TALBOTS INC
EX-10.1 AMENDMENT, DATED AS OF FEBRUARY 5, 2009, TO REVOLVING CREDIT AGREEMENT
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<TYPE>EX-10.1
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<FILENAME>b74609ttexv10w1.htm
<DESCRIPTION>EX-10.1 AMENDMENT, DATED AS OF FEBRUARY 5, 2009, TO REVOLVING CREDIT AGREEMENT
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.1
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt">TWELFTH AMENDMENT OF REVOLVING CREDIT AGREEMENT
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>TWELFTH AMENDMENT </B>(this &#147;<U>Twelfth Amendment</U>&#148;), dated as of February&nbsp;5, 2009, to the
REVOLVING CREDIT AGREEMENT dated as of January&nbsp;25, 1994 (as amended and modified prior to the date
hereof, the &#147;<U>Agreement</U>&#148;) between THE TALBOTS, INC. (the &#147;<U>Borrower</U>&#148;) and SUMITOMO
MITSUI BANKING CORPORATION (as successor to The Sakura Bank, Limited, New York Branch) (the
&#147;<U>Bank</U>&#148;).
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>WITNESSETH:</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Borrower and the Bank wish to amend the Agreement in certain respects as set
forth herein;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises, covenants and agreements contained herein,
the parties hereto hereby agree as follows:
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE I</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>DEFINITIONS</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise indicated, capitalized terms used herein and defined in the Agreement shall
have the respective meanings ascribed thereto in the Agreement.
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>ARTICLE II<BR>
AMENDMENTS</B>
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    <TD width="1%" nowrap align="left">2.01.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Definitions</U>. Section 1(a) of the Agreement shall be amended by deleting the
following defined terms: &#147;Capital Stock&#148;, &#147;Capitalized Lease Obligations&#148;, &#147;Consolidated
EBITDA&#148;, &#147;Consolidated EBITDAR&#148;, &#147;Consolidated Net Income&#148;, &#147;Consolidated Net Interest
Expense&#148;, &#147;Consolidated Net Worth&#148;, &#147;Disposition&#148;, &#147;Fixed Charge Coverage Ratio&#148;, &#147;GAAP&#148;,
&#147;Hedging Agreements&#148;, &#147;Indebtedness&#148;, &#147;Leverage Ratio&#148;, &#147;Operating Lease Obligations&#148;,
&#147;Subsidiary&#148;, and &#147;Total Indebtedness&#148;.</TD>
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    <TD width="1%" nowrap align="left">2.02.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Covenants</U>. Section&nbsp;10 of the Agreement shall be amended by deleting subsections
(f), (g), and (h), which are captioned, &#147;<U>Leverage Ratio</U>&#148;, &#147;<U>Net Worth</U>&#148;, and
&#147;<U>Fixed Charge Coverage Ratio</U>&#148;, respectively.</TD>
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>ARTICLE III<BR>
MISCELLANEOUS</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.01. <U>Effectiveness</U>. Conditioned on the truth and accuracy of the representations made in
Section&nbsp;3.02 hereof, this Twelfth Amendment shall become effective as of the date hereof when the
Bank shall have received a copy of this Twelfth Amendment executed by the parties hereto.
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.02. <U>Representations</U>. The Borrower hereby represents and warrants that, after giving
effect to this Twelfth Amendment, except as disclosed to the Bank in writing prior to the date
hereof,
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">(i)&nbsp;no Event of Default exists, and (ii)&nbsp;all representations and warranties contained in the Agreement
are true and correct in all material respects. The Borrower makes the representations and
warranties in the Agreement with respect to its execution and delivery as to the execution and
delivery of this Twelfth Amendment.
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.03. <U>Expenses</U>. The Borrower agrees to pay on demand all out-of-pocket costs and expenses
incurred by the Bank in connection with the administration, modification and amendment of the
Agreement, as amended by this Twelfth Amendment, including, without limitation, the reasonable fees
and out-of-pocket expenses of counsel to the Bank with respect thereto and with respect to advising
the Bank as to its rights and responsibilities thereunder, and all costs and expenses, if any
(including, without limitation, reasonable counsel fees and expenses), in connection with the
enforcement thereof (whether through negotiations, legal proceedings or otherwise).
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.04. <U>Ratification</U>. The Agreement shall remain in full force and effect in its original
form when this Twelfth Amendment shall become effective except as heretofore amended and as the
Agreement is specifically amended by the terms of this Twelfth Amendment.
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.05. <U>Cross-references</U>. Any reference to the Agreement made in the Agreement or any
related document by either party hereto shall henceforth be to the Agreement as amended by this
Twelfth Amendment.
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.06. <U>Execution in Counterparts</U>. This Twelfth Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.07. <U>Titles and Headings</U>. The titles and headings of sections of this Twelfth Amendment
are intended for convenience only and shall not in any way affect the meaning or construction of
any provisions of this Twelfth Amendment.
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.08. <U>Governing Law.</U> This Twelfth Amendment shall be considered an agreement under the
laws in effect in the State of New York and for all purposes shall be construed in accordance with
such laws without giving effect to the conflict of laws provisions contained therein.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Twelfth Amendment to be executed by
their respective officers thereunto duly authorized, as of the date first above written.
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    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">THE TALBOTS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Carol Stone
&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Carol Stone&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Senior Vice President, Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD colspan="5">&nbsp;</TD>
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    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">SUMITOMO MITSUI BANKING CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Manabu Hirabayashi
&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Manabu Hirabayashi&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Senior Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD colspan="5">&nbsp;</TD>
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