Document:

<PAGE>

Exhibit 10.21

     THIS DOCUMENT IS SUBJECT TO A CONFIDENTIAL TREATMENT REQUEST ON FILE WITH
THE SECURITIES AND EXCHANGE COMMISSION. WHERE APPROPRIATE, THE CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND REPLACED WITH *** OR
*** CONFIDENTIAL TREATMENT REQUESTED ***.

                                                                  Final 12-22-99

                           MASTER SERVICES AGREEMENT

     This agreement ("Agreement") is entered into as of the 22nd day of
December, 1999 ("Effective Date"), by and between DigitalWork,com, Inc. .
("Company"), and Dell Products, L.P. ("Dell"), a Texas Limited Partnership. Dell
Computer Corporation ("DCC") and any of its corporate subsidiaries or affiliates
may purchase Services (as defined below) and enjoy the benefits of this
Agreement, but all liabilities and obligations incurred by Dell, DCC, or any of
DCC's subsidiaries or affiliates under this Agreement will be the sole
responsibility of Dell.

                                    RECITALS

     A.   Whereas, Company offers portal services on the World Wide Web at
www.digitalwork.com wherein it provides search services and navigation as well
as community, business and consumer e-commerce solutions from its service
partners.  Company syndicates and bundles these portal services for resale by
third parties; and

     B.   Whereas, Dell is a leading global retailer of computer products and
maintains a site on the Internet at <www.dell.com> which, among other things,
allows its users to purchase computer products.  Dell desires to expand its
services to its customers through a unique World Wide Web site; and

     C.   Whereas, Dell and Company desire to create a Dell-branded small
business portal called "DellBizNet" which will offer the best in class content,
communications, community and e-commerce functionality of Company and its
service partners to Dell customers; and

     D.   Whereas, Dell and Company desire to set forth in writing their mutual
intent and understanding of the scope and terms of such engagement.

                                   AGREEMENT

     Now, therefore, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

1.   Definitions

     As used in this Agreement, the following terms shall have the following
meanings, unless the context otherwise requires.  Certain other terms are
defined elsewhere in this Agreement.

     1.1  "Acceptance" means the acceptance by Dell of a Deliverable specified
in a Work Statement as described in Section 2.

     1.2  "Affiliate" means, with respect to either party, any individual or
entity that, by virtue of a majority ownership interest, directly or indirectly
through one or more intermediaries controls, is controlled by or is under common
control with that party.

     1.3  "Agreement" means this Master Services Agreement between Dell and
Company, as amended from time to time.

     1.4  "Code" means all computer programming code (both object and source,
unless otherwise specified) and application program interfaces ("APIs"), as
modified or enhanced from time to time by Company, including, without
limitation, all interfaces, navigational devices, menu structures or
arrangements, icons, help, operational instructions, commands, syntax, HTML
(hyper-text markup language), design, templates written in ASP source code,
Java, Javascript, VB Script, or other scripting languages and any code created
by Cold Fusion,
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                       CONFIDENTIAL TREATMENT REQUESTED

FrontPage, DreamWeaver or any other HTML editor and the literal and non-literal
expressions of ideas that operate, cause, create, direct, manipulate, access or
otherwise affect the Content whether created or licensed from third parties by
Company including, without limitation, any copyrights, trade secrets and other
intellectual or industrial property rights therein.

     1.5  "Confidential Information" means, except as otherwise specifically
provided in the Agreement, each party's (a) trade secrets under applicable law
(including, without limitation, financial information, processes, formulas,
specifications, programs, instructions, technical know-how, methods and
procedures for operation, and benchmark test results); (b) any confidential or
other proprietary information, whether of a technical, business or other nature
that is of value to the owner of such information and is treated as confidential
(including, without limitation, End-User Data, information about employees,
customers, marketing strategies, services, business or technical plans and
proposals, in any form); (c) any other information identified by a party as
"Confidential Information"; (d) any other information relating to party that is
or should be reasonably understood to be confidential or proprietary; and (e)
the terms of this Agreement.

     1.6  "Content" means all text, graphics, animation, audio and/or digital
video components and all other components of the Deliverables and the selection
and arrangement thereof including all Intellectual Property Rights therein, but
does not include Code whether created by Company or provided by Dell for
purposes of developing the Deliverables.

     1.7  "Cookie(s)" means a small data packet that is placed on a End-User's
computer once they have accessed a Web site.

     1.8  "Cookie Information" means any information that resides in or is
associated with the use of a Cookie, including, without limitation, a log file.

     1.9  "Deliverables" means all Code, Content and other online materials and
services to be produced by Company hereunder as more fully described in a Work
Statement. Deliverables also include all reports, project reviews, inspection
and tests conducted during the course of performance hereunder, and all
documentation such as technical manuals and other written materials that relate
to particular Code, which may include materials useful for design (e.g., logic
manuals, flow charts, and principals of operation); provided, however, that
documentation does not include end-user instructions, manuals or other operating
documentation or materials.

     1.10  "Dell Competitor" means any entity or Affiliate thereof listed in
Exhibit 1. Not more than once per quarter, Dell may update this list of
competitors.

     1.11  "Dell Content Modules" means a collection of Dell Content which is
integrated and bundled based on specific Dell products or services including,
without limitation, links to elements of Dell.com, Gigabuys.com, and Special
Offers from Dell.

     1.12  "DellBizNet" means the Dell-branded and owned World Wide Web site,
namely www.DellBizNet.com or other Dell-designated domain, to be developed and
maintained by Dell with participation by Company pursuant to this Agreement.

     1.13  "DigitalWork.com Workshop pages" means those pages that will be
supplied by Company that refer to specific workshop utilities of Company.

     1.14  "DigitalWork.com Service pages" means all pages beneath each workshop
page, including those pages which are accessed through the "Learn About It" and
"Get It Done" links.

     1.15  "Special Offers from Dell " means a collection of World Wide Web
pages which are presently hosted at Dell.com and are dedicated to delivering
unique service offerings to Dell customers.

     1.16  "End-User(s)" means any person or entity that accesses DellBizNet or
uses the services therein.

     1.17  "DigitalWork.com Registered User(s)" means any person or entity that
voluntarily submits to abide by Company's Terms of Service.

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                       CONFIDENTIAL TREATMENT REQUESTED

     1.18  "DigitalWork.com E-Commerce Customer" means any DigitalWork.com
Registered User that generates e commerce gross revenue as defined in
section 1.21.

     1.19  "End-User Data" means any information or data associated with an End-
User which is received, stored, or processed by Company in providing its
Services under this Agreement and includes, without limitation, aggregate
information, usage and traffic data, transactional or financial information,
account names and passwords, registration information, Cookie Information,
click-through rates, and conversions.

     1.20  "Enhancements" means changes or additions, including new releases
made by Company to its Services that add significant new functions or
substantially improve the performance of Company's Services by changes in system
design or coding and related documentation and materials utilized by Company
with its Services.

     1.21  "E-Commerce Gross Revenue" means all top line revenue recognized by
DigitalWork.com for e-commerce transactions on the DellBizNet site.

     1.22  "Intellectual Property Right(s)" means any patent, copyright,
trademark, trade secret, trade dress, mask work, moral right, right of
attribution or integrity or other intellectual or industrial property rights or
proprietary rights arising under the laws of any jurisdiction (including,
without limitation, all claims and causes of action for infringement,
misappropriation or violation thereof and all rights in any registrations and
renewals).

     1.23  "Launch Date" means the first day that DigitalWork.com provided
services become available on the World Wide Web to end users through this
partnership with Dell.

     1.24  "Preexisting Work" means (a) any Content, Code and similar original
works of authorship that existed prior to the date of this Agreement and (b) any
other Content, Code or similar original works of authorship that (i) exist prior
to the date of a particular Work Statement, (ii) are specifically identified on
the Work Statement, and (iii) were not created, developed, or derived for Dell
under this Agreement.

     1.25  "Service" means any and all services provided by Company under
Section 2 of this Agreement for the development, hosting, servicing, and
maintenance of the Deliverables and DellBizNet.

     1.26  "Service Level Agreement" means the Service Level Agreement attached
to this Agreement as Exhibit 2.

     1.27  "Company Service Partners" mean any Affiliates of Company or third
parties with strategic relationships with Company that offer additional Content
and functionality to DellBizNet as a component of the Services.

     1.28  "Company Resource Centers" means a unique collection of Company
Content which is integrated and bundled based on specific topics or services.

     1.29  "Specifications" shall mean the requirements for the development of
the Deliverables, including operational and functional capabilities and
performance criteria.

     1.30  "Term" has the meaning ascribed to it in Section 8.

     1.31  "World Wide Web" or "Web" means a global computer network of servers
and files containing text and graphics accessible through use of hypertext
transfer protocol.

     1.32  "Work Product" has the meaning ascribed to it in Section 10.

     1.33  "Work Statement" means the schedule attached hereto as Exhibit 3 or
any successors thereto, as revised by the parties from time-to-time, which shall
contain at a minimum (i) a description of the Deliverables (including
Specifications) to be delivered and any related services to be performed by
Company for Dell, (ii) a schedule detailing benchmarks and delivery dates, and
(iii) a description of the payment obligations of the parties. The Work
Statement also may include provisions for written and/or oral progress reports
by Company, detailed functional and technical specifications and standards for
all services and Deliverables, including quality standards, documentation
standards, lists of any special equipment to be procured by Company

                                    Page 3
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                       CONFIDENTIAL TREATMENT REQUESTED

or provided by Dell for use in performance of the work, test plans and scripts,
and such other terms and conditions as agreed upon by the parties.

2.   Company's Services

     2.1  Scope of Services. Company shall author, design, create, develop,
test, and produce the Deliverables in accordance with the Work Statement for the
purpose of establishing and hosting content that makes up a portion of
DellBizNet and providing the services therein. The initial Work Statement agreed
to by the parties is dated as of Effective Date of this Agreement, is signed by
the parties and is attached hereto as Exhibit 3. At any time during the term of
this Agreement, Dell may request changes, additions to Content or additional
services to be performed by Company in connection with DellBizNet and Company's
Services, including any Enhancements, updates, or upgrades. Except as provided
by this Agreement, such additional work shall be agreed upon by the parties and
set forth in a revised Work Statement, which shall be subject to the terms of
this Agreement and become effective upon execution by authorized representatives
of both parties. If a conflict arises between any of the Agreement, or Work
Statement, the terms of the documents will be followed according to the
following order of precedence: (1) the Work Statement, and (2) this Agreement.

     2.2  Acceptance. Unless modified pursuant to the terms of this Agreement,
Company shall deliver the Deliverables at the times and in the manner specified
in the Work Statement. Conformity with the Work Statement and its Specifications
will be the sole basis for determining Dell's Acceptance of the Deliverables.
Dell will, within fifteen (15) days of receipt of each Deliverable as described
in each Work Statement advise Company of Dell's Acceptance (or rejection) of the
Deliverable. The Acceptance criteria for each Deliverable is included in each
Work Statement. Company will, upon receipt of notice of rejection and written
authorization of Dell, promptly correct any deficiencies identified in writing
by Dell. If a deficiency cannot be corrected to Dell's satisfaction within
fifteen (15) days of notification by Dell, in addition to all other remedies
available to Dell, Dell will have the option of requiring Company to refund all
amounts previously paid by or on behalf of Dell within ten (10) days of Dell's
request for payment.

     2.3  Time of Performance. Company shall use its best efforts to complete
the Deliverables in a timely manner according to the Work Statement. Company
shall submit performance reports as Dell may reasonably request from time to
time. Company agrees to notify Dell promptly of any factor, occurrence, or event
coming to its attention that may affect Company's ability to meet the
requirements of the Work Statement, or that is likely to cause any material
delay in delivery of the Deliverables. Unless such anticipated material delay is
the sole fault of Dell, upon receiving such notification, Dell may (i) require
the parties to renegotiate the terms of the Work Statement, including the amount
of compensation payable to Company, to account for any anticipated delays and
loss of benefits to Dell as a result thereof or (ii) terminate this Agreement
with no further obligation if Dell determines that an anticipated delay is
material.

     2.4  Maintenance and Ongoing Services. Company shall support any and all
functions, protocols, methodologies, processes, and customer service necessary
to fully access and utilize the Services in accordance with the Service Level
Agreement. Company shall ensure that (i) DellBizNet has the functionality and
appearance specified in the Work Statement, (ii) a designated Company
representative is available during regular business hours to provide technical
support and respond to Dell's inquiries on a reasonably prompt basis, and (iii)
DellBizNet and the services therein function appropriately when viewed using
recent versions of standard Internet browser software. Company shall hold and
maintain a complete back-up copy of all Content in storage for the duration of
this Agreement. Company shall provide Dell with maintenance, including minor
corrections/alterations, during the term of this Agreement for all Content and
functions relating to Company's design and development of DellBizNet and
provisioning of its Services. Company shall not be responsible for such
maintenance if any person or entity other than Dell makes any major changes to
DellBizNet's functions that were designed or developed by Company, unless such
changes were authorized, inspected and confirmed by Company; provided, however,
Dell may perform all necessary maintenance, addition or changes to Content,
upgrades, changes or additions to DellBizNet, excluding DigitalWork.com.'s
Workshop and Service pages or Dell's mainframe or computer network systems, and
Company shall resolve any errors or difficulties in DellBizNet that are not
caused by changes made by Dell. Upon written request from Dell, Company agrees
to assist in remedying any problems in the DigitalWork.com

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                       CONFIDENTIAL TREATMENT REQUESTED

Workshop and Service pages in DellBizNet that are not covered hereunder at the
standard rates charged by Company for such work.

     2.5  Hosting; Content. Except as set forth in a Work Statement, the
following requirements govern the hosting and governance of Content on
DellBizNet:

          2.5.1 Dell. Unless otherwise expressly agreed, Dell shall have the
right of prior approval of the general design, layout, Content, function, and
operation of DellBizNet Subject to Company's rights and duties under Section
2.5.2 and Company's template-based architecture, Dell shall have exclusive
approval and control over the posting, editing, renewal or update of any Content
on DellBizNet, including, without limitation, Dell Content Modules. Dell shall
ensure that any Content it provides will be and remain fully compatible with
servers and software supporting DellBizNet; provided, however, upon request from
Dell, Company shall assist Dell in resolving any Content related compatibility
problems. Dell shall have the option of replacing any of Company's Content or
applications with Dell provided Content; provided that Dell retains a minimum of
six workshops and a majority of the associated services contained therein. Dell
will review this requirement on a quarterly basis beginning three months after
the launch date of the service to consider, in good faith, the possibility of
adding additional workshops. Dell has the right to replace or delete any Content
of a Company Resource Center that Dell finds objectionable. Dell shall have the
right to supplement DellBizNet with additional content from other third party
suppliers as set forth in Section 2.12 of Exhibit 3 Work Statement.

          2.5.2 Dell Branding. DellBizNet will be a seamless Dell-branded
portal. All Web pages, home pages, tabs, search results and highlighted links
served by Company for DellBizNet will contain Dell branding and replace any
Company branding, including, without limitation, any rich media content pages,
Web directories, and guides. However, all DigitalWork.com Service pages, which
reside beneath DigitalWork.com Workshop pages will contain branding which states
"Powered by DigitalWork.com" above the fold in a size not to exceed 160 by 35
pixels. This branding will be consistent with Company's color scheme.
Furthermore, Dell retains right to suppress any symbols representing services of
Company in DigitalWork.com Workshop and Service pages.

          2.5.3 Company. Company shall be responsible for all aspects of
hosting, operating, and maintaining specified pages under DellBizNet in
accordance with the Specifications set forth on the Work Statement and all
applicable laws and regulations. Company is responsible for reviewing with Dell
the text, graphics, animation, audio and/or digital video components prior to
uploading such content onto DellBizNet. Upon Dell's request (whether oral, in
writing or by e-mail), Company shall promptly upload new material or items, or
make any alterations, to existing Content. Company will use its best efforts to
(i) provide service consistent with the Service Level Agreement; (ii) protect
specified pages under DellBizNet from unauthorized interruptions, viruses and
outside attacks (including, without limitation, by installing appropriate
firewalls, backup systems and other protective devices); (iii) maximize the
online accessibility of specified pages under DellBizNet to End-Users; and (iv)
collect such information regarding End-Users as Dell may reasonably request.

          2.5.4 Company Service Partners. Dell shall have the option to use all
current and future Content and functionality of the Company Service Partners
available to Company.

     2.6 Work Statement Changes. Changes in the Work Statement shall become
effective only upon written agreement of the parties. Company shall accept any
change requests made by Dell that (i) reduce the cost or magnitude of
performance, provided that an equitable adjustment in compensation is made for
the out-of-pocket costs of any performance or preparation already undertaken, or
(ii) increase the cost or magnitude of performance, provided that the proposed
changes are reasonable in scope and Dell establishes a commensurate increase in
compensation.

     2.7  Materials; Expenses. Except for materials Dell specifically provides,
Company shall furnish at its own expense and cost all labor, equipment, Content,
Code, telecommunications, supplies and transportation necessary for the
performance of Company's obligations under this Agreement. Dell shall provide
Company with all hardware required to host and support Company's pages within
DellBizNet at prices to be determined at a later date. Dell will provide a
technical contact to Company to coordinate all support activities. Company will
be solely responsible for any and all claims of any nature made by or on behalf
of any persons performing labor and for any and all damage to or loss of
equipment or supplies.

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                       CONFIDENTIAL TREATMENT REQUESTED

     2.8  Enhancements. Unless specifically directed by a Work Statement,
Enhancements to DellBizNet and the Services therein will be deployed and made
available by Company as they are introduced to customers of Company's own Web
site(s) or those of its Service Partners.

     2.9  Ownership.
          ----------

          2.9.1  Deliverables. Except as may be specifically provided to the
contrary on a Work Statement, all materials or equipment (i) furnished to
Company by Dell to perform this Agreement, (ii) paid for by Dell, or (iii) the
cost of which is amortized in the cost of the Services will be and remain the
property of Dell, and Company will bear the risk of loss of and damage to the
property, normal wear and tear excepted. Whenever Company has in its possession
any property of Dell (including, without limitation, intangible property such as
the DellBizNet domain name), the property will at all times be properly housed
and maintained by Company at the location(s) Dell may specifically approve from
time to time; will not be commingled with the property of Company or that of a
third party; will be used only for performing the Services; will be kept free of
all liens and encumbrances without expense to Dell; and will, upon Dell's
request, be immediately delivered to Dell at any location designated by Dell.
Dell will have the right enter onto Company's premises or any other location at
which any of the property may be kept at all reasonable times to inspect the
property.

