Case Document 1276 Filed in TXSB on 10/26/11 Page 1 of 8

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1 Case Document 1276 Filed in TXSB on 10/26/11 Page 1 of 8 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS VICTORIA DIVISION IN RE: LACK S STORES, INCORPORATED, ET AL., 1 DEBTORS. Case No (Chapter 11) (Jointly Administered) NOTICE OF INTENT TO TAKE RULE 2004 EXAMINATION TO: Michael Aliberto c/o Brent R. McIlwain Patton Boggs LLP 2000 McKinney, Suite 1700 Dallas, Texas PLEASE TAKE NOTICE THAT, pursuant to Federal Rule of Bankruptcy Procedure 2004 and Local Bankruptcy Rule 2004, Lack s Stores, Incorporated, Merchandise Acceptance Corporation, Lack s Furniture Centers, Inc., and Lack Properties, Inc. (collectively, the Debtors ) intend to take the examination of Michael Aliberto, an officer, agent, and representative of The CIT Group / Business Credit, Inc. The examination will take place at the offices of Vinson & Elkins LLP, 666 Fifth Avenue, 26 th Floor, New York, New York , and will commence at 9:00 a.m. on November 29, The examination will continue from day to day until it has been completed and will be recorded by stenographic means. The examination may also be video taped. 1 The Debtors and the last four digits of their tax identification numbers are Lack s Stores, Incorporated (6528), Merchandise Acceptance Corporation (0972), Lack s Furniture Centers, Inc. (9468), and Lack Properties, Inc. (8961).

2 Case Document 1276 Filed in TXSB on 10/26/11 Page 2 of 8 SCOPE OF EXAMINATION The scope of the examination will include, but not be limited to, the following topics: The proofs of claim filed in the Bankruptcy Cases by or on behalf of CIT and/or the Bank Group (Claim Nos. 183, 187, 188, and 191 on the Official Claims Register) including, but not limited to, the composition, priority, allowability, and/or payment of such claims. The value of the Collateral. Any matters arising out of, or relating to, the Debtors consumer installment receivables or collections with respect to the Debtors consumer installment receivables. Documents created and/or exchanged by and among CIT and the Bank Group pertaining to the Loan Agreement or the Bankruptcy Cases. Negotiations and/or discussions had by and among CIT and the Bank Group pertaining to the Loan Agreement or the Bankruptcy Cases. Negotiations and/or discussions had by and among CIT and the Debtors pertaining to the Loan Agreement or the Bankruptcy Cases. Negotiations and/or discussions by and among CIT and any Person regarding the sale or purchase of: (a) all or a portion of the Collateral; and (b) the claims allegedly held by CIT and/or the Bank Group pursuant to the Loan Agreement. The prepetition and postpetition relationship between the Debtors, CIT, and the Bank Group, including, but not limited to, all Documents, discussions, and/or negotiations regarding (a) the filing of the Bankruptcy Cases, (b) postpetition financing, (c) sale or liquidation of the Collateral, and (d) the Debtors continuing use of cash collateral. The actions of CIT and/or the Bank Group leading up to and after the filing of the Bankruptcy Cases.

3 Case Document 1276 Filed in TXSB on 10/26/11 Page 3 of 8 DOCUMENT PRODUCTION CIT shall produce the documents that are listed on Exhibit 1 attached hereto. Such documents shall be produced and made available to Lack s undersigned counsel, Vinson & Elkins LLP, 2001 Ross Avenue, Suite 3700, Dallas, TX 75201, no later than November 8, Notwithstanding the requirement set forth in Local Bankruptcy Rule (f), the Debtors shall have until November 8, 2011 to lodge objections with respect to the document requests set forth on Exhibit 1. Dated: October 26, 2011 Respectfully submitted, VINSON & ELKINS LLP By: /s/ Paul E. Heath Daniel C. Stewart, SBT # James J. Lee, SBT # Paul E. Heath, SBT # Michaela C. Crocker, SBT # Ross Avenue, Suite 3700 Dallas, Texas Tel: Fax: mcrocker@velaw.com CERTIFICATE OF CONFERENCE I have communicated my request for this 2004 exam to Brent McIlwain, counsel for CIT via telephone conferences on October 17 and 20, Counsel for CIT indicated that CIT is considering whether or not it opposes the examination sought herein. /s/ Paul E. Heath

