Regarding Computation of Ratio of
Earnings to Fixed Charges (incorporated by reference to Exhibit 12 to
Dollar General Corporation&#146;s Annual Report on Form 10-K for the fiscal
year ended January 30, 2009, filed with the SEC on March 24, 2009 (file
number 001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">21</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">List of Subsidiaries of Dollar General Corporation
(incorporated by reference to Exhibit&nbsp;21 to Dollar General
Corporation&#146;s Annual Report on Form&nbsp;10-K for the fiscal year ended
January 30, 2009, filed with the SEC on March&nbsp;24, 2009 (file
number&nbsp;001-11421))</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">23.1</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Consent of Simpson Thacher&nbsp;&amp;
Bartlett&nbsp;LLP (included as part of Exhibit&nbsp;5.1)</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">23.2</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Consent of Baker, Donelson, Bearman,
Caldwell&nbsp;&amp; Berkowitz, P.C. (included as part of
Exhibit&nbsp;5.2)</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">23.3*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Consent of Ernst&nbsp;&amp;
Young&nbsp;LLP</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">24.1*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Omnibus Power of Attorney</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">25.1*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Form&nbsp;T-1 Statement of Eligibility under Trust
Indenture Act of 1939 of U.S. Bank National Association with respect to
the Senior Indenture</P></TD></TR>
<TR>
<TD vAlign=top width=85>
<P
style="PADDING-LEFT: 13px; MARGIN: 0px; TEXT-INDENT: -13px">25.2*</P></TD>
<TD vAlign=top width=548>
<P style="MARGIN: 0px">Form&nbsp;T-1 Statement of Eligibility under Trust
Indenture Act of 1939 of U.S. Bank National Association with respect to
the Senior Subordinated Indenture</P></TD></TR></TABLE>
<P style="MARGIN: 0px">_______________________<BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: -48px">*</P>
<P style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px">Filed
herewith.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>176</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"><B>Item
17. &nbsp;Undertakings</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
undersigned registrants hereby undertake:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(1)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">To file,
during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">To
include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act
of 1933;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(ii)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">To
reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule&nbsp;424(b) if, in the aggregate, the changes in
volume and price represent no more than a 20% change in the maximum aggregate
offering price set forth in the &#147;Calculation of Registration Fee&#148; table in the
effective registration statement; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(iii)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">To
include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to
such information in the registration statement.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(2)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">That, for the
purpose of determining any liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial <I>bona fide</I> offering
thereof.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(3)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">To remove
from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(4)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">That, for the
purpose of determining liability under the Securities Act of 1933 to any
purchaser, each prospectus filed pursuant to Rule 424(b) as part of a
registration statement relating to an offering, other than registration
statements relying on Rule 430B or other than prospectuses filed in reliance on
Rule 430A, shall be deemed to be part of and included in the registration
statement as of the date it is first used after effectiveness. Provided,
however, that no statement made in a registration statement or prospectus that
is part of the registration statement or made in a document incorporated or
deemed incorporated by reference into the registration statement or prospectus
that is part of the registration statement will, as to a purchaser with a time
of contract of sale prior to such first use, supersede or modify any statement
that was made in the registration statement or prospectus that was part of the
registration statement or made in any such document immediately prior to such
date of first use.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(5)</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">That, for the
purpose of determining liability of the registrant under the Securities Act of
1933 to any purchaser in the initial distribution of the securities:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">The
undersigned registrant undertakes that in a primary offering of securities of
the undersigned registrant pursuant to this registration statement, regardless
of the underwriting method used to sell the securities to the purchaser, if the
securities are offered or sold to such purchaser by means of any of the
following communications, the undersigned registrant will be a seller to the
purchaser and will be considered to offer or sell such securities to such
purchaser:</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(i)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Any
preliminary prospectus or prospectus of the undersigned registrant relating to
the offering required to be filed pursuant to Rule&nbsp;424;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(ii)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Any
free writing prospectus relating to the offering prepared by or on behalf of the
undersigned registrant or used or referred to by the undersigned registrant;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>177</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: 48px">(iii)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">The
portion of any other free writing prospectus relating to the offering containing
material information about the undersigned registrant or its securities provided
by or on behalf of the undersigned registrant; and</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 48px">(iv)</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 96px">Any
other communication that is an offer in the offering made by the undersigned
registrant to the purchaser.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Insofar as
indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers, and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrants of expenses incurred
or paid by a director, officer or controlling person of the registrants in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrants will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>178</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, Dollar General
Corporation has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DOLLAR GENERAL CORPORATION</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=top width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN: 0px">Name: David M. Tehle<BR>Title: &nbsp;<I>Executive
Vice President &amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive
Officer; Director<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Richard W. Dreiling</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp; Chief
Financial Officer <BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Raj Agrawal</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Michael M. Calbert</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Adrian Jones</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>179</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, DC
Financial,&nbsp;LLC has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=28></TD>
<TD width=363></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=3>
<P style="MARGIN: 0px">DC FINANCIAL,&nbsp;LLC</P></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=392 colSpan=2>
<P style="MARGIN: 0px">Dollar General Corporation, its Managing
Member</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=28>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=363>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=28>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=363>
<P style="MARGIN: 0px">Name: David M. Tehle<BR>Title: &nbsp;<I>Executive
Vice President &amp;</I> <I>Chief Financial
Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P style="MARGIN: 0px" align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman, Chief Executive Officer
&amp; Director of<BR>Dollar General Corporation, <BR>Managing Member of
Registrant<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Richard W. Dreiling</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp; Chief
Financial Officer of<BR>Dollar General Corporation, <BR>Managing Member of
Registrant<BR>(Principal Financial and Accounting Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation<BR>Managing Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Raj Agrawal</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation<BR>Managing Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Michael M. Calbert</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation<BR>Managing Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Adrian
&nbsp;Jones</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>180</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, DG
Logistics,&nbsp;LLC has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DG LOGISTICS,&nbsp;LLC</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=top width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN: 0px">Name: David M. Tehle<BR>Title: &nbsp;<I>Executive
Vice President &amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=316></TD>
<TD width=321></TD></TR>
<TR>
<TD vAlign=top width=316>
<P style="MARGIN: 0px" align=center><B>Signature</B></P></TD>
<TD vAlign=top width=321>
<P style="MARGIN: 0px" align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=316>
<P>&nbsp;</P></TD>
<TD vAlign=top width=321>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=316>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=321 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chief Executive Officer &amp; Chief
Manager of Registrant<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=316>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=top width=316>
<P>&nbsp;</P></TD>
<TD vAlign=top width=321>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=316>
<P
style="MARGIN-TOP: 11px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=321 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp; Chief
Financial Officer of Registrant and Director of DG Transportation, Inc.,
<BR>Sole Member of Registrant<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=316>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=top width=316>
<P>&nbsp;</P></TD>
<TD vAlign=top width=321>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=316>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=321 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of DG
Transportation,&nbsp;Inc.,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=top width=316>
<P style="MARGIN: 0px" align=center>Susan S. Lanigan</P></TD></TR>
<TR>
<TD vAlign=top width=316>
<P>&nbsp;</P></TD>
<TD vAlign=top width=321>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=316>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=321 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of DG Transportation,
Inc.,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=top width=316>
<P style="MARGIN: 0px" align=center>Robert D.
Ravener</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>181</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, DG
Promotions,&nbsp;Inc. has duly caused this Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DG PROMOTIONS,&nbsp;INC.</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=top width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN: 0px">Name: David M. Tehle<BR>Title: &nbsp;<I>Executive
Vice President &amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive
Officer<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp; Chief
Financial Officer; Director<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Susan S.
Lanigan</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>182</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, DG Retail,&nbsp;LLC
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DG RETAIL,&nbsp;LLC</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN: 0px">Name: David M. Tehle<BR>Title: &nbsp;<I>Executive
Vice President &amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chief Executive Officer of
Registrant<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 11px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp;
<BR>Chief Financial Officer of Registrant; <BR>Director of DG Promotions,
Inc., Sole Member of Registrant<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of DG Promotions,
Inc.,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Susan S.
Lanigan</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>183</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, DG
Transportation,&nbsp;Inc. has duly caused this Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DG TRANSPORTATION,&nbsp;INC.</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 47px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 47px"><I>Executive Vice President
&amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive
Officer<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President, Chief
Financial Officer &amp; Director<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Susan S. Lanigan</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Robert D.
Ravener</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>184</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>&nbsp;SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgencorp of New
York,&nbsp;Inc. has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DOLGENCORP OF NEW YORK,&nbsp;INC.</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 47px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 47px"><I>Executive Vice President
&amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive
Officer<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President, Chief
Financial Officer &amp; Director<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Susan S. Lanigan</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Robert D.
Ravener</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>185</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgencorp of
Texas,&nbsp;Inc. has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DOLGENCORP OF TEXAS,&nbsp;INC.</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 42px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 42px"><I>Executive Vice President
&amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive
Officer<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President, Chief
Financial Officer &amp; Director<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Susan S. Lanigan</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Robert D.
Ravener</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>186</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgencorp,&nbsp;LLC
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DOLGENCORP,&nbsp;LLC</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 40px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 40px"><I>Executive Vice President
&amp;</I> <I>Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive
Officer<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp; Chief
Financial Officer<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Richard W. Dreiling</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Raj Agrawal</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Michael M. Calbert</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Adrian Jones</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>187</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, Dollar General
Partners has duly caused this Registration Statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Goodlettsville,
State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=32></TD>
<TD width=358></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=3>
<P style="MARGIN: 0px">DOLLAR GENERAL PARTNERS</P></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391 colSpan=2>
<P style="MARGIN: 0px">Dollar General Corporation and DG
Promotions,&nbsp;Inc., its General Partners</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=358>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=358>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 41px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 41px"><I>Executive Vice President
&amp;Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 11px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman, Chief Executive Officer
&amp; Director of<BR>Dollar General Corporation, General Partner of
Registrant<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Richard W. Dreiling</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 11px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive Officer
of <BR>DG Promotions, Inc., General Partner of Registrant<BR>(Principal
Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 26px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp; Chief
Financial Officer of <BR>Dollar General Corporation and Executive Vice
President, Chief Financial Officer &amp; Director of DG Promotions, Inc.,
General Partners of Registrant<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, General Partner of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Raj Agrawal</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, General Partner of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Michael M. Calbert</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, General Partner of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Adrian Jones</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of DG Promotions, Inc.,
General Partner of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Susan S.
Lanigan</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>188</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, Retail Risk
Solutions,&nbsp;LLC has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">RETAIL RISK SOLUTIONS,&nbsp;LLC</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 40px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 40px"><I>Vice President &amp; Chief
Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>President<BR>(Principal Executive
Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Vice President &amp; Chief Financial
Officer<BR>(Principal Financial &nbsp;and Accounting Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Richard W. Dreiling</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Raj Agrawal</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Michael M. Calbert</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation,<BR>Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Adrian Jones</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>189</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, South Boston
FF&amp;E,&nbsp;LLC has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">SOUTH BOSTON FF&amp;E,&nbsp;LLC</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 40px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 40px"><I>Vice</I> <I>President &amp;
Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>President<BR>(Principal Executive
Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Vice President &amp; Chief Financial
Officer of Registrant and Director of South Boston Holdings, Inc., Sole
General Partner of the Sole Member of Registrant<BR>(Principal Financial
and Accounting Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of South Boston Holdings,
Inc., Sole General Partner of the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Anita C.
Elliott</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>190</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, South Boston
Holdings,&nbsp;Inc. has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">SOUTH BOSTON HOLDINGS,&nbsp;INC.</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 40px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 40px"><I>Vice</I> <I>President &amp;
Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>President<BR>(Principal Executive
Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Vice President &amp; Chief Financial
Officer; Director<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P style="MARGIN: 0px" align=center>Anita C.
Elliott</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>191</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended,
Sun-Dollar,&nbsp;L.P. has duly caused this Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=32></TD>
<TD width=358></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=3>
<P style="MARGIN: 0px">SUN-DOLLAR,&nbsp;L.P.</P></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391 colSpan=2>
<P style="MARGIN: 0px">South Boston Holdings,&nbsp;Inc., its General
Partner</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=358>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=358>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 41px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 41px"><I>Vice President &amp; Chief
Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>President of South Boston Holdings,
Inc.,<BR>Sole General Partner of Registrant<BR>(Principal Executive
Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Vice President, Chief Financial
Officer &amp; Director of<BR>South Boston Holdings, Inc., <BR>Sole General
Partner of Registrant<BR>(Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Anita C.
Elliott</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">SUSAN S. LANIGAN</FONT></P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>192</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgen I, Inc. has
duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DOLGEN I, INC.</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 40px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 40px"><I>Executive Vice</I>
<I>President &amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive
Officer<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President, Chief
Financial Officer &amp; Director (Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Susan S. Lanigan</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Robert D.
Ravener</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid">/s/
SUSAN S. LANIGAN</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>193</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgen II, Inc. has
duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DOLGEN II, INC.</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 40px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 40px"><I>Executive Vice</I>
<I>President &amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive
Officer<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President, Chief
Financial Officer &amp; Director (Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Susan S. Lanigan</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Robert D.
Ravener</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid">/s/
SUSAN S. LANIGAN</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>194</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgen III, Inc. has
duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=391></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=2>
<P style="MARGIN: 0px">DOLGEN III, INC.</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=391>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 39px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 39px"><I>Executive Vice</I>
<I>President &amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman &amp; Chief Executive
Officer<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David L. Bere</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 11px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President, Chief
Financial Officer &amp; Director (Principal Financial and Accounting
Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Susan S. Lanigan</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Robert D.
Ravener</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid">/s/
SUSAN S. LANIGAN</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>195</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, DG Strategic I, LLC
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=32></TD>
<TD width=358></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=3>
<P style="MARGIN: 0px">DG STRATEGIC I, LLC</P></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391 colSpan=2>
<P style="MARGIN: 0px">Dollar General Corporation, its Sole
Member</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=358>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=358>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 41px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 41px">Executive <I>Vice President
&amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman, Chief Executive Officer
&amp; Director of<BR>Dollar General Corporation, the Sole Member of
Registrant<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Richard W. Dreiling</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp; Chief
Financial Officer of<BR>Dollar General Corporation, the Sole Member of
Registrant<BR>(Principal Financial and Accounting Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, <BR>the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Raj Agrawal</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, <BR>the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Michael M. Calbert</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, <BR>the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Adrian Jones</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid">/s/
SUSAN S. LANIGAN</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>196</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, DG Strategic II, LLC
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=32></TD>
<TD width=358></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=3>
<P style="MARGIN: 0px">DG STRATEGIC II, LLC</P></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391 colSpan=2>
<P style="MARGIN: 0px">Dollar General Corporation, its Sole
Member</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=358>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=358>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 41px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 41px">Executive <I>Vice President
&amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman, Chief Executive Officer
&amp; Director of<BR>Dollar General Corporation, the Sole Member of
Registrant<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Richard W. Dreiling</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp; Chief
Financial Officer of<BR>Dollar General Corporation, the Sole Member of
Registrant<BR>(Principal Financial and Accounting Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, <BR>the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Raj Agrawal</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, <BR>the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Michael M. Calbert</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, <BR>the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Adrian Jones</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid">/s/
SUSAN S. LANIGAN</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>197</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; PAGE-BREAK-BEFORE: always"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, as amended, DG Strategic III,
LLC has duly caused this Registration Statement to be signed on its behalf by
the undersigned, thereunto duly authorized, in the City of Goodlettsville, State
of Tennessee, on March 30, 2009.</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=209></TD>
<TD width=32></TD>
<TD width=32></TD>
<TD width=358></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=424 colSpan=3>
<P style="MARGIN: 0px">DG STRATEGIC III, LLC</P></TD></TR>
<TR>
<TD vAlign=top width=209>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=391 colSpan=2>
<P style="MARGIN: 0px">Dollar General Corporation, its Sole
Member</P></TD></TR>
<TR>
<TD vAlign=top width=209 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=32 rowSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=32>
<P style="MARGIN: 0px">By:</P></TD>
<TD vAlign=bottom width=358>
<P
style="MARGIN-TOP: 20px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; LINE-HEIGHT: normal; BORDER-BOTTOM: #000000 1px solid">/s/
<FONT style="FONT-SIZE: 6pt">DAVID M. TEHLE</FONT></P></TD></TR>
<TR>
<TD vAlign=bottom width=32>
<P>&nbsp;</P></TD>
<TD vAlign=bottom width=358>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px">Name:</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: -16px; TEXT-INDENT: 42px">David
M. Tehle<BR>Title:</P>
<P style="MARGIN: 0px; TEXT-INDENT: 42px">Executive <I>Vice President
&amp; Chief Financial Officer</I></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 13px; MARGIN-BOTTOM: 13px; TEXT-INDENT: 48px">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0
align=center>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=318></TD>
<TD width=319></TD></TR>
<TR>
<TD vAlign=top width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Signature</B></P></TD>
<TD vAlign=top width=319>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center><B>Capacity</B></P></TD></TR>
<TR>
<TD vAlign=top width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Chairman, Chief Executive Officer
&amp; Director of<BR>Dollar General Corporation, the Sole Member of
Registrant<BR>(Principal Executive Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Richard W. Dreiling</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px; PADDING-BOTTOM: 4px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Executive Vice President &amp; Chief
Financial Officer of<BR>Dollar General Corporation, the Sole Member of
Registrant<BR>(Principal Financial and Accounting Officer)</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>David M. Tehle</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, <BR>the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Raj Agrawal</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, <BR>the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Michael M. Calbert</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P>&nbsp;</P></TD>
<TD vAlign=top width=319>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid"
align=center>*</P></TD>
<TD vAlign=top width=319 rowSpan=2>
<P style="MARGIN: 0px" align=center>Director of Dollar General
Corporation, <BR>the Sole Member of Registrant</P></TD></TR>
<TR>
<TD vAlign=bottom width=318>
<P style="MARGIN: 0px" align=center>Adrian Jones</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px">&nbsp;</P>
<TABLE style="FONT-SIZE: 10pt" borderColor=transparent cellSpacing=0>
<TR style="FONT-SIZE: 0px" height=0>
<TD width=21></TD>
<TD width=33></TD>
<TD width=269></TD>
<TD width=313></TD></TR>
<TR>
<TD vAlign=top width=21>
<P style="MARGIN: 0px">* </P></TD>
<TD vAlign=top width=33>
<P style="MARGIN: 0px" align=right>By:</P></TD>
<TD vAlign=top width=269>
<P
style="PADDING-BOTTOM: 4px; MARGIN: 0px; BORDER-BOTTOM: #000000 1px solid">/s/
SUSAN S. LANIGAN</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=55 colSpan=2>
<P>&nbsp;</P></TD>
<TD vAlign=top width=269>
<P style="MARGIN: 0px">Attorney-in-Fact</P></TD>
<TD vAlign=top width=313>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px"><BR><BR></P>
<P style="MARGIN: 0px" align=center>198</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN: 0px"><BR></P></DIV></BODY>
<!-- EDGAR Validation Code: 3A5D07F4 -->
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Form S-1
As filed with the
Securities and Exchange Commission on March 30, 2009
Registration
No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
_____________________
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES
ACT OF 1933
_____________________
Dollar General Corporation
(Exact name of
registrant as specified in its charter)
_____________________
Tennessee
(State of
Incorporation)
5331
(Primary Standard
Industrial
Classification Code Number)
61-0502302
(I.R.S. Employer
Identification No.)
_____________________
100 Mission Ridge
Goodlettsville, Tennessee
37072
(615) 855-4000
(Address,
including zip code, and telephone number, including area code, of
registrants' principal executive offices)
Susan S.
Lanigan
Executive Vice President, General Counsel
Dollar General
Corporation
100 Mission Ridge
Goodlettsville, Tennessee
37072
(615) 855-4000
(Name,
address, including zip code, and telephone number, including area code, of
agent for service)
With copies to:
Joseph H. Kaufman Esq.
Simpson
Thacher & Bartlett LLP
425 Lexington Avenue
New York, New York
10017-3954
(212) 455-2000
Gary Brown Esq.
Baker, Donelson,
Bearman, Caldwell & Berkowitz, PC
Commerce Center Suite 1000
211
Commerce Street
Nashville, Tennessee 37201
(615)
726-5763
Approximate date
of commencement of proposed sale to the public:
As soon as
practicable after this Registration Statement is declared effective.
If any of the
securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act of 1933,
check the following box.
x
If this Form
is filed to register additional securities for an offering pursuant to
Rule 462(b) under the Securities Act, please check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering.
o
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under
the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering.
o
If this Form
is a post-effective amendment filed pursuant to Rule 462(d) under the
Securities Act, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same
offering.
o
Indicate by
check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the
definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
x
(Do not check if a smaller
reporting company)
Smaller reporting company
o
____________________
CALCULATION OF
REGISTRATION FEE
Title of Each Class of Securities
to be
Registered
Amount to
be
Registered
Proposed Maximum
Offering Price
per Note
Proposed Maximum
Aggregate
Offering
Price
Amount
of
Registration
Fee
10.625%
Senior Notes due 2015
(1)
(1)
(1)
(1)
11.875%/12.625%
Senior Subordinated Toggle Notes due 2017
(1)
(1)
(1)
(1)
Guarantees
of 10.625% Senior Notes
due 2015(2)
(1)(3)
(1)(3)
(1)(3)
(1)(3)
Guarantees
of 11.875%/12.625% Senior Subordinated Toggle Notes due 2017(2)
(1)(3)
(1)(3)
(1)(3)
(1)(3)
(1)
An
indeterminate amount of securities are being registered hereby to be offered
solely for market-making purposes by specified affiliates of the registrants.
Pursuant to Rule 457(q) under the Securities Act of 1933, as amended, no
filing fee is required.
(2)
See
inside facing page for registrant guarantors.
(3)
Pursuant
to Rule 457(n) under the Securities Act, no separate filing fee is required
for the guarantees.
The registrants hereby amend this
Registration Statement on such date or dates as may be necessary to delay its
effective date until the registrants shall file a further amendment which
specifically states that this Registration Statement shall thereafter become
effective in accordance with Section 8(a) of the Securities Act of 1933, as
amended, or until the Registration Statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said
Section 8(a), may determine.
TABLE OF REGISTRANT GUARANTORS
Exact Name of Registrant as Specified
in its Charter
(or Other Organizational Document)
State or Other
Jurisdiction
of
Incorporation
or Organization
I.R.S. Employer Identification Number
Address, Including Zip Code, of Registrant's Principal
Executive Offices
Telephone Number, Including Area Code, of Registrant's
Principal Executive Offices
DC
Financial, LLC
Tennessee
N/A
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
DG
Logistics, LLC
Tennessee
62-1805098
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
DG
Promotions, Inc.
Tennessee
62-1792083
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
DG Retail,
LLC
Tennessee
36-4577242
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
DG
Strategic I, LLC
Tennessee
26-4507991
100 Mission Ridge,
Goodlettsville, TN 37072
615-855-4000
DG
Strategic II, LLC
Tennessee
26-4508076
100 Mission Ridge,
Goodlettsville, TN 37072
615-855-4000
DG
Strategic III, LLC
Tennessee
26-4508134
100 Mission Ridge,
Goodlettsville, TN 37072
615-855-4000
DG
Transportation, Inc.
Tennessee
37-1517488
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
Dolgen I,
Inc.
Tennessee
26-4508189
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
Dolgen II,
Inc.
Tennessee
26-4508236
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
Dolgen III,
Inc.
Tennessee
26-4508282
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
Dolgencorp
of New York, Inc.
Kentucky
62-1829863
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
Dolgencorp
of Texas, Inc.
Kentucky
61-1193136
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
Dolgencorp,
LLC
Kentucky
61-0852764
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
Dollar
General Partners
Kentucky
61-1193137
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
Retail Risk
Solutions, LLC
Tennessee
26-1644044
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
South
Boston FF&E, LLC
Delaware
26-0411224
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
South
Boston Holdings, Inc.
Delaware
20-5220571
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
Sun-Dollar,
L.P.
California
95-4629930
100 Mission Ridge,
Goodlettsville, TN
37072
615-855-4000
The
information in this prospectus is not complete and may be changed. We may not
sell the securities until the registration statement filed with the Securities
and Exchange Commission is effective. This prospectus is not an offer to sell
these securities and it is not soliciting an offer to buy these securities in
any state where the offer or sale is not permitted.
Subject to Completion Dated March 30, 2009
Dollar General Corporation
$1,175,000,000 10.625% Senior Notes due
2015
$655,891,000
11.875%/12.625% Senior Subordinated Toggle Notes due 2017
__________________________
The 10.625%
Senior Notes due 2015 (the "senior notes") bear interest at a rate of 10.625%
per annum and will mature on July 15, 2015. Cash interest on the
11.875%/12.625% Senior Subordinated Toggle Notes (the "senior subordinated
notes") will accrue at a rate of 11.875% per annum, and PIK interest will accrue
at a rate of 12.625% per annum. The senior subordinated notes will mature on
July 15, 2017. The senior notes and the senior subordinated notes are
collectively referred to herein as the "notes," unless the context otherwise
requires.
We may redeem
some or all of the senior notes at any time on or after July 15, 2011 and
some or all of the senior subordinated notes at any time on or after
July 15, 2012, in each case at the redemption prices set forth in this
prospectus. We may redeem some or all of the senior notes prior to July 15,
2011 and some or all of the senior subordinated notes prior to July 15,
2012, in each case at a price equal to 100% of the principal amount of the notes
redeemed plus the applicable "make-whole" premium as described in this
prospectus. On or before July 15, 2010, we may also redeem up to 35% of the
senior notes and 35% of the senior subordinated notes, in each case at the
redemption prices set forth in this prospectus, using the proceeds of certain
equity offerings.
The senior
notes are senior unsecured obligations of Dollar General Corporation and rank
senior in right of payment to our future debt and other obligations that are, by
their terms, expressly subordinated in right of payment to the senior notes,
including the senior subordinated notes. The senior notes rank equal in right of
payment to all of our existing and future senior debt and other obligations that
are not, by their terms, expressly subordinated in right of payment to the
senior notes. The senior notes are effectively subordinated to all of our
existing and future secured debt, including obligations under our Credit
Facilities (defined under the section entitled "Description of Other
Indebtedness"), to the extent of the value of the assets securing such debt, and
structurally subordinated to all obligations of each of our subsidiaries that is
not a guarantor of the senior notes.
The senior
subordinated notes are senior unsecured obligations and will be subordinated in
right of payment to our existing and future senior debt, including obligations
under our Credit Facilities and the senior notes. The senior subordinated notes
rank equal in right of payment to all of our existing and future senior
subordinated debt and other obligations that are not, by the terms of the senior
subordinated notes, expressly made senior. The senior subordinated notes are
effectively subordinated to all of our existing and future secured debt,
including obligations under our Credit Facilities, to the extent of the value of
the assets securing such debt, and will be structurally subordinated to all
obligations of any subsidiaries that do not guarantee the senior subordinated
notes. The senior subordinated notes rank senior in right of payment to all of
our future debt and other obligations that are, by their terms, expressly
subordinated in right of payment to the senior subordinated notes.
________________________
See "Risk
Factors" beginning on page 10 for a discussion of certain risks that you
should consider before investing in the notes.
Neither the
Securities and Exchange Commission nor any state securities commission has
approved or disapproved of the notes or passed upon the adequacy or accuracy of
this prospectus. Any representation to the contrary is a criminal
offense.
This
prospectus has been prepared for and may be used by Goldman,
Sachs & Co. and other affiliates of Goldman,
Sachs & Co. in connection with offers and sales of the notes
related to market-making transactions in the notes effected from time to time.
Such affiliates of Goldman, Sachs & Co. may act as principal or
agent in such transactions, including as agent for the counterparty when acting
as principal or as agent for both counterparties, and may receive compensation
in the form of discounts and commissions, including from both counterparties,
when it acts as agents for both. Such sales will be made at prevailing market
prices at the time of sale, at prices related thereto or at negotiated prices.
We will not receive any proceeds from such sales.
The date of this
prospectus is
                       ,
2009.
Table of Contents
Page
Summary
1
Risk
Factors
10
Statements
Regarding Forward-Looking Information
15
The
Transactions
16
Ownership
and Corporate Structure
19
Use of
Proceeds
20
Capitalization
21
Ratio of
Earnings to Fixed Charges
22
Description
of Other Indebtedness
23
Description
of Senior Notes
27
Description
of Senior Subordinated Notes
84
Book-Entry
Settlement and Clearance
146
Certain
U.S. Federal Income and Estate Tax Consequences
149
Certain
ERISA Considerations
156
Plan of
Distribution
157
Legal
Matters
158
Experts
158
Available
Information
158
_________________
We have
not authorized any dealer, salesperson or other person to give any information
or represent anything to you other than the information contained in this
prospectus. You must not rely on unauthorized information or
representations.
This
prospectus does not offer to sell nor ask for offers to buy any of the
securities in any jurisdiction where it is unlawful, where the person making the
offer is not qualified to do so, or to any person who cannot legally be offered
the securities. The information in this prospectus is current only as of the
date on its cover and may change after that date.
i
MARKET AND INDUSTRY DATA
We obtained
the industry, market and competitive position data used throughout this
prospectus or used in documents incorporated by reference into this prospectus
from our own internal estimates and research as well as from industry
publications and research, surveys and studies conducted by third parties.
Industry publications, studies and surveys generally state that they have been
obtained from sources believed to be reliable, although they do not guarantee
the accuracy or completeness of such information. While we believe that each of
these publications, studies and surveys is reliable, we have not independently
verified industry, market and competitive position data from third-party
sources. While we believe our internal business research is reliable and the
market definitions are appropriate, neither such research nor these definitions
have been verified by any independent source.
ii
SUMMARY
This
summary highlights information appearing elsewhere or incorporated by reference
in this prospectus. This summary is not complete and does not contain all of the
information that you should consider before making your investment decision. You
should carefully read this summary together with the entire prospectus,
including the information presented under the section entitled "Risk Factors"
and the information that is incorporated into this prospectus by reference to
our Annual Report on Form 10-K for the fiscal year ended January 30, 2009
(including without limitation the additional Risk Factors disclosed in
Part I, Item 1A of such Form 10-K). See the "Available
Information" section of this prospectus for a further discussion of
incorporation by reference.
Unless the
context otherwise requires, references in this prospectus to "Dollar General,"
"we," "our," "us" and "the Company" refer to Dollar General Corporation and its
consolidated subsidiaries, both before and after the Transactions (as defined
below under the section entitled "The Transactions"), and references to the
"Issuer" refer to Dollar General Corporation. Financial information identified
in this prospectus as "pro forma" gives effect to the consummation of the
Transactions. This prospectus contains references to years 2009, 2008, 2007,
2006, 2005 and 2004, which represent fiscal years ending or ended January 29,
2010, January 30, 2009, February 1, 2008, February 2, 2007,
February 3, 2006 and January 28, 2005, respectively, unless the
context otherwise requires. In this prospectus "fiscal 2008 Form 10-K"
refers to our Annual Report on Form 10-K for the fiscal year ended January
30, 2009 that we filed with the SEC on March 24, 2009 and that is
incorporated herein by reference.
Our
Company
We are the
largest discount retailer in the United States by number of stores, with 8,414
stores located in 35 states, primarily in the southern, southwestern, midwestern
and eastern United States, as of February 27, 2009. We serve a broad
customer base and offer a focused assortment of everyday items, including basic
consumable merchandise and other home, apparel and seasonal products. A majority
of our products are priced at $10 or less and approximately 25% of our products
are priced at $1 or less.
We offer a
compelling value proposition for our customers based on convenient store
locations, easy in and out shopping and quality name brand and private brand
merchandise at highly competitive everyday low prices. We believe our
combination of value and convenience distinguishes us from other discount,
convenience and drugstore retailers, who typically focus on either value or
convenience. Our business model is focused on strong and sustainable sales
growth, attractive margins, and limited maintenance capital expenditure and
working capital needs, which, in combination, result in significant cash flow
from operations (before interest).
We were
founded in 1939 as J.L. Turner and Son, Wholesale. We opened our first dollar
store in 1955, when we were incorporated as a Kentucky corporation under the
name J.L. Turner & Son, Inc. We changed our name to Dollar General
Corporation in 1968 and reincorporated as a Tennessee corporation in 1998. In
2007, we entered into a merger transaction with an entity controlled by
investment funds affiliated with Kohlberg Kravis Roberts & Co., L.P. ("KKR"
or "Sponsor"), as discussed in more detail under "The Transactions" below.
 Our principal executive offices are located at 100 Mission Ridge,
Goodlettsville, Tennessee 37072, and our telephone number is
(615) 855-4000. Our website address is
www.dollargeneral.com
. The
information on our website is not part of this prospectus.
We have
increased our total number of stores from 6,700 on January 30, 2004 to 8,362 on
January 30, 2009, a 4.5% compounded annual growth rate ("CAGR"). Over the same
period, we grew our net sales from $6.9 billion to $10.5 billion (8.8%
CAGR), driven by growth in number of stores as well as same store sales growth.
We slowed new store growth in 2007 and 2008 and closed approximately 400 stores
in 2007 to improve our profitability and to enable us to focus on improving the
performance of existing stores. In 2008, we opened 207 new stores, closed 39
stores, and relocated or remodeled 404 existing stores. Net sales in 2008 were
driven primarily by a same-store sales increase of 9.0%. We intend to accelerate
our new store growth in 2009 with plans to open approximately 450 new stores and
to remodel or relocate approximately 400 stores.
1
Summary of the Terms of the Notes
The
summary below, which is not intended to be complete, describes the principal
terms of the notes. Certain of the terms and conditions summarized below are
subject to important limitations and exceptions. The "Description of Senior
Notes" and "Description of Senior Subordinated Notes" sections of this
prospectus contain more detailed descriptions of the terms and conditions of the
notes.
Issuer
Dollar General.
Securities
$1,830,891,000 in aggregate principal amount of
notes, consisting of:
•
$1,175,000,000 in aggregate principal amount of
10.625% senior notes due 2015; and
•
$655,891,000 in aggregate principal amount of
11.875% /12.625% senior subordinated notes due 2017.
Maturity
Dates
The senior notes will mature on July 15, 2015.
The senior subordinated notes will mature on
July 15, 2017.
Interest
Payment Dates
Interest on the notes will be payable on
January 15 and July 15 of each year, beginning on
January 15, 2008.
Interest
Rates and Forms of Payment
The senior notes will bear interest at a rate of
10.625% per annum.
Cash interest on the senior subordinated notes will
accrue at a rate of 11.875% per annum, and PIK Interest (defined below)
will accrue at a rate of 12.625% per annum. The initial interest payment
on the senior subordinated notes will be payable in cash. For any interest
period commencing on or after January 15, 2008 through July 15,
2011 we may elect to pay interest on the senior subordinated notes (i) in
cash; (ii) by increasing the principal amount of the senior subordinated
notes or by issuing new senior subordinated notes ("PIK Notes") (such
increase or issuance, "PIK Interest") or (iii) by paying interest on half
of the principal amount of the senior subordinated notes in cash and half
in PIK Interest. If we elect to pay PIK Interest, we will increase the
principal amount of the senior subordinated notes or issue PIK Notes, in
each case, in an amount equal to the amount of PIK Interest for the
applicable interest payment period (rounded up to the nearest $1,000 in
the case of global notes and to the nearest whole dollar in the case of
senior subordinated notes in certificated form) to holders of the senior
subordinated notes on the relevant record date. The senior subordinated
notes will bear interest on the increased principal amount thereof from
and after the applicable interest payment date on which a payment of PIK
Interest is made. We must elect the form of interest payment with respect
to each interest period no later than 30 days before the beginning of the
applicable interest period. In the absence of such an election or proper
notification of such election to the trustee, interest will be payable in
accordance with the last election made for the previous interest period.
2
Original
Issue Discount
We will have the option to pay interest on the
senior subordinated notes in cash interest or PIK Interest for any
interest payment period after the initial interest payment through
July 15, 2011. For U.S. federal income tax purposes, the existence of
this option means that none of the interest payments on the senior
subordinated notes will be qualified stated interest even if we never
exercise the option to pay PIK Interest. Consequently, the senior
subordinated notes will be treated as issued with original issue discount,
and U.S. holders (as defined in "Certain U.S. Federal Income and Estate
Tax Consequences") will be required to include the original issue discount
in gross income on a constant yield to maturity basis, regardless of
whether interest is paid currently in cash. For more information, see
"Certain U.S. Federal Income and Estate Tax Consequences."
Security
None. The notes will be unsecured obligations of
the Issuer and the subsidiary guarantors.
Guarantees
The senior notes will be unconditionally
guaranteed, jointly and severally, on an unsecured senior basis, and the
senior subordinated notes will be unconditionally guaranteed, jointly and
severally, on an unsecured senior subordinated basis, in each case, by
each of our wholly owned subsidiaries that has guaranteed our Credit
Facilities (as defined below under the section entitled "Description of
Other Indebtedness").
Our non-guarantor subsidiaries accounted for
approximately $97.9 million of net revenues and approximately
$26.2 million of net income, in each case, for 2008 and approximately
$313.3 million of total assets and approximately $250.5 million
of total liabilities, in each case, as of January 30, 2009. Included in
these net revenues, net income, total assets and total liabilities
balances are certain intercompany balances that are eliminated in
consolidation.
Ranking
The senior notes are our senior unsecured
obligations and will:
•
rank senior in right of payment to our existing and
future debt and other obligations that are, by their terms, expressly
subordinated in right of payment to the senior notes, including the senior
subordinated notes;
•
rank equal in right of payment to all of our
existing and future senior debt and other obligations that are not, by
their terms, expressly subordinated in right of payment to the senior
notes; and
•
be effectively subordinated to all of our existing
and future secured debt (including obligations under the Credit
Facilities), to the extent of the value of the assets securing such debt,
and be structurally subordinated to all obligations of each of our
subsidiaries that is not a guarantor of the senior notes.
Similarly, the senior note guarantees will be
senior unsecured obligations of the guarantors and will:
•
rank senior in right of payment to all of the
applicable guarantor's existing and future debt and other obligations that
are, by their terms, expressly subordinated in right of payment to the
senior notes, including the applicable guarantor's guarantee under the
senior subordinated notes;
•
rank equal in right of payment to all of the
applicable guarantor's existing and future senior debt and other
obligations that are not, by their terms, expressly subordinated in right
of payment to the senior notes; and
3
•
be effectively subordinated in right of payment to
all of the applicable guarantor's existing and future secured debt
(including the applicable guarantor's guarantee under the Credit
Facilities), to the extent of the value of the assets securing such debt,
and be structurally subordinated to all obligations of any subsidiary of a
guarantor if that subsidiary is not also a guarantor of the senior
notes.
The senior subordinated notes are our unsecured
senior subordinated obligations and will:
•
be subordinated in right of payment to our existing
and future senior debt, including our Credit Facilities, the senior notes
and the 2010 Notes;
•
rank equal in right of payment to all of our
existing and future senior subordinated debt and other obligations that
are not, by the terms of the senior subordinated notes, expressly made
senior;
•
be effectively subordinated to all of our existing
and future secured debt (including obligations under our Credit
Facilities), to the extent of the value of the assets securing such debt,
and be structurally subordinated to all obligations of any subsidiaries
that do not guarantee the senior subordinated notes; and
•
rank senior in right of payment to all of our
future debt and other obligations that are, by their terms, expressly
subordinated in right of payment to the senior subordinated
notes.
Similarly, the senior subordinated note guarantees
will be unsecured senior subordinated obligations of the guarantors and
will:
•
be subordinated in right of payment to all of the
applicable guarantor's existing and future senior debt, including such
guarantor's guarantee under our Credit Facilities, the senior notes and
the 2010 Notes;
•
rank equal in right of payment to all of the
applicable guarantor's future senior subordinated debt and other
obligations that are not, by the terms of the senior subordinated notes,
expressly made senior;
•
be effectively subordinated to all of the
applicable guarantor's existing and future secured debt (including such
guarantor's guarantee under our Credit Facilities), to the extent of the
value of the assets securing such debt, and be structurally subordinated
to all obligations of any subsidiary of a guarantor if that subsidiary is
not also a guarantor of the senior subordinated notes; and
•
rank senior in right of payment to all of the
applicable guarantor's future debt and other obligations that are, by
their terms, expressly subordinated in right of payment to the guarantees
of the senior subordinated notes.
4
As of January 30, 2009, (1) the notes and
related guarantees rank effectively junior to approximately
$2,300.0 million of senior secured indebtedness and
$24.4 million of payment obligations relating to capital lease
obligations and other indebtedness, (2) the senior notes and related
guarantees rank senior to the $655.9 million of senior subordinated
notes, (3) the senior subordinated notes and related guarantees rank
junior to the senior notes and our 2010 Notes, and (4) we had an
additional $932.8 million of unutilized capacity under our senior
secured asset-based revolving credit facility.
Optional
Redemption
We may redeem some or all of the senior notes at
any time on or after July 15, 2011 and we may redeem some or all of
the senior subordinated notes at any time on or after July 15, 2012,
in each case at the redemption prices set forth in this
prospectus.
We may redeem some or all of the senior notes prior
to July 15, 2011 and some or all of the senior subordinated notes
prior to July 15, 2012, in each case at a price equal to 100% of the
principal amount of the notes redeemed plus the applicable "make-whole"
premium as described in this prospectus.
On or before July 15, 2010, we may also redeem
up to 35% of the senior notes and 35% of the senior subordinated notes, in
each case, at the redemption prices set forth in this prospectus, using
the proceeds of certain equity offerings.
Mandatory
Principal Redemption
If the senior subordinated notes would otherwise
constitute "applicable high yield discount obligations" within the meaning
of Section 163(i)(1) of the Internal Revenue Code of 1986, as amended (the
"Code"), at the end of each accrual period ending after the fifth
anniversary of the senior subordinated notes' issuance (each, an "AHYDO
redemption date"), we will be required to redeem for cash a portion of
each senior subordinated note then outstanding equal to the "Mandatory
Principal Redemption Amount" (such redemption, a "Mandatory Principal
Redemption"). The redemption price for the portion of each senior
subordinated note redeemed pursuant to a Mandatory Principal Redemption
will be 100% of the principal amount of such portion plus any accrued
interest thereon on the date of redemption. The "Mandatory Principal
Redemption Amount" means, as of each AHYDO redemption date, the excess, if
any, of (a) the aggregate amount of accrued and unpaid interest and all
accrued and unpaid "original issue discount" (as defined in Section
1273(a)(1) of the Code) with respect to the senior subordinated notes,
over (b) an amount equal to the product of (i) the "issue price" (as
defined in Sections 1273(b) and 1274(a) of the Code) of the senior
subordinated notes multiplied by (ii) the "yield to maturity" (as defined
in the Treasury Regulation Section 1.1272-1(b)(1)(i)) of the senior
subordinated notes. No partial redemption or repurchase of the senior
subordinated notes prior to any AHYDO redemption date pursuant to any
other provision of the indenture governing the senior subordinated notes
will alter the Issuer's obligation to make the Mandatory Principal
Redemption with respect to any senior subordinated notes that remain
outstanding on any AHYDO redemption date.
5
Change of
Control and Asset Sales
If we sell certain assets under certain
circumstances, or experience certain change of control events, each holder
of senior notes or senior subordinated notes, as applicable, may require
us to purchase all or a portion of its notes at the purchase prices set
forth in this prospectus, plus accrued and unpaid interest and special
interest, if any, to the purchase date. See "Description of Senior
Notes—Repurchase at the Option of Holders" and "Description of Senior
Subordinated Notes—Repurchase at the Option of Holders." Our Credit
Facilities or other agreements may restrict us from repurchasing any of
the notes, including any purchase we may be required to make as a result
of a change of control or certain asset sales. See "Risk Factors—Risks
Related to the Notes—We may not have the ability to raise the funds
necessary to finance the change of control offer required by the
indentures governing the notes."
Certain
Covenants
The indentures governing the notes restrict our
ability and the ability of our restricted subsidiaries to, among other
things:
•
incur additional indebtedness, issue disqualified
stock or issue certain preferred stock;
•
pay dividends and make certain distributions,
investments and other restricted payments;
•
create certain liens or encumbrances;
•
sell assets;
•
enter into transactions with affiliates;
•
limit the ability of restricted subsidiaries to
make payments to us;
•
merge, consolidate, sell or otherwise dispose of
all or substantially all of our assets; and
•
designate our subsidiaries as unrestricted
subsidiaries.
These covenants are subject to important exceptions
and qualifications described under the headings "Description of Senior
Notes" and "Description of Senior Subordinated Notes."
Use of
Proceeds
We will not receive any cash proceeds from the sale
of the notes in the offer. See "Use of Proceeds."
6
Summary Historical and Pro Forma Consolidated Financial and
Other Data
Set forth
below is summary historical consolidated financial and other data and summary
unaudited pro forma consolidated financial and other data of Dollar General, at
the dates and for the periods indicated. The summary historical statement of
operations data and statement of cash flows data for the period from
February 3, 2007 through July 6, 2007 (Predecessor) and the period
from March 6, 2007 through February 1, 2008 (Successor), the years ended
January 30, 2009 and February 2, 2007 and balance sheet data as of January
30, 2009 and February 1, 2008, have been derived from our historical
audited consolidated financial statements incorporated by reference herein from
our fiscal 2008 Form 10-K. The balance sheet data as of February 2, 2007 has
been derived from our historical audited consolidated financial statements not
included or incorporated by reference herein.
The summary
unaudited pro forma consolidated financial and other data for the fiscal year
ended February 1, 2008 has been prepared to give effect to the Transactions in
the manner described under "Unaudited Pro Forma Condensed Consolidated Financial
Information" and the notes thereto, incorporated by reference herein from our
fiscal 2008 Form 10-K, as if they had occurred on February 3, 2007. The pro
forma adjustments are based upon available information and certain assumptions
that we believe are reasonable. The summary unaudited pro forma consolidated
financial and other data are for informational purposes only and do not purport
to represent what our results of operations, balance sheet data or other
financial information actually would have been if the Transactions had occurred
at any date, and such data do not purport to project the results of operations
for any future period.
The summary
historical and pro forma consolidated financial and other data should be read in
conjunction with "The Transactions" appearing elsewhere in this prospectus as
well as the sections of our fiscal 2008 Form 10-K captioned "Selected
Financial Data," "Management's Discussion and Analysis of Financial Condition
and Results of Operations," "Unaudited Pro Forma Condensed Consolidated
Financial Information" and our consolidated financial statements and related
notes that are included in our fiscal 2008 Form 10-K and incorporated by
reference herein.
7
Historical
Pro Forma
Historical
Predecessor
Successor
(amounts in
millions, excluding number of stores, selling square feet, and net sales
per square foot)
Fiscal Year
Ended
February 2,
2007(1)
February 3,
2007
through
July
6,
2007(1)
March 6,
2007
through
February
1,
2008(2)
Fiscal Year
Ended
February 1,
2008
Fiscal Year
Ended
January 30,
2009
Statement of
Operations Data:
Net
sales
$
9,169.8
$
3,923.8
$
5,571.5
$
9,495.2
$
10,457.7
Cost
of goods sold
6,801.6
2,852.2
3,999.6
6,852.5
7,396.6
Gross
profit
2,368.2
1,071.6
1,571.9
2,642.8
3,061.1
Selling,
general and administrative expense
2,119.9
960.9
1,324.5
2,310.9
2,448.6
Litigation
settlement and related costs, net
-
-
-
-
32.0
Transaction
and related costs
-
101.4
1.2
1.2
-
Operating
profit
248.3
9.2
246.1
330.6
580.5
Interest
income
(7.0)
(5.0)
(3.8)
(8.8)
(3.1)
Interest
expense
34.9
10.3
252.9
436.7
391.9
Other
(income) expense
-
-
3.6
3.6
(2.8)
Income
(loss) before income taxes
220.4
4.0
(6.6)
(100.9)
194.4
Income
tax expense (benefit)
82.4
12.0
(1.8)
(42.9)
86.2
Net
income (loss)
$
137.9
$
(8.0)
$
(4.8)
$
(57.9)
$
108.2
Statement of
Cash Flows Data:
Net
cash provided by (used in):
Operating
activities
$
405.4
$
201.9
$
239.6
$
575.2
Investing
activities
(282.0)
(66.9)
(6,848.4)
(152.6)
Financing
activities
(134.7)
25.3
6,709.0
(144.8)
Total
capital expenditures
(261.5)
(56.2)
(83.6)
(205.5)
Other
Financial and Operating Data:
Same
store sales growth(3)
3.3%
2.6%
1.9%
9.0%
Same
store sales(3)
$
8,327.2
$
3,656.6
$
5,264.2
$
10,118.5
Number
of stores included in
same store sales calculation
7,627
7,655
7,735
8,153
Number
of stores (at period end)
8,229
8,205
8,194
8,362
Selling
square feet in thousands (at period end)
57,299
57,379
57,376
58,803
Net
sales per square foot(4)
$
162.6
$
163.9
$
165.4
$
179.7
Highly
consumable sales
65.7%
66.7%
66.4%
69.3%
Seasonal
sales
16.4%
15.4%
16.3%
14.6%
Home
products sales
10.0%
9.2%
9.1%
8.2%
Basic
clothing sales
7.9%
8.7%
8.2%
7.9%
Rent
expense
$
343.9
$
150.2
$
214.5
$
389.6
Balance
Sheet Data (at period end):
Cash
and cash equivalents and
short-term investments
$
219.2
$
119.8
$
378.0
Total
assets
3,040.5
8,656.4
8,889.2
Total
debt
270.0
4,282.0
4,137.1
Total
shareholders' equity
1,745.7
2,703.9
2,831.7
(1)
Includes
the effects of certain strategic merchandising and real estate initiatives that
resulted in the closing of approximately 460 stores and changes in the Company's
inventory management model which resulted in greater inventory markdowns than in
previous years.
(2)
Includes
the results of Buck Acquisition Corp. for the period prior to the merger with
and into Dollar General Corporation from March 6, 2007 (its formation)
through July 6, 2007 and the post-merger results of Dollar General
Corporation for the period from July 7, 2007 through February 1, 2008.
(3)
Same-store
sales have been calculated based upon stores that were open at least 13 full
fiscal months and remained open at the end of the reporting period. If
applicable, the Company excludes the sales in the 53rd week of a 53-week year
from the same-store sales calculation.
(4)
Net
sales per square foot was calculated based on total sales for the preceding 12
months as of the ending date of the reporting period divided by the average
selling square footage during the period, including the end of the fiscal year,
the beginning of the fiscal year, and the end of each of the Company's three
interim fiscal quarters. For the period from February 3, 2007 through July 6,
2007, average selling square footage was calculated using the average of square
footage as of July 6, 2007 and as of the end of each of the four preceding
quarters.
8
Historical
Pro
Forma
Historical
Predecessor
Successor
Fiscal Year Ended
Fiscal Year Ended
Ratios
of earnings to fixed charges(1)
January 28, 2005
February 3, 2006(2)
February 2, 2007
February 3,
2007
through
July 6,
2007
March 6,
2007
through
February 1,
2008
February 1,
2008
January 30,
2009
Actual
5.6x
5.3x
2.5x
1.1x
(3)
1.4x
Pro
forma (4)
(5)
(1)
For
purposes of computing the ratio of earnings to fixed charges, (a) earnings
consist of income (loss) before income taxes, plus fixed charges less
capitalized expenses related to indebtedness (amortization expense for
capitalized interest is not significant) and (b) fixed charges consist of
interest expense (whether expensed or capitalized), the amortization of debt
issuance costs and discounts related to indebtedness, and the interest portion
of rent expense.
(2)
The
fiscal year ended February 3, 2006 was comprised of 53 weeks.
(3)
For
the period from March 6, 2007 through February 1, 2008, fixed charges
exceeded earnings by $6.6 million.
(4)
To
give effect to the increase in interest expense resulting from the portion of
the notes proceeds used to retire the $198.3 million of our
8
5
/
8
% unsecured notes due June 10, 2010 as if such
transactions had occurred at the beginning of the period presented.
(5)
For
the fiscal year ended February 1, 2008, pro forma fixed charges exceeded
earnings by $3.4 million.
9
RISK FACTORS
You should
carefully consider the risk factors set forth below and the risk factors
incorporated herein by reference to our fiscal 2008 Form 10-K as well as
the other information contained in this prospectus before deciding whether to
invest in the notes. Any of the following risks could materially and adversely
affect our business, financial condition or results of operations. However, the
selected risks described below and the risks that are incorporated herein by
reference to our fiscal 2008 Form 10-K are not the only risks facing us.
Additional risks and uncertainties not currently known to us or those we
currently view to be immaterial may also materially and adversely affect our
business, financial condition or results of operations. In such a case, the
trading price of the notes could decline or we may not be able to make payments
of principal and interest on the notes, and you may lose all or part of your
original investment.
Risks Related to
the Notes
Your ability to transfer the
notes may be limited by the absence of an active trading market, and there is no
assurance that any active trading market for the notes exists or will
continue.
We do not
intend to apply for a listing of the notes on a securities exchange or any
automated dealer quotation system. We cannot assure you as to the liquidity of
markets that may develop for the notes, your ability to sell the notes or the
price at which you would be able to sell the notes. Certain financial
institutions have advised us that they intend to make a market in the notes as
permitted by applicable laws and regulations; however, those entities are not
obligated to make a market in any of the notes, and they may discontinue their
market-making activities at any time without notice. Therefore, an active market
for any of the notes, if developed, may not continue. Because Goldman,
Sachs & Co. and its respective affiliates may be considered
affiliates of ours, they are required to deliver a current "market-maker"
prospectus in connection with any secondary market sale of the notes, which may
affect their ability to continue market-making activities. Historically, the
market for non investment-grade debt has been subject to disruptions that have
caused substantial volatility in the prices of securities similar to the notes.
The market, if any, for any of the notes may not be free from similar
disruptions and any such disruptions may adversely affect the prices at which
you may sell your notes. In addition, the notes may trade at a discount from
your purchase price, depending upon prevailing interest rates, the market for
similar notes, our performance and other factors.
We may not be able to
generate sufficient cash to service all of our indebtedness, including the
notes, and may be forced to take other actions to satisfy our obligations under
our indebtedness, which may not be successful.
Our ability
to make scheduled payments on or to refinance our debt obligations depends on
our financial condition and operating performance, which is subject to
prevailing economic and competitive conditions and to certain financial,
business and other factors beyond our control. We may be unable to maintain a
level of cash flow from operating activities sufficient to permit us to pay the
principal, premium, if any, and interest on our indebtedness, including the
notes.
If our cash
flow and capital resources are insufficient to fund our debt service
obligations, we may be forced to reduce or delay investments and capital
expenditures, or to sell assets, seek additional capital or restructure or
refinance our indebtedness, including the notes. These alternative measures may
not be successful and may not permit us to meet our scheduled debt service
obligations. In the absence of such operating results and resources, we could
face substantial liquidity problems and might be required to dispose of material
assets or operations to meet our debt service and other obligations. Our senior
secured credit agreement and the indentures governing the notes will restrict
our ability to dispose of assets and use the proceeds from such disposition. We
may not be able to consummate those dispositions or to obtain the proceeds that
we could realize from them, and these proceeds may not be adequate to meet any
debt service obligations then due.
10
Repayment
of our debt, including each series of notes, is dependent on cash flow generated
by our subsidiaries and their ability to make distributions to us.
Our
subsidiaries own a significant portion of our assets and conduct a significant
portion of our operations. Accordingly, repayment of our indebtedness, including
each series of notes, is dependent, to a significant extent, on the generation
of cash flow by our subsidiaries and their ability to make such cash available
to us, by dividend, debt repayment or otherwise. Unless they are guarantors of
the notes, our subsidiaries do not have any obligation to pay amounts due on the
notes or to make funds available for that purpose. Our subsidiaries may not be
able to, or may not be permitted to, make distributions to enable us to make
payments in respect of our indebtedness, including the notes. Each subsidiary is
a distinct legal entity and, under certain circumstances, legal and contractual
restrictions may limit our ability to obtain cash from our subsidiaries. While
the indentures governing the notes will limit the ability of our subsidiaries to
incur consensual restrictions on their ability to pay dividends or make other
intercompany payments to us, these limitations are subject to certain
qualifications and exceptions. In the event that we do not receive distributions
from our subsidiaries, we may be unable to make required principal and interest
payments on our indebtedness, including the notes.
U.S. Holders will be required
to pay U.S. federal income tax on the senior subordinated notes whether we pay
interest on the senior subordinated notes in cash or PIK Interest.
We have the
option to pay interest on the senior subordinated notes in cash interest or PIK
Interest for any interest payment period after the initial interest payment
through July 15, 2011. For U.S. federal income tax purposes, the existence of
this option means that none of the interest payments on the senior subordinated
notes will be qualified stated interest even if we never exercise the option to
pay PIK Interest. Consequently, the senior subordinated notes will be treated as
issued with original issue discount, and U.S. holders (as defined in "Certain
U.S. Federal Income and Estate Tax Consequences") will be required to include
the original issue discount in gross income on a constant yield to maturity
basis, regardless of whether interest is paid currently in cash. See
"Description of Senior Subordinated Notes—Principal, Maturity and Interest" and
"Certain U.S. Federal Income and Estate Tax Consequences."
Claims of noteholders will be
structurally subordinated to the claims of creditors of our non-guarantor
subsidiaries.
The notes
will not be guaranteed by all of our subsidiaries. For example, our subsidiaries
that do not guarantee the Credit Facilities will not guarantee the notes.
Accordingly, claims of holders of the notes will be structurally subordinate to
the claims of creditors of these non-guarantor subsidiaries, including trade
creditors. All obligations of our non-guarantor subsidiaries will have to be
satisfied before any of the assets of such subsidiaries would be available for
distribution, upon a liquidation or otherwise, to us or a guarantor of the
notes.
Our
non-guarantor subsidiaries accounted for approximately $97.9 million of net
revenues and approximately $26.2 million of net income, in each case, for
2008 and approximately $313.3 million of total assets, and approximately
$250.5 million, of total liabilities, in each case as of January 30, 2009.
Included in these net revenues, net income, total assets and total liabilities
balances are certain intercompany balances that are eliminated in consolidation.
Your right to receive
payments on each series of notes is effectively junior to those lenders who have
a security interest in our assets.
Our
obligations under the notes and our guarantors' obligations under their
guarantees of the notes are unsecured, but our obligations under our Credit
Facilities and each guarantor's obligations under its respective guarantee of
the Credit Facilities are secured by a security interest in substantially all of
our domestic tangible and intangible assets, including the stock of most of our
wholly owned U.S. subsidiaries, and a portion of the assets and a portion of the
stock of certain of our non-U.S. subsidiaries. If we are declared bankrupt or
insolvent, or if we default under our Credit Facilities, the lenders could
declare all of the funds borrowed thereunder, together with accrued interest,
immediately due and payable. If we were unable to repay such indebtedness, the
lenders could foreclose on the pledged assets to the exclusion of holders of the
notes, even if an event of default exists under the indentures governing the
notes at such time. Furthermore, if the lenders foreclose and sell the pledged
equity
11
interests
in any subsidiary guarantor under the notes, then that guarantor will be
released from its guarantee of the notes automatically and immediately upon such
sale. In any such event, because the notes will not be secured by any of our
assets or the equity interests in subsidiary guarantors, it is possible that
there would be no assets remaining from which your claims could be satisfied or,
if any assets remained, they might be insufficient to satisfy your claims fully.
See "Description of Other Indebtedness."
As of January
30, 2009, we had $2.324 billion of senior secured indebtedness, comprised of
financing and capital lease obligations, other debt instruments and indebtedness
under our Credit Facilities, not including unused capacity of
$932.8 million under our revolving asset-based credit facility, subject to
borrowing base availability. The indentures governing the notes will permit us
and our restricted subsidiaries to incur substantial additional indebtedness in
the future, including senior secured indebtedness.
Your right to receive
payments on the senior subordinated notes will be junior to our existing and
future senior indebtedness, including borrowings under our Credit Facilities and
the senior notes.
The senior
subordinated notes and the related guarantees will be contractually subordinated
to all of our current and future senior indebtedness (other than trade
payables), including our borrowings under our Credit Facilities and the senior
notes, and all of our and the guarantors' future borrowings (other than trade
payables), except any future indebtedness that expressly provides that it ranks
equal with, or subordinated in right of payment to, the senior subordinated
notes and the related guarantees. As a result of such subordination, in the
event of the bankruptcy, liquidation or dissolution of us or any subsidiary
guarantor, our assets or the assets of the applicable subsidiary guarantor would
be available to pay obligations under the senior subordinated notes and our
other senior subordinated obligations only after all payments had been made on
our senior indebtedness or the senior indebtedness of the applicable subsidiary
guarantor. Sufficient assets may not remain after all of these payments have
been made to make any payments on the senior subordinated notes and our other
senior subordinated obligations, including payments of interest when due. In
addition, all payments on the senior subordinated notes and the related
guarantees will be blocked in the event of a payment default on senior debt and
may be blocked for up to 179 of 360 consecutive days in the event of certain
non-payment defaults on senior debt.
In the event
of a bankruptcy, liquidation or reorganization or similar proceeding relating to
us or the guarantors, holders of the senior subordinated notes will participate
with trade creditors and all other holders of our and the guarantors'
subordinated indebtedness in the assets remaining after we and the guarantors
have repaid all of our senior debt. However, because the indenture governing the
senior subordinated notes requires that amounts otherwise payable to holders of
the senior subordinated notes in a bankruptcy or similar proceeding be paid to
holders of senior debt instead, holders of the senior subordinated notes may
receive less, ratably, than holders of trade payables in any such proceeding. In
any of these cases, we and the guarantors may not have sufficient funds to pay
all of our creditors and holders of senior subordinated notes may receive less,
ratably, than the holders of our senior debt.
As of January
30, 2009, the senior subordinated notes and the related guarantees are
subordinated to $3.481 billion of senior debt, $2.324 billion of which
is secured debt, and up to $932.8 million is available for borrowing as
additional senior secured debt under our Credit Facilities, subject to borrowing
base availability.
If we default on our
obligations to pay our indebtedness, we may not be able to make payments on the
notes.
Any default
under the agreements governing our indebtedness, including a default under the
senior secured credit agreements, that is not waived by the required lenders,
and the remedies sought by the holders of such indebtedness, could prevent us
from paying principal, premium, if any, and interest on the notes and
substantially decrease the market value of the notes. If we are unable to
generate sufficient cash flow and are otherwise unable to obtain funds necessary
to meet required payments of principal, premium, if any, and interest on our
indebtedness, or if we otherwise fail to comply with the various covenants in
the instruments governing our indebtedness (including covenants in our Credit
Facilities and the indentures under which the notes were issued), we could be in
default under the terms of the agreements governing such indebtedness, including
our senior secured credit agreements and the indentures under which the notes
were issued. In the event of such default, the holders of such indebtedness
could elect to declare all the funds borrowed thereunder to be due and payable,
together with accrued and unpaid interest, the lenders under our Credit
Facilities could elect to terminate their commitments thereunder, cease making
12
further
loans and institute foreclosure proceedings against our assets, and we could be
forced into bankruptcy or liquidation. If our operating performance declines, we
may in the future need to obtain waivers from the required lenders under our
Credit Facilities to avoid being in default. If we breach our covenants under
our Credit Facilities and seek a waiver, we may not be able to obtain a waiver
from the required lenders. If this occurs, we would be in default under our
senior secured credit agreements, the lenders could exercise their rights, as
described above, and we could be forced into bankruptcy or liquidation.
We may not have the ability
to raise the funds necessary to finance the change of control offer required by
the indentures governing the notes.
Upon the
occurrence of a "change of control," as defined in the indentures governing the
notes, we must offer to buy back the notes at a price equal to 101% of the
principal amount, together with any accrued and unpaid interest, if any, to the
date of the repurchase. Our failure to purchase, or give notice of purchase of,
the senior notes or the senior subordinated notes, as applicable, would be a
default under each of the indentures governing the notes, which would also be a
default under our Credit Facilities.
If a change
of control occurs, it is possible that we may not have sufficient assets at the
time of the change of control to make the required repurchase of notes or to
satisfy all obligations under our Credit Facilities and the indentures under
which the notes were issued. In order to satisfy our obligations, we could seek
to refinance the indebtedness under our Credit Facilities and the indentures or
obtain a waiver from the lenders or you as a holder of notes. We cannot assure
you that we would be able to obtain a waiver or refinance our indebtedness on
terms acceptable to us, if at all.
The lenders under our Credit
Facilities have the discretion to release the guarantors under the senior
secured credit agreements in a variety of circumstances, which will cause those
guarantors to be released from their guarantees of the notes.
While any
obligations under our Credit Facilities remain outstanding, any guarantee of the
notes may be released without action by, or consent of, any holder of the notes
or the trustee under the indentures governing the notes, at the discretion of
lenders under our Credit Facilities, if such guarantor is no longer a guarantor
of obligations under our Credit Facilities or any other indebtedness. See
"Description of Senior Notes—Guarantees" and "Description of Senior Subordinated
Notes—Guarantees." The lenders under our Credit Facilities have the discretion
to release the guarantees under our Credit Facilities in a variety of
circumstances. You will not have a claim as a creditor against any subsidiary
that is no longer a guarantor of the notes, and the indebtedness and other
liabilities, including trade payables, whether secured or unsecured, of those
subsidiaries will effectively be senior to claims of noteholders.
Federal and state fraudulent
transfer laws may permit a court to void the guarantees, and, if that occurs,
you may not receive any payments on the notes.
Federal and
state fraudulent transfer and conveyance statutes may apply to the issuance of
the notes and the incurrence of the guarantees. Under federal bankruptcy law and
comparable provisions of state fraudulent transfer or conveyance laws, which may
vary from state to state, the notes or guarantees could be voided as a
fraudulent transfer or conveyance if (1) we or any of the guarantors, as
applicable, issued the notes or incurred the guarantees with the intent of
hindering, delaying or defrauding creditors or (2) we or any of the
guarantors, as applicable, received less than reasonably equivalent value or
fair consideration in return for either issuing the notes or incurring the
guarantees and, in the case of (2) only, one of the following is also true
at the time thereof:
•
we or any of
the guarantors, as applicable, were insolvent or rendered insolvent by reason of
the issuance of the notes or the incurrence of the guarantees;
•
the issuance
of the notes or the incurrence of the guarantees left us or any of the
guarantors, as applicable, with an unreasonably small amount of capital to carry
on the business;
13
•
we or any of
the guarantors intended to, or believed that we or such guarantor would, incur
debts beyond our or such guarantor's ability to pay as they mature; or
•
we or any of
the guarantors was a defendant in an action for money damages, or had a judgment
for money damages docketed against us or such guarantor if, in either case,
after final judgment, the judgment is unsatisfied.
If a court
were to find that the issuance of the notes or the incurrence of the guarantee
was a fraudulent transfer or conveyance, the court could void the payment
obligations under the notes or such guarantee or further subordinate the notes
or such guarantee to presently existing and future indebtedness of ours or of
the related guarantor, or require the holders of the notes to repay any amounts
received with respect to such guarantee. In the event of a finding that a
fraudulent transfer or conveyance occurred, you may not receive any repayment on
the notes. Further, the voidance of the notes could result in an event of
default with respect to our and our subsidiaries' other debt that could result
in acceleration of such debt.
As a general
matter, value is given for a transfer or an obligation if, in exchange for the
transfer or obligation, property is transferred or an antecedent debt is secured
or satisfied. A debtor will generally not be considered to have received value
in connection with a debt offering if the debtor uses the proceeds of that
offering to make a dividend payment or otherwise retire or redeem equity
securities issued by the debtor.
We cannot be
certain as to the standards a court would use to determine whether or not we or
the guarantors were solvent at the relevant time or, regardless of the standard
that a court uses, that the issuance of the guarantees would not be further
subordinated to our or any of our guarantors' other debt.
The Investors control us and
may have conflicts of interest with us or you now or in the future.
Kohlberg
Kravis Roberts & Co. L.P. ("KKR" or the "Sponsor"), GS Capital Partners VI
Fund, L.P. and affiliated funds (affiliates of Goldman, Sachs & Co.),
Citi Private Equity, Wellington Management Company, LLP, CPP Investment Board
(USRE II) Inc., and other equity co-investors (collectively, the "Investors")
indirectly own, through their investment in Buck Holdings, L.P. ("Parent"), a
substantial portion of our common stock. As a result, the Investors have control
over our decisions to enter into any corporate transaction and have the ability
to prevent any transaction that requires shareholder approval regardless of
whether noteholders believe that any such transactions are in their own best
interests. For example, the Investors could cause us to make acquisitions that
increase the amount of indebtedness that is secured or that is senior to the
notes or to sell assets, which may impair our ability to make payments under the
notes.
The Investors
are also in the business of making investments in companies and may from time to
time acquire and hold interests in businesses that compete directly or
indirectly with us. The Investors may also pursue acquisition opportunities that
may be complementary to our business and, as a result, those acquisition
opportunities may not be available to us. So long as the Investors, or other
funds controlled by or associated with the Investors, continue to indirectly own
a significant amount of our outstanding common stock, even if such amount is
less than 50%, the Investors will continue to be able to strongly influence or
effectively control our decisions.
14
STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
This
prospectus, including the information incorporated into this prospectus by
reference to our fiscal 2008 Form 10-K, contains "forward-looking
statements" within the meaning of the federal securities laws, which involve
risks and uncertainties. You can identify forward-looking statements because
they are not solely statements of historical fact or they contain words such as
"believes," "expects," "may," "will," "should," "seeks," "approximately,"
"intends," "plans," "estimates," "anticipates" or similar expressions that
concern our strategy, plans or intentions. For example, all statements we make
relating to our estimated and projected earnings, costs, expenditures, cash
flows, growth rates and financial results, our plans and objectives for future
operations, growth or initiatives, or the expected outcome or impact of pending
or threatened litigation are forward-looking statements. In addition, we,
through our senior management, from time to time make forward-looking public
statements concerning our expected future operations and performance and other
developments. All forward-looking statements are subject to risks and
uncertainties that may change at any time, and, therefore, our actual results
may differ materially from those that we expected. We derive many of our
forward-looking statements from our operating budgets and forecasts, which are
based upon many detailed assumptions. While we believe that our assumptions are
reasonable, we caution that it is very difficult to predict the impact of known
factors, and, of course, it is impossible for us to anticipate all factors that
could affect our actual results. Important factors that could cause actual
results to differ materially from our expectations ("cautionary statements") are
disclosed under "Risk Factors" in this prospectus, as well as throughout our
fiscal 2008 Form 10-K including, without limitation, cautionary statements
under the heading "Critical Accounting Policies and Estimates" contained in
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and "Risk Factors." All written and oral forward-looking statements
attributable to us, or persons acting on our behalf, are expressly qualified in
their entirety by the cautionary statements as well as other cautionary
statements that are made from time to time in our other SEC filings and public
communications. You should evaluate all forward-looking statements made in this
prospectus in the context of these risks and uncertainties.
We caution
you that the important factors referenced above may not contain all of the
material factors that are important to you. In addition, we cannot assure you
that we will realize the results or developments we expect or anticipate or,
even if substantially realized, that they will result in the consequences or
affect us or our operations in the way we expect. The forward-looking statements
included in this prospectus are made only as of the date hereof. We undertake no
obligation to publicly update or revise any forward-looking statement as a
result of new information, future events or otherwise, except as otherwise
required by law.
15
THE TRANSACTIONS
On
March 11, 2007, we entered into an Agreement and Plan of Merger (the
"Merger Agreement") with Parent and Buck Acquisition Corp. ("Buck"). Parent is
and Buck was (prior to the Merger) controlled by investment funds affiliated
with KKR. On July 6, 2007, we consummated a merger of Buck with and into
Dollar General, with Dollar General surviving the Merger as a subsidiary of
Parent. Pursuant to the Merger Agreement, the former holders of our common stock
received $22.00 per share, or approximately $6.9 billion. The Merger
consideration was funded through the use of our available cash, cash equity
contributions from the Investors, equity contributions of certain members of our
management and the debt financings discussed below. Our outstanding common stock
is now owned by Parent and certain members of management. Our common stock is no
longer registered with the Securities and Exchange Commission ("SEC") and is no
longer traded on a national securities exchange.
The following
transactions occurred in conjunction with the Merger:
•
We entered
into a credit agreement and related security and other agreements consisting of
a $2.3 billion senior secured term loan facility, which matures on
July 6, 2014.