     2.10  Applicable Policies. In consultation with Company, Dell shall
designate all terms and conditions which apply to DellBizNet, including, without
limitation, the terms and conditions of use, any disclaimers, use guidelines and
privacy policies. Company will clearly communicate at the point of registration
to become a DigitalWork.com End-User the transition to be governed by Company's
Terms of Service applicable to the services within DellBizNet.

     2.11  Exclusivity. Nothing in this Agreement will require Dell to purchase
from Company any or all of its requirements for services in excess of the
majority services contained in six workshop pages that are of the same or
similar to the Services, and Dell may purchase similar or identical services
from others.

3.   Dell's Responsibilities

     3.1  General. Dell shall, to the extent reasonably necessary for Company to
fulfill its responsibilities under this Agreement, (i) obtain the domain name
for DellBizNet which will be owned exclusively by Dell, unless the parties agree
otherwise; (ii) furnish information requested by Company, and (iii) provide
reasonable access to Dell personnel. All such requests by Company for
information or access to Dell personnel shall be in writing and shall establish
a reasonable date by which Dell's response is required. Any delays attributable
to Dell's failure to respond to reasonable requests by Company will extend any
and all deadlines for an amount of time equal to Dell's delay. Dell reserves the
right to make any necessary equipment or software upgrades, changes or
modifications.

     3.2  End-User Installations. Dell has the right, but not the obligation, to
          pre-load the Universal Service Locator ("URL") for the DellBizNet
          domain or a related third-level domain (e.g., "aaa.dell.net") on all
          Dell-branded computer systems or as the default URL for all Dell-
          branded ISP services.

     3.3  Marketing. Dell will actively marketing DellBizNet to current and
          potential Dell customers. Dell and Company will agree on a joint
          marketing strategy for DigitalWork.com End-Users, to be attached as an
          addendum to this contract, within 45 days of the effective date.

     3.4  Head end page. Dell shall create and host the first page of the Dell
          BizNet.com site. Dell will integrate a gateway to Company's services
          in a prominent position above the fold.

4.   End-User Data

     4.1  Collection of End-User Data. Through the use of Cookies or similar
          means, Company shall electronically tag and track each End-User as
          they access and use DellBizNet. Dell may make requests from

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                       CONFIDENTIAL TREATMENT REQUESTED

Company to provide End-User Data regarding DellBizNet collected from individual
End-Users, subject to Company's ability to capture such data. These requests
will be no more frequently than twice monthly.

     4.2  Usage Reports. As described in the applicable Work Statement, Company
shall provide Dell with monthly standard usage reports via email ("Usage
Reports"). The parties may, by mutual written agreement, alter the content of
the Usage Reports. At Dell's request, Company shall make commercially reasonable
efforts to provide Dell any End-User Data that is processed, collected, or
stored by Company in a form to be mutually agreed upon by the parties.

     4.3  Registration of End-Users. Dell shall have the right to customize, if
technically feasible, any registration process, including the look and feel
thereof, for any End-User of DellBizNet.

     4.4  Ownership; Use. Dell will own all End-User Data. All End-Users will be
deemed to be customers of Dell, and the collection, retention and use of such
information will be subject exclusively to Dell's then current privacy policy.
Dell will have the sole right to exploit or use any End-User data. All of the
End-User Data shall be treated as Confidential Information of Dell unless
otherwise agreed in writing. Company shall keep and store all such data in a
safe and secure environment and shall not provide access to the data to any
third party without the express written consent of Dell. Neither Company nor any
Company Service Partner shall solicit or target any End-User without the express
written consent of Dell.

     4.5  Company Ownership. Any user who registers to become a DigitalWork.com
End-User must agree to the Terms of Service of Company and "opt into" a
relationship with Company. All such user data will be jointly owner by Company
and Dell. Company may contact registered DigitalWork.com End-Users on behalf of
Dell in order to execute the overall service experience and to promote Dell and
Company's co-branded services. However, Dell must approve any and all promotion
via email prior to release to the End User.

5.   Advertising

     5.1  General. Dell will have sole right, but not the obligation, to sell,
serve, invoice, and collect for any and all advertising in DellBizNet. Except as
set forth in a Work Statement, any advertising revenue earned by DellBizNet will
be retained solely by Dell. If Dell elects to serve ads, Company through
DellBizNet will call the banner ads from Dell's or its designee's ad server. As
a part of its Services performed under this Agreement, Company shall cooperate
with Dell and make such additions or modifications to the operation and
functionality of DellBizNet as Dell deems necessary in its sole discretion to
service any advertisements.

     5.2  Competitors. Notwithstanding any Work Statement, Dell shall have the
right to refuse or block advertising on DellBizNet for any Dell Competitor. A
listing of Dell Competitors is provided in Exhibit 1.

6.   Payments

     6.1  Services Payment. The amount to be paid to Company for all of the
Services is stated in each Work Statement. In addition, any amounts to be paid
to Dell by Company as commissions or bounties is stated in each Work Statement.
Upon Acceptance of the Deliverables as specified in the Work Statement, Dell
will pay Company the fees stated in such Work Statement for which Company has
provided Services. Dell will pay or reimburse Company for any applicable sales,
use, and similar taxes associated with Dell's acquisition of the Services,
except that Dell will have no liability for any taxes based on Company's net
assets or net income, or for which Dell has an appropriate resale or other
exemption. Dell will reimburse Company for all pre-approved actual, reasonable,
documented out-of-pocket expenses, including travel expenses, incurred by
Company at Dell's request which are in accordance with Dell policy.

     6.2  Payment Terms. One-time expenses such as set-up fees or other
administrative fees will be paid forty-five (45) days from Dell's receipt of
Company's invoice. Unless otherwise specified in a Work Statement, all fees are
to be paid within thirty (30) days following the month which gave rise to the
payment obligation. All payments will be in U.S. currency unless otherwise
agreed to on a Work Statement. No invoice will be sent prior to the performance
of the related Services. In the event that Company is in default of any of its
obligations under this Agreement, Dell may withhold payment of any part of the
unpaid price for the Services until

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                       CONFIDENTIAL TREATMENT REQUESTED

Company has, to Dell's satisfaction, completely remedied the breach. All
Services purchased by Dell from Company will aggregate for calculating any
discounts.

     6.3  Billing Contact. All invoices will reference this Agreement and be
mailed to:

          Dell Computer Corporation
          Attn:  Accounts Payable
          One Dell Way
          Round Rock, TX  78682-1810

     6.4  Reports. With respect to the Services performed under this Agreement,
Company shall keep proper and accurate records and books in accordance with
applicable laws and regulations. Dell shall have the right to reasonable access
and review of Company's books and records relating to the rendering of part or
all of the Services or any payment therefor during Company's normal business
hours. Company shall retain all records relating to its performance of the
Services for a period of no less than two (2) years or such longer time period
as specified by law. To the extent required by Dell, Company shall establish and
maintain an electronic format for data communication acceptable to Dell at no
charge to Dell.

     6.5  Most Favored Pricing. Company represents and agrees that no other
customer of similar services and scope is receiving or will receive prices,
discounts, performance or terms better than those which are given Dell. Should
Company enter into an arrangement with a third party to provide substantially
the same DellBizNet services on terms which in their totality are more favorable
to the third party than the terms specified in this Agreement, then Dell shall
be given the right to convert the relevant terms in this Agreement to match all
of the more favorable terms provided the third party.

7.   Audits

     Each party hereby grants to the other the right to designate a certified
public accountant to inspect the other party's records on which revenues in
Section 6 are based, provided that such accounting firm will hold such records
in confidence except as necessary to report to both parties on the accuracy of
the calculation of the fees. A party's determination of fees due under this
Agreement will be deemed conclusive unless, within twelve (12) months after the
date of payment, the other party objects in writing to such payment, such
objection to be based upon the review by the accounting firm or otherwise. If an
inspection shows that the party calculating the fee has understated the amount
due to the other by more than ten percent (5%) for any calendar year, the party
understating the amount to be paid will pay, in addition to the amount due, the
accounting firm's fees up to an amount equal to the understatement, unless the
error and its discovery resulted from a good faith discussion between the
parties as to how to interpret the agreement. Each party agrees to give the
other at least thirty (30) days written notice of its intention to have the
records of the other party audited and further agrees to limit the number of
audits to no more than three per year (commencing and based on the date of this
Agreement).

8.   Term

     8.1  Agreement. This Agreement shall remain in full force and effect for a
period of two (2) years, unless the Agreement is terminated by either party as
provided in Section 9. If Dell gives Company notice of renewal, this Agreement
will be renewed for additional one-year terms (the "Renewal Term") upon the
expiration of the Initial Term and any subsequent Renewal Term. Notice of
renewal, if given, shall be given in writing by Dell to Company not less than
thirty (30), nor more than sixty (60), calendar days before the expiration of
the Initial Term or of any Renewal Terms thereof.

     8.2  Work Statements. Each Work Statement will continue for a term equal to
the period stated on the Work Statement, unless otherwise terminated under the
terms of this Agreement. Completion of work under any specific Work Statement
will not terminate this Agreement.

                                    Page 8
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                                                CONFIDENTIAL TREATMENT REQUESTED

9.   Termination

     9.1  Termination for Convenience. Either party may terminate this Agreement
or any Work Statement without cause upon sixty (60) days prior written notice.
However, the agreement cannot be terminated by either party during the first six
months of the agreement as measured from the launch date. Unless specifically
stated in the notice, the termination of one or more Work Statements will not
terminate this Agreement.

     9.2  General Termination for Cause. Either party may terminate the
Agreement upon thirty (30) days written notice if the other party:

          (a)  materially breaches its obligations hereunder and such breach
remains uncured for thirty (30) days following written notice to the breaching
party of the breach;

          (b)  becomes insolvent or bankrupt, admits in writing its inability to
pay its debts as they mature, or makes an assignment for the benefit of
creditors; or the other party applies for or consents to the appointment of any
receiver, trustee or similar officer for it or for all or any substantial part
of its property (or such receiver, trustee or similar officer is appointed
without its consent); or the other party institutes any bankruptcy, insolvency,
reorganization, moratorium, arrangement, readjustment of debt, dissolution,
liquidation or similar proceeding relating to it under the laws of any
jurisdiction, or any such proceeding is instituted against the other party and
is not dismissed within sixty (60) days; or any judgment, writ, warrant or
attachment or execution of similar process is issued or levied against a
substantial part of the property of the other party and remains unsatisfied for
sixty (60) days; or

          (c)  dissolves, liquidates or otherwise terminates its existence as an
entity, or consolidates with or merges with or into any entity which is a direct
competitor of the terminating party (as defined in the attached schedules), or
sells, leases or otherwise disposes of all or substantially all of its assets to
a direct competitor of the terminating party (as defined in the attached
schedules), or incurs a substantial amount of indebtedness other than in the
ordinary course of its business except for transactions which do not result in
the acquisition of a company which is a direct competitor of the terminating
party, in each case whether in a single transaction or in a series of related
transactions the other party or the person or persons in control of the other
party shall (or shall threaten to) sell, assign, part with or cease to carry on
its business or that of its business relating to the maintenance and support of
computer hardware and software and related products.

     9.3  Termination by Dell. Dell may terminate this Agreement immediately at
any time if Company comes under the effective control of a party not reasonably
acceptable to Dell or an Affiliate of such a party. Further, Dell may terminate
the Agreement, any Schedule, or discontinue offering a particular service of the
Agreement upon sixty (60) days notice:

          (a)  if there are five or more errors, failures or outages of the
Services in any thirty (30) day period and Company is unable to remedy the
problem within thirty (30) days following Company's receipt of written notice of
the problem; or

          (b)  if there is a shift in market demand as evidenced by, without
limitation: (a) during a three-month period at least thirty (30) percent of
Dell's customers request the option to use different portal options or a
provider of services different than Company; (b) more than thirty (30) percent
of Dell's customers are dissatisfied with Company's products or services as
measured by mutually agreeable standards; or (c) significant changes in
technology that render more than 30% of Company's Services accessed through
DellBizNet less than best in breed as evaluated in Dell's sole discretion.

     9.4  Obligations Upon Termination. Upon termination or expiration of this
Agreement or any particular Work Statement:

          9.4.1  Return of Confidential Information. Each party shall at its own
expense return to the other party or otherwise dispose of as the owner may
instruct, any information (including the Confidential Information) and all other
documents, papers and information whatsoever sent to a party (including
electronically sent) and relating to the business of the other party (other than
correspondence between the

                                    Page 9
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                                                CONFIDENTIAL TREATMENT REQUESTED

parties) and all property of the other party. Each party shall be entitled to
retain a copy of such information for archival purposes only. Such records will
be treated as the owners Confidential Information in accordance with Section 15.

          9.4.2  Company Obligations. Upon termination or expiration of this
Agreement, or a Work Statement or portion of a Work Statement, Company will, in
addition to any other obligations of Company on termination or expiration; (i)
cease all performance of the terminated Services and furnish to Dell all
Deliverables (including, without limitation, all Work Product that is not
Preexisting Work) and work in progress; (ii) shall not maintain or hold any
versions of the DellBizNet except as a backup; (iii) provide a complete back-up
copy, in the form(s) agreed upon by the parties, of all Work Product, End-User
Data, (iv) within thirty (30) days provide a final accounting which itemizes all
Services related to the terminated Services that have been performed in
accordance with this Agreement but for which Company has not yet received
payment, and (v) if Company terminates the agreement, Company shall continue to
pay Dell 12% of gross revenues on services purchased by DigitalWork.com End-
Users for a period of two years. Unless otherwise agreed by the parties, if the
Agreement is terminated prior to the completion of the Deliverables (i) Dell
will only be responsible for payment for those portions of the Deliverables that
Company has completed in accordance with the Specifications, and (ii) Dell shall
receive a full refund of all monies paid for any Deliverable for which it had
made any payment but which do not conform to the Specification.

          9.4.3  Payments. All payments described under Section 6 that have
accrued prior to the termination or expiration of the Agreement will be payable
in full within thirty (30) days thereof.

          9.4.4  Transition Period. During a period not to exceed ninety (90)
days following termination or expiration (the "Transition Period"), Company
shall provide to Dell reasonable assistance in the transition of the
responsibility for the Services to Dell or to a party designated by Dell, such
assistance to consist of the following: (a) reasonable documentation and other
materials relating to or used in the performance of the Services (excluding
documentation belonging exclusively to Company in which Company claims in good
faith a trade secret interest), (ii) other services or activities reasonably
requested by Dell related to the smooth transition of responsibility for
performance of the Services. Company will cooperate in good faith during the
Transition Period. In the event that Dell is responsible for paying the costs of
the transition, Dell shall pay Company's charge at Company's then current time
and materials charges for any transition assistance. Any communications by Dell
or Company to an End-User related to the expiration, termination or transition
of any Services must be approved in advance and in writing by Dell. If Company
terminates this agreement, then Company cannot market its services to any
DigitalWork.com Registered User and E-Commerce Customer for a period of two
years from the date of termination.

10.  Intellectual Property Rights

     10.1  General Reservation. Neither party grants any license to the other
except as specifically set forth in this Section 10. Except as is expressly set
forth under this Section 10, both parties expressly reserve all of their right,
title and interest in their respective Intellectual Property Rights.

     10.2  Ownership.
           ----------

          10.2.1  Work For Hire. The parties acknowledge that some or all of the
Deliverables and Services will be based, in whole or in part, on Company's
existing products and services, but that Dell will contribute valuable
intellectual property to the process of the creation of the Deliverables and
Services intended to foster a unique user experience and competitive advantage
to Dell. Therefore, all right, title and interest in the Content of the
Deliverables (including all Specifications, written copy, drawings,
modifications and designs and any other development work in support of Company's
performance for Dell) created or modified by Company uniquely for Dell, as it
relates to other Dell provided services, or as stated in a separate statement of
work produced under this Agreement that embodies or is based on intellectual
property provided to Company by Dell or that is created specific to the
Deliverables and Services, shall be held by Dell, and shall be considered a
"work made for hire" under applicable copyright law including common law,
federal, and foreign copyright law, the copyright of which shall be owned
solely, completely and exclusively by Dell (collectively, "Work

                                    Page 10
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                                                CONFIDENTIAL TREATMENT REQUESTED

Product"). Dell's right, title and interest in the Deliverables include all
components that comprise the "look and feel" of DellBizNet, including, without
limitation, the visual display, functionality, graphical user interfaces,
navigation tools, and menu structures. To the extent that any aspect of the
Deliverables created uniquely for Dell are not considered a "work made for hire"
under applicable copyright law, for whatever reason, all right, title and
interest of any kind, nature, or description that Company may have in and to
such Work Product in any and all countries of the world will automatically be
assigned, transferred, and conveyed completely and exclusively to Dell. Company
agrees to furnish any and all further documentation and to take any action as
Dell may reasonably require to evidence or effect Dell's ownership of the Work
Product. If Dell elects to seek copyright registration or otherwise seek
protection for valuable property that incorporates some or all of Company's
work, Company will cooperate fully with Dell. Dell will reimburse Company for
actual reasonable, documented expenses incurred by Company at Dell's request in
connection with obtaining such protection.

          10.2.2  End-User Data. All right, title, and interest in any
DigitalWork.com End-User Data, including without limitation, usage data and
registration information, shall be held jointly by Dell and DigitalWork.com. All
right, title, and interest in any DigitalWork.com End-User Data, including,
without limitation, usage data and registration information, shall be held
jointly Dell and DigitalWork.com.