4 Case Document 1276 Filed in TXSB on 10/26/11 Page 4 of 8 EXHIBIT 1 Items to be Produced Prior to the 2004 Examination DEFINITIONS AND INSTRUCTIONS 1. And as well as or shall be construed either disjunctively or conjunctively in order to bring within the scope of this examination request any information that might otherwise be construed to be outside its scope. 2. Bank Group means the lenders identified in the Loan Agreement, individually or collectively, including their respective agents, representatives and Persons acting or purporting to act on their behalf. 3. Bankruptcy Cases means the Debtors respective bankruptcy cases pending in the United States Bankruptcy Court for the Southern District of Texas, Victoria Division. 4. CIT shall mean The CIT Group/Business Credit, Inc., in its capacity as administrative agent for the lenders identified in the Loan Agreement or as an individual lender under the Loan Agreement, including their respective agents, representatives and Persons acting or purporting to act on their behalf. 5. Collateral shall have the meaning assigned to it in the Loan Agreement. 6. Debtors shall refer to Lack s Stores, Incorporated, Lack Properties, Inc., Lack s Furniture Centers, Inc., and/or Merchandise Acceptance Corporation, including their respective agents, representatives and Persons acting or purporting to act on their behalf. 7. Documents shall mean any and all written, printed, typed, drawn, punched, taped, filed, photographic, recorded, graphic, or electronic matter in its entirety, including any addenda, supplements, amendments, revisions, exhibits, and appendices thereto, in its original form (or copies thereof), including copies of originals with different markings thereon, which are in Your possession, custody or control, including but not limited to, any accounts, records, affidavits, books, pamphlets, brochures, catalogs, periodicals, publications, advertisements, schedules, lists, manuals, letters, correspondence, telegrams, telephone records, memoranda, contracts, leases, loans, invoices, manifests, logs, computer records, electronic records, s, bulletins, studies, surveys, call reports, sales letters, charts, graphs, indices, data sheets, intercompany communications, reports, plans, worksheets, notes, bills, checks, bank statements, ledgers, journals, travel records, desk calendars, minutes, transcripts, accounting records, financial records, bookkeeping records, photograph, phone records, tape recordings, videotapes, annual reports, production reports, payment requests, payment vouchers, applications for payment, statements, estimates, or other forms of data compilation. 8. Loan Agreement refers to the Second Amended and Restated Loan and Security Agreement, dated as of July 10, 2007, by and among CIT and Lack s Stores, Incorporated, including all amendments thereto.

5 Case Document 1276 Filed in TXSB on 10/26/11 Page 5 of 8 9. Person means any natural person, public or private corporation, partnership, joint venture, association, group, government or governmental entity (including any governmental agency or political subdivision of any government), and any other form of business or legal organization arrangement. 10. Plan means the Joint Plan of Reorganization for the Debtors ( , Dkt. No. 1250). 11. Senior Debt means any of the Debtors obligations to CIT under the Loan Agreement. 12. You or Your means CIT, including its agents, representatives, and all persons acting or purporting to act on its behalf. 13. Wherever a noun appears, it shall be construed either to be singular or plural in order to bring within the scope of this examination request any information which otherwise may be construed to be outside its scope. 14. To the extent possible, Documents shall be produced electronically, in Microsoft Excel format. Documents shall be produced in exactly the manner in which they are kept in the usual course of business or organized and labeled to correspond with the categories which follow in this request. 15. Unless a different time period is specified, the applicable time period for each Document request shall run from January 1, 2008 through the present. 16. If there are no Documents in existence that are responsive to a particular paragraph of this request, the response must include a statement to that effect. 17. If Documents once existed that were in Your possession, custody, or control, but are no longer in Your possession, custody, or control for any reason, please identify the specific circumstances under which You lost possession, custody, or control and identify Your understanding of the Documents current whereabouts, or the manner in which You disposed of the Documents. 18. In the event that any Document called for has been destroyed, discarded, or otherwise disposed of, identify the Document by stating the following: (a) its author or preparer; (b) all addressee(s) to whom the Document was sent; (c) the date the Document was created; (d) the subject matter and content of the Document; (e) the number of pages contained within the Document; (f) whether any attachments or appendices were included within the Document; (g) all Persons to whom the Document was distributed or shown; (h) the date the Document was destroyed or otherwise disposed of; (i) the matter of destruction or other disposition; (j) the reason for the destruction or other disposition; and (k) the Person destroying the Document. 19. All Documents are to be produced that are in Your possession, custody or control, including Documents in the possession, custody, or control of Your attorneys, investigators, agents, employees, officers, accountants, independent contractors, subcontractors, consultants, experts, or other representatives. If You cannot answer or

