Operator

Your next question comes from Tracy Kogan with Credit Suisse.

Tracy Kogan - Credit Suisse

Thanks, just a quick follow-up on the last question; I assume that the new committed lines do you have covenants and can you just say are these covenants in terms of the leverage and coverage ratios the same as your other covenants and then can you give us the actual number that you would add at the end of the quarter. I know you said you’re in compliance, but if you could give us the number, that would be great. Thanks.

Ed Larsen

Tracy we are still in final discussions with the banks on the terms on the dates and on possible covenants, so we are not prepared to discuss that at this time.

Operator

Your next question comes from Kimberly Greenberger with Citigroup.

Kimberly Greenberger – Citigroup

Hi thank you good morning. I’m sorry I didn’t hear the answer to Tracy’s second question on your income plans at the end of the third quarter and if you could just give us what those metrics were, that would be helpful and then I’ll ask my question after that.

Ed Larsen

Sure, they moved on too fast. The only covenant we’ve ever had a problem with is the leverage covenant. Our threshold is 4 and we were at 3.5.

Kimberly Greenberger – Citigroup

Okay, and Ed could you comment on any vendors or factors that are cutting back on their ability to underwrite your receivables; any factors no longer proving orders or any vendors that you have on board with your open account terms at the beginning of the year pulling back?

Ed Larsen

I’m not aware of any vendors or factors that have reduced their commitments to Talbots. About 95% of our vendors or volume is on open account, a very limited amount is on LC’s and they are very well supporting us all the way through. They are eager to do business with us.

Operator

Your next question comes from Betty Chen with Wedbush Morgan.

Betty Chen - Wedbush Morgan

Thank you, good morning. Ed I was wondering if you can remind us; I think the vendor terms were valid for this year that you had mentioned they would be up for renegotiation. So, could you let us know maybe on the timing and the process and then also what is your anticipative free cash flow by the end of this year? Thank you.