          10.2.3  Pre-existing Work. Without limiting the provisions of 10.2.1
above or Section 12 ("Indemnification"), Dell acknowledges that Work Product
does not (i) incorporate Pre-existing Works owned by Company, (ii) incorporate
works licensed by Company from third parties, (iii) include third-party
materials needed to generate or use the Work Product, or (iv) include Work
Product created concurrently but independent of providing the Services under
this Agreement. All of (i), (ii), (iii) and (iv) in this Section will be
collectively referred to as "Licensed Materials." Dell acknowledges that Company
owns all right and title to the Licensed Materials. To the extent that any
Licensed Materials are incorporated into the Work Product or are included with
Work Product and needed to generate or use the Work Product, Company will grant
to Dell or procure for Dell, a non-exclusive, worldwide, royalty-free License
for the term of the Agreement solely to: (1) use, execute, produce, display,
perform, copy, and distribute (internally or externally) copies of, and prepare
derivative works based upon the Licensed Materials and their derivative works to
produce and maintain the Deliverables and the Services, and (2) authorize others
to do any, some, or all of the foregoing.

     10.3  Dell's License Grants. Subject to the terms and conditions of this
Agreement, Dell hereby grants to Company, during the term of this Agreement, a
nonexclusive, nontransferable license to link to the DellBizNet and to use
Dell's Content as well as Dell's trade names, trademarks, service names and
similar proprietary marks as specifically designated by Dell (the "Dell's
Marks") and which are reasonably necessary to perform Company's obligations
under this Agreement; provided, however, that any link, promotional materials or
other documentation of any kind containing Dell's trade name or proprietary
marks will be subject to Dell's prior written approval, not to be unreasonably
withheld. Company will not be deemed by anything contained in this Agreement or
done to it to acquire any right, title or interest in or to any Dell Marks, or
any portion of any Dell Marks. Company acknowledges Dell's exclusive right,
title and interest in all Dell Marks.

     10.4  Company's License Grants. Subject to the terms and conditions of this
Agreement, Company hereby grants to Dell, during the term of this Agreement, a
nonexclusive, nontransferable license to use Company's Pre-existing Work,
Content and Code as well as Company's trade names, trademarks, service names and
similar proprietary marks as is reasonably necessary to perform its obligations
under this Agreement; provided, however, that any link, promotional materials or
other documentation of any kind containing Company's trade name or proprietary
marks will be subject to Company's prior written approval, not to be
unreasonably withheld. Dell will not be deemed by anything contained in this
Agreement or done to it to acquire any right, title or interest in or to any
Company Marks, or any portion of any Company Marks. Dell acknowledges Company's
exclusive right, title and interest in all Company Marks.

     10.5  General Limitation. Neither party will use the other party's
proprietary marks in a manner that disparages the other party or its products or
services, or portrays the other party or its products or services in a false,
competitively adverse or poor light. Each of party will comply with the other
party's requests as to the use of the other party's proprietary marks and will
avoid any action that diminishes the value of such marks. Either party's
unauthorized use of the other's proprietary marks is strictly prohibited.

                                    Page 11
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                                                CONFIDENTIAL TREATMENT REQUESTED

     10.6  Promotional Use. Company shall have the right, at its own expense,
subject to the reasonable review of Dell, to refer to Dell and the Services in
its promotional materials provided no confidential or proprietary information is
disclosed. Dell shall have the right to review and approve promotional material
referencing Dell. Such approval shall not be unreasonably withheld. Company
shall not issue any press releases, advertisements or other public disclosures
concerning the existence of or the actual terms and conditions of this
Agreement, or other information regarding the relationship of the parties to
this Agreement without the prior review and written consent of Dell, which
consent shall be granted in Dell's sole discretion.

11.  Representations and Warranties

     11.1  General. Company represents and warrants to Dell that: (a) it has the
right and power to perform its obligations and to grant the rights granted
herein; (b) Company's performance under this Agreement will not violate any
agreement or obligation between Company and a third party or any applicable law
or regulation; and (c) no Content, Code or other material available or collected
at the DellBizNet (including, without limitation, all Content supplied by End-
Users) or provided by Company to Dell does now or will in the future infringe
upon or violate any Intellectual Property Right or other proprietary or non-
proprietary right of any third party.

     11.2  Quality; Conformity. Company warrants that each of the Services and
the Deliverables therein will (a) be completed in a timely, good and workmanlike
manner consistent with the requirements of a Work Statement and in accordance
with highest industry standards as well as in strict accordance with standards
of performance specified in the Service Level Agreement; (b) comply with the
description of Services stated on each Work Statement and with all of the other
terms and conditions of this Agreement; (c) be completed by duly qualified and
skilled personnel; (d) be free from defects in material, design, workmanship and
title; (e) function properly under ordinary use; and will perform in accordance
with all materials published by Company.

     11.3  Good Title. Company further warrants that the Services and any goods
will be provided free and clear of all liens, restrictions, reservations,
encumbrances and security interests of any kind. Company further warrants that
it is a duly organized corporation in good standing under the laws of the State
of Delaware, that it is qualified to transact business in all states where the
ownership of its properties or nature of its operations requires qualification,
that it has full power and authority to enter in and perform this Agreement,
that the execution and delivery of this Agreement has been duly authorized, and
that this Agreement does not violate any law or breach any other Agreement to
which Company is a party or is bound.

     11.4  Duration; Correction. All warranties will apply for the longer of
twelve (12) months from Acceptance by Dell of the Services or for a longer
period as may be specified by Company. Company agrees to promptly correct any
part of the Services not conforming to any of the warranties in this Section 11,
without expense to Dell, when notified of such non-conformity by Dell.

     11.5  No Waiver. Neither Dell's inspection, failure to inspect, payment,
failure to pay or Acceptance of any Services will preclude Dell's right to
reject non-conforming or inadequate Services, to revoke its Acceptance, or to
exercise any other right or remedy granted in this Agreement or by law. These
rights will inure to Dell notwithstanding Dell's knowledge of the defect, the
substantiality of the defect, the ease of the discovery of the defect, or Dell's
failure to earlier reject the Services or revoke its Acceptance.

     11.6  EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, COMPANY MAKES NO OTHER
EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. ANY AND ALL CONTENT OR
OTHER MATERIALS PROVIDED BY DELL PURSUANT TO THIS AGREEMENT ARE PROVIDED "AS IS"
WITHOUT WARRANTY OF ANY KIND. THE ENTIRE RISK AS TO SUCH CONTENT AND MATERIALS
IS ASSUMED BY COMPANY. DELL DISCLAIMS ALL WARRANTIES EITHER EXPRESSED OR IMPLIED
WITH RESPECT TO CONTENT OR MATERIALS AND TO ANY INTELLECTUAL PROPERTY RIGHT
INCLUDING, BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR
A PARTICULAR PURPOSE AND NONINFRINGEMENT.

                                    Page 12
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                                                CONFIDENTIAL TREATMENT REQUESTED

12.  Indemnification

     12.1  Indemnity. Either party shall indemnify, defend, and hold harmless
the other Party, their Affiliates and their respective officers, directors,
employees, representatives, and agents from and against any and all third-party
claims, legal proceedings, demands, damages, losses, liabilities, judgement,
settlements, costs and expenses, including, without limitation, reasonable
attorneys' fees, arising from or related to any alleged or actual:

     (a)  claims arising from Content on DellBizNet;

     (b)  claims by or on behalf of either Parties' subcontractors, suppliers,
     employees, representatives or agents arising from either Parties' acts or
     omissions;

     (c)  violations of applicable laws or regulations including, without
     limitation, employment laws by either Party of their  employees,
     subcontractors, agents or representatives;

     (d)  infringement or violation, or misappropriation of any Intellectual
     Property Rights or non-proprietary right or any End-User Data related to
     the performance of Services or delivery of product under this Agreement by
     either Party or their employees, subcontractors, agents or representatives
     provided such infringement, violation or misappropriation was not caused by
     the other Party or their employees, subcontractors, agents or
     representatives or Company's strict adherence to Dell's Specifications set
     forth in a Work Statement;

     (e)  claims by End-Users or other third parties related to either Party of
     their employees, Subcontractors, agents or representatives, negligence in
     properly performing the Services under this Agreement;

     (f)  any actual or alleged loss, damage to or destruction of tangible
     property, and/or illness, injury or death to any person, including, without
     limitation, employees or invitees of the indemitee's, arising out of either
     Party's performance of, or failure to perform, any of the Services, or any
     of its other obligations under this Agreement; and

     (g)  breach of either Party's representations and/or warranties set forth
     in this Agreement.

     EITHER PARTY'S OBLIGATION TO INDEMNIFY WILL APPLY REGARDLESS OF WHETHER THE
DAMAGE, LOSS, LIABILITY, COST OR EXPENSE IN QUESTION ARISES IN WHOLE OR IN PART
FROM ANY NEGLIGENT ACT OR OMISSION OF AN INDEMNIFIED PERSON OR ENTITY, FROM
STRICT LIABILITY IN TORT OF AN INDEMNIFIED PERSON OR ENTITY, OR OTHERWISE, BUT
IN SUCH EVENT THE PARTY WILL NOT BE RESPONSIBLE FOR THAT PORTION OF THE DAMAGE,
LOSS, LIABILITY, COST OR EXPENSE THAT RESULTS FROM THE NEGLIGENT ACT OR OMISSION
OF AN INDEMNIFIED PERSON OR ENTITY, OR ENTITY.

     12.2  Proportionality. Either party's obligation to indemnify the other
arising under Paragraph 12.1 will be proportional to the adjudicated respective
fault of the parties with regard to the acts or omissions that gave rise to the
indemnitable claims.

     12.3  Indemnification Procedures. The party entitled to indemnity under
this Section (the "Indemnified Party") shall give the other party (the
"Indemnifying party") written notice of any claims resulting in an obligation of
indemnification under this Section. The Indemnified Party shall grant the
Indemnifying Party control of the defense and settlement of such claim provided
that the Indemnified Party may be represented by counsel of its own choice at
its own expense. The Indemnified Party shall provide reasonable assistance in
the defense and the settlement of a claim at the Indemnifying Party's expense.
The Indemnifying Party shall not settle a claim without the written consent of
the Indemnified Party; such consent shall not be unreasonably withheld.

     12.4  Cover. In the event of an action for infringement, Company shall, at
Company's own expense, (i) obtain for Dell the right to use the infringing
materials or Services (which may include Deliverables); (ii) modify the
infringing materials or Services so as to render them non-infringing but still
consistent with the specifications in the applicable Work Statement; (iii)
provide Dell with functionally equivalent non-infringing

                                    Page 13
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                                                CONFIDENTIAL TREATMENT REQUESTED

materials or Services; or (iv) if none of the other options stated in this
paragraph can reasonably be achieved within a reasonable time, without limiting
or waiving its remedies, Dell may immediately terminate this Agreement or the
applicable Work Statement.

13.  Limitation of Liability

     EXCEPT FOR ANY BREACH OF THE TERMS STATED IN SECTION 10 ("INTELLECTUAL
PROPERTY"), SECTION 15 ("CONFIDENTIALITY"), OR FOR ANY LIABILITY UNDER SECTION
12 ("INDEMNIFICATION"), NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR ANY
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY TYPE, INCLUDING LOST
PROFITS, THIRD PARTY CLAIMS, OR LOST DATA, ARISING OUT OF OR IN CONNECTION WITH
THIS AGREEMENT OR THE SERVICES, EVEN IF A PARTY HAS BEEN ADVISED BY THE OTHER
PARTY OF THE POSSIBILITY OF THE DAMAGE AND EVEN IF A PARTY ASSERTS OR
ESTABLISHES A FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY PROVIDED IN
THIS AGREEMENT. UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE OR BECOME LIABLE TO
THE OTHER PARTY FOR ANY AMOUNT IN EXCESS OF THE CONSIDERATION RECEIVED
HEREUNDER, AS SET OUT ON EACH SCHEDULE.

14.  Disputes

     14.1  Equitable Relief. The parties agree that any breach of either of the
parties' obligations regarding trademarks, service marks or trade names,
confidentiality and/or user data may result in irreparable injury for which
there may be no adequate remedy at law. Therefore, in the event of any breach or
threatened breach of a party's obligations regarding trademarks, service marks
or trade names or confidentiality, the aggrieved party will be entitled to seek
equitable relief in addition to its other available legal remedies in a court of
competent jurisdiction.

     14.2  Obligation of Good Faith. Before either party initiates a lawsuit
           against the other relating to a dispute or claim under this
           Agreement, the parties agree to work in good faith to resolve between
           them all disputes and claims arising out of or relating to this
           Agreement, the parties' performance under it, or its breach. To this
           end, either party may request, after informal discussions have failed
           to resolve a dispute or claim, that each party designate an officer
           or other management employee with authority to bind the party to meet
           in good faith and attempt to resolve the dispute or claim. During
           their discussions, each party will honor the other's reasonable
           requests for information which is not privileged and which relates to
           the dispute or claim. This Section will not apply should the
           expiration of the statute of limitations for a cause of action be
           imminent.

     14.3  Disputes

           14.3.1  Equitable Relief. The parties agree that any breach of either
                   of the Parties' obligations regarding trademarks, service
                   marks or trade names, confidentially and/or user data may
                   result in irreparable injury for which there may be no
                   adequate remedy at law. Therefore, in the event of any breach
                   or threatened breach of a Party's obligations regarding
                   trademarks, service marks or trade names or confidentiality,
                   the aggrieved Party will be entitled to seek equitable relief
                   in addition to its other available legal remedies in a court
                   of competent jurisdiction.

          14.3.2   Obligation to Mediate in Good Faith. Except as provided in
                   this Section 14.3.3, before either Party initiates a lawsuit
                   against the other relating to this Agreement, the Parties
                   agree to mediate all disputes and claims arising out of or
                   relating to this Agreement, the Parties' performance under
                   it, or its breach. To this end, either Party may request,
                   after informal discussions have failed to resolve a dispute
                   or claim, that each Party designate an officer or other
                   management employee with authority to bind the Party to meet
                   in good faith and attempt to resolve the dispute or claim
                   through mediation. During their

                                    Page 14
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                                                CONFIDENTIAL TREATMENT REQUESTED

                   discussions, each Party will honor the other's reasonable
                   requests for information that is not privileged and relates
                   to the dispute or claim. This Section does not apply (i)
                   should the expiration of the statute of limitations for a
                   cause of action be imminent, or (ii) if a Party is seeking an
                   injunction pursuant to Section 14.3.1

          14.3.3   Cover for Intellectual Property Right Infringement. In the
                   event of an action for infringement of any Intellectual
                   Property Right or other proprietary or non-proprietary right
                   of any third party arising out of the Services, Company
                   shall, at Company's own expense, (i) obtain for Dell the
                   right to use the infringing materials, (ii) modify the
                   infringing materials or services so as to render them
                   non-infringing but still consistent with the specifications
                   in this Agreement, or (iii) provide Dell with functionally
                   equivalent non-infringing materials or services;
                   provided, however, that if none of the other options stated
                   in this Section 14.3.3 can be achieved within thirty (30)
                   calendar days, in lieu thereof, Company or Dell may
                   immediately terminate this Agreement.

     14.4  Warrant to Purchase Series D Preferred Stock of the Company. The
Company agrees to provide Dell with a warrant to purchase 150,000 shares of the
Series D Preferred Stock of the Company, pursuant and subject to a separate
Warrant to be executed by Dell and the Company concurrent with the execution of
this Agreement. The Warrant shall (a) have a term of 2 years, (b) vest
immediately upon execution of this Agreement, (c) be exercisable for $8.36 per
share, (d) contain all terms equal to Series D Preferred Stock as referenced in
Exhibit 5, (e) include a net share settlement provision, and (f) contain other
customary terms and conditions.

15.  Confidentiality

     15.1  General Obligation. Each party agrees that the Confidential
Information of the other party will be held in confidence to the same extent and
the same manner as each party protects its own Confidential Information, but
each party agrees that in no event will less than reasonable care be used. Each
party shall, however, be permitted to disclose relevant aspects of such
Confidential Information to its officers or employees on a need-to-know basis,
provided that they have undertaken to protect the Confidential Information to
the same extent as required under this Agreement. Each party agrees to use all
reasonable steps to ensure that the other party's Confidential Information
received under this Agreement is not disclosed in violation of this Section.
Notwithstanding the foregoing, Company may not disclose any Confidential
Information to any third party, including, without limitation, its Affiliates,
directors or shareholders without Dell's consent which shall not be unreasonably
withheld.

     15.2  Exceptions. The obligations set forth in this Section 15 do not apply
if and to the extent the party receiving Confidential Information ("Receiving
Party") establishes that: (i) the information disclosed to the Receiving Party
was already known to the Receiving Party, without obligation to keep it
confidential; (ii) the Receiving Party received the information in good faith
from a third party lawfully in possession thereof without obligation to keep
such information; (iii) the information was publicly known at the time of its
receipt by the Receiving Party or has become publicly known other than by a
breach of this Agreement; (iv) the information is independently developed by the
Receiving Party without use of the other party's Confidential Information; or
(v) the information is required to be disclosed by applicable statute or
regulation or by judicial or administrative process; provided that, in the case
of (i) through (v) above, such circumstances are demonstrated with written
evidence thereof and that, in the case of (v) above, the Receiving Party will
use reasonable efforts under the circumstances to notify the other party of such
requirements so as to provide such party the opportunity to obtain such
protective orders or other relief as the compelling court or other entity may
grant.

                                    Page 15
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                                                CONFIDENTIAL TREATMENT REQUESTED

16.  Subcontractors

     Company represents and agrees that it is solely responsible for the quality
and quantity of the Services. If Company delegates or subcontracts an
obligation, Company shall (i) obtain a written agreement of confidentiality from
such delegate or subcontractor that is consistent with Section 15, (ii) shall be
solely responsible for any payments owed to such delegates or subcontractors for
performing any of Company's obligations, (iii) remain primarily responsible for
ensuring that all permitted delegates or subcontractors produce the Deliverables
and/or perform the hosting services in strict accordance with this Agreement and
abide by, and be subject to, all terms and conditions set forth herein, and (iv)
immediately provide names to Dell of any subcontractors who are performing any
service on DigitalWork.com Workshop or Service pages.

17.  Remedies

     In addition to the remedies provided to Dell in Section 2.2 ("Acceptance")
of this Agreement and without limitation of any other rights or remedies Dell
may have at law or in equity, if Company is in default of any of its obligations
under this Agreement, or if the Services do not conform to Company's warranties,
Dell may, at its option, (i) require Company to promptly tender conforming
Services at Company's reasonable expense, or, (ii) alternatively, Dell may
procure similar conforming Services from one or more other providers, in which
case Company will pay to Dell the difference between the costs incurred by Dell
in obtaining the similar Services and the contract price Cure of nonconforming
Services may only be made after Company obtains the written permission of Dell.