•
We entered
into a credit agreement and related security and other agreements consisting of
a senior secured asset-based revolving credit facility of up to
$1.125 billion (of which $432.3 million was drawn at closing and
$132.3 million was paid down on the same day), subject to borrowing base
availability, which matures July 6, 2013. As of January 30, 2009, we had no
borrowings, $51.0 million of commercial letters of credit, and
$83.7 million of standby letters of credit outstanding under the
asset-based revolving credit facility.
•
We
terminated the revolving loans and paid in full all interest and all other
amounts due in connection with such termination under the pre-Merger senior
credit facility. We also terminated commercial letters of credit totaling
approximately $141.2 million and standby letters of credit totaling
approximately $40.7 million and replaced those letters of credit with new
letters of credit under the asset-based revolving credit facility.
•
We issued
$1.175 billion aggregate principal amount of 10.625% senior notes due 2015,
which mature on July 15, 2015, and $725 million aggregate principal
amount of 11.875%/12.625% senior subordinated toggle notes due 2017, which
mature on July 15, 2017 (of which $69.1 million has been repurchased
by the Issuer and cancelled subsequent to the Merger).
•
We completed
a cash tender offer (the "Tender Offer") for our outstanding 8 5/8% Notes
due June 2010 (the "2010 Notes"). Approximately 99% of the 2010 Notes were
validly tendered and accepted for payment in that tender offer. We also executed
a supplemental indenture governing the 2010 Notes that were not tendered in the
Tender Offer which eliminated substantially all of the restrictive covenants
contained in the indenture pursuant to which the 2010 Notes were issued.
•
We entered
into a monitoring agreement and an indemnity agreement with certain of the
Investors pursuant to which we paid to those entities an aggregate initial
annual management fee of $5 million, which amount will increase by 5%
annually, along with reimbursement of out-of-pocket expenses incurred in
connection with the provision of services under the agreement. We also paid
those entities other fees in connection with certain services provided in
connection with the Merger and related transactions. Those entities are also
entitled to receive a fee equal to 1% of the gross transaction value in
connection with certain subsequent financing, acquisition, disposition, and
change in control transactions, as well as a termination fee in the event of an
initial public offering or under certain other circumstances. Pursuant to the
terms of the indemnity agreement, we have agreed to customary exculpation and
indemnification provisions in favor of these entities and their affiliates.
•
We entered
into agreements with certain members of management (the "Senior Management
Participants") pursuant to which they invested in Dollar General, as the
surviving corporation in the Merger, through a cash investment, a rollover of
employee stock options or a combination thereof. In
16
addition,
we offered other employees (the "Other Management Participants," together with
the Senior Management Participants, the "Management Participants"), a similar
investment opportunity to participate in our common equity.
•
We entered
into stockholder agreements with certain members of management that, among other
things, contain agreements among the parties with respect to restrictions on the
transfer of the shares, including tag-along rights, drag-along rights,
registration rights (including customary indemnification provisions) and call
options and put options.
The offering
of the notes, the initial borrowings under our Credit Facilities, the equity
investment by the Investors in Parent, the equity investment in Dollar General
by the Management Participants, the Merger, the Tender Offer, the replacement of
certain credit facilities and of certain letters of credit, the payment of
related fees and expenses and other related transactions are collectively
referred to in this prospectus as the "Transactions."
The sources
and uses of the funds for the Transactions are shown in the table below.
Amount
Amount
(Dollars in
millions)
(Dollars
in
millions)
Sources
of Funds:
Uses of Funds:
Credit
Facilities:
Purchase price
$
7,024.9
Revolving
asset-based credit
facility(1)
$
432.3
Rollover equity(5)
3.2
Term loan
facility(2)
2,300.0
Refinance existing
indebtedness(6)
215.6
Senior
notes, net of discount
1,151.8
Other retained
indebtedness(3)
66.7
Senior
subordinated notes
725.0
Fees and expenses(7)
287.0
Other
retained indebtedness(3)
66.7
Equity
contribution(4)
2,767.0
Rollover
equity(5)
3.2
Excess
cash on hand
151.4
Total
Sources
$
7,597.4
Total
Uses
$
7,597.4
_______________________
(1)
Upon
the closing of the Merger, we entered into a $1.125 billion senior secured
asset-based revolving credit facility with a six-year maturity, of which
$350.0 million is available for letters of credit, subject to borrowing
base limitations. This facility consists of Tranche A Loans and Tranche A-1
Loans. All loans under the facility shall be made as Tranche A-1 Loans until
such time as all commitments under the Tranche A-1 Loans have been funded or
there is no further availability under the Tranche A-1 Loans, at which point
loans under the facility shall be made as Tranche A Loans. Any payments made on
the principal amount of the loans outstanding will first be applied to all the
Tranche A Loans outstanding before any amount will be applied to the Tranche A-1
Loans. As of January 30, 2009, we had no borrowings, $51.0 million of
commercial letters of credit, and $83.7 million of standby letters of
credit outstanding under our senior secured asset-based revolving credit
facility. See "Description of Other Indebtedness."
(2)
Upon
the closing of the Merger, we entered into a $2.3 billion senior secured
term loan facility with a seven-year maturity, the full amount of which was
borrowed on the closing date. This facility consists of two tranches, one of
which is a "first-loss" tranche, which, in certain circumstances, will be
subordinated in right of payment to the other tranche. See "Description of Other
Indebtedness."
(3)
Consists
of certain financing and capital lease obligations and other debt instruments.
See "Capitalization."
(4)
Represents
the cash equity investment of approximately $2.767 billion made in Parent
and Parent's general partner by the Investors.
(5)
Represents
approximately $3.2 million invested directly in Dollar General by the
Senior Management Participants, in the form of a rollover of their existing
equity interests in Dollar General to equity interests in Dollar General
following the Merger or through cash investments in Dollar General. In addition,
at various
17
times
following the Merger we offered certain other employees a similar opportunity to
participate in our common equity.
(6)
We
repurchased $198.3 million in aggregate principal amount of the 2010 Notes
at the closing of the Tender Offer substantially concurrently with the closing
of the Merger. 2010 Notes not repurchased pursuant to the Tender Offer remained
outstanding. As of January 30, 2009, approximately $1.8 million in aggregate
principal amount of the 2010 Notes remained outstanding.  Includes expenses
and a premium (a portion of which includes a consent payment) of
$17.3 million.
(7)
Reflects
our fees, expenses and other costs associated with the Transactions. Such fees
and expenses include placement and other financing fees, advisory fees,
transaction fees paid to affiliates of certain of the Investors, and other
transaction costs and professional fees. See note 11 to the Consolidated
Financial Statements included in the fiscal 2008 Form 10-K.
18
OWNERSHIP AND CORPORATE STRUCTURE
The diagram
below sets forth our corporate structure immediately following consummation of
the Transactions. All of our issued and outstanding capital stock is held by
Parent and the Management Participants. Parent is managed by its general
partner, Buck Holdings, LLC, a Delaware limited liability company, which is
currently controlled by investment funds affiliated with the Sponsor.
Immediately following consummation of the Transactions, the Investors owned
approximately 96.5% of the issued and outstanding common stock of Dollar General
through their investment in Parent (with certain co-investors holding limited
partnership interests in Parent and certain co-investors and the Sponsor holding
a general partnership interest in Parent through their control of Buck Holdings,
LLC) and the remaining approximately 3.5% was held directly by the Senior
Management Participants, in each case on a fully diluted basis. See "The
Transactions." As of March 17, 2009, the Investors owned approximately 95.7% of
the outstanding common stock of Dollar General through their investment in
Parent and the remaining approximately 4.3% was held directly by the Management
Participants, in each case on a fully diluted basis. This structure was achieved
through a series of equity contributions that occurred in connection with the
Merger and thereafter. Parent, Buck Holdings, LLC and Buck were formed for the
purpose of consummating the Transactions. We continue to own substantially the
same operating assets.
(1)
Represents
the cash equity investments of approximately $2.767 billion made in Parent by
the Investors.
(2)
Represents
approximately $10.4 million invested directly in Dollar General by the
Senior Management Participants, either in the form of a rollover of their
existing equity interests in Dollar General to equity interests in Dollar
General following the Merger, the exchange of their stock options outstanding
prior to the Merger for vested options to purchase shares of common stock (the
"Rollover Options"), or through cash investments in Dollar General. As of March
17, 2009, the Management Participants had invested in Dollar General
approximately $13.9 million either in the form of the rollover of equity
interests that existed prior to the Transactions, referenced immediately above,
or through cash investments in Dollar General.
(3)
In connection
with the Merger, we entered into (i) a $1.125 billion senior secured
asset-based revolving credit facility with a six-year maturity; and (ii) a
$2.3 billion senior secured term loan facility with a seven-year maturity,
$2.3 billion of which was borrowed on the closing date. As of January 30,
2009, we had no borrowings, $51.0 million of commercial letters of credit,
and $83.7 million of standby letters of credit outstanding under our senior
secured asset-based revolving credit facility and $2.3 billion of
borrowings outstanding under our senior secured term loan facility.
19
USE OF PROCEEDS
This
prospectus is delivered in connection with the sale of notes by Goldman, Sachs
& Co. and its affiliates in market-making transactions. We will not receive
any of the proceeds from such transactions.
20
CAPITALIZATION
The following
table sets forth our capitalization as of January 30, 2009. The information in
this table should be read in conjunction with "The Transactions" included
elsewhere in this prospectus and in conjunction with the "Selected Financial
Data," "Management's Discussion and Analysis of Financial Condition and Results
of Operations" and "Unaudited Pro Forma Condensed Consolidated Financial
Information" sections of, and our financial statements included in, our fiscal
2008 Form 10-K and incorporated herein by reference.
January 30, 2009
(in millions)
Cash
and cash equivalents
$
378.0
Debt:
Credit
Facilities:
Revolving
asset-based credit facility(1)
$
0.0
Term loan
facility(2)
2,300.0
Senior
notes, net of discount
1,155.0
Senior
subordinated notes(3)
655.9
Tax
increment financing due February 2035
14.5
Capital
lease obligations and other
11.8
Total
debt
4,137.1
Equity
2,831.7
Total
capitalization
$
6,968.8
(1)
Upon the
closing of the Merger, we entered into a $1.125 billion senior secured
asset-based revolving credit facility with a six-year maturity, of which
$350.0 million is available for letters of credit, subject to borrowing
base limitations. This facility consists of Tranche A Loans and
Tranche A-1 Loans. All loans under the facility shall be made as
Tranche A-1 Loans until such time as all commitments under the
Tranche A-1 Loans have been funded or there is no further availability
under the Tranche A-1 Loans, at which point loans under the facility shall
be made as Tranche A Loans. Any payments made on the principal amount of
the loans outstanding will first be applied to all the Tranche A Loans
outstanding before any amount will be applied to the Tranche A-1 Loans. As
of January 30, 2009, we had no borrowings, $51.0 million of commercial
letters of credit, and $83.7 million of standby letters of credit
outstanding under our senior secured asset-based revolving credit facility. See
"Description of Other Indebtedness."
(2)
Upon the
closing of the Merger, we entered into a $2.3 billion senior secured term
loan facility with a seven-year maturity, the full amount of which was borrowed
on the closing date. This facility consists of two tranches, one of which is a
"first-loss" tranche, which, in certain circumstances, will be subordinated in
right of payment to the other tranche thereof. See "Description of Other
Indebtedness."
(3)
Subsequent to
the Merger, we repurchased and cancelled $69.1 million of the senior
subordinated notes.
21
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the
ratio of our earnings to our fixed charges for the periods indicated.
Historical
Pro
Forma
Historical
Predecessor
Successor
Fiscal Year Ended
Fiscal Year Ended
Ratios
of earnings to fixed charges(1)
January 28, 2005
February 3, 2006(2)
February 2, 2007
February 3,
2007
through
July 6,
2007
March 6,
2007
through
February 1,
2008
February 1,
2008
January 30,
2009
Actual
5.6x
5.3x
2.5x
1.1x
(3)
1.4x
Pro
forma (4)
(5)
(1)
For purposes
of computing the ratio of earnings to fixed charges, (a) earnings consist
of income (loss) before income taxes, plus fixed charges less capitalized
expenses related to indebtedness (amortization expense for capitalized interest
is not significant) and (b) fixed charges consist of interest expense
(whether expensed or capitalized), the amortization of debt issuance costs and
discounts related to indebtedness, and the interest portion of rent expense.
(2)
The fiscal year
ended February 3, 2006 was comprised of 53 weeks.
(3)
For the period from
March 6, 2007 through February 1, 2008, fixed charges exceeded earnings by
$6.6 million.
(4)
To give effect to
the increase in interest expense resulting from the portion of the notes
proceeds used to retire the $198.3 million of our
8
5
/
8
% unsecured notes due June 10, 2010 as if such
transactions had occurred at the beginning of the period presented.
(5)
For the fiscal year
ended February 1, 2008, pro forma fixed charges exceeded earnings by
$3.4 million.
22
DESCRIPTION OF OTHER INDEBTEDNESS
Senior Secured Credit
Facilities
Overview
In connection
with the Transactions, we entered into two senior secured credit agreements,
each with Goldman Sachs Credit Partners L.P., Citigroup Global Markets, Inc.,
Lehman Brothers Inc. and Wachovia Capital Markets, LLC, each as joint lead
arranger and joint bookrunner. The CIT Group/Business Credit, Inc. is
administrative agent under the senior secured credit agreement for the
asset-based revolving credit facility and Citicorp North America, Inc. is
administrative agent under the senior secured credit agreement for the term loan
facility. We refer to these new facilities as the "Credit Facilities."
The Credit
Facilities provided senior secured financing of $3.425 billion, consisting
of:
•
$2.3 billion
in a senior secured term loan facility; and
•
a senior
secured asset-based revolving credit facility of up to $1.125 billion (of
which up to $350.0 million is available for letters of credit), subject to
borrowing base availability.
The term loan
facility consists of two tranches, one of which is a "first-loss" tranche,
which, in certain circumstances, will be subordinated in right of payment to the
other tranche of the term loan facility.
We are the
borrower under the term loan credit facility and the primary borrower under the
asset-based credit facility. In addition, certain subsidiaries of ours are
designated as borrowers under the asset-based credit facility. The asset-based
revolving credit facility includes borrowing capacity available for letters of
credit and for short-term borrowings referred to as swingline loans.
The Credit
Facilities provide that we have the right at any time to request up to
$325.0 million of incremental commitments under one or more incremental
term loan facilities and/or asset-based revolving credit facilities. The lenders
under these facilities are not under any obligation to provide any such
incremental commitments and any such addition of or increase in commitments will
be subject to our not exceeding certain senior secured leverage ratios and
certain other customary conditions precedent. Our ability to obtain extensions
of credit under these incremental commitments will also be subject to the same
conditions as extensions of credit under the Credit Facilities.
The amount
from time to time available under the senior secured asset-based revolving
credit facility (including in respect of letters of credit) shall not exceed the
sum of the tranche A borrowing base and the tranche A-1 borrowing
base. The tranche A borrowing base equals the sum of (i) 85% of the
net orderly liquidation value of all eligible inventory of ours and each
co-borrower and each guarantor thereunder and (ii) 90% of all accounts
receivable and credit/debit card receivables of ours and each co-borrower and
each guarantor thereunder, in each case, subject to a reserve equal to the
principal amount of the 2010 Notes that remain outstanding at any time and other
customary reserves and eligibility criteria. The tranche A-1 borrowing base
equals 10% to 12% of the net orderly liquidation value of all eligible inventory
of ours and each co-borrower and each guarantor under the asset-based revolving
credit facility. All loans under the asset-based revolving credit facility shall
be made as tranche A-1 loans until such time as all tranche A-1
commitments have been funded or there is no further availability under the
tranche A-1 borrowing base, at which point loans under the asset-based
revolving credit facility shall be made as tranche A loans. Any payments
made on the principal amount of the loans outstanding under the asset-based
revolving credit facility will first be applied to all the tranche A loans
outstanding before any amount will be applied to the tranche A-1 loans
outstanding.
Interest
Rate and Fees
Borrowings
under the Credit Facilities bear interest at a rate equal to an applicable
margin plus, at our option, either (a) LIBOR or (b) a base rate (which
is usually equal to the prime rate). The applicable margin for
23
borrowings
is (i) under the term loan facility, 2.75% with respect to LIBOR borrowings
and 1.75% with respect to base-rate borrowings and (ii) as of January 30,
2009 under the asset-based revolving credit facility (except in the last out
tranche described above), 1.25% with respect to LIBOR borrowings and 0.25% with
respect to base-rate borrowings and for any last out borrowings, 2.25% with
respect to LIBOR borrowings and 1.25% with respect to base-rate borrowings. The
applicable margins for borrowings under the asset-based revolving credit
facility (except in the case of last out borrowings) are subject to adjustment
each quarter based on average daily excess availability under the asset-based
revolving credit facility.
In addition
to paying interest on outstanding principal under the Credit Facilities, we are
required to pay a commitment fee to the lenders under the asset-based revolving
credit facility in respect of the unutilized commitments thereunder. At January
30, 2009, the commitment fee rate was 0.375% per annum. The commitment fee rate
will be reduced (except with regard to the last out tranche) to 0.25% per annum
at any time the unutilized commitments under the asset-based credit facility are
equal to or less than 50% of the aggregate commitments under the asset-based
revolving credit facility. We must also pay customary letter of credit fees.
Prepayments
The senior
secured credit agreement for the term loan facility requires us to prepay
outstanding term loans, subject to certain exceptions, with:
•
50% of our
annual excess cash flow (as defined in the credit agreement) which will be
reduced to 25% and 0% if we achieve and maintain a total net leverage ratio of
6.0 to 1.0 and 5.0 to 1.0, respectively;
•
100% of the
net cash proceeds of all non-ordinary course asset sales or other dispositions
of property in excess of $25 million in the aggregate and subject to our
right to reinvest the proceeds; and
•
100% of the
net cash proceeds of any incurrence of debt, other than proceeds from debt
permitted under the senior secured credit agreement for the term loan
facility.
The foregoing
mandatory prepayments will be applied to the term loan facility as directed by
the senior secured credit agreement for the term loan facility. Through January
30, 2009, no prepayments have been required under the prepayment provisions
listed above.
In addition,
the senior secured credit agreement for the asset-based revolving credit
facility requires us to prepay the asset-based revolving credit facility,
subject to certain exceptions, with:
•
100% of the
net cash proceeds of all non-ordinary course asset sales or other dispositions
of revolving facility collateral (as defined below) in excess of $1 million
in the aggregate and subject to our right to reinvest the proceeds; and
•
to the
extent such extensions of credit exceed the then current borrowing bases (as
defined in the senior secured credit agreement for the asset-based revolving
credit facility).
We may be
obligated to pay a prepayment premium on the amount repaid under the term loan
facility if the term loans are voluntarily repaid in whole or in part before
July 6, 2009. We may voluntarily repay outstanding loans under the
asset-based revolving credit facility at any time without premium or penalty,
other than customary "breakage" costs with respect to LIBOR loans.
If a change
of control as defined in the senior secured credit agreements governing our
Credit Facilities occurs, this will cause an event of default under the senior
secured credit agreements. Upon an event of default, indebtedness under the
Credit Facilities may be accelerated, in which case we will be required to repay
all outstanding loans plus accrued and unpaid interest and all other amounts
outstanding under the Credit Facilities.
24
Letters
of Credit
$350.0 million
of our asset-based revolving credit facility is available for letters of
credit.
Amortization
Beginning
September 30, 2009, we are required to repay installments on the loans
under the term loan credit facility in equal quarterly principal amounts in an
aggregate amount per annum equal to 1% of the total funded principal amount at
July 6, 2007, with the balance payable on July 6, 2014. There is no
amortization under the asset-based revolving credit facility. The entire
principal amounts (if any) outstanding under the asset-based revolving credit
facility are due and payable in full at maturity, on July 6, 2013, on which
day the commitments thereunder will terminate.
Guarantee
and Security
All
obligations under the Credit Facilities are unconditionally guaranteed by
substantially all of our existing and future domestic subsidiaries (excluding
certain immaterial subsidiaries and certain subsidiaries designated by us under
our senior secured credit agreements as "unrestricted subsidiaries"), referred
to, collectively, as U.S. Guarantors.
All
obligations under the asset-based revolving credit facility, and the guarantees
of those obligations, are secured by all existing and after-acquired inventory,
accounts receivable, and other assets arising from such inventory and accounts
receivable, of ours and each U.S. Guarantor (the "Revolving Facility
Collateral"), subject to certain exceptions.
All
obligations under the term loan facility and the guarantees of those obligations
are secured by:
•
a
second-priority security interest in the Revolving Facility Collateral;
•
a first
priority security interest in, and mortgages on, substantially all of the
tangible and intangible assets of ours and each U.S. Guarantor (other than the
Revolving Facility Collateral); and
•
a
first-priority pledge of 100% of the capital stock held by us or any of our
domestic subsidiaries that are directly owned by us or one of the U.S.
Guarantors and 65% of the voting capital stock of each of our existing and
future foreign subsidiaries that are directly owned by us or one of the U.S.
Guarantors.
Certain
Covenants and Events of Default
The senior
secured credit agreements contain a number of covenants that, among other
things, restrict, subject to certain exceptions, our ability to:
•
incur
additional indebtedness;
•
sell
assets;
•
pay
dividends and distributions or repurchase our capital stock;
•
make
investments or acquisitions;
•
repay or
repurchase subordinated indebtedness (including the senior subordinated notes)
or the senior notes;
25
•
amend
material agreements governing our subordinated indebtedness (including the
senior subordinated notes) or the senior notes; and
•
change our
lines of business.
The senior
secured credit agreements also contain certain customary affirmative covenants
and events of default.
At January
30, 2009, we had no borrowings, $51.0 million of commercial letters of
credit, and $83.7 million of standby letters of credit outstanding under
our asset-based revolving credit facility.
2010 Notes and Other
Indebtedness
On
July 6, 2007, immediately after the completion of the Merger, we completed
a cash tender offer to purchase any and all of our $200 million principal
amount of the 2010 Notes. Approximately 99% of the 2010 Notes were validly
tendered and accepted for payment. The tender offer included a consent payment
equal to 3% of the par value of the 2010 Notes, and such payments along with
associated settlement costs totaling $6.2 million were paid and reflected
as a loss on debt retirement in the 2007 periods presented. Additionally,
because we received the requisite consents to the proposed amendments to the
indenture pursuant to which the 2010 Notes were issued, a supplemental indenture
to effect such amendments was executed and delivered. The amendments, which
eliminated substantially all of the restrictive covenants contained in the
indenture, became operative upon the purchase of the tendered 2010 Notes.
As of January
30, 2009, we had other indebtedness comprised of capital lease obligations of
$9.9 million and a tax increment financing for our distribution center in
Marion, Indiana of $14.5 million.
26
DESCRIPTION OF SENIOR NOTES
General
Certain terms
used in this description are defined under the subheading "Certain
Definitions."
Buck
Acquisition Corp. issued $1,175,000,000 aggregate principal amount of 10.625%
senior notes due 2015 (the "
Senior Notes
") under an indenture dated
July 6, 2007 (the "
Senior Indenture
") among Buck Acquisition Corp.,
the Guarantors and U.S. Bank National Association (the successor trustee), as
trustee (the "Successor Trustee"). Immediately following the closing of the
offering and as part of the Transactions, Buck Acquisition Corp. merged with and
into Dollar General Corporation, with Dollar General Corporation continuing as
the surviving corporation and assuming all the obligations of Buck Acquisition
Corp. under the Senior Indenture. In this description, the terms "
we
,"
"
our
," "
us
," "
the Issuer
" and "
the Company
" refer to
Buck Acquisition Corp. prior to the merger described above and to Dollar General
Corporation as the surviving corporation in the merger, together with its
consolidated Subsidiaries (except that "the Issuer" does not include
consolidated subsidiaries).
Effective
February 25, 2009 (the "Effective Date"), Wells Fargo Bank, National Association
(the "Prior Trustee") resigned as trustee under the Senior Indenture.  The
Company entered into an Instrument of Resignation, Appointment and Acceptance
(the "Instrument of Resignation"), effective as of the Effective Date, with the
Prior Trustee and the Successor Trustee.  The instrument of Resignation
provides that, effective as of the Effective Date, (1) the Prior Trustee
assigns, transfers, delivers and confirms to the Successor Trustee all of its
rights, title, interest under the Senior Indenture and all of its rights, title,
interests, capacities, privileges, duties and responsibilities as Trustee under
the Senior Indenture; (2) the Company accepts the resignation of the Prior
Trustee as Trustee under the Senior Indenture and appoints the Successor Trustee
as Trustee under the Senior Indenture; and (3) the Successor Trustee accepts its
appointment as successor Trustee, and shall be vested with all of the rights,
title, interests, capacities, privileges, duties and responsibilities of the
Trustee, under the Senior Indenture. Nothing contained in the Instrument of
Resignation shall in any way affect the Company's obligations to the Prior
Trustee under Section 7.07 of the Senior Indenture or any lien created
thereunder. In this description, the term "Trustee" refers to the Prior Trustee
during the period prior to the Effective Date and to the Successor Trustee for
the period commencing on the Effective Date.
The following
description is only a summary of the material provisions of the Senior
Indenture, does not purport to be complete and is qualified in its entirety by
reference to the provisions of that agreement, including the definitions therein
of certain terms used below. We urge you to read the Senior Indenture because
it, and not this description, will define your rights as Holders. You may
request copies of the Senior Indenture at our address set forth under the
heading "Summary."
Brief Description of the
Senior Notes
The Senior
Notes:
•
are general
unsecured senior obligations of the Issuer;
•
are
pari
passu
in right of payment with all existing and future unsecured Senior
Indebtedness of the Issuer;
•
are
effectively subordinated to all Secured Indebtedness of the Issuer, including
Indebtedness under the Issuer's new Senior Credit Facilities, to the extent of
the collateral securing such Indebtedness;
•
are senior
in right of payment to all existing and future Subordinated Indebtedness of the
Issuer, including the Senior Subordinated Notes;
•
are
structurally subordinated to any existing and future indebtedness and
liabilities of non-guarantor Subsidiaries, including the Issuer's Foreign
Subsidiaries and any Unrestricted Subsidiaries;
27
•
are
initially unconditionally guaranteed on a joint and several and senior basis by
each Restricted Subsidiary that guarantees the General Credit Facility; and
•
are subject
to registration with the SEC pursuant to the Registration Rights Agreement.
Guarantees
The
Guarantors, as primary obligors and not merely as sureties, initially jointly
and severally fully and unconditionally guarantee, on a senior basis, the
performance and full and punctual payment when due, whether at maturity, by
acceleration or otherwise, of all obligations of the Issuer under the Senior
Indenture and the Senior Notes, whether for payment of principal of, premium, if
any, or interest or Special Interest in respect of the Senior Notes, expenses,
indemnification or otherwise, on the terms set forth in the Senior Indenture by
executing the Senior Indenture.
The
Restricted Subsidiaries which guarantee the General Credit Facility initially
guaranteed the Senior Notes. Each Guarantee is a general unsecured senior
obligation of the applicable Guarantor, ranks
pari passu
in right of
payment with all existing and any future Senior Indebtedness of such Guarantor,
is effectively subordinated to all Secured Indebtedness of such Guarantor to the
extent of the value of the collateral securing such Indebtedness, and is senior
in right of payment to all existing and any future Subordinated Indebtedness of
such Guarantor (including the Senior Subordinated Notes). The Senior Notes will
be structurally subordinated to Indebtedness and other liabilities of
Subsidiaries of the Issuer that do not guarantee the Senior Notes.
Not all of
the Issuer's Subsidiaries guarantee the Senior Notes. In the event of a
bankruptcy, liquidation or reorganization of any of these non-Guarantor
Subsidiaries, the non-Guarantor Subsidiaries will pay the holders of their debt
and their trade creditors before they will be able to distribute any of their
assets to the Issuer. None of the Issuer's Subsidiaries which are Foreign
Subsidiaries, non-Wholly Owned Subsidiaries or any Receivables Subsidiaries will
guarantee the Senior Credit Facilities, the Senior Notes or the Senior
Subordinated Notes. Our non-Guarantor Subsidiaries accounted for approximately
$97.9 million of net revenues and approximately $26.2 million of net
income, in each case, for 2008 and approximately $313.3 million of total
assets, and approximately $250.5 million of total liabilities, in each case
as of January 30, 2009.
The
obligations of each Guarantor under its Guarantee is limited as necessary to
prevent the Guarantee from constituting a fraudulent conveyance under applicable
law.
Any entity
that makes a payment under its Guarantee will be entitled upon payment in full
of all guaranteed obligations under the Senior Indenture to a contribution from
each other Guarantor in an amount equal to such other Guarantor's pro rata
portion of such payment based on the respective net assets of all the Guarantors
at the time of such payment determined in accordance with GAAP.
If a
Guarantee were rendered voidable, it could be subordinated by a court to all
other indebtedness (including guarantees and other contingent liabilities) of
the Guarantor, and, depending on the amount of such indebtedness, a Guarantor's
liability on its Guarantee could be reduced to zero. See "Risk Factors—Risks
Related to the Notes—Federal and state fraudulent transfer laws may permit a
court to void the guarantees, and, if that occurs, you may not receive any
payments on the notes."
Each
Guarantee by a Guarantor will provide by its terms that it will be automatically
and unconditionally released and discharged upon:
(1)
(a)
any sale,
exchange or transfer (by merger or otherwise) of the Capital Stock of such
Guarantor, after which the applicable Guarantor is no longer a Restricted
Subsidiary of all or substantially all the assets of such Guarantor, which sale,
exchange or transfer is made in compliance with the applicable provisions of the
Senior Indenture;
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(b)
the release
or discharge of the guarantee by such Guarantor of the Senior Credit Facilities
or such other guarantee that resulted in the creation of such guarantee, except
a discharge or release by or as a result of payment under such guarantee;
(c)
the
designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted
Subsidiary in compliance with the applicable provisions of the Senior Indenture;
or
(d)
the
exercise by the Issuer of its legal defeasance option or covenant defeasance
option as described under "Legal Defeasance and Covenant Defeasance" or the
discharge of the Issuer's obligations under the Senior Indenture in accordance
with the terms of the Senior Indenture; and
(2)
such
Guarantor delivering to the Trustee an Officer's Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for in the Senior
Indenture relating to such transaction have been complied with.
Paying Agent and Registrar
for the Senior Notes
The Issuer
maintains one or more paying agents and a registrar for the Senior Notes with
offices in the Borough of Manhattan, City of New York. As of the date of this
prospectus, the paying agent and the registrar for the Senior Notes is the
Trustee.
The registrar
will maintain a register reflecting ownership of the Senior Notes outstanding
from time to time and will make payments on and facilitate transfer of Senior
Notes on behalf of the Issuer.
The Issuer
may change the paying agents or the registrars without prior notice to the
Holders. The Issuer or any of its Subsidiaries may act as a paying agent or
registrar.
Transfer and Exchange
A Holder may
transfer or exchange Senior Notes in accordance with the Senior Indenture. The
registrar and the Trustee may require a Holder to furnish appropriate
endorsements and transfer documents in connection with a transfer of Senior
Notes. Holders will be required to pay all taxes due on transfer. The Issuer
will not be required to transfer or exchange any Senior Note selected for
redemption. Also, the Issuer will not be required to transfer or exchange any
Senior Note for a period of 15 days before a selection of Senior Notes to
be redeemed.
Principal, Maturity and
Interest
The Issuer
issued $1,175,000,000 in aggregate principal amount of Senior Notes. The Senior
Notes will mature on July 15, 2015. Subject to compliance with the covenant
described below under the caption "Certain Covenants—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock," the Issuer
may issue additional Senior Notes under the Senior Indenture (any such Senior
Notes, "
Additional Senior Notes
"). The Senior Notes, and any Additional
Senior Notes subsequently issued under the Senior Indenture, will be treated as
a single class for all purposes under the Senior Indenture, including waivers,
amendments, redemptions and offers to purchase. Unless the context requires
otherwise, references to "Senior Notes" for all purposes of the Senior Indenture
and this "Description of Senior Notes" include any Additional Senior Notes that
are actually issued.
Interest on
the Senior Notes accrues at the rate of 10.625% per annum and is payable
semi-annually in arrears on January 15 and July 15, commencing on
January 15, 2008, to the Holders of record on the immediately preceding
January 1 and July 1. Interest on the Senior Notes accrues from the
most recent date to which interest has been paid or, if no interest has been
paid, from and including the Issue Date. Interest on the Senior Notes is
computed on the basis of a 360-day year comprised of twelve 30-day months.
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Special
Interest
Special
Interest may accrue on the Senior Notes in certain circumstances pursuant to the
Registration Rights Agreement. Any Special Interest on the Senior Notes will be
payable in the same form elected by the Issuer for payment of interest for the
applicable interest payment period. All references in the Senior Indenture, in
any context, to any interest or other amount payable on or with respect to the
Senior Notes shall be deemed to include any Special Interest pursuant to the
Registration Rights Agreement. Principal of, premium, if any, and interest on
the Senior Notes will be payable at the office or agency of the Issuer
maintained for such purpose within the City and State of New York or, at the
option of the Issuer, payment of interest may be made by check mailed to the
Holders of the Senior Notes at their respective addresses set forth in the
register of Holders;
provided
that all payments of principal, premium, if
any, and interest with respect to the Senior Notes represented by one or more
global notes registered in the name of or held by the Depository Trust Company
("DTC") or its nominee will be made by wire transfer of immediately available
funds to the accounts specified by the Holder or Holders thereof. Until
otherwise designated by the Issuer, the Issuer's office or agency in New York
will be the office of the Trustee maintained for such purpose.
Mandatory Redemption; Offers
to Purchase; Open Market Purchases
The Issuer
will not be required to make any mandatory redemption or sinking fund payments
with respect to the Senior Notes. However, under certain circumstances, the
Issuer may be required to offer to purchase Senior Notes as described under the
caption "Repurchase at the Option of Holders." The Issuer may from time to time
acquire any Senior Notes by means other than a redemption, whether by tender
offer, in open market purchases, through negotiated transactions or
otherwise.
Optional Redemption
Except as set
forth below, the Issuer will not be entitled to redeem Senior Notes at its
option prior to July 15, 2011.
At any time
prior to July 15, 2011, the Issuer may redeem all or a part of the Senior
Notes, upon not less than 30 nor more than 60 days' prior notice mailed by
first-class mail to the registered address of each Holder or otherwise in
accordance with the procedures of DTC, at a redemption price equal to 100% of
the principal amount of the Senior Notes redeemed plus the Applicable Premium as
of, and accrued and unpaid interest and Special Interest, if any, to the date of
redemption (the "
Redemption Date
"), subject to the rights of Holders on
the relevant record date to receive interest due on the relevant interest
payment date.
On and after
July 15, 2011, the Issuer may redeem the Senior Notes, in whole or in part,
upon not less than 30 nor more than 60 days' prior notice mailed by
first-class mail to the registered address of each Holder or otherwise in
accordance with the procedures of DTC, at the redemption prices (expressed as
percentages of principal amount of the Senior Notes to be redeemed) set forth
below, plus accrued and unpaid interest thereon and Special Interest, if any, to
the applicable Redemption Date, subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date, if redeemed during the twelve-month period beginning on July 15 of
each of the years indicated below:
Year
Percentage
2011
105.313%
2012
102.656%
2013 and
thereafter
100.000%
In addition,
until July 15, 2010, the Issuer may, at its option, on one or more
occasions redeem up to 35% of the aggregate principal amount of Senior Notes at
a redemption price equal to 110.625% of the aggregate principal amount thereof,
plus accrued and unpaid interest thereon and Special Interest, if any, to the
applicable Redemption Date, subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date, with the net cash proceeds of one or more Equity Offerings;
provided
that at least 50% of the sum of the original aggregate principal
amount of Senior Notes issued under the Senior Indenture and the
30
original
principal amount of any Additional Senior Notes issued under the Senior
Indenture after the Issue Date remains outstanding immediately after the
occurrence of each such redemption;
provided further
that each such
redemption occurs within 90 days of the date of closing of each such Equity
Offering.
Notice of any
redemption may be given prior to the redemption thereof, and any such redemption
or notice may, at the Issuer's discretion, be subject to one or more conditions
precedent, including, but not limited to, completion of an Equity Offering or
other corporate transaction.
If the Issuer
redeems less than all of the outstanding Senior Notes, the Trustee shall select
the Senior Notes to be redeemed in the manner described under "Repurchase at the
Option of Holders—Selection and Notice."
Repurchase at the Option of
Holders
Change
of Control
The Senior
Notes provide that if a Change of Control occurs, unless the Issuer has
previously or concurrently mailed a redemption notice with respect to all the
outstanding Senior Notes as described under "Optional Redemption," the Issuer
will make an offer to purchase all of the Senior Notes pursuant to the offer
described below (the "
Change of Control Offer
") at a price in cash (the
"
Change of Control Payment
") equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest and Special Interest, if any, to
the date of purchase, subject to the right of Holders of the Senior Notes of
record on the relevant record date to receive interest due on the relevant
interest payment date. Within 30 days following any Change of Control, the
Issuer will send notice of such Change of Control Offer by first-class mail,
with a copy to the Trustee, to each Holder to the address of such Holder
appearing in the security register with a copy to the Trustee or otherwise in
accordance with the procedures of DTC, with the following information:
(1)
that a Change
of Control Offer is being made pursuant to the covenant entitled "Change of
Control" and that all Senior Notes properly tendered pursuant to such Change of
Control Offer will be accepted for payment by the Issuer;
(2)
the purchase
price and the purchase date, which will be no earlier than 30 days nor
later than 60 days from the date such notice is mailed (the "
Change of
Control Payment Date
");
(3)
that any
Senior Note not properly tendered will remain outstanding and continue to accrue
interest;
(4)
that unless
the Issuer defaults in the payment of the Change of Control Payment, all Senior
Notes accepted for payment pursuant to the Change of Control Offer will cease to
accrue interest on the Change of Control Payment Date;
(5)
that Holders
electing to have any Senior Notes purchased pursuant to a Change of Control
Offer will be required to surrender such Senior Notes, with the form entitled
"Option of Holder to Elect Purchase" on the reverse of such Senior Notes
completed, to the paying agent specified in the notice at the address specified
in the notice prior to the close of business on the third Business Day preceding
the Change of Control Payment Date;
(6)
that Holders
will be entitled to withdraw their tendered Senior Notes and their election to
require the Issuer to purchase such Senior Notes;
provided
that the
paying agent receives, not later than the close of business on the 30th day
following the date of the Change of Control notice, a telegram, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Senior Notes tendered for purchase, and a statement that such Holder
is withdrawing its tendered Senior Notes and its election to have such Senior
Notes purchased;
(7)
that if the
Issuer is redeeming less than all of the Senior Notes, the Holders of the
remaining Senior Notes will be issued new Senior Notes that will be equal in
principal amount to the unpurchased portion of the Senior Notes surrendered. The
unpurchased portion of the Senior Notes must be equal to $2,000 or an integral
multiple of $1,000 in excess thereof; and
31
(8)
the other
instructions, as determined by us, consistent with the covenant described
hereunder, that a Holder must follow.
The Issuer
will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent they are
applicable in connection with the repurchase of Senior Notes pursuant to a
Change of Control Offer. To the extent that the provisions of any securities
laws or regulations conflict with the provisions of the Senior Indenture, the
Issuer will comply with the applicable securities laws and regulations and shall
not be deemed to have breached its obligations described in the Senior Indenture
by virtue thereof.
On the Change
of Control Payment Date, the Issuer will, to the extent permitted by law,
(1)
accept for
payment all Senior Notes issued by it or portions thereof properly tendered
pursuant to the Change of Control Offer;
(2)
deposit with
the paying agent an amount equal to the aggregate Change of Control Payment in
respect of all Senior Notes or portions thereof so tendered; and
(3)
deliver, or
cause to be delivered, to the Trustee for cancellation the Senior Notes so
accepted together with an Officer's Certificate to the Trustee stating that such
Senior Notes or portions thereof have been tendered to and purchased by the
Issuer.
The paying
agent will promptly mail to each Holder the Change of Control Payment for such
Senior Notes, and the Trustee will promptly authenticate and mail (or cause to
be transferred by book entry) to each Holder a new Senior Note equal in
principal amount to any unpurchased portion of the Senior Notes surrendered, if
any;
provided
that each such new Senior Note will be in a principal
amount of $2,000 or an integral multiple of $1,000 in excess thereof.
The Senior
Credit Facilities will, and future credit agreements or other agreements
relating to Senior Indebtedness to which the Issuer becomes a party may, provide
that certain change of control events with respect to the Issuer would
constitute a default thereunder (including a Change of Control under the Senior
Indenture). If we experience a change of control that triggers a default under
our Senior Credit Facilities, we could seek a waiver of such default or seek to
refinance our Senior Credit Facilities. In the event we do not obtain such a
waiver or refinance the Senior Credit Facilities, such default could result in
amounts outstanding under our Senior Credit Facilities being declared due and
payable and could cause a Receivables Facility to be wound down.
Our ability
to pay cash to the Holders following the occurrence of a Change of Control may
be limited by our then-existing financial resources. Therefore, sufficient funds
may not be available when necessary to make any required repurchases.
The Change of
Control purchase feature of the Senior Notes may in certain circumstances make
more difficult or discourage a sale or takeover of us and, thus, the removal of
incumbent management. The Change of Control purchase feature is a result of
negotiations between the Initial Purchasers and us. After the Issue Date, we
have no present intention to engage in a transaction involving a Change of
Control, although it is possible that we could decide to do so in the future.
Subject to the limitations discussed below, we could, in the future, enter into
certain transactions, including acquisitions, refinancings or other
recapitalizations, that would not constitute a Change of Control under the
Senior Indenture, but that could increase the amount of indebtedness outstanding
at such time or otherwise affect our capital structure or credit ratings.
Restrictions on our ability to incur additional Indebtedness are contained in
the covenants described under "Certain Covenants—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock" and
"Certain Covenants—Liens." Such restrictions in the Senior Indenture can be
waived only with the consent of the Holders of a majority in principal amount of
the Senior Notes then outstanding. Except for the limitations contained in such
covenants, however, the Senior Indenture will not contain any covenants or
provisions that may afford Holders protection in the event of a highly leveraged
transaction.
32
The
Issuer will not be required to make a Change of Control Offer following a Change
of Control if a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in the
Senior Indenture applicable to a Change of Control Offer made by us and
purchases all Senior Notes validly tendered and not withdrawn under such Change
of Control Offer. Notwithstanding anything to the contrary herein, a Change of
Control Offer may be made in advance of a Change of Control, conditional upon
such Change of Control, if a definitive agreement is in place for the Change of
Control at the time of making of the Change of Control Offer.
The
definition of "Change of Control" includes a disposition of all or substantially
all of the assets of the Issuer to any Person. Although there is a limited body
of case law interpreting the phrase "substantially all," there is no precise
established definition of the phrase under applicable law. Accordingly, in
certain circumstances there may be a degree of uncertainty as to whether a
particular transaction would involve a disposition of "all or substantially all"
of the assets of the Issuer. As a result, it may be unclear as to whether a
Change of Control has occurred and whether a Holder may require the Issuer to
make an offer to repurchase the Senior Notes as described above.
The
provisions under the Senior Indenture relating to the Issuer's obligation to
make an offer to repurchase the Senior Notes as a result of a Change of Control
may be waived or modified with the written consent of the Holders of a majority
in principal amount of the Senior Notes.
Asset
Sales
The Senior
Indenture provides that the Issuer will not, and will not permit any of its
Restricted Subsidiaries to consummate, directly or indirectly, an Asset Sale,
unless:
(1)
the Issuer or
such Restricted Subsidiary, as the case may be, receives consideration at the
time of such Asset Sale at least equal to the fair market value (as determined
in good faith by the Issuer) of the assets sold or otherwise disposed of;
and
(2)
except in the
case of a Permitted Asset Swap, at least 75% of the consideration therefor
received by the Issuer or such Restricted Subsidiary, as the case may be, is in
the form of cash or Cash Equivalents;
provided
that the amount of:
(a)
any
liabilities (as shown on the Issuer's or such Restricted Subsidiary's most
recent balance sheet or in the footnotes thereto) of the Issuer or such
Restricted Subsidiary, other than liabilities that are by their terms
subordinated to the Senior Notes, that are assumed by the transferee of any such
assets and for which the Issuer and all of its Restricted Subsidiaries have been
validly released by all creditors in writing,
(b)
any
securities received by the Issuer or such Restricted Subsidiary from such
transferee that are converted by the Issuer or such Restricted Subsidiary into
cash (to the extent of the cash received) within 180 days following the
closing of such Asset Sale, and
(c)
any
Designated Non-cash Consideration received by the Issuer or such Restricted
Subsidiary in such Asset Sale having an aggregate fair market value, taken
together with all other Designated Non-cash Consideration received pursuant to
this clause (c) that is at that time outstanding, not to exceed 5.0% of
Total Assets at the time of the receipt of such Designated Non-cash
Consideration, with the fair market value of each item of Designated Non-cash
Consideration being measured at the time received and without giving effect to
subsequent changes in value,
shall be
deemed to be cash for purposes of this provision and for no other purpose.
Within 360
days after the receipt of any Net Proceeds of any Asset Sale, the Issuer or such
Restricted Subsidiary, at its option, may apply the Net Proceeds from such Asset
Sale,
33
(1)
to
permanently reduce:
(a)
Obligations
under the Senior Notes or any other Senior Indebtedness of the Issuer or any
Guarantor (other than Obligations owed to the Issuer or a Restricted Subsidiary)
and, in the case of Obligations under revolving credit facilities or other
similar Indebtedness, to correspondingly permanently reduce commitments with
respect thereto;
provided
that if the Issuer or any Restricted Subsidiary
shall so reduce Obligations under any Senior Indebtedness that is not secured by
a Lien, the Issuer or such Guarantor will, equally and ratably, reduce
Obligations under the Senior Notes by, at its option, (A) redeeming Senior
Notes, (B) making an offer (in accordance with the procedures set forth
below for an Asset Sale Offer) to all Holders to purchase their Senior Notes at
100% of the principal amount thereof,
plus
the amount of accrued and
unpaid interest and Special Interest, if any, on the principal amount of Senior
Notes to be repurchased or (C) purchasing Senior Notes through open market
purchases (to the extent such purchases are at a price equal to or higher than
100% of the principal amount thereof) in a manner that complies with the Senior
Indenture and applicable securities law; or
(b)
Indebtedness
of a Restricted Subsidiary that is not a Guarantor, other than Indebtedness owed
to the Issuer or another Restricted Subsidiary;
(2)
to make
(a) an Investment in any one or more businesses,
provided
that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (b) capital expenditures or
(c) acquisitions of other assets, in each of (a), (b) and (c), used or
useful in a Similar Business; or
(3)
to make an
Investment in (a) any one or more businesses,
provided
that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (b) properties or
(c) acquisitions of other assets that, in each of (a), (b) and (c),
replace the businesses, properties and/or assets that are the subject of such
Asset Sale;
provided
that, in the
case of clauses (2) and (3) above, a binding commitment shall be
treated as a permitted application of the Net Proceeds from the date of such
commitment so long as the Issuer, or such other Restricted Subsidiary enters
into such commitment with the good faith expectation that such Net Proceeds will
be applied to satisfy such commitment within 180 days of such commitment
(an "
Acceptable Commitment
") and, in the event any Acceptable Commitment
is later cancelled or terminated for any reason before the Net Proceeds are
applied in connection therewith, the Issuer or such Restricted Subsidiary enters
into another Acceptable Commitment (a "
Second Commitment
") within
180 days of such cancellation or termination;
provided
,
further
, that if any Second Commitment is later cancelled or terminated
for any reason before such Net Proceeds are applied, then such Net Proceeds
shall constitute Excess Proceeds.
Any Net
Proceeds from Asset Sales that are not invested or applied as provided and
within the time period set forth in the first sentence of the preceding
paragraph will be deemed to constitute "
Excess Proceeds
." When the
aggregate amount of Excess Proceeds exceeds $75.0 million, the Issuer shall
make an offer to all Holders and, if required or permitted by the terms of any
Senior Indebtedness, to the holders of such Senior Indebtedness (an "
Asset
Sale Offer
"), to purchase the maximum aggregate principal amount of the
Senior Notes and such Senior Indebtedness that is a minimum of $2,000 or an
integral multiple of $1,000 in excess thereof that may be purchased out of the
Excess Proceeds at an offer price in cash in an amount equal to 100% of the
principal amount thereof, plus accrued and unpaid interest and Special Interest,
if any, to the date fixed for the closing of such offer, in accordance with the
procedures set forth in the Senior Indenture. The Issuer will commence an Asset
Sale Offer with respect to Excess Proceeds within ten Business Days after the
date that Excess Proceeds exceed $75.0 million by mailing the notice
required pursuant to the terms of the Senior Indenture, with a copy to the
Trustee.
To the extent
that the aggregate amount of Senior Notes and such Senior Indebtedness tendered
pursuant to an Asset Sale Offer is less than the Excess Proceeds, the Issuer may
use any remaining Excess Proceeds for general corporate purposes, subject to
other covenants contained in the Senior Indenture. If the aggregate principal
amount of Senior Notes or other Senior Indebtedness surrendered by such holders
thereof exceeds the amount of Excess
34
Proceeds,
the Trustee shall select the Senior Notes and such other Senior Indebtedness to
be purchased on a pro rata basis based on the accreted value or principal amount
of the Senior Notes or such Senior Indebtedness tendered. Upon completion of any
such Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.
Additionally, the Issuer may, at its option, make an Asset Sale Offer using
proceeds from any Asset Sale at any time after consummation of such Asset Sale;
provided
that such Asset Sale Offer shall be in an aggregate amount of
not less than $75.0 million. Upon consummation of such Asset Sale Offer,
any Net Proceeds not required to be used to purchase Senior Notes shall not be
deemed Excess Proceeds.
Pending the
final application of any Net Proceeds pursuant to this covenant, the holder of
such Net Proceeds may apply such Net Proceeds temporarily to reduce Indebtedness
outstanding under a revolving credit facility or otherwise invest such Net
Proceeds in any manner not prohibited by the Senior Indenture.
The Issuer
will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws or
regulations are applicable in connection with the repurchase of the Senior Notes
pursuant to an Asset Sale Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of the Senior
Indenture, the Issuer will comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations described
in the Senior Indenture by virtue thereof.
The Senior
Credit Facilities will prohibit or limit (subject to limited exceptions), and
future credit agreements or other agreements to which the Issuer becomes a party
may limit or prohibit, the Issuer from purchasing any Senior Notes as a result
of an Asset Sale Offer. In the event the Issuer is required to make an Asset
Sale Offer at a time when the Issuer is prohibited from purchasing the Senior
Notes, the Issuer could seek the consent of its lenders to permit the purchase
of the Senior Notes or could attempt to refinance the borrowings that contain
such prohibition. If the Issuer does not obtain such consent or repay such
borrowings, the Issuer will remain prohibited from purchasing the Senior Notes.
In such case, the Issuer's failure to purchase tendered Senior Notes would
constitute an Event of Default under the Senior Indenture.
The
provisions under the Senior Indenture relative to the Issuer's obligation to
make an offer to repurchase the Senior Notes as a result of an Asset Sale may be
waived or modified with the written consent of the Holders of a majority in
principal amount of the Senior Notes.
Selection
and Notice
If the Issuer
is redeeming less than all of the Senior Notes issued at any time, the Trustee
will select the Senior Notes to be redeemed (a) if the Senior Notes are
listed on any national securities exchange, in compliance with the requirements
of the principal national securities exchange on which the Senior Notes are
listed, (b) on a pro rata basis to the extent practicable or (c) by
lot or such other similar method in accordance with the procedures of DTC.
Notices of
purchase or redemption shall be mailed by first-class mail, postage prepaid, at
least 30 but not more than 60 days before the purchase or Redemption Date
to each Holder at such Holder's registered address or otherwise in accordance
with the procedures of DTC, except that redemption notices may be mailed more
than 60 days prior to a Redemption Date if the notice is issued in
connection with a defeasance of the Senior Notes or a satisfaction and discharge
of the Senior Indenture. If any Senior Note is to be purchased or redeemed in
part only, any notice of purchase or redemption that relates to such Senior Note
shall state the portion of the principal amount thereof that has been or is to
be purchased or redeemed.
The Issuer
will issue a new Senior Note in a principal amount equal to the unredeemed
portion of the original Senior Note in the name of the Holder upon cancellation
of the original Senior Note. Senior Notes called for redemption become due on
the date fixed for redemption. On and after the Redemption Date, interest ceases
to accrue on Senior Notes or portions thereof called for redemption.
35
Certain
Covenants
Limitation
on Restricted Payments
The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly:
(I)
declare or
pay any dividend or make any payment or distribution on account of the Issuer's,
or any of its Restricted Subsidiaries' Equity Interests, including any dividend
or distribution payable in connection with any merger or consolidation other
than:
(a)
dividends
or distributions by the Issuer payable solely in Equity Interests (other than
Disqualified Stock) of the Issuer; or
(b)
dividends
or distributions by a Restricted Subsidiary so long as, in the case of any
dividend or distribution payable on or in respect of any class or series of
securities issued by a Restricted Subsidiary other than a Wholly-Owned
Subsidiary, the Issuer or a Restricted Subsidiary receives at least its pro rata
share of such dividend or distribution in accordance with its Equity Interests
in such class or series of securities;
(II)
purchase,
redeem, defease or otherwise acquire or retire for value any Equity Interests of
the Issuer or any direct or indirect parent of the Issuer, including in
connection with any merger or consolidation;
(III)
make any
principal payment on, or redeem, repurchase, defease or otherwise acquire or
retire for value in each case, prior to any scheduled repayment, sinking fund
payment or maturity, any Subordinated Indebtedness, other than:
(a)
Indebtedness
permitted under clauses (8) and (9) of the covenant described under
"—Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock"; or
(b)
the
purchase, repurchase or other acquisition of Subordinated Indebtedness purchased
in anticipation of satisfying a sinking fund obligation, principal installment
or final maturity, in each case due within one year of the date of purchase,
repurchase or acquisition; or
(IV)
make any
Restricted Investment
(all such payments and other
actions set forth in clauses (I) through (IV) above (other than any
exception thereto) being collectively referred to as "
Restricted
Payments
"), unless, at the time of such Restricted Payment:
(1)
no Default
shall have occurred and be continuing or would occur as a consequence
thereof;
(2)
immediately
after giving effect to such transaction on a
pro forma
basis, the Issuer
could incur $1.00 of additional Indebtedness under the provisions of the first
paragraph of the covenant described under "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock"; and
(3)
such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Issuer and its Restricted Subsidiaries after the Issue Date
(including Restricted Payments permitted by clauses (1), (2) (with respect
to the payment of dividends on Refunding Capital Stock (as defined below)
pursuant to clause (b) thereof only), (6)(c), (9) and (14) of the
next succeeding paragraph, but excluding all other Restricted Payments permitted
by the next succeeding paragraph), is less than the sum of (without
duplication):
(a)
50%
of the Consolidated Net Income of the Issuer for the period (taken as one
accounting period) beginning May 4, 2007, to the end of the Issuer's most
recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment, or, in the case such
Consolidated Net Income for such period is a deficit, minus 100% of such
deficit;
plus
36
(b)
100%
of the aggregate net cash proceeds and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received by
the Issuer since immediately after the Issue Date from the issue or sale of:
(i)
(A)
Equity Interests of the Issuer, including Treasury Capital Stock (as defined
below), but excluding cash proceeds and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received
from the sale of:
(x)
Equity
Interests to members of management, directors or consultants of the Issuer, any
direct or indirect parent company of the Issuer and the Issuer's Subsidiaries
after the Issue Date to the extent such amounts have been applied to Restricted
Payments made in accordance with clause (4) of the next succeeding
paragraph; and
(y)
Designated
Preferred Stock; and
(B)
to the extent such net cash proceeds are actually contributed to the Issuer,
Equity Interests of the Issuer's direct or indirect parent companies (excluding
contributions of the proceeds from the sale of Designated Preferred Stock of
such companies or contributions to the extent such amounts have been applied to
Restricted Payments made in accordance with clause (4) of the next
succeeding paragraph); or
(ii)
debt
securities of the Issuer that have been converted into or exchanged for such
Equity Interests of the Issuer;
provided
,
however
, that this clause (b) shall not include the proceeds from
(V) Refunding Capital Stock (as defined below), (W) Equity Interests
of the Issuer or convertible debt securities of the Issuer sold to a Restricted
Subsidiary, as the case may be, (X) Disqualified Stock or debt securities
that have been converted into Disqualified Stock, (Y) Excluded
Contributions or (Z) transactions whose proceeds were used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to
clause (13)(a) of the second paragraph of "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock," solely to
the extent of such usage;
plus
(c)
100%
of the aggregate amount of cash and the fair market value, as determined in good
faith by the Issuer, of marketable securities or other property contributed to
the capital of the Issuer following the Issue Date (other than net cash proceeds
to the extent such net cash proceeds (i) have been used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to
clause (13)(a) of the second paragraph of "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,"
(ii) are contributed by a Restricted Subsidiary or (iii) constitute
Excluded Contributions;
plus
(d)
to
the extent not already included in Consolidated Net Income, 100% of the
aggregate amount received in cash and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received by
means of:
(i)
the
sale or other disposition (other than to the Issuer or a Restricted Subsidiary)
of Restricted Investments made by the Issuer or its Restricted Subsidiaries and
repurchases and redemptions of such Restricted Investments from the Issuer or
its Restricted Subsidiaries and repayments of loans or advances, and releases of
guarantees, which constitute Restricted Investments by the Issuer or its
Restricted Subsidiaries, in each case after the Issue Date; or
(ii)
the
sale (other than to the Issuer or a Restricted Subsidiary) of the stock of an
Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary (other
than in each case to the extent the Investment in such Unrestricted Subsidiary
was made by the Issuer or a Restricted Subsidiary pursuant to clause (7) of
the next succeeding paragraph or to the extent such
37
Investment
constituted a Permitted Investment) or a dividend from an Unrestricted
Subsidiary after the Issue Date;
plus
(e)
in
the case of the redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary after the Issue Date, the fair market value of the Investment in such
Unrestricted Subsidiary, as determined by the Issuer in good faith (or if such
fair market value exceeds $75.0 million, in writing by an Independent
Financial Advisor), at the time of the redesignation of such Unrestricted
Subsidiary as a Restricted Subsidiary other than to the extent the Investment in
such Unrestricted Subsidiary was made by the Issuer or a Restricted Subsidiary
pursuant to clause (7) of the next succeeding paragraph or to the extent
such Investment constituted a Permitted Investment.
The foregoing
provisions will not prohibit:
(1)
the payment
of any dividend within 60 days after the date of declaration thereof, if at
the date of declaration such payment would have complied with the provisions of
the Senior Indenture;
(2)
(a) the
redemption, repurchase, retirement or other acquisition of any Equity Interests
("
Treasury Capital Stock
") or Subordinated Indebtedness of the Issuer or
any Equity Interests of any direct or indirect parent company of the Issuer, in
exchange for, or out of the proceeds of the substantially concurrent sale (other
than to a Restricted Subsidiary) of, Equity Interests of the Issuer or any
direct or indirect parent company of the Issuer to the extent contributed to the
Issuer (in each case, other than any Disqualified Stock) ("
Refunding Capital
Stock
") and (b) if immediately prior to the retirement of Treasury
Capital Stock, the declaration and payment of dividends thereon was permitted
under clause (6) of this paragraph, the declaration and payment of
dividends on the Refunding Capital Stock (other than Refunding Capital Stock the
proceeds of which were used to redeem, repurchase, retire or otherwise acquire
any Equity Interests of any direct or indirect parent company of the Issuer) in
an aggregate amount per year no greater than the aggregate amount of dividends
per annum that were declarable and payable on such Treasury Capital Stock
immediately prior to such retirement;
(3)
the
redemption, repurchase or other acquisition or retirement of Subordinated
Indebtedness of the Issuer or a Guarantor made in exchange for, or out of the
proceeds of the substantially concurrent sale of, new Indebtedness of the Issuer
or a Guarantor, as the case may be, which is incurred in compliance with
"—Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock" so long as:
(a)
the
principal amount (or accreted value) of such new Indebtedness does not exceed
the principal amount of (or accreted value, if applicable), plus any accrued and
unpaid interest on, the Subordinated Indebtedness being so redeemed,
repurchased, acquired or retired for value, plus the amount of any reasonable
premium (including reasonable tender premiums), defeasance costs and any
reasonable fees and expenses incurred in connection with the issuance of such
new Indebtedness;
(b)
such
new Indebtedness is subordinated to the Senior Notes or the applicable Guarantee
at least to the same extent as such Subordinated Indebtedness so purchased,
exchanged, redeemed, repurchased, acquired or retired for value;
(c)
such
new Indebtedness has a final scheduled maturity date equal to or later than the
final scheduled maturity date of the Subordinated Indebtedness being so
redeemed, repurchased, acquired or retired; and
(d)
such
new Indebtedness has a Weighted Average Life to Maturity equal to or greater
than the remaining Weighted Average Life to Maturity of the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired;
(4)
a Restricted
Payment to pay for the repurchase, retirement or other acquisition or retirement
for value of Equity Interests (other than Disqualified Stock) of the Issuer or
any of its direct or indirect parent companies held by any future, present or
former employee, director or consultant of the Issuer, any of its Subsidiaries
or any of its direct or indirect parent companies pursuant to any management
equity plan or stock
38
option
plan or any other management or employee benefit plan or agreement, including
any Equity Interests rolled over by management of the Company or any of its
direct or indirect parent companies in connection with the Transactions;
provided
,
however
, that the aggregate Restricted Payments made
under this clause (4) do not exceed in any calendar year $12.5 million
(which shall increase to $25.0 million subsequent to the consummation of an
underwritten public Equity Offering by the Issuer or any direct or indirect
parent entity of the Issuer) (with unused amounts in any calendar year being
carried over to succeeding calendar years subject to a maximum (without giving
effect to the following proviso) of $50.0 million in any calendar year
(which shall increase to $100.0 million subsequent to the consummation of
an underwritten public Equity Offering by the Issuer or any direct or indirect
parent corporation of the Issuer));
provided further
that such amount in
any calendar year may be increased by an amount not to exceed:
(a)
the
cash proceeds from the sale of Equity Interests (other than Disqualified Stock)
of the Issuer and, to the extent contributed to the Issuer, Equity Interests of
any of the Issuer's direct or indirect parent companies, in each case to members
of management, directors or consultants of the Issuer, any of its Subsidiaries
or any of its direct or indirect parent companies that occurs after the Issue
Date to the extent the cash proceeds from the sale of such Equity Interests have
not otherwise been applied to the payment of Restricted Payments by virtue of
clause (3) of the preceding paragraph;
plus
(b)
the
cash proceeds of key man life insurance policies received by the Issuer or its
Restricted Subsidiaries after the Issue Date;
less
(c)
the
amount of any Restricted Payments previously made with the cash proceeds
described in clauses (a) and (b) of this clause (4);
and
provided
,
further
, that cancellation of Indebtedness owing to the Issuer or any
Restricted Subsidiary from members of management of the Issuer, any of the
Issuer's direct or indirect parent companies or any of the Issuer's Restricted
Subsidiaries in connection with a repurchase of Equity Interests of the Issuer
or any of its direct or indirect parent companies will not be deemed to
constitute a Restricted Payment for purposes of this covenant or any other
provision of the Senior Indenture;
(5)
the
declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Issuer or any of its Restricted Subsidiaries or any
class or series of Preferred Stock of any Restricted Subsidiary issued in
accordance with the covenant described under "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock" to the
extent such dividends are included in the definition of "Fixed Charges";
(6)
(a)  the
declaration and payment of dividends to holders of any class or series of
Designated Preferred Stock (other than Disqualified Stock) issued by the Issuer
after the Issue Date;
(b)
the
declaration and payment of dividends to a direct or indirect parent company of
the Issuer, the proceeds of which will be used to fund the payment of dividends
to holders of any class or series of Designated Preferred Stock (other than
Disqualified Stock) of such parent company issued after the Issue Date;
provided
that the amount of dividends paid pursuant to this
clause (b) shall not exceed the aggregate amount of cash actually
contributed to the Issuer from the sale of such Designated Preferred Stock;
or
(c)
the
declaration and payment of dividends on Refunding Capital Stock that is
Preferred Stock in excess of the dividends declarable and payable thereon
pursuant to clause (2) of this paragraph;
provided
,
however
,
in the case of each of (a), (b) and (c) of this clause (6), that
for the most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date of issuance of
such Designated Preferred Stock or the declaration of such dividends on
Refunding Capital Stock that is Preferred Stock, after giving effect to such
issuance or declaration on a
pro forma
basis, the Issuer and its
Restricted Subsidiaries on a consolidated basis would have had a Fixed Charge
Coverage Ratio of at least 2.00 to 1.00;
39
(7)
Investments
in Unrestricted Subsidiaries having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause (7) that
are at the time outstanding, without giving effect to the sale of an
Unrestricted Subsidiary to the extent the proceeds of such sale do not consist
of cash or marketable securities, not to exceed $50.0 million at the time
of such Investment (with the fair market value of each Investment being measured
at the time made and without giving effect to subsequent changes in value);
(8)
repurchases
of Equity Interests deemed to occur upon exercise of stock options or warrants
if such Equity Interests represent a portion of the exercise price of such
options or warrants;
(9)
the
declaration and payment of dividends on the Issuer's common stock (or the
payment of dividends to any direct or indirect parent entity to fund a payment
of dividends on such entity's common stock), following consummation of the first
public offering of the Issuer's common stock or the common stock of any of its
direct or indirect parent companies after the Issue Date, of up to 6% per annum
of the net cash proceeds received by or contributed to the Issuer in or from any
such public offering, other than public offerings with respect to the Issuer's
common stock registered on Form S-8 and other than any public sale
constituting an Excluded Contribution;
(10)
Restricted
Payments that are made with Excluded Contributions;
(11)
other
Restricted Payments in an aggregate amount taken together with all other
Restricted Payments made pursuant to this clause (11) not to exceed
$100.0 million at the time made;
(12)
distributions
or payments of Receivables Fees;
(13)
any
Restricted Payment made as part of the Transactions and the fees and expenses
related thereto or used to fund amounts owed to Affiliates (including dividends
to any direct or indirect parent of the Issuer to permit payment by such parent
of such amount), in each case to the extent permitted by the covenant described
under "—Transactions with Affiliates";
(14)
the
repurchase, redemption or other acquisition or retirement for value of any
Subordinated Indebtedness in accordance with the provisions similar to those
described under the captions "Repurchase at the Option of Holders—Change of
Control" and "Repurchase at the Option of Holders—Asset Sales";
provided
that all Senior Notes tendered by Holders in connection with a Change of Control
Offer or Asset Sale Offer, as applicable, have been repurchased, redeemed or
acquired for value;
(15)
the
declaration and payment of dividends by the Issuer to, or the making of loans
to, any direct or indirect parent in amounts required for any direct or indirect
parent companies to pay, in each case without duplication,
(a)
franchise
and excise taxes and other fees, taxes and expenses required to maintain their
corporate existence;
(b)
foreign,
federal, state and local income taxes, to the extent such income taxes are
attributable to the income of the Issuer and its Restricted Subsidiaries and, to
the extent of the amount actually received from its Unrestricted Subsidiaries,
in amounts required to pay such taxes to the extent attributable to the income
of such Unrestricted Subsidiaries;
provided
that in each case the amount
of such payments in any fiscal year does not exceed the amount that the Issuer
and its Restricted Subsidiaries would be required to pay in respect of foreign,
federal, state and local taxes for such fiscal year were the Issuer, its
Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent
described above) to pay such taxes separately from any such parent entity;
(c)
customary
salary, bonus and other benefits payable to officers and employees of any direct
or indirect parent company of the Issuer to the extent such salaries, bonuses
and other benefits are attributable to the ownership or operation of the Issuer
and its Restricted Subsidiaries;
40
(d)
general
corporate operating and overhead costs and expenses of any direct or indirect
parent company of the Issuer to the extent such costs and expenses are
attributable to the ownership or operation of the Issuer and its Restricted
Subsidiaries; and
(e)
fees
and expenses other than to Affiliates of the Issuer related to any unsuccessful
equity or debt offering of such parent entity; and
(16)
the
redemption for cash of a portion of each Senior Subordinated Note then
outstanding equal to any "Mandatory Principal Redemption Amount" applicable
thereto, to the extent required under the Senior Subordinated Indenture. The
"Mandatory Principal Redemption Amount" means, as of the date of such
redemption, the excess, if any, of (a) the aggregate amount of accrued and
unpaid interest and all accrued and unpaid "original issue discount" (as defined
in Section 1273(a)(1) of the Code) with respect to the Senior Subordinated
Notes, over (b) an amount equal to the product of (i) the "issue
price" (as defined in Sections 1273(b) and 1274(a) of the Code) of the Senior
Subordinated Notes multiplied by (ii) the "yield to maturity" (as defined
in the Treasury Regulation Section 1.1272-1(b)(1)(i)) of the Senior
Subordinated Notes;
provided
,
however
,
that at the time of, and after giving effect to, any Restricted Payment
permitted under clause (11), no Default shall have occurred and be
continuing or would occur as a consequence thereof.
As of the
Issue Date, all of the Issuer's Subsidiaries will be Restricted Subsidiaries.
The Issuer will not permit any Unrestricted Subsidiary to become a Restricted
Subsidiary except pursuant to the last sentence of the definition of
"Unrestricted Subsidiary." For purposes of designating any Restricted Subsidiary
as an Unrestricted Subsidiary, all outstanding Investments by the Issuer and its
Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so
designated will be deemed to be Restricted Payments in an amount determined as
set forth in the last sentence of the definition of "Investment." Such
designation will be permitted only if a Restricted Payment in such amount would
be permitted at such time, whether pursuant to the first paragraph of this
covenant or under clause (7), (10) or (11) of the second
paragraph of this covenant, or pursuant to the definition of "Permitted
Investments," and if such Subsidiary otherwise meets the definition of an
Unrestricted Subsidiary. Unrestricted Subsidiaries will not be subject to any of
the restrictive covenants set forth in the Senior Indenture.
Notwithstanding
the foregoing provisions of this covenant, the Issuer will not, and will not
permit any of its Restricted Subsidiaries to, pay any cash dividend or make any
cash distribution on or in respect of the Issuer's Capital Stock or purchase for
cash or otherwise acquire for cash any Capital Stock of the Issuer or any direct
or indirect parent of the Issuer, for the purpose of paying any cash dividend or
making any cash distribution to, or acquiring Capital Stock of any direct or
indirect parent of the Issuer for cash from, the Investors, or Guarantee any
Indebtedness of any Affiliate of the Issuer for the purpose of paying such
dividend, making such distribution or so acquiring such Capital Stock to or from
the Investors, in each case by means of utilization of the cumulative Restricted
Payment credit provided by the first paragraph of this covenant, or the
exceptions provided by clauses (1), (7) or (11) of the second
paragraph of this covenant or clauses (8) or (13) of the definition of
"Permitted Investments," unless at the time and after giving effect to such
payment, the Consolidated Leverage Ratio of the Issuer would be equal to or less
than 6.00:1.00.
Limitation
on Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock
The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, issue, assume, guarantee or otherwise become directly
or indirectly liable, contingently or otherwise (collectively, "
incur
"
and collectively, an "
incurrence
") with respect to any Indebtedness
(including Acquired Indebtedness), and the Issuer will not issue any shares of
Disqualified Stock and will not permit any Restricted Subsidiary to issue any
shares of Disqualified Stock or Preferred Stock;
provided
,
however
, that the Issuer may incur Indebtedness (including Acquired
Indebtedness) or issue shares of Disqualified Stock, and any of its Restricted
Subsidiaries may incur Indebtedness (including Acquired Indebtedness), issue
shares of Disqualified Stock and issue shares of Preferred Stock, if the Fixed
Charge Coverage Ratio on a consolidated basis for the Issuer and its Restricted
Subsidiaries' most recently ended four fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred or such Disqualified Stock or Preferred
Stock is issued would have been at least 2.00 to 1.00, determined on a
pro
forma
basis (including a
pro forma
application of the net proceeds
therefrom), as if the additional Indebtedness had been incurred, or the
41
Disqualified
Stock or Preferred Stock had been issued, as the case may be, and the
application of proceeds therefrom had occurred at the beginning of such
four-quarter period;
provided, further,
that Restricted Subsidiaries that
are not Guarantors may not incur Indebtedness or Disqualified Stock or Preferred
Stock if, after giving
pro forma
effect to such incurrence or issuance
(including a
pro forma
application of the net proceeds therefrom), more
than an aggregate of $250.0 million of Indebtedness or Disqualified Stock
or Preferred Stock of Restricted Subsidiaries that are not Guarantors would be
outstanding pursuant to this paragraph and clauses (13)(b), (15) and
(20) below at such time.