6 Case Document 1276 Filed in TXSB on 10/26/11 Page 6 of 8 respond in full after exercising due diligence to secure the information, answer or respond to the extent possible, specifying your inability to answer or respond to the remainder. 20. To the extent the location of any Document called for by this request is unknown to You, so state. If any estimate can reasonably be made as to the location of an unknown Document, describe the Document with sufficient particularity so that it can be identified, set forth Your best estimate of the Document s location, and describe the basis upon which the estimate is made. 21. These requests are continuing. If You or any Person acting on Your behalf obtains additional Documents called for by these requests between the time of Your response and the time set for a hearing to confirm the Plan, such Documents shall be promptly produced. 22. In responding to these requests for production of Documents, You are required to make a diligent search for all available Documents within Your actual and constructive possession, custody, or control, and not merely such Documents within the personal possession of the individual answering these requests. 23. If any of the requested Documents fall within the scope of this request, but have not been produced because of any claim of privilege, please provide the following information as to each Document to which such claim is made: (a) the date the Document was created; (b) the name and address of its maker; (c) the name and address of each Person who has seen and/or reviewed each such Document; (d) the name and address of each Person listed as an addressee, whether as addressee or copied; (e) a brief description of the subject matter of the Document; (f) the nature of the privilege or immunity claimed; and (g) a summary of all facts and circumstances upon which such a claim is based. 24. If any objection is made to any request contained herein, state for the item or category objected to: (a) the specific ground for each objection and (b) a description of the subject matter of each responsive Document or item.

7 Case Document 1276 Filed in TXSB on 10/26/11 Page 7 of 8 DOCUMENTS TO BE PRODUCED IN CONNECTION WITH EXAMINATION 1. Any and all Documents pertaining to the composition, priority, allowability, and/or payment of the claims allegedly held by CIT and/or the Bank Group pursuant to the Loan Agreement. 2. Any and all Documents pertaining to the valuation of the Collateral, including, but not limited to all internal correspondence, reports, and credit memoranda. 3. Any and all Documents discussing, detailing, analyzing, or pertaining to the Collateral, including, but not limited to, the liquidation or sale of the Collateral. 4. Any and all Documents discussing, detailing, analyzing, or pertaining to the Debtors consumer installment receivables or collections with respect to the Debtors consumer installment receivables. 5. Any and all Documents that project the timing and amount of payments received or expected to be received in relation to the Loan Agreement, including, but not limited to, any pay off or recovery analysis. 6. Any and all Documents discussing, detailing, analyzing, or pertaining to any capital or loan reserves taken by CIT and/or the Bank Group with respect to the Loan Agreement or the Senior Debt. 7. Any and all Documents related to a desired, proposed, contemplated, or possible sale or purchase of the claims allegedly held by CIT and/or the Bank Group pursuant to the Loan Agreement. 8. Any and all Documents, including, but not limited to, communications, s, or other correspondence, by and between CIT, the Bank Group, and/or any Person regarding the Loan Agreement or Collateral. 9. Any and all Documents detailing professional fees and expenses incurred by CIT and/or the Bank Group in relation to the Loan Agreement, including, but not limited to, invoices and other bills. 10. Any and all Documents discussing or pertaining to threats and demands made by CIT and/or the Bank Group to or upon the Debtors from June 1, 2010 to the Petition Date. 11. Any and all Documents discussing, detailing, analyzing, or pertaining to potential debtorin-possession financing involving the Debtors. 12. Any and all Documents discussing, detailing, analyzing, or pertaining to the Debtors continued use of cash collateral. 13. Any and all Documents identifying the name of any Persons that CIT or the Bank Group may employ or rely upon to provide expert testimony in connection with confirmation of Plan, along with any Documents reviewed, relied upon or prepared by such Persons.

8 Case Document 1276 Filed in TXSB on 10/26/11 Page 8 of Any and all Documents and other materials used to prepare or support any other items requested through this Document request and Notice of 2004 Examination.