18.  Insurance

     Company shall obtain and at all times during the term of this Agreement
maintain at its own expense, with insurance companies rated "A" or better by AM
Best and acceptable to Dell the minimum insurance coverages set forth in
Exhibit 2.

19.  Force Majeure

     19.1  Excuse from Performance. Neither party shall be liable for any delay
or failure to perform its obligations under this Agreement, where such delay or
failure results from any cause beyond such party's reasonable control including,
without limitation, any (a) act of God (fire, storm, floods, earthquakes, etc.);
(b) civil disturbances; (c) mechanical, electronic or communications failure; or
(d) disruption of telecommunications, power or other essential services;
provided that it gives the other party written notice thereof promptly and, in
any event within fifteen (15) days of discovery thereof and uses its best
efforts to cure the delay. Notwithstanding the foregoing, either party may
terminate this Agreement upon written notice to the other party in the event
such failure to perform continues unremedied for a period of thirty (30) days in
the aggregate.

20.  General

     20.1  Amendments. Any term of this Agreement may be amended and the
observance of any term may be waived (either generally or in a particular
instance and either retroactively or prospectively) only with the written
consent of the parties.

     20.2  Waivers. The failure of a party hereto at any time or times to
require performance of any provision hereof shall in no manner affect its right
at a later time to enforce the same unless the same is waived in writing. No
waiver by a party of any condition or any breach of any term, covenant,
representation or warranty contained in this Agreement shall be effective unless
in writing, and no waiver of any one or more instances shall be deemed to be a
further or continuing waiver of any such condition or breach in other instances
or a waiver of any other condition or breach of any other term, covenant,
representation or warranty. A valid waiver is limited to the specific situation
for which it was given.

     20.3  Assignment. This Agreement may not be assigned, or otherwise
transferred, in whole or in part, by either party without the prior written
consent of the other party, which the other party will not unreasonably

                                    Page 16
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

withhold, condition or delay except that Dell may assign this Agreement, or any
of its rights or obligations under this Agreement, to any of DCC's subsidiaries
or Affiliates without consent of Company. Any attempted assignment in violation
of the foregoing will be void.

     20.4  Compliance. Company agrees to comply with all applicable laws, rules,
regulations and orders of the United States and any other state or country with
jurisdiction over Company or Company's activities in performance of its
obligations under this Agreement, including without limitation all applicable
import or export regulations and all licensing or permitting requirements.

     20.5  Construction. This Agreement has been negotiated by the parties and
their respective counsel and will be interpreted fairly in accordance with its
terms and without any strict construction in favor of or against either party.

     20.6  Counterparts; Translations. This Agreement may be executed in two or
more counterparts in the English language, and each counterpart will be deemed
an original, but all counterparts together will constitute a single instrument.
The English language version of this Agreement will control regardless of any
subsequent translations of this Agreement.

     20.7  Forms. Dell and Company agree that, except as specified in Section 2
of this Agreement, the use of preprinted forms, such as acknowledgments or
invoices, is for convenience only and all terms and conditions stated on the
forms are void and of no effect.

     20.8  Choice of Law; Venue. This Agreement will be governed by and
construed in accordance with the laws of the State of Texas, without regard to
principles of conflicts of law. Company hereby irrevocably and unconditionally
submits to the exclusive jurisdiction of any state or federal court sitting in
Austin, Texas over any suit, action or proceeding arising out of or relating to
this Agreement.

     20.9  Headings. The headings contained in this Agreement are for the
purposes of convenience only and are not intended to define or limit the
contents of this Agreement.

     20.10  Independent Contractors. The parties are independent contractors and
neither party is an employee, agent, servant, representative, partner, or joint
venturer of the other. Neither party has the right or ability to bind the other
to any agreement with a third party or to incur any obligation or liability on
behalf of the other party without the other party's written consent. Company
will be solely responsible for all materials and work until Acceptance by Dell,
and Dell will have no direction or control of Company, or any person employed by
or contracted for by Company, except in the results to be obtained.

     20.11  Notices. Any notice or other communication (other than telephone
maintenance or support or requests for maintenance or support) must be in
writing, in English, and either actually delivered (including delivery by
facsimile, telex, courier or similar means) or deposited in the United States
mail in registered or certified form, return receipt requested, postage prepaid,
addressed to the receiving party at the address stated below or to another
address as such party may indicate by notice in accordance with this Section.
Notice will be effective on the date that it is delivered or, if sent by mail in
accordance with this Section, five (5) days after the date of mailing.

     For Dell:

          Name: Paul Bell or Vice President of Dell Home and Small Business
                ------------------------------------------------------------
                group.
                ------
          Address: Mail Code 8124, One Dell Way Round Rock, Texas, 78682
                  ----------------------------------------------------------
          Telephone:  512.723.9536
                    --------------------------------------------------------
          Fax:        512.283.1111
              --------------------------------------------------------------
          With a copy to: Attention: Legal Department-Allen Hull

     For Company:

          Name: President
               ---------------
          Address: 230 West Monroe, Suite 1950 Chicago, Il 60606
                  ----------------------------------------------------------
          Telephone: 312.261.4000
                    --------------------------------------------------------

                                    Page 17
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

          Fax: 312.261.4010
              -------------------------------------------------
          With a copy to: Attention Legal Department-Dave Aniol
          -----------------------------------------------------

     20.12  Severance. Whenever possible, each provision of this Agreement will
be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement is found to violate a law, it will
be severed from the rest of the Agreement and ignored.

     20.13  Survival of Terms. Regardless of the circumstances of termination or
expiration of this Agreement or any Work Statement or portion thereof, the
provisions of Sections 10 ("Warranty"), 11 ("Indemnification"), 12 ("Limitation
of Liability"), 14 ("Disputes"), 9 ("Intellectual Property"), 15
("Confidentiality"), 17 ("Remedies"), and 20 ("General") will survive the
termination or expiration and continue according to their terms.

     20.14  Time. Whenever reference is made in this Agreement to "days," the
reference means calendar days, not business days, unless otherwise specified.

     20.15  Attorneys' Fees. If any party hereto brings an action or proceeding
for the declaration of the rights of the parties hereunder, for injunctive
relief, or for an alleged breach or default of, or any other action arising out
of this Agreement or the transactions contemplated hereby, the prevailing party
in any such action shall be entitled to an award of reasonable attorneys' fees
and any court costs incurred in such action or proceeding, in addition to any
other damages or relief awarded, regardless of whether such action proceeds to
final judgment.

     20.16  Taxes. The parties to this Agreement shall pay all applicable United
States federal, state and local taxes and other national, provincial or local
taxes, or other tariffs of any jurisdiction in which one of the parties to this
Agreement resides or is otherwise subject, in accordance with the laws of the
United States or any such other jurisdiction as then in effect.

     20.17  Entire Agreement. This Agreement constitutes the entire
understanding of the parties with respect to the subject matter hereof and
merges all prior written or oral communications, understandings, and agreements
with respect to the subject matter of this Agreement.

     IN WITNESS WHEREOF, the parties have executed this Agreement by their duly
authorized representatives, to be effective as of the Effective Date stated
above.

<TABLE>
<CAPTION>
DigitalWork.com, Inc.                     DELL PRODUCTS L.P.
<S>                                       <C>
By: /S/                                   By: /S/ Craig A. Terrill
    _________________________________         _________________________________

Printed Name: _______________________     Printed Name: _______________________

Title: ______________________________     Title: ______________________________

Date: _______________________________     Date: _______________________________
</TABLE>

                                    Page 18
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                                   EXHIBIT 1

                               DELL COMPETITORS

Direct competitors include, but are not limited to:

 .  Acer Computer Corporation

 .  Apple Computer Corporation

 .  AST/Samsung Computers

 .  Compaq Computer

 .  CompUSA

 .  IBM Corp.

 .  Hewlett Packard

 .  EMachines/FreePC.com

 .  Fujitsu

 .  Gateway

 .  Micron Electronics, Inc.

 .  Digital Equipment Corporation

 .  Packard Bell (NEC)

 .  pcOrder.com

 .  Microwarehouse

 .  Computer Discount Warehouse

 .  SHL

 .  Siemens Nixdorf (SNI)

 .  Toshiba

 .  Vobis

                                    Page 1
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                                   EXHIBIT 2

                            SERVICE LEVEL AGREEMENT

     This Service Level Agreement ("SLA") sets forth the service level and
performance requirements, including technical support, operational requirements
and customer care required under Section 2.4 of the Master Service Agreement
("Agreement") between Dell Products L.P. ("Dell") and Digital Work, Inc.
("Company"). In addition to any service level requirements specified in any
agreements between Company and its subcontractors, Company shall ensure that the
following service level and performance requirements are satisfied for all
DigitalWork.com supplied services:

                    I.  OPERATIONAL AND TECHNICAL MEASURES

A.   Server Quality Measurements

     1.   Web. Company shall maintain an uptime of 99.9% for the web server
system which supports End-Users including, without limitation, any Digital Work
supplied content or, measured on a monthly basis, as a percentage of total hours
of uptime for the month.

     2.   Registration. Company shall maintain an uptime of 99.8% for the
registration server system which supports End-Users, measured on a monthly basis
as a percentage of total hours uptime for the month. Company will provide
advance notice of any activities that will increase registration activities by a
factor of more than 20% from the previous month's peak number of End-Users
simultaneously connected to the registration server. Company will cooperate with
Dell's efforts to install a unified registration process to the portal including
but not limited to working with a Dell Chosen Internet access provider with
unique registration requirements.

     3.   Authentication. Company shall maintain an uptime of 99.7% for the
authentication server system which supports End-Users, measured on a monthly
basis as a percentage of total hours uptime for the month.

     4.   Transactional. Company shall maintain an uptime of 99.7% for the
transactional server system, including, without limitation, security
requirement, which supports End-Users, measured on a monthly basis as a
percentage of total hours uptime for the month.

     5.   Security. Company shall use secure servers for the collection of all,
transactional information. Company shall maintain an uptime of 99.7% for all
secure server systems which support Customer or End-Users, measured on a monthly
basis as a percentage of uptime for the month.

     6.   Company Uploads. Company shall provide 99.5% of the time, with a
maximum (5) minute delay to synchronize new Content, all upload processes made
available to Company for updating Content.

     7.   Network Throughput Performance. Company shall ensure enough throughput
performance between its servers, gateway servers and the Internet backbone so
that End-Users do not experience degraded service.

B.   Systems Management

     1.   Monitoring. Company shall proactively manage and monitor all
application server hardware devices and software to ensure optimal performance
and reliability as well as to detect abnormal event or exceeded utilization or
performance thresholds. Company shall proactively monitor the status of the
operating systems (e.g., CPU, disk I/O, memory, processes, etc.), critical
application layer daemons and processes and trigger appropriate even
notification alarms caused by errors, exceeded thresholds, etc.

     2.   Maintenance. All servers, applications and networks supporting the
Services will be operated, monitored and administered by Company on a 7/24/365
basis. In order to provide such coverage, Company may utilize a mixture of on-
site and on-call support staff, automated server monitoring and automated paging
technology. Unless otherwise agreed by Company, all scheduled routine
maintenance will be performed between Friday, 4:00 a.m. (ET) and 6:00 a.m. (ET).

                                    Page 1
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

     3.  Change Control. Company shall install new equipment, software,
releases, upgrades, fixes, patches and other items necessary to maintain its
servers and systems to leading industry standards. Company shall proactively
gather information from appropriate server, peripheral, operating system or
database vendors regarding upgrades, defect patches or fixes.

     4.  Notice. Company shall give Dell three (3) days notice prior for all
non-routine management, maintenance, change control or other actions by Company
that may materially impact the Service adversely.

C.   Backup/Restore

     1.   Backups. Company shall provide incremental daily backups and weekly
full back-ups without error of all Content associated with the provisioning of
Company's Services and all Customer Content, including, without limitation, End-
User data. Backups will be scheduled to begin no earlier than 2:00 a.m. (EST)
and to be completed no later than 6:00 a.m. (EST).

     2.   Archives. Company shall archive full back-ups in a separate facility
not more than ten (10) days following their creation. Company shall maintain any
archives for a period not to exceed one year from the date of their creation or
the termination of the Agreement.

     3.   Restoration. Company shall provide full data restoration as is
commercially reasonable to maintain its Services and within 5 hours of a
request by Company.

D.   Service Improvement Actions

     Company will provide to Dell a monthly summary report of actions taken or
planned to remedy any failure by Company to meet any of the above-specified
service quality objectives or measurements.

E.   Remedies

     The remedies set forth in this Section are available only if Company fails
to meet the Server Quality Measures set forth above. The parties acknowledge and
agree that if the remedies set forth in this Section are applied, any failure of
Company to meet the requirements in this Schedule shall not constitute a
material breach of this Agreement as to event giving rise to use of the
remedies. If Company misses any of the seven objectives described in Section A
of this agreement for two consecutive months, Dell shall receive service credit
from Company for the subsequent month and any consecutive month in which any of
the objectives have not been met.

     In no event shall the credit owed by Company in any month exceed * * * of
the amount otherwise to be paid to Company in the applicable month. No remedies
will be available if failure to meet the objectives is attributable to reasons
of Force Majeure (as defined in the Agreement), previously scheduled system and
network maintenance performed during regular maintenance windows (which shall in
all cases be between Midnight and 6AM local time), or the acts, systems, or
applications of Company or End-Users.

                             II.  END-USER SUPPORT

A.   Proactive Problem Detection.

     Company shall monitor all systems so as to insure all incidents impacting
any Services are detected and addressed prior to Dell or End-User inquiry * * *
of the time.

B.   End-User Care and Technical Support Services

     1.   Services Available. The care and technical support services that will
be available to End-Users will include all support required or which Company in
consultation with Dell deems advisable to help End-Users use and understand the
Services and to help End-Users resolve problems with using the Services. These
services will include, without limitation: billing inquiry, dispute resolution,
registration assistance, usage instructions and inquiries regarding the terms of
service.

     2.   Online Services. Care and technical support services for End-Users
will be available online through the Services, including without limitation,
frequently asked questions ("FAQ") list, database inquiries,

                                    Page 2
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

searching and e-mail messages to the Company's staff. Responses to e-mail
messages to technical support staff will be made within four (4) hours from the
time that the message was sent. Responses to e-mail messages to the staff will
be within 24 hours on billing issues from the time that the message was sent.
Company shall ensure that its care and technical support services are performed
and updated in a timely and professional manner. Without limiting the generality
of the foregoing, Company shall seek to address End-User inquiries and resolve
End-User complaints as promptly as possible and in a manner that reflects
positively upon the name, goodwill and reputation of Company, Company and the
Services.

     3.   Services by Representatives.

     Company's existing Live Online Support will be made available to all users
of DellBizNet when user is accessing a DigitalWork.com. supplied page. Care and
technical support services for End-Users will be available through a human
operator via a toll free telephone number. Calls to the care and technical
support representatives shall be answered according to the standards and
schedule set forth below:

<TABLE>
<CAPTION>
Type of Service                 Launch thru 6/30/00               7/1/00 thru 9/30/00            10/1/00 ongoing
--------------------------------------------------------------------------------------------------------------------
<S>                          <C>                              <C>                          <C>
Online Technical Support     Email within 2 hours             Email within 1 hour          Email within 1 hour
                             9:00am - 5:00pm CST              7:00am - 7:00pm CST M-F      24X7 7 days a week
                             M-F
-------------------------------------------------------------------------------------------------------------------
Online Product Support       Email within one business day    Email within the same day    Email within 4 hours
                             9:00am - 5:00pm M-F              7:00am - 7:00pm M-F          7:00am - 7:00pm
                                                                                           Seven days a week
-------------------------------------------------------------------------------------------------------------------
Online Billing Support       Email within 24 hours            Same                         Same
-------------------------------------------------------------------------------------------------------------------
Live person chat             Start within 15 minutes of       Start within 5 minutes       Start within 1 minute
                             request  9 - 5  M-F              7am - 7pm M-F                7am - 7pm  M-F
-------------------------------------------------------------------------------------------------------------------
Outbound product support     Customer specified time          Customer specified time      Same
                             within 4 hour window             within 2 hour window
                             9 - 5   M-F                      7am - 7pm M-F
-------------------------------------------------------------------------------------------------------------------
Inbound 800 # Product                   N/A                               N/A              As indicated in 3a.
-------------------------------------------------------------------------------------------------------------------
Inbound 800# Technical                  N/A                       As indicated in 3b.      As indicated in 3b.
-------------------------------------------------------------------------------------------------------------------
</TABLE>

          a.   End-User Care Standard. End-User calls shall be answered within
15 by either a human operator or an automated system ("ACD"). If an ACD is used
to initially queue or answer a call, a human operator shall be available within
30 seconds thereafter. This standard shall be achieved for 95% of the calls
during each month. At a minimum, the care service shall be available * * *, * *
*, each day of the year.

          b.   Technical Support Standard. End-User calls shall be answered
within 15 seconds by either a human operator or an ACD. If an ACD is used to
initially queue or answer a call, a human operator shall be available within 30
seconds thereafter. This standard shall be achieved for 95% of the calls during
each month. At a minimum, the technical support service shall be available
24x7x365.

          c.   Support Levels. Company shall attempt to answer any End-User
inquiries to Company's representatives at the time of inquiry in the following
manner:

                                    Page 3
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

          (1)  First Level Support. After 7/1/00, First Level Support can be
defined as a "pool" of Company representatives who handle the majority of End-
User inquiries and support requests. Responsibilities involved in first level
support can be generally defined as follows: support request creation and
maintenance, verify priority and severity information, search technical
documentation for all known issues and possible matches, document all customer
interactions, close support requests, escalate to second level support, if
necessary. First level support shall also include coordination of account
registration and testing and ongoing account monitoring and maintenance.
Company's service representatives shall answer service inquiries as
"DellBizNet".