The foregoing
limitations will not apply to:
(1)
the
incurrence of Indebtedness under (x) Credit Facilities (other than the ABL
Facility) by the Issuer or any of its Restricted Subsidiaries and the issuance
and creation of letters of credit and bankers' acceptances thereunder (with
letters of credit and bankers' acceptances being deemed to have a principal
amount equal to the face amount thereof), up to an aggregate principal amount of
$2,625.0 million outstanding at any one time and (y) the ABL Facility
by the Issuer or any of its Restricted Subsidiaries and the issuance and
creation of letters of credit and bankers' acceptances thereunder (with letters
of credit and bankers' acceptances being deemed to have a principal amount equal
to the face amount thereof), up to an aggregate principal amount equal to the
ABL Facility Cap;
(2)
the
incurrence by the Issuer and any Guarantor of Indebtedness represented by the
Senior Notes issued on the Issue Date (including any Guarantee hereof) and the
Senior Exchange Notes and related guarantees of the Senior Exchange Notes to be
issued in exchange for the Senior Notes and the Guarantees pursuant to the
Registration Rights Agreement (other than any Additional Senior Notes and
related guarantees);
(3)
the
incurrence by the Issuer and any Guarantor of Indebtedness represented by the
Senior Subordinated Notes and related guarantees, as well as any exchange notes
and exchange guarantees to be issued in exchange for the Senior Subordinated
Notes and related guarantees pursuant a registration rights agreement;
(4)
Indebtedness
of the Issuer and its Restricted Subsidiaries in existence on the Issue Date
(other than Indebtedness described in clauses (1), (2) and (3) of this
paragraph);
(5)
Indebtedness
consisting of Capitalized Lease Obligations and Purchase Money Obligations in a
principal amount not to exceed $250.0 million (excluding the principal
amount of any Capitalized Lease Obligations or Purchase Money Obligations
relating to the purchase, lease or improvement of the Company's distribution
centers located in Fulton, Missouri, Indianola, Mississippi and Ardmore,
Oklahoma) in the aggregate at any one time outstanding together with all other
Indebtedness issued under this clause (5); so long as such Indebtedness
exists at the date of such purchase, lease or improvement, or is created within
270 days thereafter;
(6)
Indebtedness
incurred by the Issuer or any of its Restricted Subsidiaries constituting
reimbursement obligations with respect to letters of credit issued in the
ordinary course of business, including letters of credit in respect of workers'
compensation or employee health claims, or other Indebtedness with respect to
reimbursement-type obligations regarding workers' compensation, or employee
health claims;
provided
,
however
, that upon the drawing of such
letters of credit or the incurrence of such Indebtedness, such obligations are
reimbursed within 30 days following such drawing or incurrence;
(7)
Indebtedness
arising from agreements of the Issuer or its Restricted Subsidiaries providing
for indemnification, adjustment of purchase price or similar obligations, in
each case, incurred or assumed in connection with the disposition of any
business, assets or a Subsidiary, other than guarantees of Indebtedness incurred
by any Person acquiring all or any portion of such business, assets or a
Subsidiary for the purpose of financing such acquisition;
provided
,
however
, that such Indebtedness is not reflected on the balance sheet of
the Issuer, or any of its Restricted Subsidiaries (contingent obligations
referred to in a footnote to financial statements and not otherwise reflected on
the balance sheet will not be deemed to be reflected on such balance sheet for
purposes of this clause (7));
42
(8)
Indebtedness
of the Issuer to a Restricted Subsidiary;
provided
that any such
Indebtedness owing to a Restricted Subsidiary that is not a Guarantor is
expressly subordinated in right of payment to the Senior Notes;
provided
,
further
, that any subsequent issuance or transfer of any Capital Stock or
any other event which results in any Restricted Subsidiary ceasing to be a
Restricted Subsidiary or any other subsequent transfer of any such Indebtedness
(except to the Issuer or another Restricted Subsidiary) shall be deemed, in each
case, to be an incurrence of such Indebtedness not permitted by this
clause (8);
(9)
Indebtedness
of a Restricted Subsidiary to the Issuer or another Restricted Subsidiary;
provided
that if a Guarantor issues such Indebtedness to a Restricted
Subsidiary that is not a Guarantor (other than to any Restricted Subsidiary
engaged in the insurance business in order to provide insurance to the Issuer
and its Subsidiaries), such Indebtedness is expressly subordinated in right of
payment to the Guarantee of the Senior Notes of such Guarantor;
provided
,
further
, that any subsequent issuance or transfer of any Capital Stock or
any other event which results in any such Restricted Subsidiary ceasing to be a
Restricted Subsidiary or any other subsequent transfer of any such Indebtedness
(except to the Issuer or another Restricted Subsidiary) shall be deemed, in each
case, to be an incurrence of such Indebtedness not permitted by this
clause (9);
(10)
shares of
Preferred Stock of a Restricted Subsidiary issued to the Issuer or another
Restricted Subsidiary;
provided
that any subsequent issuance or transfer
of any Capital Stock or any other event which results in any such Restricted
Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent
transfer of any such shares of Preferred Stock (except to the Issuer or another
of its Restricted Subsidiaries) shall be deemed in each case to be an issuance
of such shares of Preferred Stock not permitted by this clause (10);
(11)
Hedging
Obligations (excluding Hedging Obligations entered into for speculative
purposes) for the purpose of limiting interest rate risk with respect to any
Indebtedness permitted to be incurred pursuant to "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock," exchange
rate risk or commodity pricing risk;
(12)
obligations
in respect of performance, bid, appeal and surety bonds and completion
guarantees provided by the Issuer or any of its Restricted Subsidiaries in the
ordinary course of business;
(13)
(a)
Indebtedness or Disqualified Stock of the Issuer and Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or any Restricted Subsidiary equal to
100.0% of the net cash proceeds received by the Issuer since immediately after
the Issue Date from the issue or sale of Equity Interests of the Issuer or cash
contributed to the capital of the Issuer (in each case, other than Excluded
Contributions or proceeds of Disqualified Stock or sales of Equity Interests to
the Issuer or any of its Subsidiaries) as determined in accordance with clauses
(3)(b) and (3)(c) of the first paragraph of "—Limitation on Restricted Payments"
to the extent such net cash proceeds or cash have not been applied pursuant to
such clauses to make Restricted Payments or to make other Investments, payments
or exchanges pursuant to the second paragraph of "—Limitation on Restricted
Payments" or to make Permitted Investments (other than Permitted Investments
specified in clauses (1) and (3) of the definition thereof) and
(b) Indebtedness or Disqualified Stock of Issuer and Indebtedness,
Disqualified Stock or Preferred Stock of the Issuer or any Restricted Subsidiary
not otherwise permitted hereunder in an aggregate principal amount or
liquidation preference, which when aggregated with the principal amount and
liquidation preference of all other Indebtedness, Disqualified Stock and
Preferred Stock then outstanding and incurred pursuant to this
clause (13)(b), does not at any one time outstanding exceed
$250.0 million;
provided
,
however
that on a
pro forma
basis
, together with any amounts incurred and outstanding by Restricted
Subsidiaries that are not Guarantors pursuant to the second proviso to the first
paragraph of this covenant and clauses (15) and (20), no more than
$250.0 million of Indebtedness, Disqualified Stock or Preferred Stock at
any one time outstanding and incurred pursuant to this clause (13)(b) shall
be incurred by Restricted Subsidiaries that are not Guarantors (it being
understood that any Indebtedness, Disqualified Stock or Preferred Stock incurred
pursuant to this clause (13)(b) shall cease to be deemed incurred or
outstanding for purposes of this clause (13)(b) but shall be deemed
incurred for the purposes of the first paragraph of this covenant from and after
the first date on which the Issuer or such Restricted Subsidiary could have
incurred such Indebtedness, Disqualified Stock or Preferred Stock under the
first paragraph of this covenant without reliance on this
clause (13)(b));
(14)
the
incurrence or issuance by the Issuer or any Restricted Subsidiary of
Indebtedness, Disqualified Stock or Preferred Stock which serves to refund or
refinance any Indebtedness, Disqualified Stock or Preferred
43
Stock
of the Issuer or any Restricted Subsidiary incurred as permitted under the first
paragraph of this covenant and clauses (2), (3), (4), (5) and (13)(a)
above, this clause (14) and clause (15) below or any Indebtedness,
Disqualified Stock or Preferred Stock of the Issuer or any Restricted Subsidiary
issued to so refund or refinance such Indebtedness, Disqualified Stock or
Preferred Stock of the Issuer or any Restricted Subsidiary including additional
Indebtedness, Disqualified Stock or Preferred Stock incurred to pay premiums
(including reasonable tender premiums), defeasance costs and fees in connection
therewith (the "
Refinancing Indebtedness
") prior to its respective
maturity;
provided
,
however
, that such Refinancing
Indebtedness:
(a)
has
a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is
incurred which is not less than the remaining Weighted Average Life to Maturity
of the Indebtedness, Disqualified Stock or Preferred Stock being refunded or
refinanced,
(b)
to
the extent such Refinancing Indebtedness refinances (i) Indebtedness
subordinated or
pari passu
to the Senior Notes or any Guarantee thereof,
such Refinancing Indebtedness is subordinated or
pari passu
to the Senior
Notes or the Guarantee at least to the same extent as the Indebtedness being
refinanced or refunded or (ii) Disqualified Stock or Preferred Stock, such
Refinancing Indebtedness must be Disqualified Stock or Preferred Stock,
respectively, and
(c)
shall
not include Indebtedness, Disqualified Stock or Preferred Stock of a Subsidiary
of the Issuer that is not a Guarantor that refinances Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or a Guarantor;
and
provided further
that
subclause (a) of this clause (14) will not apply to any refunding or
refinancing of any Indebtedness outstanding under a Credit Facility;
(15)
Indebtedness,
Disqualified Stock or Preferred Stock of (x) the Issuer or a Restricted
Subsidiary incurred to finance an acquisition of any Person or assets or
(y) Persons that are acquired by the Issuer or any Restricted Subsidiary or
merged into the Issuer or a Restricted Subsidiary in accordance with the terms
of the Senior Indenture;
provided
that after giving effect to such
acquisition or merger, either:
(a)
the
Issuer would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in the first sentence
of this covenant, or
(b)
the
Fixed Charge Coverage Ratio of the Issuer and the Restricted Subsidiaries is
greater than immediately prior to such acquisition or merger;
provided
,
however
that on a
pro forma
basis, together with amounts incurred and outstanding
pursuant to the second proviso to the first paragraph of this covenant and
clauses (13)(b) and (20), no more than $250.0 million of Indebtedness,
Disqualified Stock or Preferred Stock at any one time outstanding and incurred
by Restricted Subsidiaries that are not Guarantors pursuant to this
clause (15) shall be incurred and outstanding;
(16)
Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument drawn against insufficient funds in the ordinary
course of business;
provided
that such Indebtedness is extinguished
within two Business Days of its incurrence;
(17)
Indebtedness
of the Issuer or any of its Restricted Subsidiaries supported by a letter of
credit issued pursuant to any Credit Facilities, in a principal amount not in
excess of the stated amount of such letter of credit;
(18)
(a) any
guarantee by the Issuer or a Restricted Subsidiary of Indebtedness or other
Obligations of any Restricted Subsidiary, so long as the incurrence of such
Indebtedness incurred by such Restricted Subsidiary is permitted under the terms
of the Senior Indenture, or (b) any guarantee by a Restricted Subsidiary of
Indebtedness of the Issuer permitted to be incurred under the terms of the
Senior Indenture;
provided
that such guarantee is incurred in accordance
with the covenant described below under "—Limitation on Guarantees of
Indebtedness by Restricted Subsidiaries";
44
(19)
Indebtedness
of Foreign Subsidiaries of the Issuer in an amount not to exceed at any one time
outstanding and together with any other Indebtedness incurred under this
clause (19) 5.0% of the Total Assets of the Foreign Subsidiaries (it being
understood that any Indebtedness incurred pursuant to this clause (19)
shall cease to be deemed incurred or outstanding for purposes of this
clause (19) but shall be deemed incurred for the purposes of the first
paragraph of this covenant from and after the first date on which the Issuer or
such Restricted Subsidiaries could have incurred such Indebtedness under the
first paragraph of this covenant without reliance on this clause (19));
(20)
Indebtedness,
Disqualified Stock or Preferred Stock of a Restricted Subsidiary incurred to
finance or assumed in connection with an acquisition in a principal amount not
to exceed $100.0 million in the aggregate at any one time outstanding
together with all other Indebtedness, Disqualified Stock and/or Preferred Stock
issued under this clause (20) (it being understood that any Indebtedness,
Disqualified Stock or Preferred Stock incurred pursuant to this clause (20)
shall cease to be deemed incurred or outstanding for purposes of this
clause (20) but shall be deemed incurred for the purposes of the first
paragraph of this covenant from and after the first date on which such
Restricted Subsidiary could have incurred such Indebtedness, Disqualified Stock
or Preferred Stock under the first paragraph of this covenant without reliance
on this clause (20));
provided, however
, that, on a
pro forma
basis, together with amounts incurred and outstanding by Restricted Subsidiaries
that are not Guarantors pursuant to the second proviso to the first paragraph of
this covenant and clauses (13)(b) and (15), no more than $250.0 million of
Indebtedness would be incurred and outstanding by Restricted Subsidiaries that
are not Guarantors;
(21)
Indebtedness
of the Issuer or any of its Restricted Subsidiaries consisting of (i) the
financing of insurance premiums or (ii) take-or-pay obligations contained
in supply arrangements, in each case, incurred in the ordinary course of
business; and
(22)
Indebtedness
consisting of Indebtedness issued by the Issuer or any of its Restricted
Subsidiaries to current or former officers, directors and employees thereof,
their respective estates, spouses or former spouses, in each case to finance the
purchase or redemption of Equity Interests of the Issuer or any direct or
indirect parent company of the Issuer to the extent described in clause (4)
of the second paragraph under the caption "—Limitation on Restricted
Payments."
For purposes
of determining compliance with this covenant:
(1)
in the event
that an item of Indebtedness, Disqualified Stock or Preferred Stock (or any
portion thereof) meets the criteria of more than one of the categories of
permitted Indebtedness, Disqualified Stock or Preferred Stock described in
clauses (1) through (22) above or is entitled to be incurred pursuant
to the first paragraph of this covenant, the Issuer, in its sole discretion,
will classify or reclassify such item of Indebtedness, Disqualified Stock or
Preferred Stock (or any portion thereof) and will only be required to include
the amount and type of such Indebtedness, Disqualified Stock or Preferred Stock
in one of the above clauses;
provided
that all Indebtedness outstanding
under the Credit Facilities on the Issue Date will be treated as incurred on the
Issue Date under clause (1) of the preceding paragraph; and
(2)
at the time
of incurrence, the Issuer will be entitled to divide and classify an item of
Indebtedness in more than one of the types of Indebtedness described in the
first and second paragraphs above.
Accrual of
interest, the accretion of accreted value and the payment of interest in the
form of additional Indebtedness, Disqualified Stock or Preferred Stock will not
be deemed to be an incurrence of Indebtedness, Disqualified Stock or Preferred
Stock for purposes of this covenant.
For purposes
of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the
relevant currency exchange rate in effect on the date such Indebtedness was
incurred, in the case of term debt, or first committed, in the case of revolving
credit debt;
provided
that if such Indebtedness is incurred to refinance
other Indebtedness denominated in a foreign currency, and such refinancing would
cause the applicable U.S. dollar-denominated restriction to be exceeded if
calculated at the relevant currency exchange rate in effect on the date of such
refinancing, such U.S. dollar-denominated restriction shall be deemed not to
have been
45
exceeded
so long as the principal amount of such refinancing Indebtedness does not exceed
the principal amount of such Indebtedness being refinanced.
The principal
amount of any Indebtedness incurred to refinance other Indebtedness, if incurred
in a different currency from the Indebtedness being refinanced, shall be
calculated based on the currency exchange rate applicable to the currencies in
which such respective Indebtedness is denominated that is in effect on the date
of such refinancing.
The Senior
Indenture provides that the Issuer will not, and will not permit any Guarantor
to, directly or indirectly, incur any Indebtedness (including Acquired
Indebtedness) that is subordinated or junior in right of payment to any
Indebtedness of the Issuer or such Guarantor, as the case may be, unless such
Indebtedness is expressly subordinated in right of payment to the Senior Notes
or such Guarantor's Guarantee to the extent and in the same manner as such
Indebtedness is subordinated to other Indebtedness of the Issuer or such
Guarantor, as the case may be;
provided
that this sentence shall not
apply to Indebtedness incurred under clause (1) of the second paragraph of this
covenant.
The Senior
Indenture will not treat (1) unsecured Indebtedness as subordinated or
junior to Secured Indebtedness merely because it is unsecured or (2) Senior
Indebtedness as subordinated or junior to any other Senior Indebtedness merely
because it has a junior priority with respect to the same collateral.
Liens
The Issuer
will not, and will not permit any Guarantor to, directly or indirectly, create,
incur, assume or suffer to exist any Lien (except Permitted Liens) that secures
obligations under any Indebtedness or any related Guarantee, on any asset or
property of the Issuer or any Guarantor now owned or hereafter acquired, or any
income or profits therefrom, or assign or convey any right to receive income
therefrom, unless:
(1)
in the case
of Liens securing Subordinated Indebtedness, the Senior Notes and related
Guarantees are secured by a Lien on such property, assets or proceeds that is
senior in priority to such Liens; or
(2)
in all other
cases, the Senior Notes or the Guarantees are equally and ratably secured or are
secured by a Lien on such property, assets or proceeds that is senior in
priority to such Liens;
except that the foregoing shall
not apply to (a) Liens securing Indebtedness permitted to be incurred under
Credit Facilities, including any letter of credit relating thereto, that was
permitted by the terms of the Senior Indenture to be incurred pursuant to
clause (1) of the second paragraph under "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock" and
(b) Liens incurred to secure Obligations in respect of any Indebtedness
permitted to be incurred pursuant to the covenant described above under
"—Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock";
provided
that, with respect to Liens securing
Obligations permitted under this subclause (b), at the time of incurrence
and after giving pro forma effect thereto, the Consolidated Secured Debt
Ratio would be no greater than 3.25 to 1.0. Any Lien which is granted
to secure the Senior Notes under this covenant shall be discharged at the same
time as the discharge of the Lien (other than through the exercise of remedies
with respect thereto) that gave rise to the obligation to so secure the
Senior Notes.
Merger,
Consolidation or Sale of All or Substantially All Assets
The Issuer
may not consolidate or merge with or into or wind up into (whether or not the
Issuer is the surviving corporation), or sell, assign, transfer, lease, convey
or otherwise dispose of all or substantially all of its properties or assets, in
one or more related transactions, to any Person unless:
(1)
the Issuer is
the surviving corporation or the Person formed by or surviving any such
consolidation or merger (if other than the Issuer) or to which such sale,
assignment, transfer, lease, conveyance or other disposition will have been made
is a corporation organized or existing under the laws of the jurisdiction of
46
organization
of the Issuer or the laws of the United States, any state thereof, the District
of Columbia, or any territory thereof (such Person, as the case may be, being
herein called the "
Successor Company
");
(2)
the Successor
Company, if other than the Issuer, expressly assumes all the obligations of the
Issuer under the Senior Notes and the Senior Indenture pursuant to supplemental
indentures or other documents or instruments in form reasonably satisfactory to
the Trustee;
(3)
immediately
after such transaction, no Default exists;
(4)
immediately
after giving
pro forma
effect to such transaction and any related
financing transactions, as if such transactions had occurred at the beginning of
the applicable four-quarter period,
(a)
the
Successor Company would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the
first sentence of the covenant described under "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock," or
(b)
the
Fixed Charge Coverage Ratio for the Successor Company, the Issuer and its
Restricted Subsidiaries would be greater than such ratio for the Issuer and its
Restricted Subsidiaries immediately prior to such transaction;
(5)
each
Guarantor, unless it is the other party to the transactions described above, in
which case clause (b) of the second succeeding paragraph shall apply, shall
have by supplemental indenture confirmed that its Guarantee shall apply to such
Person's obligations under the Senior Indenture, the Senior Notes and the
Registration Rights Agreement; and
(6)
the Issuer
shall have delivered to the Trustee an Officer's Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such
supplemental indentures, if any, comply with the Senior Indenture.
The Successor
Company will succeed to, and be substituted for the Issuer, as the case may be,
under the Senior Indenture, the Guarantees and the Senior Notes, as applicable.
Notwithstanding the foregoing clauses (3) and (4),
(1)
any
Restricted Subsidiary may consolidate with or merge into or transfer all or part
of its properties and assets to the Issuer, and
(2)
the Issuer
may merge with an Affiliate of the Issuer, as the case may be, solely for the
purpose of reincorporating the Issuer in a State of the United States or any
state thereof, the District of Columbia or any territory thereof so long as the
amount of Indebtedness of the Issuer and its Restricted Subsidiaries is not
increased thereby.
Subject to
certain limitations described in the Senior Indenture governing release of a
Guarantee upon the sale, disposition or transfer of a Guarantor, no Guarantor
will, and the Issuer will not permit any Guarantor to, consolidate or merge with
or into or wind up into (whether or not the Issuer or Guarantor is the surviving
corporation), or sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of its properties or assets, in one or more related
transactions, to any Person unless:
(1)
(a) such
Guarantor is the surviving corporation or the Person formed by or surviving any
such consolidation or merger (if other than such Guarantor) or to which such
sale, assignment, transfer, lease, conveyance or other disposition will have
been made is a corporation, partnership, limited partnership, limited liability
corporation or trust organized or existing under the laws of the jurisdiction of
organization of such Guarantor, as the case may be, or the laws of the United
States, any state thereof, the District of Columbia, or any territory thereof
(such Guarantor or such Person, as the case may be, being herein called the
"
Successor Person
");
47
(b)
the
Successor Person, if other than such Guarantor, expressly assumes all the
obligations of such Guarantor under the Senior Indenture and such Guarantor's
related Guarantee pursuant to supplemental indentures or other documents or
instruments in form reasonably satisfactory to the Trustee;
(c)
immediately
after such transaction, no Default exists; and
(d)
the
Issuer shall have delivered to the Trustee an Officer's Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and
such supplemental indentures, if any, comply with the Senior Indenture; or
(2)
the
transaction is made in compliance with the covenant described under "Repurchase
at the Option of Holders—Asset Sales."
Subject to
certain limitations described in the Senior Indenture, the Successor Person will
succeed to, and be substituted for, such Guarantor under the Senior Indenture
and such Guarantor's Guarantee. Notwithstanding the foregoing, any Guarantor may
(i) merge into or transfer all or part of its properties and assets to
another Guarantor or the Issuer, (ii) merge with an Affiliate of the Issuer
solely for the purpose of reincorporating the Guarantor in the United States,
any state thereof, the District of Columbia or any territory thereof or
(iii) convert into a corporation, partnership, limited partnership, limited
liability corporation or trust organized or existing under the laws of the
jurisdiction of organization of such Guarantor.
Transactions
with Affiliates
The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, make any
payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate of the Issuer
(each of the foregoing, an "
Affiliate Transaction
") involving aggregate
payments or consideration in excess of $15.0 million, unless:
(1)
such
Affiliate Transaction is on terms that are not materially less favorable to the
Issuer or its relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Issuer or such Restricted Subsidiary
with an unrelated Person on an arm's-length basis; and
(2)
the Issuer
delivers to the Trustee with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate payments or consideration in
excess of $25.0 million, a resolution adopted by the majority of the board
of directors of the Issuer approving such Affiliate Transaction and set forth in
an Officer's Certificate certifying that such Affiliate Transaction complies
with clause (1) above.
The foregoing
provisions will not apply to the following:
(1)
transactions
between or among the Issuer or any of its Restricted Subsidiaries;
(2)
Restricted
Payments permitted by the provisions of the Senior Indenture described above
under the covenant "—Limitation on Restricted Payments" and the definition of
"Permitted Investments";
(3)
the payment
of management, consulting, monitoring and advisory fees and related expenses to
the Investors pursuant to the Sponsor Management Agreement (plus any unpaid
management, consulting, monitoring and advisory fees and related expenses
accrued in any prior year) and the termination fees pursuant to the Sponsor
Management Agreement, in each case as in effect on the Issue Date, or any
amendment thereto (so long as any such amendment is not disadvantageous in the
good faith judgment of the board of directors of the Issuer to the Holders when
taken as a whole as compared to the Sponsor Management Agreement in effect on
the Issue Date);
(4)
the payment
of reasonable and customary fees paid to, and indemnities provided for the
benefit of, officers, directors, employees or consultants of Issuer, any of its
direct or indirect parent companies or any of its Restricted Subsidiaries;
48
(5)
transactions
in which the Issuer or any of its Restricted Subsidiaries, as the case may be,
delivers to the Trustee a letter from an Independent Financial Advisor stating
that such transaction is fair to the Issuer or such Restricted Subsidiary from a
financial point of view or stating that the terms are not materially less
favorable to the Issuer or its relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Issuer or such
Restricted Subsidiary with an unrelated Person on an arm's-length basis;
(6)
any agreement
as in effect as of the Issue Date, or any amendment thereto (so long as any such
amendment is not disadvantageous to the Holders when taken as a whole as
compared to the applicable agreement as in effect on the Issue Date in the
reasonable determination of the Issuer);
(7)
the existence
of, or the performance by the Issuer or any of its Restricted Subsidiaries of
its obligations under the terms of, any stockholders agreement (including any
registration rights agreement or purchase agreement related thereto) to which it
is a party as of the Issue Date and any similar agreements which it may enter
into thereafter;
provided
,
however
, that the existence of, or the
performance by the Issuer or any of its Restricted Subsidiaries of obligations
under any future amendment to any such existing agreement or under any similar
agreement entered into after the Issue Date shall only be permitted by this
clause (7) to the extent that the terms of any such amendment or new
agreement are not otherwise disadvantageous to the Holders when taken as a whole
in the reasonable determination of the Issuer;
(8)
the
Transactions and the payment of all fees and expenses related to the
Transactions, in each case as disclosed in the offering documentation relating
to the outstanding notes;
(9)
transactions
with customers, clients, suppliers, or purchasers or sellers of goods or
services, in each case in the ordinary course of business and otherwise in
compliance with the terms of the Senior Indenture which are fair to the Issuer
and its Restricted Subsidiaries, in the reasonable determination of the board of
directors of the Issuer or the senior management thereof, or are on terms at
least as favorable as might reasonably have been obtained at such time from an
unaffiliated party;
(10)
the issuance
of Equity Interests (other than Disqualified Stock) of the Issuer to any
Permitted Holder or to any director, officer, employee or consultant;
(11)
sales of
accounts receivable, or participations therein, in connection with the ABL
Facility and any Receivables Facility;
(12)
payments by
the Issuer or any of its Restricted Subsidiaries to any of the Investors made
for any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including, without limitation,
in connection with acquisitions or divestitures, which payments are approved by
a majority of the board of directors of the Issuer in good faith;
(13)
payments or
loans (or cancellation of loans) to employees or consultants of the Issuer, any
of its direct or indirect parent companies or any of its Restricted Subsidiaries
and employment agreements, stock option plans and other similar arrangements
with such employees or consultants which, in each case, are approved by the
Issuer in good faith;
(14)
investments
by the Investors in securities of the Issuer or any of its Restricted
Subsidiaries so long as (i) the investment is being offered generally to
other investors on the same or more favorable terms and (ii) the investment
constitutes less than 5.0% of the proposed or outstanding issue amount of such
class of securities;
(15)
payments to
or from, and transactions with, any joint ventures in the ordinary course of
business; and
(16)
payments by
the Issuer (and any direct or indirect parent thereof) and its Subsidiaries
pursuant to tax sharing agreements among the Issuer (and any such parent) and
its Subsidiaries on customary terms to the extent attributable to the ownership
or operation of the Issuer and its Subsidiaries;
provided
that in each
case the amount of such payments in any fiscal year does not exceed the amount
that the Issuer, its Restricted Subsidiaries and its
49
Unrestricted
Subsidiaries (to the extent of amounts received from Unrestricted Subsidiaries)
would be required to pay in respect of foreign, federal, state and local taxes
for such fiscal year were the Issuer and its Restricted Subsidiaries (to the
extent described above) to pay such taxes separately from any such parent
entity.
Dividend
and Other Payment Restrictions Affecting Restricted Subsidiaries
The Issuer
will not, and will not permit any of its Restricted Subsidiaries that are not
Guarantors to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any consensual encumbrance or consensual restriction
on the ability of any such Restricted Subsidiary to:
(1)
(a) pay
dividends or make any other distributions to the Issuer or any of its Restricted
Subsidiaries on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits, or
(b)
pay
any Indebtedness owed to the Issuer or any of its Restricted Subsidiaries;
(2)
make loans or
advances to the Issuer or any of its Restricted Subsidiaries; or
(3)
sell, lease
or transfer any of its properties or assets to the Issuer or any of its
Restricted Subsidiaries,
except (in each case) for such
encumbrances or restrictions existing under or by reason of:
(a)
contractual
encumbrances or restrictions in effect on the Issue Date, including pursuant to
the Senior Credit Facilities and the related documentation;
(b)
the
Senior Indenture, the Senior Notes, the Senior Subordinated Indenture and the
Senior Subordinated Notes;
(c)
purchase
money obligations for property acquired in the ordinary course of business that
impose restrictions of the nature discussed in clause (3) above on the
property so acquired;
(d)
applicable
law or any applicable rule, regulation or order;
(e)
any
agreement or other instrument of a Person acquired by the Issuer or any
Restricted Subsidiary in existence at the time of such acquisition (but not
created in connection therewith or in contemplation thereof), which encumbrance
or restriction is not applicable to any Person, or the properties or assets of
any Person, other than the Person and its Subsidiaries, or the property or
assets of the Person and its Subsidiaries, so acquired;
(f)
contracts
for the sale of assets, including customary restrictions with respect to a
Subsidiary of the Issuer pursuant to an agreement that has been entered into for
the sale or disposition of all or substantially all of the Capital Stock or
assets of such Subsidiary;
(g)
Secured
Indebtedness that limits the right of the debtor to dispose of the assets
securing such Indebtedness that is otherwise permitted to be incurred pursuant
to the covenants described under "—Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock" and "—Liens";
(h)
restrictions
on cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business;
(i)
other
Indebtedness, Disqualified Stock or Preferred Stock of Foreign Subsidiaries
permitted to be incurred subsequent to the Issue Date pursuant to the provisions
of the covenant described under "—Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock";
50
(j)
customary
provisions in joint venture agreements and other agreements or arrangements
relating solely to such joint venture;
(k)
customary
provisions contained in leases or licenses of intellectual property and other
agreements, in each case entered into in the ordinary course of business;
(l)
any
encumbrances or restrictions of the type referred to in clauses (1),
(2) and (3) above imposed by any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings of the contracts, instruments or obligations referred to in clauses
(a) through (k) above;
provided
that such amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are, in the good faith judgment of the Issuer, no
more restrictive with respect to such encumbrance and other restrictions taken
as a whole than those prior to such amendment, modification, restatement,
renewal, increase, supplement, refunding, replacement or refinancing; and
(m)
restrictions
created in connection with any Receivables Facility that, in the good faith
determination of the Issuer, are necessary or advisable to effect the
transactions contemplated under such Receivables Facility.
Limitation
on Guarantees of Indebtedness by Restricted Subsidiaries
The Issuer
will not permit any of its Wholly-Owned Subsidiaries that are Restricted
Subsidiaries (and non-Wholly-Owned Subsidiaries if such non-Wholly-Owned
Subsidiaries guarantee other capital markets debt securities of the Issuer or
any Guarantor), other than a Guarantor, a Foreign Subsidiary or a Receivables
Subsidiary, to guarantee the payment of any Indebtedness of the Issuer or any
other Guarantor unless:
(1)
such
Restricted Subsidiary within 30 days executes and delivers a supplemental
indenture to the Senior Indenture providing for a Guarantee by such Restricted
Subsidiary, except that with respect to a guarantee of Indebtedness of the
Issuer or any Guarantor:
(a)
if
the Senior Notes or such Guarantor's Guarantee are subordinated in right of
payment to such Indebtedness, the Guarantee under the supplemental indenture
shall be subordinated to such Restricted Subsidiary's guarantee with respect to
such Indebtedness substantially to the same extent as the Senior Notes are
subordinated to such Indebtedness; and
(b)
if
such Indebtedness is by its express terms subordinated in right of payment to
the Senior Notes or such Guarantor's Guarantee, any such guarantee by such
Restricted Subsidiary with respect to such Indebtedness shall be subordinated in
right of payment to such Guarantee substantially to the same extent as such
Indebtedness is subordinated to the Senior Notes; and
(2)
such
Restricted Subsidiary waives, and will not in any manner whatsoever claim or
take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Issuer or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its
Guarantee;
provided
that this
covenant shall not be applicable to (i) any guarantee of any Restricted
Subsidiary that existed at the time such Person became a Restricted Subsidiary
and was not incurred in connection with, or in contemplation of, such Person
becoming a Restricted Subsidiary and (ii) guarantees of any Receivables
Facility by any Receivables Subsidiary.
Reports
and Other Information
Notwithstanding
that the Issuer may not be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act or otherwise report on an annual
and quarterly basis on forms provided for such annual and quarterly reporting
pursuant to rules and regulations promulgated by the SEC, the Senior Indenture
will require the
51
Issuer
to file with the SEC (and make available to the Trustee and Holders (without
exhibits), without cost to any Holder, within 15 days after it files with
the SEC) from and after the Issue Date,
(1)
within
90 days (or any other time period then in effect under the rules and
regulations of the Exchange Act with respect to the filing of a Form 10-K
by a non-accelerated filer) after the end of each fiscal year, annual reports on
Form 10-K, or any successor or comparable form, containing the information
required to be contained therein, or required in such successor or comparable
form;
(2)
within
45 days after the end of each of the first three fiscal quarters of each
fiscal year, reports on Form 10-Q containing all information that would be
required to be contained in Form 10-Q, or any successor or comparable
form;
(3)
promptly from
time to time after the occurrence of an event required to be therein reported,
such other reports on Form 8-K, or any successor or comparable form;
and
(4)
any other
information, documents and other reports which the Issuer would be required to
file with the SEC if it were subject to Section 13 or 15(d) of the Exchange
Act;
in each case in a manner that
complies in all material respects with the requirements specified in such form;
provided
that the Issuer shall not be so obligated to file such reports
with the SEC if the SEC does not permit such filing, in which event the Issuer
will make available such information to prospective purchasers of Senior Notes,
in addition to providing such information to the Trustee and the Holders, in
each case within 15 days after the time the Issuer would be required to
file such information with the SEC if it were subject to Section 13 or
15(d) of the Exchange Act. In addition, to the extent not satisfied by the
foregoing, the Issuer will agree that, for so long as any Senior Notes are
outstanding, it will furnish to Holders and to securities analysts and
prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.
In the event
that any direct or indirect parent company of the Issuer becomes a Guarantor of
the Senior Notes, the Senior Indenture will permit the Issuer to satisfy its
obligations in this covenant with respect to financial information relating to
the Issuer by furnishing financial information relating to such parent;
provided
that the same is accompanied by consolidating information that
explains in reasonable detail the differences between the information relating
to such parent, on the one hand, and the information relating to the Issuer and
its Restricted Subsidiaries on a standalone basis, on the other hand.
Notwithstanding
the foregoing, such requirements shall be deemed satisfied prior to the
commencement of the exchange offer or the effectiveness of the shelf
registration statement described in the Registration Rights Agreement
(1) by the filing with the SEC of the exchange offer registration statement
or shelf registration statement (or any other similar registration statement),
and any amendments thereto, with such financial information that satisfies
Regulation S-X, subject to exceptions consistent with the presentation of
financial information in the offering documentation relating to the outstanding
notes, to the extent filed within the times specified above, or (2) by
posting reports that would be required to be filed substantially in the form
required by the SEC on the Issuer's website (or that of any of its parent
companies) or providing such reports to the Trustee within 15 days after
the time the Issuer would be required to file such information with the SEC if
it were subject to Section 13 or 15(d) of the Exchange Act, the financial
information (including a "Management's Discussion and Analysis of Financial
Condition and Results of Operations" section) that would be required to be
included in such reports, subject to exceptions consistent with the presentation
of financial information in the offering documentation relating to the
outstanding notes, to the extent filed within the times specified above.
Notwithstanding anything herein to the contrary, the Issuer will not be deemed
to have failed to comply with any of its agreements set forth under this
covenant for purposes of clause (3) under "Events of Default and Remedies"
until 120 days after the date any report is required to be filed with the
SEC (or posted on the Issuer's website or provided to the Trustee) pursuant to
this covenant.
52
Events
of Default and Remedies
The Senior
Indenture provides that each of the following is an "
Event of
Default
":
(1)
default in
payment when due and payable, upon redemption, acceleration or otherwise, of
principal of, or premium, if any, on the Senior Notes;
(2)
default for
30 days or more in the payment when due of interest or Special Interest on
or with respect to the Senior Notes;
(3)
failure by
the Issuer or any Guarantor for 60 days after receipt of written notice
given by the Trustee or the Holders of not less 30% in principal amount of the
Senior Notes then outstanding under the Senior Indenture to comply with any of
its obligations, covenants or agreements (other than a default referred to in
clauses (1) and (2) above) contained in the Senior Indenture or the
Senior Notes;
(4)
default under
any mortgage, indenture or instrument under which there is issued or by which
there is secured or evidenced any Indebtedness for money borrowed by the Issuer
or any of its Restricted Subsidiaries or the payment of which is guaranteed by
the Issuer or any of its Restricted Subsidiaries, other than Indebtedness owed
to the Issuer or a Restricted Subsidiary, whether such Indebtedness or guarantee
now exists or is created after the issuance of the Senior Notes, if both:
(a)
such
default either results from the failure to pay any principal of such
Indebtedness at its stated final maturity (after giving effect to any applicable
grace periods) or relates to an obligation other than the obligation to pay
principal of any such Indebtedness at its stated final maturity and results in
the holder or holders of such Indebtedness causing such Indebtedness to become
due prior to its stated maturity; and
(b)
the
principal amount of such Indebtedness, together with the principal amount of any
other such Indebtedness in default for failure to pay principal at stated final
maturity (after giving effect to any applicable grace periods), or the maturity
of which has been so accelerated, aggregate $50.0 million or more at any
one time outstanding;
(5)
failure by
the Issuer or any Significant Subsidiary (or group of Subsidiaries that together
would constitute a Significant Subsidiary) to pay final judgments aggregating in
excess of $50.0 million, which final judgments remain unpaid, undischarged
and unstayed for a period of more than 60 days after such judgment becomes
final, and in the event such judgment is covered by insurance, an enforcement
proceeding has been commenced by any creditor upon such judgment or decree which
is not promptly stayed;
(6)
certain
events of bankruptcy or insolvency with respect to the Issuer or any Significant
Subsidiary (or group of Subsidiaries that together would constitute a
Significant Subsidiary); or
(7)
the Guarantee
of any Significant Subsidiary (or group of Subsidiaries that together would
constitute a Significant Subsidiary) shall for any reason cease to be in full
force and effect or be declared null and void or any responsible officer (or the
responsible officers of any group of Subsidiaries that together would constitute
a Significant Subsidiary) of any Guarantor that is a Significant Subsidiary, as
the case may be, denies that it has any further liability under its Guarantee or
gives notice to such effect, other than by reason of the termination of the
Senior Indenture or the release of any such Guarantee in accordance with the
Senior Indenture.
If any Event
of Default (other than of a type specified in clause (6) above) occurs and
is continuing under the Senior Indenture, the Trustee or the Holders of at least
30% in principal amount of the Senior Notes then outstanding under the Senior
Indenture may declare the principal, premium, if any, interest and any other
monetary obligations on all the Senior Notes then outstanding under the Senior
Indenture to be due and payable immediately.
Upon the
effectiveness of such declaration, such principal premium, if any, and interest
will be due and payable immediately. Notwithstanding the foregoing, in the case
of an Event of Default arising under clause (6) of
53
the
first paragraph of this section, all outstanding Senior Notes will become due
and payable without further action or notice. The Senior Indenture provides that
the Trustee may withhold from the Holders notice of any continuing Default,
except a Default relating to the payment of principal, premium, if any, or
interest, if it determines that withholding notice is in their interest. In
addition, the Trustee shall have no obligation to accelerate the Senior Notes if
in the best judgment of the Trustee acceleration is not in the best interest of
the Holders.
The Senior
Indenture provides that the Holders of a majority in aggregate principal amount
of the Senior Notes then outstanding under the Senior Indenture by notice to the
Trustee may on behalf of the Holders of all of the Senior Notes waive any
existing Default and its consequences under the Senior Indenture except a
continuing Default in the payment of interest on, premium, if any, or the
principal of any Senior Note held by a non-consenting Holder. In the event of
any Event of Default specified in clause (4) above, such Event of Default
and all consequences thereof (excluding any resulting payment default, other
than as a result of acceleration of the Senior Notes) shall be annulled, waived
and rescinded, automatically and without any action by the Trustee or the
Holders, if within 20 days after such Event of Default arose:
(1)
the
Indebtedness or guarantee that is the basis for such Event of Default has been
discharged;
(2)
the Holders
thereof have rescinded or waived the acceleration, notice or action (as the case
may be) giving rise to such Event of Default; or
(3)
the default
that is the basis for such Event of Default has been cured.
Subject to
the provisions of the Senior Indenture relating to the duties of the Trustee
thereunder, in case an Event of Default occurs and is continuing, the Trustee
will be under no obligation to exercise any of the rights or powers under the
Senior Indenture at the request or direction of any of the Holders unless the
Holders have offered to the Trustee reasonable indemnity or security against any
loss, liability or expense. Except to enforce the right to receive payment of
principal, premium, if any, or interest when due, no Holder may pursue any
remedy with respect to the Senior Indenture or the Senior Notes unless:
(1)
such Holder
has previously given the Trustee notice that an Event of Default is
continuing;
(2)
Holders of at
least 30% in principal amount of the then outstanding Senior Notes have
requested the Trustee to pursue the remedy;
(3)
Holders have
offered the Trustee reasonable security or indemnity against any loss, liability
or expense;
(4)
the Trustee
has not complied with such request within 60 days after the receipt thereof
and the offer of security or indemnity; and
(5)
Holders of a
majority in principal amount of the then outstanding Senior Notes have not given
the Trustee a direction inconsistent with such request within such 60-day
period.
Subject to
certain restrictions, under the Senior Indenture the Holders of a majority in
principal amount of the total outstanding Senior Notes are given the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the
Trustee. The Trustee, however, may refuse to follow any direction that conflicts
with law or the Senior Indenture or that the Trustee determines is unduly
prejudicial to the rights of any other Holder or that would subject the Trustee
to personal liability.
The Senior
Indenture provides that the Issuer is required to deliver to the Trustee
annually a statement regarding compliance with the Senior Indenture, and the
Issuer is required, within five Business Days upon becoming aware of any
Default, to deliver to the Trustee a statement specifying such Default.
54
No
Personal Liability of Directors, Officers, Employees and Shareholders
No director,
officer, employee, incorporator or shareholder of the Issuer or any Guarantor or
any of their parent companies (other than the Issuer and the Guarantors) shall
have any liability for any obligations of the Issuer or the Guarantors under the
Senior Notes, the Guarantees or the Senior Indenture or for any claim based on,
in respect of, or by reason of such obligations or their creation. Each Holder
by accepting the Senior Notes waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Senior Notes. Such
waiver may not be effective to waive liabilities under the federal securities
laws, and it is the view of the SEC that such a waiver is against public
policy.
Legal Defeasance and Covenant
Defeasance
The
obligations of the Issuer and the Guarantors under the Senior Indenture will
terminate (other than certain obligations) and will be released upon payment in
full of all of the Senior Notes issued under the Senior Indenture. The Issuer
may, at its option and at any time, elect to have all of its obligations
discharged with respect to the Senior Notes issued under the Senior Indenture
and have the Issuer's and each Guarantor's obligation discharged with respect to
its Guarantee ("
Legal Defeasance
") and cure all then existing Events of
Default except for:
(1)
the
rights of Holders of Senior Notes issued under the Senior Indenture to receive
payments in respect of the principal of, premium, if any, and interest on the
Senior Notes when such payments are due solely out of the trust created pursuant
to the Senior Indenture;
(2)
the
Issuer's obligations with respect to Senior Notes concerning issuing temporary
notes, registration of such Senior Notes, mutilated, destroyed, lost or stolen
Senior Notes and the maintenance of an office or agency for payment and money
for security payments held in trust;
(3)
the
rights, powers, trusts, duties and immunities of the Trustee, and the Issuer's
obligations in connection therewith; and
(4)
the
Legal Defeasance provisions of the Senior Indenture.
In addition,
the Issuer may, at its option and at any time, elect to have its obligations and
those of each Guarantor released with respect to certain covenants that are
described in the Senior Indenture ("
Covenant Defeasance
") and thereafter
any omission to comply with such obligations shall not constitute a Default with
respect to the Senior Notes. In the event Covenant Defeasance occurs, certain
events (not including bankruptcy, receivership, rehabilitation and insolvency
events pertaining to the Issuer) described under "Events of Default and
Remedies" will no longer constitute an Event of Default with respect to the
Senior Notes.
In order to
exercise either Legal Defeasance or Covenant Defeasance with respect to the
Senior Notes:
(1)
the
Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders, cash in U.S. dollars, Government Securities, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally
recognized firm of independent public accountants, to pay the principal of,
premium, if any, and interest due on the Senior Notes issued under the Senior
Indenture on the stated maturity date or on the redemption date, as the case may
be, of such principal, premium, if any, or interest on such Senior Notes, and
the Issuer must specify whether such Senior Notes are being defeased to maturity
or to a particular redemption date;
(2)
in
the case of Legal Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject
to customary assumptions and exclusions,
(a)
the
Issuer has received from, or there has been published by, the United States
Internal Revenue Service a ruling, or
55
(b)
since
the original issuance of the Senior Notes, there has been a change in the
applicable U.S. federal income tax law,
in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, subject to
customary assumptions and exclusions, the Holders will not recognize income,
gain or loss for U.S. federal income tax purposes, as applicable, as a result of
such Legal Defeasance and will be subject to U.S. federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if
such Legal Defeasance had not occurred;
(3)
in
the case of Covenant Defeasance, the Issuer shall have delivered to the Trustee
an Opinion of Counsel reasonably acceptable to the Trustee confirming that,
subject to customary assumptions and exclusions, the Holders will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such
Covenant Defeasance and will be subject to such tax on the same amounts, in the
same manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;
(4)
no
Default (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other
Indebtedness and, in each case, the granting of Liens in connection therewith)
shall have occurred and be continuing on the date of such deposit;
(5)
such
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under the Senior Credit Facilities, the
Senior Subordinated Indenture, the Senior Subordinated Notes or any other
material agreement or instrument (other than the Senior Indenture) to which the
Issuer or any Guarantor is a party or by which the Issuer or any Guarantor is
bound (other than that resulting from borrowing funds to be applied to make such
deposit and any similar and simultaneous deposit relating to other Indebtedness
and, in each case, the granting of Liens in connection therewith);
(6)
the
Issuer shall have delivered to the Trustee an Opinion of Counsel to the effect
that, as of the date of such opinion and subject to customary assumptions and
exclusions following the deposit, the trust funds will not be subject to the
effect of Section 547 of Title 11 of the United States Code;
(7)
the
Issuer shall have delivered to the Trustee an Officer's Certificate stating that
the deposit was not made by the Issuer with the intent of defeating, hindering,
delaying or defrauding any creditors of the Issuer or any Guarantor or others;
and
(8)
the
Issuer shall have delivered to the Trustee an Officer's Certificate and an
Opinion of Counsel (which Opinion of Counsel may be subject to customary
assumptions and exclusions) each stating that all conditions precedent provided
for or relating to the Legal Defeasance or the Covenant Defeasance, as the case
may be, have been complied with.
Satisfaction and
Discharge
The Senior
Indenture will be discharged and will cease to be of further effect as to all
Senior Notes issued thereunder, when either:
(1)
all
Senior Notes theretofore authenticated and delivered, except lost, stolen or
destroyed Senior Notes which have been replaced or paid and Senior Notes for
whose payment money has theretofore been deposited in trust, have been delivered
to the Trustee for cancellation; or
(2)
(a)
all Senior Notes not theretofore delivered to the Trustee for cancellation have
become due and payable by reason of the making of a notice of redemption or
otherwise, will become due and payable within one year or may be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Issuer, and the Issuer or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders, cash in U.S. dollars, Government
Securities, or a
56
combination
thereof, in such amounts as will be sufficient without consideration of any
reinvestment of interest to pay and discharge the entire indebtedness on the
Senior Notes not theretofore delivered to the Trustee for cancellation for
principal, premium, if any, and accrued interest to the date of maturity or
redemption;
(b)
no
Default (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other
Indebtedness and, in each case, the granting of Liens in connection therewith)
with respect to the Senior Indenture or the Senior Notes shall have occurred and
be continuing on the date of such deposit or shall occur as a result of such
deposit, and such deposit will not result in a breach or violation of, or
constitute a default under, the Senior Credit Facilities, the Senior
Subordinated Indenture, the Senior Subordinated Notes or any other material
agreement or instrument (other than the Senior Indenture) to which the Issuer or
any Guarantor is a party or by which the Issuer or any Guarantor is bound (other
than that resulting from borrowing funds to be applied to make such deposit and
any similar and simultaneous deposit relating to other Indebtedness and, in each
case, the granting of Liens in connection therewith);
(c)
the
Issuer has paid or caused to be paid all sums payable by it under the Senior
Indenture; and
(d)
the
Issuer has delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Senior Notes at maturity or the
redemption date, as the case may be.
In addition,
the Issuer must deliver an Officer's Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge
have been satisfied.
Amendment, Supplement and
Waiver
Except as
provided in the next two succeeding paragraphs, the Senior Indenture, any
Guarantee, and the Senior Notes may be amended or supplemented with the consent
of the Holders of at least a majority in principal amount of the Senior Notes
then outstanding, including consents obtained in connection with a purchase of,
or tender offer or exchange offer for, Senior Notes, and any existing Default or
compliance with any provision of the Senior Indenture, the Senior Notes issued
thereunder, any Guarantee may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Senior Notes, other than
Senior Notes beneficially owned by the Issuer or its Affiliates (including
consents obtained in connection with a purchase of or tender offer or exchange
offer for the Senior Notes).
The Senior
Indenture provides that, without the consent of each affected Holder, an
amendment or waiver may not, with respect to any Senior Notes held by a
non-consenting Holder:
(1)
reduce
the principal amount of such Senior Notes whose Holders must consent to an
amendment, supplement or waiver;
(2)
reduce
the principal of or change the fixed final maturity of any such Senior Note or
alter or waive the provisions with respect to the redemption of such Senior
Notes (other than provisions relating to the covenants described above under the
caption "Repurchase at the Option of Holders");
(3)
reduce
the rate of or change the time for payment of interest on any Senior Note;
(4)
waive
a Default in the payment of principal of or premium, if any, or interest on the
Senior Notes, except a rescission of acceleration of the Senior Notes by the
Holders of at least a majority in aggregate principal amount of the Senior Notes
and a waiver of the payment default that resulted from such acceleration, or in
respect of a covenant or provision contained in the Senior Indenture or any
Guarantee which cannot be amended or modified without the consent of all
Holders;
57
(5)
make
any Senior Note payable in money other than that stated therein;
(6)
make
any change in the provisions of the Senior Indenture relating to waivers of past
Defaults or the rights of Holders to receive payments of principal of or
premium, if any, or interest on the Senior Notes;
(7)
make
any change in these amendment and waiver provisions;
(8)
impair
the right of any Holder to receive payment of principal of, or interest on such
Holder's Senior Notes on or after the due dates therefor or to institute suit
for the enforcement of any payment on or with respect to such Holder's Senior
Notes;
(9)
make
any change to or modify the ranking of the Senior Notes that would adversely
affect the Holders; or
(10)
except
as expressly permitted by the Senior Indenture, modify the Guarantees of any
Significant Subsidiary in any manner adverse to the Holders.
Notwithstanding
the foregoing, the Issuer, any Guarantor (with respect to a Guarantee or the
Senior Indenture to which it is a party) and the Trustee may amend or supplement
the Senior Indenture, any Guarantee or Notes without the consent of any
Holder;
(1)
to
cure any ambiguity, omission, mistake, defect or inconsistency;
(2)
to
provide for uncertificated Senior Notes of such series in addition to or in
place of certificated Senior Notes;
(3)
to
comply with the covenant relating to mergers, consolidations and sales of
assets;
(4)
to
provide for the assumption of the Issuer's or any Guarantor's obligations to the
Holders;
(5)
to
make any change that would provide any additional rights or benefits to the
Holders or that does not adversely affect the legal rights under the Senior
Indenture of any such Holder;
(6)
to
add covenants for the benefit of the Holders or to surrender any right or power
conferred upon the Issuer or any Guarantor;
(7)
to
comply with requirements of the SEC in order to effect or maintain the
qualification of the Senior Indenture under the Trust Indenture Act;
(8)
to
evidence and provide for the acceptance and appointment under the Senior
Indenture of a successor Trustee thereunder pursuant to the requirements
thereof;
(9)
to
provide for the issuance of Senior Exchange Notes or private exchange notes,
which are identical to Senior Exchange Notes except that they are not freely
transferable;
(10)
to
add a Guarantor under the Senior Indenture;
(11)
to
conform the text of the Senior Indenture, Guarantees or the Senior Notes to any
provision of this "Description of Senior Notes" to the extent that such
provision in this "Description of Senior Notes" was intended to be a verbatim
recitation of a provision of the Senior Indenture, Guarantee or Senior Notes;
or
58
(12)
to
make any amendment to the provisions of the Senior Indenture relating to the
transfer and legending of Senior Notes as permitted by the Senior Indenture,
including, without limitation, to facilitate the issuance and administration of
the Senior Notes;
provided
,
however
, that (i) compliance with
the Senior Indenture as so amended would not result in Senior Notes being
transferred in violation of the Securities Act or any applicable securities law
and (ii) such amendment does not materially and adversely affect the rights
of Holders to transfer Senior Notes.
The consent
of the Holders will not be necessary under the Senior Indenture to approve the
particular form of any proposed amendment. It is sufficient if such consent
approves the substance of the proposed amendment.
Notices
Notices given
by publication will be deemed given on the first date on which publication is
made and notices given by first-class mail, postage prepaid, will be deemed
given five calendar days after mailing.
Concerning the
Trustee
The Senior
Indenture contains certain limitations on the rights of the Trustee thereunder,
should it become a creditor of the Issuer, to obtain payment of claims in
certain cases, or to realize on certain property received in respect of any such
claim as security or otherwise. The Trustee is permitted to engage in other
transactions; however, if it acquires any conflicting interest it must eliminate
such conflict within 90 days, apply to the SEC for permission to continue
or resign.
The Senior
Indenture provides that the Holders of a majority in principal amount of the
outstanding Senior Notes will have the right to direct the time, method and
place of conducting any proceeding for exercising any remedy available to the
Trustee, subject to certain exceptions. The Senior Indenture provides that in
case an Event of Default shall occur (which shall not be cured), the Trustee
will be required, in the exercise of its power, to use the degree of care of a
prudent person in the conduct of his own affairs. Subject to such provisions,
the Trustee is under no obligation to exercise any of its rights or powers under
the Senior Indenture at the request of any Holder, unless such Holder shall have
offered to the Trustee security and indemnity satisfactory to it against any
loss, liability or expense.
Governing Law
The Senior
Indenture, the Senior Notes and any Guarantee are governed by and construed in
accordance with the laws of the State of New York.
Certain Definitions
Set forth
below are certain defined terms used in the Senior Indenture. For purposes of
the Senior Indenture, unless otherwise specifically indicated, the term
"consolidated" with respect to any Person refers to such Person on a
consolidated basis in accordance with GAAP, but excluding from such
consolidation any Unrestricted Subsidiary as if such Unrestricted Subsidiary
were not an Affiliate of such Person.
"
ABL
Facility
" means the Asset-Based Revolving Credit Agreement to be entered
into as of the Issue Date by and among the Issuer, the lenders party thereto in
their capacities as lenders thereunder and The CIT Group/Business
Credit Inc., as Administrative Agent, including any guarantees, collateral
documents, instruments and agreements executed in connection therewith, and any
amendments, supplements, modifications, extensions, renewals, restatements,
refundings or refinancings thereof and any indentures, notes, debentures or
credit facilities or commercial paper facilities with banks or other
institutional lenders or investors that replace, refund or refinance any part of
the loans, notes, other credit facilities or commitments thereunder, including
any such replacement, refunding or refinancing facility or indenture that
increases the amount borrowable thereunder or alters the maturity thereof
(
provided
that such increase in borrowings is permitted under "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock" above).
59
"
ABL
Facility Cap
" means an amount equal to the greater of
(x) $1,125.0 million and (y) the sum of (i) 85% of the net
orderly liquidation value as determined in good faith by the Issuer of inventory
of the Issuer and each Guarantor and (ii) 90% of all credit card
receivables of the Issuer and each Guarantor determined in accordance with
GAAP.
"
ABL
Obligations
" means Obligations under the ABL Facility.
"
ABL
Secured Parties
" means each of (i) the ABL Collateral Agent on behalf
of itself and the lenders under the ABL Facility and lenders or their affiliates
counterparty to related Hedging Obligations and (ii) each other holder of
ABL Obligations.
"
Acquired
Indebtedness
" means, with respect to any specified Person,
(1)
Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Restricted Subsidiary of such specified Person, including
Indebtedness incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Restricted Subsidiary of such
specified Person, and
(2)
Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.
"
Affiliate
"
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person. For purposes of this definition, "control" (including,
with correlative meanings, the terms "controlling," "controlled by" and "under
common control with"), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise.
"
Applicable
Premium
" means, with respect to any Senior Note on any Redemption Date, the
greater of:
(1)
1.0%
of the principal amount of such Senior Note; and
(2)
the
excess, if any, of (a) the present value at such Redemption Date of
(i) the redemption price of such Senior Note at July 15, 2011 (such
redemption price being set forth in the tables appearing above under the
captions "Optional Redemption"), plus (ii) all required interest payments
due on such Senior Note through July 15, 2011 (excluding accrued but unpaid
interest to the Redemption Date), computed using a discount rate equal to the
Treasury Rate as of such Redemption Date plus 50 basis points; over (b) the
principal amount of such Senior Note.
"
Asset
Sale
" means:
(1)
the
sale, conveyance, transfer or other disposition, whether in a single transaction
or a series of related transactions, of property or assets (including by way of
a Sale and Lease-Back Transaction) of the Issuer or any of its Restricted
Subsidiaries (each referred to in this definition as a "
disposition
");
or
(2)
the
issuance or sale of Equity Interests of any Restricted Subsidiary, whether in a
single transaction or a series of related transactions (other than Preferred
Stock of Restricted Subsidiaries issued in compliance with the covenant
described under "Certain Covenants—Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock");
in each case, other than:
60
(a)
any
disposition of Cash Equivalents or Investment Grade Securities or obsolete or
worn out equipment in the ordinary course of business or any disposition of
inventory or goods (or other assets) held for sale in the ordinary course of
business;
(b)
the
disposition of all or substantially all of the assets of the Issuer in a manner
permitted pursuant to the provisions described above under "Certain
Covenants—Merger, Consolidation or Sale of All or Substantially All Assets" or
any disposition that constitutes a Change of Control pursuant to the Senior
Indenture;
(c)
the
making of any Restricted Payment or Permitted Investment that is permitted to be
made, and is made, under the covenant described above under "Certain
Covenants—Limitation on Restricted Payments";
(d)
any
disposition of assets or issuance or sale of Equity Interests of any Restricted
Subsidiary in any transaction or series of related transactions with an
aggregate fair market value of less than $25.0 million;
(e)
any
disposition of property or assets or issuance of securities by a Restricted
Subsidiary of the Issuer to the Issuer or by the Issuer or a Restricted
Subsidiary of the Issuer to another Restricted Subsidiary of the Issuer;
(f)
to
the extent allowable under Section 1031 of the Code or any comparable or
successor provision, any exchange of like property (excluding any boot thereon)
for use in a Similar Business;
(g)
the
lease, assignment or sub-lease of any real or personal property in the ordinary
course of business;
(h)
any
issuance or sale of Equity Interests in, or Indebtedness or other securities of,
an Unrestricted Subsidiary;
(i)
foreclosures
on assets;
(j)
sales
of accounts receivable, or participations therein, in connection with the ABL
Facility or any Receivables Facility;
(k)
any
financing transaction with respect to property built or acquired by the Issuer
or any Restricted Subsidiary after the Issue Date, including Sale and Lease-Back
Transactions and asset securitizations permitted by the Senior Indenture;
(l)
dispositions
in the ordinary course of business by any Restricted Subsidiary engaged in the
insurance business in order to provide insurance to the Issuer and its
Subsidiaries;
(m)
the
unwinding of any Hedging Obligations; and
(n)
sales,
transfers and other dispositions of Investments in joint ventures to the extent
required by, or made pursuant to, customary buy/sell arrangements between the
joint venture parties set forth in joint venture arrangements and similar
binding arrangements.
"
Asset
Sale Offer
" has the meaning set forth in the fourth paragraph under
"Repurchase at the Option of Holders—Asset Sales."
"
Bankruptcy
Code
" means Title 11 of the United States Code, as amended.
"
Bankruptcy
Law
" means the Bankruptcy Code and any similar federal, state or foreign law
for the relief of debtors.
61
"
Business
Day
" means each day which is not a Legal Holiday.
"
Capital
Stock
" means:
(1)
in the case
of a corporation, corporate stock;
(2)
in the case
of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;
(3)
in the case
of a partnership or limited liability company, partnership or membership
interests (whether general or limited); and
(4)
any other
interest or participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of assets of, the issuing
Person.
"
Capitalized
Lease Obligation
" means, at the time any determination thereof is to be
made, the amount of the liability in respect of a capital lease that would at
such time be required to be capitalized and reflected as a liability on a
balance sheet (excluding the footnotes thereto) in accordance with GAAP.
"
Capitalized
Software Expenditures
" means, for any period, the aggregate of all
expenditures (whether paid in cash or accrued as liabilities) by a Person and
its Restricted Subsidiaries during such period in respect of purchased software
or internally developed software and software enhancements that, in conformity
with GAAP, are or are required to be reflected as capitalized costs on the
consolidated balance sheet of a Person and its Restricted Subsidiaries.
"
Cash
Equivalents
" means:
(1)
United States
dollars;
(2)
euro or any
national currency of any participating member state of the EMU or such local
currencies held by the Issuer and its Restricted Subsidiaries from time to time
in the ordinary course of business;
(3)
securities
issued or directly and fully and unconditionally guaranteed or insured by the
U.S. government (or any agency or instrumentality thereof the securities of
which are unconditionally guaranteed as a full faith and credit obligation of
the U.S. government) with maturities of 24 months or less from the date of
acquisition;
(4)
certificates
of deposit, time deposits and eurodollar time deposits with maturities of one
year or less from the date of acquisition, bankers' acceptances with maturities
not exceeding one year and overnight bank deposits, in each case with any
commercial bank having capital and surplus of not less than $500.0 million
in the case of U.S. banks and $100.0 million (or the U.S. dollar equivalent
as of the date of determination) in the case of non-U.S. banks;
(5)
repurchase
obligations for underlying securities of the types described in clauses
(3) and (4) entered into with any financial institution meeting the
qualifications specified in clause (4) above;
(6)
commercial
paper rated at least P-1 by Moody's or at least A-1 by S&P and in each case
maturing within 24 months after the date of creation thereof;
(7)
marketable
short-term money market and similar securities having a rating of at least P-2
or A-2 from either Moody's or S&P, respectively (or, if at any time neither
Moody's nor S&P shall be rating such obligations, an equivalent rating from
another Rating Agency) and in each case maturing within 24 months after the
date of creation thereof;
(8)
investment
funds investing 95% of their assets in securities of the types described in
clauses (1) through (7) above;
62
(9)
readily
marketable direct obligations issued by any state, commonwealth or territory of
the United States or any political subdivision or taxing authority thereof
having an Investment Grade Rating from either Moody's or S&P with maturities
of 24 months or less from the date of acquisition;
(10)
Indebtedness
or Preferred Stock issued by Persons with a rating of "A" or higher from S&P
or "A2" or higher from Moody's with maturities of 24 months or less from
the date of acquisition; and
(11)
Investments
with average maturities of 24 months or less from the date of acquisition
in money market funds rated AAA- (or the equivalent thereof) or better by
S&P or Aaa3 (or the equivalent thereof) or better by Moody's.
Notwithstanding
the foregoing, Cash Equivalents shall include amounts denominated in currencies
other than those set forth in clauses (1) and (2) above;
provided
that such amounts are converted into any currency listed in
clauses (1) and (2) as promptly as practicable and in any event within
ten Business Days following the receipt of such amounts.
"
Change of
Control
" means the occurrence of any of the following:
(1)
the sale,
lease or transfer, in one or a series of related transactions, of all or
substantially all of the assets of the Issuer and its Subsidiaries, taken as a
whole, to any Person other than a Permitted Holder; or
(2)
the Issuer
becomes aware (by way of a report or any other filing pursuant to
Section 13(d) of the Exchange Act, proxy, vote, written notice or
otherwise) of the acquisition by any Person or group (within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any
successor provision), including any group acting for the purpose of acquiring,
holding or disposing of securities (within the meaning of Rule 13d-5(b)(1)
under the Exchange Act or any successor provision), other than the Permitted
Holders, in a single transaction or in a related series of transactions, by way
of merger, consolidation or other business combination or purchase of beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any
successor provision) of 50% or more of the total voting power of the Voting
Stock of the Issuer or any of its direct or indirect parent companies holding
directly or indirectly 100% of the total voting power of the Voting Stock of the
Issuer.
"
Code
"
means the Internal Revenue Code of 1986, as amended, or any successor
thereto.
"
Consolidated
Depreciation and Amortization Expense
" means with respect to any Person for
any period, the total amount of depreciation and amortization expense, including
the amortization of deferred financing fees, debt issuance costs, commissions,
fees and expenses and Capitalized Software Expenditures, of such Person and its
Restricted Subsidiaries for such period on a consolidated basis and otherwise
determined in accordance with GAAP.
"
Consolidated
Interest Expense
" means, with respect to any Person for any period, without
duplication, the sum of:
(1)
consolidated
interest expense of such Person and its Restricted Subsidiaries for such period,
to the extent such expense was deducted (and not added back) in computing
Consolidated Net Income (including (a) amortization of original issue
discount resulting from the issuance of Indebtedness at less than par,
(b) all commissions, discounts and other fees and charges owed with respect
to letters of credit or bankers' acceptances, (c) non-cash interest
payments (but excluding any non-cash interest expense attributable to the
movement in the mark to market valuation of Hedging Obligations or other
derivative instruments pursuant to GAAP), (d) the interest component of
Capitalized Lease Obligations, and (e) net payments, if any, pursuant to
interest rate Hedging Obligations with respect to Indebtedness, and excluding
(u) accretion or accrual of discounted liabilities not constituting
Indebtedness, (v) any expense resulting from the discounting any
Indebtedness in connection with the application of recapitalization accounting
or, if applicable, purchase accounting, (w) any Special Interest and any
comparable "additional interest" with respect to other securities,
(x) amortization of deferred financing fees, debt issuance costs,
commissions, fees and expenses, (y) any expensing of bridge, commitment and
other financing fees and (z) commissions, discounts, yield and other fees
and charges (including any interest expense) related to any Receivables
Facility); plus
63
(2)
consolidated
capitalized interest of such Person and its Restricted Subsidiaries for such
period, whether paid or accrued; less
(3)
interest
income for such period.
For purposes of this definition,
interest on a Capitalized Lease Obligation shall be deemed to accrue at an
interest rate reasonably determined by such Person to be the rate of interest
implicit in such Capitalized Lease Obligation in accordance with GAAP.
"
Consolidated
Leverage Ratio"
as of any date of determination, means the ratio of
(1) Consolidated Total Indebtedness of the Issuer and its Restricted
Subsidiaries as of the end of the most recent fiscal period for which internal
financial statements are available immediately preceding the date on which such
event for which such calculation is being made shall occur to (2) the
Issuer's EBITDA for the most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding the date on
which such event for which such calculation is being made shall occur, in each
case with such pro forma adjustments to Consolidated Total Indebtedness and
EBITDA as are appropriate and consistent with the pro forma adjustment
provisions set forth in the definition of "Fixed Charge Coverage Ratio."
"
Consolidated
Net Income
" means, with respect to any Person for any period, the aggregate
of the Net Income of such Person for such period, on a consolidated basis, and
otherwise determined in accordance with GAAP;
provided
,
however
,
that, without duplication,
(1)
any after-tax
effect of extraordinary, non-recurring or unusual gains or losses (less all fees
and expenses relating thereto) or expenses (including relating to the
Transactions to the extent incurred on or prior to May 1, 2008), severance,
relocation costs, consolidation and closing costs, integration and facilities
opening costs, business optimization costs, transition costs, restructuring
costs, signing, retention or completion bonuses, and curtailments or
modifications to pension and post-retirement employee benefit plans shall be
excluded,
(2)
the
cumulative effect of a change in accounting principles during such period shall
be excluded,
(3)
any after-tax
effect of income (loss) from disposed, abandoned or discontinued operations and
any net after-tax gains or losses on disposal of disposed, abandoned,
transferred, closed or discontinued operations shall be excluded,
(4)
any after-tax
effect of gains or losses (less all fees and expenses relating thereto)
attributable to asset dispositions or abandonments other than in the ordinary
course of business, as determined in good faith by the Issuer, shall be
excluded,
(5)
the Net
Income for such period of any Person that is an Unrestricted Subsidiary shall be
excluded, and, solely for the purpose of determining the amount available for
Restricted Payments under clause 3(a) of the first paragraph of "Certain
Covenants—Limitation on Restricted Payments," the Net Income for such period of
any Person that is not a Subsidiary or that is accounted for by the equity
method of accounting shall be excluded;
provided
that Consolidated Net
Income of the Issuer shall be increased by the amount of dividends or
distributions or other payments that are actually paid in cash (or to the extent
converted into cash) to the Issuer or a Restricted Subsidiary thereof in respect
of such period, to the extent not already included therein,
(6)
solely for
the purpose of determining the amount available for Restricted Payments under
clause (3)(a) of the first paragraph of "Certain Covenants—Limitation on
Restricted Payments," the Net Income for such period of any Restricted
Subsidiary (other than any Guarantor) shall be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of its Net Income is not at the date of determination wholly
permitted without any prior governmental approval (which has not been obtained)
or, directly or indirectly, by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, or governmental
regulation applicable to that Restricted Subsidiary or its stockholders, unless
such restriction with respect to the payment of dividends or similar
distributions has been legally waived;
provided
that Consolidated Net
Income of the Issuer will be increased by the amount of dividends or other
distributions or
64
other
payments actually paid in cash (or to the extent converted into cash) or Cash
Equivalents to the Issuer or a Restricted Subsidiary thereof in respect of such
period, to the extent not already included therein,
(7)
effects of
adjustments (including the effects of such adjustments pushed down to the Issuer
and its Restricted Subsidiaries) in the property, equipment, inventory, software
and other intangible assets, deferred revenue and debt line items in such
Person's consolidated financial statements pursuant to GAAP resulting from the
application of recapitalization accounting or, if applicable, purchase
accounting in relation to the Transactions or any consummated acquisition or the
amortization or write-off of any amounts thereof, net of taxes, shall be
excluded,
(8)
any after-tax
effect of income (loss) from the early extinguishment of Indebtedness or Hedging
Obligations or other derivative instruments shall be excluded,
(9)
any
impairment charge or asset write-off, including, without limitation, impairment
charges or asset write-offs related to intangible assets, long-lived assets or
investments in debt and equity securities, in each case, pursuant to GAAP and
the amortization of intangibles arising pursuant to GAAP shall be excluded,
(10)
any non-cash
compensation expense recorded from grants of stock appreciation or similar
rights, stock options, restricted stock or other rights, and any cash charges
associated with the rollover, acceleration or payout of Equity Interests by
management of the Company or any of its direct or indirect parent companies in
connection with the Transactions, shall be excluded,
(11)
any fees and
expenses incurred during such period, or any amortization thereof for such
period, in connection with any acquisition, Investment, Asset Sale, issuance or
repayment of Indebtedness, issuance of Equity Interests, refinancing transaction
or amendment or modification of any debt instrument (in each case, including any
such transaction consummated prior to the Issue Date and any such transaction
undertaken but not completed) and any charges or non-recurring merger costs
incurred during such period as a result of any such transaction shall be
excluded,
(12)
accruals and
reserves that are established or adjusted within twelve months after the Issue
Date that are so required to be established as a result of the Transactions in
accordance with GAAP, or changes as a result of adoption or modification of
accounting policies, shall be excluded, and
(13)
to the extent
covered by insurance and actually reimbursed, or, so long as the Issuer has made
a determination that there exists reasonable evidence that such amount will in
fact be reimbursed by the insurer and only to the extent that such amount is
(a) not denied by the applicable carrier in writing within 180 days
and (b) in fact reimbursed within 365 days of the date of such
evidence (with a deduction for any amount so added back to the extent not so
reimbursed within 365 days), expenses with respect to liability or casualty
events or business interruption shall be excluded.
