##### 



SUPPLY AGREEMENT  (Combo Stores)
 THIS SUPPLY AGREEMENT (Combo Stores)
 BACKGROUND
     NOW, THEREFORE
 DEFINITIONS
  Consignment Property




---



##### 



Consignment Obligations
 Covered Stores
 Covered Store Schedule Exhibit A Exhibit
A
 Force Majeure
 Gross Sales
 Licensed Department
 Licensed Department Supply Agreement
 Merchandise
 Net Sales
 Shoe Department
 SKU
 2




---



##### 



Suppliers Supervisor
 GRANT OF SUPPLY RIGHT
 SUPPLY OF MERCHANDISE
 MERCHANDISING AND PRICE PRACTICES
 Merchandise Supplied
 Compliance with Law
 Delivery Responsibility
 3




---



##### 



Transfers of Refunded Merchandise in non-Covered Stores.
 Prices and Discounts
 Supervisors
 Space
 Utilities and Personnel
 Advertising; License
 4




---



##### 



Standards of Operation
         5




---



##### 



FIXTURES, EQUIPMENT, LOCATION AND LAYOUT
 SALES REVENUE SHARING; ACCOUNTING PROCEDURES
 Sales
 Reports
 Books & Records
 Filenes Fee
 6




---



##### 



Accounting
   Settlement less
 TERM AND TERMINATION
 Basic Term and Renewals
 Termination for Breach
   Effect of Termination
 7




---



##### 



SHORTAGES AND DAMAGES
 IDENTITY, INDEMNITY AND RELATIONSHIP TO PARTIES
 No Agency
 Indemnity of Filenes
 Indemnity of Supplier
 Indemnification Procedure
 Notice
 Defense of Admitted Indemnified Claim
 8




---



##### 



Disputed Indemnity
 INSURANCE DAMAGE
 Supplier Liability Insurance
 Supplier Casualty Insurance
 Filenes Liability Insurance
 Filenes Worker Compensation Insurance
 LIENS AND TAXES
 9




---



##### 



DEFAULT
      SUPPLIERS LENDER
 Security Interest/Consignment
   10




---



##### 



Notice of Identity
 Collateral
    11




---



##### 



14.
  
  MISCELLANEOUS.
 Indulgences, Etc
 12




---



##### 



Confidentiality
 Controlling Law
 Notices
 To Filenes:
    
    Filenes Basement Inc.12 Gill Street, Suite 1600Woburn, MA 01801Attn: Jim Ruddandwith a copy to:
    
    General Counsel3241 Westerville RoadColumbus, OH 43224If to Supplier:
    
    DSW Inc.4150 East Fifth AvenueColumbus, OH 43219Attn: Doug ProbstandGeneral Counsel3241 Westerville RoadColumbus, OH 43224
  Arbitration
  13




---



##### 



Binding Nature of Agreement
 Execution of Counterparts
 Provisions Separable
 Entire Agreement
 Paragraph Headings
 14




---



##### 



Gender, Etc
 Number of Days
 Assignment
 No Conflict
 Amendment/Waiver
 Third Party Beneficiaries
 Force Majeure
 AMENDMENT AND RESTATEMENT
  15




---



##### 



IN WITNESS WHEREOF,
 DSW INC.By:
    
    /s/ Peter Z. HorvathPrinted Name: Peter Z. HorvathTitle: Executive Vice PresidentFILENES BASEMENT INC.By:
    
    /s/ James A. McGradyPrinted Name: James A. McGradyTitle: Executive Vice President
 16




---



##### 



Date:  Amendment:
 EXHIBIT A  Covered Store Schedule
 
 Unit
    
    Name
    
    Street Address
    
    City
    
    State
    
    Zip
    
    Sq. Feet53800
    
    SAWMILL
    
    3700 W. Dublin-Granville Rd.
    
    Columbus
    
    OH
    
    
    43235
    
    
    
    22,20156000
    
    JERSEY GARDENS
    
    651 Kapkowski Rd
    
    Elizabeth
    
    NJ
    
    
    07021
    
    
    
    13,652
 Filenes Basement Inc.
    
    
    
    DSW Inc.By:
    
    /s/ James A. McGrady
    
    
    
    By:
    
    /s/ Peter Z. HorvathName: James A. McGrady
    
    
    
    Name: Peter Z. HorvathTitle: Executive Vice President
    
    
    
    Title: Executive Vice President