          (2)  Second Level Support. Second Level Support can be defined as a
"pool" of Company representatives who maintain specialized skills and are at a
different organizational level than the first level support group. Skills not
available in the first level are transferred to the second level, where more
specialized skills and an increased technical depth exist. Responsibilities
involved in second level support can be generally defined as follows: ensure
quality of information provided to first level representatives, manage
relationship with first level representative, verify information received in
escalated support requests, analyze support request to identify specific issues,
create and maintain new trouble reports, create interim and final resolutions as
necessary. Second Level Support should be sufficient to resolve any End-User
need. In the event, the Second Level Support cannot correct or answer an inquiry
at the time of inquiry, the Second Level Support shall respond to the End-User
in accordance with Section 3 below. Company's service representatives shall
answer service inquiries as "DellBizNet".

3.   Response Standards

     A.   Inquiry. Company shall respond within (30) minutes of receipt of an
inquiry from Dell to Company's designated point of contact, and (1) hour for
End-Users as described above.

     B.   Updates; Response Time. The frequency of updates and response time
objectives for reported troubles will be dependent upon the severity of the
problem. Company shall fulfill the following objectives to respond to inquiries
by Company or End-Users:

                                    Page 4
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

<TABLE>
<CAPTION>
      Priority         Initial Update      Update Interval       Response Time
                         (minutes)            (minutes)            Objective
                                                                   (minutes)
--------------------------------------------------------------------------------
   <S>                    <C>                  <C>                  <C>
    Critical/1/            30                    30                  30
--------------------------------------------------------------------------------
      Major/2/             60               status change            60
--------------------------------------------------------------------------------
    Important/3/           60               status change           240
--------------------------------------------------------------------------------
</TABLE>

     C.   Cure. Company shall use all commercially reasonable efforts to correct
any errors or problems that adversely effect its Services.

     D.   Reporting. Company shall deliver to Dell monthly reports on all
service level inquiries.

--------------------------

     /1/Critical problems are those which seriously degrade Provider's Service
or impact the majority of End-Users.

     /2/Major problems are those which affect multiple End-Users or degrade the
overall quality of the Service.

     /3/Important problems are those which affect single End-Users or do not
degrade the overall quality of connectivity.

                                    Page 5
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                                   EXHIBIT 3

                                 WORK STATEMENT

     This Exhibit 3 is subject to the terms and conditions of the Master Service
Agreement ("Agreement") between DigitalWork.com. Inc. ("Company"), and Dell
Products L.P. ("Dell") effective as of December 22, 1999. To the extent the
terms of this Work Statement and the Agreement conflict, this Work Statement is
controlling; otherwise, the Agreement shall remain in full force and effect.

1.   Definitions

     As used in this Work Statement, the following terms shall have the
following meanings, unless the context otherwise requires. Certain other terms
are defined elsewhere in the Agreement and Work Statement.

     1.1  "Above-the Fold" means, situated within the portion of a page that is
designed to be visible on a standard computer screen with a resolution of 800
pixels by 600 pixels without requiring the user to scroll horizontally or
vertically through the page.

     1.2  "Advertising Revenues" means the aggregate fees and other revenues
collected plus the fair market value of other compensation received by or on
behalf of a party or any Affiliate thereof arising from the license or sale of
promotional, advertising, sponsorship or marketing services or rights related to
any portion of DellBizNet less customary and reasonable sales commissions.

     1.3  "Average Daily Page Views" means the aggregate number of unique page
views by End-Users accrued during a thirty (30) day period divided by 30.
Average Daily Page Views shall include all End-User page turns served from
Company-provided Content during each End-User session.

     1.4  "Gross Margin" means all revenue, less any refunds granted to
customers, earned by or from DellBizNet by Company from subscriptions, fees,
sales of services or Content, bounties or commissions and e-commerce activities,
other than Advertising Revenue.

     1.5  "Segments" means the unique business segments of Dell described in
Section 2.4.

2.   Description of Deliverables and Services

     2.1  General. In order to assist Dell with its efforts to create a business
portal, Company shall provide Dell with content making up a portion of the Dell-
branded Web-based service, DellBizNet. DellBizNet will be seamlessly branded by
Dell and DigitalWork.com Service pages will be micro-branded by Company. The
Dell logo or other logo designated by Dell will be placed prominently Above-the-
Fold in the header at the top of DellZone, with placement at Dell's option.
Company will configure DigitalWork.com Workshop and Service pages according to
Dell's requirements and consistent with the terms of this agreement.

     2.2  Domain Name Hosting Dell shall register the DellBizNet domain,
<www.DellBizNetcom>. All right, title and interest in the domains shall belong
exclusively to Dell.

     2.3  International Rollout. Company will work with Dell to roll-out
international/localized versions of and will work in concert with Dell to select
the regions and deployment schedule. Initially regions should include Canada,
UK, Europe, Japan, Asia-Pacific, Australia, and Latin America (not necessarily
in that order).

     2.4   Selection. Dell will retain the option of replacing Company's small
business services offer with a Dell-provided small business services offer
provided that at least six workshops and a majority of collective services
therein are retained. Dell will review in good faith on a quarterly basis the
possibility of adding additional workshops into DellBizNet. 2.5 ISP/Portal
Registration. Company shall work with Dell to create a combined ISP and portal
universal registration application. Should the development of the joint
registration not be completed by February 15, 2000, Company shall provide all
End-User registration information to Dell until such time as the joint
registration process is in place.

     2.6  Search Services. Upon user-initiated searches in key categories be
designated by Dell, Company shall surface Dell-negotiated e-commerce
relationships in premium position above Company-negotiated
e-commerce/sponsorship relationships.

     2.7  Purchase of Dell Hardware. Company agrees that any

                                    Page 1
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

additional servers, desktops, and notebooks required to accommodate additional
traffic to DigitalWork.com pages will be purchased from Dell (as long as Dell is
no more than * * * than next closest competitor on price) per Company's
specifications. Dell will provide Company with hardware with pricing to be
determined at a later date.

     2.8  End-User E-Mail. Dell will have the option of using a Dell-provided
e-mail application. If Dell provides the e-mail application, Dell will retain
* * * generated from the e-mail application.

     2.9  Page Selection. Dell shall have the right to select specific tools and
applications from DigitalWork.com that it will offer to users. Furthermore,
DigitalWork.com will prohibit users who access these solutions from navigating
to additional solutions not approved by Dell. Any development work required to
accomplish this measure will be the sole responsibility of Digital Work.

     2.10  'Return to DellBizNet' buttons. Company will place a 1 inch by 1 inch
button at the top of all Dell provided pages which contains a link back to the
DellBizNet home page. Button will be placed above the fold in the top left
portion of the page.

     2.11  Change in pages. Dell retains sole discretion to increase or
decrease the number of DigitalWork.com provided pages that are offered on the
DellBizNet portal, provided it maintains a minimum of six workshops and a
majority of the services contained therein. The required six workshops will be
reviewed in good faith on a quarterly basis.

     2.12  Additional Partners. Dell retains the right to supplement DellBizNet
with additional content from other third party suppliers regardless of whether
or not similar services are offered by DigitalWork.com. At Dell's sole
discretion, DigitalWork.com will integrate these services onto the DellBizNet
platform according to the following definitions. Level One Integration requires
Company to integrate the specified services into the DigitalWork.com Business
Partner Program, which includes the DigitalWork.com Learn About It format. Dell
can request up to five Level One Integration projects per 30-day period. The fee
for Level One Integration will be * * * of the Company's standard Business
Partner Program fee. Level Two Integration requires the Company to integrate the
specified service and provide the UI, customer support, billing and settlement.
Dell may request up to two Level Two Integration services in any 30-day period.
The Company will provide Dell with a scope of work estimate for each Level Two
service. The Company and Dell will mutually agree to the implementation. Company
will cover the first 320 man-hours of integration work per month. Dell will pay
for any additional work during the same 30-day period at the rate of * * *
dollars per hour. Level Two integration will be available after April 1st. Prior
to April 1st, Company will perform Level Two Integration projects on a best
efforts basis. Financial considerations of Level Two Integration projects will
be mutually agreed upon on a case by case basis.

3.   Reporting

     3.1  General. Company shall provide Dell with weekly online traffic reports
and appropriate Web-based traffic reporting tools. After March 1st, Company will
provide daily traffic reports and appropriate Web-based traffic reporting tools.

     3.2  Account Manager. Company shall provide Dell with a dedicated account
manager and access to additional resources if necessary in order for Dell to
accurately interpret the usage information and End-User Data.

     3.3  Payments. Company shall provide Dell with accurate monthly reporting
of all payments derived from DellBizNet which are payable under Section 5 of
this Work Statement.

     3.4  Progress Reports. Upon reasonable request by Dell, representatives of
the parties shall meet for a formal progress presentation during which Company
shall describe the status of the work required under the Work Statement. Such
presentation shall provide projections of the time of completion, and the status
of Company's services, and shall address any problems that have come to
Company's attention and Company's views as to how such problems may be resolved.

                                    Page 2
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

4.   Advertising

     Consistent with Section 5 of the Agreement, Dell will retain the right to
sell advertising on all DellBizNet Web pages under the existing advertising
revenue share model with Company. The price of such advertising by Dell must be
equal to or more than the current Company standard advertising rate card.

5.   Promotion of DellBizNet

     5.1  Registered User newsletter: Company grants Dell the right to market
its solutions to its registered user base on a monthly basis. Newsletter will be
Dell branded and will incorporate a DigitalWork.com micro-brand.

6.   Fees and Other Payment Terms

     6.1  E-commerce Transaction Fees. Company shall pay Dell * * *.

     6.2  Advertising Revenue. Company shall pay Dell a fee equal to * * * of
the total revenue generated from advertising on DigitalWork.com pages supplied
to the DellBizNet portal.

     6.3  Registered user fees: DigitalWork.com will pay Dell * * * for each
user who registers to become a DigitalWork.com end user and affirms the
DigitalWork.com Terms of Service.

     6.4  E-Commerce Registered User fees. Company will pay Dell * * * for each
DigitalWork.com E-Commerce Customer.

     6.4  Setup and maintenance fees: none.

     6.5  Dell E-Commerce Relationships. Dell will retain all revenue derived
from Dell-negotiated non DigitalWork.com provided e-commerce relationships
promoted on DellBizNet derived from the independent marketing and sales efforts
of Dell. Dell will retain complete flexibility in promotion and positioning of
Dell-negotiated e-commerce relationships on DellBizNet. However, financial
considerations of any Level Two Integration Projects performed by Company will
be settled pursuant to Section 2.12 of Exhibit 3 Work Statement.

     6.6  Dell warrants in DigitalWork.com: The Company agrees to provide Dell
with a warrant to purchase 150,000 shares of the Series D Preferred Stock of the
Company as discussed on section 14.4.

     6.7  Performance fees: Dell will pay Company * * * for the difference
between * * * and the total number of DigitalWork.com E-Commerce Customers
delivered in the first twelve months from the launch date.

     6.8  Mail Revenues. Dell will retain all revenue derived from any Dell-
provided e-mail application integrated with DellBizNet.

     6.9 Management fees. Dell will pay Company exactly one year from the launch
date of DellBizNet.com a management fee not to exceed $2,000,000. The amount of
the fee will be determined as follows: (40,000 minus number of DigitalWork.com
E-Commerce customers during first year) multiplied by $50. The parties believe
that the combination of the Management Fee and DigitalWork.com e-commerce
customer revenue will not be less than $2,000,000. Furthermore, each e-commerce
customer delivered by Dell to the Company will generate a minimum of * * *
during the first twelve months after launch.

     6.10  Contract Slotting fee. Company will pay Dell a $2,000,000 exactly one
year from the launch date of DellBizNet.com in order to maintain relationship
with DigitalWork.com Registered Users.

     6.11  Payments from Company to Dell will be due within 30 days of the end
of each calendar quarter. With each payment, DigitalWork.com will provide to
DELL documentation reasonably detailing the calculation of the payment.
7.   Special Terms

     In the event of any material error in the Services that could not
reasonably have been discovered prior to acceptance of the Services and is not
discovered until after acceptance of the Services, as Dell's sole and

                                    Page 3
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

exclusive remedy therefor, Company shall use commercially reasonable efforts to
remedy such error in a prompt manner. If such error is not remedied in such
manner, then Dell shall be entitled to a refund of an equitable portion of fees
paid to Company on a pro rata basis in the same proportion as the error reduces,
if at all, the value to Dell of the Web site to which such error relates.

8.   Implementation; Work Schedule

     8.1  Schedule and Performance Milestones. This schedule sets the target
dates and Performance Milestones for the preparation and delivery of the
Services by Company.
<TABLE>
<CAPTION>
           Performance Milestone                   Responsible Party                    Target Date
-------------------------------------------  -----------------------------  ------------------------------------
<S>                                          <C>                            <C>
Work Statement Executed                              Dell/Company                          * * *
Preliminary draft of DW portal pages                    Company                            * * *
 prepared
Dell finalizes specific pages that will be               Dell                              * * *
 used
Dell branding and `Return to DellBizNet'                Company                            * * *
 buttons in place on all DigitalWork.com
 pages
Site fully prepared for launch                       Dell/Company                          * * *
</TABLE>

     8.2  Testing Procedures (if any)

     (in each case, involving both quality and function)

     8.3  Location of Work Facilities. Substantially all of the work will be
conducted by Company at its regular office located in Chicago, Illinois.

9.   Term.

     This Work Statement will have the same Term as the Agreement.

<TABLE>
<CAPTION>
DigitalWork.com, INC.                    DELL PRODUCTS L.P.
<S>                                      <C>
By: /s/ Craig A. Terrill                 By:
    __________________________________       __________________________________

Printed Name: ________________________   Printed Name: ________________________

Title: _______________________________   Title: _______________________________

Date: ________________________________   Date: ________________________________
</TABLE>

                                    Page 4
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED

                                   EXHIBIT 4

                               INSURANCE COVERAGE

     Statutory workers compensation insurance in the state(s) or jurisdiction in
which Company's employees perform services for Dell, and employer's liability
insurance with limits of not less than $500,000: (i) for each accident; and (ii)
for each employee for occupational disease; or (iii) policy limit for disease.
Such policy shall be endorsed to name Dell as Alternate Employer to prevent
Company's workers' compensation carrier from denying coverage based on a claim
of employment status. Company hereby waives all claims and causes of action
against Dell, its officers, directors and employees for any and all injuries
suffered by Company's employees.

     Commercial General Liability insurance with limits for bodily injury and
property damage liability of not less than $1,000,000 personal injury each
occurrence, $2,000,000 general aggregate and products/completed operations
coverage which shall include premises/operations liability, independent
contractors liability, and broad form contractual liability specifically in
support of, but not limited to, the indemnity provisions set forth in this
Agreement. This policy shall include a waiver of subrogation in favor of Dell;
will be endorsed to include Dell as Additional Named Insured; will contain
cross-liability and severability of interest coverage and shall state that such
insurance is primary insurance as regards any other insurance carried by Dell.

     Business automobile liability insurance with a limit of not less than
$1,000,000 per occurrence for bodily injury and property damage liability
written to cover all owned, hired and non-owned automobiles arising out of the
use thereof by or on behalf of the Company and its employees. This policy shall
include a waiver of subrogation favor of Dell, be endorsed to include Dell as an
Additional Named Insured, and shall state that such insurance is primary
insurance as respects any insurance carried by Dell.

     Prior to the commencement of any work or service as provided for herein,
Company shall furnish to Dell insurance certificates on standard Accord form,
endorsements, or evidence of coverage signed by authorized representatives of
the companies providing the coverage required under the terms of this Agreement.
All policies providing coverage shall contain provisions that no cancellation,
non-renewal or material changes in the policy shall become effective, except on
thirty (30) days' written notice thereof to Dell. Upon request and without
expense, Company shall furnish Dell with certified copies of said insurance
policies signed by authorized representatives of the insurance companies
providing the coverage as required herein.

     Failure to secure the insurance coverages, or the failure to comply fully
with any of the insurance provisions of this Agreement as may be necessary to
carry out the terms and provisions of this Agreement shall be deemed to be a
material breach of this Agreement. The lack of insurance coverage does not
reduce or limit Company's responsibility to indemnify Dell as set forth in this
Agreement.

     Any and all deductibles and premiums associated with the above described
insurance policies shall be assumed by, for the account of, and at the sole risk
of Company.

     Dell reserves the right to review the insurance coverage requirements of
this Agreement and to make reasonable adjustments to such requirements or to
require other types of policies to support the level of Services being performed
by Company or the purchases being made by Dell from Company at any time, at
Company's sole cost, unless otherwise agreed to by Dell.

                                    Page 1PURCHASE AND SALE AGREEMENT

 
  
 

   

 

  

  

 Exhibit 10.10

  

 PURCHASE AND SALE AGREEMENT

 

 Dated as of March 10, 2000

  

 effective as of January 31, 2000

 

 by and between

 

 BLUE STAR IMPORTS, L. P. 

 

 And

 

 SCHOTTENSTEIN STORES CORPORATION

 

  

  

  PURCHASE AND SALE AGREEMENT

  

         THIS PURCHASE AND SALE
   AGREEMENT (this "Agreement") is dated as of March 10, 2000,
   effective as of the 31st day of January, 2000, by and between SCHOTTENSTEIN
   STORES CORPORATION, a Delaware corporation ("Seller") and BLUE STAR
   IMPORTS, L.P., a Pennsylvania    limited partnership ("Buyer
   "). 

  BACKGROUND

  

         A.    
       The Value City Imports Division of Seller (the
   "Division") is engaged in    the business of importing into the
   United States goods and merchandise for resale    for the account of Buyer
   and certain of its affiliates as well as certain other    retail store
   chains and affiliates of Seller.

 

         B.    
       Buyer desires to acquire from Seller, and Seller
   desires to transfer to Buyer, all of the Division's assets and business that
   pertain to the importation into the United States, for the account of Buyer,
   American Eagle Outfitters, Inc., a Delaware corporation and an affiliate of
   Buyer ("AEOI") and any and all other subsidiaries of Buyer
   or AEOI (Buyer, AEOI and their subsidiaries are hereinafter collectively
   referred to as the "AEO Companies"), of goods and
   merchandise for resale by any of the AEO Companies (collectively,
   "AEO Merchandise") which merchandise may include but shall
   not be limited to wearing apparel, textile goods, shoes and other goods and
   accessories, all in accordance with and subject to the terms of this
   Agreement.