Notwithstanding
the foregoing, for the purpose of the covenant described under "Certain
Covenants—Limitation on Restricted Payments" only (other than clause (3)(d)
thereof), there shall be excluded from Consolidated Net Income any income
arising from any sale or other disposition of Restricted Investments made by the
Issuer and its Restricted Subsidiaries, any repurchases and redemptions of
Restricted Investments from the Issuer and its Restricted Subsidiaries, any
repayments of loans and advances which constitute Restricted Investments by the
Issuer or any of its Restricted Subsidiaries, any sale of the stock of an
Unrestricted Subsidiary or any distribution or dividend from an Unrestricted
Subsidiary, in each case only to the extent such amounts increase the amount of
Restricted Payments permitted under such covenant pursuant to clause (3)(d)
thereof.
"
Consolidated
Secured Debt Ratio"
as of any date of determination, means the ratio of (1)
Consolidated Total Indebtedness of the Issuer and its Restricted Subsidiaries
that is secured by Liens as of the end of the most recent fiscal period for
which internal financial statements are available immediately preceding the date
on which such event for which such calculation is being made shall occur to (2)
the Issuer's EBITDA for the most recently ended four full fiscal quarters for
which internal financial statements are available immediately preceding the date
on which such event for which such calculation is being made shall occur, in
each case with such pro forma
65
adjustments
to Consolidated Total Indebtedness and EBITDA as are appropriate and consistent
with the pro forma adjustment provisions set forth in the definition of "Fixed
Charge Coverage Ratio."
"
Consolidated
Total Indebtedness
" means, as of any date of determination, an amount equal
to the sum of (1) the aggregate amount of all outstanding Indebtedness of the
Issuer and its Restricted Subsidiaries on a consolidated basis consisting of
Indebtedness for borrowed money, Obligations in respect of Capitalized Lease
Obligations and debt obligations evidenced by promissory notes and similar
instruments (and excluding, for the avoidance of doubt, all obligations relating
to Receivables Facilities) and (2) the aggregate amount of all outstanding
Disqualified Stock of the Issuer and all Preferred Stock of its Restricted
Subsidiaries on a consolidated basis, with the amount of such Disqualified Stock
and Preferred Stock equal to the greater of their respective voluntary or
involuntary liquidation preferences and maximum fixed repurchase prices, in each
case determined on a consolidated basis in accordance with GAAP. For purposes
hereof, the "maximum fixed repurchase price" of any Disqualified Stock or
Preferred Stock that does not have a fixed repurchase price shall be calculated
in accordance with the terms of such Disqualified Stock or Preferred Stock as if
such Disqualified Stock or Preferred Stock were purchased on any date on which
Consolidated Total Indebtedness shall be required to be determined pursuant to
the Indenture, and if such price is based upon, or measured by, the fair market
value of such Disqualified Stock or Preferred Stock, such fair market value
shall be determined reasonably and in good faith by the Issuer.
"
Contingent
Obligations
" means, with respect to any Person, any obligation of such
Person guaranteeing any leases, dividends or other obligations that do not
constitute Indebtedness ("
primary obligations
") of any other Person (the
"
primary obligor
") in any manner, whether directly or indirectly,
including, without limitation, any obligation of such Person, whether or not
contingent,
(1)
to purchase
any such primary obligation or any property constituting direct or indirect
security therefor,
(2)
to advance or
supply funds:
(a)
for
the purchase or payment of any such primary obligation, or
(b)
to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, or
(3)
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 against loss in respect thereof.
"
Credit
Facilities
" means, with respect to the Issuer or any of its Restricted
Subsidiaries, one or more debt facilities, including the Senior Credit
Facilities, or other financing arrangements (including, without limitation,
commercial paper facilities or indentures) providing for revolving credit loans,
term loans, letters of credit or other long-term indebtedness, including any
notes, mortgages, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and any amendments, supplements,
modifications, extensions, renewals, restatements or refundings thereof and any
indentures, notes, debentures or credit facilities or commercial paper
facilities that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount
permitted to be borrowed thereunder or alters the maturity thereof
(
provided
that such increase in borrowings is permitted under "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock") or adds Restricted Subsidiaries as additional
borrowers or guarantors thereunder and whether by the same or any other agent,
lender or group of lenders.
"
Default
"
means any event that is, or with the passage of time or the giving of notice or
both would be, an Event of Default.
"
Designated
Non-cash Consideration
" means the fair market value of non-cash
consideration received by the Issuer or a Restricted Subsidiary in connection
with an Asset Sale that is so designated as Designated Non-cash
66
Consideration
pursuant to an Officer's Certificate, setting forth the basis of such valuation,
executed by the principal financial officer of the Issuer, less the amount of
cash or Cash Equivalents received in connection with a subsequent sale of or
collection on such Designated Non-cash Consideration.
"
Designated
Preferred Stock
" means Preferred Stock of the Issuer or any parent
corporation thereof (in each case other than Disqualified Stock) that is issued
for cash (other than to a Restricted Subsidiary or an employee stock ownership
plan or trust established by the Issuer or any of its Subsidiaries) and is so
designated as Designated Preferred Stock, pursuant to an Officer's Certificate
executed by the principal financial officer of the Issuer or the applicable
parent corporation thereof, as the case may be, on the issuance date thereof,
the cash proceeds of which are excluded from the calculation set forth in
clause (3) of the first paragraph under "Certain Covenants—Limitation on
Restricted Payments."
"
Disqualified
Stock
" means, with respect to any Person, any Capital Stock of such Person
which, by its terms, or by the terms of any security into which it is
convertible or for which it is putable or exchangeable, or upon the happening of
any event, matures or is mandatorily redeemable (other than solely as a result
of a change of control or asset sale) pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof (other than
solely as a result of a change of control or asset sale), in whole or in part,
in each case prior to the date 91 days after the earlier of the maturity
date of the Senior Notes or the date the Senior Notes are no longer outstanding;
provided
,
however
, that if such Capital Stock is issued to any
plan for the benefit of employees of the Issuer or its Subsidiaries or by any
such plan to such employees, such Capital Stock shall not constitute
Disqualified Stock solely because it may be required to be repurchased by the
Issuer or its Subsidiaries in order to satisfy applicable statutory or
regulatory obligations.
"
EBITDA
"
means, with respect to any Person for any period, the Consolidated Net Income of
such Person for such period
(1)
increased
(without duplication) by:
(a)
provision
for taxes based on income or profits or capital gains, including, without
limitation, foreign, federal, state, franchise and similar taxes and foreign
withholding taxes (including penalties and interest related to such taxes or
arising from tax examinations) of such Person paid or accrued during such period
deducted (and not added back) in computing Consolidated Net Income in such
period;
plus
(b)
Fixed
Charges of such Person for such period (including (x) net losses on Hedging
Obligations or other derivative instruments entered into for the purpose of
hedging interest rate risk and (y) costs of surety bonds in connection with
financing activities, in each case, to the extent included in Fixed Charges),
together with items excluded from the definition of "Consolidated Interest
Expense" pursuant to clauses (1)(u), (v), (w), (x), (y) and (z) of the
definition thereof, and, in each such case, to the extent the same were deducted
(and not added back) in calculating such Consolidated Net Income in such period;
plus
(c)
Consolidated
Depreciation and Amortization Expense of such Person for such period to the
extent the same was deducted (and not added back) in computing Consolidated Net
Income in such period;
plus
(d)
any
expenses or charges (other than depreciation or amortization expense) related to
any Equity Offering, Permitted Investment, acquisition, disposition,
recapitalization or the incurrence of Indebtedness permitted to be incurred by
the Senior Indenture (including a refinancing thereof) (whether or not
successful), including (i) such fees, expenses or charges related to the
offering of the Senior Notes and any Credit Facilities and (ii) any
amendment or other modification of the Senior Notes, and, in each case, deducted
(and not added back) in computing Consolidated Net Income in such period;
plus
67
(e)
the
amount of any restructuring charge or reserve deducted (and not added back) in
such period in computing Consolidated Net Income, including any one-time costs
incurred in connection with acquisitions after the Issue Date and costs related
to the closure and/or consolidation of facilities;
plus
(f)
any
other non-cash charges, including any write-offs or write-downs, reducing
Consolidated Net Income for such period (
provided
that if any such
non-cash charges represent an accrual or reserve for potential cash items in any
future period, the cash payment in respect thereof in such future period shall
be subtracted from EBITDA to such extent, and excluding amortization of a
prepaid cash item that was paid in a prior period);
plus
(g)
the
amount of any minority interest expense consisting of income attributable to
minority equity interests of third parties deducted (and not added back) in such
period in calculating Consolidated Net Income in such period;
plus
(h)
the
amount of management, monitoring, consulting and advisory fees and related
expenses paid in such period to the Investors to the extent otherwise permitted
under "Certain Covenants—Transactions with Affiliates";
plus
(i)
the
amount of net cost savings projected by the Issuer in good faith to be realized
as a result of specified actions taken or to be taken (calculated on a
pro
forma
basis as though such cost savings had been realized on the first day
of such period), net of the amount of actual benefits realized during such
period from such actions;
provided
that (w) such cost savings are
reasonably identifiable and factually supportable, (x) such actions have
been taken or are to be taken within 12 months after the date of
determination to take such action, (y) no cost savings shall be added
pursuant to this clause (i) to the extent duplicative of any expenses or
charges relating to such cost savings that are included in clause (e) above
with respect to such period and (z) the aggregate amount of cost savings
added pursuant to this clause (i) shall not exceed $25.0 million for
any four consecutive quarter period (which adjustments may be incremental to
pro forma
adjustments made pursuant to the second paragraph of the
definition of "Fixed Charge Coverage Ratio");
plus
(j)
the
amount of loss on sales of receivables and related assets to the Receivables
Subsidiary in connection with a Receivables Facility;
plus
(k)
an
amount equal to the impact on cost of goods sold and operating profit of
incremental markdowns taken as a result of Project Alpha as described in the
offering documentation relating to the outstanding notes;
provided
that
this clause (k) shall not apply to any quarterly period beginning after
February 1, 2008;
plus
(l)
any
expenses associated with Project Alpha inventory and real estate initiatives as
described in the offering documentation relating to the outstanding notes;
provided
that this clause (l) shall not apply to any quarterly period
beginning after February 1, 2008;
plus
(m)
any
costs or expense incurred by the Issuer or a Restricted Subsidiary pursuant to
any management equity plan or stock option plan or any other management or
employee benefit plan or agreement or any stock subscription or shareholder
agreement, to the extent that such cost or expenses are funded with cash
proceeds contributed to the capital of the Issuer or net cash proceeds of an
issuance of Equity Interests of the Issuer (other than Disqualified Stock)
solely to the extent that such net cash proceeds are excluded from the
calculation set forth in clause (3) of the first paragraph under "Certain
Covenants—Limitation on Restricted Payments";
(2)
decreased by
(without duplication) non-cash gains increasing Consolidated Net Income of such
Person for such period, excluding any non-cash gains to the extent they
represent the reversal of an accrual or reserve for a potential cash item that
reduced EBITDA in any prior period; and
(3)
increased or
decreased by (without duplication):
68
(a)
any
net gain or loss resulting in such period from Hedging Obligations and the
application of Statement of Financial Accounting Standards No. 133;
plus
or
minus
, as applicable, and
(b)
any
net gain or loss resulting in such period from currency translation gains or
losses related to currency remeasurements of Indebtedness (including any net
loss or gain resulting from Hedging Obligations for currency exchange risk).
"
EMU
"
means the economic and monetary union as contemplated in the Treaty on European
Union.
"
Equity
Interests
" means Capital Stock and all warrants, options or other rights to
acquire Capital Stock, but excluding any debt security that is convertible into,
or exchangeable for, Capital Stock.
"
Equity
Offering
" means any public or private sale of common stock or Preferred
Stock of the Issuer or any of its direct or indirect parent companies (excluding
Disqualified Stock), other than:
(1)
public
offerings with respect to the Issuer's or any direct or indirect parent
company's common stock registered on Form S-8;
(2)
issuances to
any Subsidiary of the Issuer; and
(3)
any such
public or private sale that constitutes an Excluded Contribution.
"
euro
"
means the single currency of participating member states of the EMU.
"
Event of
Default
" has the meaning set forth under "Events of Default and
Remedies."
"
Excess
Proceeds
" has the meaning set forth in the fourth paragraph under
"Repurchase at the Option of Holders—Asset Sales."
"
Exchange
Act
" means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.
"
Excluded
Contribution
" means net cash proceeds, marketable securities or Qualified
Proceeds received by the Issuer after the Issue Date from
(1)
contributions
to its common equity capital, and
(2)
the sale
(other than to a Subsidiary of the Issuer or to any management equity plan or
stock option plan or any other management or employee benefit plan or agreement
of the Issuer) of Capital Stock (other than Disqualified Stock and Designated
Preferred Stock) of the Issuer,
in each case designated as
Excluded Contributions pursuant to an Officer's Certificate executed by the
principal financial officer of the Issuer on the date such capital contributions
are made or the date such Equity Interests are sold, as the case may be, which
are excluded from the calculation set forth in clause (3) of the first
paragraph under "Certain Covenants—Limitation on Restricted Payments."
"
Fixed
Charge Coverage Ratio
" means, with respect to any Person for any period, the
ratio of EBITDA of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the Issuer or any Restricted
Subsidiary incurs, assumes, guarantees, redeems, retires or extinguishes any
Indebtedness (other than Indebtedness incurred under any revolving credit
facility unless such Indebtedness has been permanently repaid and has not been
replaced) or issues or redeems Disqualified Stock or Preferred Stock subsequent
to the commencement of the period for which the Fixed Charge Coverage Ratio is
being calculated but prior to or simultaneously with the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the "
Fixed Charge
Coverage Ratio Calculation Date
"), then the Fixed Charge Coverage Ratio
shall be calculated giving
pro forma
effect to such incurrence,
assumption, guarantee, redemption, retirement or extinguishment of Indebtedness,
or such issuance or
69
redemption
of Disqualified Stock or Preferred Stock, as if the same had occurred on the
first day of the applicable four-quarter period.
For purposes
of making the computation referred to above, Investments, acquisitions,
dispositions, mergers, consolidations and disposed operations (as determined in
accordance with GAAP) that have been made by the Issuer or any of its Restricted
Subsidiaries during the four-quarter reference period or subsequent to such
reference period and on or prior to or simultaneously with the Fixed Charge
Coverage Ratio Calculation Date shall be calculated on a
pro forma
basis
assuming that all such Investments, acquisitions, dispositions, mergers,
consolidations and disposed operations (and the change in any associated fixed
charge obligations and the change in EBITDA resulting therefrom) had occurred on
the first day of the four-quarter reference period. If, since the beginning of
such period, any Person that subsequently became a Restricted Subsidiary or was
merged with or into the Issuer or any of its Restricted Subsidiaries since the
beginning of such period shall have made any Investment, acquisition,
disposition, merger, consolidation or disposed operation that would have
required adjustment pursuant to this definition, then the Fixed Charge Coverage
Ratio shall be calculated giving
pro forma
effect thereto for such period
as if such Investment, acquisition, disposition, merger, consolidation or
disposed operation had occurred on the first day of the applicable four-quarter
period.
For purposes
of this definition, whenever
pro forma
effect is to be given to a
transaction, the
pro forma
calculations shall be made in good faith by a
responsible financial or accounting officer of the Issuer. If any Indebtedness
bears a floating rate of interest and is being given
pro forma
effect,
the interest on such Indebtedness shall be calculated as if the rate in effect
on the Fixed Charge Coverage Ratio Calculation Date had been the applicable rate
for the entire period (taking into account any Hedging Obligations applicable to
such Indebtedness). Interest on a Capitalized Lease Obligation shall be deemed
to accrue at an interest rate reasonably determined by a responsible financial
or accounting officer of the Issuer to be the rate of interest implicit in such
Capitalized Lease Obligation in accordance with GAAP. For purposes of making the
computation referred to above, interest on any Indebtedness under a revolving
credit facility computed on a
pro forma
basis shall be computed based
upon the average daily balance of such Indebtedness during the applicable period
except as set forth in the first paragraph of this definition. Interest on
Indebtedness that may optionally be determined at an interest rate based upon a
factor of a prime or similar rate, a eurocurrency interbank offered rate or
other rate shall be deemed to have been based upon the rate actually chosen, or,
if none, then based upon such optional rate chosen as the Issuer may
designate.
"
Fixed
Charges
" means, with respect to any Person for any period, the sum of:
(1)
Consolidated
Interest Expense of such Person for such period;
(2)
all cash
dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Preferred Stock during such period; and
(3)
all cash
dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Disqualified Stock during such period.
"
Foreign
Subsidiary
" means, with respect to any Person, any Restricted Subsidiary of
such Person that is not organized or existing under the laws of the United
States, any state thereof or the District of Columbia and any Restricted
Subsidiary of such Foreign Subsidiary.
"
GAAP
"
means generally accepted accounting principles in the United States which are in
effect on the Issue Date.
"
General
Credit Facility
" means the credit agreement to be entered into as of the
Issue Date by and among the Issuer, the lenders party thereto in their
capacities as lenders thereunder and Citicorp North America, Inc., as
Administrative Agent, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements, refundings or
refinancings thereof and any indentures, notes, debentures or credit facilities
or commercial paper facilities with banks or other institutional lenders or
investors that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing
70
facility
or indenture that increases the amount borrowable thereunder or alters the
maturity thereof (
provided
that such increase in borrowings is permitted
under "Certain Covenants—Limitation on Incurrence of Indebtedness and Issuance
of Disqualified Stock and Preferred Stock" above).
"
Government
Securities
" means securities that are:
(1)
direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged; or
(2)
obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America,
which, in either case, are not
callable or redeemable at the option of the issuers thereof, and shall also
include a depository receipt issued by a bank (as defined in
Section 3(a)(2) of the Securities Act), as custodian with respect to any
such Government Securities or a specific payment of principal of or interest on
any such Government Securities held by such custodian for the account of the
holder of such depository receipt;
provided
that (except as required by
law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the Government Securities or the specific payment of
principal of or interest on the Government Securities evidenced by such
depository receipt.
"
guarantee
"
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including letters of credit and reimbursement agreements in respect
thereof), of all or any part of any Indebtedness or other obligations.
"
Guarantee
"
means the guarantee by any Guarantor of the Issuer's Obligations under the
Senior Indenture.
"
Guarantor
"
means each Restricted Subsidiary that Guarantees the Senior Notes in accordance
with the terms of the Senior Indenture.
"
Hedging
Obligations
" means, with respect to any Person, the obligations of such
Person under any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement, commodity swap agreement, commodity cap
agreement, commodity collar agreement, foreign exchange contract, currency swap
agreement or similar agreement providing for the transfer or mitigation of
interest rate or currency risks either generally or under specific
contingencies.
"
Holder
"
means the Person in whose name a Senior Note is registered on the registrar's
books.
"
Indebtedness
"
means, with respect to any Person, without duplication:
(1)
any
indebtedness (including principal and premium) of such Person, whether or not
contingent:
(a)
in
respect of borrowed money;
(b)
evidenced
by bonds, notes, debentures or similar instruments or letters of credit or
bankers' acceptances (or, without duplication, reimbursement agreements in
respect thereof);
(c)
representing
the balance deferred and unpaid of the purchase price of any property (including
Capitalized Lease Obligations), except (i) any such balance that
constitutes a trade payable or similar obligation to a trade creditor, in each
case accrued in the ordinary course of business and (ii) any earn-out
obligations until such obligation becomes a liability on the balance sheet of
such Person in accordance with GAAP; or
(d)
representing
any Hedging Obligations;
71
if
and to the extent that any of the foregoing Indebtedness (other than letters of
credit and Hedging Obligations) would appear as a liability upon a balance sheet
(excluding the footnotes thereto) of such Person prepared in accordance with
GAAP;
(2)
to
the extent not otherwise included, any obligation by such Person to be liable
for, or to pay, as obligor, guarantor or otherwise on, the obligations of the
type referred to in clause (1) of a third Person (whether or not such items
would appear upon the balance sheet of the such obligor or guarantor), other
than by endorsement of negotiable instruments for collection in the ordinary
course of business; and
(3)
to
the extent not otherwise included, the obligations of the type referred to in
clause (1) of a third Person secured by a Lien on any asset owned by such
first Person, whether or not such Indebtedness is assumed by such first
Person;
provided
,
however
,
that notwithstanding the foregoing, Indebtedness shall be deemed not to include
(a) Contingent Obligations incurred in the ordinary course of business or
(b) obligations under or in respect of Receivables Facilities.
"
Independent
Financial Advisor
" means an accounting, appraisal, investment banking firm
or consultant to Persons engaged in Similar Businesses of nationally recognized
standing that is, in the good faith judgment of the Issuer, qualified to perform
the task for which it has been engaged.
"
Initial
Purchasers
" means Goldman, Sachs & Co., Citigroup Global
Markets Inc., Lehman Brothers Inc. and Wachovia Capital Markets,
LLC.
"
insolvency
or liquidation proceeding
" means:
(1)
any case
commenced by or against the Issuer or any Guarantor under any Bankruptcy Law for
the relief of debtors, any other proceeding for the reorganization,
recapitalization or adjustment or marshalling of the assets or liabilities of
the Issuer or any Guarantor, any receivership or assignment for the benefit of
creditors relating to the Issuer or any Guarantor or any similar case or
proceeding relative to the Issuer or any Guarantor or its creditors, as such, in
each case whether or not voluntary;
(2)
any
liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to the Issuer or any Guarantor, in each case whether or not
voluntary and whether or not involving bankruptcy or insolvency; or
(3)
any other
proceeding of any type or nature in which substantially all claims of creditors
of the Issuer or any Guarantor are determined and any payment or distribution is
or may be made on account of such claims.
"
Investment
Grade Rating
" means a rating equal to or higher than Baa3 (or the
equivalent) by Moody's and BBB- (or the equivalent) by S&P, or an equivalent
rating by any other Rating Agency.
"
Investment
Grade Securities
" means:
(1)
securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof (other than Cash
Equivalents);
(2)
debt
securities or debt instruments with an Investment Grade Rating, but excluding
any debt securities or instruments constituting loans or advances among the
Issuer and its Subsidiaries;
72
(3)
investments
in any fund that invests exclusively in investments of the type described in
clauses (1) and (2) which fund may also hold immaterial amounts of
cash pending investment or distribution; and
(4)
corresponding
instruments in countries other than the United States customarily utilized for
high quality investments.
"
Investments
"
means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of loans (including guarantees),
advances or capital contributions (excluding accounts receivable, trade credit,
advances to customers, commissions, travel and similar advances to officers and
employees, in each case made in the ordinary course of business), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other
securities issued by any other Person and investments that are required by GAAP
to be classified on the balance sheet (excluding the footnotes) of the Issuer in
the same manner as the other investments included in this definition to the
extent such transactions involve the transfer of cash or other property. For
purposes of the definition of "Unrestricted Subsidiary" and the covenant
described under "Certain Covenants—Limitation on Restricted Payments":
(1)
"Investments"
shall include the portion (proportionate to the Issuer's equity interest in such
Subsidiary) of the fair market value of the net assets of a Subsidiary of the
Issuer at the time that such Subsidiary is designated an Unrestricted
Subsidiary;
provided
,
however
, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Issuer shall be deemed to continue to
have a permanent "Investment" in an Unrestricted Subsidiary in an amount (if
positive) equal to:
(a)
the
Issuer's "Investment" in such Subsidiary at the time of such redesignation;
less
(b)
the
portion (proportionate to the Issuer equity interest in such Subsidiary) of the
fair market value of the net assets of such Subsidiary at the time of such
redesignation; and
(2)
any property
transferred to or from an Unrestricted Subsidiary shall be valued at its fair
market value at the time of such transfer, in each case as determined in good
faith by the Issuer.
"
Investors
"
means Kohlberg Kravis Roberts & Co. L.P., GS Capital Partners VI Fund,
L.P. and funds managed by Citigroup Private Equity LP, and each of their
respective Affiliates but not including, however, any portfolio companies of any
of the foregoing.
"
Issue
Date
" means July 6, 2007.
"
Issuer
"
has the meaning set forth in the first paragraph under "General";
provided
that when used in the context of determining the fair market
value of an asset or liability under the Senior Indenture other than in
calculating the ABL Facility Cap, "Issuer" shall be deemed to mean the board of
directors of the Issuer when the fair market value is equal to or in excess of
$50.0 million (unless otherwise expressly stated).
"
Legal
Holiday
" means a Saturday, a Sunday or a day on which commercial banking
institutions are not required to be open in the State of New York.
"
Lien
"
means, with respect to any asset, any mortgage, lien (statutory or otherwise),
pledge, hypothecation, charge, security interest, preference, priority or
encumbrance of any kind in respect of such asset, whether or not filed, recorded
or otherwise perfected under applicable law, including any conditional sale or
other title retention agreement, any lease in the nature thereof, any option or
other agreement to sell or give a security interest in and any filing of or
agreement to give any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction;
provided
that in no event shall
an operating lease be deemed to constitute a Lien.
"
Moody's
"
means Moody's Investors Service, Inc. and any successor to its rating
agency business.
"
Net
Income
" means, with respect to any Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect
of Preferred Stock dividends.
73
"
Net
Proceeds
" means the aggregate cash proceeds received by the Issuer or any of
its Restricted Subsidiaries in respect of any Asset Sale, including any cash
received upon the sale or other disposition of any Designated Non-cash
Consideration received in any Asset Sale, net of the direct costs relating to
such Asset Sale and the sale or disposition of such Designated Non-cash
Consideration, including legal, accounting and investment banking fees, and
brokerage and sales commissions, any relocation expenses incurred as a result
thereof, taxes paid or payable as a result thereof (after taking into account
any available tax credits or deductions and any tax sharing arrangements),
amounts required to be applied to the repayment of principal, premium, if any,
and interest on Senior Indebtedness required (other than required by
clause (1) of the second paragraph of "Repurchase at the Option of
Holders—Asset Sales") to be paid as a result of such transaction and any
deduction of appropriate amounts to be provided by the Issuer or any of its
Restricted Subsidiaries as a reserve in accordance with GAAP against any
liabilities associated with the asset disposed of in such transaction and
retained by the Issuer or any of its Restricted Subsidiaries after such sale or
other disposition thereof, including pension and other post-employment benefit
liabilities and liabilities related to environmental matters or against any
indemnification obligations associated with such transaction.
"
Obligations
"
means any principal, interest (including any interest accruing subsequent to the
filing of a petition in bankruptcy, reorganization or similar proceeding at the
rate provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable state, federal or foreign law),
premium, penalties, fees, indemnifications, reimbursements (including
reimbursement obligations with respect to letters of credit and bankers'
acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities, payable under the documentation governing any
Indebtedness.
"
Officer
"
means the Chairman of the Board, the Chief Executive Officer, the President, any
Executive Vice President, Senior Vice President or Vice President, the Treasurer
or the Secretary of the Issuer.
"
Officer's
Certificate
" means a certificate signed on behalf of the Issuer by an
Officer of the Issuer, who must be the principal executive officer, the
principal financial officer, the treasurer or the principal accounting officer
of the Issuer, that meets the requirements set forth in the Senior
Indenture.
"
Opinion
of Counsel
" means a written opinion from legal counsel who is acceptable to
the Trustee. The counsel may be an employee of or counsel to the Issuer or the
Trustee.
"
Permitted
Asset Swap
" means the concurrent purchase and sale or exchange of Related
Business Assets or a combination of Related Business Assets and cash or Cash
Equivalents between the Issuer or any of its Restricted Subsidiaries and another
Person;
provided
, that any cash or Cash Equivalents received must be
applied in accordance with the covenant described under "Repurchase at the
Option of Holders—Asset Sales."
"
Permitted
Holders
" means each of the Investors, members of management of the Issuer
(or its direct or indirect parent) and any assignees of the equity commitments
of the Investors on the Issue Date who are (or will be pursuant to the
agreements referenced in "The Transactions" section included elsewhere in this
prospectus) holders of Equity Interests of the Issuer (or any of its direct or
indirect parent companies) and any group (within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any
successor provision) of which any of the foregoing are members;
provided
that, in the case of such group and without giving effect to the existence of
such group or any other group, such Investors, members of management and
assignees of the equity commitments of the Investors, collectively, have
beneficial ownership of more than 50% of the total voting power of the Voting
Stock of the Issuer or any of its direct or indirect parent companies.
"
Permitted
Investments
" means:
(1)
any
Investment in the Issuer or any of its Restricted Subsidiaries;
(2)
any
Investment in cash and Cash Equivalents or Investment Grade Securities;
74
(3)
any
Investment by the Issuer or any of its Restricted Subsidiaries in a Person that
is engaged in a Similar Business if as a result of such Investment:
(a)
such
Person becomes a Restricted Subsidiary; or
(b)
such
Person, in one transaction or a series of related transactions, is merged or
consolidated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Issuer or a Restricted Subsidiary,
and, in each case, any
Investment held by such Person;
provided,
that such Investment was not
acquired by such Person in contemplation of such acquisition, merger,
consolidation or transfer;
(4)
any
Investment in securities or other assets not constituting cash, Cash Equivalents
or Investment Grade Securities and received in connection with an Asset Sale
made pursuant to the provisions described under "Repurchase at the Option of
Holders—Asset Sales" or any other disposition of assets not constituting an
Asset Sale;
(5)
any
Investment existing on the Issue Date;
(6)
any
Investment acquired by the Issuer or any of its Restricted Subsidiaries:
(a)
in
exchange for any other Investment or accounts receivable held by the Issuer or
any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such
other Investment or accounts receivable; or
(b)
as
a result of a foreclosure by the Issuer or any of its Restricted Subsidiaries
with respect to any secured Investment or other transfer of title with respect
to any secured Investment in default;
(7)
Hedging
Obligations permitted under clause (11) of the second paragraph of the
covenant described in "Certain Covenants—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock";
(8)
any
Investment in a Similar Business having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause (8) that
are at that time outstanding, not to exceed $50.0 million at the time of
such Investment (with the fair market value of each Investment being measured at
the time made and without giving effect to subsequent changes in value);
(9)
Investments
the payment for which consists of Equity Interests (exclusive of Disqualified
Stock) of the Issuer or any of its direct or indirect parent companies;
provided
,
however
, that such Equity Interests will not increase
the amount available for Restricted Payments under clause (3) of the first
paragraph under the covenant described in "Certain Covenants—Limitations on
Restricted Payments";
(10)
guarantees of
Indebtedness permitted under the covenant described in "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock";
(11)
any
transaction to the extent it constitutes an Investment that is permitted and
made in accordance with the provisions of the second paragraph of the covenant
described under "Certain Covenants—Transactions with Affiliates" (except
transactions described in clauses (2), (5) and (9) of such
paragraph);
(12)
Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment;
(13)
additional
Investments having an aggregate fair market value, taken together with all other
Investments made pursuant to this clause (13) that are at that time
outstanding (without giving effect to the sale of an Unrestricted Subsidiary to
the extent the proceeds of such sale do not consist of cash or marketable
securities), not to
75
exceed
$100.0 million at the time of such Investment (with the fair market value
of each Investment being measured at the time made and without giving effect to
subsequent changes in value);
(14)
Investments
relating to a Receivables Subsidiary that, in the good faith determination of
the Issuer, are necessary or advisable to effect the ABL Facility or any
Receivables Facility, as the case may be;
(15)
advances to,
or guarantees of Indebtedness of, employees not in excess of $10.0 million
outstanding at any one time, in the aggregate;
(16)
loans and
advances to officers, directors and employees for business-related travel
expenses, moving expenses and other similar expenses, in each case incurred in
the ordinary course of business or consistent with past practices or to fund
such Person's purchase of Equity Interests of the Issuer or any direct or
indirect parent company thereof; and
(17)
Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment or the licensing or contribution of intellectual property pursuant to
joint marketing arrangements with other Persons.
"
Permitted
Liens
" means, with respect to any Person:
(1)
pledges or
deposits by such Person under workmen's compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection with
bids, tenders, contracts (other than for the payment of Indebtedness) or leases
to which such Person is a party, or deposits to secure public or statutory
obligations of such Person or deposits of cash or U.S. government bonds to
secure surety or appeal bonds to which such Person is a party, or deposits as
security for contested taxes or import duties or for the payment of rent, in
each case incurred in the ordinary course of business;
(2)
Liens imposed
by law, such as carriers', warehousemen's and mechanics' Liens, in each case for
sums not yet overdue for a period of more than 30 days or being contested
in good faith by appropriate proceedings or other Liens arising out of judgments
or awards against such Person with respect to which such Person shall then be
proceeding with an appeal or other proceedings for review if adequate reserves
with respect thereto are maintained on the books of such Person in accordance
with GAAP;
(3)
Liens for
taxes, assessments or other governmental charges not yet overdue for a period of
more than 30 days or payable or subject to penalties for nonpayment or
which are being contested in good faith by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the books
of such Person in accordance with GAAP;
(4)
Liens in
favor of issuers of performance and surety bonds or bid bonds or with respect to
other regulatory requirements or letters of credit issued pursuant to the
request of and for the account of such Person in the ordinary course of its
business;
(5)
minor survey
exceptions, minor encumbrances, easements or reservations of, or rights of
others for, licenses, rights-of-way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning or other restrictions as
to the use of real properties or Liens incidental to the conduct of the business
of such Person or to the ownership of its properties which were not incurred in
connection with Indebtedness and which do not in the aggregate materially
adversely affect the value of said properties or materially impair their use in
the operation of the business of such Person;
(6)
Liens
securing Indebtedness permitted to be incurred pursuant to clauses (1), (5),
(13), (14), (19) or (20) of the second paragraph under "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock";
provided
that (a) Liens securing
Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred
pursuant to clause (14) relate only to Refinancing Indebtedness that serves
to refund or refinance Indebtedness, Disqualified Stock or Preferred Stock
incurred under clause (5) or (13) of the second paragraph under
"Certain Covenants—Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock," (b) Liens securing Indebtedness
permitted to be incurred pursuant to
76
clause (19)
extend only to the assets of Foreign Subsidiaries, (c) Liens securing
Indebtedness permitted to be incurred pursuant to clause (20) are solely on
acquired property or the assets of the acquired entity, as the case may be and
(d) Liens securing Indebtedness, Disqualified Stock or Preferred Stock
permitted to be incurred pursuant to clause (5) of the second paragraph
under "Certain Covenants—Limitation on Incurrence of Indebtedness and Issuance
of Disqualified Stock and Preferred Stock" extend only to the assets so
financed, purchased, constructed or improved;
(7)
Liens
existing on the Issue Date (other than Liens in favor of the lenders under the
Senior Credit Facilities);
(8)
Liens on
property or shares of stock of a Person at the time such Person becomes a
Subsidiary;
provided
,
however
, such Liens are not created or
incurred in connection with, or in contemplation of, such other Person becoming
such a Subsidiary;
provided
,
further
,
however
, that such
Liens may not extend to any other property owned by the Issuer or any of its
Restricted Subsidiaries;
(9)
Liens on
property at the time the Issuer or a Restricted Subsidiary acquired the
property, including any acquisition by means of a merger or consolidation with
or into the Issuer or any of its Restricted Subsidiaries;
provided
,
however
, that such Liens are not created or incurred in connection with,
or in contemplation of, such acquisition;
provided
,
further
,
however
, that the Liens may not extend to any other property owned by the
Issuer or any of its Restricted Subsidiaries;
(10)
Liens
securing Indebtedness or other obligations of a Restricted Subsidiary owing to
the Issuer or another Restricted Subsidiary permitted to be incurred in
accordance with the covenant described under "Certain Covenants—Limitation on
Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock";
(11)
Liens
securing Hedging Obligations so long as the related Indebtedness is, and is
permitted to be under the Senior Indenture, secured by a Lien on the same
property securing such Hedging Obligations;
(12)
Liens on
specific items of inventory or other goods and proceeds of any Person securing
such Person's obligations in respect of bankers' acceptances issued or created
for the account of such Person to facilitate the purchase, shipment or storage
of such inventory or other goods;
(13)
leases,
subleases, licenses or sublicenses granted to others in the ordinary course of
business which do not materially interfere with the ordinary conduct of the
business of the Issuer or any of its Restricted Subsidiaries and do not secure
any Indebtedness;
(14)
Liens arising
from Uniform Commercial Code financing statement filings regarding operating
leases entered into by the Issuer and its Restricted Subsidiaries in the
ordinary course of business;
(15)
Liens in
favor of the Issuer or any Guarantor;
(16)
Liens on
equipment of the Issuer or any of its Restricted Subsidiaries granted in the
ordinary course of business;
(17)
Liens on
accounts receivable and related assets incurred in connection with a Receivables
Facility;
(18)
Liens to
secure any refinancing, refunding, extension, renewal or replacement (or
successive refinancing, refunding, extensions, renewals or replacements) as a
whole, or in part, of any Indebtedness secured by any Lien referred to in the
foregoing clauses (6), (7), (8) and (9);
provided
,
however
,
that (a) such new Lien shall be limited to all or part of the same property
that secured the original Lien (plus improvements on such property), and
(b) the Indebtedness secured by such Lien at such time is not increased to
any amount greater than the sum of (i) the outstanding principal amount or,
if greater, committed amount of the Indebtedness described under clauses (6),
(7), (8) and (9) at the time the original Lien became a Permitted Lien
under the Senior Indenture, and (ii) an amount necessary to pay any fees
and expenses, including premiums, related to such refinancing, refunding,
extension, renewal or replacement;
77
(19)
deposits made
in the ordinary course of business to secure liability to insurance
carriers;
(20)
other Liens
securing obligations incurred in the ordinary course of business which
obligations do not exceed $20.0 million at any one time outstanding;
(21)
Liens
securing judgments for the payment of money not constituting an Event of Default
under clause (5) under the caption "Events of Default and Remedies" so long
as such Liens are adequately bonded and any appropriate legal proceedings that
may have been duly initiated for the review of such judgment have not been
finally terminated or the period within which such proceedings may be initiated
has not expired;
(22)
Liens in
favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods in the
ordinary course of business;
(23)
Liens
(i) of a collection bank arising under Section 4-210 of the Uniform
Commercial Code, or any comparable or successor provision, on items in the
course of collection, (ii) attaching to commodity trading accounts or other
commodity brokerage accounts incurred in the ordinary course of business, and
(iii) in favor of banking institutions arising as a matter of law
encumbering deposits (including the right of set-off) and which are within the
general parameters customary in the banking industry;
(24)
Liens deemed
to exist in connection with Investments in repurchase agreements permitted under
"Certain Covenants—Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock";
provided
that such Liens do not
extend to any assets other than those that are the subject of such repurchase
agreements;
(25)
Liens that
are contractual rights of set-off (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of
Indebtedness, (ii) relating to pooled deposit or sweep accounts of the
Issuer or any of its Restricted Subsidiaries to permit satisfaction of overdraft
or similar obligations incurred in the ordinary course of business of the Issuer
and its Restricted Subsidiaries or (iii) relating to purchase orders and
other agreements entered into with customers of the Issuer or any of its
Restricted Subsidiaries in the ordinary course of business;
(26)
Liens
encumbering reasonable customary initial deposits and margin deposits and
similar Liens attaching to commodity trading accounts or other brokerage
accounts incurred in the ordinary course of business and not for speculative
purposes; and
(27)
Liens arising
out of conditional sale, title retention, consignment or similar arrangements
for the sale or purchase of goods entered into by the Issuer or any Restricted
Subsidiary in the ordinary course of business.
For purposes
of this definition, the term "Indebtedness" shall be deemed to include interest
on such Indebtedness.
"
Person
"
means any individual, corporation, limited liability company, partnership, joint
venture, association, joint stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other
entity.
"
Plan of
Reorganization
" means any plan of reorganization, plan of liquidation,
agreement for composition, or other type of plan of arrangement proposed in or
in connection with any insolvency or liquidation proceeding.
"
Preferred
Stock
" means any Equity Interest with preferential rights of payment of
dividends or upon liquidation, dissolution or winding up.
"
Purchase
Money Obligations
" means any Indebtedness incurred to finance or refinance
the acquisition, leasing, construction or improvement of property (real or
personal) or assets (other than Capital Stock), and whether acquired through the
direct acquisition of such property or assets, or otherwise.
78
"
Qualified
Proceeds
" means the fair value of assets that are used or useful in, or
Capital Stock of any Person engaged in, a Similar Business;
provided
that
the fair market value of any such assets or Capital Stock shall be determined by
the Issuer in good faith.
"
Rating
Agencies
" means Moody's and S&P or if Moody's or S&P or both shall
not make a rating on the Senior Notes publicly available, a nationally
recognized statistical rating agency or agencies, as the case may be, selected
by the Issuer which shall be substituted for Moody's or S&P or both, as the
case may be.
"
Receivables
Facility
" means any of one or more receivables financing facilities as
amended, supplemented, modified, extended, renewed, restated or refunded from
time to time, the Obligations of which are non-recourse (except for customary
representations, warranties, covenants and indemnities made in connection with
such facilities) to the Issuer or any of its Restricted Subsidiaries (other than
a Receivables Subsidiary) pursuant to which the Issuer or any of its Restricted
Subsidiaries purports to sell its accounts receivable to either (a) a
Person that is not a Restricted Subsidiary or (b) a Receivables Subsidiary
that in turn funds such purchase by purporting to sell its accounts receivable
to a Person that is not a Restricted Subsidiary or by borrowing from such a
Person or from another Receivables Subsidiary that in turn funds itself by
borrowing from such a Person.
"
Receivables
Fees
" means distributions or payments made directly or by means of discounts
with respect to any accounts receivable or participation interest therein issued
or sold in connection with, and other fees paid to a Person that is not a
Restricted Subsidiary in connection with any Receivables Facility.
"
Receivables
Subsidiary
" means any Subsidiary formed for the purpose of facilitating or
entering into one or more Receivables Facilities, and in each case engages only
in activities reasonably related or incidental thereto.
"
Redemption
Date
" has the meaning set forth under "Optional Redemption—Senior
Notes."
"
Registration
Rights Agreement
" means the Registration Rights Agreement related to the
Senior Notes, dated as of the Issue Date, among the Issuer, the Guarantors and
the Initial Purchasers.
"
Related
Business Assets
" means assets (other than cash or Cash Equivalents) used or
useful in a Similar Business;
provided
that any assets received by the
Issuer or a Restricted Subsidiary in exchange for assets transferred by the
Issuer or a Restricted Subsidiary will not be deemed to be Related Business
Assets if they consist of securities of a Person, unless upon receipt of the
securities of such Person, such Person would become a Restricted Subsidiary.
"
Restricted
Investment
" means an Investment other than a Permitted Investment.
"
Restricted
Subsidiary
" means, at any time, any direct or indirect Subsidiary of the
Issuer (including any Foreign Subsidiary) that is not then an Unrestricted
Subsidiary;
provided
,
however
, that upon an Unrestricted
Subsidiary's ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be
included in the definition of "Restricted Subsidiary."
"
S&P
"
means Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., and any successor to its rating agency business.
"
Sale and
Lease-Back Transaction
" means any arrangement providing for the leasing by
the Issuer or any of its Restricted Subsidiaries of any real or tangible
personal property, which property has been or is to be sold or transferred by
the Issuer or such Restricted Subsidiary to a third Person in contemplation of
such leasing.
"
SEC
"
means the U.S. Securities and Exchange Commission.
"
Secured
Indebtedness
" means any Indebtedness of the Issuer or any of its Restricted
Subsidiaries secured by a Lien.
79
"
Securities
Act
" means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.
"
Senior
Credit Facilities
" means the ABL Facility and the General Credit
Facility.
"
Senior
Exchange Notes
" means any notes issued in exchange for the Senior Notes
pursuant to the Registration Rights Agreement or similar agreement.
"
Senior
Indebtedness
" means:
(1)
all
Indebtedness of the Issuer or any Guarantor outstanding under the Senior Credit
Facilities or the Senior Notes and related Guarantees (including interest
accruing on or after the filing of any petition in bankruptcy or similar
proceeding or for reorganization of the Issuer or any Guarantor (at the rate
provided for in the documentation with respect thereto, regardless of whether or
not a claim for post-filing interest is allowed in such proceedings)), and any
and all other fees, expense reimbursement obligations, indemnification amounts,
penalties, and other amounts (whether existing on the Issue Date or thereafter
created or incurred) and all obligations of the Issuer or any Guarantor to
reimburse any bank or other Person in respect of amounts paid under letters of
credit, acceptances or other similar instruments;
(2)
all Hedging
Obligations (and guarantees thereof) owing to a Lender (as defined in the Senior
Credit Facilities) or any Affiliate of such Lender (or any Person that was a
Lender or an Affiliate of such Lender at the time the applicable agreement
giving rise to such Hedging Obligation was entered into);
provided
that
such Hedging Obligations are permitted to be incurred under the terms of the
Senior Indenture;
(3)
any other
Indebtedness of the Issuer or any Guarantor permitted to be incurred under the
terms of the Senior Indenture, unless the instrument under which such
Indebtedness is incurred expressly provides that it is subordinated in right of
payment to the Senior Notes or any related Guarantee; and
(4)
all
Obligations with respect to the items listed in the preceding clauses (1),
(2) and (3);
provided
,
however
,
that Senior Indebtedness shall not include:
(a)
any
obligation of such Person to the Issuer or any of its Subsidiaries;
(b)
any liability
for federal, state, local or other taxes owed or owing by such Person;
(c)
any accounts
payable or other liability to trade creditors arising in the ordinary course of
business;
(d)
any
Indebtedness or other Obligation of such Person which is subordinate or junior
in any respect to any other Indebtedness or other Obligation of such Person;
or
(e)
that portion
of any Indebtedness which at the time of incurrence is incurred in violation of
the Senior Indenture.
"
Senior
Subordinated Indenture
" means the Senior Subordinated Indenture dated as of
the Issue Date, among the Issuer, the Guarantors, as guarantors and the Trustee,
as trustee, pursuant to which the Senior Subordinated Notes are issued.
"
Senior
Subordinated Notes
" means the $725,000,000 aggregate principal amount of
11.875%/12.625% Senior Subordinated Toggle Notes due 2017 issued by the Issuer
under the Senior Subordinated Indenture on the Issue Date.
"
Significant
Subsidiary
" means any Restricted Subsidiary that would be a "significant
subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such regulation is in effect on
the Issue Date.
80
"
Similar
Business
" means any business conducted or proposed to be conducted by the
Issuer and its Restricted Subsidiaries on the Issue Date or any business that is
similar, reasonably related, incidental or ancillary thereto.
"
Special
Interest
" means all additional interest then owing pursuant to the
Registration Rights Agreement.
"
Sponsor
Management Agreement
" means the management agreement between certain of the
management companies associated with the Investors and the Issuer.
"
Subordinated
Indebtedness
" means, with respect to the Senior Notes,
(1)
any
Indebtedness of the Issuer which is by its terms subordinated in right of
payment to the Senior Notes, and
(2)
any
Indebtedness of any Guarantor which is by its terms subordinated in right of
payment to the Guarantee of such entity of the Senior Notes.
"
Subsidiary
"
means, with respect to any Person:
(1)
any
corporation, association, or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of which more than
50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time of determination owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person or a combination thereof or is consolidated under
GAAP with such Person at such time; and
(2)
any
partnership, joint venture, limited liability company or similar entity of
which
(x)
more
than 50% of the capital accounts, distribution rights, total equity and voting
interests or general or limited partnership interests, as applicable, are owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof whether in the form
of membership, general, special or limited partnership or otherwise, and
(y)
such
Person or any Restricted Subsidiary of such Person is a controlling general
partner or otherwise controls such entity.
"
Total
Assets
" means the total assets of the Issuer and its Restricted Subsidiaries
on a consolidated basis, as shown on the most recent consolidated balance sheet
of the Issuer or such other Person as may be expressly stated.
"
Transactions
"
means the acquisition of all of the outstanding capital stock of Dollar General
Corporation, including the payment of the acquisition consideration in
connection therewith, the equity investment by the Investors and members of
management, the issuance of the Senior Notes and the Senior Subordinated Notes,
the tender offer and consent solicitation for any and all of the outstanding
8
5
/
8
% Notes due 2010 of Dollar General Corporation and the
execution of, and borrowings on the Issue Date under, the Senior Credit
Facilities and, the pledge and security arrangements in connection with the
foregoing, in each case as in effect on the Issue Date, and the related
transactions described in this prospectus under the section thereof entitled
"The Transactions."
"
Treasury
Rate
" means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity
(as compiled and published in the most recent Federal Reserve Statistical
Release H.15 (519) that has become publicly available at least two Business
Days prior to the Redemption Date (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to July 15, 2011;
provided
,
however
, that if the period from the Redemption Date to
July 15, 2011 is less than one year, the weekly average yield on actually
traded United States Treasury securities adjusted to a constant maturity of one
year will be used.
81
"
Trust
Indenture Act
" means the Trust Indenture Act of 1939, as amended (15 U.S.C
§§ 77aaa-777bbbb).
"
Unrestricted
Subsidiary
" means:
(1)
any
Subsidiary of the Issuer which at the time of determination is an Unrestricted
Subsidiary (as designated by the Issuer, as provided below); and
(2)
any
Subsidiary of an Unrestricted Subsidiary.
The Issuer
may designate any Subsidiary of the Issuer (including any existing Subsidiary
and any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Equity
Interests or Indebtedness of, or owns or holds any Lien on, any property of, the
Issuer or any Subsidiary of the Issuer (other than solely any Subsidiary of the
Subsidiary to be so designated);
provided
that:
(1)
any
Unrestricted Subsidiary must be an entity of which the Equity Interests entitled
to cast at least a majority of the votes that may be cast by all Equity
Interests having ordinary voting power for the election of directors or Persons
performing a similar function are owned, directly or indirectly, by the
Issuer;
(2)
such
designation complies with the covenants described under "Certain
Covenants—Limitation on Restricted Payments"; and
(3)
each of:
(a)
the
Subsidiary to be so designated; and
(b)
its
Subsidiaries
has not at
the time of designation, and does not thereafter, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Issuer or any Restricted Subsidiary.
The Issuer
may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided
that, immediately after giving effect to such designation, no
Default shall have occurred and be continuing and either:
(1)
the Issuer
could incur at least $1.00 of additional Indebtedness pursuant to the Fixed
Charge Coverage Ratio test described in the first paragraph under "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock"; or
(2)
the Fixed
Charge Coverage Ratio for the Issuer and its Restricted Subsidiaries would be
greater than such ratio for the Issuer and its Restricted Subsidiaries
immediately prior to such designation, in each case on a
pro forma
basis
taking into account such designation.
The Issuer
shall notify the Trustee of any such designation by promptly filing with the
Trustee a copy of the resolution of the board of directors of the Issuer or any
committee thereof giving effect to such designation and an Officer's Certificate
certifying that such designation complied with the foregoing provisions.
"
Voting
Stock
" of any Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the board of directors
of such Person.
"
Weighted
Average Life to Maturity
" means, when applied to any Indebtedness,
Disqualified Stock or Preferred Stock, as the case may be, at any date, the
quotient obtained by dividing:
82
(1)
the sum of
the products of the number of years from the date of determination to the date
of each successive scheduled principal payment of such Indebtedness or
redemption or similar payment with respect to such Disqualified Stock or
Preferred Stock multiplied by the amount of such payment; by
(2)
the sum of
all such payments.
"
Wholly-Owned
Subsidiary
" of any Person means a Subsidiary of such Person, 100% of the
outstanding Equity Interests of which (other than directors' qualifying shares)
shall at the time be owned by such Person or by one or more Wholly-Owned
Subsidiaries of such Person.
83
DESCRIPTION OF SENIOR SUBORDINATED NOTES
General
Certain terms
used in this description are defined under the subheading "Certain
Definitions."
Buck
Acquisition Corp. issued $725,000,000 aggregate principal amount of
11.875%/12.625% senior subordinated toggle notes due 2017 (the "
Senior
Subordinated Notes
") under an indenture dated July 6, 2007 (the
"
Senior Subordinated Indenture
") among Buck Acquisition Corp., the
Guarantors and U.S. Bank National Association (the successor trustee), as
trustee (the "Successor Trustee").  Immediately following the closing of
the offering and as part of the Transactions, Buck Acquisition Corp. merged with
and into Dollar General Corporation, with Dollar General Corporation continuing
as the surviving corporation and assuming all the obligations of Buck
Acquisition Corp. under the Senior Subordinated Indenture. In this description,
the terms "
we
," "
our
," "
us
," "
the Issuer
" and
"
the Company
" refer to Buck Acquisition Corp. prior to the merger
described above and to Dollar General Corporation as the surviving corporation
in the merger, together with its consolidated Subsidiaries (except that "the
Issuer" does not include consolidated subsidiaries). As of the date of this
prospectus, $655,891,000 aggregate principal amount of Senior Subordinated Notes
remained outstanding.
Effective
February 25, 2009 (the "Effective Date"), Wells Fargo Bank, National Association
(the "Prior Trustee") resigned as Trustee under the Senior Subordinated
Indenture.  The Company entered into an Instrument of Resignation,
Appointment and Acceptance (the "Instrument of Resignation"), effective as of
the Effective Date, with the Prior Trustee and the Successor Trustee.  The
instrument of Resignation provides that, effective as of the Effective Date, (1)
the Prior Trustee assigns, transfers, delivers and confirms to the Successor
Trustee all of its rights, title, interest under the Senior Subordinated
Indenture and all of its rights, title, interests, capacities, privileges,
duties and responsibilities as Trustee under the Senior Subordinated Indenture;
(2) the Company accepts the resignation of the Prior Trustee as Trustee under
the Senior Subordinated Indenture and appoints the Successor Trustee as Trustee
under the Senior Subordinated Indenture; and (3) the Successor Trustee accepts
its appointment as successor Trustee, and shall be vested with all of the
rights, title, interests, capacities, privileges, duties and responsibilities of
the Trustee, under the Senior Subordinated Indenture. Nothing contained in the
Instrument of Resignation shall in any way affect the Company's obligations to
the Prior Trustee under Section 7.07 of the Senior Subordinated Indenture or any
lien created thereunder. In this description, the term "Trustee" refers to the
Prior Trustee during the period prior to the Effective Date and to the Successor
Trustee for the period commencing on the Effective Date.
The following
description is only a summary of the material provisions of the Senior
Subordinated Indenture, does not purport to be complete and is qualified in its
entirety by reference to the provisions of that agreement, including the
definitions therein of certain terms used below. We urge you to read the Senior
Subordinated Indenture because it, and not this description, will define your
rights as Holders of Senior Subordinated Notes. You may request copies of the
Senior Subordinated Indenture at our address set forth under the heading
"Summary."
Brief Description of the
Senior Subordinated Notes
The Senior
Subordinated Notes:
•
are general
unsecured senior subordinated obligations of the Issuer;
•
are
subordinated in right of payment to all existing and future Senior Indebtedness
of the Issuer, including Indebtedness under the Issuer's Senior Credit
Facilities and the Issuer's Senior Notes;
•
are
pari
passu
in right of payment with all future unsecured Senior Subordinated
Indebtedness of the Issuer;
•
are
effectively subordinated to all Secured Indebtedness of the Issuer, including
Indebtedness under the Issuer's Senior Credit Facilities, to the extent of the
collateral securing such Indebtedness;
84
•
are senior
in right of payment to all future Subordinated Indebtedness of the Issuer;
•
are
structurally subordinated to any existing and future indebtedness and
liabilities of non-guarantor Subsidiaries, including the Issuer's Foreign
Subsidiaries and any Unrestricted Subsidiaries;
•
are
initially unconditionally guaranteed on a joint and several and senior
subordinated basis by each Restricted Subsidiary that guarantees the General
Credit Facility; and
•
are subject
to registration with the SEC pursuant to the Registration Rights Agreement.
Guarantees
The
Guarantors, as primary obligors and not merely as sureties, initially jointly
and severally fully and unconditionally guarantee, on a senior subordinated
basis, the performance and full and punctual payment when due, whether at
maturity, by acceleration or otherwise, of all obligations of the Issuer under
the Senior Subordinated Indenture and the Senior Subordinated Notes, whether for
payment of principal of, premium, if any, or interest or Special Interest in
respect of the Senior Subordinated Notes, expenses, indemnification or
otherwise, on the terms set forth in the Senior Subordinated Indenture by
executing the Senior Subordinated Indenture.
The
Restricted Subsidiaries which guarantee the General Credit Facility initially
guarantee the Senior Subordinated Notes. Each Guarantee is a general unsecured
senior subordinated obligation of the applicable Guarantor, is subordinated in
right of payment to all existing and any future Senior Indebtedness of such
Guarantor, is
pari passu
in right of payment with any future Senior
Subordinated Indebtedness of such Guarantor, is effectively subordinated to all
Secured Indebtedness of such Guarantor to the extent of the value of the
collateral securing such Indebtedness, and will rank senior in right of payment
to any future Subordinated Indebtedness of such Guarantor. The Senior
Subordinated Notes are structurally subordinated to Indebtedness and other
liabilities of Subsidiaries of the Issuer that do not guarantee the Senior
Subordinated Notes.
Not all of
the Issuer's Subsidiaries guarantee the Senior Subordinated Notes. In the event
of a bankruptcy, liquidation or reorganization of any of these non-Guarantor
Subsidiaries, the non-Guarantor Subsidiaries will pay the holders of their debt
and their trade creditors before they will be able to distribute any of their
assets to the Issuer. None of the Issuer's Subsidiaries which are Foreign
Subsidiaries, non-Wholly Owned Subsidiaries or any Receivables Subsidiaries will
guarantee the Senior Credit Facilities, the Senior Notes or the Senior
Subordinated Notes. Our Non-Guarantor Subsidiaries accounted for approximately
$97.9 million of net revenues and approximately $26.2 million of net
income, in each case, for 2008 and approximately $313.3 million of total
assets, and approximately $250.5 million of total liabilities, in each case
as of January 30, 2009.
The
obligations of each Guarantor under its Guarantee will be limited as necessary
to prevent the Guarantee from constituting a fraudulent conveyance under
applicable law.
Any entity
that makes a payment under its Guarantee will be entitled upon payment in full
of all guaranteed obligations under the Senior Subordinated Indenture to a
contribution from each other Guarantor in an amount equal to such other
Guarantor's
pro rata
portion of such payment based on the respective net
assets of all the Guarantors at the time of such payment determined in
accordance with GAAP.
If a
Guarantee were rendered voidable, it could be subordinated by a court to all
other indebtedness (including guarantees and other contingent liabilities) of
the Guarantor, and, depending on the amount of such indebtedness, a Guarantor's
liability on its Guarantee could be reduced to zero. See "Risk Factors—Risks
Related to the Notes—Federal and state fraudulent transfer laws may permit a
court to void the guarantees, and, if that occurs, you may not receive any
payments on the notes."
85
Each
Guarantee by a Guarantor will provide by its terms that it will be automatically
and unconditionally released and discharged upon:
(1)
(a)
any sale,
exchange or transfer (by merger or otherwise) of the Capital Stock of such
Guarantor (including any sale, exchange or transfer), after which the applicable
Guarantor is no longer a Restricted Subsidiary or all or substantially all the
assets of such Guarantor, which sale, exchange or transfer is made in compliance
with the applicable provisions of the Senior Subordinated Indenture;
(b)
the release
or discharge of the guarantee by such Guarantor of the Senior Credit Facilities
or such other guarantee that resulted in the creation of such guarantee, except
a discharge or release by or as a result of payment under such guarantee;
(c)
the
designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted
Subsidiary in compliance with the applicable provisions of the Senior
Subordinated Indenture; or
(d)
the
exercise by the Issuer of its legal defeasance option or covenant defeasance
option as described under "Legal Defeasance and Covenant Defeasance" or the
discharge of the Issuer's obligations under the Senior Subordinated Indenture in
accordance with the terms of the Senior Subordinated Indenture; and
(2)
such
Guarantor delivering to the Trustee an Officer's Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for in the Senior
Subordinated Indenture relating to such transaction have been complied with.
Other Senior Subordinated
Indebtedness Versus Senior Subordinated Notes
Only
Indebtedness of the Issuer or a Guarantor that is Senior Indebtedness ranks
senior to the Senior Subordinated Notes and the Guarantees in accordance with
the provisions of the Senior Subordinated Indenture. The Senior Subordinated
Notes and the Guarantees rank
pari passu
with all future Senior
Subordinated Indebtedness of the Issuer and the Guarantors.
The Issuer
and the Guarantors agree in the Senior Subordinated Indenture not to incur any
Indebtedness that is subordinate or junior in right of payment to Senior
Indebtedness, unless such Indebtedness is Senior Subordinated Indebtedness of
the applicable person or is expressly subordinated in right of payment to Senior
Subordinated Indebtedness of such person. The Senior Subordinated Indenture does
not treat (i) unsecured Indebtedness as subordinated or junior to Secured
Indebtedness merely because it is unsecured or (ii) Senior Indebtedness as
subordinated or junior to any other Senior Indebtedness merely because it has a
junior priority with respect to the same collateral.
Payment of Senior
Subordinated Notes
Neither the
Issuer nor any Guarantor are permitted to make payments of principal of or
premium, if any, or interest on the Senior Subordinated Notes (or pay any other
obligations relating to the Senior Subordinated Notes, including Special
Interest, fees, costs, expenses, indemnities and rescission or damage claims) or
make any deposit pursuant to the provisions described under "Legal Defeasance
and Covenant Defeasance" or "Satisfaction and Discharge" below and may not
purchase, redeem or otherwise retire any Senior Subordinated Notes
(collectively, "
pay the Senior Subordinated Notes
") (except in the form
of Permitted Junior Securities) if either of the following occurs (a "
Payment
Default
"):
86
(1)
any
Obligation on any Designated Senior Indebtedness of the Issuer is not paid in
full in cash when due (after giving effect to any applicable grace period);
or
(2)
any
other default on Designated Senior Indebtedness of the Issuer occurs and the
maturity of such Designated Senior Indebtedness is accelerated in accordance
with its terms;
unless, in either case, the
Payment Default has been cured or waived and any such acceleration has been
rescinded or such Designated Senior Indebtedness has been paid in full in cash.
Notwithstanding the foregoing, the Issuer is permitted to pay the Senior
Subordinated Notes if it and the Trustee receive written notice approving such
payment from the Representatives of all Designated Senior Indebtedness with
respect to which the Payment Default has occurred and is continuing.
During the
continuance of any default other than a Payment Default (a "
Non-Payment
Default
") with respect to any Designated Senior Indebtedness pursuant to
which the maturity thereof may be accelerated without further notice (except
such notice as may be required to effect such acceleration) or the expiration of
any applicable grace periods, the Issuer is not permitted to pay the Senior
Subordinated Notes (except in the form of Permitted Junior Securities) for a
period (a "
Payment Blockage Period
") commencing upon the receipt by the
Trustee (with a copy to the Issuer) of written notice (a "
Blockage
Notice
") of such default from the Representative of such Designated Senior
Indebtedness specifying an election to effect a Payment Blockage Period and
ending 179 days thereafter. The Payment Blockage Period will end earlier if
such Payment Blockage Period is terminated:
(1)
by
written notice to the Trustee and the Issuer from the Person or Persons who gave
such Blockage Notice;
(2)
because
the default giving rise to such Blockage Notice is cured, waived or otherwise no
longer continuing; or
(3)
because
such Designated Senior Indebtedness has been discharged or repaid in full in
cash.
Notwithstanding
the provisions described above, unless the holders of such Designated Senior
Indebtedness or the Representative of such Designated Senior Indebtedness have
accelerated the maturity of such Designated Senior Indebtedness, the Issuer and
related Guarantors are permitted to resume paying the Senior Subordinated Notes
after the end of such Payment Blockage Period. The Senior Subordinated Notes
shall not be subject to more than one Payment Blockage Period in any consecutive
360-day period irrespective of the number of defaults with respect to Designated
Senior Indebtedness during such period;
provided
that if any Payment
Blockage Notice is delivered to the Trustee by or on behalf of the holders of
Designated Senior Indebtedness of the Issuer (other than the holders of
Indebtedness under the Senior Credit Facilities), a Representative of holders of
Indebtedness under the Senior Credit Facilities may give another Payment
Blockage Notice within such period. However, in no event may the total number of
days during which any Payment Blockage Period or Periods on the Senior
Subordinated Notes is in effect exceed 179 days in the aggregate during any
consecutive 360-day period, and there must be at least 181 days during any
consecutive 360-day period during which no Payment Blockage Period is in effect.
Notwithstanding the foregoing, however, no Default that existed or was
continuing on the date of delivery of any Blockage Notice to the Trustee will
be, or be made, the basis for a subsequent Blockage Notice unless such default
has been cured or waived for a period of not less than 90 consecutive days (it
being acknowledged that any subsequent action, or any breach of any financial
covenants during the period after the date of delivery of such initial Blockage
Notice, that, in either case, would give rise to a Non-Payment Default pursuant
to any provisions under which a Non-Payment Default previously existed or was
continuing shall constitute a new Non-Payment Default for this purpose).
Upon any
payment or distribution of the assets of the Issuer upon a total or partial
liquidation or dissolution or reorganization of or similar proceeding relating
to the Issuer or its property:
87
(1)
the
holders of Senior Indebtedness of the Issuer will be entitled to receive payment
in full in cash of such Senior Indebtedness before the Holders are entitled to
receive any payment;
(2)
until
the Senior Indebtedness of the Issuer is paid in full in cash, any payment or
distribution to which Holders would be entitled but for the subordination
provisions of the Senior Subordinated Indenture will be made to holders of such
Senior Indebtedness as their interests may appear, except that Holders may
receive Permitted Junior Securities; and
(3)
if
a distribution is made to Holders that, due to the subordination provisions,
should not have been made to them, such Holders are required to hold it in trust
for the holders of Senior Indebtedness of the Issuer and pay it over to them as
their interests may appear.
The
subordination and payment blockage provisions described above will not prevent a
Default from occurring under the Senior Subordinated Indenture upon the failure
of the Issuer to pay principal, premium, if any, or interest with respect to the
Senior Subordinated Notes when due by their terms. If payment of the Senior
Subordinated Notes is accelerated because of an Event of Default, the Issuer or
the Trustee must promptly notify the holders of Designated Senior Indebtedness
or the Representative of such Designated Senior Indebtedness of the
acceleration. So long as there shall remain outstanding Senior Indebtedness
under the Senior Credit Facilities, a Blockage Notice with respect to the Senior
Credit Facilities may only be given by the respective administrative agents
thereunder unless otherwise agreed to in writing by the respective requisite
lenders named therein. If any Designated Senior Indebtedness is outstanding,
neither the Issuer nor any Guarantor may pay the Senior Subordinated Notes until
five Business Days after the Representatives of all the issues of Designated
Senior Indebtedness receive notice of such acceleration and, thereafter, may pay
the Senior Subordinated Notes only if the Senior Subordinated Indenture
otherwise permits payment at that time.
A Guarantor's
obligations under its Guarantee are senior subordinated obligations. As such,
the rights of Holders to receive payment by a Guarantor pursuant to its
Guarantee will be subordinated in right of payment to the rights of holders of
Senior Indebtedness of such Guarantor. The terms of the subordination and
payment blockage provisions described above with respect to the Issuer's
obligations under the Senior Subordinated Notes apply equally to a Guarantor and
the obligations of such Guarantor under its Guarantee.
A Holder by
its acceptance of Senior Subordinated Notes agrees to be bound by these
subordination provisions and authorizes and expressly directs the Trustee under
the Senior Subordinated Indenture, on its behalf, to take such action as may be
necessary or appropriate to effectuate the subordination provided for in the
Senior Subordinated Indenture and appoints the Trustee under the Senior
Subordinated Indenture its attorney-in-fact for such purpose.
By reason of
the subordination provisions contained in the Senior Subordinated Indenture, in
the event of a liquidation or insolvency proceeding, creditors of the Issuer or
a Guarantor who are holders of Senior Indebtedness of the Issuer or such
Guarantor, as the case may be, may recover more, ratably, than the Holders, and
creditors of the Issuer or a Guarantor who are not holders of Senior
Indebtedness may recover less, ratably, than holders of Senior Indebtedness of
the Issuer or such Guarantor and may recover more, ratably, than the Holders.
See "Risk Factors—Risks Related to the Notes—Your right to receive payments on
the senior subordinated notes will be junior to our existing and future senior
indebtedness, including borrowings under our new senior secured credit
facilities and the senior notes."
The terms of
the subordination provisions described above will not apply to payments from
money or the proceeds of Government Securities deposited in trust or with the
Trustee, as applicable, for the payment of principal of and interest on the
Senior Subordinated Notes pursuant to the provisions described under "Legal
Defeasance and Covenant Defeasance" or "Satisfaction and Discharge," if the
subordination provisions described in this section were not violated at the time
the applicable amounts were deposited in trust or with the Trustee, as
applicable, pursuant to such sections.
88
Paying
Agent and Registrar for the Senior Subordinated Notes
The Issuer
maintains one or more paying agents and a registrar for the Senior Subordinated
Notes with offices in the Borough of Manhattan, City of New York. As of the date
of this prospectus, the paying agent and the registrar for the Senior
Subordinated Notes is the Trustee.
The registrar
will maintain a register reflecting ownership of the Senior Subordinated Notes
outstanding from time to time and will make payments on and facilitate transfer
of Senior Subordinated Notes on behalf of the Issuer.
The Issuer
may change the paying agents or the registrars without prior notice to the
Holders. The Issuer or any of its Subsidiaries may act as a paying agent or
registrar.
Transfer and Exchange
A Holder may
transfer or exchange Senior Subordinated Notes in accordance with the Senior
Subordinated Indenture. The registrar and the Trustee may require a Holder to
furnish appropriate endorsements and transfer documents in connection with a
transfer of Senior Subordinated Notes. Holders will be required to pay all taxes
due on transfer. The Issuer will not be required to transfer or exchange any
Senior Subordinated Note selected for redemption. Also, the Issuer will not be
required to transfer or exchange any Senior Subordinated Note for a period of
15 days before a selection of Senior Subordinated Notes to be redeemed.
Principal, Maturity and
Interest
The Issuer
issued $725,000,000 in aggregate principal amount of Senior Subordinated Notes.
