Warrant Exercise Event

Warrant Exercise Event. The occurrence, for FY 1998, as reflected on the Company's FY 1998 Audited Statements, of one or both of the following: (a) Store Contribution is less than or equal to the FY 1998 Store Contribution Percentage of the Company's sales (excluding proceeds from real estate sale-leaseback transactions), or (b) Administration Expense exceeds twenty million dollars ($20,000,000).