 

  PROVISIONS

 

          In consideration of
   the foregoing premises and of the mutual covenants hereinafter contained and
   intending to be legally bound hereby, the parties covenant and agree as
   follows:

 

  ARTICLE I
 

 DEFINITIONS

  

         Section 1.01.
   Definitions. As used herein, the following terms have the meanings
   assigned to them below, unless the context in which any such term is used
   requires otherwise:

         "AAA"
   means American Arbitration Association.

         "AEO Companies" has
   the meaning ascribed to such term in the second recital to this
   Agreement.

         "AEOI" has the
   meaning    ascribed to such term in the second recital to this Agreement.

         "AEO Merchandise
   " has the meaning ascribed to such term in the second recital to
   this Agreement.

         "Agreement
   " means this Purchase and Sale Agreement as amended from time to
   time.

         "Assignment and
   Assumption Agreement" means the agreement, substantially in the
   form of Exhibit A hereto, pursuant to which (i) Buyer will assume and
   undertake to perform, satisfy and discharge the Assumed Liabilities and (ii)
   subject to the provisions of Section 3.04 hereof, Seller will assign the
   Assumed Contracts and the Prepaid Expenses to Buyer.

         "Assumed Contracts
   " means all rights and interests of the Division and/or Seller
   under all contracts, agreements, deposits, bonds, manifests, and open
   purchase and sale orders of the Business, including but not limited to those
   other contracts, etc. identified on Schedule 1 hereto.

         "Assumed Liabilities
   " has the meaning ascribed to such term in Section 3.04 hereof.

         "Bill of Sale
   " means a bill of sale from Seller to Buyer in substantially the
   form attached hereto as Exhibit B.

         "Board of Directors
   " means the Board of Directors of AEOI.

         "Books and Records
   " means all books, records, logs, customer lists and other
   commercial records or documents of Seller relating to the Business.

         "Business"
   means the business of the Division relating to the importation of AEO
   Merchandise for the AEO Companies, the document production and
   administration arising from or relating to the importation of the AEO
   Merchandise and all assets, goodwill and relationships with customers,
   suppliers, shippers and customs agents associated therewith.

         "Buyer"
   has the meaning described to such term in the preamble to this Agreement.

         "Buyer's Accountants
   " means Buyer's in-house accounting personnel and such other
   accountants as may be selected by Buyer.

         "Closing"
   has the meaning ascribed to such term in Section 6.01 hereof.

         "Closing Balance
   Sheet" has the meaning ascribed to such term in Section 3.03
   hereof.

         "Closing Date
   " has the meaning ascribed to such term in Section 6.01 hereof.

         "Closing Financial
   Statements"    has the meaning ascribed to such term in Section 3.03
   hereof.

         "Closing Profit and Loss
   Statement" has the meaning ascribed to such term in Section 3.03
   hereof.

         "Committee
   " means the Independent Committee of the Board of Directors of AEOI.

         "Default" means any
   default or breach that arises out of or results from the Closing or any act,
   omission or occurrence prior to the Closing.

         "Detailed Accounting
   " has the meaning ascribed to such term in Section 3.03 hereof.

         "Dispute"
   is used as defined in Section 3.06 hereof.

         "Division"
   is used as defined in the first recital to this Agreement.

         "Employee Benefit
   Plan"    means any "employee benefit plan", as such term is defined in
   Section 3(3) of    ERISA, and all other employee compensation and benefit
   plans of Seller that    relate to the employees engaged in the Business
   (including all bonus, profit    sharing, incentive compensation and deferred
   compensation plans maintained by    Seller or to which Seller contributes or
   has contributed that relate to the    Business).

         "Employment
   Agreements" means the Employment Agreements between Buyer and Guy
   Bradford and Hank Shechtman, and pursuant to which Buyer shall hire Messrs.
   Bradford and Shechtman effective as of the Closing Date. 

         "Employment
   Practices and Shared Services Agreement" means the Employment
   Practices and Shared Services Agreement between Seller and Buyer
   substantially in the form of Exhibit C hereto, pursuant to which Buyer and
   Seller will undertake to address the allocation of cost and expense of
   certain shared services, and the use of the Software and Intellectual
   Property by Buyer, following the Closing Date and to observe certain
   prohibitions with respect to hiring current employees of each other with
   respect to the Business.

         "Encumbrance" means
   any lien, claim, charge, security interest, restriction or encumbrance of
   any    nature or kind, other than Permitted Encumbrances.

         "ERISA" means
   the Employee Income Security Act of 1974, as amended.

         "ERISA Affiliate"
   means    any trade or business, whether or not incorporated, which is part
   of a controlled    group as determined under ERISA Section 4001(a)(14).

         "Excluded
   Liabilities"    has the meaning ascribed to such term in Section 3.05
   hereof.

         "Fairness
   Opinion" means the opinion of Houlihan Lokey Howard & Zukin
   Financial Advisors, Inc. dated March 9, 2000 to the Committee, in which such
   firm opined as to the fairness of the Purchase Price to be paid by Buyer in
   exchange for the Purchased Assets and the Business.

         "Financial
   Statements"    means, collectively, the Year-End Financial Statements
   and the Monthly Financial    Statements of the Business.

         "Good Standing
   Certificate"    means one or more certificates from the secretary of the
   state and/or the department    of revenue or taxation of a jurisdiction to
   the effect that the corporation    that is the subject of such certificate
   is a corporation presently subsisting    in good standing under the laws of
   such jurisdiction and has paid all franchise    and/or capital stock taxes
   required to be paid by such corporation to such jurisdiction.

         "Insurance Policies"
   has the meaning ascribed to such term in Section 4.01(r) hereof.

         "Intellectual
   Property"    means all United States and foreign patents and patent
   applications, the inventions    claimed in said patents and patent
   applications, all related trade secrets,    know-how, methods and processes,
   and all copyrights, technology and proprietary    information necessary for,
   relating to, or used or useful in connection with,    the Business, the
   Contracts and/or the Work in Process.

         "Law" means any
   presently    existing law, statute, ordinance, rule, regulation or code
   adopted, enacted    or promulgated by any government or governmental
   agency.

         "Material Adverse
   Effect"    means a material adverse effect on the results of operations
   or financial condition    of any of the Business or the Purchased Assets.

         "Monthly Financial
   Statements"    means Seller's interim financial statements for the
   Division as of the following    dates and for the periods then ended:
   October, 1999 and December, 1999, copies    of which have been provided to
   Buyer.

         "Officers'
   Certificate"    means a certificate signed by the Chairman of the Board
   of Directors, the President    or Vice President and by the Treasurer, an
   Assistant Treasurer, the Secretary    or an Assistant Secretary of any
   corporation delivering such certificate, or    by the same such officers of
   the corporate general partner of any partnership    delivering such
   certificate.

         "OSHA" means the
   Occupational    Safety and Health Act.

  

         "Other Seller
   Documents"    has the meaning ascribed to in Section 3.05(a) hereof.

         "Permits and
   Licenses"    means all of the licenses and permits, certificates of
   authority and other approvals    and authorizations of Seller, governmental
   or otherwise, that relate to or are    necessary for or used in connection
   with the Business or the Purchased Assets    including, without limitation,
   those identified on Schedule 2 hereto.

         "Permitted
   Encumbrances"    means, collectively, mechanics', carriers', workmen's,
   repairmen's or other    like liens arising or incurred in the ordinary
   course of conduct of the Business,    liens for taxes, assessments and other
   governmental charges that are not due    and payable or that may thereafter
   be paid without penalty and other imperfections    of title or encumbrances,
   if any, that do not materially (i) detract from the    value of the property
   subject thereto or (ii) impair the operation of the Business.

         "Personal Property"
   means all machinery, equipment, software, systems, and all other personal
   property,    tangible and intangible, of Seller that are listed or referred
   to on Schedule    3 hereto.

         "Pre-Closing
   Adjustment" has the meaning ascribed to such term in Section 3.02
   hereof.

         "Pre-Closing
   Liabilities" means all liabilities arising out of ownership of the
   Purchased Assets and conduct of the Business by Seller prior to the Closing
   Date.

         "Prepaid Expenses"
   means    all prepaid expenses and deposits in connection with the
   Business.

         "Purchase Price" has
   the meaning ascribed to such term in Section 3.01 hereof.

         "Purchased Assets"
   has    the meaning ascribed to such term in Section 2.01 hereof.

         "Seller" has the
   meaning    ascribed to such term in the preamble to this Agreement.

         "Seller Operational
   Liabilities" means all Pre-Closing Liabilities arising in whole or
   in substantial part out of the actions of a Seller Responsible Party.

         "Seller Responsible
   Party" means the Seller, its officers, directors, contractors,
   agents and/or employees

         "Seller Transfer
   Documents"    means, collectively, the Assignment and Assumption
   Agreement, and the Bill of    Sale.

         "Seller's
   Accountants"    means Seller's in-house accounting personnel and/or such
   other accountants as    Seller may select.

         "Software"
   means all computer programs and licenses therefor (including user manuals,
   bug fixes, corrections, enhancements, updates, or other modifications to
   such programs or manuals) used or useful in connection with, or otherwise
   relating to, the Business, including without limitation the software
   identified on Schedule 4 hereto.

         "Year-End Financial
   Statements"    means the Division's unaudited financial statements as of
   July 31, 1999, 1998,    1997 and for the years then ended, copies of which
   have been provided to Buyer.  

  ARTICLE II
 

 PURCHASE AND SALE; DESCRIPTION OF ASSETS

          Section 2.01.
   Purchased Assets. In accordance with, and subject to the terms and
   conditions of, this Agreement, Buyer shall purchase from Seller, and Seller
   shall sell, assign, convey, transfer and deliver to Buyer, free and clear of
   any and all Encumbrances, the Business including, without limitation, the
   following assets and properties (collectively, the "Purchased
   Assets"):

         (a)    
       the Personal Property;

         (b)    
       the Assumed Contracts (provided that where Seller is
   required to continue to be a party to such contracts or where Seller will
   continue to require or perform services under such contracts, Seller shall
   use its best efforts to add Buyer as an additional party, rather than the
   sole transferee, of such contracts);

         (c)    
       the right to use the Intellectual Property and
   Software pursuant to the Employment Practices and Shared Services
   Agreement;

         (d)    
       the Permits and Licenses; 

         (e)    
       the Books and Records as identified on Schedule 14
   (which listed items identified on Schedule 14 are to be delivered to Buyer
   at Closing; and Buyer shall have access to and the right to copy all other
   Books and Records);

         (f)    
       the Prepaid Expenses.

         Seller acknowledges and
   agrees that, with respect to any Assumed Contracts, which are, in their
   nature, by law, by their terms or otherwise, nonassignable, or which contain
   a covenant against assignment, this instrument shall, notwithstanding
   anything elsewhere herein contained, be construed as an assignment to Buyer
   of the equitable interest in the same insofar as is legally permissible
   without violation of law or breach of the terms or condition thereof, with
   the right in Buyer or its successors and assigns (i) to have said claims,
   contracts, commitments or other agreement, if any, held in trust by Seller
   so as to enable Buyer or its successors and assigns to use and enjoy the
   full
 benefit thereof, (ii) to have transferred to Buyer or its successors or
   assigns any and all such property or rights which shall become assignable as
   soon as the same shall become assignable, and (iii) to take and have taken
   any action which may be taken without violation of law and without any
   breach as aforesaid which is necessary or appropriate to make such contract,
   property or rights assignable. Seller agrees that in any instance in which
   nonassignability of any such contract, property or rights may be removed by
   the consent of any party or parties, Seller will use its best efforts to
   obtain the consent of all such parties to the assignment of the property or
   rights in question to Buyer. If such a consent is not obtained, or if an
   attempted assignment would be ineffective or would affect Seller's rights so
   that Buyer or its successors and assigns in fact would not receive such
   contract, property or rights, Seller will cooperate with Buyer or its
   successors and assigns on any reasonable arrangement, not contrary to law,
   designed to provide for Buyer or its successors and assigns the benefit
   under any such Assumed Contracts and enforcement thereof, and for the
   benefit of Buyer or its successors and assigns, of any and all rights of
   Seller against any party thereto arising out of breach or cancellation by
   such party or otherwise.

 ARTICLE III
 

 PURCHASE PRICE

         Section 3.01.
   Purchase Price. In exchange for the Business and the Purchased
   Assets, Buyer shall deliver to Seller, by wire transfer of immediately
   available funds at the Closing the sum of Eight Million Five Hundred
   Thousand Dollars ($8,500,000) (the "Purchase Price"), plus or minus
   customary prorations. 

         Section 3.02.
   Pre-Closing Adjustment. On the day immediately prior to Closing,
   Seller shall apply any deposits and sums previously received from the AEO
   Companies as of such date, in the following manner: First to billed accounts
   receivable balances, then to any unbilled receivables relating to the
   importation of AEO Merchandise for any AEO Companies. Seller acknowledges
   and agrees that after January 31, 2000 no profit shall be charged by Seller
   to Buyer for importing or other services provided by Seller after January
    31, 2000 to Buyer in connection with the Business. The adjustment as
   described in this Section 3.02 is called the "Pre-Closing
   Adjustment".

         Section 3.03.
   Post Closing Adjustment. Within forty-five (45) days following the
   Closing, Seller shall prepare and deliver to Buyer a balance sheet for the
   Division dated as of the Closing Date (the "Closing Balance Sheet"),
   a profit and loss    statement for the Division for the period commencing
   August 1, 1999 and ending    on the Closing Date (the "Closing Profit and
   Loss Statement"), a detailed    accounting of all prepaid expenses and
   accounts payable of the Business and    all unbilled costs and expenses paid
   by Seller prior to Closing for Buyer's    account with respect to
   importation of AEO Merchandise by Seller (the "Detailed
   Accounting") (the Closing Balance Sheet, the Closing Profit and
   Loss Statement and Detailed Accounting being collectively called the
   "Closing Financial Statements"), each of which shall be prepared in a
   manner consistent    with the Financial Statements and in accordance with
   generally accepted accounting    principles. Following the Closing, Buyer's
   Accountants and Seller's
 Accountants shall have the right to review and audit the Closing Financial
   Statements. Buyer's Accountants shall notify Seller of their disagreement
   with any amount shown on or underlying the Closing Financial Statements
   within ninety (90) days following delivery thereof. In the event that
   Buyer's Accountants deliver notice of any disagreement, Buyer's Accountants
   and Seller and/or Seller's Accountants shall meet and attempt to resolve
   such disagreement and to agree upon a mutually acceptable presentation of
   such statements and/or schedule. Should Buyer's Accountants and Seller
   and/or Seller's Accountants be unable to reach such an agreement within
   thirty (30) days after delivery by Buyer's Accountants of a notice of
   disagreement, the matter shall be submitted within five (5) business
   days following expiry of such thirty (30) day period to a "Big Five"
   accounting firm selected by Seller and Buyer or, if Buyer and Seller are
   unable to agree on such accounting firm within such five (5) business day
   period, the matter shall be submitted by the parties to Price Waterhouse
   Coopers on the first business day following expiry of such five (5) business
   day period, and the parties agree to use their best efforts to cause the
   decision of such third accounting firm to be rendered within thirty (30)
   days following such submission. The decision of such third accounting firm
   shall be conclusive and binding on the parties. The parties agree to effect
   appropriate adjustments between them based upon the Closing Financial
   Statements as they exist following resolution of any disagreement in
   accordance with the foregoing.

         Seller shall bear the costs
   and expenses of Seller's Accountants, Buyer shall bear the cost and expenses
   of Buyer's Accountants and, in the event of any referral of a dispute to a
   third accounting firm in accordance with the foregoing, Seller and Buyer
   agree to share equally the costs and expenses of such third accounting
   firm.

         Section 3.04.
   Assumption of Liabilities. At the Closing, Buyer and Seller shall
   execute and deliver the Assignment and Assumption Agreement pursuant to
   which Buyer shall assume, undertake to perform, satisfy and discharge only
   the following liabilities and obligations of Seller and/or the Division
   (collectively, the "Assumed Liabilities"):

         (a)    
       the liabilities arising out of ownership of the
   Purchased Assets and conduct of the Business by Buyer (and not caused by a
   Seller Responsible Party) as arise out of events first occurring or
   conditions first existing after the Closing Date; and

         (b)    
       those Pre-Closing Liabilities (other than Seller
   Operational Liabilities) arising with respect to the importation of AEO
   Merchandise prior to the Closing Date which were not caused by a Seller
   Responsible Party (such as, for example, a customs audit liability of the
   Seller following Closing Date that resulted from incomplete or inaccurate
   information provided by Buyer, or another party other than a Seller
   Responsible Party, to the Seller).

         Buyer shall be solely
   responsible for all liabilities, demands, damages, costs and expenses
   (including reasonable attorney's fees), and shall indemnify, defend and hold
   harmless the Seller and its affiliates and their respective officers and
   directors,
 shareholders and representatives, from and against the Assumed Liabilities and
   all liabilities, claims, demands, damages, costs and expenses (including
   reasonable attorney fees) arising from the conduct, actions, inactions or
   omissions of Buyer, its officers, directors, contractors, agents or
   employees (and not caused by a Seller Responsible Party) after the Closing
   Date.

             
       Section 3.05. Excluded Liabilities.
   Anything in this Agreement to the contrary notwithstanding, Buyer shall not
   assume (other than only the Assumed Liabilities expressly agreed to be
   assumed by Buyer pursuant to the provisions of paragraph 3.04 of this
   Agreement) and shall not undertake to pay, perform, satisfy or discharge any
   liability or obligation of Seller, the Business or the Division or any other
   person or entity of any kind, absolute or contingent, known or unknown
   (collectively, the "Excluded Liabilities"),  including without
   limitation the following:

         (a)    
       any liability or obligation of Seller that arises
   out of the transactions contemplated to occur pursuant to this Agreement or
   that results from any breach or default by Seller under this
   Agreement, the Seller Transfer Documents or any other agreement,
   certificate, assignment, document or instrument that may be executed or
   delivered in connection with this Agreement or the transactions contemplated
   to occur hereunder (the Seller Transfer Documents and such other documents
   being sometimes collectively referred to as the "Other Seller
   Documents");

         (b)    
       any liability or obligation relating to income,
   franchise, sales, use, payroll, unemployment, withholding real or personal
   property or any other taxes of Seller or the Division, including any
   interest or penalties related thereto; 

         (c)    
       any liability or obligation of Seller or the
   Division relating to indebtedness for borrowed money; 

         (d)    
       any liability or obligation relating to any Default
   by Seller under any of the Assumed Contracts or the Permits and Licenses;

         (e)    
       Reserved. 