As of the date of this prospectus, $655,891,000 aggregate principal amount of
Senior Subordinated Notes remained outstanding. The Senior Subordinated Notes
will mature on July 15, 2017. Subject to compliance with the covenant
described below under the caption "Certain Covenants—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock," the Issuer
may issue additional Senior Subordinated Notes from time to time after this
offering under the Senior Subordinated Indenture (any such Senior Subordinated
Notes, "
Additional Senior Subordinated Notes
"). In addition, in
connection with the payment of PIK Interest or Partial PIK Interest in respect
of the Senior Subordinated Notes, the Issuer is entitled, without the consent of
the Holders, to increase the outstanding principal amount of the Senior
Subordinated Notes or issue additional Senior Subordinated Notes (the "
PIK
Notes
") under the Senior Subordinated Indenture on the same terms and
conditions as the Senior Subordinated Notes (in each case, the "
PIK
Payment
"). The Senior Subordinated Notes, the PIK Notes and any Additional
Senior Subordinated Notes subsequently issued under the Senior Subordinated
Indenture, are treated as a single class for all purposes under the Senior
Subordinated Indenture, including waivers, amendments, redemptions and offers to
purchase. Unless the context requires otherwise, references to "Senior
Subordinated Notes" for all purposes of the Senior Subordinated Indenture and
this "Description of Senior Subordinated Notes" include any PIK Notes and
Additional Senior Subordinated Notes that are actually issued, and references to
"principal amount" of the Senior Subordinated Notes includes any increase in the
principal amount of the outstanding Senior Notes as a result of a PIK
Payment.
Interest on
the Senior Subordinated Notes is payable semi-annually in arrears on
January 15 and July 15, commencing on January 15, 2008, to the
Holders of record on the immediately preceding January 1 and July 1.
Interest on the Senior Subordinated Notes accrues from the most recent date to
which interest has been paid or, if no interest has been paid, from and
including the Issue Date. Interest on the Senior Subordinated Notes will be
computed on the basis of a 360-day year comprised of twelve 30-day months. For
any interest payment period after the initial interest payment period and prior
to July 15, 2011,
89
The
Issuer may, at its option, elect to pay interest on the Senior Subordinated
Notes:
•
entirely in
cash ("
Cash Interest
");
•
entirely by
increasing the principal amount of the outstanding Senior Subordinated Notes or
by issuing PIK Notes ("
PIK Interest
"); or
•
on 50% of
the outstanding principal amount of the Senior Subordinated Notes in cash and on
50% of the principal amount by increasing the principal amount of the
outstanding Senior Subordinated Notes or by issuing PIK Notes ("
Partial PIK
Interest
").
The Issuer
must elect the form of interest payment with respect to each interest period by
delivering a notice to the Trustee at least 30 days prior to the beginning
of each interest period. The Trustee shall promptly deliver a corresponding
notice to the Holders. In the absence of such an election for any interest
period, interest on the Senior Subordinated Notes shall be payable according to
the election for the previous interest period. Interest for the first interest
period commencing on the Issue Date shall be payable entirely in cash. After
July 15, 2011, the Issuer will make all interest payments on the Senior
Subordinated Notes entirely in cash. Notwithstanding anything to the contrary,
the payment of accrued interest in connection with any redemption of Senior
Subordinated Notes as described under "—Optional Redemption" or "Repurchase at
the Option of Holders" shall be made solely in cash.
Cash Interest
on the Senior Subordinated Notes will accrue at a rate of 11.875% per annum and
be payable in cash. PIK Interest on the Senior Subordinated Notes will accrue at
a rate of 12.625% per annum and be payable (x) with respect to Senior
Subordinated Notes represented by one or more global notes registered in the
name of, or held by, The Depository Trust Company ("
DTC
") or its nominee
on the relevant record date, by increasing the principal amount of the
outstanding global Senior Subordinated Note by an amount equal to the amount of
PIK Interest for the applicable interest period (rounded up to the nearest
$1,000) and (y) with respect to Senior Subordinated Notes represented by
certificated notes, by issuing PIK Notes in certificated form in an aggregate
principal amount equal to the amount of PIK Interest for the applicable period
(rounded up to the nearest whole dollar), and the Trustee will, at the request
of the Issuer, authenticate and deliver such PIK Notes in certificated form for
original issuance to the Holders on the relevant record date, as shown by the
records of the register of Holders. In the event that the Issuer elects to pay
Partial PIK Interest for any interest period, each Holder will be entitled to
receive Cash Interest in respect of 50% of the principal amount of the Senior
Subordinated Notes held by such Holder on the relevant record date and PIK
Interest in respect of 50% of the principal amount of the Senior Subordinated
Notes held by such Holder on the relevant record date. Following an increase in
the principal amount of the outstanding global Senior Subordinated Notes as a
result of a PIK Payment, such global Senior Subordinated Notes will bear
interest on such increased principal amount from and after the date of such PIK
Payment. Any PIK Notes issued in certificated form will be dated as of the
applicable interest payment date and will bear interest from and after such
date. All Senior Subordinated Notes issued pursuant to a PIK Payment will mature
on July 15, 2017 and will be governed by, and subject to the terms,
provisions and conditions of, the Senior Subordinated Indenture and shall have
the same rights and benefits as the Senior Subordinated Notes issued on the
Issue Date. Any certificated PIK Notes will be issued with the description "PIK"
on the face of such PIK Note.
If the Senior
Subordinated Notes would otherwise constitute "applicable high yield discount
obligations" within the meaning of Section 163(i)(1) of the Code, at the
end of each accrual period ending after the fifth anniversary of the Senior
Subordinated Notes' issuance (each, an "
AHYDO redemption date
"), the
Issuer will be required to redeem for cash a portion of each Senior Subordinated
Note then outstanding equal to the "Mandatory Principal Redemption Amount" (such
redemption, a "
Mandatory Principal Redemption
"). The redemption price for
the portion of each Senior Subordinated Note redeemed pursuant to a Mandatory
Principal Redemption will be 100% of the principal amount of such portion plus
any accrued interest thereon on the date of redemption. The "Mandatory Principal
Redemption Amount" means, as of each AHYDO redemption date, the excess, if any,
of (a) the aggregate amount of accrued and unpaid interest and all accrued
and unpaid "original issue discount" (as defined in Section 1273(a)(1) of
the Code) with respect to the Senior Subordinated Notes, over (b) an amount
equal to the product of (i) the "issue price" (as defined in Sections
1273(b) and 1274(a) of the Code) of the Senior Subordinated Notes multiplied by
(ii) the "yield to maturity" (as defined in the Treasury Regulation
Section 1.1272-1(b)(1)(i)) of the Senior Subordinated Notes. No partial
redemption or repurchase of the Senior Subordinated Notes prior to any AHYDO
redemption date pursuant to any other provision of the Senior Subordinated
Indenture will
90
alter
the Issuer's obligation to make any Mandatory Principal Redemption with respect
to any Senior Subordinated Notes that remain outstanding on the AHYDO redemption
date.
Special
Interest
Special
Interest may accrue on the Senior Subordinated Notes in certain circumstances
pursuant to the Registration Rights Agreement. Any Special Interest on the
Senior Subordinated Notes will be payable in the same form elected by the Issuer
for payment of interest for the applicable interest payment period. All
references in the Senior Subordinated Indenture, in any context, to any interest
or other amount payable on or with respect to the Senior Subordinated Notes
shall be deemed to include any Special Interest pursuant to the Registration
Rights Agreement. Principal of, premium, if any, and interest on the Senior
Subordinated Notes will be payable at the office or agency of the Issuer
maintained for such purpose within the City and State of New York or, at the
option of the Issuer, payment of interest may be made by check mailed to the
Holders at their respective addresses set forth in the register of Holders;
provided
that all payments of principal, premium, if any, and interest
with respect to the Senior Subordinated Notes represented by one or more global
notes registered in the name of or held by DTC or its nominee will be made by
wire transfer of immediately available funds to the accounts specified by the
Holder or Holders thereof. Until otherwise designated by the Issuer, the
Issuer's office or agency in New York will be the office of the Trustee
maintained for such purpose.
Mandatory Redemption; Offers
to Purchase; Open Market Purchases
Except as set
forth in the last paragraph under "Principal, Maturity and Interest," the Issuer
will not be required to make any mandatory redemption or sinking fund payments
with respect to the Senior Subordinated Notes. However, under certain
circumstances, the Issuer may be required to offer to purchase Senior
Subordinated Notes as described under the caption "Repurchase at the Option of
Holders." The Issuer may from time to time acquire any Senior Subordinated Notes
by means other than a redemption, whether by tender offer, in open market
purchases, through negotiated transactions or otherwise.
Optional Redemption
Except as set
forth below, the Issuer will not be entitled to redeem Senior Subordinated Notes
at its option prior to July 15, 2012.
At any time
prior to July 15, 2012, the Issuer may redeem all or a part of the Senior
Subordinated Notes, upon not less than 30 nor more than 60 days' prior
notice mailed by first-class mail to the registered address of each Holder or
otherwise in accordance with the procedures of DTC, at a redemption price equal
to 100% of the principal amount of the Senior Subordinated Notes redeemed plus
the Applicable Premium as of, and accrued and unpaid interest and Special
Interest, if any, to the date of redemption (the "
Redemption Date
"),
subject to the rights of Holders on the relevant record date to receive interest
due on the relevant interest payment date.
On and after
July 15, 2012, the Issuer may redeem the Senior Subordinated Notes, in
whole or in part, upon not less than 30 nor more than 60 days' prior notice
mailed by first-class mail to the registered address of each Holder or otherwise
in accordance with the procedures of DTC, at the redemption prices (expressed as
percentages of principal amount of the Senior Subordinated Notes to be redeemed)
set forth below, plus accrued and unpaid interest thereon and Special Interest,
if any, to the applicable Redemption Date, subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
interest payment date, if redeemed during the twelve-month period beginning on
July 15 of each of the years indicated below:
Year
Percentage
2012
105.938%
2013
103.958%
2014
101.979%
2015 and
thereafter
100.000%
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In addition,
until July 15, 2010, the Issuer may, at its option, on one or more
occasions redeem up to 35% of the aggregate principal amount of Senior
Subordinated Notes at a redemption price equal to 111.875% of the aggregate
principal amount thereof, plus accrued and unpaid interest thereon and Special
Interest, if any, to the applicable Redemption Date, subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant interest payment date, with the net cash proceeds of one or more Equity
Offerings;
provided
that at least 50% of the sum of the original
aggregate principal amount of Senior Subordinated Notes issued under the Senior
Subordinated Indenture and the original principal amount of any Additional
Senior Subordinated Notes issued under the Senior Subordinated Indenture after
the Issue Date remains outstanding immediately after the occurrence of each such
redemption;
provided further
that each such redemption occurs within
90 days of the date of closing of each such Equity Offering.
Notice of
redemption may be given prior to the redemption thereof, and any such redemption
or notice may, at the Issuer's discretion, be subject to one or more conditions
precedent, including, but not limited to, completion of an Equity Offering or
other corporate transaction.
If the Issuer
redeems less than all of the outstanding Senior Subordinated Notes, the Trustee
shall select the Senior Subordinated Notes to be redeemed in the manner
described under "Repurchase at the Option of Holders—Selection and Notice."
Repurchase at the Option of
Holders
Change
of Control
The Senior
Subordinated Notes provide that if a Change of Control occurs, unless the Issuer
has previously or concurrently mailed a redemption notice with respect to all
the outstanding Senior Subordinated Notes as described under "Optional
Redemption," the Issuer will make an offer to purchase all of the Senior
Subordinated Notes pursuant to the offer described below (the "
Change of
Control Offer
") at a price in cash (the "
Change of Control Payment
")
equal to 101% of the aggregate principal amount thereof plus accrued and unpaid
interest and Special Interest, if any, to the date of purchase, subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date. Within 30 days following any Change
of Control, the Issuer will send notice of such Change of Control Offer by
first-class mail, with a copy to the Trustee, to each Holder to the address of
such Holder appearing in the security register or otherwise in accordance with
the procedures of DTC, with the following information:
(1)
that a Change
of Control Offer is being made pursuant to the covenant entitled "Change of
Control" and that all Senior Subordinated Notes properly tendered pursuant to
such Change of Control Offer will be accepted for payment by the Issuer;
(2)
the purchase
price and the purchase date, which will be no earlier than 30 days nor
later than 60 days from the date such notice is mailed (the "
Change of
Control Payment Date
");
(3)
that any
Senior Subordinated Note not properly tendered will remain outstanding and
continue to accrue interest;
(4)
that unless
the Issuer defaults in the payment of the Change of Control Payment, all Senior
Subordinated Notes accepted for payment pursuant to the Change of Control Offer
will cease to accrue interest on the Change of Control Payment Date;
(5)
that Holders
electing to have any Senior Subordinated Notes purchased pursuant to a Change of
Control Offer will be required to surrender such Senior Subordinated Notes, with
the form entitled "Option of Holder to Elect Purchase" on the reverse of such
Senior Subordinated Notes completed, to the paying agent and at the address
specified in the notice prior to the close of business on the third Business Day
preceding the Change of Control Payment Date;
92
(6)
that Holders
will be entitled to withdraw their tendered Senior Subordinated Notes and their
election to require the Issuer to purchase such Senior Subordinated Notes;
provided
that the paying agent receives, not later than the close of
business on the 30th day following the date of the Change of Control notice, a
telegram, facsimile transmission or letter setting forth the name of the Holder,
the principal amount of Senior Subordinated Notes tendered for purchase, and a
statement that such Holder is withdrawing its tendered Senior Subordinated Notes
and its election to have such Senior Subordinated Notes purchased;
(7)
that if the
Issuer is redeeming less than all of the Senior Subordinated Notes, the Holders
of the remaining Senior Subordinated Notes will be issued new Senior
Subordinated Notes that will be equal in principal amount to the unpurchased
portion of the Senior Subordinated Notes surrendered. The unpurchased portion of
the Senior Subordinated Notes must be equal to $2,000 or an integral multiple of
$1,000 in excess thereof; and
(8)
the other
instructions, as determined by us, consistent with the covenant described
hereunder, that a Holder must follow.
The Issuer
will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent they are
applicable in connection with the repurchase of Senior Subordinated Notes
pursuant to a Change of Control Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of the Senior
Subordinated Indenture, the Issuer will comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations
described in the Senior Subordinated Indenture by virtue thereof.
On the Change
of Control Payment Date, the Issuer will, to the extent permitted by law,
(1)
accept for
payment all Senior Subordinated Notes issued by it or portions thereof properly
tendered pursuant to the Change of Control Offer;
(2)
deposit with
the paying agent an amount equal to the aggregate Change of Control Payment in
respect of all Senior Subordinated Notes or portions thereof so tendered;
and
(3)
deliver, or
cause to be delivered, to the Trustee for cancellation the Senior Subordinated
Notes so accepted together with an Officer's Certificate to the Trustee stating
that such Senior Subordinated Notes or portions thereof have been tendered to
and purchased by the Issuer.
The paying
agent will promptly mail to each Holder the Change of Control Payment for such
Senior Subordinated Notes, and the Trustee will promptly authenticate and mail
(or cause to be transferred by book entry) to each Holder a new Senior
Subordinated Note equal in principal amount to any unpurchased portion of the
Senior Subordinated Notes surrendered, if any;
provided
that each such
new Senior Subordinated Note will be in a principal amount of $2,000 or an
integral multiple of $1,000 in excess thereof.
The Senior
Credit Facilities and Senior Notes will limit, and future credit agreements or
other agreements relating to the Senior Indebtedness to which the Issuer becomes
a party may prohibit or limit, the Issuer from purchasing any Senior
Subordinated Notes as a result of a Change of Control. In the event a Change of
Control occurs at a time when the Issuer is prohibited from purchasing the
Senior Subordinated Notes, the Issuer could seek the consent of its lenders and
the holders of the Senior Notes to permit the purchase of the Senior
Subordinated Notes or could attempt to refinance the borrowings and Senior Notes
that contain such prohibition. In such case, the Issuer's failure to purchase
tendered Senior Subordinated Notes would constitute an Event of Default under
the Senior Subordinated Indenture. If, as a result thereof, a default occurs
with respect to any Senior Indebtedness, the subordination provisions in the
Senior Subordinated Indenture would restrict payments to the Holders under
certain circumstances. The Senior Credit Facilities will, and future credit
agreements or other agreements relating to Senior Indebtedness to which the
Issuer becomes a party may, provide that certain change of control events with
respect to the Issuer would constitute a default thereunder (including a Change
of Control under the Senior Subordinated Indenture). If we experience a change
of control that triggers a default under our Senior Credit Facilities, we could
seek a waiver of such default or seek to refinance our Senior Credit Facilities.
In the event we do not obtain such a
93
waiver
or refinance the Senior Credit Facilities, such default could result in amounts
outstanding under our Senior Credit Facilities being declared due and payable
and could cause a Receivables Facility to be wound down.
Our ability
to pay cash to the Holders following the occurrence of a Change of Control may
be limited by our then-existing financial resources. Therefore, sufficient funds
may not be available when necessary to make any required repurchases.
The Change of
Control purchase feature of the Senior Subordinated Notes may in certain
circumstances make more difficult or discourage a sale or takeover of us and,
thus, the removal of incumbent management. The Change of Control purchase
feature is a result of negotiations between the Initial Purchasers and us. After
the Issue Date, we have no present intention to engage in a transaction
involving a Change of Control, although it is possible that we could decide to
do so in the future. Subject to the limitations discussed below, we could, in
the future, enter into certain transactions, including acquisitions,
refinancings or other recapitalizations, that would not constitute a Change of
Control under the Senior Subordinated Indenture, but that could increase the
amount of indebtedness outstanding at such time or otherwise affect our capital
structure or credit ratings. Restrictions on our ability to incur additional
Indebtedness are contained in the covenants described under "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock" and "Certain Covenants—Liens." Such restrictions in
the Senior Subordinated Indenture can be waived only with the consent of the
Holders of a majority in principal amount of the Senior Subordinated Notes then
outstanding. Except for the limitations contained in such covenants, however,
the Senior Subordinated Indenture will not contain any covenants or provisions
that may afford Holders protection in the event of a highly leveraged
transaction.
The Issuer
will not be required to make a Change of Control Offer following a Change of
Control if a third party makes the Change of Control Offer in the manner, at the
times and otherwise in compliance with the requirements set forth in the Senior
Subordinated Indenture applicable to a Change of Control Offer made by us and
purchases all Senior Subordinated Notes validly tendered and not withdrawn under
such Change of Control Offer. Notwithstanding anything to the contrary herein, a
Change of Control Offer may be made in advance of a Change of Control,
conditional upon such Change of Control, if a definitive agreement is in place
for the Change of Control at the time the Change of Control Offer is made.
The
definition of "Change of Control" includes a disposition of all or substantially
all of the assets of the Issuer to any Person. Although there is a limited body
of case law interpreting the phrase "substantially all," there is no precise
established definition of the phrase under applicable law. Accordingly, in
certain circumstances there may be a degree of uncertainty as to whether a
particular transaction would involve a disposition of "all or substantially all"
of the assets of the Issuer. As a result, it may be unclear as to whether a
Change of Control has occurred and whether a Holder may require the Issuer to
make an offer to repurchase the Senior Subordinated Notes as described
above.
The
provisions under the Senior Subordinated Indenture relating to the Issuer's
obligation to make an offer to repurchase the Senior Subordinated Notes as a
result of a Change of Control may be waived or modified with the written consent
of the Holders of a majority in principal amount of the Senior Subordinated
Notes.
Asset
Sales
The Senior
Subordinated Indenture provides that the Issuer will not, and will not permit
any of its Restricted Subsidiaries to consummate, directly or indirectly, an
Asset Sale, unless:
(1)
the Issuer or
such Restricted Subsidiary, as the case may be, receives consideration at the
time of such Asset Sale at least equal to the fair market value (as determined
in good faith by the Issuer) of the assets sold or otherwise disposed of;
and
(2)
except in the
case of a Permitted Asset Swap, at least 75% of the consideration therefor
received by the Issuer or such Restricted Subsidiary, as the case may be, is in
the form of cash or Cash Equivalents;
provided
that the amount of:
94
(a)
any
liabilities (as shown on the Issuer's or such Restricted Subsidiary's most
recent balance sheet or in the footnotes thereto) of the Issuer or such
Restricted Subsidiary, other than liabilities that are by their terms
subordinated to the Senior Subordinated Notes, that are assumed by the
transferee of any such assets and for which the Issuer and all of its Restricted
Subsidiaries have been validly released by all creditors in writing,
(b)
any
securities received by the Issuer or such Restricted Subsidiary from such
transferee that are converted by the Issuer or such Restricted Subsidiary into
cash (to the extent of the cash received) within 180 days following the
closing of such Asset Sale, and
(c)
any
Designated Non-cash Consideration received by the Issuer or such Restricted
Subsidiary in such Asset Sale having an aggregate fair market value, taken
together with all other Designated Non-cash Consideration received pursuant to
this clause (c) that is at that time outstanding, not to exceed 5.0% of
Total Assets at the time of the receipt of such Designated Non-cash
Consideration, with the fair market value of each item of Designated Non-cash
Consideration being measured at the time received and without giving effect to
subsequent changes in value,
shall be
deemed to be cash for purposes of this provision and for no other purpose.
Within 360
days after the receipt of any Net Proceeds of any Asset Sale, the Issuer or such
Restricted Subsidiary, at its option, may apply the Net Proceeds from such Asset
Sale,
(1)
to
permanently reduce:
(a)
Obligations
under any Senior Indebtedness, the Senior Subordinated Notes or any other Senior
Subordinated Indebtedness, in each case, of the Issuer or any Guarantor (other
than Obligations owed to the Issuer or a Restricted Subsidiary) and, in the case
of Obligations under revolving credit facilities or other similar Indebtedness,
to correspondingly permanently reduce commitments with respect thereto;
provided
that if the Issuer or any Restricted Subsidiary shall so reduce
Obligations under any Senior Subordinated Indebtedness, the Issuer or such
Guarantor will, equally and ratably, reduce Obligations under the Senior
Subordinated Notes by, at its option, (A) redeeming Senior Subordinated
Notes, (B) making an offer (in accordance with the procedures set forth
below for an Asset Sale Offer) to all Holders to purchase their Senior
Subordinated Notes at 100% of the principal amount thereof,
plus
the
amount of accrued and unpaid interest and Special Interest, if any, on the
principal amount of Senior Subordinated Notes to be repurchased or
(C) purchasing Senior Subordinated Notes through open market purchases (to
the extent such purchases are at a price equal to or higher than 100% of the
principal amount thereof) in a manner that complies with the Senior Subordinated
Indenture and applicable securities law; or
(b)
Indebtedness
of a Restricted Subsidiary that is not a Guarantor, other than Indebtedness owed
to the Issuer or another Restricted Subsidiary;
(2)
to make
(a) an Investment in any one or more businesses,
provided
that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (b) capital expenditures or
(c) acquisitions of other assets, in each of (a), (b) and (c), used or
useful in a Similar Business; or
(3)
to make an
Investment in (a) any one or more businesses,
provided
that such
Investment in any business is in the form of the acquisition of Capital Stock
and results in the Issuer or another of its Restricted Subsidiaries, as the case
may be, owning an amount of the Capital Stock of such business such that it
constitutes a Restricted Subsidiary, (b) properties or
(c) acquisitions of other assets that, in each of (a), (b) and (c),
replace the businesses, properties and/or assets that are the subject of such
Asset Sale;
provided
that, in the
case of clauses (2) and (3) above, a binding commitment shall be
treated as a permitted application of the Net Proceeds from the date of such
commitment so long as the Issuer, or such other Restricted
95
Subsidiary
enters into such commitment with the good faith expectation that such Net
Proceeds will be applied to satisfy such commitment within 180 days of such
commitment (an "
Acceptable Commitment
") and, in the event any Acceptable
Commitment is later cancelled or terminated for any reason before the Net
Proceeds are applied in connection therewith, the Issuer or such Restricted
Subsidiary enters into another Acceptable Commitment (a "
Second
Commitment
") within 180 days of such cancellation or termination;
provided
,
further
, that if any Second Commitment is later
cancelled or terminated for any reason before such Net Proceeds are applied,
then such Net Proceeds shall constitute Excess Proceeds.
Any Net
Proceeds from Asset Sales that are not invested or applied as provided and
within the time period set forth in the first sentence of the preceding
paragraph will be deemed to constitute "
Excess Proceeds
." When the
aggregate amount of Excess Proceeds exceeds $75.0 million, the Issuer shall
make an offer to all Holders and, if required or permitted by the terms of any
Senior Subordinated Indebtedness, to the holders of such Senior Subordinated
Indebtedness (an "
Asset Sale Offer
"), to purchase the maximum aggregate
principal amount of the Senior Subordinated Notes and such Senior Indebtedness
that is a minimum of $2,000 or an integral multiple of $1,000 in excess thereof
that may be purchased out of the Excess Proceeds at an offer price in cash in an
amount equal to 100% of the principal amount thereof, plus accrued and unpaid
interest and Special Interest, if any, to the date fixed for the closing of such
offer, in accordance with the procedures set forth in the Senior Subordinated
Indenture. The Issuer will commence an Asset Sale Offer with respect to Excess
Proceeds within ten Business Days after the date that Excess Proceeds exceed
$75.0 million by mailing the notice required pursuant to the terms of the
Senior Subordinated Indenture, with a copy to the Trustee.
To the extent
that the aggregate amount of Senior Subordinated Notes and such Senior
Subordinated Indebtedness tendered pursuant to an Asset Sale Offer is less than
the Excess Proceeds, the Issuer may use any remaining Excess Proceeds for
general corporate purposes, subject to other covenants contained in the Senior
Subordinated Indenture. If the aggregate principal amount of Senior Subordinated
Notes or such Senior Subordinated Indebtedness surrendered by such holders
thereof exceeds the amount of Excess Proceeds, the Trustee shall select the
Senior Subordinated Notes and such other Senior Subordinated Indebtedness to be
purchased on a
pro rata
basis based on the accreted value or principal
amount of the Senior Subordinated Notes or such Senior Subordinated Indebtedness
tendered. Upon completion of any such Asset Sale Offer, the amount of Excess
Proceeds shall be reset at zero. Additionally, the Issuer may, at its option,
make an Asset Sale Offer using proceeds from any Asset Sale at any time after
consummation of such Asset Sale;
provided
that such Asset Sale Offer
shall be in an aggregate amount of not less than $75.0 million. Upon
consummation of such Asset Sale Offer, any Net Proceeds not required to be used
to purchase Senior Subordinated Notes shall not be deemed Excess Proceeds.
Pending the
final application of any Net Proceeds pursuant to this covenant, the holder of
such Net Proceeds may apply such Net Proceeds temporarily to reduce Indebtedness
outstanding under a revolving credit facility or otherwise invest such Net
Proceeds in any manner not prohibited by the Senior Subordinated Indenture.
The Issuer
will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws or
regulations are applicable in connection with the repurchase of the Senior
Subordinated Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with the provisions of
the Senior Subordinated Indenture, the Issuer will comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations described in the Senior Subordinated Indenture by virtue
thereof.
The Senior
Credit Facilities and the Senior Notes will prohibit or limit (subject to
limited exceptions), and future credit agreements or other agreements to which
the Issuer becomes a party may limit or prohibit, the Issuer from purchasing any
Senior Subordinated Notes as a result of an Asset Sale Offer. In the event the
Issuer is required to make an Asset Sale Offer at a time when the Issuer is
prohibited from purchasing the Senior Subordinated Notes, the Issuer could seek
the consent of its lenders to permit the purchase of the Senior Subordinated
Notes or could attempt to refinance the borrowings and Senior Notes that contain
such prohibition. If the Issuer does not obtain such consent or repay such
borrowings or Senior Notes, the Issuer will remain prohibited from purchasing
the Senior Subordinated Notes. In such case, the Issuer's failure to purchase
tendered Senior Subordinated Notes would constitute an Event of Default under
the Senior Subordinated Indenture.
96
The
provisions under the Senior Subordinated Indenture relative to the Issuer's
obligation to make an offer to repurchase the Senior Subordinated Notes as a
result of an Asset Sale may be waived or modified with the written consent of
the Holders of a majority in principal amount of the Senior Subordinated
Notes.
Selection
and Notice
If the Issuer
is redeeming less than all of the Senior Subordinated Notes issued at any time,
the Trustee will select the Senior Subordinated Notes to be redeemed (a) if
the Senior Subordinated Notes are listed on any national securities exchange, in
compliance with the requirements of the principal national securities exchange
on which the Senior Subordinated Notes are listed, (b) on a
pro rata
basis to the extent practicable or (c) by lot or such other similar method
in accordance with the procedures of DTC.
Notices of
purchase or redemption shall be mailed by first-class mail, postage prepaid, at
least 30 but not more than 60 days before the purchase or Redemption Date
to each Holder at such Holder's registered address or otherwise in accordance
with the procedures of DTC, except that redemption notices may be mailed more
than 60 days prior to a Redemption Date if the notice is issued in
connection with a defeasance of the Senior Subordinated Notes or a satisfaction
and discharge of the Senior Subordinated Indenture. If any Senior Subordinated
Note is to be purchased or redeemed in part only, any notice of purchase or
redemption that relates to such Senior Subordinated Note shall state the portion
of the principal amount thereof that has been or is to be purchased or
redeemed.
The Issuer
will issue a new Senior Subordinated Note in a principal amount equal to the
unredeemed portion of the original Senior Subordinated Note in the name of the
Holder upon cancellation of the original Senior Subordinated Note. Senior
Subordinated Notes called for redemption become due on the date fixed for
redemption. On and after the Redemption Date, interest ceases to accrue on
Senior Subordinated Notes or portions thereof called for redemption.
Certain Covenants
Limitation
on Restricted Payments
The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly:
(I)
 declare or pay any dividend or make any payment or distribution on account
of the Issuer's, or any of its Restricted Subsidiaries' Equity Interests,
including any dividend or distribution payable in connection with any merger or
consolidation other than:
(a)
dividends
or distributions by the Issuer payable solely in Equity Interests (other than
Disqualified Stock) of the Issuer; or
(b)
dividends
or distributions by a Restricted Subsidiary so long as, in the case of any
dividend or distribution payable on or in respect of any class or series of
securities issued by a Restricted Subsidiary other than a Wholly-Owned
Subsidiary, the Issuer or a Restricted Subsidiary receives at least its
pro
rata
share of such dividend or distribution in accordance with its Equity
Interests in such class or series of securities;
(II)
 purchase, redeem, defease or otherwise acquire or retire for value any
Equity Interests of the Issuer or any direct or indirect parent of the Issuer,
including in connection with any merger or consolidation;
(III)
 make any principal payment on, or redeem, repurchase, defease or otherwise
acquire or retire for value in each case, prior to any scheduled repayment,
sinking fund payment or maturity, any Subordinated Indebtedness, other than:
97
(a)
Indebtedness
permitted under clauses (8) and (9) of the covenant described under
"—Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock"; or
(b)
the
purchase, repurchase or other acquisition of Subordinated Indebtedness purchased
in anticipation of satisfying a sinking fund obligation, principal installment
or final maturity, in each case due within one year of the date of purchase,
repurchase or acquisition; or
(IV)
 make any Restricted Investment
(all such payments and other
actions set forth in clauses (I) through (IV) above (other than any
exception thereto) being collectively referred to as "
Restricted
Payments
"), unless, at the time of such Restricted Payment:
(1)
no Default
shall have occurred and be continuing or would occur as a consequence
thereof;
(2)
immediately
after giving effect to such transaction on a
pro forma
basis, the Issuer
could incur $1.00 of additional Indebtedness under the provisions of the first
paragraph of the covenant described under "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock"; and
(3)
such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Issuer and its Restricted Subsidiaries after the Issue Date
(including Restricted Payments permitted by clauses (1), (2) (with respect
to the payment of dividends on Refunding Capital Stock (as defined below)
pursuant to clause (b) thereof only), (6)(c), (9) and (14) of the
next succeeding paragraph, but excluding all other Restricted Payments permitted
by the next succeeding paragraph), is less than the sum of (without
duplication):
(a)
50%
of the Consolidated Net Income of the Issuer for the period (taken as one
accounting period) beginning May 4, 2007, to the end of the Issuer's most
recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment, or, in the case such
Consolidated Net Income for such period is a deficit, minus 100% of such
deficit;
plus
(b)
100%
of the aggregate net cash proceeds and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received by
the Issuer since immediately after the Issue Date from the issue or sale of:
(i)
(A)
Equity Interests of the Issuer, including Treasury Capital Stock (as defined
below), but excluding cash proceeds and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received
from the sale of:
(x)
Equity
Interests to members of management, directors or consultants of the Issuer, any
direct or indirect parent company of the Issuer and the Issuer's Subsidiaries
after the Issue Date to the extent such amounts have been applied to Restricted
Payments made in accordance with clause (4) of the next succeeding
paragraph; and
(y)
Designated
Preferred Stock; and
(B)
to the extent such net cash proceeds are actually contributed to the Issuer,
Equity Interests of the Issuer's direct or indirect parent companies (excluding
contributions of the proceeds from the sale of Designated Preferred Stock of
such companies or contributions to the extent such amounts have been applied to
Restricted Payments made in accordance with clause (4) of the next
succeeding paragraph); or
(ii)
debt
securities of the Issuer that have been converted into or exchanged for such
Equity Interests of the Issuer;
98
provided
,
however
, that this clause (b) shall not include the proceeds from
(V) Refunding Capital Stock (as defined below), (W) Equity Interests
of the Issuer or convertible debt securities of the Issuer sold to a Restricted
Subsidiary, as the case may be, (X) Disqualified Stock or debt securities
that have been converted into Disqualified Stock, (Y) Excluded
Contributions or (Z) transactions whose proceeds were used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to
clause (13)(a) of the second paragraph of "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock," solely to
the extent of such usage;
plus
(c)
100%
of the aggregate amount of cash and the fair market value, as determined in good
faith by the Issuer, of marketable securities or other property contributed to
the capital of the Issuer following the Issue Date (other than net cash proceeds
to the extent such net cash proceeds (i) have been used to incur
Indebtedness, Disqualified Stock or Preferred Stock pursuant to
clause (13)(a) of the second paragraph of "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock,"
(ii) are contributed by a Restricted Subsidiary or (iii) constitute
Excluded Contributions;
plus
(d)
to
the extent not already included in Consolidated Net Income, 100% of the
aggregate amount received in cash and the fair market value, as determined in
good faith by the Issuer, of marketable securities or other property received by
means of:
(i)
the
sale or other disposition (other than to the Issuer or a Restricted Subsidiary)
of Restricted Investments made by the Issuer or its Restricted Subsidiaries and
repurchases and redemptions of such Restricted Investments from the Issuer or
its Restricted Subsidiaries and repayments of loans or advances, and releases of
guarantees, which constitute Restricted Investments by the Issuer or its
Restricted Subsidiaries, in each case after the Issue Date; or
(ii)
the
sale (other than to the Issuer or a Restricted Subsidiary) of the stock of an
Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary (other
than in each case to the extent the Investment in such Unrestricted Subsidiary
was made by the Issuer or a Restricted Subsidiary pursuant to clause (7) of
the next succeeding paragraph or to the extent such Investment constituted a
Permitted Investment) or a dividend from an Unrestricted Subsidiary after the
Issue Date;
plus
(e)
in
the case of the redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary after the Issue Date, the fair market value of the Investment in such
Unrestricted Subsidiary, as determined by the Issuer in good faith (or if such
fair market value exceeds $75.0 million, in writing by an Independent
Financial Advisor), at the time of the redesignation of such Unrestricted
Subsidiary as a Restricted Subsidiary other than to the extent the Investment in
such Unrestricted Subsidiary was made by the Issuer or a Restricted Subsidiary
pursuant to clause (7) of the next succeeding paragraph or to the extent
such Investment constituted a Permitted Investment.
The foregoing
provisions will not prohibit:
(1)
the payment
of any dividend within 60 days after the date of declaration thereof, if at
the date of declaration such payment would have complied with the provisions of
the Senior Subordinated Indenture;
(2)
(a) the
redemption, repurchase, retirement or other acquisition of any Equity Interests
("
Treasury Capital Stock
") or Subordinated Indebtedness of the Issuer or
any Equity Interests of any direct or indirect parent company of the Issuer, in
exchange for, or out of the proceeds of the substantially concurrent sale (other
than to a Restricted Subsidiary) of, Equity Interests of the Issuer or any
direct or indirect parent company of the Issuer to the extent contributed to the
Issuer (in each case, other than any Disqualified Stock) ("
Refunding Capital
Stock
") and (b) if immediately prior to the retirement of Treasury
Capital Stock, the declaration and payment of dividends thereon was permitted
under clause (6) of this paragraph, the declaration and payment of
dividends on the Refunding Capital Stock (other than Refunding Capital Stock the
proceeds of which were used to redeem, repurchase, retire or otherwise acquire
any Equity Interests of any direct or indirect parent company of the Issuer) in
an aggregate amount per year no greater than the aggregate amount of dividends
per annum that were declarable and payable on such Treasury Capital Stock
immediately prior to such retirement;
99
(3)
the
redemption, repurchase or other acquisition or retirement of Subordinated
Indebtedness of the Issuer or a Guarantor made in exchange for, or out of the
proceeds of the substantially concurrent sale of, new Indebtedness of the Issuer
or a Guarantor, as the case may be, which is incurred in compliance with
"—Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock
and Preferred Stock" so long as:
(a)
the
principal amount (or accreted value) of such new Indebtedness does not exceed
the principal amount of (or accreted value, if applicable), plus any accrued and
unpaid interest on, the Subordinated Indebtedness being so redeemed,
repurchased, acquired or retired for value, plus the amount of any reasonable
premium (including reasonable tender premiums), defeasance costs and any
reasonable fees and expenses incurred in connection with the issuance of such
new Indebtedness;
(b)
such
new Indebtedness is subordinated to the Senior Subordinated Notes or the
applicable Guarantee at least to the same extent as such Subordinated
Indebtedness so purchased, exchanged, redeemed, repurchased, acquired or retired
for value;
(c)
such
new Indebtedness has a final scheduled maturity date equal to or later than the
final scheduled maturity date of the Subordinated Indebtedness being so
redeemed, repurchased, acquired or retired; and
(d)
such
new Indebtedness has a Weighted Average Life to Maturity equal to or greater
than the remaining Weighted Average Life to Maturity of the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired;
(4)
a Restricted
Payment to pay for the repurchase, retirement or other acquisition or retirement
for value of Equity Interests (other than Disqualified Stock) of the Issuer or
any of its direct or indirect parent companies held by any future, present or
former employee, director or consultant of the Issuer, any of its Subsidiaries
or any of its direct or indirect parent companies pursuant to any management
equity plan or stock option plan or any other management or employee benefit
plan or agreement, including any Equity Interests rolled over by management of
the Company or any of its direct or indirect parent companies in connection with
the Transactions;
provided
,
however
, that the aggregate Restricted
Payments made under this clause (4) do not exceed in any calendar year
$12.5 million (which shall increase to $25.0 million subsequent to the
consummation of an underwritten public Equity Offering by the Issuer or any
direct or indirect parent entity of the Issuer) (with unused amounts in any
calendar year being carried over to succeeding calendar years subject to a
maximum (without giving effect to the following proviso) of $50.0 million
in any calendar year (which shall increase to $100.0 million subsequent to
the consummation of an underwritten public Equity Offering by the Issuer or any
direct or indirect parent corporation of the Issuer));
provided further
that such amount in any calendar year may be increased by an amount not to
exceed:
(a)
the
cash proceeds from the sale of Equity Interests (other than Disqualified Stock)
of the Issuer and, to the extent contributed to the Issuer, Equity Interests of
any of the Issuer's direct or indirect parent companies, in each case to members
of management, directors or consultants of the Issuer, any of its Subsidiaries
or any of its direct or indirect parent companies that occurs after the Issue
Date to the extent the cash proceeds from the sale of such Equity Interests have
not otherwise been applied to the payment of Restricted Payments by virtue of
clause (3) of the preceding paragraph;
plus
(b)
the
cash proceeds of key man life insurance policies received by the Issuer or its
Restricted Subsidiaries after the Issue Date;
less
(c)
the
amount of any Restricted Payments previously made with the cash proceeds
described in clauses (a) and (b) of this clause (4);
and
provided
,
further
, that cancellation of Indebtedness owing to the Issuer or any
Restricted Subsidiary from members of management of the Issuer, any of the
Issuer's direct or indirect parent companies or any of the Issuer's Restricted
Subsidiaries in connection with a repurchase of Equity Interests of the Issuer
or any of its direct or
100
indirect
parent companies will not be deemed to constitute a Restricted Payment for
purposes of this covenant or any other provision of the Senior Subordinated
Indenture;
(5)
the
declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Issuer or any of its Restricted Subsidiaries or any
class or series of Preferred Stock of any Restricted Subsidiary issued in
accordance with the covenant described under "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock" to the
extent such dividends are included in the definition of "Fixed Charges";
(6)
(a)  the
declaration and payment of dividends to holders of any class or series of
Designated Preferred Stock (other than Disqualified Stock) issued by the Issuer
after the Issue Date;
(b)  the
declaration and payment of dividends to a direct or indirect parent company of
the Issuer, the proceeds of which will be used to fund the payment of dividends
to holders of any class or series of Designated Preferred Stock (other than
Disqualified Stock) of such parent company issued after the Issue Date;
provided
that the amount of dividends paid pursuant to this
clause (b) shall not exceed the aggregate amount of cash actually
contributed to the Issuer from the sale of such Designated Preferred Stock;
or
(c)  the
declaration and payment of dividends on Refunding Capital Stock that is
Preferred Stock in excess of the dividends declarable and payable thereon
pursuant to clause (2) of this paragraph;
provided
,
however
,
in the case of each of (a), (b) and (c) of this clause (6), that
for the most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date of issuance of
such Designated Preferred Stock or the declaration of such dividends on
Refunding Capital Stock that is Preferred Stock, after giving effect to such
issuance or declaration on a
pro forma
basis, the Issuer and its
Restricted Subsidiaries on a consolidated basis would have had a Fixed Charge
Coverage Ratio of at least 2.00 to 1.00;
(7)
Investments
in Unrestricted Subsidiaries having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause (7) that
are at the time outstanding, without giving effect to the sale of an
Unrestricted Subsidiary to the extent the proceeds of such sale do not consist
of cash or marketable securities, not to exceed $50.0 million at the time
of such Investment (with the fair market value of each Investment being measured
at the time made and without giving effect to subsequent changes in value);
(8)
repurchases
of Equity Interests deemed to occur upon exercise of stock options or warrants
if such Equity Interests represent a portion of the exercise price of such
options or warrants;
(9)
the
declaration and payment of dividends on the Issuer's common stock (or the
payment of dividends to any direct or indirect parent entity to fund a payment
of dividends on such entity's common stock), following consummation of the first
public offering of the Issuer's common stock or the common stock of any of its
direct or indirect parent companies after the Issue Date, of up to 6% per annum
of the net cash proceeds received by or contributed to the Issuer in or from any
such public offering, other than public offerings with respect to the Issuer's
common stock registered on Form S-8 and other than any public sale
constituting an Excluded Contribution;
(10)
Restricted
Payments that are made with Excluded Contributions;
(11)
other
Restricted Payments in an aggregate amount taken together with all other
Restricted Payments made pursuant to this clause (11) not to exceed
$100.0 million at the time made;
(12)
distributions
or payments of Receivables Fees;
(13)
any
Restricted Payment made as part of the Transactions and the fees and expenses
related thereto or used to fund amounts owed to Affiliates (including dividends
to any direct or indirect parent of the Issuer to permit payment by such parent
of such amount), in each case to the extent permitted by the covenant described
under "—Transactions with Affiliates";
101
(14)
the
repurchase, redemption or other acquisition or retirement for value of any
Subordinated Indebtedness in accordance with the provisions similar to those
described under the captions "Repurchase at the Option of Holders—Change of
Control" and "Repurchase at the Option of Holders—Asset Sales";
provided
that all Senior Subordinated Notes tendered by Holders in connection with a
Change of Control Offer or Asset Sale Offer, as applicable, have been
repurchased, redeemed or acquired for value;
(15)
the
declaration and payment of dividends by the Issuer to, or the making of loans
to, any direct or indirect parent in amounts required for any direct or indirect
parent companies to pay, in each case without duplication,
(a)
franchise
and excise taxes and other fees, taxes and expenses required to maintain their
corporate existence;
(b)
foreign,
federal, state and local income taxes, to the extent such income taxes are
attributable to the income of the Issuer and its Restricted Subsidiaries and, to
the extent of the amount actually received from its Unrestricted Subsidiaries,
in amounts required to pay such taxes to the extent attributable to the income
of such Unrestricted Subsidiaries;
provided
that in each case the amount
of such payments in any fiscal year does not exceed the amount that the Issuer
and its Restricted Subsidiaries would be required to pay in respect of foreign,
federal, state and local taxes for such fiscal year were the Issuer, its
Restricted Subsidiaries and its Unrestricted Subsidiaries (to the extent
described above) to pay such taxes separately from any such parent entity;
(c)
customary
salary, bonus and other benefits payable to officers and employees of any direct
or indirect parent company of the Issuer to the extent such salaries, bonuses
and other benefits are attributable to the ownership or operation of the Issuer
and its Restricted Subsidiaries;
(d)
general
corporate operating and overhead costs and expenses of any direct or indirect
parent company of the Issuer to the extent such costs and expenses are
attributable to the ownership or operation of the Issuer and its Restricted
Subsidiaries; and
(e)
fees
and expenses other than to Affiliates of the Issuer related to any unsuccessful
equity or debt offering of such parent entity;
provided
,
however
,
that at the time of, and after giving effect to, any Restricted Payment
permitted under clause (11), no Default shall have occurred and be
continuing or would occur as a consequence thereof.
As of the
Issue Date, all of the Issuer's Subsidiaries will be Restricted Subsidiaries.
The Issuer will not permit any Unrestricted Subsidiary to become a Restricted
Subsidiary except pursuant to the last sentence of the definition of
"Unrestricted Subsidiary." For purposes of designating any Restricted Subsidiary
as an Unrestricted Subsidiary, all outstanding Investments by the Issuer and its
Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so
designated will be deemed to be Restricted Payments in an amount determined as
set forth in the last sentence of the definition of "Investment." Such
designation will be permitted only if a Restricted Payment in such amount would
be permitted at such time, whether pursuant to the first paragraph of this
covenant or under clause (7), (10) or (11) of the second
paragraph of this covenant, or pursuant to the definition of "Permitted
Investments," and if such Subsidiary otherwise meets the definition of an
Unrestricted Subsidiary. Unrestricted Subsidiaries will not be subject to any of
the restrictive covenants set forth in the Senior Subordinated Indenture.
Notwithstanding
the foregoing provisions of this covenant, the Issuer will not, and will not
permit any of its Restricted Subsidiaries to, pay any cash dividend or make any
cash distribution on or in respect of the Issuer's Capital Stock or purchase for
cash or otherwise acquire for cash any Capital Stock of the Issuer or any direct
or indirect parent of the Issuer, for the purpose of paying any cash dividend or
making any cash distribution to, or acquiring Capital Stock of any direct or
indirect parent of the Issuer for cash from, the Investors, or Guarantee any
Indebtedness of any Affiliate of the Issuer for the purpose of paying such
dividend, making such distribution or so acquiring such Capital Stock to or from
the Investors, in each case by means of utilization of the cumulative Restricted
Payment credit provided by the first paragraph of this covenant, or the
exceptions provided by clauses (1),
102
(7) or
(11) of the second paragraph of this covenant or clauses (8) or
(13) of the definition of "Permitted Investments," unless at the time and
after giving effect to such payment, the Consolidated Leverage Ratio of the
Issuer would be equal to or less than 6.00:1.00.
Limitation
on Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock
The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, issue, assume, guarantee or otherwise become directly
or indirectly liable, contingently or otherwise (collectively, "
incur
"
and collectively, an "
incurrence
") with respect to any Indebtedness
(including Acquired Indebtedness), and the Issuer will not issue any shares of
Disqualified Stock and will not permit any Restricted Subsidiary to issue any
shares of Disqualified Stock or Preferred Stock;
provided
,
however
, that the Issuer may incur Indebtedness (including Acquired
Indebtedness) or issue shares of Disqualified Stock, and any of its Restricted
Subsidiaries may incur Indebtedness (including Acquired Indebtedness), issue
shares of Disqualified Stock and issue shares of Preferred Stock, if the Fixed
Charge Coverage Ratio on a consolidated basis for the Issuer and its Restricted
Subsidiaries' most recently ended four fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred or such Disqualified Stock or Preferred
Stock is issued would have been at least 2.00 to 1.00, determined on a
pro
forma
basis (including a
pro forma
application of the net proceeds
therefrom), as if the additional Indebtedness had been incurred, or the
Disqualified Stock or Preferred Stock had been issued, as the case may be, and
the application of proceeds therefrom had occurred at the beginning of such
four-quarter period;
provided, further,
that Restricted Subsidiaries that
are not Guarantors may not incur Indebtedness or Disqualified Stock or Preferred
Stock if, after giving
pro forma
effect to such incurrence or issuance
(including a
pro forma
application of the net proceeds therefrom), more
than an aggregate of $250.0 million of Indebtedness or Disqualified Stock
or Preferred Stock of Restricted Subsidiaries that are not Guarantors would be
outstanding pursuant to this paragraph and clauses (13)(b), (15) and
(20) below at such time.
The foregoing
limitations will not apply to:
(1)
the
incurrence of Indebtedness under (x) Credit Facilities (other than the ABL
Facility) by the Issuer or any of its Restricted Subsidiaries and the issuance
and creation of letters of credit and bankers' acceptances thereunder (with
letters of credit and bankers' acceptances being deemed to have a principal
amount equal to the face amount thereof), up to an aggregate principal amount of
$2,625.0 million outstanding at any one time and (y) the ABL Facility
by the Issuer or any of its Restricted Subsidiaries and the issuance and
creation of letters of credit and bankers' acceptances thereunder (with letters
of credit and bankers' acceptances being deemed to have a principal amount equal
to the face amount thereof), up to an aggregate principal amount equal to the
ABL Facility Cap;
(2)
the
incurrence by the Issuer and any Guarantor of Indebtedness represented by the
Senior Subordinated Notes issued on the Issue Date (including any PIK Notes and
any Guarantee) and the Senior Subordinated Exchange Notes and related guarantees
of the Senior Subordinated Exchange Notes to be issued in exchange for the
Senior Subordinated Notes and the Guarantees pursuant to the Registration Rights
Agreement (other than any Additional Senior Subordinated Notes and related
guarantees);
(3)
the
incurrence by the Issuer and any Guarantor of Indebtedness represented by the
Senior Notes and related guarantees, as well as any exchange notes and exchange
guarantees to be issued in exchange for the Senior Notes and related guarantees
pursuant a registration rights agreement;
(4)
Indebtedness
of the Issuer and its Restricted Subsidiaries in existence on the Issue Date
(other than Indebtedness described in clauses (1), (2) and (3) of this
paragraph);
(5)
Indebtedness
consisting of Capitalized Lease Obligations and Purchase Money Obligations in a
principal amount not to exceed $250.0 million (excluding the principal
amount of any Capitalized Lease Obligations or Purchase Money Obligations
relating to the purchase, lease or improvement of the Company's distribution
centers located in Fulton, Missouri, Indianola, Mississippi and Ardmore,
Oklahoma) in the aggregate at any one time outstanding together with all other
Indebtedness issued under this clause (5); so long as such Indebtedness
exists at the date of such purchase, lease or improvement, or is created within
270 days thereafter;
103
(6)
Indebtedness
incurred by the Issuer or any of its Restricted Subsidiaries constituting
reimbursement obligations with respect to letters of credit issued in the
ordinary course of business, including letters of credit in respect of workers'
compensation or employee health claims, or other Indebtedness with respect to
reimbursement-type obligations regarding workers' compensation, or employee
health claims;
provided
,
however
, that upon the drawing of such
letters of credit or the incurrence of such Indebtedness, such obligations are
reimbursed within 30 days following such drawing or incurrence;
(7)
Indebtedness
arising from agreements of the Issuer or its Restricted Subsidiaries providing
for indemnification, adjustment of purchase price or similar obligations, in
each case, incurred or assumed in connection with the disposition of any
business, assets or a Subsidiary, other than guarantees of Indebtedness incurred
by any Person acquiring all or any portion of such business, assets or a
Subsidiary for the purpose of financing such acquisition;
provided
,
however
, that such Indebtedness is not reflected on the balance sheet of
the Issuer, or any of its Restricted Subsidiaries (contingent obligations
referred to in a footnote to financial statements and not otherwise reflected on
the balance sheet will not be deemed to be reflected on such balance sheet for
purposes of this clause (7));
(8)
Indebtedness
of the Issuer to a Restricted Subsidiary;
provided
that any such
Indebtedness owing to a Restricted Subsidiary that is not a Guarantor is
expressly subordinated in right of payment to the Senior Subordinated Notes;
provided
,
further
, that any subsequent issuance or transfer of any
Capital Stock or any other event which results in any Restricted Subsidiary
ceasing to be a Restricted Subsidiary or any other subsequent transfer of any
such Indebtedness (except to the Issuer or another Restricted Subsidiary) shall
be deemed, in each case, to be an incurrence of such Indebtedness not permitted
by this clause (8);
(9)
Indebtedness
of a Restricted Subsidiary to the Issuer or another Restricted Subsidiary;
provided
that if a Guarantor issues such Indebtedness to a Restricted
Subsidiary that is not a Guarantor (other than to any Restricted Subsidiary
engaged in the insurance business in order to provide insurance to the Issuer
and its Subsidiaries), such Indebtedness is expressly subordinated in right of
payment to the Guarantee of the Senior Subordinated Notes of such Guarantor;
provided
,
further
, that any subsequent issuance or transfer of any
Capital Stock or any other event which results in any such Restricted Subsidiary
ceasing to be a Restricted Subsidiary or any other subsequent transfer of any
such Indebtedness (except to the Issuer or another Restricted Subsidiary) shall
be deemed, in each case, to be an incurrence of such Indebtedness not permitted
by this clause (9);
(10)
shares of
Preferred Stock of a Restricted Subsidiary issued to the Issuer or another
Restricted Subsidiary;
provided
that any subsequent issuance or transfer
of any Capital Stock or any other event which results in any such Restricted
Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent
transfer of any such shares of Preferred Stock (except to the Issuer or another
of its Restricted Subsidiaries) shall be deemed in each case to be an issuance
of such shares of Preferred Stock not permitted by this clause (10);
(11)
Hedging
Obligations (excluding Hedging Obligations entered into for speculative
purposes) for the purpose of limiting interest rate risk with respect to any
Indebtedness permitted to be incurred pursuant to "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock," or
exchange rate risk or commodity pricing risk;
(12)
obligations
in respect of performance, bid, appeal and surety bonds and completion
guarantees provided by the Issuer or any of its Restricted Subsidiaries in the
ordinary course of business;
(13)
(a)
Indebtedness or Disqualified Stock of the Issuer and Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or any Restricted Subsidiary equal to
100.0% of the net cash proceeds received by the Issuer since immediately after
the Issue Date from the issue or sale of Equity Interests of the Issuer or cash
contributed to the capital of the Issuer (in each case, other than Excluded
Contributions or proceeds of Disqualified Stock or sales of Equity Interests to
the Issuer or any of its Subsidiaries) as determined in accordance with clauses
(3)(b) and (3)(c) of the first paragraph of "—Limitation on Restricted Payments"
to the extent such net cash proceeds or cash have not been applied pursuant to
such clauses to make Restricted Payments or to make other Investments, payments
or exchanges pursuant to the second paragraph of "—Limitation on Restricted
Payments" or to make Permitted Investments (other than Permitted Investments
specified in clauses (1) and (3) of the definition thereof) and
(b) Indebtedness or Disqualified Stock of Issuer and Indebtedness,
Disqualified Stock or Preferred
104
Stock
of the Issuer or any Restricted Subsidiary not otherwise permitted hereunder in
an aggregate principal amount or liquidation preference, which when aggregated
with the principal amount and liquidation preference of all other Indebtedness,
Disqualified Stock and Preferred Stock then outstanding and incurred pursuant to
this clause (13)(b), does not at any one time outstanding exceed
$250.0 million;
provided
,
however
that on a
pro forma
basis
, together with any amounts incurred and outstanding by Restricted
Subsidiaries that are not Guarantors pursuant to the second proviso to the first
paragraph of this covenant and clauses (15) and (20), no more than
$250.0 million of Indebtedness, Disqualified Stock or Preferred Stock at
any one time outstanding and incurred pursuant to this clause (13)(b) shall
be incurred by Restricted Subsidiaries that are not Guarantors (it being
understood that any Indebtedness, Disqualified Stock or Preferred Stock incurred
pursuant to this clause (13)(b) shall cease to be deemed incurred or
outstanding for purposes of this clause (13)(b) but shall be deemed
incurred for the purposes of the first paragraph of this covenant from and after
the first date on which the Issuer or such Restricted Subsidiary could have
incurred such Indebtedness, Disqualified Stock or Preferred Stock under the
first paragraph of this covenant without reliance on this
clause (13)(b));
(14)
the
incurrence or issuance by the Issuer or any Restricted Subsidiary of
Indebtedness, Disqualified Stock or Preferred Stock which serves to refund or
refinance any Indebtedness, Disqualified Stock or Preferred Stock of the Issuer
or any Restricted Subsidiary incurred as permitted under the first paragraph of
this covenant and clauses (2), (3), (4), (5) and (13)(a) above, this
clause (14) and clause (15) below or any Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or any Restricted Subsidiary issued to so
refund or refinance such Indebtedness, Disqualified Stock or Preferred Stock of
the Issuer or any Restricted Subsidiary including additional Indebtedness,
Disqualified Stock or Preferred Stock incurred to pay premiums (including
reasonable tender premiums), defeasance costs and fees in connection therewith
(the "
Refinancing Indebtedness
") prior to its respective maturity;
provided
,
however
, that such Refinancing Indebtedness:
(a)
has
a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is
incurred which is not less than the remaining Weighted Average Life to Maturity
of the Indebtedness, Disqualified Stock or Preferred Stock being refunded or
refinanced,
(b)
to
the extent such Refinancing Indebtedness refinances (i) Indebtedness
subordinated or
pari passu
to the Senior Subordinated Notes or any
Guarantee thereof, such Refinancing Indebtedness is subordinated or
pari
passu
to the Senior Subordinated Notes or the Guarantee at least to the same
extent as the Indebtedness being refinanced or refunded or
(ii) Disqualified Stock or Preferred Stock, such Refinancing Indebtedness
must be Disqualified Stock or Preferred Stock, respectively, and
(c)
shall
not include Indebtedness, Disqualified Stock or Preferred Stock of a Subsidiary
of the Issuer that is not a Guarantor that refinances Indebtedness, Disqualified
Stock or Preferred Stock of the Issuer or a Guarantor;
and
provided further
that
subclause (a) of this clause (14) will not apply to any refunding or
refinancing of any Indebtedness outstanding under a Credit Facility;
(15)
Indebtedness,
Disqualified Stock or Preferred Stock of (x) the Issuer or a Restricted
Subsidiary incurred to finance an acquisition of any Person or assets or
(y) Persons that are acquired by the Issuer or any Restricted Subsidiary or
merged into the Issuer or a Restricted Subsidiary in accordance with the terms
of the Senior Subordinated Indenture;
provided
that after giving effect
to such acquisition or merger, either:
(a)
the
Issuer would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in the first sentence
of this covenant, or
(b)
the
Fixed Charge Coverage Ratio of the Issuer and the Restricted Subsidiaries is
greater than immediately prior to such acquisition or merger;
provided
,
however
that on a
pro forma
basis, together with amounts incurred
and outstanding pursuant to the second proviso to the first paragraph of this
covenant and clauses (13)(b) and (20), no more than $250.0 million of
Indebtedness, Disqualified Stock or Preferred Stock at any one time outstanding
and
105
incurred
by Restricted Subsidiaries that are not Guarantors pursuant to this
clause (15) shall be incurred and outstanding;
(16)
Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument drawn against insufficient funds in the ordinary
course of business;
provided
that such Indebtedness is extinguished
within two Business Days of its incurrence;
(17)
Indebtedness
of the Issuer or any of its Restricted Subsidiaries supported by a letter of
credit issued pursuant to any Credit Facilities, in a principal amount not in
excess of the stated amount of such letter of credit;
(18)
(a) any
guarantee by the Issuer or a Restricted Subsidiary of Indebtedness or other
Obligations of any Restricted Subsidiary, so long as the incurrence of such
Indebtedness incurred by such Restricted Subsidiary is permitted under the terms
of the Senior Subordinated Indenture, or (b) any guarantee by a Restricted
Subsidiary of Indebtedness of the Issuer permitted to be incurred under the
terms of the Senior Subordinated Indenture;
provided
that such guarantee
is incurred in accordance with the covenant described below under "—Limitation
on Guarantees of Indebtedness by Restricted Subsidiaries";
(19)
Indebtedness
of Foreign Subsidiaries of the Issuer in an amount not to exceed at any one time
outstanding and together with any other Indebtedness incurred under this
clause (19) 5.0% of the Total Assets of the Foreign Subsidiaries (it being
understood that any Indebtedness incurred pursuant to this clause (19)
shall cease to be deemed incurred or outstanding for purposes of this
clause (19) but shall be deemed incurred for the purposes of the first
paragraph of this covenant from and after the first date on which the Issuer or
such Restricted Subsidiaries could have incurred such Indebtedness under the
first paragraph of this covenant without reliance on this clause (19));
(20)
Indebtedness,
Disqualified Stock or Preferred Stock of a Restricted Subsidiary incurred to
finance or assumed in connection with an acquisition in a principal amount not
to exceed $100.0 million in the aggregate at any one time outstanding
together with all other Indebtedness, Disqualified Stock and/or Preferred Stock
issued under this clause (20) (it being understood that any Indebtedness,
Disqualified Stock or Preferred Stock incurred pursuant to this clause (20)
shall cease to be deemed incurred or outstanding for purposes of this
clause (20) but shall be deemed incurred for the purposes of the first
paragraph of this covenant from and after the first date on which such
Restricted Subsidiary could have incurred such Indebtedness, Disqualified Stock
or Preferred Stock under the first paragraph of this covenant without reliance
on this clause (20));
provided, however
, that, on a
pro forma
basis, together with amounts incurred and outstanding by Restricted Subsidiaries
that are not Guarantors pursuant to the second proviso to the first paragraph of
this covenant and clauses (13)(b) and (15), no more than $250.0 million of
Indebtedness would be incurred and outstanding by Restricted Subsidiaries that
are not Guarantors;
(21)
Indebtedness
of the Issuer or any of its Restricted Subsidiaries consisting of (i) the
financing of insurance premiums or (ii) take-or-pay obligations contained
in supply arrangements, in each case, incurred in the ordinary course of
business; and
(22)
Indebtedness
consisting of Indebtedness issued by the Issuer or any of its Restricted
Subsidiaries to current or former officers, directors and employees thereof,
their respective estates, spouses or former spouses, in each case to finance the
purchase or redemption of Equity Interests of the Issuer or any direct or
indirect parent company of the Issuer to the extent described in clause (4)
of the second paragraph under the caption "—Limitation on Restricted
Payments."
For purposes
of determining compliance with this covenant:
(1)
in the event
that an item of Indebtedness, Disqualified Stock or Preferred Stock (or any
portion thereof) meets the criteria of more than one of the categories of
permitted Indebtedness, Disqualified Stock or Preferred Stock described in
clauses (1) through (22) above or is entitled to be incurred pursuant
to the first paragraph of this covenant, the Issuer, in its sole discretion,
will classify or reclassify such item of Indebtedness,
106
Disqualified
Stock or Preferred Stock (or any portion thereof) and will only be required to
include the amount and type of such Indebtedness, Disqualified Stock or
Preferred Stock in one of the above clauses;
provided
that all
Indebtedness outstanding under the Credit Facilities on the Issue Date will be
treated as incurred on the Issue Date under clause (1) of the preceding
paragraph; and
(2)
at the time
of incurrence, the Issuer will be entitled to divide and classify an item of
Indebtedness in more than one of the types of Indebtedness described in the
first and second paragraphs above.
Accrual of
interest, the accretion of accreted value and the payment of interest in the
form of additional Indebtedness, Disqualified Stock or Preferred Stock will not
be deemed to be an incurrence of Indebtedness, Disqualified Stock or Preferred
Stock for purposes of this covenant.
For purposes
of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the
relevant currency exchange rate in effect on the date such Indebtedness was
incurred, in the case of term debt, or first committed, in the case of revolving
credit debt;
provided
that if such Indebtedness is incurred to refinance
other Indebtedness denominated in a foreign currency, and such refinancing would
cause the applicable U.S. dollar-denominated restriction to be exceeded if
calculated at the relevant currency exchange rate in effect on the date of such
refinancing, such U.S. dollar-denominated restriction shall be deemed not to
have been exceeded so long as the principal amount of such refinancing
Indebtedness does not exceed the principal amount of such Indebtedness being
refinanced.
The principal
amount of any Indebtedness incurred to refinance other Indebtedness, if incurred
in a different currency from the Indebtedness being refinanced, shall be
calculated based on the currency exchange rate applicable to the currencies in
which such respective Indebtedness is denominated that is in effect on the date
of such refinancing.
Limitation
on Layering
The Issuer
will not, and will not permit any Guarantor to, directly or indirectly, incur
any Indebtedness (including Acquired Indebtedness) that is subordinate in right
of payment to any Senior Indebtedness of the Issuer or such Guarantor, as the
case may be, unless such Indebtedness is either:
(1)
equal in
right of payment with the Senior Subordinated Notes or such Guarantor's
Guarantee of the Senior Subordinated Notes, as the case may be; or
(2)
expressly
subordinated in right of payment to the Senior Subordinated Notes or such
Guarantor's Guarantee of the Senior Subordinated Notes, as the case may be,
provided
that this covenant shall not apply to Indebtedness incurred
under clause (1) of the second paragraph under "—Limitation on Incurrence
of Indebtedness and Issuance of Disqualified and Preferred Stock."
The Senior
Subordinated Indenture will not treat (1) unsecured Indebtedness as
subordinated or junior to Secured Indebtedness merely because it is unsecured or
(2) Senior Indebtedness as subordinated or junior to any other Senior
Indebtedness merely because it has a junior priority with respect to the same
collateral.
Liens
The Issuer
will not, and will not permit any Guarantor to, directly or indirectly, create,
incur, assume or suffer to exist any Lien (except Permitted Liens) that secures
obligations under any Senior Subordinated Indebtedness or Subordinated
Indebtedness or any related Guarantee, on any asset or property of the Issuer or
any Guarantor now owned or hereafter acquired, or any income or profits
therefrom, or assign or convey any right to receive income therefrom,
unless:
107
(1)
in the case
of Liens securing Subordinated Indebtedness, the Senior Subordinated Notes and
related Guarantees are secured by a Lien on such property, assets or proceeds
that is senior in priority to such Liens; or
(2)
in all other
cases, the Senior Subordinated Notes or the Guarantees are equally and ratably
secured or are secured by a Lien on such property, assets or proceeds that is
senior in priority to such Liens.
Any Lien
which is granted to secure the Senior Subordinated Notes under this covenant
shall be discharged at the same time as the discharge of the Lien (other than
through the exercise of remedies with respect thereto) that gave rise to the
obligation to so secure the Senior Subordinated Notes.
Merger,
Consolidation or Sale of All or Substantially All Assets
The Issuer
may not consolidate or merge with or into or wind up into (whether or not the
Issuer is the surviving corporation), or sell, assign, transfer, lease, convey
or otherwise dispose of all or substantially all of its properties or assets, in
one or more related transactions, to any Person unless:
(1)
the Issuer is
the surviving corporation or the Person formed by or surviving any such
consolidation or merger (if other than the Issuer) or to which such sale,
assignment, transfer, lease, conveyance or other disposition will have been made
is a corporation organized or existing under the laws of the jurisdiction of
organization of the Issuer or the laws of the United States, any state thereof,
the District of Columbia, or any territory thereof (such Person, as the case may
be, being herein called the "
Successor Company
");
(2)
the Successor
Company, if other than the Issuer, expressly assumes all the obligations of the
Issuer under the Senior Subordinated Notes and the Senior Subordinated Indenture
pursuant to supplemental indentures or other documents or instruments in form
reasonably satisfactory to the Trustee;
(3)
immediately
after such transaction, no Default exists;
(4)
immediately
after giving
pro forma
effect to such transaction and any related
financing transactions, as if such transactions had occurred at the beginning of
the applicable four-quarter period,
(a)
the
Successor Company would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the
first sentence of the covenant described under "—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock," or
(b)
the
Fixed Charge Coverage Ratio for the Successor Company, the Issuer and its
Restricted Subsidiaries would be greater than such ratio for the Issuer and its
Restricted Subsidiaries immediately prior to such transaction;
(5)
each
Guarantor, unless it is the other party to the transactions described above, in
which case clause (b) of the second succeeding paragraph shall apply, shall
have by supplemental indenture confirmed that its Guarantee shall apply to such
Person's obligations under the Senior Subordinated Indenture, the Senior
Subordinated Notes and the Registration Rights Agreement; and
(6)
the Issuer
shall have delivered to the Trustee an Officer's Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such
supplemental indentures, if any, comply with the Senior Subordinated
Indenture.
The Successor
Company will succeed to, and be substituted for the Issuer, as the case may be,
under the Senior Subordinated Indenture, the Guarantees and the Senior
Subordinated Notes, as applicable. Notwithstanding the foregoing clauses
(3) and (4),
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(1)
any
Restricted Subsidiary may consolidate with or merge into or transfer all or part
of its properties and assets to the Issuer, and
(2)
the Issuer
may merge with an Affiliate of the Issuer, as the case may be, solely for the
purpose of reincorporating the Issuer in a State of the United States or any
state thereof, the District of Columbia or any territory thereof so long as the
amount of Indebtedness of the Issuer and its Restricted Subsidiaries is not
increased thereby.
Subject to
certain limitations described in the Senior Subordinated Indenture governing
release of a Guarantee upon the sale, disposition or transfer of a Guarantor, no
Guarantor will, and the Issuer will not permit any Guarantor to, consolidate or
merge with or into or wind up into (whether or not the Issuer or Guarantor is
the surviving corporation), or sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of its properties or assets, in
one or more related transactions, to any Person unless:
(1)
(a) such
Guarantor is the surviving corporation or the Person formed by or surviving any
such consolidation or merger (if other than such Guarantor) or to which such
sale, assignment, transfer, lease, conveyance or other disposition will have
been made is a corporation, partnership, limited partnership, limited liability
corporation or trust organized or existing under the laws of the jurisdiction of
organization of such Guarantor, as the case may be, or the laws of the United
States, any state thereof, the District of Columbia, or any territory thereof
(such Guarantor or such Person, as the case may be, being herein called the
"
Successor Person
");
(b)
the
Successor Person, if other than such Guarantor, expressly assumes all the
obligations of such Guarantor under the Senior Subordinated Indenture and such
Guarantor's related Guarantee pursuant to supplemental indentures or other
documents or instruments in form reasonably satisfactory to the Trustee;
(c)
immediately
after such transaction, no Default exists; and
(d)
the
Issuer shall have delivered to the Trustee an Officer's Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and
such supplemental indentures, if any, comply with the Senior Subordinated
Indenture; or
(2)
the
transaction is made in compliance with the covenant described under "Repurchase
at the Option of Holders—Asset Sales."
Subject to
certain limitations described in the Senior Subordinated Indenture, the
Successor Person will succeed to, and be substituted for, such Guarantor under
the Senior Subordinated Indenture and such Guarantor's Guarantee.
Notwithstanding the foregoing, any Guarantor may (i) merge into or transfer
all or part of its properties and assets to another Guarantor or the Issuer,
(ii) merge with an Affiliate of the Issuer solely for the purpose of
reincorporating the Guarantor in the United States, any state thereof, the
District of Columbia or any territory thereof or (iii) convert into a
corporation, partnership, limited partnership, limited liability corporation or
trust organized or existing under the laws of the jurisdiction of organization
of such Guarantor.