         (f)    
       any liability or obligation of Seller or the
   Division relating to any illness, injury, occupational or other disease or
   other health or safety risk that arises out of or results from any act,
   omission or occurrence prior to the Closing, including without limitation
   those arising under Section 7.04 hereof;

         (g)    
       any liability or obligation relating to the
   employees of Seller or the Division (other than only accrued vacation pay
   and sick pay for Guy Bradford, Hank Shechtman, and for any other employee of
   Seller who Buyer hires effective as of the Closing Date), including any
   severance obligation and any compensation required to be paid and benefits
   required to be provided under any of the Employee Benefit Plans;

         (h)    
       any liability or obligation as shown on the
   Financial Statements (other than
 those liabilities mutually agreed to by Seller and Buyer (or as determined by
   the dispute resolution procedures) in accordance with the post-Closing
   adjustments contemplated pursuant to Section 3.03 hereof) or otherwise
   relating to any services performed by Seller or the Division prior to the
   Closing; 

         (i)    
       that portion of any liability or obligation relating
   to the violation of any Law relating to the Business or the Division that
   arises out of or results from any act, omission or occurrence of a Seller
   Responsible Party prior to the Closing;

         (a)    
       any liability or obligation of the Division to any
   of affiliates of Seller, except as expressly set forth in this Agreement;
   and

         (b)    
       any Pre-Closing Liability (other than only the
   Assumed Liabilities).

         Seller shall be solely
   responsible for all liabilities, demands, damages, costs and expenses
   (including reasonable attorney's fees), and shall indemnify, defend and hold
   harmless the AEO Companies and their respective officers, directors,
   shareholders and representatives, from and against all liabilities, claims,
   demands, damages, costs and expenses (including reasonable attorney's fees)
   arising or resulting from the Excluded Liabilities and/or the conduct,
   actions, inactions or omissions of a Seller Responsible Party prior to the
   Closing Date. To the extent that a third party, not Buyer or a Seller
   Responsible Party, is responsible for such liabilities, damages, costs or
   expenses being imposed against Buyer, then the Seller and Buyer will use
   their best efforts to pursue such third party and obtain a recovery
   therefrom. 

         Section 3.06.
   Disputes as to Assumed Liabilities or Excluded Liabilities. In the
   event that a dispute or controversy (each a "Dispute")
   arises between Seller and Buyer as to whether and/or to what extent Buyer, a
   Seller Responsible Party, or another party is responsible (as a result of
   the conduct, actions, inactions or omissions of Buyer, such Seller
   Responsible Party, or such other party) for a liability, loss, damage,
   demand, cost or expense, and if the Dispute cannot be settled through direct
   discussions, then Seller and Buyer shall resolve the Dispute by binding
   arbitration administered by the American Arbitration Association (
   "AAA") in Pittsburgh, PA in accordance with its Commercial
   Arbitration Rules and judgment on the award rendered by the arbitrator may
   be entered in any court having jurisdiction. The arbitration proceedings
   shall be conducted on an expedited basis before a neutral arbitrator (to be
   selected by Seller and Buyer, or if they cannot agree, then by the chairman
   of the Pittsburgh office of the AAA) who has been actively engaged in the
   practice of law for at least fifteen (15) years, specializing in commercial
   transactions with substantial experience in customs and importation matters.
   The cost of any arbitration proceedings shall be split equally between
   Seller and Buyer. 

         Section 3.07.
   Purchase Price Allocation. The Purchase Price shall be allocated
   among the Purchased Assets in accordance with Schedule 5 hereto and the
   parties hereto shall use such allocations in preparing all income tax
   returns and related reports

 (including Form 8594) required to be filed with the Internal Revenue
   Service and any state or local tax authority.

 ARTICLE IV
 

 REPRESENTATIONS AND WARRANTIES

 

         Section 4.01.
   Seller's Representations and Warranties. Seller hereby represents and
   warrants to Buyer that:

         (a)    
       Organization and Standing. Seller is a
   corporation duly organized, validly existing and in good standing under the
   laws of the State of Delaware. Seller has all requisite power and authority
   to own and operate the Division and the Business. Seller is duly qualified
   to do business and is in good standing in the jurisdictions of Ohio,
   Delaware and Pennsylvania as listed on Schedule 6. Such jurisdictions are
   the only jurisdictions where the character of the properties owned or leased
   by Seller in its conduct of the Business, or the nature of the activities
   conducted by it in connection therewith, makes such qualification necessary,
   except where the failure to be so qualified would not, individually or in
   the aggregate, have a Material Adverse Effect.

         (b)    
       Due Authorization and Execution, etc. Seller
   has all requisite power and authority (corporate or otherwise) to enter into
   and perform this Agreement and to consummate the transactions contemplated
   hereby; this Agreement has been duly authorized, executed and delivered by
   Seller and constitutes a valid, binding and legal obligation of Seller,
   enforceable against Seller in accordance with its terms; and, when executed
   and delivered by Seller, each of the Other Seller Documents shall be duly
   authorized, executed and delivered by Seller and shall constitute a valid,
   binding and legal obligation of Seller, enforceable against Seller in
   accordance with its terms.

         (c)    
       Absence of Conflict. The execution,
   delivery and performance of this Agreement and the Other Seller Documents,
   and the consummation of the transactions contemplated to occur pursuant
   hereto and thereto (i) do not violate or conflict with the articles of
   incorporation or by-laws of Seller, (ii) to the best of Seller's knowledge
   (after due inquiry by Seller of Guy Bradford, Hank Shechtman and Mort Love
   of the Division) do not violate, conflict with, result in a breach of or a
   default under, or give any person or entity any right to terminate or
   modify, any right or obligation of Seller applicable to the Division, the
   Business or the Purchased Assets, (iii) do not violate, conflict with, or
   result in a breach of or a default under, any governmental or court-issued
   order, writ, judgment, decree, license, permit, approval or authorization of
   any kind applicable to the Division, the Business or the Purchased Assets,
   (iv) to the best of Seller's knowledge (after due inquiry by Seller of Guy
   Bradford, Hank Shechtman and Mort Love of the Division) do not and will not
   violate or conflict with any Law, and (v) to the best of Seller's knowledge
   (after due inquiry by Seller of Guy Bradford, Hank Shechtman and Mort Love
   of the Division) do not result in the loss of, or the creation or imposition
   of any Encumbrance against or with respect to, any of the rights, properties
   or assets of the Division, the Business or the Purchased Assets, other than
   such violations, conflicts,
 breaches or defaults in the case of any and all of the foregoing clauses (i)
   through (v) that, individually or in the aggregate, would not have a
   Material Adverse Effect.

         (d)    
       Title; Condition of Purchased Assets. Seller
   has good and valid title to all of the Purchased Assets. The execution and
   delivery of the Seller Transfer Documents at the Closing shall convey,
   transfer to and vest in Buyer good and valid title to all of the Purchased
   Assets, free and clear of any and all Encumbrances. The Purchased Assets
   constitute, in the aggregate, all of the property necessary for the
   operation of the Business in the manner in which and to the extent that it
   is currently being operated by Seller. All of the tangible Purchased Assets
   are in good operating condition and repair, subject to normal wear and
   maintenance, and are usable in the ordinary course of business as heretofore
   conducted by Seller.

         (e)    
       Financial Statements and Budget. Seller has
   furnished to Buyer the Financial Statements and the Budget for the Division.
   The Financial Statements were prepared in conformity with generally accepted
   accounting principles applied on a consistent basis and the Financial
   Statements present fairly the financial condition of the Division as of the
   dates thereof, and the results of its operations for the periods therein
   indicated (subject, in the case of the Monthly Financial Statements, to
   periodic and year-end adjustments). Except as disclosed in the Financial
   Statements, the results of operations of the Division reflected therein were
   not affected to a material extent by changes or inconsistencies in
   accounting policies or by the inclusion of extraordinary or exceptional
   items. The Financial Statements include as an accrued liability adequate
   provision for payments not yet due as of the date of the Financial
   Statements relating to the importation of merchandise for the Business. The
   Budget was prepared on the basis of good faith assumptions concerning the
   future prospects of the Business and in a manner consistent with prior
   results of operations.

         (f)    
       Absence of Material Adverse Change, etc.
   Except as set forth on Schedule 7, since July 31, 1999, (i) there has been
   no material adverse change with respect to the rights, properties, assets,
   liabilities, financial condition or operations of Seller in respect of the
   Division, (ii) the Business has been carried on and conducted in the
   ordinary and usual course in all material respects, (iii) Seller has
   preserved and maintained in all material respects each of the Permits and
   Licenses and the relationship of the Business with each of its material
   customers, customs agents, suppliers, shippers, and employees, (iv)
   reserved, (v) Seller has not on account of or with respect to the Business
   made any capital commitment or expenditure, or any unusual or extraordinary
   commitment or expenditure, or incurred or become liable for any debt or
   other obligation or liability (except for liabilities incurred in the
   ordinary course of business), or, except in the ordinary course of business,
   entered into any guaranty or agreement for the production or manufacture of
   goods or equipment or the providing of services, other than such commitments
   or expenditures that, individually or in the aggregate, would not have a
   Material Adverse Effect, (vi) Seller has not disposed of any of the Personal
   Property other than in the ordinary course of conduct of the Business and
   which disposition would not have a Material Adverse Effect, (vii) Seller has
   maintained the Personal Property in good repair (ordinary wear and tear
   excepted)
 and the Personal Property is in good operating condition, (viii) Seller is not
   in breach of or default under any contract or agreement relating to the
   Division or the Business, other than breaches or defaults that, individually
   or in the aggregate, would not have a Material Adverse Effect and, to the
   best of Seller's knowledge, no third party to any contract or agreement is
   in breach of or default under any such contract or agreement, other than any
   such breaches or defaults that, individually or in the aggregate, would not
   have a Material Adverse Effect, and (ix) except in the ordinary course of
   business, there have been no intercompany transactions or creations of
   payables among Seller or any of its affiliates relating to the Business.

         (g)    
       Intellectual Property. Except as set forth on
   Schedule 8 hereto, Seller owns and has good and valid title to, or has a
   valid and effective license to use, all patents, applications therefor,
   inventions, trade secrets, trademarks, service marks and applications
   therefor, trade names, copyrights and copyright registrations and
   applications therefor that cover any processes that are material to the
   Business, Seller has not been charged with (or threatened to be charged
   with) the infringement of, and, to the best of Seller's knowledge, Seller is
   not infringing on, any unexpired patent, common law or registered trademark,
   trade name or copyright (whether registered or not), trade secret or other
   proprietary right of any party in the United States or in any foreign
   country which is material to the Business. 

         (h)    
       Taxes, Duties and Tariffs. All duties,
   tariffs, import/export charges and fees and all required federal, state and
   local tax returns of Seller and the Division as it relates to the Business
   have been prepared and duly filed, and all duties, tariffs, import/export
   charges and fees and all federal, state and local taxes required to be paid
   with respect to the periods covered by such filings and returns as related
   in any manner to the Business have been paid or are being contested in good
   faith. Any such material good faith contests are correctly identified on
   Schedule 9 hereto. Seller shall timely file all returns and shall pay as and
   when due all taxes imposed on the sale of the Purchased Assets hereunder,
   and shall timely file all returns and pay as and when due all tax
   liabilities incurred in connection with the ownership and operation of the
   Business by Seller. Neither Seller nor the Division has received any notice
   (relating to the Business) that it is delinquent in the payment of any duty,
   tariff, import charge or fee, tax, assessment or government charge, and
   neither is liable for the payment of any assessed charge or penalty in
   respect of any duty, tariff, import/export charge, fee, tax or tax
   deficiency.

         (i)    
       Governmental Consents. To the best of
   Seller's knowledge (after due inquiry by Seller of Guy Bradford, Hank
   Shechtman and Mort Love of the Division), no authorization, consent, order,
   permit or approval of, or filing with, any governmental agency is necessary
   for the consummation by Seller of the transactions contemplated by this
   Agreement.

         (j)    
       Contracts, Agreements and Commitments, etc.
   Except for the Assumed Contracts, Seller is not a party to any material
   lease, contract, agreement or commitment of any kind, oral or written,
   relating to the conduct of the Business, nor are
 there any material leases, contracts, agreements or commitments of any kind,
   oral or written, that directly relate to the conduct of the Business or the
   Purchased Assets. All of the Assumed Contracts are valid, binding and
   enforceable obligations of Seller and in full force and effect in accordance
   with their terms (except to the extent that enforcement may be limited by
   applicable bankruptcy, insolvency, moratorium and other similar laws
   affecting creditors' rights generally and except to the extent that
   enforcement may be limited by general equitable principles). Seller is not
   in breach of or default under any of the Assumed Contracts other than any
   breaches or defaults that, individually or in the aggregate, would not have
   a Material Adverse Effect and, to the best of Seller's knowledge, no
   other party to any of the Assumed Contracts is in breach thereof or default
   thereunder, other than any breaches or defaults that, individually or in the
   aggregate, would not have a Material Adverse Effect.

         (k)    
       Permits, Licenses, Certificates of Authority,
   etc. To the best of Seller's knowledge (after due inquiry by Seller of
   Guy Bradford, Hank Shechtman and Mort Love of the Division), the Permits and
   Licenses constitute all of the permits, licenses, franchises, authorizations
   and concessions required by law and necessary to operate the Business, other
   than such permits, licenses, franchises, authorizations and concessions that
   the failure to obtain would not have, individually or in the aggregate, a
   Material Adverse Effect; the Permits and Licenses are valid and in full
   force and effect in accordance with their terms; and Seller is not in breach
   of or default under any of the Permits and Licenses other than any breaches
   or defaults that, individually or in the aggregate, would not have a
   Material Adverse Effect and, to the best of Seller's knowledge, no
   other party to any of the Permits and Licenses is in breach thereof or
   default thereunder, other than any breaches or defaults that, individually
   or in the aggregate, would not have a Material Adverse Effect.

         (l)    
       Litigation, Arbitration Proceedings, etc.
   Except as disclosed on Schedule 10 hereto or otherwise disclosed in writing
   to Buyer, (i) no litigation or investigation is pending or, to the best of
   Seller's knowledge, threatened against Seller in connection with or that
   might affect the Business, the Division (relating in any way to the
   importation of the AEO Merchandise) or the Purchased Assets and that is
   reasonably likely to have a Material Adverse Effect nor, to the best of
   Seller's knowledge, is there any basis therefor; (ii) to the best of
   Seller's knowledge, no litigation or investigation has been asserted against
   any third party with respect to the Business, the Division (relating in any
   way to the importation of the AEO Merchandise) or the Purchased Assets,
   whether by Seller, any affiliate of Seller or any third party, and that is
   reasonably likely to have a Material Adverse Effect; and (iii) no litigation
   or investigation has been asserted, instituted or threatened by Seller
   against any third party that affects or relates in any manner to the
   Business, the Division (relating in any way to the importation of the AEO
   Merchandise) or the Purchased Assets. Set forth on Schedule 10 is a true,
   correct and complete list of all litigation and claims made by or against
   Seller against or by customers and/or suppliers of the Business during the
   three year period immediately preceding the date hereof which would have a
   Material Adverse Effect on the Business or the Purchased Assets. Seller has
   made available to Buyer access to Seller's complete files with respect to
   each such litigation or claim.

         (m)    
       Compliance with Laws. To the best of Seller's
   knowledge (after due inquiry by Seller of Guy Bradford, Hank Shechtman and
   Mort Love of the Division), the Business and the Purchased Assets are in
   compliance with and, since July 31, 1999, have been conducted or used in
   conformity with all applicable Laws including, without limitation, labor and
   wage Laws, Laws relating to the health and safety of employees and consumers
   (including any applicable "right-to-know" Laws and OSHA Laws), Laws
   relating to the labeling, delivery, and operation of products, materials,
   machinery and equipment, Laws relating to the exportation and importation of
   the AEO Merchandise and all environmental Laws; except for such instances of
   noncompliance with any of the foregoing that, individually or in the
   aggregate, would not have a Material Adverse Effect. Except as to existing
   claims under forms CF28 and CF29 - none of which individually and in the
   aggregate would have a Material Adverse Effect, and except as otherwise
   disclosed in writing to Buyer, Seller has received no notices of any
   violation of Laws with respect to the Business, Division (relating to
   importation of AEO Merchandise), or the Purchased Assets which, following
   receipt of such notice, have not been fully and timely cured by Seller.
   Seller is not the subject of any outstanding OSHA citations or pending
   abatements based on any such citation which relate to the Business or the
   Purchased Assets; and none of the rights, properties, assets, liabilities,
   businesses or operations of the Division or the Business is subject to any
   judicial, regulatory or governmental order, writ, judgment, investigation,
   audit or decree of any kind directed to Seller or any of its affiliates.

         (n)    
       Employee Benefit Plans. Seller has delivered
   to Buyer complete and accurate copies of all Employee Benefit Plans. Seller
   has made on a timely basis all required contributions to all "employee
   benefit plans", as defined in Section 3(3) of ERISA, that relate to the
   Business. None of Seller or any of its ERISA Affiliates has incurred or will
   incur as of the Closing Date, or as a consequence of events occurring prior
   to the Closing Date, any of the following that relates to the Division or
   the Business: (i) any liability to the Pension Benefit Guaranty Corporation
   (other than for the payment of required premiums), (ii) any liability under
   Sections 4041, 4062, 4063, 4064 or 4069 of ERISA, (iii) any "withdrawal
   liability" to any "multi-employer pension plan", as defined in ERISA or (iv)
   any "accumulated funding deficiency", as defined in Section 302 of ERISA.