Transactions
with Affiliates
The Issuer
will not, and will not permit any of its Restricted Subsidiaries to, make any
payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate of the Issuer
(each of the foregoing, an "
Affiliate Transaction
") involving aggregate
payments or consideration in excess of $15.0 million, unless:
(1)
such
Affiliate Transaction is on terms that are not materially less favorable to the
Issuer or its relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Issuer or such Restricted Subsidiary
with an unrelated Person on an arm's-length basis; and
109
(2)
the Issuer
delivers to the Trustee with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate payments or consideration in
excess of $25.0 million, a resolution adopted by the majority of the board
of directors of the Issuer approving such Affiliate Transaction and set forth in
an Officer's Certificate certifying that such Affiliate Transaction complies
with clause (1) above.
The foregoing
provisions will not apply to the following:
(1)
transactions
between or among the Issuer or any of its Restricted Subsidiaries;
(2)
Restricted
Payments permitted by the provisions of the Senior Subordinated Indenture
described above under the covenant "—Limitation on Restricted Payments" and the
definition of "Permitted Investments";
(3)
the payment
of management, consulting, monitoring and advisory fees and related expenses to
the Investors pursuant to the Sponsor Management Agreement (plus any unpaid
management, consulting, monitoring and advisory fees and related expenses
accrued in any prior year) and the termination fees pursuant to the Sponsor
Management Agreement, in each case as in effect on the Issue Date, or any
amendment thereto (so long as any such amendment is not disadvantageous in the
good faith judgment of the board of directors of the Issuer to the Holders when
taken as a whole as compared to the Sponsor Management Agreement in effect on
the Issue Date);
(4)
the payment
of reasonable and customary fees paid to, and indemnities provided for the
benefit of, officers, directors, employees or consultants of Issuer, any of its
direct or indirect parent companies or any of its Restricted Subsidiaries;
(5)
transactions
in which the Issuer or any of its Restricted Subsidiaries, as the case may be,
delivers to the Trustee a letter from an Independent Financial Advisor stating
that such transaction is fair to the Issuer or such Restricted Subsidiary from a
financial point of view or stating that the terms are not materially less
favorable to the Issuer or its relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Issuer or such
Restricted Subsidiary with an unrelated Person on an arm's-length basis;
(6)
any agreement
as in effect as of the Issue Date, or any amendment thereto (so long as any such
amendment is not disadvantageous to the Holders when taken as a whole as
compared to the applicable agreement as in effect on the Issue Date in the
reasonable determination of the Issuer);
(7)
the existence
of, or the performance by the Issuer or any of its Restricted Subsidiaries of
its obligations under the terms of, any stockholders agreement (including any
registration rights agreement or purchase agreement related thereto) to which it
is a party as of the Issue Date and any similar agreements which it may enter
into thereafter;
provided
,
however
, that the existence of, or the
performance by the Issuer or any of its Restricted Subsidiaries of obligations
under any future amendment to any such existing agreement or under any similar
agreement entered into after the Issue Date shall only be permitted by this
clause (7) to the extent that the terms of any such amendment or new
agreement are not otherwise disadvantageous to the Holders when taken as a whole
in the reasonable determination of the Issuer;
(8)
the
Transactions and the payment of all fees and expenses related to the
Transactions, in each case as disclosed in the offering documentation relating
to the outstanding notes;
(9)
transactions
with customers, clients, suppliers, or purchasers or sellers of goods or
services, in each case in the ordinary course of business and otherwise in
compliance with the terms of the Senior Subordinated Indenture which are fair to
the Issuer and its Restricted Subsidiaries, in the reasonable determination of
the board of directors of the Issuer or the senior management thereof, or are on
terms at least as favorable as might reasonably have been obtained at such time
from an unaffiliated party;
(10)
the issuance
of Equity Interests (other than Disqualified Stock) of the Issuer to any
Permitted Holder or to any director, officer, employee or consultant;
110
(11)
sales of
accounts receivable, or participations therein, in connection with the ABL
Facility and any Receivables Facility;
(12)
payments by
the Issuer or any of its Restricted Subsidiaries to any of the Investors made
for any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including, without limitation,
in connection with acquisitions or divestitures, which payments are approved by
a majority of the board of directors of the Issuer in good faith;
(13)
payments or
loans (or cancellation of loans) to employees or consultants of the Issuer, any
of its direct or indirect parent companies or any of its Restricted Subsidiaries
and employment agreements, stock option plans and other similar arrangements
with such employees or consultants which, in each case, are approved by the
Issuer in good faith;
(14)
investments
by the Investors in securities of the Issuer or any of its Restricted
Subsidiaries so long as (i) the investment is being offered generally to
other investors on the same or more favorable terms and (ii) the investment
constitutes less than 5.0% of the proposed or outstanding issue amount of such
class of securities;
(15)
payments to
or from, and transactions with, any joint ventures in the ordinary course of
business; and
(16)
payments by
the Issuer (and any direct or indirect parent thereof) and its Subsidiaries
pursuant to tax sharing agreements among the Issuer (and any such parent) and
its Subsidiaries on customary terms to the extent attributable to the ownership
or operation of the Issuer and its Subsidiaries;
provided
that in each
case the amount of such payments in any fiscal year does not exceed the amount
that the Issuer, its Restricted Subsidiaries and its Unrestricted Subsidiaries
(to the extent of amounts received from Unrestricted Subsidiaries) would be
required to pay in respect of foreign, federal, state and local taxes for such
fiscal year were the Issuer and its Restricted Subsidiaries (to the extent
described above) to pay such taxes separately from any such parent entity.
Dividend
and Other Payment Restrictions Affecting Restricted Subsidiaries
The Issuer
will not, and will not permit any of its Restricted Subsidiaries that are not
Guarantors to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any consensual encumbrance or consensual restriction
on the ability of any such Restricted Subsidiary to:
(1)
(a)
pay
dividends or make any other distributions to the Issuer or any of its Restricted
Subsidiaries on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits, or
(b)
pay
any Indebtedness owed to the Issuer or any of its Restricted Subsidiaries;
(2)
make loans or
advances to the Issuer or any of its Restricted Subsidiaries; or
(3)
sell, lease
or transfer any of its properties or assets to the Issuer or any of its
Restricted Subsidiaries,
except (in each case) for such
encumbrances or restrictions existing under or by reason of:
(a)
contractual
encumbrances or restrictions in effect on the Issue Date, including pursuant to
the Senior Credit Facilities and the related documentation;
(b)
the Senior
Indenture, the Senior Notes, the Senior Subordinated Indenture and the Senior
Subordinated Notes;
(c)
purchase
money obligations for property acquired in the ordinary course of business that
impose restrictions of the nature discussed in clause (3) above on the
property so acquired;
111
(d)
applicable
law or any applicable rule, regulation or order;
(e)
any agreement
or other instrument of a Person acquired by the Issuer or any Restricted
Subsidiary in existence at the time of such acquisition (but not created in
connection therewith or in contemplation thereof), which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any
Person, other than the Person and its Subsidiaries, or the property or assets of
the Person and its Subsidiaries, so acquired;
(f)
contracts for
the sale of assets, including customary restrictions with respect to a
Subsidiary of the Issuer pursuant to an agreement that has been entered into for
the sale or disposition of all or substantially all of the Capital Stock or
assets of such Subsidiary;
(g)
Secured
Indebtedness that limits the right of the debtor to dispose of the assets
securing such Indebtedness that is otherwise permitted to be incurred pursuant
to the covenants described under "—Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock" and "—Liens";
(h)
restrictions
on cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business;
(i)
other
Indebtedness, Disqualified Stock or Preferred Stock of Foreign Subsidiaries
permitted to be incurred subsequent to the Issue Date pursuant to the provisions
of the covenant described under "—Limitation on Incurrence of Indebtedness and
Issuance of Disqualified Stock and Preferred Stock";
(j)
customary
provisions in joint venture agreements and other agreements or arrangements
relating solely to such joint venture;
(k)
customary
provisions contained in leases or licenses of intellectual property and other
agreements, in each case entered into in the ordinary course of business;
(l)
any
encumbrances or restrictions of the type referred to in clauses (1),
(2) and (3) above imposed by any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings of the contracts, instruments or obligations referred to in clauses
(a) through (k) above;
provided
that such amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are, in the good faith judgment of the Issuer, no
more restrictive with respect to such encumbrance and other restrictions taken
as a whole than those prior to such amendment, modification, restatement,
renewal, increase, supplement, refunding, replacement or refinancing; and
(m)
restrictions
created in connection with any Receivables Facility that, in the good faith
determination of the Issuer, are necessary or advisable to effect the
transactions contemplated under such Receivables Facility.
Limitation
on Guarantees of Indebtedness by Restricted Subsidiaries
The Issuer
will not permit any of its Wholly-Owned Subsidiaries that are Restricted
Subsidiaries (and non-Wholly-Owned Subsidiaries if such non-Wholly-Owned
Subsidiaries guarantee other capital markets debt securities of the Issuer or
any Guarantor), other than a Guarantor, a Foreign Subsidiary or a Receivables
Subsidiary, to guarantee the payment of any Indebtedness of the Issuer or any
other Guarantor unless:
(1)
such
Restricted Subsidiary within 30 days executes and delivers a supplemental
indenture to the Senior Subordinated Indenture providing for a Guarantee by such
Restricted Subsidiary, except that with respect to a guarantee of Indebtedness
of the Issuer or any Guarantor:
(a)
if
the Senior Subordinated Notes or such Guarantor's Guarantee are subordinated in
right of payment to such Indebtedness, the Guarantee under the supplemental
indenture shall be subordinated to such Restricted Subsidiary's guarantee with
respect to such Indebtedness substantially to the same extent as the Senior
Subordinated Notes are subordinated to such Indebtedness; and
112
(b)
if
such Indebtedness is by its express terms subordinated in right of payment to
the Senior Subordinated Notes or such Guarantor's Guarantee, any such guarantee
by such Restricted Subsidiary with respect to such Indebtedness shall be
subordinated in right of payment to such Guarantee substantially to the same
extent as such Indebtedness is subordinated to the Senior Subordinated Notes;
and
(2)
such
Restricted Subsidiary waives, and will not in any manner whatsoever claim or
take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Issuer or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its
Guarantee;
provided
that this
covenant shall not be applicable to (i) any guarantee of any Restricted
Subsidiary that existed at the time such Person became a Restricted Subsidiary
and was not incurred in connection with, or in contemplation of, such Person
becoming a Restricted Subsidiary and (ii) guarantees of any Receivables
Facility by any Receivables Subsidiary.
Reports
and Other Information
Notwithstanding
that the Issuer may not be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act or otherwise report on an annual
and quarterly basis on forms provided for such annual and quarterly reporting
pursuant to rules and regulations promulgated by the SEC, the Senior
Subordinated Indenture will require the Issuer to file with the SEC (and make
available to the Trustee and Holders (without exhibits), without cost to any
Holder, within 15 days after it files with the SEC) from and after the
Issue Date,
(1)
within
90 days (or any other time period then in effect under the rules and
regulations of the Exchange Act with respect to the filing of a Form 10-K
by a non-accelerated filer) after the end of each fiscal year, annual reports on
Form 10-K, or any successor or comparable form, containing the information
required to be contained therein, or required in such successor or comparable
form;
(2)
within
45 days after the end of each of the first three fiscal quarters of each
fiscal year, reports on Form 10-Q containing all information that would be
required to be contained in Form 10-Q, or any successor or comparable
form;
(3)
promptly from
time to time after the occurrence of an event required to be therein reported,
such other reports on Form 8-K, or any successor or comparable form;
and
(4)
any other
information, documents and other reports which the Issuer would be required to
file with the SEC if it were subject to Section 13 or 15(d) of the Exchange
Act;
in each case in a manner that
complies in all material respects with the requirements specified in such form;
provided
that the Issuer shall not be so obligated to file such reports
with the SEC if the SEC does not permit such filing, in which event the Issuer
will make available such information to prospective purchasers of Senior
Subordinated Notes, in addition to providing such information to the Trustee and
the Holders, in each case within 15 days after the time the Issuer would be
required to file such information with the SEC if it were subject to
Section 13 or 15(d) of the Exchange Act. In addition, to the extent not
satisfied by the foregoing, the Issuer will agree that, for so long as any
Senior Subordinated Notes are outstanding, it will furnish to Holders and to
securities analysts and prospective investors, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.
In the event
that any direct or indirect parent company of the Issuer becomes a Guarantor of
the Senior Subordinated Notes, the Senior Subordinated Indenture will permit the
Issuer to satisfy its obligations in this covenant with respect to financial
information relating to the Issuer by furnishing financial information relating
to such parent;
provided
that the same is accompanied by consolidating
information that explains in reasonable detail the differences between the
information relating to such parent, on the one hand, and the information
relating to the Issuer and its Restricted Subsidiaries on a standalone basis, on
the other hand.
113
Notwithstanding
the foregoing, such requirements shall be deemed satisfied prior to the
commencement of the exchange offer or the effectiveness of the shelf
registration statement described in the Registration Rights Agreement
(1) by the filing with the SEC of the exchange offer registration statement
or shelf registration statement (or any other similar registration statement),
and any amendments thereto, with such financial information that satisfies
Regulation S-X, subject to exceptions consistent with the presentation of
financial information in the offering documentation relating to the outstanding
notes, to the extent filed within the times specified above, or (2) by
posting reports that would be required to be filed substantially in the form
required by the SEC on the Issuer's website (or that of any of its parent
companies) or providing such reports to the Trustee within 15 days after
the time the Issuer would be required to file such information with the SEC if
it were subject to Section 13 or 15(d) of the Exchange Act, the financial
information (including a "Management's Discussion and Analysis of Financial
Condition and Results of Operations" section) that would be required to be
included in such reports, subject to exceptions consistent with the presentation
of financial information in the offering documentation relating to the
outstanding notes, to the extent filed within the times specified above.
Notwithstanding anything herein to the contrary, the Issuer will not be deemed
to have failed to comply with any of its agreements set forth under this
covenant for purposes of clause (3) under "Events of Default and Remedies"
until 120 days after the date any report is required to be filed with the
SEC (or posted on the Issuer's website or provided to the Trustee) pursuant to
this covenant.
Events of Default and
Remedies
The Senior
Subordinated Indenture provides that each of the following is an "
Event of
Default
":
(1)
default in
payment when due and payable, upon redemption, acceleration or otherwise, of
principal of, or premium, if any, on the Senior Subordinated Notes, whether or
not such payment is prohibited by the subordination provisions of the Senior
Subordinated Indenture;
(2)
default for
30 days or more in the payment when due of interest or Special Interest on
or with respect to the Senior Notes, whether or not such payment is prohibited
by the subordination provisions of the Senior Subordinated Indenture;
(3)
failure by
the Issuer or any Guarantor for 60 days after receipt of written notice
given by the Trustee or the Holders of not less 30% in principal amount of the
Senior Subordinated Notes then outstanding under the Senior Subordinated
Indenture to comply with any of its obligations, covenants or agreements (other
than a default referred to in clauses (1) and (2) above) contained in
the Senior Subordinated Indenture or the Senior Subordinated Notes;
(4)
default under
any mortgage, indenture or instrument under which there is issued or by which
there is secured or evidenced any Indebtedness for money borrowed by the Issuer
or any of its Restricted Subsidiaries or the payment of which is guaranteed by
the Issuer or any of its Restricted Subsidiaries, other than Indebtedness owed
to the Issuer or a Restricted Subsidiary, whether such Indebtedness or guarantee
now exists or is created after the issuance of the Senior Subordinated Notes, if
both:
(a)
such
default either results from the failure to pay any principal of such
Indebtedness at its stated final maturity (after giving effect to any applicable
grace periods) or relates to an obligation other than the obligation to pay
principal of any such Indebtedness at its stated final maturity and results in
the holder or holders of such Indebtedness causing such Indebtedness to become
due prior to its stated maturity; and
(b)
the
principal amount of such Indebtedness, together with the principal amount of any
other such Indebtedness in default for failure to pay principal at stated final
maturity (after giving effect to any applicable grace periods), or the maturity
of which has been so accelerated, aggregate $50.0 million or more at any
one time outstanding;
(5)
failure by
the Issuer or any Significant Subsidiary (or group of Subsidiaries that together
would constitute a Significant Subsidiary) to pay final judgments aggregating in
excess of $50.0 million, which final
114
judgments
remain unpaid, undischarged and unstayed for a period of more than 60 days
after such judgment becomes final, and in the event such judgment is covered by
insurance, an enforcement proceeding has been commenced by any creditor upon
such judgment or decree which is not promptly stayed;
(6)
certain
events of bankruptcy or insolvency with respect to the Issuer or any Significant
Subsidiary (or group of Subsidiaries that together would constitute a
Significant Subsidiary); or
(7)
the Guarantee
of any Significant Subsidiary (or group of Subsidiaries that together would
constitute a Significant Subsidiary) shall for any reason cease to be in full
force and effect or be declared null and void or any responsible officer (or the
responsible officers of any group of Subsidiaries that together would constitute
a Significant Subsidiary) of any Guarantor that is a Significant Subsidiary, as
the case may be, denies that it has any further liability under its Guarantee or
gives notice to such effect, other than by reason of the termination of the
Senior Subordinated Indenture or the release of any such Guarantee in accordance
with the Senior Subordinated Indenture.
If any Event
of Default (other than of a type specified in clause (6) above) occurs and
is continuing under the Senior Subordinated Indenture, the Trustee or the
Holders of at least 30% in principal amount of the Senior Subordinated Notes
then outstanding under the Senior Subordinated Indenture may declare the
principal, premium, if any, interest and any other monetary obligations on all
the Senior Subordinated Notes then outstanding under the Senior Subordinated
Indenture to be due and payable immediately.
Upon the
effectiveness of such declaration, such principal premium, if any, and interest
will be due and payable immediately. Notwithstanding the foregoing, in the case
of an Event of Default arising under clause (6) of the first paragraph of
this section, all outstanding Senior Subordinated Notes will become due and
payable without further action or notice. The Senior Subordinated Indenture
provides that the Trustee may withhold from the Holders notice of any continuing
Default, except a Default relating to the payment of principal, premium, if any,
or interest, if it determines that withholding notice is in their interest. In
addition, the Trustee shall have no obligation to accelerate the Senior
Subordinated Notes if in the best judgment of the Trustee acceleration is not in
the best interest of the Holders.
The Senior
Subordinated Indenture provides that the Holders of a majority in aggregate
principal amount of the Senior Subordinated Notes then outstanding under the
Senior Subordinated Indenture by notice to the Trustee may on behalf of the
Holders of all of the Senior Subordinated Notes waive any existing Default and
its consequences under the Senior Subordinated Indenture except a continuing
Default in the payment of interest on, premium, if any, or the principal of any
Senior Subordinated Note held by a non-consenting Holder. In the event of any
Event of Default specified in clause (4) above, such Event of Default and
all consequences thereof (excluding any resulting payment default, other than as
a result of acceleration of the Senior Subordinated Notes) shall be annulled,
waived and rescinded, automatically and without any action by the Trustee or the
Holders, if within 20 days after such Event of Default arose:
(1)
the
Indebtedness or guarantee that is the basis for such Event of Default has been
discharged;
(2)
the Holders
thereof have rescinded or waived the acceleration, notice or action (as the case
may be) giving rise to such Event of Default; or
(3)
the default
that is the basis for such Event of Default has been cured.
Subject to
the provisions of the Senior Subordinated Indenture relating to the duties of
the Trustee thereunder, in case an Event of Default occurs and is continuing,
the Trustee will be under no obligation to exercise any of the rights or powers
under the Senior Subordinated Indenture at the request or direction of any of
the Holders unless the Holders have offered to the Trustee reasonable indemnity
or security against any loss, liability or expense. Except to enforce the right
to receive payment of principal, premium, if any, or interest when due, no
Holder may pursue any remedy with respect to the Senior Subordinated Indenture
or the Senior Subordinated Notes unless:
(1)
such Holder
has previously given the Trustee notice that an Event of Default is
continuing;
115
(2)
Holders of at
least 30% in principal amount of the then outstanding Senior Subordinated Notes
have requested the Trustee to pursue the remedy;
(3)
Holders have
offered the Trustee reasonable security or indemnity against any loss, liability
or expense;
(4)
the Trustee
has not complied with such request within 60 days after the receipt thereof
and the offer of security or indemnity; and
(5)
Holders of a
majority in principal amount of the then outstanding Senior Subordinated Notes
have not given the Trustee a direction inconsistent with such request within
such 60-day period.
Subject to
certain restrictions, under the Senior Subordinated Indenture the Holders of a
majority in principal amount of the total outstanding Senior Subordinated Notes
are given the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or of exercising any trust or
power conferred on the Trustee. The Trustee, however, may refuse to follow any
direction that conflicts with law or the Senior Subordinated Indenture or that
the Trustee determines is unduly prejudicial to the rights of any other Holder
or that would involve the Trustee in personal liability.
The Senior
Subordinated Indenture provides that the Issuer is required to deliver to the
Trustee annually a statement regarding compliance with the Senior Subordinated
Indenture, and the Issuer is required, within five Business Days, upon becoming
aware of any Default, to deliver to the Trustee a statement specifying such
Default.
No Personal Liability of
Directors, Officers, Employees and Stockholders
No director,
officer, employee, incorporator or stockholder of the Issuer or any Guarantor or
any of their parent companies (other than the Issuer and the Guarantors) shall
have any liability for any obligations of the Issuer or the Guarantors under the
Senior Subordinated Notes, the Guarantees or the Senior Subordinated Indenture
or for any claim based on, in respect of, or by reason of such obligations or
their creation. Each Holder by accepting the Senior Subordinated Notes waives
and releases all such liability. The waiver and release are part of the
consideration for issuance of the Senior Subordinated Notes. Such waiver may not
be effective to waive liabilities under the federal securities laws, and it is
the view of the SEC that such a waiver is against public policy.
Legal Defeasance and Covenant
Defeasance
The
obligations of the Issuer and the Guarantors under the Senior Subordinated
Indenture will terminate (other than certain obligations) and will be released
upon payment in full of all of the Senior Subordinated Notes issued under the
Senior Subordinated Indenture. The Issuer may, at its option and at any time,
elect to have all of its obligations discharged with respect to the Senior
Subordinated Notes issued under the Senior Subordinated Indenture and have the
Issuer's and each Guarantor's obligation discharged with respect to its
Guarantee ("
Legal Defeasance
") and cure all then existing Events of
Default except for:
(1)
the rights of
Holders issued under the Senior Subordinated Indenture to receive payments in
respect of the principal of, premium, if any, and interest on the Senior
Subordinated Notes when such payments are due solely out of the trust created
pursuant to the Senior Subordinated Indenture;
(2)
the Issuer's
obligations with respect to Senior Subordinated Notes concerning issuing
temporary notes, registration of such Senior Subordinated Notes, mutilated,
destroyed, lost or stolen Senior Subordinated Notes and the maintenance of an
office or agency for payment and money for security payments held in trust;
(3)
the rights,
powers, trusts, duties and immunities of the Trustee, and the Issuer's
obligations in connection therewith; and
(4)
the Legal
Defeasance provisions of the Senior Subordinated Indenture.
116
In
addition, the Issuer may, at its option and at any time, elect to have its
obligations and those of each Guarantor released with respect to certain
covenants that are described in the Senior Subordinated Indenture ("
Covenant
Defeasance
") and thereafter any omission to comply with such obligations
shall not constitute a Default with respect to the Senior Subordinated Notes. In
the event Covenant Defeasance occurs, certain events (not including bankruptcy,
receivership, rehabilitation and insolvency events pertaining to the Issuer)
described under "Events of Default and Remedies" will no longer constitute an
Event of Default with respect to the Senior Subordinated Notes.
In order to
exercise either Legal Defeasance or Covenant Defeasance with respect to the
Senior Subordinated Notes:
(1)
the Issuer
must irrevocably deposit with the Trustee, in trust, for the benefit of the
Holders, cash in U.S. dollars, Government Securities, or a combination thereof,
in such amounts as will be sufficient, in the opinion of a nationally recognized
firm of independent public accountants, to pay the principal of, premium, if
any, and interest due on the Senior Subordinated Notes issued under the Senior
Subordinated Indenture on the stated maturity date or on the redemption date, as
the case may be, of such principal, premium, if any, or interest on such Senior
Subordinated Notes, and the Issuer must specify whether such Senior Subordinated
Notes are being defeased to maturity or to a particular redemption date;
(2)
in the case
of Legal Defeasance, the Issuer shall have delivered to the Trustee an Opinion
of Counsel reasonably acceptable to the Trustee confirming that, subject to
customary assumptions and exclusions,
(a)
the
Issuer has received from, or there has been published by, the United States
Internal Revenue Service a ruling, or
(b)
since
the original issuance of the Senior Subordinated Notes, there has been a change
in the applicable U.S. federal income tax law,
in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, subject to
customary assumptions and exclusions, the Holders will not recognize income,
gain or loss for U.S. federal income tax purposes, as applicable, as a result of
such Legal Defeasance and will be subject to U.S. federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if
such Legal Defeasance had not occurred;
(3)
in the case
of Covenant Defeasance, the Issuer shall have delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject
to customary assumptions and exclusions, the Holders will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such Covenant
Defeasance and will be subject to such tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;
(4)
no Default
(other than that resulting from borrowing funds to be applied to make such
deposit and any similar and simultaneous deposit relating to other Indebtedness
and, in each case, the granting of Liens in connection therewith) shall have
occurred and be continuing on the date of such deposit;
(5)
such Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under the Senior Credit Facilities, the Senior
Indenture, the Senior Notes or any other material agreement or instrument (other
than the Senior Subordinated Indenture) to which the Issuer or any Guarantor is
a party or by which the Issuer or any Guarantor is bound (other than that
resulting from borrowing funds to be applied to make such deposit and any
similar and simultaneous deposit relating to other Indebtedness and, in each
case, the granting of Liens in connection therewith);
(6)
the Issuer
shall have delivered to the Trustee an Opinion of Counsel to the effect that, as
of the date of such opinion and subject to customary assumptions and exclusions
following the deposit, the trust funds will not be subject to the effect of
Section 547 of Title 11 of the United States Code;
117
(7)
the Issuer
shall have delivered to the Trustee an Officer's Certificate stating that the
deposit was not made by the Issuer with the intent of defeating, hindering,
delaying or defrauding any creditors of the Issuer or any Guarantor or others;
and
(8)
the Issuer
shall have delivered to the Trustee an Officer's Certificate and an Opinion of
Counsel (which Opinion of Counsel may be subject to customary assumptions and
exclusions) each stating that all conditions precedent provided for or relating
to the Legal Defeasance or the Covenant Defeasance, as the case may be, have
been complied with.
Satisfaction and
Discharge
The Senior
Subordinated Indenture will be discharged and will cease to be of further effect
as to all Senior Subordinated Notes issued thereunder, when either:
(1)
all Senior
Subordinated Notes theretofore authenticated and delivered, except lost, stolen
or destroyed Senior Subordinated Notes which have been replaced or paid and
Senior Subordinated Notes for whose payment money has theretofore been deposited
in trust, have been delivered to the Trustee for cancellation; or
(2)
(a)
all
Senior Subordinated Notes not theretofore delivered to the Trustee for
cancellation have become due and payable by reason of the making of a notice of
redemption or otherwise, will become due and payable within one year or may be
called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and
at the expense, of the Issuer, and the Issuer or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders, cash in U.S. dollars, Government
Securities, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest to pay and discharge the
entire indebtedness on the Senior Subordinated Notes not theretofore delivered
to the Trustee for cancellation for principal, premium, if any, and accrued
interest to the date of maturity or redemption;
(b)
no
Default (other than that resulting from borrowing funds to be applied to make
such deposit and any similar and simultaneous deposit relating to other
Indebtedness and, in each case, the granting of Liens in connection therewith)
with respect to the Senior Subordinated Indenture or the Senior Subordinated
Notes shall have occurred and be continuing on the date of such deposit or shall
occur as a result of such deposit, and such deposit will not result in a breach
or violation of, or constitute a default under, the Senior Credit Facilities,
the Senior Indenture, the Senior Notes or any other material agreement or
instrument (other than the Senior Subordinated Indenture) to which the Issuer or
any Guarantor is a party or by which the Issuer or any Guarantor is bound (other
than that resulting from borrowing funds to be applied to make such deposit and
any similar and simultaneous deposit relating to other Indebtedness and, in each
case, the granting of Liens in connection therewith);
(c)
the
Issuer has paid or caused to be paid all sums payable by it under the Senior
Subordinated Indenture; and
(d)
the
Issuer has delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Senior Subordinated Notes at maturity
or the redemption date, as the case may be.
In addition,
the Issuer must deliver an Officer's Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge
have been satisfied.
Amendment, Supplement and
Waiver
Except as
provided in the next two succeeding paragraphs, the Senior Subordinated
Indenture, any Guarantee, and the Senior Subordinated Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal
amount of the Senior Subordinated Notes then outstanding, including consents
118
obtained
in connection with a purchase of, or tender offer or exchange offer for, Senior
Subordinated Notes, and any existing Default or compliance with any provision of
the Senior Subordinated Indenture, the Senior Subordinated Notes issued
thereunder, any Guarantee may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Senior Subordinated Notes,
other than Senior Subordinated Notes beneficially owned by the Issuer or its
Affiliates (including consents obtained in connection with a purchase of or
tender offer or exchange offer for the Senior Subordinated Notes).
The Senior
Subordinated Indenture provides that, without the consent of each affected
Holder, an amendment or waiver may not, with respect to any Senior Subordinated
Notes held by a non-consenting Holder:
(1)
reduce the
principal amount of such Senior Subordinated Notes whose Holders must consent to
an amendment, supplement or waiver;
(2)
reduce the
principal of or change the fixed final maturity of any such Senior Subordinated
Note or alter or waive the provisions with respect to the redemption of such
Senior Subordinated Notes (other than provisions relating to the covenants
described above under the caption "Repurchase at the Option of Holders");
(3)
reduce the
rate of or change the time for payment of interest on any Senior Subordinated
Note;
(4)
waive a
Default in the payment of principal of or premium, if any, or interest on the
Senior Subordinated Notes, except a rescission of acceleration of the Senior
Subordinated Notes by the Holders of at least a majority in aggregate principal
amount of the Senior Subordinated Notes and a waiver of the payment default that
resulted from such acceleration, or in respect of a covenant or provision
contained in the Senior Subordinated Indenture or any Guarantee which cannot be
amended or modified without the consent of all Holders;
(5)
make any
Senior Subordinated Note payable in money other than that stated therein;
(6)
make any
change in the provisions of the Senior Subordinated Indenture relating to
waivers of past Defaults or the rights of Holders to receive payments of
principal of or premium, if any, or interest on the Senior Subordinated
Notes;
(7)
make any
change in these amendment and waiver provisions;
(8)
impair the
right of any Holder to receive payment of principal of, or interest on such
Holder's Senior Subordinated Notes on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such
Holder's Senior Subordinated Notes;
(9)
make any
change to or modify the ranking of the Senior Subordinated Notes that would
adversely affect the Holders; or
(10)
except as
expressly permitted by the Senior Subordinated Indenture, modify the Guarantees
of any Significant Subsidiary in any manner adverse to the Holders.
In addition,
any amendment to, or waiver of, the provisions of the Senior Subordinated
Indenture relating to subordination that adversely affects the rights of the
Holders will require the consent of the Holders of at least 75% in aggregate
principal amount of Senior Subordinated Notes then outstanding.
Notwithstanding
the foregoing, the Issuer, any Guarantor (with respect to a Guarantee or the
Senior Subordinated Indenture to which it is a party) and the Trustee may amend
or supplement the Senior Subordinated Indenture, any Guarantee or Notes without
the consent of any Holder;
(1)
to cure any
ambiguity, omission, mistake, defect or inconsistency;
(2)
to provide
for uncertificated Senior Subordinated Notes of such series in addition to or in
place of certificated Senior Subordinated Notes;
119
(3)
to comply
with the covenant relating to mergers, consolidations and sales of assets;
(4)
to provide
for the assumption of the Issuer's or any Guarantor's obligations to the
Holders;
(5)
to make any
change that would provide any additional rights or benefits to the Holders or
that does not adversely affect the legal rights under the Senior Subordinated
Indenture of any such Holder;
(6)
to add
covenants for the benefit of the Holders or to surrender any right or power
conferred upon the Issuer or any Guarantor;
(7)
to comply
with requirements of the SEC in order to effect or maintain the qualification of
the Senior Subordinated Indenture under the Trust Indenture Act;
(8)
to evidence
and provide for the acceptance and appointment under the Senior Subordinated
Indenture of a successor Trustee thereunder pursuant to the requirements
thereof;
(9)
to provide
for the issuance of Senior Subordinated Exchange Notes or private exchange
notes, which are identical to Senior Subordinated Exchange Notes except that
they are not freely transferable;
(10)
to add a
Guarantor under the Senior Subordinated Indenture;
(11)
to conform
the text of the Senior Subordinated Indenture, Guarantees or the Senior
Subordinated Notes to any provision of this "Description of Senior Subordinated
Notes" to the extent that such provision in this "Description of Senior
Subordinated Notes" was intended to be a verbatim recitation of a provision of
the Senior Subordinated Indenture, Guarantee or Senior Subordinated Notes;
or
(12)
to make any
amendment to the provisions of the Senior Subordinated Indenture relating to the
transfer and legending of Senior Subordinated Notes as permitted by the Senior
Subordinated Indenture, including, without limitation, to facilitate the
issuance and administration of the Senior Subordinated Notes;
provided
,
however
, that (i) compliance with the Senior Subordinated Indenture
as so amended would not result in Senior Subordinated Notes being transferred in
violation of the Securities Act or any applicable securities law and
(ii) such amendment does not materially and adversely affect the rights of
Holders to transfer Senior Subordinated Notes.
(13)
in the event
that PIK Notes are issued in certificated form, to make appropriate amendments
to the Senior Subordinated Indenture to reflect an appropriate minimum
denomination of certified PIK Notes and establish minimum redemption amounts for
certified PIK Notes.
The consent
of the Holders will not be necessary under the Senior Subordinated Indenture to
approve the particular form of any proposed amendment. It is sufficient if such
consent approves the substance of the proposed amendment.
Notices
Notices given
by publication will be deemed given on the first date on which publication is
made and notices given by first-class mail, postage prepaid, will be deemed
given five calendar days after mailing.
Concerning the
Trustee
The Senior
Subordinated Indenture contains certain limitations on the rights of the Trustee
thereunder, should it become a creditor of the Issuer, to obtain payment of
claims in certain cases, or to realize on certain property received in respect
of any such claim as security or otherwise. The Trustee is permitted to engage
in other transactions; however, if it acquires any conflicting interest it must
eliminate such conflict within 90 days, apply to the SEC for permission to
continue or resign.
120
The
Senior Subordinated Indenture provides that the Holders of a majority in
principal amount of the outstanding Senior Subordinated Notes will have the
right to direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee, subject to certain exceptions.
The Senior Subordinated Indenture provides that in case an Event of Default
shall occur (which shall not be cured), the Trustee is required, in the exercise
of its power, to use the degree of care of a prudent person in the conduct of
his own affairs. Subject to such provisions, the Trustee will be under no
obligation to exercise any of its rights or powers under the Senior Subordinated
Indenture at the request of any Holder of the Senior Subordinated Notes, unless
such Holder shall have offered to the Trustee security and indemnity
satisfactory to it against any loss, liability or expense.
Governing Law
The Senior
Subordinated Indenture, the Senior Subordinated Notes and any Guarantee are
governed by and construed in accordance with the laws of the State of New
York.
Certain Definitions
Set forth
below are certain defined terms used in the Senior Subordinated Indenture. For
purposes of the Senior Subordinated Indenture, unless otherwise specifically
indicated, the term "consolidated" with respect to any Person refers to such
Person on a consolidated basis in accordance with GAAP, but excluding from such
consolidation any Unrestricted Subsidiary as if such Unrestricted Subsidiary
were not an Affiliate of such Person.
"
ABL
Facility
" means the Asset-Based Revolving Credit Agreement to be entered
into as of the Issue Date by and among the Issuer, the lenders party thereto in
their capacities as lenders thereunder and The CIT Group/Business Credit Inc.,
as Administrative Agent, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements, refundings or
refinancings thereof and any indentures, notes, debentures or credit facilities
or commercial paper facilities with banks or other institutional lenders or
investors that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount
borrowable thereunder or alters the maturity thereof (
provided
that such
increase in borrowings is permitted under "Certain Covenants—Limitation on
Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock" above).
"
ABL
Facility Cap
" means an amount equal to the greater of
(x) $1,125.0 million and (y) the sum of (i) 85% of the net
orderly liquidation value as determined in good faith by the Issuer of inventory
of the Issuer and each Guarantor and (ii) 90% of all credit card
receivables of the Issuer and each Guarantor determined in accordance with
GAAP.
"
ABL
Obligations
" means Obligations under the ABL Facility.
"
ABL
Secured Parties
" means each of (i) the ABL Collateral Agent on behalf
of itself and the lenders under the ABL Facility and lenders or their affiliates
counterparty to related Hedging Obligations and (ii) each other holder of
ABL Obligations.
"
Acquired
Indebtedness
" means, with respect to any specified Person,
(1)
Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Restricted Subsidiary of such specified Person, including
Indebtedness incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Restricted Subsidiary of such
specified Person, and
(2)
Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.
"
Affiliate
"
of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such specified Person. For purposes of this definition, "control"
121
(including,
with correlative meanings, the terms "controlling," "controlled by" and "under
common control with"), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise.
"
Applicable
Premium
" means, with respect to any Senior Subordinated Note on any
Redemption Date, the greater of:
(1)
1.0% of the
principal amount of such Senior Subordinated Note; and
(2)
the excess,
if any, of (a) the present value at such Redemption Date of (i) the
redemption price of such Senior Subordinated Note at July 15, 2012 (such
redemption price being set forth in the tables appearing above under the caption
"Optional Redemption"), plus (ii) all required interest payments calculated
based on the Cash Interest rate payable on the Senior Subordinated Notes due on
such Senior Subordinated Note through July 15, 2012 (excluding accrued but
unpaid interest to the Redemption Date), computed using a discount rate equal to
the Treasury Rate as of such Redemption Date plus 50 basis points; over
(b) the principal amount of such Senior Subordinated Note.
"
Asset
Sale
" means:
(1)
the sale,
conveyance, transfer or other disposition, whether in a single transaction or a
series of related transactions, of property or assets (including by way of a
Sale and Lease-Back Transaction) of the Issuer or any of its Restricted
Subsidiaries (each referred to in this definition as a "
disposition
");
or
(2)
the issuance
or sale of Equity Interests of any Restricted Subsidiary, whether in a single
transaction or a series of related transactions (other than Preferred Stock of
Restricted Subsidiaries issued in compliance with the covenant described under
"Certain Covenants—Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock");
in each case, other than:
(a)
any
disposition of Cash Equivalents or Investment Grade Securities or obsolete or
worn out equipment in the ordinary course of business or any disposition of
inventory or goods (or other assets) held for sale in the ordinary course of
business;
(b)
the
disposition of all or substantially all of the assets of the Issuer in a manner
permitted pursuant to the provisions described above under "Certain
Covenants—Merger, Consolidation or Sale of All or Substantially All Assets" or
any disposition that constitutes a Change of Control pursuant to the Senior
Subordinated Indenture;
(c)
the making of
any Restricted Payment or Permitted Investment that is permitted to be made, and
is made, under the covenant described above under "Certain Covenants—Limitation
on Restricted Payments";
(d)
any
disposition of assets or issuance or sale of Equity Interests of any Restricted
Subsidiary in any transaction or series of related transactions with an
aggregate fair market value of less than $25.0 million;
(e)
any
disposition of property or assets or issuance of securities by a Restricted
Subsidiary of the Issuer to the Issuer or by the Issuer or a Restricted
Subsidiary of the Issuer to another Restricted Subsidiary of the Issuer;
(f)
to the extent
allowable under Section 1031 of the Code or any comparable or successor
provision, any exchange of like property (excluding any boot thereon) for use in
a Similar Business;
(g)
the lease,
assignment or sub-lease of any real or personal property in the ordinary course
of business;
122
(h)
any issuance
or sale of Equity Interests in, or Indebtedness or other securities of, an
Unrestricted Subsidiary;
(i)
foreclosures
on assets;
(j)
sales of
accounts receivable, or participations therein, in connection with the ABL
Facility or any Receivables Facility;
(k)
any financing
transaction with respect to property built or acquired by the Issuer or any
Restricted Subsidiary after the Issue Date, including Sale and Lease-Back
Transactions and asset securitizations permitted by the Senior Subordinated
Indenture;
(l)
dispositions
in the ordinary course of business by any Restricted Subsidiary engaged in the
insurance business in order to provide insurance to the Issuer and its
Subsidiaries;
(m)
the unwinding
of any Hedging Obligations; and
(n)
sales,
transfers and other dispositions of Investments in joint ventures to the extent
required by, or made pursuant to, customary buy/sell arrangements between the
joint venture parties set forth in joint venture arrangements and similar
binding arrangements.
"
Asset
Sale Offer
" has the meaning set forth in the fourth paragraph under
"Repurchase at the Option of Holders—Asset Sales."
"
Bankruptcy
Code
" means Title 11 of the United States Code, as amended.
"
Bankruptcy
Law
" means the Bankruptcy Code and any similar federal, state or foreign law
for the relief of debtors.
"
Business
Day
" means each day which is not a Legal Holiday.
"
Capital
Stock
" means:
(1)
in the case
of a corporation, corporate stock;
(2)
in the case
of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;
(3)
in the case
of a partnership or limited liability company, partnership or membership
interests (whether general or limited); and
(4)
any other
interest or participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of assets of, the issuing
Person.
"
Capitalized
Lease Obligation
" means, at the time any determination thereof is to be
made, the amount of the liability in respect of a capital lease that would at
such time be required to be capitalized and reflected as a liability on a
balance sheet (excluding the footnotes thereto) in accordance with GAAP.
"
Capitalized
Software Expenditures
" means, for any period, the aggregate of all
expenditures (whether paid in cash or accrued as liabilities) by a Person and
its Restricted Subsidiaries during such period in respect of purchased software
or internally developed software and software enhancements that, in conformity
with GAAP, are or are required to be reflected as capitalized costs on the
consolidated balance sheet of a Person and its Restricted Subsidiaries.
"
Cash
Equivalents
" means:
123
(1)
United States
dollars;
(2)
euro or any
national currency of any participating member state of the EMU or such local
currencies held by the Issuer and its Restricted Subsidiaries from time to time
in the ordinary course of business;
(3)
securities
issued or directly and fully and unconditionally guaranteed or insured by the
U.S. government (or any agency or instrumentality thereof the securities of
which are unconditionally guaranteed as a full faith and credit obligation of
the U.S. government) with maturities of 24 months or less from the date of
acquisition;
(4)
certificates
of deposit, time deposits and eurodollar time deposits with maturities of one
year or less from the date of acquisition, bankers' acceptances with maturities
not exceeding one year and overnight bank deposits, in each case with any
commercial bank having capital and surplus of not less than $500.0 million
in the case of U.S. banks and $100.0 million (or the U.S. dollar equivalent
as of the date of determination) in the case of non-U.S. banks;
(5)
repurchase
obligations for underlying securities of the types described in clauses
(3) and (4) entered into with any financial institution meeting the
qualifications specified in clause (4) above;
(6)
commercial
paper rated at least P-1 by Moody's or at least A-1 by S&P and in each case
maturing within 24 months after the date of creation thereof;
(7)
marketable
short-term money market and similar securities having a rating of at least P-2
or A-2 from either Moody's or S&P, respectively (or, if at any time neither
Moody's nor S&P shall be rating such obligations, an equivalent rating from
another Rating Agency) and in each case maturing within 24 months after the
date of creation thereof;
(8)
investment
funds investing 95% of their assets in securities of the types described in
clauses (1) through (7) above;
(9)
readily
marketable direct obligations issued by any state, commonwealth or territory of
the United States or any political subdivision or taxing authority thereof
having an Investment Grade Rating from either Moody's or S&P with maturities
of 24 months or less from the date of acquisition;
(10)
Indebtedness
or Preferred Stock issued by Persons with a rating of "A" or higher from S&P
or "A2" or higher from Moody's with maturities of 24 months or less from
the date of acquisition; and
(11)
Investments
with average maturities of 24 months or less from the date of acquisition
in money market funds rated AAA- (or the equivalent thereof) or better by
S&P or Aaa3 (or the equivalent thereof) or better by Moody's.
Notwithstanding
the foregoing, Cash Equivalents shall include amounts denominated in currencies
other than those set forth in clauses (1) and (2) above;
provided
that such amounts are converted into any currency listed in
clauses (1) and (2) as promptly as practicable and in any event within
ten Business Days following the receipt of such amounts.
"
Cash
Interest
" has the meaning set forth under "Principal, Maturity and
Interest."
"
Change of
Control
" means the occurrence of any of the following:
(1)
the sale,
lease or transfer, in one or a series of related transactions, of all or
substantially all of the assets of the Issuer and its Subsidiaries, taken as a
whole, to any Person other than a Permitted Holder; or
(2)
the Issuer
becomes aware (by way of a report or any other filing pursuant to
Section 13(d) of the Exchange Act, proxy, vote, written notice or
otherwise) of the acquisition by any Person or group (within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any
successor provision), including any
124
group
acting for the purpose of acquiring, holding or disposing of securities (within
the meaning of Rule 13d-5(b)(1) under the Exchange Act or any successor
provision), other than the Permitted Holders, in a single transaction or in a
related series of transactions, by way of merger, consolidation or other
business combination or purchase of beneficial ownership (within the meaning of
Rule 13d-3 under the Exchange Act, or any successor provision) of 50% or
more of the total voting power of the Voting Stock of the Issuer or any of its
direct or indirect parent companies holding directly or indirectly 100% of the
total voting power of the Voting Stock of the Issuer.
"
Code
"
means the Internal Revenue Code of 1986, as amended, or any successor
thereto.
"
Consolidated
Depreciation and Amortization Expense
" means with respect to any Person for
any period, the total amount of depreciation and amortization expense, including
the amortization of deferred financing fees, debt issuance costs, commissions,
fees and expenses and Capitalized Software Expenditures, of such Person and its
Restricted Subsidiaries for such period on a consolidated basis and otherwise
determined in accordance with GAAP.
"
Consolidated
Interest Expense
" means, with respect to any Person for any period, without
duplication, the sum of:
(1)
consolidated
interest expense of such Person and its Restricted Subsidiaries for such period,
to the extent such expense was deducted (and not added back) in computing
Consolidated Net Income (including (a) amortization of original issue
discount resulting from the issuance of Indebtedness at less than par,
(b) all commissions, discounts and other fees and charges owed with respect
to letters of credit or bankers' acceptances, (c) non-cash interest
payments (but excluding any non-cash interest expense attributable to the
movement in the mark to market valuation of Hedging Obligations or other
derivative instruments pursuant to GAAP), (d) the interest component of
Capitalized Lease Obligations, and (e) net payments, if any, pursuant to
interest rate Hedging Obligations with respect to Indebtedness, and excluding
(u) accretion or accrual of discounted liabilities not constituting
Indebtedness, (v) any expense resulting from the discounting any
Indebtedness in connection with the application of recapitalization accounting
or, if applicable, purchase accounting, (w) any Special Interest and any
comparable "additional interest" with respect to other securities,
(x) amortization of deferred financing fees, debt issuance costs,
commissions, fees and expenses, (y) any expensing of bridge, commitment and
other financing fees and (z) commissions, discounts, yield and other fees
and charges (including any interest expense) related to any Receivables
Facility); plus
(2)
consolidated
capitalized interest of such Person and its Restricted Subsidiaries for such
period, whether paid or accrued; less
(3)
interest
income for such period.
For purposes of this definition,
interest on a Capitalized Lease Obligation shall be deemed to accrue at an
interest rate reasonably determined by such Person to be the rate of interest
implicit in such Capitalized Lease Obligation in accordance with GAAP.
"
Consolidated
Leverage Ratio
" as of any date of determination, means the ratio of
(1) Consolidated Total Indebtedness of the Issuer and its Restricted
Subsidiaries as of the end of the most recent fiscal period for which internal
financial statements are available immediately preceding the date on which such
event for which such calculation is being made shall occur to (2) the
Issuer's EBITDA for the most recently ended four full fiscal quarters for which
internal financial statements are available immediately preceding the date on
which such event for which such calculation is being made shall occur, in each
case with such pro forma adjustments to Consolidated Total Indebtedness and
EBITDA as are appropriate and consistent with the pro forma adjustment
provisions set forth in the definition of "Fixed Charge Coverage Ratio."
"
Consolidated
Net Income
" means, with respect to any Person for any period, the aggregate
of the Net Income of such Person for such period, on a consolidated basis, and
otherwise determined in accordance with GAAP;
provided
,
however
,
that, without duplication,
125
(1)
any after-tax
effect of extraordinary, non-recurring or unusual gains or losses (less all fees
and expenses relating thereto) or expenses (including relating to the
Transactions to the extent incurred on or prior to May 1, 2008), severance,
relocation costs, consolidation and closing costs, integration and facilities
opening costs, business optimization costs, transition costs, restructuring
costs, signing, retention or completion bonuses, and curtailments or
modifications to pension and post-retirement employee benefit plans shall be
excluded,
(2)
the
cumulative effect of a change in accounting principles during such period shall
be excluded,
(3)
any after-tax
effect of income (loss) from disposed, abandoned or discontinued operations and
any net after-tax gains or losses on disposal of disposed, abandoned,
transferred, closed or discontinued operations shall be excluded,
(4)
any after-tax
effect of gains or losses (less all fees and expenses relating thereto)
attributable to asset dispositions or abandonments other than in the ordinary
course of business, as determined in good faith by the Issuer, shall be
excluded,
(5)
the Net
Income for such period of any Person that is an Unrestricted Subsidiary shall be
excluded, and, solely for the purpose of determining the amount available for
Restricted Payments under clause 3(a) of the first paragraph of "Certain
Covenants—Limitation on Restricted Payments," the Net Income for such period of
any Person that is not a Subsidiary or that is accounted for by the equity
method of accounting shall be excluded;
provided
that Consolidated Net
Income of the Issuer shall be increased by the amount of dividends or
distributions or other payments that are actually paid in cash (or to the extent
converted into cash) to the Issuer or a Restricted Subsidiary thereof in respect
of such period, to the extent not already included therein,
(6)
solely for
the purpose of determining the amount available for Restricted Payments under
clause (3)(a) of the first paragraph of "Certain Covenants—Limitation on
Restricted Payments," the Net Income for such period of any Restricted
Subsidiary (other than any Guarantor) shall be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of its Net Income is not at the date of determination wholly
permitted without any prior governmental approval (which has not been obtained)
or, directly or indirectly, by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, or governmental
regulation applicable to that Restricted Subsidiary or its stockholders, unless
such restriction with respect to the payment of dividends or similar
distributions has been legally waived;
provided
that Consolidated Net
Income of the Issuer will be increased by the amount of dividends or other
distributions or other payments actually paid in cash (or to the extent
converted into cash) or Cash Equivalents to the Issuer or a Restricted
Subsidiary thereof in respect of such period, to the extent not already included
therein,
(7)
effects of
adjustments (including the effects of such adjustments pushed down to the Issuer
and its Restricted Subsidiaries) in the property, equipment, inventory, software
and other intangible assets, deferred revenue and debt line items in such
Person's consolidated financial statements pursuant to GAAP resulting from the
application of recapitalization accounting or, if applicable, purchase
accounting in relation to the Transactions or any consummated acquisition or the
amortization or write-off of any amounts thereof, net of taxes, shall be
excluded,
(8)
any after-tax
effect of income (loss) from the early extinguishment of Indebtedness or Hedging
Obligations or other derivative instruments shall be excluded,
(9)
any
impairment charge or asset write-off, including, without limitation, impairment
charges or asset write-offs related to intangible assets, long-lived assets or
investments in debt and equity securities, in each case, pursuant to GAAP and
the amortization of intangibles arising pursuant to GAAP shall be excluded,
(10)
any non-cash
compensation expense recorded from grants of stock appreciation or similar
rights, stock options, restricted stock or other rights, and any cash charges
associated with the rollover, acceleration or payout of Equity Interests by
management of the Company or any of its direct or indirect parent companies in
connection with the Transactions, shall be excluded,
126
(11)
any fees and
expenses incurred during such period, or any amortization thereof for such
period, in connection with any acquisition, Investment, Asset Sale, issuance or
repayment of Indebtedness, issuance of Equity Interests, refinancing transaction
or amendment or modification of any debt instrument (in each case, including any
such transaction consummated prior to the Issue Date and any such transaction
undertaken but not completed) and any charges or non-recurring merger costs
incurred during such period as a result of any such transaction shall be
excluded,
(12)
accruals and
reserves that are established or adjusted within twelve months after the Issue
Date that are so required to be established as a result of the Transactions in
accordance with GAAP, or changes as a result of adoption or modification of
accounting policies, shall be excluded, and
(13)
to the extent
covered by insurance and actually reimbursed, or, so long as the Issuer has made
a determination that there exists reasonable evidence that such amount will in
fact be reimbursed by the insurer and only to the extent that such amount is
(a) not denied by the applicable carrier in writing within 180 days
and (b) in fact reimbursed within 365 days of the date of such
evidence (with a deduction for any amount so added back to the extent not so
reimbursed within 365 days), expenses with respect to liability or casualty
events or business interruption shall be excluded.
Notwithstanding
the foregoing, for the purpose of the covenant described under "Certain
Covenants—Limitation on Restricted Payments" only (other than clause (3)(d)
thereof), there shall be excluded from Consolidated Net Income any income
arising from any sale or other disposition of Restricted Investments made by the
Issuer and its Restricted Subsidiaries, any repurchases and redemptions of
Restricted Investments from the Issuer and its Restricted Subsidiaries, any
repayments of loans and advances which constitute Restricted Investments by the
Issuer or any of its Restricted Subsidiaries, any sale of the stock of an
Unrestricted Subsidiary or any distribution or dividend from an Unrestricted
Subsidiary, in each case only to the extent such amounts increase the amount of
Restricted Payments permitted under such covenant pursuant to clause (3)(d)
thereof.
"
Contingent
Obligations
" means, with respect to any Person, any obligation of such
Person guaranteeing any leases, dividends or other obligations that do not
constitute Indebtedness ("
primary obligations
") of any other Person (the
"
primary obligor
") in any manner, whether directly or indirectly,
including, without limitation, any obligation of such Person, whether or not
contingent,
(1)
to purchase
any such primary obligation or any property constituting direct or indirect
security therefor,
(2)
to advance or
supply funds:
(a)
for
the purchase or payment of any such primary obligation, or
(b)
to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, or
(3)
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 against loss in respect thereof.
"
Credit
Facilities
" means, with respect to the Issuer or any of its Restricted
Subsidiaries, one or more debt facilities, including the Senior Credit
Facilities, or other financing arrangements (including, without limitation,
commercial paper facilities or indentures) providing for revolving credit loans,
term loans, letters of credit or other long-term indebtedness, including any
notes, mortgages, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and any amendments, supplements,
modifications, extensions, renewals, restatements or refundings thereof and any
indentures, notes, debentures or credit facilities or commercial paper
facilities that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount
permitted to be borrowed thereunder or alters the maturity thereof
(
provided
that such increase in borrowings is
127
permitted
under "Certain Covenants—Limitation on Incurrence of Indebtedness and Issuance
of Disqualified Stock and Preferred Stock") or adds Restricted Subsidiaries as
additional borrowers or guarantors thereunder and whether by the same or any
other agent, lender or group of lenders.
"
Default
"
means any event that is, or with the passage of time or the giving of notice or
both would be, an Event of Default.
"
Designated
Non-cash Consideration
" means the fair market value of non-cash
consideration received by the Issuer or a Restricted Subsidiary in connection
with an Asset Sale that is so designated as Designated Non-cash Consideration
pursuant to an Officer's Certificate, setting forth the basis of such valuation,
executed by the principal financial officer of the Issuer, less the amount of
cash or Cash Equivalents received in connection with a subsequent sale of or
collection on such Designated Non-cash Consideration.
"
Designated
Preferred Stock
" means Preferred Stock of the Issuer or any parent
corporation thereof (in each case other than Disqualified Stock) that is issued
for cash (other than to a Restricted Subsidiary or an employee stock ownership
plan or trust established by the Issuer or any of its Subsidiaries) and is so
designated as Designated Preferred Stock, pursuant to an Officer's Certificate
executed by the principal financial officer of the Issuer or the applicable
parent corporation thereof, as the case may be, on the issuance date thereof,
the cash proceeds of which are excluded from the calculation set forth in
clause (3) of the first paragraph under "Certain Covenants—Limitation on
Restricted Payments."
"
Designated
Senior Indebtedness
" means:
(1)
any
Indebtedness outstanding under the Senior Credit Facilities;
(2)
any
Indebtedness outstanding under the Senior Indenture; and
(3)
any other
Senior Indebtedness permitted under the Senior Subordinated Indenture that, at
the date of determination, has an aggregate principal amount outstanding of at
least $35.0 million and is specifically designated by the issuer thereof as
"Designated Senior Indebtedness" for purposes of the Senior Subordinated
Indenture.
"
Disqualified
Stock
" means, with respect to any Person, any Capital Stock of such Person
which, by its terms, or by the terms of any security into which it is
convertible or for which it is putable or exchangeable, or upon the happening of
any event, matures or is mandatorily redeemable (other than solely as a result
of a change of control or asset sale) pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof (other than
solely as a result of a change of control or asset sale), in whole or in part,
in each case prior to the date 91 days after the earlier of the maturity
date of the Senior Subordinated Notes or the date the Senior Subordinated Notes
are no longer outstanding;
provided
,
however
, that if such Capital
Stock is issued to any plan for the benefit of employees of the Issuer or its
Subsidiaries or by any such plan to such employees, such Capital Stock shall not
constitute Disqualified Stock solely because it may be required to be
repurchased by the Issuer or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations.
"
EBITDA
"
means, with respect to any Person for any period, the Consolidated Net Income of
such Person for such period
(1)
increased
(without duplication) by:
(a)
provision
for taxes based on income or profits or capital gains, including, without
limitation, foreign, federal, state, franchise and similar taxes and foreign
withholding taxes (including penalties and interest related to such taxes or
arising from tax examinations) of such Person paid or accrued during such period
deducted (and not added back) in computing Consolidated Net Income in such
period;
plus
128
(b)
Fixed
Charges of such Person for such period (including (x) net losses on Hedging
Obligations or other derivative instruments entered into for the purpose of
hedging interest rate risk and (y) costs of surety bonds in connection with
financing activities, in each case, to the extent included in Fixed Charges),
together with items excluded from the definition of "Consolidated Interest
Expense" pursuant to clauses (1)(u), (v), (w), (x), (y) and (z) of the
definition thereof, and, in each such case, to the extent the same were deducted
(and not added back) in calculating such Consolidated Net Income in such period;
plus
(c)
Consolidated
Depreciation and Amortization Expense of such Person for such period to the
extent the same was deducted (and not added back) in computing Consolidated Net
Income in such period;
plus
(d)
any
expenses or charges (other than depreciation or amortization expense) related to
any Equity Offering, Permitted Investment, acquisition, disposition,
recapitalization or the incurrence of Indebtedness permitted to be incurred by
the Senior Subordinated Indenture (including a refinancing thereof) (whether or
not successful), including (i) such fees, expenses or charges related to
the offering of the Senior Subordinated Notes and any Credit Facilities and
(ii) any amendment or other modification of the Senior Subordinated Notes,
and, in each case, deducted (and not added back) in computing Consolidated Net
Income in such period;
plus
(e)
the
amount of any restructuring charge or reserve deducted (and not added back) in
such period in computing Consolidated Net Income, including any one-time costs
incurred in connection with acquisitions after the Issue Date and costs related
to the closure and/or consolidation of facilities;
plus
(f)
any
other non-cash charges, including any write-offs or write-downs, reducing
Consolidated Net Income for such period (
provided
that if any such
non-cash charges represent an accrual or reserve for potential cash items in any
future period, the cash payment in respect thereof in such future period shall
be subtracted from EBITDA to such extent, and excluding amortization of a
prepaid cash item that was paid in a prior period);
plus
(g)
the
amount of any minority interest expense consisting of income attributable to
minority equity interests of third parties deducted (and not added back) in such
period in calculating Consolidated Net Income in such period;
plus
(h)
the
amount of management, monitoring, consulting and advisory fees and related
expenses paid in such period to the Investors to the extent otherwise permitted
under "Certain Covenants—Transactions with Affiliates";
plus
(i)
the
amount of net cost savings projected by the Issuer in good faith to be realized
as a result of specified actions taken or to be taken (calculated on a
pro
forma
basis as though such cost savings had been realized on the first day
of such period), net of the amount of actual benefits realized during such
period from such actions;
provided
that (w) such cost savings are
reasonably identifiable and factually supportable, (x) such actions have
been taken or are to be taken within 12 months after the date of
determination to take such action, (y) no cost savings shall be added
pursuant to this clause (i) to the extent duplicative of any expenses or
charges relating to such cost savings that are included in clause (e) above
with respect to such period and (z) the aggregate amount of cost savings
added pursuant to this clause (i) shall not exceed $25.0 million for
any four consecutive quarter period (which adjustments may be incremental to
pro forma
adjustments made pursuant to the second paragraph of the
definition of "Fixed Charge Coverage Ratio");
plus
(j)
the
amount of loss on sales of receivables and related assets to the Receivables
Subsidiary in connection with a Receivables Facility;
plus
(k)
an
amount equal to the impact on cost of goods sold and operating profit of
incremental markdowns taken as a result of Project Alpha as described in
the offering documentation relating to the
129
outstanding
notes;
provided
that this clause (k) shall not apply to any
quarterly period beginning after February 1, 2008;
plus
(l)
any
expenses associated with Project Alpha inventory and real estate initiatives as
described in the offering documentation relating to the outstanding notes;
provided
that this clause (l) shall not apply to any quarterly period
beginning after February 1, 2008;
plus
(m)
any
costs or expense incurred by the Issuer or a Restricted Subsidiary pursuant to
any management equity plan or stock option plan or any other management or
employee benefit plan or agreement or any stock subscription or shareholder
agreement, to the extent that such cost or expenses are funded with cash
proceeds contributed to the capital of the Issuer or net cash proceeds of an
issuance of Equity Interests of the Issuer (other than Disqualified Stock)
solely to the extent that such net cash proceeds are excluded from the
calculation set forth in clause (3) of the first paragraph under "Certain
Covenants—Limitation on Restricted Payments";
(2)
decreased by
(without duplication) non-cash gains increasing Consolidated Net Income of such
Person for such period, excluding any non-cash gains to the extent they
represent the reversal of an accrual or reserve for a potential cash item that
reduced EBITDA in any prior period; and
(3)
increased or
decreased by (without duplication):
(a)
any
net gain or loss resulting in such period from Hedging Obligations and the
application of Statement of Financial Accounting Standards No. 133;
plus
or
minus
, as applicable, and
(b)
any
net gain or loss resulting in such period from currency translation gains or
losses related to currency remeasurements of Indebtedness (including any net
loss or gain resulting from Hedging Obligations for currency exchange risk).
"
EMU
"
means the economic and monetary union as contemplated in the Treaty on European
Union.
"
Equity
Interests
" means Capital Stock and all warrants, options or other rights to
acquire Capital Stock, but excluding any debt security that is convertible into,
or exchangeable for, Capital Stock.
"
Equity
Offering
" means any public or private sale of common stock or Preferred
Stock of the Issuer or any of its direct or indirect parent companies (excluding
Disqualified Stock), other than:
(1)
public
offerings with respect to the Issuer's or any direct or indirect parent
company's common stock registered on Form S-8;
(2)
issuances to
any Subsidiary of the Issuer; and
(3)
any such
public or private sale that constitutes an Excluded Contribution.
"
euro
"
means the single currency of participating member states of the EMU.
"
Event of
Default
" has the meaning set forth under "Events of Default and
Remedies."
"
Excess
Proceeds
" has the meaning set forth in the fourth paragraph under
"Repurchase at the Option of Holders—Asset Sales."
"
Exchange
Act
" means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.
"
Excluded
Contribution
" means net cash proceeds, marketable securities or Qualified
Proceeds received by the Issuer after the Issue Date from
130
(1)
contributions
to its common equity capital, and
(2)
the sale
(other than to a Subsidiary of the Issuer or to any management equity plan or
stock option plan or any other management or employee benefit plan or agreement
of the Issuer) of Capital Stock (other than Disqualified Stock and Designated
Preferred Stock) of the Issuer,
in each case designated as
Excluded Contributions pursuant to an Officer's Certificate executed by the
principal financial officer of the Issuer on the date such capital contributions
are made or the date such Equity Interests are sold, as the case may be, which
are excluded from the calculation set forth in clause (3) of the first
paragraph under "Certain Covenants—Limitation on Restricted Payments."
"
Fixed
Charge Coverage Ratio
" means, with respect to any Person for any period, the
ratio of EBITDA of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the Issuer or any Restricted
Subsidiary incurs, assumes, guarantees, redeems, retires or extinguishes any
Indebtedness (other than Indebtedness incurred under any revolving credit
facility unless such Indebtedness has been permanently repaid and has not been
replaced) or issues or redeems Disqualified Stock or Preferred Stock subsequent
to the commencement of the period for which the Fixed Charge Coverage Ratio is
being calculated but prior to or simultaneously with the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the "
Fixed Charge
Coverage Ratio Calculation Date
"), then the Fixed Charge Coverage Ratio
shall be calculated giving
pro forma
effect to such incurrence,
assumption, guarantee, redemption, retirement or extinguishment of Indebtedness,
or such issuance or redemption of Disqualified Stock or Preferred Stock, as if
the same had occurred on the first day of the applicable four-quarter
period.
For purposes
of making the computation referred to above, Investments, acquisitions,
dispositions, mergers, consolidations and disposed operations (as determined in
accordance with GAAP) that have been made by the Issuer or any of its Restricted
Subsidiaries during the four-quarter reference period or subsequent to such
reference period and on or prior to or simultaneously with the Fixed Charge
Coverage Ratio Calculation Date shall be calculated on a
pro forma
basis
assuming that all such Investments, acquisitions, dispositions, mergers,
consolidations and disposed operations (and the change in any associated fixed
charge obligations and the change in EBITDA resulting therefrom) had occurred on
the first day of the four-quarter reference period. If, since the beginning of
such period, any Person that subsequently became a Restricted Subsidiary or was
merged with or into the Issuer or any of its Restricted Subsidiaries since the
beginning of such period shall have made any Investment, acquisition,
disposition, merger, consolidation or disposed operation that would have
required adjustment pursuant to this definition, then the Fixed Charge Coverage
Ratio shall be calculated giving
pro forma
effect thereto for such period
as if such Investment, acquisition, disposition, merger, consolidation or
disposed operation had occurred on the first day of the applicable four-quarter
period.
For purposes
of this definition, whenever
pro forma
effect is to be given to a
transaction, the
pro forma
calculations shall be made in good faith by a
responsible financial or accounting officer of the Issuer. If any Indebtedness
bears a floating rate of interest and is being given
pro forma
effect,
the interest on such Indebtedness shall be calculated as if the rate in effect
on the Fixed Charge Coverage Ratio Calculation Date had been the applicable rate
for the entire period (taking into account any Hedging Obligations applicable to
such Indebtedness). Interest on a Capitalized Lease Obligation shall be deemed
to accrue at an interest rate reasonably determined by a responsible financial
or accounting officer of the Issuer to be the rate of interest implicit in such
Capitalized Lease Obligation in accordance with GAAP. For purposes of making the
computation referred to above, interest on any Indebtedness under a revolving
credit facility computed on a
pro forma
basis shall be computed based
upon the average daily balance of such Indebtedness during the applicable period
except as set forth in the first paragraph of this definition. Interest on
Indebtedness that may optionally be determined at an interest rate based upon a
factor of a prime or similar rate, a eurocurrency interbank offered rate or
other rate shall be deemed to have been based upon the rate actually chosen, or,
if none, then based upon such optional rate chosen as the Issuer may
designate.
"
Fixed
Charges
" means, with respect to any Person for any period, the sum of:
(1)
Consolidated
Interest Expense of such Person for such period;
131
(2)
all cash
dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Preferred Stock during such period; and
(3)
all cash
dividends or other distributions paid (excluding items eliminated in
consolidation) on any series of Disqualified Stock during such period.
"
Foreign
Subsidiary
" means, with respect to any Person, any Restricted Subsidiary of
such Person that is not organized or existing under the laws of the United
States, any state thereof or the District of Columbia and any Restricted
Subsidiary of such Foreign Subsidiary.
"
GAAP
"
means generally accepted accounting principles in the United States which are in
effect on the Issue Date.
"
General
Credit Facility
" means the credit agreement to be entered into as of the
Issue Date by and among the Issuer, the lenders party thereto in their
capacities as lenders thereunder and Citicorp North America, Inc., as
Administrative Agent, including any guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments,
supplements, modifications, extensions, renewals, restatements, refundings or
refinancings thereof and any indentures, notes, debentures or credit facilities
or commercial paper facilities with banks or other institutional lenders or
investors that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount
borrowable thereunder or alters the maturity thereof (
provided
that such
increase in borrowings is permitted under "Certain Covenants—Limitation on
Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock" above).
"
Government
Securities
" means securities that are:
(1)
direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged; or
(2)
obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America,
which, in either case, are not
callable or redeemable at the option of the issuers thereof, and shall also
include a depository receipt issued by a bank (as defined in
Section 3(a)(2) of the Securities Act), as custodian with respect to any
such Government Securities or a specific payment of principal of or interest on
any such Government Securities held by such custodian for the account of the
holder of such depository receipt;
provided
that (except as required by
law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the Government Securities or the specific payment of
principal of or interest on the Government Securities evidenced by such
depository receipt.
"
guarantee
"
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including letters of credit and reimbursement agreements in respect
thereof), of all or any part of any Indebtedness or other obligations.
"
Guarantee
"
means the guarantee by any Guarantor of the Issuer's Obligations under the
Senior Subordinated Indenture.
"
Guarantor
"
means each Restricted Subsidiary that Guarantees the Senior Subordinated Notes
in accordance with the terms of the Senior Subordinated Indenture.
"
Hedging
Obligations
" means, with respect to any Person, the obligations of such
Person under any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement, commodity swap agreement, commodity cap
agreement, commodity collar agreement, foreign exchange contract, currency swap
agreement or
132
similar
agreement providing for the transfer or mitigation of interest rate or currency
risks either generally or under specific contingencies.
"
Holder
"
means the Person in whose name a Senior Subordinated Note is registered on the
registrar's books.
"
Indebtedness
"
means, with respect to any Person, without duplication:
(1)
any
indebtedness (including principal and premium) of such Person, whether or not
contingent:
(a)
in
respect of borrowed money;
(b)
evidenced
by bonds, notes, debentures or similar instruments or letters of credit or
bankers' acceptances (or, without duplication, reimbursement agreements in
respect thereof);
(c)
representing
the balance deferred and unpaid of the purchase price of any property (including
Capitalized Lease Obligations), except (i) any such balance that
constitutes a trade payable or similar obligation to a trade creditor, in each
case accrued in the ordinary course of business and (ii) any earn-out
obligations until such obligation becomes a liability on the balance sheet of
such Person in accordance with GAAP; or
(d)
representing
any Hedging Obligations;
if and to
the extent that any of the foregoing Indebtedness (other than letters of credit
and Hedging Obligations) would appear as a liability upon a balance sheet
(excluding the footnotes thereto) of such Person prepared in accordance with
GAAP;
(2)
to the extent
not otherwise included, any obligation by such Person to be liable for, or to
pay, as obligor, guarantor or otherwise on, the obligations of the type referred
to in clause (1) of a third Person (whether or not such items would appear
upon the balance sheet of the such obligor or guarantor), other than by
endorsement of negotiable instruments for collection in the ordinary course of
business; and
(3)
to the extent
not otherwise included, the obligations of the type referred to in
clause (1) of a third Person secured by a Lien on any asset owned by such
first Person, whether or not such Indebtedness is assumed by such first
Person;
provided
,
however
,
that notwithstanding the foregoing, Indebtedness shall be deemed not to include
(a) Contingent Obligations incurred in the ordinary course of business or
(b) obligations under or in respect of Receivables Facilities.
"
Independent
Financial Advisor
" means an accounting, appraisal, investment banking firm
or consultant to Persons engaged in Similar Businesses of nationally recognized
standing that is, in the good faith judgment of the Issuer, qualified to perform
the task for which it has been engaged.
"
Initial
Purchasers
" means Goldman, Sachs & Co., Citigroup Global
Markets Inc., Lehman Brothers Inc. and Wachovia Capital Markets,
LLC.
"
insolvency
or liquidation proceeding
" means:
(1)
any case
commenced by or against the Issuer or any Guarantor under any Bankruptcy Law for
the relief of debtors, any other proceeding for the reorganization,
recapitalization or adjustment or marshalling of the assets or liabilities of
the Issuer or any Guarantor, any receivership or assignment for the benefit of
creditors relating to the Issuer or any Guarantor or any similar case or
proceeding relative to the Issuer or any Guarantor or its creditors, as such, in
each case whether or not voluntary;
133
(2)
any
liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to the Issuer or any Guarantor, in each case whether or not
voluntary and whether or not involving bankruptcy or insolvency; or
(3)
any other
proceeding of any type or nature in which substantially all claims of creditors
of the Issuer or any Guarantor are determined and any payment or distribution is
or may be made on account of such claims.
"
Investment
Grade Rating
" means a rating equal to or higher than Baa3 (or the
equivalent) by Moody's and BBB- (or the equivalent) by S&P, or an equivalent
rating by any other Rating Agency.
"
Investment
Grade Securities
" means:
(1)
securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof (other than Cash
Equivalents);
(2)
debt
securities or debt instruments with an Investment Grade Rating, but excluding
any debt securities or instruments constituting loans or advances among the
Issuer and its Subsidiaries;
(3)
investments
in any fund that invests exclusively in investments of the type described in
clauses (1) and (2) which fund may also hold immaterial amounts of
cash pending investment or distribution; and
(4)
corresponding
instruments in countries other than the United States customarily utilized for
high quality investments.
"
Investments
"
means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of loans (including guarantees),
advances or capital contributions (excluding accounts receivable, trade credit,
advances to customers, commissions, travel and similar advances to officers and
employees, in each case made in the ordinary course of business), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other
securities issued by any other Person and investments that are required by GAAP
to be classified on the balance sheet (excluding the footnotes) of the Issuer in
the same manner as the other investments included in this definition to the
extent such transactions involve the transfer of cash or other property. For
purposes of the definition of "Unrestricted Subsidiary" and the covenant
described under "Certain Covenants—Limitation on Restricted Payments":
(1)
"Investments"
shall include the portion (proportionate to the Issuer's equity interest in such
Subsidiary) of the fair market value of the net assets of a Subsidiary of the
Issuer at the time that such Subsidiary is designated an Unrestricted
Subsidiary;
provided
,
however
, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Issuer shall be deemed to continue to
have a permanent "Investment" in an Unrestricted Subsidiary in an amount (if
positive) equal to:
(a)
the
Issuer's "Investment" in such Subsidiary at the time of such redesignation;
less
(b)
the
portion (proportionate to the Issuer equity interest in such Subsidiary) of the
fair market value of the net assets of such Subsidiary at the time of such
redesignation; and
(2)
any property
transferred to or from an Unrestricted Subsidiary shall be valued at its fair
market value at the time of such transfer, in each case as determined in good
faith by the Issuer.
"
Investors
"
means Kohlberg Kravis Roberts & Co. L.P. GS Capital Partners VI Fund,
L.P. and funds managed by Citigroup Private Equity LP, and each of their
respective Affiliates but not including, however, any portfolio companies of any
of the foregoing.
"
Issue
Date
" means July 6, 2007.
134
"
Issuer
"
has the meaning set forth in the first paragraph under "General";
provided
that when used in the context of determining the fair market
value of an asset or liability under the Senior Subordinated Indenture other
than in calculating the ABL Facility Cap, "Issuer" shall be deemed to mean the
board of directors of the Issuer when the fair market value is equal to or in
excess of $50.0 million (unless otherwise expressly stated).
"
Legal
Holiday
" means a Saturday, a Sunday or a day on which commercial banking
institutions are not required to be open in the State of New York.
"
Lien
"
means, with respect to any asset, any mortgage, lien (statutory or otherwise),
pledge, hypothecation, charge, security interest, preference, priority or
encumbrance of any kind in respect of such asset, whether or not filed, recorded
or otherwise perfected under applicable law, including any conditional sale or
other title retention agreement, any lease in the nature thereof, any option or
other agreement to sell or give a security interest in and any filing of or
agreement to give any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction;
provided
that in no event shall
an operating lease be deemed to constitute a Lien.
"
Moody's
"
means Moody's Investors Service, Inc. and any successor to its rating
agency business.
"
Net
Income
" means, with respect to any Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect
of Preferred Stock dividends.
"
Net
Proceeds
" means the aggregate cash proceeds received by the Issuer or any of
its Restricted Subsidiaries in respect of any Asset Sale, including any cash
received upon the sale or other disposition of any Designated Non-cash
Consideration received in any Asset Sale, net of the direct costs relating to
such Asset Sale and the sale or disposition of such Designated Non-cash
Consideration, including legal, accounting and investment banking fees, and
brokerage and sales commissions, any relocation expenses incurred as a result
thereof, taxes paid or payable as a result thereof (after taking into account
any available tax credits or deductions and any tax sharing arrangements),
amounts required to be applied to the repayment of principal, premium, if any,
and interest on Senior Indebtedness required (other than required by
clause (1) of the second paragraph of "Repurchase at the Option of
Holders—Asset Sales") to be paid as a result of such transaction and any
deduction of appropriate amounts to be provided by the Issuer or any of its
Restricted Subsidiaries as a reserve in accordance with GAAP against any
liabilities associated with the asset disposed of in such transaction and
retained by the Issuer or any of its Restricted Subsidiaries after such sale or
other disposition thereof, including pension and other post-employment benefit
liabilities and liabilities related to environmental matters or against any
indemnification obligations associated with such transaction.
"
Obligations
"
means any principal, interest (including any interest accruing subsequent to the
filing of a petition in bankruptcy, reorganization or similar proceeding at the
rate provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable state, federal or foreign law),
premium, penalties, fees, indemnifications, reimbursements (including
reimbursement obligations with respect to letters of credit and bankers'
acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities, payable under the documentation governing any
Indebtedness.
"
Officer
"
means the Chairman of the Board, the Chief Executive Officer, the President, any
Executive Vice President, Senior Vice President or Vice President, the Treasurer
or the Secretary of the Issuer.
"
Officer's
Certificate
" means a certificate signed on behalf of the Issuer by an
Officer of the Issuer, who must be the principal executive officer, the
principal financial officer, the treasurer or the principal accounting officer
of the Issuer, that meets the requirements set forth in the Senior Subordinated
Indenture.
"
Opinion
of Counsel
" means a written opinion from legal counsel who is acceptable to
the Trustee. The counsel may be an employee of or counsel to the Issuer or the
Trustee.
"
Partial
PIK Interest
" has the meaning set forth under "Principal, Maturity and
Interest."
135
"
Permitted
Asset Swap
" means the concurrent purchase and sale or exchange of Related
Business Assets or a combination of Related Business Assets and cash or Cash
Equivalents between the Issuer or any of its Restricted Subsidiaries and another
Person;
provided
, that any cash or Cash Equivalents received must be
applied in accordance with the covenant described under "Repurchase at the
Option of Holders—Asset Sales."
"
Permitted
Holders
" means each of the Investors, members of management of the Issuer
(or its direct or indirect parent) and any assignees of the equity commitments
of the Investors on the Issue Date who are (or will be pursuant to the
agreements referenced in "The Transactions" section included elsewhere in this
prospectus)  holders of Equity Interests of the Issuer (or any of its
direct or indirect parent companies) and any group (within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any
successor provision) of which any of the foregoing are members;
provided
that, in the case of such group and without giving effect to the existence of
such group or any other group, such Investors, members of management and
assignees of the equity commitments of the Investors, collectively, have
beneficial ownership of more than 50% of the total voting power of the Voting
Stock of the Issuer or any of its direct or indirect parent companies.
"
Permitted
Investments
" means:
(1)
any
Investment in the Issuer or any of its Restricted Subsidiaries;
(2)
any
Investment in cash and Cash Equivalents or Investment Grade Securities;
(3)
any
Investment by the Issuer or any of its Restricted Subsidiaries in a Person that
is engaged in a Similar Business if as a result of such Investment:
(a)
such
Person becomes a Restricted Subsidiary; or
(b)
such
Person, in one transaction or a series of related transactions, is merged or
consolidated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, the Issuer or a Restricted Subsidiary,
and, in each case, any
Investment held by such Person;
provided,
that such Investment was not
acquired by such Person in contemplation of such acquisition, merger,
consolidation or transfer;
(4)
any
Investment in securities or other assets not constituting cash, Cash Equivalents
or Investment Grade Securities and received in connection with an Asset Sale
made pursuant to the provisions described under "Repurchase at the Option of
Holders—Asset Sales" or any other disposition of assets not constituting an
Asset Sale;
(5)
any
Investment existing on the Issue Date;
(6)
any
Investment acquired by the Issuer or any of its Restricted Subsidiaries:
(a)
in
exchange for any other Investment or accounts receivable held by the Issuer or
any such Restricted Subsidiary in connection with or as a result of a
bankruptcy, workout, reorganization or recapitalization of the issuer of such
other Investment or accounts receivable; or
(b)
as
a result of a foreclosure by the Issuer or any of its Restricted Subsidiaries
with respect to any secured Investment or other transfer of title with respect
to any secured Investment in default;
(7)
Hedging
Obligations permitted under clause (11) of the second paragraph of the
covenant described in "Certain Covenants—Limitation on Incurrence of
Indebtedness and Issuance of Disqualified Stock and Preferred Stock";
(8)
any
Investment in a Similar Business having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause (8) that
are at that time outstanding, not to exceed $50.0 million at
136
the
time of such Investment (with the fair market value of each Investment being
measured at the time made and without giving effect to subsequent changes in
value);
(9)
Investments
the payment for which consists of Equity Interests (exclusive of Disqualified
Stock) of the Issuer or any of its direct or indirect parent companies;
provided
,
however
, that such Equity Interests will not increase
the amount available for Restricted Payments under clause (3) of the first
paragraph under the covenant described in "Certain Covenants—Limitations on
Restricted Payments";
(10)
guarantees of
Indebtedness permitted under the covenant described in "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock";
(11)
any
transaction to the extent it constitutes an Investment that is permitted and
made in accordance with the provisions of the second paragraph of the covenant
described under "Certain Covenants—Transactions with Affiliates" (except
transactions described in clauses (2), (5) and (9) of such
paragraph);
(12)
Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment;
(13)
additional
Investments having an aggregate fair market value, taken together with all other
Investments made pursuant to this clause (13) that are at that time
outstanding (without giving effect to the sale of an Unrestricted Subsidiary to
the extent the proceeds of such sale do not consist of cash or marketable
securities), not to exceed $100.0 million at the time of such Investment
(with the fair market value of each Investment being measured at the time made
and without giving effect to subsequent changes in value);
(14)
Investments
relating to a Receivables Subsidiary that, in the good faith determination of
the Issuer, are necessary or advisable to effect the ABL Facility or any
Receivables Facility, as the case may be;
(15)
advances to,
or guarantees of Indebtedness of, employees not in excess of $10.0 million
outstanding at any one time, in the aggregate;
(16)
loans and
advances to officers, directors and employees for business-related travel
expenses, moving expenses and other similar expenses, in each case incurred in
the ordinary course of business or consistent with past practices or to fund
such Person's purchase of Equity Interests of the Issuer or any direct or
indirect parent company thereof; and
(17)
Investments
consisting of purchases and acquisitions of inventory, supplies, material or
equipment or the licensing or contribution of intellectual property pursuant to
joint marketing arrangements with other Persons.
"
Permitted
Junior Securities
" means:
(1)
Equity
Interests in the Issuer, any Guarantor or any direct or indirect parent of the
Issuer; or
(2)
unsecured
debt securities that are subordinated to all Senior Indebtedness (and any debt
securities issued in exchange for Senior Indebtedness) to substantially the same
extent as, or to a greater extent than, the Senior Subordinated Notes and the
related Guarantees are subordinated to Senior Indebtedness under the Senior
Subordinated Indenture;
provided
that the term "Permitted Junior Securities" shall not include any securities
distributed pursuant to a plan of reorganization if the Indebtedness under the
Senior Credit Facilities is treated as part of the same class as the Senior
Subordinated Notes for purposes of such plan of reorganization;
provided
further
that to the extent that any Senior Indebtedness of the Issuer
outstanding on the date of consummation of any such plan of reorganization is
not paid in full in cash on such date, the holders of any such Senior
Indebtedness not so paid in full in cash have consented to the terms of such
plan of reorganization.
"
Permitted
Liens
" means, with respect to any Person:
137
(1)
pledges or
deposits by such Person under workmen's compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection with
bids, tenders, contracts (other than for the payment of Indebtedness) or leases
to which such Person is a party, or deposits to secure public or statutory
obligations of such Person or deposits of cash or U.S. government bonds to
secure surety or appeal bonds to which such Person is a party, or deposits as
security for contested taxes or import duties or for the payment of rent, in
each case incurred in the ordinary course of business;
(2)
Liens imposed
by law, such as carriers', warehousemen's and mechanics' Liens, in each case for
sums not yet overdue for a period of more than 30 days or being contested
in good faith by appropriate proceedings or other Liens arising out of judgments
or awards against such Person with respect to which such Person shall then be
proceeding with an appeal or other proceedings for review if adequate reserves
with respect thereto are maintained on the books of such Person in accordance
with GAAP;
(3)
Liens for
taxes, assessments or other governmental charges not yet overdue for a period of
more than 30 days or payable or subject to penalties for nonpayment or
which are being contested in good faith by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the books
of such Person in accordance with GAAP;
(4)
Liens in
favor of issuers of performance and surety bonds or bid bonds or with respect to
other regulatory requirements or letters of credit issued pursuant to the
request of and for the account of such Person in the ordinary course of its
business;
(5)
minor survey
exceptions, minor encumbrances, easements or reservations of, or rights of
others for, licenses, rights-of-way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning or other restrictions as
to the use of real properties or Liens incidental to the conduct of the business
of such Person or to the ownership of its properties which were not incurred in
connection with Indebtedness and which do not in the aggregate materially
adversely affect the value of said properties or materially impair their use in
the operation of the business of such Person;
(6)
Liens
securing Indebtedness permitted to be incurred pursuant to clauses (1), (5),
(13), (14), (19) or (20) of the second paragraph under "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock";
provided
that (a) Liens securing
Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred
pursuant to clause (14) relate only to Refinancing Indebtedness that serves
to refund or refinance Indebtedness, Disqualified Stock or Preferred Stock
incurred under clause (5) or (13) of the second paragraph under
"Certain Covenants—Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock," (b) Liens securing Indebtedness
permitted to be incurred pursuant to clause (19) extend only to the assets
of Foreign Subsidiaries, (c) Liens securing Indebtedness permitted to be
incurred pursuant to clause (20) are solely on acquired property or the
assets of the acquired entity, as the case may be and (d) Liens securing
Indebtedness, Disqualified Stock or Preferred Stock permitted to be incurred
pursuant to clause (5) of the second paragraph under "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock" extend only to the assets so financed, purchased,
constructed or improved;
(7)
Liens
existing on the Issue Date (other than Liens in favor of the lenders under the
Senior Credit Facilities);
(8)
Liens on
property or shares of stock of a Person at the time such Person becomes a
Subsidiary;
provided
,
however
, such Liens are not created or
incurred in connection with, or in contemplation of, such other Person becoming
such a Subsidiary;
provided
,
further
,
however
, that such
Liens may not extend to any other property owned by the Issuer or any of its
Restricted Subsidiaries;
(9)
Liens on
property at the time the Issuer or a Restricted Subsidiary acquired the
property, including any acquisition by means of a merger or consolidation with
or into the Issuer or any of its Restricted Subsidiaries;
provided
,
however
, that such Liens are not created or incurred in connection with,
or in contemplation of, such acquisition;
provided
,
further
,
however
, that the Liens may not extend to any other property owned by the
Issuer or any of its Restricted Subsidiaries;
138
(10)
Liens
securing Indebtedness or other obligations of a Restricted Subsidiary owing to
the Issuer or another Restricted Subsidiary permitted to be incurred in
accordance with the covenant described under "Certain Covenants—Limitation on
Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred
Stock";
(11)
Liens
securing Hedging Obligations so long as the related Indebtedness is, and is
permitted to be under the Senior Subordinated Indenture, secured by a Lien on
the same property securing such Hedging Obligations;
(12)
Liens on
specific items of inventory or other goods and proceeds of any Person securing
such Person's obligations in respect of bankers' acceptances issued or created
for the account of such Person to facilitate the purchase, shipment or storage
of such inventory or other goods;
(13)
leases,
subleases, licenses or sublicenses granted to others in the ordinary course of
business which do not materially interfere with the ordinary conduct of the
business of the Issuer or any of its Restricted Subsidiaries and do not secure
any Indebtedness;
(14)
Liens arising
from Uniform Commercial Code financing statement filings regarding operating
leases entered into by the Issuer and its Restricted Subsidiaries in the
ordinary course of business;
(15)
Liens in
favor of the Issuer or any Guarantor;
(16)
Liens on
equipment of the Issuer or any of its Restricted Subsidiaries granted in the
ordinary course of business;
(17)
Liens on
accounts receivable and related assets incurred in connection with a Receivables
Facility;
(18)
Liens to
secure any refinancing, refunding, extension, renewal or replacement (or
successive refinancing, refunding, extensions, renewals or replacements) as a
whole, or in part, of any Indebtedness secured by any Lien referred to in the
foregoing clauses (6), (7), (8) and (9);
provided
,
however
,
that (a) such new Lien shall be limited to all or part of the same property
that secured the original Lien (plus improvements on such property), and
(b) the Indebtedness secured by such Lien at such time is not increased to
any amount greater than the sum of (i) the outstanding principal amount or,
if greater, committed amount of the Indebtedness described under clauses (6),
(7), (8) and (9) at the time the original Lien became a Permitted Lien
under the Senior Subordinated Indenture, and (ii) an amount necessary to
pay any fees and expenses, including premiums, related to such refinancing,
refunding, extension, renewal or replacement;
(19)
deposits made
in the ordinary course of business to secure liability to insurance
carriers;
(20)
other Liens
securing obligations incurred in the ordinary course of business which
obligations do not exceed $20.0 million at any one time outstanding;
(21)
Liens
securing judgments for the payment of money not constituting an Event of Default
under clause (5) under the caption "Events of Default and Remedies" so long
as such Liens are adequately bonded and any appropriate legal proceedings that
may have been duly initiated for the review of such judgment have not been
finally terminated or the period within which such proceedings may be initiated
has not expired;
(22)
Liens in
favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods in the
ordinary course of business;
(23)
Liens
(i) of a collection bank arising under Section 4-210 of the Uniform
Commercial Code, or any comparable or successor provision, on items in the
course of collection, (ii) attaching to commodity trading accounts or other
commodity brokerage accounts incurred in the ordinary course of business, and
(iii) in favor of banking institutions arising as a matter of law
encumbering deposits (including the right of set-off) and which are within the
general parameters customary in the banking industry;
139
(24)
Liens deemed
to exist in connection with Investments in repurchase agreements permitted under
"Certain Covenants—Limitation on Incurrence of Indebtedness and Issuance of
Disqualified Stock and Preferred Stock";
provided
that such Liens do not
extend to any assets other than those that are the subject of such repurchase
agreements;
(25)
Liens that
are contractual rights of set-off (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of
Indebtedness, (ii) relating to pooled deposit or sweep accounts of the
Issuer or any of its Restricted Subsidiaries to permit satisfaction of overdraft
or similar obligations incurred in the ordinary course of business of the Issuer
and its Restricted Subsidiaries or (iii) relating to purchase orders and
other agreements entered into with customers of the Issuer or any of its
Restricted Subsidiaries in the ordinary course of business;
(26)
Liens
encumbering reasonable customary initial deposits and margin deposits and
similar Liens attaching to commodity trading accounts or other brokerage
accounts incurred in the ordinary course of business and not for speculative
purposes; and
(27)
Liens arising
out of conditional sale, title retention, consignment or similar arrangements
for the sale or purchase of goods entered into by the Issuer or any Restricted
Subsidiary in the ordinary course of business.
For purposes
of this definition, the term "Indebtedness" shall be deemed to include interest
on such Indebtedness.
"
Person
"
means any individual, corporation, limited liability company, partnership, joint
venture, association, joint stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other
entity.
"
PIK
Interest
" has the meaning set forth under "Principal, Maturity and
Interest."
"
PIK
Notes
" has the meaning set forth under "Principal, Maturity and
Interest."
"
PIK
Payment
" has the meaning set forth under "Principal, Maturity and
Interest."
"
Plan of
Reorganization
" means any plan of reorganization, plan of liquidation,
agreement for composition, or other type of plan of arrangement proposed in or
in connection with any insolvency or liquidation proceeding.
"
Preferred
Stock
" means any Equity Interest with preferential rights of payment of
dividends or upon liquidation, dissolution or winding up.
"
Purchase
Money Obligations
" means any Indebtedness incurred to finance or refinance
the acquisition, leasing, construction or improvement of property (real or
personal) or assets (other than Capital Stock), and whether acquired through the
direct acquisition of such property or assets, or otherwise.
"
Qualified
Proceeds
" means the fair value of assets that are used or useful in, or
Capital Stock of any Person engaged in, a Similar Business;
provided
that
the fair market value of any such assets or Capital Stock shall be determined by
the Issuer in good faith.
"
Rating
Agencies
" means Moody's and S&P or if Moody's or S&P or both shall
not make a rating on the Senior Subordinated Notes publicly available, a
nationally recognized statistical rating agency or agencies, as the case may be,
selected by the Issuer which shall be substituted for Moody's or S&P or
both, as the case may be.
"
Receivables
Facility
" means any of one or more receivables financing facilities as
amended, supplemented, modified, extended, renewed, restated or refunded from
time to time, the Obligations of which are non-recourse (except for customary
representations, warranties, covenants and indemnities made in connection with
such facilities) to the Issuer or any of its Restricted Subsidiaries (other than
a Receivables Subsidiary) pursuant to
140
which
the Issuer or any of its Restricted Subsidiaries purports to sell its accounts
receivable to either (a) a Person that is not a Restricted Subsidiary or
(b) a Receivables Subsidiary that in turn funds such purchase by purporting
to sell its accounts receivable to a Person that is not a Restricted Subsidiary
or by borrowing from such a Person or from another Receivables Subsidiary that
in turn funds itself by borrowing from such a Person.
"
Receivables
Fees
" means distributions or payments made directly or by means of discounts
with respect to any accounts receivable or participation interest therein issued
or sold in connection with, and other fees paid to a Person that is not a
Restricted Subsidiary in connection with any Receivables Facility.
"
Receivables
Subsidiary
" means any Subsidiary formed for the purpose of facilitating or
entering into one or more Receivables Facilities, and in each case engages only
in activities reasonably related or incidental thereto.
"
Redemption
Date
" has the meaning set forth under "Optional Redemption."
"
Registration
Rights Agreement
" means the Registration Rights Agreement related to the
Senior Subordinated Notes, dated as of the Issue Date, among the Issuer, the
Guarantors and the Initial Purchasers.
"
Related
Business Assets
" means assets (other than cash or Cash Equivalents) used or
useful in a Similar Business;
provided
that any assets received by the
Issuer or a Restricted Subsidiary in exchange for assets transferred by the
Issuer or a Restricted Subsidiary will not be deemed to be Related Business
Assets if they consist of securities of a Person, unless upon receipt of the
securities of such Person, such Person would become a Restricted Subsidiary.
"Representative"
means, with respect to a person, any trustee, agent or representative (if any)
for an issue of Senior Indebtedness of such Person.
"
Restricted
Investment
" means an Investment other than a Permitted Investment.
"
Restricted
Subsidiary
" means, at any time, any direct or indirect Subsidiary of the
Issuer (including any Foreign Subsidiary) that is not then an Unrestricted
Subsidiary;
provided
,
however
, that upon an Unrestricted
Subsidiary's ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be
included in the definition of "Restricted Subsidiary."
"
S&P
"
means Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., and any successor to its rating agency business.
"
Sale and
Lease-Back Transaction
" means any arrangement providing for the leasing by
the Issuer or any of its Restricted Subsidiaries of any real or tangible
personal property, which property has been or is to be sold or transferred by
the Issuer or such Restricted Subsidiary to a third Person in contemplation of
such leasing.
"
SEC
"
means the U.S. Securities and Exchange Commission.
"
Secured
Indebtedness
" means any Indebtedness of the Issuer or any of its Restricted
Subsidiaries secured by a Lien.
"
Securities
Act
" means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.
"
Senior
Credit Facilities
" means the ABL Facility and the General Credit
Facility.
"
Senior
Indebtedness
" means:
(1)
all
Indebtedness of the Issuer or any Guarantor outstanding under the Senior Credit
Facilities or the Senior Notes and related Guarantees (including interest
accruing on or after the filing of any petition in bankruptcy or similar
proceeding or for reorganization of the Issuer or any Guarantor (at the rate
provided for in the
141
documentation
with respect thereto, regardless of whether or not a claim for post-filing
interest is allowed in such proceedings)), and any and all other fees, expense
reimbursement obligations, indemnification amounts, penalties, and other amounts
(whether existing on the Issue Date or thereafter created or incurred) and all
obligations of the Issuer or any Guarantor to reimburse any bank or other Person
in respect of amounts paid under letters of credit, acceptances or other similar
instruments;
(2)
all Hedging
Obligations (and guarantees thereof) owing to a Lender (as defined in the Senior
Credit Facilities) or any Affiliate of such Lender (or any Person that was a
Lender or an Affiliate of such Lender at the time the applicable agreement
giving rise to such Hedging Obligation was entered into);
provided
that
such Hedging Obligations are permitted to be incurred under the terms of the
Senior Subordinated Indenture;
(3)
any other
Indebtedness of the Issuer or any Guarantor permitted to be incurred under the
terms of the Senior Subordinated Indenture, unless the instrument under which
such Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Senior Subordinated Notes or any related
Guarantee; and
(4)
all
Obligations with respect to the items listed in the preceding clauses (1),
(2) and (3);
provided
,
however
,
that Senior Indebtedness shall not include:
(a)
any
obligation of such Person to the Issuer or any of its Subsidiaries;
(b)
any liability
for federal, state, local or other taxes owed or owing by such Person;
(c)
any accounts
payable or other liability to trade creditors arising in the ordinary course of
business;
(d)
any
Indebtedness or other Obligation of such Person which is subordinate or junior
in any respect to any other Indebtedness or other Obligation of such Person;
or
(e)
that portion
of any Indebtedness which at the time of incurrence is incurred in violation of
the Senior Subordinated Indenture;
provided that
such Indebtedness shall
be deemed not to have been incurred in violation of the Senior Subordinated
Indenture for purposes of this clause if such Indebtedness consists of
Designated Senior Indebtedness, and the holders of such Indebtedness or their
agent or representative (a) had no actual knowledge at the time of
incurrence that the incurrence of such Indebtedness violated the Senior
Subordinated Indenture and (b) shall have received an Officer's Certificate
to the effect that the incurrence of such Indebtedness does not violate the
provisions of the Senior Subordinated Indenture.
"
Senior
Indenture
" means the Senior Indenture dated as of the Issue Date, among the
Issuer, the Guarantors, as guarantors and the Trustee, as trustee, pursuant to
which the Senior Notes are issued.
"
Senior
Notes
" means the $1,175,000,000 aggregate principal amount of 10.625% senior
notes due 2015 issued by the Issuer under the Senior Indenture on the Issue
Date.
"
Senior
Subordinated Exchange Notes
" means any notes issued in exchange for the
Senior Subordinated Notes pursuant to the Registration Rights Agreement or
similar agreement.
"
Senior
Subordinated Indebtedness
" means:
(1)
with respect
to the Issuer, Indebtedness which ranks equal in right of payment to the Senior
Subordinated Notes, and
(2)
with respect
to any Guarantor, Indebtedness which ranks equal in right of payment to the
Guarantee of such entity of the Senior Subordinated Notes.
142
"
Significant
Subsidiary
" means any Restricted Subsidiary that would be a "significant
subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such regulation is in effect on
the Issue Date.
"
Similar
Business
" means any business conducted or proposed to be conducted by the
Issuer and its Restricted Subsidiaries on the Issue Date or any business that is
similar, reasonably related, incidental or ancillary thereto.
"
Special
Interest
" means all additional interest then owing pursuant to the
Registration Rights Agreement.
"
Sponsor
Management Agreement
" means the management agreement between certain of the
management companies associated with the Investors and the Issuer.
"
Subordinated
Indebtedness
" means, with respect to the Senior Subordinated Notes,
(1)
any
Indebtedness of the Issuer which is by its terms subordinated in right of
payment to the Senior Subordinated Notes, and
(2)
any
Indebtedness of any Guarantor which is by its terms subordinated in right of
payment to the Guarantee of such entity of the Senior Subordinated Notes.
"
Subsidiary
"
means, with respect to any Person:
(1)
any
corporation, association, or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of which more than
50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time of determination owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person or a combination thereof or is consolidated under
GAAP with such Person at such time; and
(2)
any
partnership, joint venture, limited liability company or similar entity of
which
(x)
more
than 50% of the capital accounts, distribution rights, total equity and voting
interests or general or limited partnership interests, as applicable, are owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof whether in the form
of membership, general, special or limited partnership or otherwise, and
(y)
such
Person or any Restricted Subsidiary of such Person is a controlling general
partner or otherwise controls such entity.
"
Total
Assets
" means the total assets of the Issuer and its Restricted Subsidiaries
on a consolidated basis, as shown on the most recent consolidated balance sheet
of the Issuer or such other Person as may be expressly stated.
"
Transactions
"
means the acquisition of all of the outstanding capital stock of Dollar General
Corporation, including the payment of the acquisition consideration in
connection therewith, the equity investment by the Investors and members of
management, the issuance of the Senior Notes and the Senior Subordinated Notes,
the tender offer and consent solicitation for any and all of the outstanding
8
5
/
8
% Notes due 2010 of Dollar General Corporation and the
execution of, and borrowings on the Issue Date under, the Senior Credit
Facilities and, the pledge and security arrangements in connection with the
foregoing, in each case as in effect on the Issue Date, and the related
transactions described in this prospectus under the section thereof entitled
"The Transactions."
"
Treasury
Rate
" means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity
(as compiled and published in the most recent Federal Reserve Statistical
Release H.15 (519) that has become publicly available at least two Business
Days prior to the Redemption Date (or, if such Statistical Release is no longer
published, any publicly available source of similar
143
market
data)) most nearly equal to the period from the Redemption Date to July 15,
2012;
provided
,
however
, that if the period from the Redemption
Date to July 15, 2012 is less than one year, the weekly average yield on
actually traded United States Treasury securities adjusted to a constant
maturity of one year will be used.
"
Trust
Indenture Act
" means the Trust Indenture Act of 1939, as amended (15 U.S.C
§§ 77aaa-777bbbb).
"
Unrestricted
Subsidiary
" means:
(1)
any
Subsidiary of the Issuer which at the time of determination is an Unrestricted
Subsidiary (as designated by the Issuer, as provided below); and
(2)
any
Subsidiary of an Unrestricted Subsidiary.
The Issuer
may designate any Subsidiary of the Issuer (including any existing Subsidiary
and any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Equity
Interests or Indebtedness of, or owns or holds any Lien on, any property of, the
Issuer or any Subsidiary of the Issuer (other than solely any Subsidiary of the
Subsidiary to be so designated);
provided
that:
(1)
any
Unrestricted Subsidiary must be an entity of which the Equity Interests entitled
to cast at least a majority of the votes that may be cast by all Equity
Interests having ordinary voting power for the election of directors or Persons
performing a similar function are owned, directly or indirectly, by the
Issuer;
(2)
such
designation complies with the covenants described under "Certain
Covenants—Limitation on Restricted Payments"; and
(3)
each of:
(a)
the
Subsidiary to be so designated; and
(b)
its
Subsidiaries
has not at
the time of designation, and does not thereafter, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Issuer or any Restricted Subsidiary.
The Issuer
may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided
that, immediately after giving effect to such designation, no
Default shall have occurred and be continuing and either:
(1)
the Issuer
could incur at least $1.00 of additional Indebtedness pursuant to the Fixed
Charge Coverage Ratio test described in the first paragraph under "Certain
Covenants—Limitation on Incurrence of Indebtedness and Issuance of Disqualified
Stock and Preferred Stock"; or
(2)
the Fixed
Charge Coverage Ratio for the Issuer and its Restricted Subsidiaries would be
greater than such ratio for the Issuer and its Restricted Subsidiaries
immediately prior to such designation, in each case on a
pro forma
basis
taking into account such designation.
The Issuer
shall notify the Trustee of any such designation by promptly filing with the
Trustee a copy of the resolution of the board of directors of the Issuer or any
committee thereof giving effect to such designation and an Officer's Certificate
certifying that such designation complied with the foregoing provisions.
"
Voting
Stock
" of any Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the board of directors
of such Person.
144
"
Weighted
Average Life to Maturity
" means, when applied to any Indebtedness,
Disqualified Stock or Preferred Stock, as the case may be, at any date, the
quotient obtained by dividing:
(1)
the sum of
the products of the number of years from the date of determination to the date
of each successive scheduled principal payment of such Indebtedness or
redemption or similar payment with respect to such Disqualified Stock or
Preferred Stock multiplied by the amount of such payment; by
(2)
the sum of
all such payments.
"
Wholly-Owned
Subsidiary
" of any Person means a Subsidiary of such Person, 100% of the
outstanding Equity Interests of which (other than directors' qualifying shares)
shall at the time be owned by such Person or by one or more Wholly-Owned
Subsidiaries of such Person.
145
BOOK-ENTRY SETTLEMENT AND CLEARANCE
The global notes
The notes are
represented by global notes in definitive, fully registered form, without
interest coupons (collectively, the "global notes").
The global
notes have been deposited with the Trustee as custodian for DTC and registered
in the name of Cede & Co., as nominee of DTC.
Ownership of
beneficial interests in each global note is limited to persons who have accounts
with DTC ("DTC participants") or persons who hold interests through DTC
participants. We expect that under procedures established by DTC:
•
upon deposit
of each global note with DTC's custodian, DTC will credit portions of the
principal amount of the global note to the accounts of the DTC participants;
and
•
ownership of
beneficial interests in each global note will be shown on, and transfer of
ownership of those interests will be effected only through, records maintained
by DTC (with respect to interests of DTC participants) and the records of DTC
participants (with respect to other owners of beneficial interests in the global
note).
Beneficial
interests in the global notes may not be exchanged for notes in physical,
certificated form except in the limited circumstances described below.
Book-entry procedures for the
global notes
All interests
in the global notes will be subject to the operations and procedures of DTC,
Euroclear and Clearstream. We provide the following summaries of those
operations and procedures solely for the convenience of investors. The
operations and procedures of each settlement system are controlled by that
settlement system and may be changed at any time. Neither we nor the initial
purchasers are responsible for those operations or procedures.
DTC has
advised us that it is:
•
a limited
purpose trust company organized under the laws of the State of New York;
•
a "banking
organization" within the meaning of the New York State Banking Law;
•
a member of
the Federal Reserve System;
•
a "clearing
corporation" within the meaning of the Uniform Commercial Code; and
•
a "clearing
agency" registered under Section 17A of the Exchange Act.
DTC was
created to hold securities for its participants and to facilitate the clearance
and settlement of securities transactions between its participants through
electronic book-entry changes to the accounts of its participants. DTC's
participants include securities brokers and dealers; banks and trust companies;
clearing corporations and other organizations. Indirect access to DTC's system
is also available to others such as banks, brokers, dealers and trust companies;
these indirect participants clear through or maintain a custodial relationship
with a DTC participant, either directly or indirectly. Investors who are not DTC
participants may beneficially own securities held by or on behalf of DTC only
through DTC participants or indirect participants in DTC.
So long as
DTC's nominee is the registered owner of a global note, that nominee will be
considered the sole owner or holder of the notes represented by that global note
for all purposes under the applicable indenture. Except as provided below,
owners of beneficial interests in a global note:
146
•
will not be
entitled to have notes represented by the global note registered in their
names;
•
will not
receive or be entitled to receive physical, certificated notes; and
•
will not be
considered the owners or holders of the notes under the applicable indenture for
any purpose, including with respect to the giving of any direction, instruction
or approval to the Trustee under the applicable indenture.
As a result,
each investor who owns a beneficial interest in a global note must rely on the
procedures of DTC to exercise any rights of a holder of notes under the
applicable indenture (and, if the investor is not a participant or an indirect
participant in DTC, on the procedures of the DTC participant through which the
investor owns its interest).
Payments of
principal, premium (if any) and interest with respect to the notes represented
by a global note will be made by the Trustee to DTC's nominee as the registered
holder of the global note. Neither we nor the Trustee will have any
responsibility or liability for the payment of amounts to owners of beneficial
interests in a global note, for any aspect of the records relating to or
payments made on account of those interests by DTC, or for maintaining,
supervising or reviewing any records of DTC relating to those interests.
Payments by
participants and indirect participants in DTC to the owners of beneficial
interests in a global note will be governed by standing instructions and
customary industry practice and will be the responsibility of those participants
or indirect participants and DTC.
Transfers
between participants in DTC will be effected under DTC's procedures and will be
settled in same-day funds. Transfers between participants in Euroclear or
Clearstream will be effected in the ordinary way under the rules and operating
procedures of those systems.
Cross-market
transfers between DTC participants, on the one hand, and Euroclear or
Clearstream participants, on the other hand, will be effected within DTC through
the DTC participants that are acting as depositaries for Euroclear and
Clearstream. To deliver or receive an interest in a global note held in a
Euroclear or Clearstream account, an investor must send transfer instructions to
Euroclear or Clearstream, as the case may be, under the rules and procedures of
that system and within the established deadlines of that system. If the
transaction meets its settlement requirements, Euroclear or Clearstream, as the
case may be, will send instructions to its DTC depositary to take action to
effect final settlement by delivering or receiving interests in the relevant
global notes in DTC, and making or receiving payment under normal procedures for
same-day funds settlement applicable to DTC. Euroclear and Clearstream
participants may not deliver instructions directly to the DTC depositaries that
are acting for Euroclear or Clearstream.
Because of
time zone differences, the securities account of a Euroclear or Clearstream
participant that purchases an interest in a global note from a DTC participant
will be credited on the business day for Euroclear or Clearstream immediately
following the DTC settlement date. Cash received in Euroclear or Clearstream
from the sale of an interest in a global note to a DTC participant will be
received with value on the DTC settlement date but will be available in the
relevant Euroclear or Clearstream cash account as of the business day for
Euroclear or Clearstream following the DTC settlement date.
DTC,
Euroclear and Clearstream have agreed to the above procedures to facilitate
transfers of interests in the global notes among participants in those
settlement systems. However, the settlement systems are not obligated to perform
these procedures and may discontinue or change these procedures at any time.
Neither we nor the Trustee will have any responsibility for the performance by
DTC, Euroclear or Clearstream or their participants or indirect participants of
their obligations under the rules and procedures governing their operations.
147
Certificated
notes
Notes in
physical, certificated form will be issued and delivered to each person that DTC
identifies as a beneficial owner of the related notes only if:
•
DTC notifies
us at any time that it is unwilling or unable to continue as depositary for the
global notes and a successor depositary is not appointed within
90 days;
•
DTC ceases
to be registered as a clearing agency under the Exchange Act and a successor
depositary is not appointed within 90 days;
•
we, at our
option, notify the Trustee that we elect to cause the issuance of certificated
notes; or
•
certain
other events provided in the applicable indenture should occur.
148
CERTAIN U.S. FEDERAL INCOME AND ESTATE TAX CONSEQUENCES
The following
is a summary of certain U.S. federal income and, in the case of non-U.S. holders
(as defined below), estate tax consequences of the purchase, ownership and
disposition of the notes as of the date hereof. Except where noted, this summary
deals only with notes that are held as capital assets.
As used
herein, a "U.S. holder" means a beneficial owner of the notes that is for U.S.
federal income tax purposes any of the following:
•
an
individual citizen or resident of the United States;
•
a
corporation (or any other entity treated as a corporation for U.S. federal
income tax purposes) created or organized in or under the laws of the United
States, any state thereof or the District of Columbia;
•
an estate
the income of which is subject to U.S. federal income taxation regardless of its
source; or
•
a trust if
it (1) is subject to the primary supervision of a court within the United
States and one or more United States persons have the authority to control all
substantial decisions of the trust or (2) has a valid election in effect
under applicable United States Treasury regulations to be treated as a United
States person.
The term
"non-U.S. holder" means a beneficial owner of the notes (other than a
partnership or any other entity treated as a partnership for U.S. federal income
tax purposes) that is not a U.S. holder.
This summary
does not represent a detailed description of the U.S. federal income tax
consequences applicable to you if you are a person subject to special tax
treatment under the U.S. federal income tax laws, including, without
limitation:
•
a dealer in
securities or currencies;
•
a financial
institution;
•
a regulated
investment company;
•
a real
estate investment trust;
•
a tax-exempt
organization;
•
an insurance
company;
•
a person
holding the notes as part of a hedging, integrated, conversion or constructive
sale transaction or a straddle;
•
a trader in
securities that has elected the mark-to-market method of accounting for your
securities;
•
a person
liable for alternative minimum tax;
•
a
partnership or other pass-through entity for U.S. federal income tax
purposes;
•
a U.S.
holder whose "functional currency" is not the U.S. dollar;
•
a controlled
foreign corporation;
149
•
a passive
foreign investment company; or
•
a U.S.
expatriate.
This summary
is based on the Internal Revenue Code of 1986, as amended (the "Code"), United
States Treasury regulations, administrative rulings and judicial decisions as of
the date hereof. Those authorities may be changed, possibly on a retroactive
basis, so as to result in U.S. federal income and estate tax consequences
different from those summarized below.
If a
partnership (including any entity classified as a partnership for U.S. federal
income tax purposes) holds notes, the tax treatment of a partner will generally
depend upon the status of the partner and the activities of the partnership. If
you are a partnership or a partner in a partnership holding notes, you should
consult your own tax advisors.
This summary
does not represent a detailed description of the U.S. federal income and estate
tax consequences to you in light of your particular circumstances and does not
address the effects of any state, local or non-United States tax laws. It is not
intended to be, and should not be construed to be, legal or tax advice to any
particular purchaser of notes.
If you are considering the purchase of notes,
you should consult your own tax advisors concerning the particular U.S. federal
income and estate tax consequences to you of the ownership of the notes, as well
as the consequences to you arising under the laws of any other taxing
jurisdiction.
Certain Tax Consequences to
U.S. Holders
The following
is a summary of certain U.S. federal income tax consequences that will apply to
U.S. holders of the notes.
Senior Notes
Payments of Interest on
Senior Notes
Stated
interest on a senior note will generally be taxable to you as ordinary income at
the time it is paid or accrued in accordance with your method of accounting for
U.S. federal income tax purposes.
Market Discount
If you
purchase a senior note for an amount that is less than its principal amount, the
amount of the difference will be treated as "market discount" for U.S. federal
income tax purposes, unless that difference is less than a specified de minimis
amount. Under the market discount rules, you will be required to treat any
principal payment on, or any gain on the sale, exchange, retirement or other
disposition of, a senior note as ordinary income to the extent of the market
discount that you have not previously included in income and are treated as
having accrued on the senior note at the time of the payment or disposition.
In addition,
you may be required to defer, until the maturity of the senior note or its
earlier disposition in a taxable transaction, the deduction of all or a portion
of the interest expense on any indebtedness attributable to the senior note. You
may elect, on a note-by-note basis, to deduct the deferred interest expense in a
tax year prior to the year of disposition. You should consult your own tax
advisors before making this election.
Any market
discount will be considered to accrue ratably during the period from the date of
acquisition to the maturity date of the senior note, unless you elect to accrue
on a constant interest method. You may elect to include market discount in
income currently as it accrues, on either a ratable or constant interest method,
in which case the rule described above regarding deferral of interest deductions
will not apply.
150
Amortizable
Bond Premium
If you
purchase a senior note for an amount in excess of its principal amount, you will
be considered to have purchased the senior note at a "premium." You generally
may elect to amortize the premium over the remaining term of the senior note on
a constant yield method as an offset to interest when includible in income under
your regular accounting method. If you have elected to amortize the premium, the
amortizable bond premium will reduce interest income. If you do not elect to
amortize bond premium, that premium will decrease the gain or increase the loss
you would otherwise recognize on disposition of the senior note.
Sale, Exchange, Retirement,
or Other Taxable Disposition of Senior Notes
Upon the
sale, exchange, retirement, or other taxable disposition of a senior note, you
generally will recognize gain or loss equal to the difference between the amount
realized upon the sale, exchange, retirement or other taxable disposition (less
an amount equal to any accrued but unpaid interest, which will be taxable as
interest income as discussed above to the extent not previously included in
income by you) and the adjusted tax basis of the senior note. Your adjusted tax
basis in a senior note will, in general, be your cost for that senior note
increased by market discount previously included in income and reduced by any
amortized premium.
Except as
described above with respect to market discount, any gain or loss will be
capital gain or loss and will be long-term capital gain or loss if at the time
of sale, exchange, retirement or other disposition, the senior note has been
held for more than one year.. Capital gains of noncorporate U.S. holders
(including individuals) derived in respect of capital assets held for more than
one year are eligible for reduced rates of taxation. The deductibility of
capital losses is subject to limitations.
Senior Subordinated
Notes
Original Issue
Discount
Because the
senior subordinated notes provide us with the option to pay PIK Interest in lieu
of paying cash interest for any interest payment period commencing on or after
July 15, 2007 through July 15, 2011, the senior subordinated notes are
treated as issued with original issue discount ("OID"), as described below. The
issuance of PIK Notes is generally not treated as a payment of interest.
Instead, a senior subordinated note and any PIK Notes issued in respect of PIK
Interest thereon are treated as a single debt instrument under the OID rules.
For U.S. federal income tax purposes, increasing the principal amount of the
senior subordinated notes will generally be treated the same as the issuance of
PIK Notes.
The senior
subordinated notes are treated as issued with OID in an amount equal to the
difference between their "stated redemption price at maturity" (the sum of all
payments to be made on the senior subordinated notes other than "qualified
stated interest") and their "issue price."
The "issue
price" of the senior subordinated notes is the first price at which a
substantial amount of such notes were sold (other than to an underwriter,
placement agent or wholesaler). The term "qualified stated interest" means
stated interest that is unconditionally payable in cash or in property (other
than debt instruments of the issuer) at least annually at a single fixed rate
or, subject to certain conditions, based on one or more interest indices.
Because we have the option for any interest payment period commencing on or
after January 15, 2008, through July 15, 2011 to make interest
payments in PIK Interest instead of paying cash, the stated interest payments on
the senior subordinated notes are not qualified stated interest. You must
generally include OID in your gross income as it accrues over the term of the
senior subordinated notes without regard to your regular method of accounting
for U.S. federal income tax purposes and in advance of the receipt of cash
payments attributable to that income.
The amount of
OID that you must include in income will generally equal the sum of the "daily
portions" of OID with respect to the senior subordinated note for each day
during the taxable year or portion of the taxable year in which you held such
senior subordinated note ("accrued OID"). The daily portion is determined by
allocating to each day in any "accrual period" a pro rata portion of the OID
allocable to that accrual period. The "accrual period" for a senior subordinated
note may be of any length and may vary in length over the term of the senior
subordinated
151
note,
provided that each accrual period is no longer than one year and each scheduled
payment of principal or interest occurs on the first day or the final day of an
accrual period. The amount of OID allocable to any accrual period other than the
final accrual period is an amount equal to the product of the senior
subordinated note's adjusted issue price at the beginning of such accrual period
and its yield to maturity (determined on the basis of compounding at the close
of each accrual period and properly adjusted for the length of the accrual
period). OID allocable to a final accrual period is the difference between the
amount payable at maturity and the adjusted issue price at the beginning of the
final accrual period. The "yield to maturity" of a senior subordinated note is
the discount rate that causes the present value of all payments on the senior
subordinated note as of its original issue date to equal the issue price of such
senior subordinated note. For purposes of determining the yield to maturity, the
assumption is that we will pay interest in cash and not exercise the option to
pay PIK Interest.
The "adjusted
issue price" of a senior subordinated note at the beginning of any accrual
period is equal to its issue price increased by the accrued OID for each prior
accrual period determined without regard to the amortization of any acquisition
or bond premium, as described below, and reduced by any cash payments previously
made on such senior subordinated note.
If we in fact
pay interest in cash on the senior subordinated notes, you will not be required
to adjust your OID inclusions. Each payment made in cash under a senior
subordinated note will be treated first as a payment of any accrued OID that has
not been allocated to prior payments and second as a payment of principal. You
generally will not be required to include separately in income cash payments
received on the senior subordinated notes to the extent such payments constitute
payments of previously accrued OID or payments of principal.
If, for any
interest payment period, we exercise our option to pay interest in the form of
PIK Interest (or half in cash and half in PIK Interest), your OID calculation
for future periods will be adjusted by treating the senior subordinated note as
if it had been retired and then reissued for an amount equal to its adjusted
issue price on the date preceding the first date of such interest payment
period, and recalculating the yield to maturity of the reissued senior
subordinated note by treating the amount of PIK Interest (and of any prior PIK
Interest) as a payment that will be made on the maturity date of such senior
subordinated note.
The rules
regarding OID are complex and the rules described above may not apply in all
cases. Accordingly, you should consult your own tax advisors regarding their
application.
Market Discount
If you
purchase a senior subordinated note for an amount that is less than its adjusted
issue price, the amount of the difference will be treated as market discount for
U.S. federal income tax purposes, unless that difference is less than a
specified de minimis amount. Under the market discount rules, you will be
required to treat any principal payment on, or any gain on the sale, exchange,
retirement or other disposition of, a senior subordinated note as ordinary
income to the extent of the market discount that you have not previously
included in income and are treated as having accrued on the senior subordinated
note at the time of the payment or disposition.
In addition,
you may be required to defer, until the maturity of the senior subordinated note
or its earlier disposition in a taxable transaction, the deduction of all or a
portion of the interest expense on any indebtedness attributable to the senior
subordinated note. You may elect, on a note-by-note basis, to deduct the
deferred interest expense in a tax year prior to the year of disposition. You
should consult your own tax advisors before making this election.
Any market
discount will be considered to accrue ratably during the period from the date of
acquisition to the maturity date of the senior subordinated note, unless you
elect to accrue on a constant interest method. You may elect to include market
discount in income currently as it accrues, on either a ratable or constant
interest method, in which case the rule described above regarding deferral of
interest deductions will not apply.
152
Acquisition
Premium, Amortizable Bond Premium
If you
purchase a senior subordinated note for an amount that is greater than its
adjusted issue price but equal to or less than the sum of all amounts payable on
the senior subordinated note after the purchase date, you will be considered to
have purchased that senior subordinated note at an "acquisition premium." Under
the acquisition premium rules, the amount of OID that you must include in gross
income with respect to the senior subordinated note for any taxable year will be
reduced by the portion of the acquisition premium properly allocable to that
year.
If you
purchase a senior subordinated note for an amount in excess of the sum of all
amounts payable on the senior subordinated note after the purchase date, you
will be considered to have purchased the senior subordinated note at a premium
and you will not be required to include any OID in income. You generally may
elect to amortize the premium over the remaining term of the senior subordinated
note on a constant yield method as an offset to interest when includible in
income under your regular accounting method. If you have elected to amortize the
premium, the amortizable bond premium will reduce interest income. If you do not
elect to amortize bond premium, that premium will decrease the gain or increase
the loss you would otherwise recognize on disposition of the senior subordinated
note.
Sale, Exchange, Retirement,
or Other Taxable Disposition of Senior Subordinated Notes
Subject to
the discussion below regarding the Mandatory Principal Redemption, upon the
sale, exchange, retirement, or other taxable disposition of a senior
subordinated note (or a PIK Note), you generally will recognize gain or loss
equal to the difference between the amount realized upon the sale, exchange,
retirement, or other taxable disposition and the adjusted tax basis of the
senior subordinated note (or the PIK Note). Your adjusted tax basis in a senior
subordinated note will, in general, be your cost for the senior subordinated
note, increased by OID or market discount previously included in income, and
reduced by any amortized premium and cash payments on the senior subordinated
note. Although not free from doubt, your adjusted tax basis in a senior
subordinated note should be allocated between the original senior subordinated
note and any PIK Notes received in respect of PIK Interest thereon in proportion
to their relative principal amounts. Your holding period in any PIK Note
received in respect of PIK Interest would likely be identical to your holding
period for the original senior subordinated note with respect to which the PIK
Note was received.
Except as
described above with respect to market discount, any gain or loss you recognize
will be capital gain or loss and will be long-term capital gain or loss if at
the time of sale, exchange, retirement or other disposition, the senior
subordinated note has been held for more than one year. Capital gains of
noncorporate U.S. holders (including individuals) derived in respect of capital
assets held for more than one year are eligible for reduced rates of taxation.
The deductibility of capital losses is subject to limitations.
Payments
received by a U.S. holder upon any Mandatory Principal Redemption of a portion
of a senior subordinated note will be treated as tax free payments of a portion
of the then accrued OID with respect to such senior subordinated note in its
entirety (including the portion of the senior subordinated note not
redeemed).
Certain Tax Consequences to
Non-U.S. Holders
The following
is a summary of certain U.S. federal income and estate tax consequences that
will apply to non-U.S. holders of the notes.
153
U.S.
Federal Withholding Tax
The 30% U.S.
federal withholding tax will not apply to any payment of interest (which for
purposes of this discussion includes OID) on the notes under the "portfolio
interest rule," provided that:
•
interest
paid on the notes (including OID) is not effectively connected with your conduct
of a trade or business in the United States;
•
you do not
actually (or constructively) own 10% or more of the total combined voting power
of all classes of our voting stock within the meaning of the Code and applicable
United States Treasury regulations;
•
you are not
a controlled foreign corporation that is related to us actually or
constructively through stock ownership;
•
you are not
a bank whose receipt of interest on the notes (including OID) is described in
Section 881(c)(3)(A) of the Code; and
•
either
(a) you provide your name and address on an Internal Revenue Service
("IRS") Form W-8BEN (or other applicable form), and certify, under
penalties of perjury, that you are not a United States person as defined under
the Code or (b) you hold your notes through certain foreign intermediaries
and satisfy the certification requirements of applicable United States Treasury
regulations. Special certification rules apply to non-U.S. holders that are
pass-through entities rather than corporations or individuals.
If you cannot
satisfy the requirements described above, payments of interest (including OID)
made to you will be subject to the 30% U.S. federal withholding tax, unless you
provide us (or our paying agent) with a properly executed:
•
IRS
Form W-8BEN (or other applicable form) certifying an exemption from or
reduction in withholding under the benefit of an applicable income tax treaty;
or
•
IRS
Form W-8ECI (or other applicable form) certifying interest (including OID)
paid on the notes is not subject to withholding tax because it is effectively
connected with your conduct of a trade or business in the United States (as
discussed below under "—U.S. Federal Income Tax").
The 30% U.S.
federal withholding tax generally will not apply to any payment of principal or
gain that you realize on the sale, exchange, retirement or other disposition of
a note; provided, however, that payments received by a non-U.S. holder upon the
Mandatory Principal Redemption of a portion of a senior subordinated note will
be treated as payments of a portion of the then accrued OID with respect to such
senior subordinated note in its entirety (including the portion of the senior
subordinated note not redeemed) and therefore will possibly be subject to the
30% U.S. federal withholding tax.
U.S. Federal Income
Tax
If you are
engaged in a trade or business in the United States and interest (including OID)
on the notes is effectively connected with the conduct of that trade or business
(and, if required by an applicable income tax treaty, is attributable to a
United States permanent establishment), then you will be subject to U.S. federal
income tax on that interest (including OID) on a net income basis (although you
will be exempt from the 30% U.S. federal withholding tax, provided the
certification requirements discussed above in "—U.S. Federal Withholding Tax"
are satisfied) in generally the same manner as if you were a United States
person as defined under the Code. In addition, if you are a foreign corporation,
you may be subject to a branch profits tax equal to 30% (or lower applicable
income tax treaty rate) of such interest (including OID), subject to
adjustments.
154
Any
gain realized on the disposition of a note generally will not be subject to U.S.
federal income tax unless:
•
the gain is
effectively connected with your conduct of a trade or business in the United
States (and, if required by an applicable income tax treaty, is attributable to
a United States permanent establishment); or
•
you are an
individual who is present in the United States for 183 days or more in the
taxable year of that disposition, and certain other conditions are met.
U.S. Federal Estate
Tax
Your estate
will not be subject to U.S. federal estate tax on notes beneficially owned by
you at the time of your death, provided that any payment to you on the notes
would be eligible for exemption from the 30% U.S. federal withholding tax under
the "portfolio interest rule" described above under "—U.S. Federal Withholding
Tax" without regard to the statement requirement described in the fifth bullet
point of that section.
Information Reporting and
Backup Withholding
U.S. Holders
In general,
information reporting requirements will apply to certain payments of principal
and interest (including OID) paid on the notes and to the proceeds of the sale
or other disposition of a note paid to you (unless you are an exempt recipient
such as a corporation). Backup withholding may apply to such payments if you
fail to provide a taxpayer identification number or a certification that you are
not subject to backup withholding.
Backup
withholding is not an additional tax and any amounts withheld under the backup
withholding rules may be allowed as a refund or a credit against your U.S.
federal income tax liability provided the required information is timely
furnished to the IRS.
Non-U.S.
Holders
Generally, we
must report to the IRS and to you the amount of interest (including OID) paid to
you and the amount of tax, if any, withheld with respect to those payments.
Copies of the information returns reporting such interest payments and any
withholding may also be made available to the tax authorities in the country in
which you reside under the provisions of an applicable income tax treaty.
In general,
you will not be subject to backup withholding with respect to payments of
interest (including OID) on the notes that we make to you provided that we do
not have actual knowledge or reason to know that you are a United States person
as defined under the Code, and we have received from you the required
certification that you are a non-U.S. holder described above in the fifth bullet
point under "—Certain Tax Consequences to Non-U.S. Holders—U.S. Federal
Withholding Tax."
Information
reporting and, depending on the circumstances, backup withholding will apply to
the proceeds of a sale or other disposition (including a redemption) of notes
within the United States or conducted through certain United States-related
financial intermediaries, unless you certify to the payor under penalties of
perjury that you are a non-U.S. holder (and the payor does not have actual
knowledge or reason to know that you are a United States person as defined under
the Code), or you otherwise establish an exemption.
Backup
withholding is not an additional tax and any amounts withheld under the backup
withholding rules may be allowed as a refund or a credit against your U.S.
federal income tax liability provided the required information is timely
furnished to the IRS.
155
CERTAIN ERISA CONSIDERATIONS
The notes may
be purchased and held by an employee benefit plan subject to Title I of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or by an
individual retirement account or other plan subject to Section 4975 of the
Internal Revenue Code of 1986, as amended ("Code"). A fiduciary of an employee
benefit plan subject to ERISA must, however, determine that the purchase and
holding of a note is consistent with its fiduciary duties under ERISA. The
fiduciary of an ERISA plan, as well as any other prospective investor subject to
Section 4975 of the Code or any similar law, must also determine that the
purchase and holding of notes will not result in a non-exempt prohibited
transaction as defined in Section 406 of ERISA or Section 4975 of the
Code or a violation of any applicable similar law. Each purchaser and subsequent
transferee acquiring or holding a note or any interest therein with the assets
of a plan that is subject to Section 406 of ERISA, Section 4975 of the
Code or any similar law ("Plan Investor") will be deemed to have represented to
us, by its acquisition or holding of the note or any interest therein, that its
acquisition and holding of the notes does not constitute or give rise to a
non-exempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code, or a violation of any applicable similar law. The
sale of any notes to any Plan Investor is in no respect a representation by us
or any of our affiliates or representatives that such an investment meets all
relevant legal requirements with respect to investments by Plan Investors
generally or any particular Plan Investor, or that such an investment is
appropriate for Plan Investors generally or any particular Plan Investor.
156
PLAN OF DISTRIBUTION
This
prospectus is to be used by Goldman, Sachs & Co. and its
affiliates in connection with offers and sales of the notes in market-making
transactions effected from time to time.
Goldman,
Sachs & Co. and its affiliates may act as principal or agent in
such transactions, including as agent for the counterparty when acting as
principal or as agent for both counterparties, and may receive compensation in
the form of discounts and commissions, including from both counterparties, when
it acts as agents for both. Such sales will be made at prevailing market prices
at the time of sale, at prices related thereto or at negotiated prices. We will
not receive any of the proceeds from such sales.
As of
March 17, 2009 entities affiliated with Goldman, Sachs & Co.
indirectly held approximately 21.57% of our common stock.  See the section
of our fiscal 2008 Form 10-K captioned ""Security Ownership of Certain
Beneficial Owners and Management and Related Stockholder Matters." Pursuant to
the operating agreement of Buck Holdings, LLC, certain of such entities have a
right to designate a specified number of individuals to serve on the Board of
Directors of Dollar General Corporation. See the section of our fiscal 2008
Form 10-K captioned "Directors, Executive Officers and Corporate
Governance—Procedures for Shareholders to Nominate Directors; Arrangements to
Serve as Directors." Goldman, Sachs & Co. and its respective
affiliates have and may in the future engage in commercial and/or investment
banking transactions with Dollar General and its affiliates. Goldman,
Sachs & Co. acted as an initial purchaser in connection with the
original sale of the notes on July 6, 2007 and received a customary
underwriting discount in connection with that transaction. Goldman,
Sachs & Co. and its respective affiliates currently own, and may
from time to time trade, the notes for their own accounts in connection with
their principal activities. Such sales may be made pursuant to this prospectus
or otherwise pursuant to an applicable exemption from registration.
Additionally, in the future, Goldman, Sachs & Co. and its
affiliates may, from time to time, own notes as a result of their market-making
activities. See the section of our fiscal 2008 Form 10-K captioned "Certain
Relationships and Related Party Transactions, and Director Independence" for a
discussion of certain of our transactions with Goldman, Sachs & Co. and its
affiliates.
We have been
advised by Goldman, Sachs & Co. that subject to applicable laws
and regulations it currently intends to make a market in the notes. However,
Goldman, Sachs & Co. is not obligated to do so, and any such
market-making may be interrupted or discontinued at any time without notice. In
addition, such market-making activity will be subject to the limits imposed by
the Securities Act and the Exchange Act. We cannot assure you that an active
trading market will be sustained. See "Risk Factors—Risks Related to the
Notes—Your ability to transfer the notes may be limited by the absence of an
active trading market, and there is no assurance that any active trading market
will develop for the notes."
Pursuant to
registration rights agreements entered into between us and Goldman,
Sachs & Co., we have agreed to indemnify Goldman,
Sachs & Co. against certain liabilities, including liabilities
under the Securities Act.
157
LEGAL MATTERS
The validity
of the notes and related guarantees offered hereby have been passed upon by
Simpson Thacher & Bartlett LLP, New York, New York with respect to
validity under Delaware and California law and Baker, Donelson, Bearman,
Caldwell & Berkowitz, P.C. with respect to validity under Tennessee and
Kentucky law.
EXPERTS
The
consolidated financial statements of Dollar General Corporation appearing in
Dollar General Corporation's Annual Report (Form 10-K) for the fiscal year
ended January 30, 2009 have been audited by Ernst & Young LLP,
independent registered public accounting firm, as set forth in their report
thereon, included therein, and incorporated herein by reference. Such
consolidated financial statements are incorporated by reference herein in
reliance upon such report given on the authority of such firm as experts in
accounting and auditing.
AVAILABLE
INFORMATION
We have filed
with the SEC a registration statement on Form S-1 under the Securities Act
with respect to the notes being offered hereby. This prospectus, which forms a
part of the registration statement, does not contain all of the information set
forth in the registration statement. For further information with respect to us
and the notes, refer to the registration statement. Statements contained in this
prospectus or in any document incorporated by reference into this prospectus as
to the contents of any contract or other document are not necessarily complete,
and each such statement is qualified by the provisions of the contract or other
document filed as an exhibit to the registration statement, as applicable. We
file reports and other information with the SEC. You may read and copy, at SEC
prescribed rates, the registration statement and these other reports and
information at the Public Reference Room of the SEC located at 100 F Street,
N.E., Washington D.C. 20549. You can call the SEC at 1-800-SEC-0330 to obtain
information on the operation of the Public Reference Room. Such materials may
also be accessed electronically by means of the SEC's home page on the Internet
(
http://www.sec.gov
).
The SEC
allows us to incorporate certain information into this prospectus by reference
to other documents that we file with them. This means that we can disclose
information to you for purposes of this prospectus by referring you to other
documents on file with the SEC. We incorporate into this document by reference
our Annual Report on Form 10-K for the fiscal year ended January 30, 2009
that we filed with the SEC on March 24, 2009 and our Current Reports on
Form 8-K dated February 25, 2009, March 16, 2009, and March 24, 2009, as
filed with the SEC on February 25, 2009, March 20, 2009, and March 24, 2009,
respectively. We do not incorporate by reference the portions, if any, of such
Current Reports on Form 8-K that were furnished to (rather than filed with) the
SEC. The information incorporated by reference is an important part of this
prospectus.
Upon written
or oral request, we will provide at no cost to each person, including any
beneficial owner, to whom a prospectus is delivered, a copy of any or all of the
reports or documents that have been incorporated by reference in this prospectus
but not delivered with this prospectus. Please direct such requests to Investor
Relations, Dollar General Corporation, 100 Mission Ridge, Goodlettsville,
Tennessee 37072; (615) 855-5528. You may also view and print these
documents on the "Investor Information" portion of our website located at
www.dollargeneral.com
.
So long as we
and our subsidiary guarantors are subject to the periodic reporting requirements
of the Exchange Act, we and our subsidiary guarantors are required to furnish
the information required to be filed with the SEC to the trustee and the current
holders of the notes, which obligation will be deemed satisfied upon the filing
of reports with the SEC via the EDGAR filing system or a successor system. We
and our subsidiary guarantors have agreed that, even if we and they are not
required under the Exchange Act to furnish that information to the SEC, we and
they will nonetheless furnish certain annual and quarterly financial
information, including a "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and, with respect to the annual information
only, a report from our certified independent accountants and certain current
reports to the trustee and the holders of the notes.
158
Dollar General Corporation
10.625% Senior Notes due 2015
11.875% / 12.625% Senior Subordinated Toggle Notes due
2017
_______________________
PROSPECTUS
___________________________
159
PART
II
INFORMATION NOT
REQUIRED IN PROSPECTUS
Item 13.  Other
Expenses of Issuance and Distribution.
The
registration rights agreement relating to the securities of the registrants
being registered hereby provides that Dollar General Corporation will bear all
expenses in connection with the performance of its obligations relating to the
market-making activities of Goldman, Sachs & Co. and its
respective affiliates. These expenses include printer expenses and legal and
accounting fees in an approximate estimated aggregate amount of $250,000
(including fees incurred in connection with the prior registration of the notes
and certain of the related guarantees on Form S-1 (file number 333-150096)).
Item 14.
 Indemnification of Directors and Officers.
California Registrant
Sun-Dollar,
L.P. is registered under the laws of California.
Section 15904.06
(operative January 1, 2008) of the 2008 California Revised Limited
Partnership Act addresses the rights of a general partner with respect to its
management and conduct of partnership activities. The 2008 California Revised
Limited Partnership Act provides that a limited partnership shall reimburse a
general partner for payments made, and indemnify a general partner for
liabilities incurred by the general partner, in the ordinary course of the
activities of the partnership or for the preservation of its activities or
property.
The limited
partnership agreement of Sun-Dollar, L.P. provides that the partnership shall
indemnify each partner (and the officers and directors of each partner) against
judgments, fines, amounts paid in settlement and expenses (including, without
limitation, attorneys' fees) reasonably incurred by them in any civil, criminal
or administrative proceeding in which they are involved, or threatened to be
involved, by reason of being a partner in the partnership, provided that the
partner acted in good faith, within what such partner reasonably believed to be
the scope of such partner's authority, and for a purpose which such partner
reasonably believed to be in the best interests of the partnership or the
partners. To the extent that a partner has been successful on the merits or
otherwise in defense of any such proceeding or in defense of any claim or matter
therein, such partner shall be deemed to have acted in good faith and in a
manner such partner believed to be in the best interests of the partnership or
the partners. Under any other circumstances, the determination of whether a
partner acted in good faith, within what such partner reasonably believed to be
the scope of such partner's authority, and for a purpose which such partner
reasonably believed to be in the best interests of the partnership or the
partners shall be made by independent legal counsel selected by a general
partner (who may be the regular counsel for the partnership) in a written
opinion.
Delaware Registrants
(a)
South Boston
Holdings, Inc. is incorporated under the laws of Delaware.
Section 145
of the Delaware General Corporation Law (the "DGCL") grants each corporation
organized thereunder the power to indemnify any person who is or was a director,
officer, employee or agent of a corporation or enterprise, against expenses,
including attorneys' fees, judgments, fines and amounts paid in settlement
actually and reasonably incurred by him in connection with any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, other than an action by or in the right of the
corporation, by reason of being or having been in any such capacity, if he acted
in good faith in a manner reasonably believed to be in, or not opposed to, the
best interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was unlawful.
Section 102(b)(7)
of the DGCL enables a corporation in its certification of incorporation or an
amendment thereto to eliminate or limit the personal liability of a director to
the corporation or its stockholders for monetary damages for violations of the
directors' fiduciary duty of care, except (i) for any breach of the
director's duty of loyalty to the corporation or its stockholders, (ii) for
acts or omissions not in good faith or that involve intentional
160
misconduct
or a knowing violation of law, (iii) pursuant to Section 174 of the
DGCL (providing for liability of directors for unlawful payment of dividends or
unlawful stock purchases or redemptions) or (iv) for any transaction from
which a director derived an improper personal benefit.
The by-laws
of South Boston Holdings, Inc. provide that such corporation shall
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action, suit or proceeding (a
"Proceeding"), whether civil, criminal, administrative or investigative, by
reason of the fact that he or she is or was or has agreed to become a director
or officer of the corporation, or is or was serving or has agreed to serve at
the request of the corporation as a director or officer, of another corporation,
partnership, joint venture, trust or other enterprise, or by reason of any
action alleged to have been taken or omitted in such capacity, and may indemnify
any person who was or is a party or is threatened to be made a party to such an
action, suit or proceeding by reason of the fact that he or she is or was or has
agreed to become an employee or agent of the corporation, or is or was serving
or has agreed to serve at the request of the corporation as an employee or agent
of another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys' fees), judgments, fines, and amounts paid
in settlement actually and reasonably incurred by him or her or on his or her
behalf in connection with such action, suit or proceeding and any appeal
therefrom, if he or she acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the best interests of the corporation, and,
with respect to any criminal action or proceeding had no reasonable cause to
believe his or her conduct was unlawful; except that in the case of an action or
suit by or in the right of the corporation to procure a judgment in its favor
(1) such indemnification shall be limited to expenses (including attorneys'
fees) actually and reasonably incurred by such person in the defense or
settlement of such action or suit, and (2) no indemnification shall be made
in respect of any claim, issue or matter as to which such person shall have been
adjudged to be liable to the corporation unless and only to the extent that the
Delaware Court of Chancery or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but
in view of all the circumstances of the case, such person is fairly and
reasonably entitled to indemnity for such expenses which the Delaware Court of
Chancery or such other court shall deem proper. The corporation shall not be
obligated to indemnify a director or officer of the corporation in respect of a
Proceeding (or part thereof) instituted by such director or officer, unless such
Proceeding (or part thereof) has been authorized by the Board of Directors. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon a plea of
nolo contendere
or its equivalent, shall
not, of itself, create a presumption that the person did not act in good faith
and in a manner which he or she reasonably believed to be in or not opposed to
the best interests of the corporation, and, with respect to any criminal action
or proceeding, had reasonable cause to believe that his or her conduct was
unlawful.
(b)
South Boston
FF&E, LLC is a limited liability company organized under the laws of
Delaware.
Section 18-108
of the Delaware Limited Liability Company Act empowers a Delaware limited
liability company to indemnify and hold harmless any member or manager of the
limited liability company from and against any and all claims and demands
whatsoever.
The operating
agreement of South Boston FF&E, LLC ("South Boston FF&E") provides that
South Boston FF&E shall indemnify the member and those authorized agents of
South Boston FF&E identified in writing by the member as entitled to be
indemnified under the section for all costs, losses, liabilities and damages
paid or accrued by the member or any such agent in connection with the business
of South Boston FF&E, to the fullest extent provided or allowed by the Act
and the other laws of the State of Delaware. In addition, South Boston FF&E
may advance costs of defense of any proceeding to the member or any such agent
upon receipt by South Boston FF&E of an undertaking by or on behalf of such
person to repay such amount if it shall ultimately be determined that such
person is not entitled to be indemnified by South Boston FF&E.
Kentucky Registrants
(a)
Dolgencorp of
New York, Inc. and Dolgencorp of Texas, Inc. are incorporated under
the laws of Kentucky.
Sections
271B.8-500 to 271B.8-580 of the Kentucky Business Corporation Act (the "KBCA")
provide that, subject to restrictions contained in the statute, a corporation
may indemnify any person made or threatened to be
161
made
a party to any threatened, pending or completed action, suit or proceeding by
reason of the fact that he is or was a director, officer, employee or agent of
the corporation, or is or was serving at the request of the corporation as a
director, officer, partner, trustee, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise or employee benefit plan.
A person who has been successful on the merits or otherwise in any suit or
matter covered by the indemnification statute shall be indemnified against
expenses (including attorneys' fees) reasonably incurred by him in connection
therewith. Indemnification is authorized upon a determination that the person to
be indemnified has met the applicable standard of conduct required. Such
determination shall be made by the board of directors by a majority vote of a
quorum consisting of directors who were not parties to such action, suit or
proceeding; or if such a quorum cannot be obtained, by a majority vote of a
committee of the board, duly designated to so act by a majority of the full
board, consisting solely of two or more directors who are not parties to the
action; or by special legal counsel selected by the board or a committee
thereof; or by the shareholders who are not parties to such action, suit or
proceeding. Expenses incurred in defense may be paid in advance upon receipt by
the corporation of a written affirmation by the director of his good faith
belief that he has met the applicable standard of conduct required, a written
undertaking by or on behalf of the director to repay such advance if it is
ultimately determined that he did not meet the standard of conduct, and a
determination that the facts then known to those making the determination would
not preclude indemnification under the statute. The indemnification provided by
statute shall not be deemed exclusive of any other rights to which those seeking
indemnification may be entitled under any bylaw, agreement, vote of shareholders
or disinterested directors, or otherwise, which shall inure to the benefit of
the heirs, executors and administrators of such a person. Insurance may be
purchased on behalf of any person entitled to indemnification by the corporation
against any liability incurred in an official capacity regardless of whether the
person could be indemnified under the statute. References to the corporation
include all constituent corporations absorbed in a consolidation or merger as
well as the resulting or surviving corporation and anyone seeking
indemnification by virtue of acting in some capacity with a constituent
corporation would stand in the same position as if he had served the resulting
or surviving corporation in the same capacity.
Section 271B.2-020
of the KBCA allows a corporation in its articles of incorporation to set forth a
provision eliminating or limiting the personal liability of a director to the
corporation or its shareholders for monetary damages for breach of his duties as
a director, provided that such provision shall not eliminate or limit the
liability of a director: (i) for any transaction in which the director's
personal financial interest is in conflict with the financial interests of the
corporation or its shareholders; (ii) for acts or omissions not in good
faith or which involve intentional misconduct or are known to the director to be
a violation of law; (iii) for any vote or assent to an unlawful
distribution to shareholders as prohibited under Section 271B.8-330 of the
KBCA; or (iv) for any transaction from which the director derived an
improper personal benefit.
The articles
of incorporation of Dolgencorp of New York, Inc. and Dolgencorp of
Texas, Inc. contain a provision that provides that no director of the
corporation shall be personally liable to the corporation or its shareholders
for monetary damages for breach of duty as a director, except to the extent
provided by the KBCA. The bylaws of Dolgencorp of New York, Inc. and
Dolgencorp of Texas, Inc. provide that, to the maximum extent permitted by
law but subject to the limitations set forth in the bylaws, the corporation
shall indemnify a director or officer who is a party to a proceeding by reason
of the fact that he or she is or was a director or officer against any liability
incurred in the proceeding, and the corporation may advance any reasonable
expenses incurred by such director or officer in connection with the proceeding
in advance of its disposition, but the corporation shall not be required to
indemnify or advance expenses to such director or officer incurred in a
proceeding initiated by or on behalf of such director or officer, other than a
suit to enforce indemnification rights. The indemnification provisions in the
bylaws are intended to be greater than those which are otherwise provided for in
the statutes, notwithstanding such director or officer's failure to meet the
standard of conduct required for permissive indemnification under the KBCA, are
contractual in nature between the director or officer and the corporation, and
are mandatory. The rights of such director or officer to indemnification and
advancement of expenses shall not be exclusive of other rights to which such
director or officer may be entitled under the statutes, articles of
incorporation, the bylaws, a resolution of shareholders or directors, or an
agreement providing for indemnification. The rights of such director or officer
to advancement of expenses are subject to such director or officer's furnishing
to the corporation: (a) a written affirmation, personally signed by or on
behalf of such director or officer, of his good faith belief that he was not
liable for (i) any transaction in which such director or officer's personal
financial interest is in conflict with the financial interest of the corporation
or its shareholders, (ii) any acts or omissions not in good faith or which
involve intentional misconduct or are known to such director or officer to be a
violation of law, (iii) any unlawful distributions under the statutes, or
(iv) any transaction from which such director or officer derived an
improper
162
personal
benefit; (b) a written opinion of counsel for such director or officer in
the proceeding to the effect that based on the facts known to counsel for such
director or officer, a successful defense, on the merits or otherwise, is either
probable or reasonably possible; and (c) a written undertaking, personally
signed by or on behalf of such director or officer, to repay any advances if a
judgment or other final adjudication adverse to such director or officer
establishes that he is liable, contrary to his affirmation. No indemnification
may be made in advance of a final disposition of such proceeding or if a
judgment or other final adjudication adverse to such director or officer
establishes his liability for: (i) any transaction in which the personal
financial interest of such officer or director is in conflict with the financial
interests of the corporation or its shareholders; (ii) any acts or
omissions not in good faith or which involve intentional misconduct or are known
to such director or officer to be a violation of law; (iii) any unlawful
distributions under the statutes; or (iv) any transaction from which such
director or officer derived an improper personal benefit. The indemnification
rights granted to such director or officer in the bylaws may not be limited in
any way by a subsequent amendment to or repeal of the indemnification provision
in the bylaws with respect to acts or omissions that occur prior to the adoption
of the amendment or repeal. The corporation may, but is not required to,
maintain insurance at its expense to protect itself and any such person against
any such liability, cost or expense.
(b)
Dollar
General Partners is formed under the laws of Kentucky.
Kentucky
partnership law provides that a partnership shall indemnify every partner in
respect of payments made and personal liabilities reasonably incurred by him in
the ordinary and proper conduct of its business, or for the preservation of its
business or property.
The
partnership agreement of Dollar General Partners is silent regarding
indemnification. The charter and/or bylaws of the two partners of Dollar General
Partners, Dollar General Corporation and DG Promotions, Inc., both
Tennessee corporations, contain indemnification provisions that are described
below.
(c)
Dolgencorp,
LLC is a limited liability company organized under the laws of Kentucky.
Section
275.180 of the Kentucky Limited Liability Company Act provides that a
limited liability company's operating agreement may provide for indemnification
of a member or manager for judgments, settlements, penalties, fines or expenses
incurred in a proceeding to which a person is a party because the person is or
was a member or manager.
The articles
of organization and the operating agreement of Dolgencorp, LLC are silent
regarding indemnification.
Tennessee Registrants
(a)
Dollar
General Corporation, DG Promotions, Inc., DG Transportation, Inc.,
Dolgen I, Inc., Dolgen II, Inc., and Dolgen III, Inc. are incorporated under the
laws of Tennessee.
The Tennessee
Business Corporation Act ("TBCA") allows a Tennessee corporation's charter to
contain a provision eliminating or limiting, with certain exceptions, the
personal liability of a director to the corporation or its shareholders for
monetary damages for breach of the director's fiduciary duty as a director.
Under the TBCA, a Tennessee business corporation may not eliminate or limit
director monetary liability for (i) breaches of the director's duty of
loyalty to the corporation or its shareholders; (ii) acts or omissions not
in good faith or involving intentional misconduct or a knowing violation of law;
or (iii) unlawful dividends, stock repurchases or redemptions. This
provision also may not limit a director's liability for violation of, or
otherwise relieve a corporation or its directors from the necessity of complying
with, federal or state securities laws, or affect the availability of
non-monetary remedies such as injunctive relief or rescission. The charters of
Dollar General Corporation and DG Promotions, Inc. contain a provision
stating that directors shall not be personally liable for monetary damage to the
corporation or its shareholders for breach of fiduciary duty as a director,
except to the extent required by the TBCA in effect from time to time.
163
The
TBCA provides that a corporation may indemnify any of its directors, officers,
employees and agents against liability incurred in connection with a proceeding
if (a) such person acted in good faith; (b) in the case of conduct in
an official capacity with the corporation, he reasonably believed such conduct
was in the corporation's best interests; (c) in all other cases, he
reasonably believed that his conduct was at least not opposed to the best
interests of the corporation; and (d) in connection with any criminal
proceeding, such person had no reasonable cause to believe his conduct was
unlawful. In actions brought by or in the right of the corporation, however, the
TBCA provides that no indemnification may be made if the director or officer was
adjudged to be liable to the corporation. The TBCA also provides that in
connection with any proceeding charging improper personal benefit to an officer
or director, no indemnification may be made if such officer or director is
adjudged liable on the basis that such personal benefit was improperly received.
In cases where the director or officer is wholly successful, on the merits or
otherwise, in the defense of any proceeding instigated because of his or her
status as a director or officer of a corporation, the TBCA mandates that the
corporation indemnify the director or officer against reasonable expenses
incurred in the proceeding. The TBCA provides that a court of competent
jurisdiction, unless the corporation's charter provides otherwise, upon
application, may order that an officer or director be indemnified for reasonable
expenses if, in consideration of all relevant circumstances, the court
determines that such individual is fairly and reasonably entitled to
indemnification, notwithstanding the fact that (a) such officer or director
was adjudged liable to the corporation in a proceeding by or in the right of the
corporation; (b) such officer or director was adjudged liable on the basis
that personal benefit was improperly received by him; or (c) such officer
or director breached his duty of care to the corporation.
Dollar
General Corporation's charter and bylaws require us to indemnify our directors
and officers to the fullest extent permitted by applicable law. Dollar General
Corporation's bylaws further require us to advance expenses to each of our
directors and officers to the full extent allowed by Tennessee law. Under Dollar
General Corporation's charter and bylaws, such indemnification and advancement
of expenses provisions are not exclusive of any other right that a director or
officer may have or acquire both as to action in his or her official capacity
and as to action in another capacity.
The charter
and bylaws of DG Promotions, Inc. and the bylaws of DG
Transportation, Inc., Dolgen I, Inc., Dolgen II, Inc., and Dolgen III, Inc.
provide that the corporation shall indemnify and advance expenses to each
director and officer of the corporation, or any person who may have served at
the request of the corporation's board of directors or its President or Chief
Executive Officer as a director or officer of another corporation, and such
person's heirs, executors, and administrators, to the fullest extent permitted
by Tennessee law. The corporation may indemnify and advance expenses to any
employee or agent of the corporation who is not a director or officer, and such
person's heirs, executors, and administrators, to the same extent as to a
director or officer, if the board of directors determines it to be in the best
interests of the corporation to do so. In addition, such indemnification and
advancement of expenses provisions are not exclusive of any other right that a
director or officer may have or acquire both as to action in his or her official
capacity and as to action in another capacity. The corporation may maintain
insurance at its own expense to protect itself and any individual who is or was
a director, officer, employee or agent of the corporation, or who, while a
director, officer, employee or agent of the corporation, is or was serving at
the request of the board of directors or Chief Executive Officer as a director,
officer, partner, trustee, employee or agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise
against any expense, liability or loss, whether or not the corporation would
have the power to indemnify such person under the bylaws or the TBCA.
(b)
DC Financial,
LLC, DG Logistics LLC, DG Retail, LLC, DG Strategic I, LLC, DG Strategic II,
LLC, DG Strategic III, LLC, and Retail Risk Solutions, LLC are limited liability
companies organized under the laws of Tennessee.
Section 48-243-101
of the Tennessee Limited Liability Company Act provides that an LLC may
indemnify any person made or threatened to be made a party to any threatened,
pending or completed action, suit or proceeding by reason of the fact that he is
or was a governor of a board-managed LLC, a member of a member-managed LLC or an
individual who, while a governor of a board-managed LLC or member of a
member-managed LLC, is or was serving at the LLC's request as a governor,
manager, director, officer, partner, trustee, employee or agent of another LLC,
corporation, partnership, joint venture, trust or other enterprise or employee
benefit plan (a "Responsible Person"). Indemnification is authorized upon a
determination that the person to be indemnified has met the requisite standard
of conduct. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or
164
upon
a plea of
nolo contendere
or its equivalent, is not, of itself,
determinative that the Responsible Person did not meet the standard of conduct
required. An LLC may not indemnify a Responsible Person: (i) in connection
with a proceeding by or in the right of the LLC in which the Responsible Person
was adjudged liable to the LLC; or (ii) in connection with any other
proceeding charging improper personal benefit to such Responsible Person,
whether or not involving action in such person's official capacity, in which
such person was adjudged liable on the basis that personal benefit was
improperly received by such person. A person who has been successful on the
merits or otherwise in any suit or matter covered by the indemnification statute
shall be indemnified against expenses (including attorneys' fees) reasonably
incurred by him in connection therewith. Expenses incurred in defense may be
paid in advance upon receipt by the LLC of a written affirmation by the
Responsible Person of his good faith belief that he has met the requisite
standard of conduct, a written undertaking by or on behalf of such person to
repay such advance if it is ultimately determined that he did not meet the
standard of conduct, and a determination that the facts then known to those
making the determination would not preclude indemnification under the statute. A
court of competent jurisdiction, unless the LLC's articles provide otherwise,
upon application by the Responsible Person, may order that such person be
indemnified for reasonable expenses if, in consideration of all relevant
circumstances, the court determines that such person is fairly and reasonably
entitled to indemnification, whether or not such person met the requisite
standard of conduct, was adjudged liable in a proceeding by or in the right of
the LLC, or was adjudged liable on the basis that personal benefit was
improperly received by him. Such determination shall be made by the board of
governors in the case of a board-managed LLC or by the members of a
member-managed LLC by a majority vote of a quorum consisting of governors or
members who were not parties to such action, suit or proceeding; or if such a
quorum cannot be obtained, by a majority vote of a committee designated by the
board of governors in the case of a board-managed LLC or by the members of a
member-managed LLC, consisting solely of two or more governors or members, as
applicable, who are not parties to the action; or by independent special legal
counsel selected by the board of governors of a board-managed LLC or by the
members of a member-managed LLC; or by the members of a board-managed LLC who
are not parties to such action, suit or proceeding. Such indemnification and
advancement of expenses provisions are not exclusive of any other right that a
Responsible Person may have; provided that no indemnification may be made to or
on behalf of any Responsible Person if a judgment or other final adjudication
adverse to the Responsible Person establishes such person's liability:
(i) for any breach of the duty of loyalty to the LLC or its members;
(ii) for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law; or (iii) for wrongful
distributions under Section 48-237-101 of the Tennessee Limited Liability
Company Act. The LLC may indemnify and advance expenses to a manager, employee,
independent contractor or agent of the LLC to the same extent as a Responsible
Person. The LLC may purchase insurance on behalf of any person entitled to
indemnification by the LLC against any liability incurred in an official
capacity regardless of whether the person could be indemnified under the
statute.
The operating
agreement of DG Logistics, LLC provides that the LLC shall fully indemnify the
Member (DG Transportation, Inc.) for any claim against the Member in the
Member's capacity as a member or as a manager. In addition, the LLC shall
advance litigation expenses to the Member for any claim against the Member in
the Member's capacity as a member or as a manager.
The operating
agreements of DC Financial, LLC, DG Retail, LLC, DG Strategic I, LLC, DG
Strategic II, LLC, DG Strategic III, LLC, and Retail Risk Solutions, LLC provide
that the LLC shall indemnify the Member (in each case except DG Retail, LLC,
such Member is Dollar General Corporation; DG Promotion, Inc. is the Member of
DG Retail, LLC), and the authorized agents of the LLC identified in writing by
the Member as entitled to be indemnified, for all costs, losses, liabilities and
damages paid or accrued by the Member or any such agent in connection with the
business of the LLC to the fullest extent provided or allowed under Tennessee
law. In addition, the LLC may advance costs of defense of any proceeding to the
Member or any such agent upon receipt by the LLC of an undertaking by such
person to repay such amount if it is ultimately determined that such person is
not entitled to be indemnified by the LLC.
Certain Other
Arrangements
Dollar
General Corporation has in effect a directors' and officers' liability insurance
policy that covers the directors and officers of each of the registrants in
amounts that we believe are customary in our industry, including for liabilities
in connection with the registration, offering and sale of the notes. Under this
policy, the insurer agrees to pay, subject to certain exclusions, for any claim
made against directors or officers of the registrants for a wrongful
165
act
or omission by such persons, but only if and to the extent such persons become
legally obligated to pay such claim or incur certain costs in defending such
claim.
In addition,
in connection with entering into the monitoring agreement with KKR (or
affiliates thereof) and Goldman, Sachs & Co., we also entered into a
separate indemnification agreement with the parties to the monitoring agreement,
pursuant to which we agreed to provide customary indemnification to such parties
and their affiliates. See the "Certain Relationships and Related Transactions,
and Director Independence" section of our fiscal 2008 Form 10-K.
Furthermore, the Merger Agreement requires us to maintain indemnification of
directors and officers to the fullest extent permitted by law following
completion of the Merger.
Pursuant to
our Employment Agreement with Mr. Dreiling, effective as of
January 11, 2008, we have agreed that if Mr. Dreiling is made or
threatened to be made a party to any action, suit or proceeding, whether civil,
criminal, administrative or investigative, relating to a claim by his prior
employer that Mr. Dreiling has breached or attempted to breach certain
covenants to which he is bound as a result of his employment arrangement with
his prior employer, we will indemnify and hold harmless Mr. Dreiling to the
fullest extent authorized by applicable law from and against any and all
liabilities, amounts paid in settlement, costs, claims and expenses, including
all costs and expenses incurred in defense of any such proceeding (including
attorneys' fees). We will pay costs and expenses Mr. Dreiling incurs in
defense of any such proceeding (including attorneys' fees) in advance of the
final disposition of such litigation upon our receipt of (a) a written
request for payment, (b) appropriate documentation evidencing the
incurrence, amount and nature of the costs and expenses for which payment is
being sought, and (c) an undertaking adequate under applicable law made by
or on behalf of Mr. Dreiling to repay the amounts so paid if it shall
ultimately be determined that he is not entitled to be indemnified by us under
his Employment Agreement with us. Notwithstanding the foregoing, if as a result
of such proceeding Mr. Dreiling is prohibited from continuing his
employment with us, we shall pay to Mr. Dreiling his base salary until the
earliest to occur of (i) the date upon which he ceases to be so prohibited,
(ii) the date, if any, upon which he becomes employed by a subsequent
employer and (iii) the first anniversary of the effective date of such
prohibition.
In addition,
we shall indemnify and hold harmless Mr. Dreiling for all acts and
omissions occurring during his employment or service as a member of the Board
(or both) to the maximum extent provided under our charter, by-laws and
applicable law. During the Term (as defined in the Employment Agreement) and for
a term of six years thereafter, we, or any of our successors shall purchase and
maintain, at its own expense, directors and officers liability insurance
providing coverage for Mr. Dreiling in the same amount as for Board
members.
Mr. Dreiling
shall provide his reasonable cooperation in connection with any proceeding (or
any appeal from any proceeding) referenced above, as well as any proceeding
which relates to events occurring during his employment.
Insofar as
indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to our directors, officers or controlling persons pursuant to the
foregoing provisions, we have been informed that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy
as expressed in the Act and is therefore unenforceable.
Item 15. Recent Sales of
Unregistered Securities.
In connection
with the Merger, our officer-level employees were offered the opportunity to
roll over portions of their equity and/or stock options and to purchase
additional equity of Dollar General. In connection with such opportunity, on
July 6, 2007 these individuals purchased a total of 635,207 shares of
common stock having an aggregate value of approximately $3,176,035 and exchanged
a total of 2,225,175 stock options outstanding prior to the Merger for 1,920,543
vested options to purchase shares of common stock (the "Rollover Options") in
the surviving company (the "Rollover"). The Rollover Options remain outstanding
in accordance with the terms of the governing stock incentive plan and grant
agreements pursuant to which the holder originally received the stock option
grants. However, immediately after the Merger, the exercise price and number of
shares underlying the Rollover Options were adjusted as a result of the Merger
and the exercise price for all of the options was adjusted to $1.25 per
option.
166
We
subsequently offered certain other employees a similar investment opportunity to
participate in our common equity. As a result, on September 20, 2007 and
October 5, 2007, we sold 15,000 shares and 558,800 shares, respectively, of
our common stock to those employees for a purchase price of $5 per share.
In connection
with the investment discussed above and the Merger, our Board of Directors
adopted a new stock incentive plan pursuant to which certain of our
officer-level and other employees also were granted, on July 6, 2007,
September 20, 2007 and October 5, 2007, respectively, new
non-qualified stock options to purchase 13,110,000 shares, 130,000 shares and
4,150,000 shares of our common stock at a per share exercise price of $5, which
represented the fair market value of one share of our common stock on the grant
date. Effective January 21, 2008, our Board also granted to our CEO,
Mr. Dreiling, non-qualified stock options to purchase 2.5 million
shares of our common stock pursuant to the terms of the new stock incentive
plan. All of these new options expire no later than 10 years following the
grant date. In addition, half of the options will vest ratably on each of the
five anniversaries of July 6, 2007 solely based upon continued employment
over that time period, while the other half of the options will vest based both
upon continued employment and upon the achievement of predetermined performance
annual or cumulative financial-based targets over time which coincide with our
fiscal year. The options also have certain accelerated vesting provisions upon a
change in control or initial public offering, as defined in the new incentive
plan.
Effective
January 21, 2008, our Board also granted to Mr. Dreiling 890,000
shares of restricted common stock pursuant to the terms of the new stock
incentive plan. The restricted stock will vest on the last day of our 2011
fiscal year if Mr. Dreiling remains employed by us through that date. The
restricted stock also has certain accelerated vesting provisions upon a change
in control, initial public offering, termination without cause or due to death
or disability, or resignation for good reason, all as defined in
Mr. Dreiling's employment agreement.
The share
issuances, the Rollover Options and the new option and restricted stock grants
described above were effected without registration in reliance on (1) the
exemptions afforded by Section 4(2) of the Securities Act of 1933, as
amended (the "Securities Act"), because the sales did not involve any public
offering, (2) Rule 701 promulgated under the Securities Act for shares
that were sold under a written compensatory benefit plan or contract for the
participation of our employees, directors, officers, consultants and advisors,
and (3) Regulation S promulgated under the Securities Act relating to
offerings of securities outside of the United States.
In connection
with the Merger, we issued the notes, which were effected without registration
in reliance on (1) the exemptions afforded by Rule 144A promulgated
under the Securities Act, for private resales of securities to qualified
institutional buyers and (2) Regulation S promulgated under the
Securities Act relating to offerings of securities outside of the United
States.
Item 16.  Exhibits and
Financial Statement Schedules.
Exhibit
No.
Description
2
Agreement and Plan of Merger, dated as of
March 11, 2007, by and among Buck Holdings, L.P., Buck
Acquisition Corp., and Dollar General Corporation (incorporated by
reference to Exhibit 2.1 to Dollar General Corporation's Current
Report on Form 8-K dated March 11, 2007, filed with the SEC on
March 12, 2007 (file number 001-11421))
3.1
Amended and Restated Charter of Dollar General
Corporation (incorporated by reference to Exhibit 3.1 to Dollar
General Corporation's Current Report on Form 8-K dated July 6,
2007, filed with the SEC on July 12, 2007 (file
number 001-11421))
3.2
Amended and Restated Bylaws of Dollar General
Corporation (adopted on September 20, 2007) (incorporated by
reference to Exhibit 3.2 to Dollar General Corporation's Registration
Statement on Form S-4 filed with the SEC on December 21, 2007
(file number 333-148320))
3.3
Articles of Organization of DC Financial, LLC
(incorporated by reference to Exhibit 3.3 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.4
Operating Agreement of DC Financial, LLC
(incorporated by reference to Exhibit 3.4 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file
number 333-148320))
167
3.5
Articles of Organization of DG Logistics, LLC
(incorporated by reference to Exhibit 3.5 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.6
Operating Agreement of DG Logistics, LLC
(incorporated by reference to Exhibit 3.6 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.7
Amended Charter of DG Promotions, Inc.
(incorporated by reference to Exhibit 3.7 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.8
Bylaws of DG Promotions, Inc. (incorporated by
reference to Exhibit 3.8 to Dollar General Corporation's Registration
Statement on Form S-4 filed with the SEC on December 21, 2007
(file number 333-148320))
3.9
Articles of Organization of DG Retail, LLC
(incorporated by reference to Exhibit 3.9 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.10
Operating Agreement of DG Retail, LLC
(incorporated by reference to Exhibit 3.10 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.11
Charter of DG Transportation, Inc.
(incorporated by reference to Exhibit 3.11 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.12
Bylaws of DG Transportation, Inc.
(incorporated by reference to Exhibit 3.12 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.13
Articles of Incorporation of Dolgencorp of New
York, Inc. (incorporated by reference to Exhibit 3.17 to Dollar
General Corporation's Registration Statement on Form S-4 filed with
the SEC on December 21, 2007 (file number 333-148320))
3.14
Bylaws of Dolgencorp of New York, Inc.
(incorporated by reference to Exhibit 3.18 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.15
Articles of Incorporation of Dolgencorp of
Texas, Inc. (incorporated by reference to Exhibit 3.19 to Dollar
General Corporation's Registration Statement on Form S-4 filed with
the SEC on December 21, 2007 (file number 333-148320))
3.16
Bylaws of Dolgencorp of Texas, Inc.
(incorporated by reference to Exhibit 3.20 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.17*
Articles of Organization of
Dolgencorp, LLC
3.18*
Operating Statement of
Dolgencorp, LLC
3.19
Amended Certificate of Assumed Name of Dollar
General Partners (incorporated by reference to Exhibit 3.27 to Dollar
General Corporation's Registration Statement on Form S-4 filed with
the SEC on December 21, 2007 (file number 333-148320))
3.20
Amended Partnership Agreement of Dollar General
Partners (incorporated by reference to Exhibit 3.28 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.21
Certificate of Formation of South Boston
FF&E, LLC (incorporated by reference to Exhibit 3.29 to
Dollar General Corporation's Registration Statement on Form S-4 filed
with the SEC on December 21, 2007 (file
number 333-148320))
3.22
Operating Agreement of South Boston
FF&E, LLC (incorporated by reference to Exhibit 3.30 to
Dollar General Corporation's Registration Statement on Form S-4 filed
with the SEC on December 21, 2007 (file
number 333-148320))
3.23
Certificate of Incorporation of South Boston
Holdings, Inc. (incorporated by reference to Exhibit 3.31 to
Dollar General Corporation's Registration Statement on Form S-4 filed
with the SEC on December 21, 2007 (file
number 333-148320))
168
3.24
Bylaws of South Boston Holdings, Inc.
(incorporated by reference to Exhibit 3.32 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
3.25
Amended Certificate of Limited Partnership of
Sun-Dollar, L.P. (incorporated by reference to Exhibit 3.33 to
Dollar General Corporation's Registration Statement on Form S-4 filed
with the SEC on December 21, 2007 (file
number 333-148320))
3.26
Amended Agreement of Limited Partnership of
Sun-Dollar, L.P. (incorporated by reference to Exhibit 3.34 to
Dollar General Corporation's Registration Statement on Form S-4 filed
with the SEC on December 21, 2007 (file
number 333-148320))
3.27
Articles of Organization of Retail Risk
Solutions, LLC (incorporated by reference to Exhibit 3.35 to
Dollar General Corporation's Amendment No.1 to Registration Statement on
Form S-4 filed with the SEC on January 25, 2008 (file
number 333-148320))
3.28
Operating Agreement of Retail Risk
Solutions, LLC (incorporated by reference to Exhibit 3.36 to
Dollar General Corporation's Amendment No.1 to Registration Statement on
Form S-4 filed with the SEC on January 25, 2008 (file
number 333-148320))
3.29*
Charter of Dolgen I, Inc.
3.30*
Bylaws of Dolgen I, Inc.
3.31*
Charter of Dolgen II, Inc.
3.32*
Bylaws of Dolgen II, Inc.
3.33*
Charter of Dolgen III, Inc.
3.34*
Bylaws of Dolgen III, Inc.
3.35*
Articles of Organization of DG Strategic I,
LLC
3.36*
Operating Agreement of DG Strategic I,
LLC
3.37*
Articles of Organization of DG Strategic II,
LLC
3.38*
Operating Agreement of DG Strategic II,
LLC
3.39*
Articles of Organization of DG Strategic III,
LLC
3.40*
Operating Agreement of DG Strategic III,
LLC
4.1
Sections 7 and 8 of Dollar General
Corporation's Amended and Restated Charter (included in
Exhibit 3.1)
4.2
Indenture, dated as of June 21, 2000, by and
among Dollar General Corporation, the guarantors named therein, as
guarantors, and Wachovia Bank, National Association (formerly known as
First Union National Bank), as trustee (incorporated by reference to
Exhibit 4.1 to Dollar General Corporation's Registration Statement on
Form S-4 filed with the SEC on August 1, 2000 (file
number 333-42704))
4.3
First Supplemental Indenture, dated as of
July 28, 2000, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit 4.4 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended
January 31, 2003, filed with the SEC on March 19, 2003 (file
number 001-11421))
4.4
Second Supplemental Indenture, dated as of
June 18, 2001, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit 4.5 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended
January 31, 2003, filed with the SEC on March 19, 2003 (file
number 001-11421))
4.5
Third Supplemental Indenture, dated as of
June 20, 2002, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit 4.6 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended
January 31, 2003, filed with the SEC on March 19, 2003 (file
number 001-11421))
4.6
Fourth Supplemental Indenture, dated as of
December 11, 2002, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit 4.7 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended
January 31, 2003, filed with the SEC on March 19, 2003 (file
number 001-11421))
169
4.7
Fifth Supplemental Indenture, dated as of
May 23, 2003, by and among Dollar General Corporation, the guarantors
named therein, as guarantors, and Wachovia Bank, National Association
(formerly known as First Union National Bank), as trustee (incorporated by
reference to Exhibit 4.1 to Dollar General Corporation's Quarterly
Report on Form 10-Q for the quarter ended August 1, 2003, filed
with the SEC on August 29, 2003 (file
number 001-11421))
4.8
Sixth Supplemental Indenture, dated as of
July 15, 2003, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit 4.2 to Dollar General
Corporation's Quarterly Report on Form 10-Q for the quarter ended
August 1, 2003, filed with the SEC on August 29, 2003 (file
number 001-11421))
4.9
Seventh Supplemental Indenture, dated as of
May 23, 2005, by and among Dollar General Corporation, the guarantors
named therein, as guarantors, and Wachovia Bank, National Association
(formerly known as First Union National Bank), as trustee (incorporated by
reference to Exhibit 4.1 to Dollar General Corporation's Quarterly
Report on Form 10-Q for the quarter ended July 29, 2005, filed
with the SEC on August 25, 2005 (file
number 001-11421))
4.10
Eighth Supplemental Indenture, dated as of
July 27, 2005, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee
(incorporated by reference to Exhibit 4.2 to Dollar General
Corporation's Quarterly Report on Form 10-Q for the quarter ended
July 29, 2005, filed with the SEC on August 25, 2005 (file
number 001-11421))
4.11
Ninth Supplemental Indenture, dated as of
August 30, 2006, by and among Dollar General Corporation, the
guarantors named therein, as guarantors, and U.S. Bank National
Association (successor to Wachovia Bank, National Association), as trustee
(incorporated by reference to Exhibit 4.2 to Dollar General
Corporation's Quarterly Report on Form 10-Q for the quarter ended
November 3, 2006, filed with the SEC on December 12, 2006 (file
number 001-11421))
4.12
Tenth Supplemental Indenture, dated as of
July 6, 2007, by and among Dollar General Corporation, the guarantors
named therein, as guarantors, and U.S. Bank National Association
(successor to Wachovia Bank, National Association), as trustee
(incorporated by reference to Exhibit 4.1 to Dollar General
Corporation's Current Report on Form 8-K dated July 6, 2007,
filed with the SEC on July 12, 2007 (file
number 001-11421))
4.13
Senior Indenture, dated July 6, 2007, among
Buck Acquisition Corp., Dollar General Corporation, the guarantors named
therein and U.S. Bank National Association (the successor trustee), as
trustee (incorporated by reference to Exhibit 4.8 to Dollar General
Corporation's Current Report on Form 8-K dated July 6, 2007,
filed with the SEC on July 12, 2007 (file
number 001-11421))
4.14
Form of 10.625% Senior Notes due 2015 (included in
Exhibit 4.13)
4.15
First Supplemental Indenture to the Senior
Indenture, dated as of September 25, 2007, between DC
Financial, LLC, the Guaranteeing Subsidiary, and U.S. Bank National
Association (the successor trustee), as trustee (incorporated by reference
to Exhibit 4.14 to Dollar General Corporation's Registration
Statement on Form S-4 filed with the SEC on December 21, 2007
(file number 333-148320))
4.16
Second Supplemental Indenture to the Senior
Indenture, dated as of December 31, 2007, between Retail Risk
Solutions, LLC, the Guaranteeing Subsidiary, and U.S. Bank National
Association (the successor trustee), as trustee (incorporated by reference
to Exhibit 4.32 to Dollar General Corporation's Amendment No.1 to
Registration Statement on Form S-4 filed with the SEC on
January 25, 2008 (file number 333-148320))
4.17*
Third Supplemental Indenture to the Senior
Indenture, dated as of March 23, 2009, between the Guaranteeing
Subsidiaries referenced therein and U.S. Bank National Association, as
trustee
4.18
Instrument of Resignation, Appointment and
Acceptance, effective as of February 25, 2009, by and among Dollar General
Corporation, Wells Fargo Bank, National Association, and U.S. Bank
National Association (incorporated by reference to Exhibit 99 to Dollar
General Corporation's Current Report on Form 8-K dated February 25, 2009,
filed with the SEC on February 25, 2009 (file number
001-11421))
170
4.19
Senior Subordinated Indenture, dated July 6,
2007, among Buck Acquisition Corp., Dollar General Corporation, the
guarantors named therein and U.S. Bank National Association (the successor
trustee), as trustee (incorporated by reference to Exhibit 4.9 to
Dollar General Corporation's Current Report on Form 8-K dated
July 6, 2007, filed with the SEC on July 12, 2007 (file
number 001-11421))
4.20
Form of 11.875%/12.625% Senior Subordinated Toggle
Notes due 2017 (included in Exhibit 4.19)
4.21
First Supplemental Indenture to the Senior
Subordinated Indenture, dated as of September 25, 2007, between DC
Financial, LLC, the Guaranteeing Subsidiary, and U.S. Bank National
Association (the successor trustee), as trustee (incorporated by reference
to Exhibit 4.16 to Dollar General Corporation's Registration
Statement on Form S-4 filed with the SEC on December 21, 2007
(file number 333-148320))
4.22
Second Supplemental Indenture to the Senior
Subordinated Indenture, dated as of December 31, 2007, between Retail
Risk Solutions, LLC, the Guaranteeing Subsidiary, and U.S. Bank
National Association (the successor trustee), as trustee (incorporated by
reference to Exhibit 4.33 to Dollar General Corporation's Amendment
No.1 to Registration Statement on Form S-4 filed with the SEC on
January 25, 2008 (file number 333-148320))
4.23*
Third Supplemental Indenture to the Senior
Subordinated Indenture, dated as of March 23, 2009, between the
Guaranteeing Subsidiaries referenced therein and U.S. Bank National
Association, as trustee
4.24
Registration Rights Agreement, dated July 6,
2007, among Buck Acquisition Corp., Dollar General Corporation, the
guarantors named therein and the initial purchasers named therein
(incorporated by reference to Exhibit 4.10 to Dollar General
Corporation's Current Report on Form 8-K dated July 6, 2007,
filed with the SEC on July 12, 2007 (file
number 001-11421))
4.25
Registration Rights Agreement, dated July 6,
2007, among Buck Holdings, L.P., Buck Holdings, LLC, Dollar
General Corporation and Shareholders named therein (incorporated by
reference to Exhibit 4.18 to Dollar General Corporation's
Registration Statement on Form S-4 filed with the SEC on
December 21, 2007 (file number 333-148320))
4.26
Credit Agreement, dated as of July 6, 2007,
among Dollar General Corporation, as Borrower, Citicorp North
America, Inc., as Administrative Agent, and the other lending
institutions from time to time party thereto (incorporated by reference to
Exhibit 4.2 to Dollar General Corporation's Current Report on
Form 8-K dated July 6, 2007, filed with the SEC on July 12,
2007 (file number 001-11421))
4.27
Guarantee to the Credit Agreement, dated as of
July 6, 2007, among certain domestic subsidiaries of Dollar General
Corporation, as Guarantors and Citicorp North America, Inc., as
Collateral Agent (incorporated by reference to Exhibit 4.3 to Dollar
General Corporation's Current Report on Form 8-K dated July 6,
2007, filed with the SEC on July 12, 2007 (file
number 001-11421))
4.28
Supplement No.1, dated as of September 11,
2007, to the Guarantee to the Credit Agreement, between DC
Financial, LLC, as New Guarantor, and Citicorp North
America, Inc., as Collateral Agent (incorporated by reference to
Exhibit 4.23 to Dollar General Corporation's Registration Statement
on Form S-4 filed with the SEC on December 21, 2007 (file
number 333-148320))
4.29
Supplement No. 2, dated as of
December 31, 2007, to the Guarantee to the Credit Agreement, between
Retail Risk Solutions, LLC, as New Guarantor, and Citicorp North
America, Inc., as Collateral Agent (incorporated by reference to
Exhibit 4.34 to Dollar General Corporation's Amendment No.1 to
Registration Statement on Form S-4 filed with the SEC on
January 25, 2008 (file number 333-148320))
4.30*
Supplement No. 3, dated as of March 23, 2009, to
the Guarantee to the Credit Agreement, between the New Guarantors
referenced therein and Citicorp North America, Inc., as Collateral
Agent
4.31
Security Agreement, dated as of July 6, 2007,
among Dollar General Corporation and certain domestic subsidiaries of
Dollar General Corporation, as Grantors, and Citicorp North
America, Inc., as Collateral Agent (incorporated by reference to
Exhibit 4.4 to Dollar General Corporation's Current Report on
Form 8-K dated July 6, 2007, filed with the SEC on July 12,
2007 (file number 001-11421))
171
4.32
Supplement No.1, dated as of September 11,
2007, to the Security Agreement, between DC Financial, LLC, as New
Grantor, and Citicorp North America, Inc., as Collateral Agent
(incorporated by reference to Exhibit 4.25 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
4.33
Supplement No. 2, dated as of
December 31, 2007, to the Security Agreement, between Retail Risk
Solutions, LLC, as New Grantor, and Citicorp North
America, Inc., as Collateral Agent (incorporated by reference to
Exhibit 4.35 to Dollar General Corporation's Amendment No.1 to
Registration Statement on Form S-4 filed with the SEC on
January 25, 2008 (file number 333-148320))
4.34*
Supplement No. 3, dated as of March 23, 2009, to
the Security Agreement, between the New Grantors referenced therein and
Citicorp North America, Inc., as Collateral Agent
4.35
Pledge Agreement, dated as of July 6, 2007,
among Dollar General Corporation and certain domestic subsidiaries of
Dollar General Corporation, as Pledgors, and Citicorp North
America, Inc., as Collateral Agent (incorporated by reference to
Exhibit 4.5 to Dollar General Corporation's Current Report on
Form 8-K dated July 6, 2007, filed with the SEC on July 12,
2007 (file number 001-11421))
4.36
Supplement No.1, dated as of September 11,
2007, to the Pledge Agreement, between DC Financial, LLC, as
Additional Pledgor, and Citicorp North America, Inc., as Collateral
Agent (incorporated by reference to Exhibit 4.27 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
4.37
Supplement No. 2, dated as of
December 31, 2007, to the Pledge Agreement, between Retail Risk
Solutions, LLC, as Additional Pledgor, and Citicorp North
America, Inc., as Collateral Agent (incorporated by reference to
Exhibit 4.36 to Dollar General Corporation's Amendment No.1 to
Registration Statement on Form S-4 filed with the SEC on
January 25, 2008 (file number 333-148320))
4.38*
Supplement No. 3, dated as of March 23, 2009, to
the Pledge Agreement, between the Additional Pledgors referenced therein
and Citicorp North America, Inc., as Collateral Agent
4.39
ABL Credit Agreement, dated as of July 6,
2007, among Dollar General Corporation, as Parent Borrower, certain
domestic subsidiaries of Dollar General Corporation, as Subsidiary
Borrowers, The CIT Group/Business Credit Inc., as ABL Administrative
Agent, and the other lending institutions from time to time party thereto
(incorporated by reference to Exhibit 4.6 to Dollar General
Corporation's Current Report on Form 8-K dated July 6, 2007,
filed with the SEC on July 12, 2007 (file
number 001-11421))
4.40
Guarantee, dated as of September 11, 2007, to
the ABL Credit Agreement, between DC Financial, LLC and The CIT
Group/Business Credit Inc., as ABL Collateral Agent (incorporated by
reference to Exhibit 4.29 to Dollar General Corporation's
Registration Statement on Form S-4 filed with the SEC on
December 21, 2007 (file number 333-148320))
4.41
Supplement No. 1, dated as of
December 31, 2007, to the Guarantee to the ABL Credit Agreement,
between Retail Risk Solutions, LLC, as New Guarantor, and The CIT
Group/Business Credit Inc., as ABL Collateral Agent (incorporated by
reference to Exhibit 4.37 to Dollar General Corporation's Amendment
No.1 to Registration Statement on Form S-4 filed with the SEC on
January 25, 2008 (file number 333-148320))
4.42*
Supplement No. 2, dated as of March 23, 2009, to
the Guarantee to the ABL Credit Agreement, between the New Guarantors
referenced therein and The CIT Group/Business Credit Inc., as ABL
Collateral Agent
4.43
ABL Security Agreement, dated as of July 6,
2007, among Dollar General Corporation, as Parent Borrower, certain
domestic subsidiaries of Dollar General Corporation, as Subsidiary
Borrowers, collectively the Grantors, and The CIT Group/Business
Credit Inc., as ABL Collateral Agent (incorporated by reference to
Exhibit 4.7 to Dollar General Corporation's Current Report on
Form 8-K dated July 6, 2007, filed with the SEC on July 12,
2007 (file number 001-11421))
4.44
Supplement No.1, dated as of September 11,
2007, to the ABL Security Agreement, between DC Financial, LLC, as
New Grantor, and The CIT Group/Business Credit Inc., as ABL
Collateral Agent (incorporated by reference to Exhibit 4.31 to Dollar
General Corporation's Registration Statement on Form S-4 filed with
the SEC on December 21, 2007 (file
number 333-148320))
172
4.45
Supplement No. 2, dated as of
December 31, 2007, to the ABL Security Agreement, between Retail Risk
Solutions, LLC, as New Grantor, and The CIT Group/Business
Credit Inc., as ABL Collateral Agent (incorporated by reference to
Exhibit 4.38 to Dollar General Corporation's Amendment No.1 to
Registration Statement on Form S-4 filed with the SEC on
January 25, 2008 (file number 333-148320))
4.46*
Supplement No. 3, dated as of March 23, 2009, to
the ABL Security Agreement, between the New Grantors referenced therein
and The CIT Group/Business Credit Inc., as ABL Collateral Agent
5.1*
Opinion of Simpson Thacher &
Bartlett LLP
5.2*
Opinion of Baker, Donelson, Bearman,
Caldwell & Berkowitz, P.C.
10.1
2007 Stock Incentive Plan for Key Employees of
Dollar General Corporation and its Affiliates (incorporated by reference
to Exhibit 10.1 to Dollar General Corporation's Registration
Statement on Form S-4 filed with the SEC on December 21, 2007
(file number 333-148320))
10.2
Amendment No. 1 to the 2007 Stock Incentive Plan
for Key Employees of Dollar General Corporation and its Affiliates
(incorporated by reference to Exhibit 99 to the Company's Current Report
on Form 8-K dated May 29, 2008, filed with the SEC on June 2, 2008 (file
number 001-11421))
10.3
Form of Stock Option Agreement between Dollar
General Corporation and officers of Dollar General Corporation granting
stock options pursuant to the 2007 Stock Incentive Plan (incorporated by
reference to Exhibit 10.2 to Dollar General Corporation's
Registration Statement on Form S-4 filed with the SEC on
December 21, 2007 (file number 333-148320))
10.4
Form of Option Rollover Agreement between Dollar
General Corporation and officers of Dollar General Corporation
(incorporated by reference to Exhibit 10.3 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
10.5
Form of Management Stockholder's Agreement among
Dollar General Corporation, Buck Holdings, L.P. and officers of
Dollar General Corporation (incorporated by reference to Exhibit 10.4
to Dollar General Corporation's Registration Statement on Form S-4
filed with the SEC on December 21, 2007 (file
number 333-148320))
10.6
Form of Sale Participation Agreement between Buck
Holdings, L.P. and certain officer-level employees, dated
July 6, 2007 (incorporated by reference to Exhibit 10.5 to
Dollar General Corporation's Registration Statement on Form S-4 filed
with the SEC on December 21, 2007 (file
number 333-148320))
10.7
1998 Stock Incentive Plan (As Amended and Restated
effective as of May 31, 2006) (incorporated by reference to
Exhibit 99 to Dollar General Corporation's Current Report on
Form 8-K dated May 31, 2006, filed with the SEC on June 2,
2006 (file number 001-11421))
10.8
Amendment to Dollar General Corporation 1998 Stock
Incentive Plan, effective November 28, 2006 (incorporated by
reference to Exhibit 10.8 to Dollar General Corporation's Annual
Report on Form 10-K for the fiscal year ended February 2, 2007,
filed with the SEC on March 29, 2007 (file
number 001-11421))
10.9
Form of Stock Option Grant Notice in connection
with option grants made pursuant to the 1998 Stock Incentive Plan
(incorporated by reference to Dollar General Corporation's Quarterly
Report on Form 10-Q for the quarter ended July 29, 2005, filed
with the SEC on August 25, 2005 (file
number 001-11421))
10.10
Dollar General Corporation CDP/SERP Plan (as
amended and restated effective December 31, 2007) (incorporated by
reference to Exhibit 10.10 to Dollar General Corporation's
Registration Statement on Form S-4 filed with the SEC on
December 21, 2007 (file number 333-148320))
10.11
First Amendment to the Dollar General Corporation
CDP/SERP Plan (as amended and restated effective December 31, 2007)
(incorporated by reference to Exhibit 10.11 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
10.12
Second Amendment to the Dollar General Corporation
CDP/SERP Plan (as amended and restated effective December 31, 2007)
(incorporated by reference to Exhibit 10.6 to Dollar General Corporation's
Quarterly Report on Form 10-Q for the quarter ended August 1, 2008, filed
with the SEC on September 3, 2008 (file number
001-11421))
173
10.13
Dollar General Corporation Annual Incentive Plan
(effective March 16, 2005, as approved by shareholders on
May 24, 2005) (incorporated by reference to Exhibit 10.6 to
Dollar General Corporation's Quarterly Report on Form 10-Q for the
quarter ended July 29, 2005, filed with the SEC on August 25,
2005) (file number 001-11421))
10.14*
Dollar General Corporation 2009 Teamshare Bonus
Program for Named Executive Officers
10.15
Summary of Dollar General Corporation Life
Insurance Program as Applicable to Executive Officers (incorporated by
reference to Exhibit 10.19 to Dollar General Corporation's Annual
Report on Form 10-K for the fiscal year ended February 2, 2007,
filed with the SEC on March 29, 2007) (file
number 001-11421))
10.16
Dollar General Corporation Domestic Relocation
Policy for Officers (incorporated by reference to Exhibit 10.20 to
Dollar General Corporation's Annual Report on Form 10-K for the
fiscal year ended February 2, 2007, filed with the SEC on
March 29, 2007) (file number 001-11421))
10.17
Summary of Director Compensation (incorporated by
reference to Exhibit 10.19 to Dollar General Corporation's
Registration Statement on Form S-4 filed with the SEC on
December 21, 2007 (file number 333-148320))
10.18
Employment Agreement, effective as of
January 11, 2008, between Dollar General Corporation and Richard
Dreiling (incorporated by reference to Exhibit 10.28 to Dollar
General Corporation's Amendment No.1 to Registration Statement on
Form S-4 filed with the SEC on January 25, 2008 (file
number 333-148320))
10.19
Amendment to Employment Agreement, dated December
19, 2008, between Dollar General Corporation and Richard Dreiling
(incorporated by reference to Exhibit 10.19 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))
10.20
Stock Option Agreement, dated as of
January 21, 2008, between Dollar General Corporation and Richard
Dreiling (incorporated by reference to Exhibit 10.29 to Dollar
General Corporation's Amendment No.1 to Registration Statement on
Form S-4 filed with the SEC on January 25, 2008 (file
number 333-148320))
10.21
Restricted Stock Award Agreement, effective as of
January 21, 2008, between Dollar General Corporation and Richard
Dreiling (incorporated by reference to Exhibit 10.32 to Dollar
General Corporation's Amendment No.1 to Registration Statement on
Form S-4 filed with the SEC on January 25, 2008 (file
number 333-148320))
10.22
Management Stockholder's Agreement, dated as of
January 21, 2008, among Dollar General Corporation, Buck
Holdings, L.P. and Richard Dreiling (incorporated by reference to
Exhibit 10.30 to Dollar General Corporation's Amendment No.1 to
Registration Statement on Form S-4 filed with the SEC on
January 25, 2008 (file number 333-148320))
10.23
Sale Participation Agreement, dated
January 21, 2008, between Buck Holdings, L.P. and Richard
Dreiling (incorporated by reference to Exhibit 10.31 to Dollar
General Corporation's Amendment No.1 to Registration Statement on
Form S-4 filed with the SEC on January 25, 2008 (file
number 333-148320))
10.24
Employment Agreement, dated July 6, 2007, by
and between Dollar General Corporation and David L. Beré (incorporated by
reference to Exhibit 10.1 to Dollar General Corporation's Current
Report on Form 8-K dated July 6, 2007, filed with the SEC on
July 12, 2007 (file number 001-11421))
10.25
Extension of Initial Term of Employment Agreement,
dated December 27, 2007, between Dollar General Corporation and David
Beré (incorporated by reference to Exhibit 10.33 to Dollar General
Corporation's Amendment No.1 to Registration Statement on Form S-4
filed with the SEC on January 25, 2008 (file
number 333-148320))
10.26
Notice of Initiation of Transition Period under
Employment Agreement, dated January 8, 2008, by Dollar General
Corporation to David Beré (incorporated by reference to Exhibit 10.34
to Dollar General Corporation's Amendment No.1 to Registration Statement
on Form S-4 filed with the SEC on January 25, 2008 (file
number 333-148320))
10.27
Letter Agreement dated April 9, 2008 between Dollar
General Corporation and David L. Beré (incorporated by reference to
Exhibit 99.1 to Dollar General Corporation's Current Report on Form 8-K
dated April 9, 2008, filed with the SEC on April 10, 2008 (file number
001-11421))
174
10.28
Amendment to Employment Agreement, dated December
17, 2008, between Dollar General Corporation and David L. Beré
(incorporated by reference to Exhibit 10.28 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))
10.29
Employment Agreement with David M. Tehle
effective April 1, 2006 (incorporated by reference to
Exhibit 99.1 to Dollar General Corporation's Current Report on
Form 8-K dated March 30, 2006, filed with the SEC on
April 5, 2006) (file number 001-11421))
10.30
First Amendment to Employment Agreement with David
M. Tehle, dated as of May 9, 2008 (incorporated by reference to Exhibit
99.1 to Dollar General Corporation's Current Report on Form 8-K dated May
9, 2008, filed with the SEC on May 15, 2008 (file number
001-11421))
10.31
Amendment to Employment Agreement, dated December
15, 2008, between Dollar General Corporation and David M. Tehle
(incorporated by reference to Exhibit 10.31 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))
10.32
Employment Agreement with Kathleen R. Guion
effective April 1, 2006 (incorporated by reference to
Exhibit 99.2 to Dollar General Corporation's Current Report on
Form 8-K dated March 30, 2006, filed with the SEC on
April 5, 2006) (file number 001-11421))
10.33
First Amendment to Employment Agreement with
Kathleen R. Guion, dated as of May 9, 2008 (incorporated by reference to
Exhibit 99.2 to Dollar General Corporation's Current Report on Form 8-K
dated May 9, 2008, filed with the SEC on May 15, 2008 (file number
001-11421))
10.34
Amendment to Employment Agreement, dated December
15, 2008, between Dollar General Corporation and Kathleen R. Guion
(incorporated by reference to Exhibit 10.34 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))
10.35
Employment Agreement, dated December 1, 2008,
between Dollar General Corporation and Todd Vasos (incorporated by
reference to Exhibit 10.35 to Dollar General Corporation's Annual Report
on Form 10-K for the fiscal year ended January 30, 2009, filed with the
SEC on March 24, 2009 (file number 001-11421))
10.36
Stock Option Agreement, dated December 19, 2008,
between Dollar General Corporation and Todd Vasos (incorporated by
reference to Exhibit 10.36 to Dollar General Corporation's Annual Report
on Form 10-K for the fiscal year ended January 30, 2009, filed with the
SEC on March 24, 2009 (file number 001-11421))
10.37
Management Stockholder's Agreement, dated December
19, 2008, among Dollar General Corporation, Buck Holdings, L.P., and Todd
Vasos (incorporated by reference to Exhibit 10.37 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))
10.38
Sale Participation Agreement, effective December
19, 2008, between Buck Holdings, L.P. and Todd Vasos (incorporated by
reference to Exhibit 10.38 to Dollar General Corporation's Annual Report
on Form 10-K for the fiscal year ended January 30, 2009, filed with the
SEC on March 24, 2009 (file number 001-11421))
10.39
Employment Agreement, effective April 1, 2006,
between Dollar General Corporation and Susan S. Lanigan (incorporated by
reference to Exhibit 10.39 to Dollar General Corporation's Annual Report
on Form 10-K for the fiscal year ended January 30, 2009, filed with the
SEC on March 24, 2009 (file number 001-11421))
10.40
First Amendment to Employment Agreement with Susan
S. Lanigan, dated as of May 9, 2008 (incorporated by reference to Exhibit
10.40 to Dollar General Corporation's Annual Report on Form 10-K for the
fiscal year ended January 30, 2009, filed with the SEC on March 24, 2009
(file number 001-11421))
10.41
Amendment to Employment Agreement, dated December
15, 2008, between Dollar General Corporation and Susan S. Lanigan
(incorporated by reference to Exhibit 10.41 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended January
30, 2009, filed with the SEC on March 24, 2009 (file number
001-11421))
175
10.36
Monitoring Fee Letter Agreement, dated July 6,
2007, among Buck Holdings, L.P., Dollar General Corporation, Kohlberg
Kravis Roberts & Co L.P., and Goldman, Sachs & Co. (incorporated
by reference to Exhibit 10.25 to Dollar General Corporation's Registration
Statement on Form S-4 filed with the SEC on December 21, 2007 (file number
333-148320))
10.37
Indemnification Agreement, dated July 6, 2007,
among Buck Holdings, L.P., Dollar General Corporation, Kohlberg
Kravis Roberts & Co L.P., and Goldman,
Sachs & Co. (incorporated by reference to Exhibit 10.26
to Dollar General Corporation's Registration Statement on Form S-4
filed with the SEC on December 21, 2007 (file
number 333-148320))
10.38
Purchase Letter Agreement, dated August 15,
2007, between Principal Life Insurance Company and DC Financial, LLC
(incorporated by reference to Exhibit 10.27 to Dollar General
Corporation's Registration Statement on Form S-4 filed with the SEC
on December 21, 2007 (file number 333-148320))
12
Statement Regarding Computation of Ratio of
Earnings to Fixed Charges (incorporated by reference to Exhibit 12 to
Dollar General Corporation's Annual Report on Form 10-K for the fiscal
year ended January 30, 2009, filed with the SEC on March 24, 2009 (file
number 001-11421))
21
List of Subsidiaries of Dollar General Corporation
(incorporated by reference to Exhibit 21 to Dollar General
Corporation's Annual Report on Form 10-K for the fiscal year ended
January 30, 2009, filed with the SEC on March 24, 2009 (file
number 001-11421))
23.1
Consent of Simpson Thacher &
Bartlett LLP (included as part of Exhibit 5.1)
23.2
Consent of Baker, Donelson, Bearman,
Caldwell & Berkowitz, P.C. (included as part of
Exhibit 5.2)
23.3*
Consent of Ernst &
Young LLP
24.1*
Omnibus Power of Attorney
25.1*
Form T-1 Statement of Eligibility under Trust
Indenture Act of 1939 of U.S. Bank National Association with respect to
the Senior Indenture
25.2*
Form T-1 Statement of Eligibility under Trust
Indenture Act of 1939 of U.S. Bank National Association with respect to
the Senior Subordinated Indenture
_______________________
*
Filed
herewith.
176
Item
17.  Undertakings
The
undersigned registrants hereby undertake:
(1)
To file,
during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i)
To
include any prospectus required by Section 10(a)(3) of the Securities Act
of 1933;
(ii)
To
reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in
volume and price represent no more than a 20% change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the
effective registration statement; and
(iii)
To
include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to
such information in the registration statement.
(2)
That, for the
purpose of determining any liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial
bona fide
offering
thereof.
(3)
To remove
from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
(4)
That, for the
purpose of determining liability under the Securities Act of 1933 to any
purchaser, each prospectus filed pursuant to Rule 424(b) as part of a
registration statement relating to an offering, other than registration
statements relying on Rule 430B or other than prospectuses filed in reliance on
Rule 430A, shall be deemed to be part of and included in the registration
statement as of the date it is first used after effectiveness. Provided,
however, that no statement made in a registration statement or prospectus that
is part of the registration statement or made in a document incorporated or
deemed incorporated by reference into the registration statement or prospectus
that is part of the registration statement will, as to a purchaser with a time
of contract of sale prior to such first use, supersede or modify any statement
that was made in the registration statement or prospectus that was part of the
registration statement or made in any such document immediately prior to such
date of first use.
(5)
That, for the
purpose of determining liability of the registrant under the Securities Act of
1933 to any purchaser in the initial distribution of the securities:
The
undersigned registrant undertakes that in a primary offering of securities of
the undersigned registrant pursuant to this registration statement, regardless
of the underwriting method used to sell the securities to the purchaser, if the
securities are offered or sold to such purchaser by means of any of the
following communications, the undersigned registrant will be a seller to the
purchaser and will be considered to offer or sell such securities to such
purchaser:
(i)
Any
preliminary prospectus or prospectus of the undersigned registrant relating to
the offering required to be filed pursuant to Rule 424;
(ii)
Any
free writing prospectus relating to the offering prepared by or on behalf of the
undersigned registrant or used or referred to by the undersigned registrant;
177
(iii)
The
portion of any other free writing prospectus relating to the offering containing
material information about the undersigned registrant or its securities provided
by or on behalf of the undersigned registrant; and
(iv)
Any
other communication that is an offer in the offering made by the undersigned
registrant to the purchaser.
Insofar as
indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers, and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrants of expenses incurred
or paid by a director, officer or controlling person of the registrants in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrants will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
178
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, Dollar General
Corporation has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
DOLLAR GENERAL CORPORATION
By:
/s/
DAVID M. TEHLE
Name: David M. Tehle
Title:
Executive
Vice President & Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chairman & Chief Executive
Officer; Director
(Principal Executive Officer)
Richard W. Dreiling
*
Executive Vice President & Chief
Financial Officer
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Raj Agrawal
*
Director
Michael M. Calbert
*
Director
Adrian Jones
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
179
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, DC
Financial, LLC has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
DC FINANCIAL, LLC
By:
Dollar General Corporation, its Managing
Member
By:
/s/
DAVID M. TEHLE
Name: David M. Tehle
Title:
Executive
Vice President &
Chief Financial
Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chairman, Chief Executive Officer
& Director of
Dollar General Corporation,
Managing Member of
Registrant
(Principal Executive Officer)
Richard W. Dreiling
*
Executive Vice President & Chief
Financial Officer of
Dollar General Corporation,
Managing Member of
Registrant
(Principal Financial and Accounting Officer)
David M. Tehle
*
Director of Dollar General
Corporation
Managing Member of Registrant
Raj Agrawal
*
Director of Dollar General
Corporation
Managing Member of Registrant
Michael M. Calbert
*
Director of Dollar General
Corporation
Managing Member of Registrant
Adrian
 Jones
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
180
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, DG
Logistics, LLC has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
DG LOGISTICS, LLC
By:
/s/
DAVID M. TEHLE
Name: David M. Tehle
Title:
Executive
Vice President & Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chief Executive Officer & Chief
Manager of Registrant
(Principal Executive Officer)
David L. Bere
*
Executive Vice President & Chief
Financial Officer of Registrant and Director of DG Transportation, Inc.,
Sole Member of Registrant
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director of DG
Transportation, Inc.,
Sole Member of Registrant
Susan S. Lanigan
*
Director of DG Transportation,
Inc.,
Sole Member of Registrant
Robert D.
Ravener
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
181
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, DG
Promotions, Inc. has duly caused this Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
DG PROMOTIONS, INC.
By:
/s/
DAVID M. TEHLE
Name: David M. Tehle
Title:
Executive
Vice President & Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chairman & Chief Executive
Officer
(Principal Executive Officer)
David L. Bere
*
Executive Vice President & Chief
Financial Officer; Director
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Susan S.
Lanigan
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
182
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, DG Retail, LLC
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.
DG RETAIL, LLC
By:
/s/
DAVID M. TEHLE
Name: David M. Tehle
Title:
Executive
Vice President & Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chief Executive Officer of
Registrant
(Principal Executive Officer)
David L. Bere
*
Executive Vice President &
Chief Financial Officer of Registrant;
Director of DG Promotions,
Inc., Sole Member of Registrant
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director of DG Promotions,
Inc.,
Sole Member of Registrant
Susan S.
Lanigan
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
183
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, DG
Transportation, Inc. has duly caused this Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Goodlettsville, State of Tennessee, on March 30, 2009.
DG TRANSPORTATION, INC.
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive Vice President
& Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chairman & Chief Executive
Officer
(Principal Executive Officer)
David L. Bere
*
Executive Vice President, Chief
Financial Officer & Director
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Susan S. Lanigan
*
Director
Robert D.
Ravener
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
184
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgencorp of New
York, Inc. has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
DOLGENCORP OF NEW YORK, INC.
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive Vice President
& Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chairman & Chief Executive
Officer
(Principal Executive Officer)
David L. Bere
*
Executive Vice President, Chief
Financial Officer & Director
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Susan S. Lanigan
*
Director
Robert D.
Ravener
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
185
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgencorp of
Texas, Inc. has duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
DOLGENCORP OF TEXAS, INC.
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive Vice President
& Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chairman & Chief Executive
Officer
(Principal Executive Officer)
David L. Bere
*
Executive Vice President, Chief
Financial Officer & Director
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Susan S. Lanigan
*
Director
Robert D.
Ravener
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
186
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgencorp, LLC
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.
DOLGENCORP, LLC
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive Vice President
&
Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chairman & Chief Executive
Officer
(Principal Executive Officer)
David L. Bere
*
Executive Vice President & Chief
Financial Officer
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director of Dollar General
Corporation,
Sole Member of Registrant
Richard W. Dreiling
*
Director of Dollar General
Corporation,
Sole Member of Registrant
Raj Agrawal
*
Director of Dollar General
Corporation,
Sole Member of Registrant
Michael M. Calbert
*
Director of Dollar General
Corporation,
Sole Member of Registrant
Adrian Jones
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
187
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, Dollar General
Partners has duly caused this Registration Statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Goodlettsville,
State of Tennessee, on March 30, 2009.
DOLLAR GENERAL PARTNERS
By:
Dollar General Corporation and DG
Promotions, Inc., its General Partners
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive Vice President
&Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
Chairman, Chief Executive Officer
& Director of
Dollar General Corporation, General Partner of
Registrant
(Principal Executive Officer)
Richard W. Dreiling
*
Chairman & Chief Executive Officer
of
DG Promotions, Inc., General Partner of Registrant
(Principal
Executive Officer)
David L. Bere
*
Executive Vice President & Chief
Financial Officer of
Dollar General Corporation and Executive Vice
President, Chief Financial Officer & Director of DG Promotions, Inc.,
General Partners of Registrant
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director of Dollar General
Corporation, General Partner of Registrant
Raj Agrawal
*
Director of Dollar General
Corporation, General Partner of Registrant
Michael M. Calbert
*
Director of Dollar General
Corporation, General Partner of Registrant
Adrian Jones
*
Director of DG Promotions, Inc.,
General Partner of Registrant
Susan S.
Lanigan
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
188
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, Retail Risk
Solutions, LLC has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
RETAIL RISK SOLUTIONS, LLC
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Vice President & Chief
Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
President
(Principal Executive
Officer)
David L. Bere
*
Vice President & Chief Financial
Officer
(Principal Financial  and Accounting Officer)
David M. Tehle
*
Director of Dollar General
Corporation,
Sole Member of Registrant
Richard W. Dreiling
*
Director of Dollar General
Corporation,
Sole Member of Registrant
Raj Agrawal
*
Director of Dollar General
Corporation,
Sole Member of Registrant
Michael M. Calbert
*
Director of Dollar General
Corporation,
Sole Member of Registrant
Adrian Jones
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
189
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, South Boston
FF&E, LLC has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
SOUTH BOSTON FF&E, LLC
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Vice
President &
Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
President
(Principal Executive
Officer)
David L. Bere
*
Vice President & Chief Financial
Officer of Registrant and Director of South Boston Holdings, Inc., Sole
General Partner of the Sole Member of Registrant
(Principal Financial
and Accounting Officer)
David M. Tehle
*
Director of South Boston Holdings,
Inc., Sole General Partner of the Sole Member of Registrant
Anita C.
Elliott
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
190
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, South Boston
Holdings, Inc. has duly caused this Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
SOUTH BOSTON HOLDINGS, INC.
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Vice
President &
Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009.
Signature
Capacity
*
President
(Principal Executive
Officer)
David L. Bere
*
Vice President & Chief Financial
Officer; Director
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Anita C.
Elliott
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
191
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended,
Sun-Dollar, L.P. has duly caused this Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Goodlettsville, State of Tennessee, on March 30, 2009.
SUN-DOLLAR, L.P.
By:
South Boston Holdings, Inc., its General
Partner
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Vice President & Chief
Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009
Signature
Capacity
*
President of South Boston Holdings,
Inc.,
Sole General Partner of Registrant
(Principal Executive
Officer)
David L. Bere
*
Vice President, Chief Financial
Officer & Director of
South Boston Holdings, Inc.,
Sole General
Partner of Registrant
(Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Anita C.
Elliott
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
192
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgen I, Inc. has
duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.
DOLGEN I, INC.
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive Vice
President & Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009
Signature
Capacity
*
Chairman & Chief Executive
Officer
(Principal Executive Officer)
David L. Bere
*
Executive Vice President, Chief
Financial Officer & Director (Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Susan S. Lanigan
*
Director
Robert D.
Ravener
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
193
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgen II, Inc. has
duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.
DOLGEN II, INC.
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive Vice
President & Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009
Signature
Capacity
*
Chairman & Chief Executive
Officer
(Principal Executive Officer)
David L. Bere
*
Executive Vice President, Chief
Financial Officer & Director (Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Susan S. Lanigan
*
Director
Robert D.
Ravener
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
194
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, Dolgen III, Inc. has
duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.
DOLGEN III, INC.
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive Vice
President & Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009
Signature
Capacity
*
Chairman & Chief Executive
Officer
(Principal Executive Officer)
David L. Bere
*
Executive Vice President, Chief
Financial Officer & Director (Principal Financial and Accounting
Officer)
David M. Tehle
*
Director
Susan S. Lanigan
*
Director
Robert D.
Ravener
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
195
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, DG Strategic I, LLC
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.
DG STRATEGIC I, LLC
By:
Dollar General Corporation, its Sole
Member
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive
Vice President
& Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009
Signature
Capacity
*
Chairman, Chief Executive Officer
& Director of
Dollar General Corporation, the Sole Member of
Registrant
(Principal Executive Officer)
Richard W. Dreiling
*
Executive Vice President & Chief
Financial Officer of
Dollar General Corporation, the Sole Member of
Registrant
(Principal Financial and Accounting Officer)
David M. Tehle
*
Director of Dollar General
Corporation,
the Sole Member of Registrant
Raj Agrawal
*
Director of Dollar General
Corporation,
the Sole Member of Registrant
Michael M. Calbert
*
Director of Dollar General
Corporation,
the Sole Member of Registrant
Adrian Jones
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
196
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, DG Strategic II, LLC
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Goodlettsville, State of
Tennessee, on March 30, 2009.
DG STRATEGIC II, LLC
By:
Dollar General Corporation, its Sole
Member
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive
Vice President
& Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009
Signature
Capacity
*
Chairman, Chief Executive Officer
& Director of
Dollar General Corporation, the Sole Member of
Registrant
(Principal Executive Officer)
Richard W. Dreiling
*
Executive Vice President & Chief
Financial Officer of
Dollar General Corporation, the Sole Member of
Registrant
(Principal Financial and Accounting Officer)
David M. Tehle
*
Director of Dollar General
Corporation,
the Sole Member of Registrant
Raj Agrawal
*
Director of Dollar General
Corporation,
the Sole Member of Registrant
Michael M. Calbert
*
Director of Dollar General
Corporation,
the Sole Member of Registrant
Adrian Jones
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
197
SIGNATURES
Pursuant to
the requirements of the Securities Act of 1933, as amended, DG Strategic III,
LLC has duly caused this Registration Statement to be signed on its behalf by
the undersigned, thereunto duly authorized, in the City of Goodlettsville, State
of Tennessee, on March 30, 2009.
DG STRATEGIC III, LLC
By:
Dollar General Corporation, its Sole
Member
By:
/s/
DAVID M. TEHLE
Name:
David
M. Tehle
Title:
Executive
Vice President
& Chief Financial Officer
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities indicated on March 30,
2009
Signature
Capacity
*
Chairman, Chief Executive Officer
& Director of
Dollar General Corporation, the Sole Member of
Registrant
(Principal Executive Officer)
Richard W. Dreiling
*
Executive Vice President & Chief
Financial Officer of
Dollar General Corporation, the Sole Member of
Registrant
(Principal Financial and Accounting Officer)
David M. Tehle
*
Director of Dollar General
Corporation,
the Sole Member of Registrant
Raj Agrawal
*
Director of Dollar General
Corporation,
the Sole Member of Registrant
Michael M. Calbert
*
Director of Dollar General
Corporation,
the Sole Member of Registrant
Adrian Jones
*
By:
/s/
SUSAN S. LANIGAN
Attorney-in-Fact
198