         (o)    
       Relations with Employees. Seller is not a
   party to nor is it bound by any collective bargaining or other union
   agreement with respect to the Business. Seller has made all payments it is
   contractually obligated to make in respect of persons employed by it with
   respect to the Business (other than payments not yet due for the current
   payroll period). No employee claim or grievance is pending against Seller
   with respect to those key employees of the Business identified on Schedule
   11 hereto and, with respect to all other persons who are in the Seller's
   employment with respect to the Business, no claims or grievances are pending
   against Seller, other than such claims or grievances that, individually or
   in the aggregate, would not have a Material Adverse Effect.

         (p)    
       Full Disclosure. No representation or
   warranty made by Seller in this Agreement, or in any Other Seller Document
   or exhibit provided to Buyer in connection with the transactions
   contemplated by this Agreement, contains any untrue statement of a material
   fact or omits to state a material fact necessary to make the statements made
   therein, taken as a whole, not misleading.

         (q)    
       Reserved. 

         (r)    
       Insurance Policies. Set forth on Schedule
    13 hereto is a true, correct and complete listing of all insurance
   policies applicable to the Business including, without limitation, those
   relating to product liability and comprehensive general liability
   (collectively, the "Insurance Policies").  The Insurance Policies are
   in full force and effect  in accordance with their terms and no premium
   payable thereunder which relates to any period prior to the Closing is
   unpaid or outstanding as of the date of this Agreement, or will be  unpaid
   or outstanding as of the Closing Date.  Set forth on Schedule 13 is a true,
   correct and complete listing of all claims relating to the Business as made
   by Seller under the Insurance  Policies in respect of any claims of
   customers and/or suppliers of the Business during the three year period
   immediately preceding the date hereof.  Seller has made available to Buyer
   access to Seller's complete files with respect to each such claim.

         (s)    
       Location of Business and Names. During the
   one (1) year-period immediately preceding the Closing (i) the Division has
   operated exclusively under the names Value City Imports, (ii) the Division's
   principal place of business has been and continues to be at 1800 Moler Road,
   Columbus, OH 43207 and/or at 2025 Corvair Avenue, Columbus, Ohio 43207 and
   (iii) all of the Personal Property has been located exclusively at 1800
   Moler Road, Columbus, OH 43207 and/or at 2025 Corvair Avenue, Columbus, Ohio
   43207.

         (t)    
       Liabilities. Except for such claims, debts
   and liabilities as are reflected in the Financial Statements or as otherwise
   disclosed in writing to Buyer, to the best of Seller's knowledge (after due
   inquiry by Seller of Guy Bradford, Hank Shechtman and Mort Love) neither the
   Division (as related in any manner to the importation of the AEO
   Merchandise) nor the Business has any outstanding indebtedness and is not
   subject to any claims, investigations or liabilities, pending or threatened,
   contingent or otherwise, (and Seller has received no notice of any such
   matters) other than trade obligations incurred in the ordinary course of
   business in amounts that are usual and normal, both individually and in the
   aggregate. Seller has provided to Buyer a true, accurate and complete list
   of the Assumed Liabilities (known to Seller as of the date of Closing) to be
   assumed by Buyer pursuant to the Assignment and Assumption Agreement as of
   the most recent practicable date prior to the date of this Agreement. 

         (u)    
       No Broker or Finder. Seller has not directly
   or indirectly retained or hired any broker, finder, financial adviser or
   other similar agent or representative in connection with this Agreement or a
   of the transactions contemplated hereby.

         Section 4.02.
   Buyer's Representations and Warranties. Buyer hereby represents and
   warrants to Seller as follows: 

         (a)    
       Organization and Standing. Buyer is a Limited
   Partnership duly organized, validly existing and in good standing under the
   laws of the Commonwealth of Pennsylvania. Buyer has all requisite power and
   authority to own and operate its property and assets and to conduct its
   business as now conducted.

         (b)    
       Due Authorization and Execution, etc. Buyer
   has all requisite power and authority to enter into and perform this
   Agreement and to consummate the transactions contemplated hereby; this
   Agreement has been, and the Assignment and Assumption Agreement, when
   executed, will be, duly authorized, executed and delivered by Buyer and
   constitutes, or when executed, will constitute, valid, binding and legal
   obligations of Buyer, enforceable in accordance with their terms.

         (c)    
       Absence of Conflict. The execution, delivery
   and performance of this Agreement and the Assignment and Assumption
   Agreement and the consummation of the transactions contemplated to occur
   pursuant hereto and thereto (i) do not and will not violate or conflict with
   the Limited Partnership Agreement of Buyer, (ii) to the best of Buyer's
   knowledge do not and will not violate, conflict with, result in a breach of
   or default under, or give any person or entity any right to terminate or
   modify, any material contract or agreement applicable to Buyer or any of the
   rights, properties, assets, liabilities, operations or businesses of Buyer,
   (iii) do not and will not violate, conflict with, result in a breach of or
   default under, or give any person or entity any right to terminate or
   modify, any governmental or court-issued order, writ, judgment, decree,
   license, permit, approval or authorization of any kind applicable to Buyer
   or any of the rights, properties, assets, liabilities, operation or
   businesses of Buyer, and (iv) to the best of Buyer's knowledge, do not and
   will not violate or conflict with any Law applicable to Buyer.

         (d)    
       No Broker or Finder. Buyer has not directly
   or indirectly retained or hired any broker, finder, financial advisor or
   other similar agent or representative in connection with the transactions
   contemplated hereby.

         (e)    
       Governmental Consents. No authorization,
   consent, order, permit or approval of, or filing with, any governmental
   agency is necessary for the consummation by Buyer of the transactions
   contemplated by this Agreement. 

         (f)    
       Full Disclosure. No representation or
   warranty made by Buyer in this Agreement, or in any exhibit provided to
   Seller in connection with the transactions contemplated by this Agreement,
   contains any untrue statement of a material fact or omits to state a
   material fact necessary to make the statements made therein, taken as a
   whole, not misleading.

 ARTICLE V
 

 CONDUCT OF BUSINESS PRIOR TO CLOSING

 

 Section 5.01. Preservation of Business Relationships and Conduct of
   Business. Seller hereby covenants to Buyer that, during the period from
   the date hereof through the Closing Date, (i) Seller shall conduct the
   Business in the ordinary and usual course in all respects; and (ii) Seller
   shall, except as mutually agreed, use its best efforts to preserve and
   maintain the Business organization intact, to keep available the services of
   the Business' current employees, to perform its obligations under the
   contracts to comprise the Assumed Contracts, to preserve its existing
   relationships with its customers, suppliers, customs brokers, and others
   having business relationships with it and to maintain the goodwill enjoyed
   by Seller with such persons for the benefit of Buyer. Buyer and Seller will
   cooperate with each other and proceed to prepare and file any necessary
   governmental or third party consents required to complete the transaction
   contemplated to occur pursuant hereto.

         Section 5.02.
   Other Pre-Closing Actions of Seller. Seller covenants and agrees
   that, pending the Closing, (i) Seller shall not take any action that is
   inconsistent with the satisfaction of any condition set forth in Section
   6.02 hereof; (ii) Seller shall furnish Buyer, as promptly as practicable,
   with such documents and information relating to the Business and the
   Purchased Assets as Buyer may from time to time reasonably request; (iii)
   Seller shall provide Buyer and its representatives with such access to the
   Business and the Purchased Assets as Buyer may from time to time reasonably
   request during normal business hours to conduct one or more inspections and
   investigations thereof; provided, that such inspections shall not
   unreasonably interfere with Seller's conduct of the Business; (iv) Seller
   shall pay and perform all of the debts, obligations and liabilities of the
   Business as and when they become due in the ordinary course; (v) cooperate
   with Buyer and its counsel in providing such other information (financial
   and otherwise) as Buyer or such counsel determines to be necessary or
   appropriate to prepare any filing with the Securities and Exchange
   Commission or other governmental authority as necessitated by this
   transaction (and the Seller agrees that, upon request by Buyer, it shall
   make available such of its officers, employees, agents and consultants,
   including its independent public accountants, as are reasonably necessary to
   assist Buyer in preparing such filings); and (vi) Seller shall use its best
   efforts to obtain the consents, which shall be reasonably satisfactory in
   form and substance to Buyer's counsel, of all parties whose consents are
   necessary to the conveyance, assignment, delivery and transfer of the
   Purchased Assets and/or the Buyer's operation of the Business following the
   Closing.

         Section 5.03.
   Pre-Closing Actions of Buyer. Buyer covenants and agrees that,
   pending the Closing, Buyer shall not take any action that is inconsistent
   with the satisfaction of any condition set forth in Section 6.02 hereof.

 ARTICLE VI
 

 CLOSING DATE; CONDITIONS AND TRANSACTIONS

         Section 6.01.
   Closing Date. Subject to the satisfaction or waiver of each of the
   conditions set forth in Section 6.02 hereof, the closing of the purchase and
   sale transactions contemplated to occur pursuant to this Agreement (the
   "Closing") shall be effective as of January 31, 2000 (the date
   on which the Closing is effective is hereafter  referred to as the
   "Closing Date"). 

         Section 6.02.
   Conditions to Closing. 

         (a)    
       All Parties. The obligations of each party
   hereto to consummate the purchase and sale transactions contemplated by this
   Agreement are subject to the following condition: no judicial, governmental
   or other action or proceeding shall have been instituted or be threatened
   that materially challenges this Agreement or any of the transactions
   contemplated hereby.

         (b)    
       Seller. In addition to the condition set
   forth in Section 6.02(a) hereof, the obligations of Seller to consummate the
   purchase and sale transactions contemplated by this Agreement are subject to
   the following conditions:

         (i)   
        Each of the warranties and representations
   made by Buyer in Section 4.02 hereof shall be true and correct in all
   material respects as of the Closing as if made on and as of the Closing
   Date;

         (ii)    
       Buyer shall have performed all of the obligations
   and satisfied all of the conditions required to be performed or satisfied by
   it at or prior to the Closing in connection with this Agreement and the
   transactions contemplated to occur pursuant hereto in all material
   respects;

         (iii)   
       At the Closing, Seller shall have received an
   Officers' Certificate from Buyer confirming the satisfaction of the
   conditions set forth in clauses (i) and (ii) of this Section 6.02(b);

         (iv)    
      Any and all consents, authorizations, approvals, waivers,
   estoppel certificates and releases from third parties that may, in the
   reasonable opinion of Seller or its legal counsel, be necessary to carry out
   and complete all of the transactions contemplated to occur pursuant to this
   Agreement shall have been obtained and be in full force and effect as of the
   Closing;

         (v)    
       RESERVED;

         (vi)    
       Buyer shall have delivered to Seller (A) a Good
   Standing Certificate from the State of Pennsylvania, (B) copies of Buyer's
   Certificate of Limited Partnership as currently in effect and all
   resolutions of Buyer's general partner adopted in connection with this
   Agreement and the transactions
 contemplated to occur pursuant hereto, each of which shall be certified by the
   general partner of Buyer to be true, correct and complete copies thereof and
   (C) an incumbency certificate of the general partner of Buyer;

         (vii)  
         Buyer shall have executed and delivered
   to Seller the Assignment and Assumption Agreement and the Employment
   Practices and Shared Services Agreement; and

         (viii)   
        Buyer shall have paid to Seller the Purchase
   Price.

 
         (c)    
       Buyer. In addition to the conditions set
   forth in Section 6.02(a) hereof, the obligations of Buyer to consummate the
   purchase and sale transactions contemplated by this Agreement are
   subject to the following conditions:

         (i)   
        Each of the representations and warranties
   made by Seller in Section 4.01 hereof shall be true and correct in all
   material respects as of the Closing as if made on and as of the Closing
   Date;

         (ii)    
       Seller shall have made all Pre-Closing Adjustments
   and performed all of the obligations and satisfied all of the conditions
   required to be performed or satisfied by it at or prior to the Closing in
   connection with this Agreement and the transactions contemplated to occur
   pursuant hereto in all material respects;

         (iii)   
        At the Closing, Buyer shall have received an
   Officers' Certificate from Seller confirming the satisfaction of the
   conditions set forth in clauses (i) and (ii) of this Section 6.02(c);

         (iv)    
       Any and all consents, authorizations, approvals,
   waivers, estoppel certificates and releases from third parties that may, in
   the reasonable opinion of Buyer hereto or its legal counsel, be necessary to
   carry out and complete all of the transactions contemplated to occur
   pursuant to this Agreement shall have been obtained and be in full force and
   effect as of the Closing;

         (v)    
       RESERVED;

         (vi)    
       Seller shall have delivered to Buyer (A) a Good
   Standing Certificate from Ohio, Delaware and Pennsylvania, dated as of a
   recent date, (B) copies of all documents evidencing Seller's authority to
   enter into this Agreement adopted in connection with this Agreement and the
   transactions contemplated to occur pursuant hereto, each of which shall be
   certified by a duly authorized officer or agent of Seller to be true,
   correct and complete copies of such resolutions, and (C) an incumbency
   certificate of Seller;

 
          (vii)  
        Seller shall have executed and delivered the
   Seller Transfer Documents and the Employment Practices and Shared Services
   Agreement;

         (viii)   
       Buyer shall have entered into the Employment
   Agreements with those individuals whose names are listed on Schedule 11
   hereto;

         (ix)    
       The Buyer and the Committee shall have received the
   Fairness Opinion, and any other written opinions requested by Buyer or the
   Committee, in form and content acceptable to Buyer and the Committee in
   their respective sole discretion, regarding the valuation of the Purchased
   Assets and the Business and the entering into and consummation of the
   transactions set forth in this Agreement;

         (x)    
       The Board of Directors (including a majority of the
   Committee) shall have approved the transactions contemplated to occur
   pursuant hereto; 

         (xi)    
       The obtaining by the Buyer of all third party
   consents and governmental approvals, licenses and permits necessary for the
   Buyer to consummate the transaction set forth in this Agreement and to
   operate the Business as it was operated by Seller prior to the Closing; and
   

         (xii)   
       There shall have occurred no material adverse change
   in or to the financial condition, results of operations, assets or employees
   of the Division, or to Seller, or any of their affiliates to the extent that
   such material adverse change would have a Material Adverse Effect, since
   July 31, 1999 including, without limitation, any bankruptcy, liquidation,
   dissolution, creditor standstill agreement, material Default, or other
   similar event. No suit, action or other proceeding shall be threatened or
   pending before any court or governmental agency which seeks to restrain,
   enjoin or otherwise prohibit this transaction, or seeks the payment of
   significant damages from the AEO Companies in the event that the
   transactions contemplated by this Agreement are consummated. 

 
         The failure of any
   condition set forth in this Article VI, unless waived by Seller with respect
   to any condition set forth in Section 6.02(b) above, or waived by Buyer with
   respect to any condition set forth in Section 6.02(c) above, or waived by
   both Seller and Buyer with respect to any condition set forth in Section
   6.02(a) above, shall cause this Agreement to terminate, in which event
   Seller and Buyer shall have no liability or obligation to each other.

 ARTICLE VII
 

 POST CLOSING COVENANTS

          Section 7.01.
   Transition Period. If so requested by Buyer, Seller will, to the
   extent permitted by applicable law, perform services and process matters
   that constitute
 all or part of the conduct of the Business for and on behalf of Buyer for a
   transition period of one year after the Closing. To the extent that Buyer
   requests any such services be provided by Seller after the Closing, Buyer
   will reimburse Seller for its actual, reasonable cost (as mutually agreed to
   by Seller and Buyer in the Employment Practices and Shared Services
   Agreement) to provide such requested services, and all profits earned with
   respect to the operation of the Business and/or use of the Purchased Assets
   following the Closing shall belong to Buyer. 

         Section 7.02.
   Protection of Business and Purchased Assets. Without in any way
   limiting the rights and remedies available to Buyer for any actual or
   threatened violation of any covenant or agreement of Seller contained in
   Sections 5.01 and 5.02 above, Seller acknowledges and agrees that such other
   rights and remedies cannot fully compensate Buyer, and Buyer shall be
   entitled to injunctive relief to prevent or remedy any actual or threatened
   violation of any covenant or agreement of Seller contained in Sections 5.01
   and 5.02 above.

         Section 7.03.
   Books and Records. Following the Closing, Seller shall make available
   to Buyer, upon reasonable notice during normal business hours, for review
   and copying for the purpose of preparing tax returns and related reports and
   any other proper purpose, any and all of the books and records relating to
   the Business, the Division or the Purchased Assets that may then be in the
   possession or control of Seller, and to provide to Buyer-original copies
   thereof where such originals are necessary. Seller shall not willfully and
   knowingly destroy any of such books and records for a period of five (5)
   years after the Closing without first offering to deliver such books and
   records to be destroyed to Buyer.

         Section 7.04.
   Workmen's Compensation Claims. In the event that any workers
   compensation claim is asserted after the Closing Date for a claim occurring
   prior the Closing Date by any person who was employed with the Division at a
   time prior to the Closing Date, Seller agrees to accept all liability for
   those workers compensation claims under the workers compensation laws of the
   State of Ohio. In the event that any workers compensation claim is asserted
   after the Closing Date for a claim occurring after the Closing Date by any
   person who was employed with the Division at a time prior to the Closing
   Date and who is hired by the Buyer, Buyer agrees to accept all liability for
   those workers compensation claims under the workers compensation laws of the
   State in which the claimant is employed for those claims occurring after the
   Closing Date. In the event that any workers compensation claim is asserted
   after the Closing Date by any person who was employed with the Division at a
   time prior to the Closing Date and who is hired by the Buyer, and the date
   of the occurrence giving rise to the claim cannot readily be determined as
   being either before or after the Closing Date, all liabilities and
   obligations in respect of such claim shall be handled; in compliance with
   the Worker's Compensation laws of the state governing the employer (either
   Buyer or Seller) who ultimately is determined, either through discovery or
   otherwise, to have employed the person at the time of the occurrence giving
   rise to the claim. 

         Section 7.05.
   Reserved.

         Section 7.06.
   Further Assurances. If at any time after the Closing, either party
   hereto should determine that any further instruments of sale, assignment,
   conveyance, transfer or delivery, instruments of assumption, security
   documents, releases of security interests, consents to assignment, or other
   documents and instruments are necessary or desirable to carry out more
   effectively and complete the transactions contemplated to occur pursuant to
   this Agreement, each party hereto shall (i) execute and deliver any and all
   such further documents and instruments as the other party hereto may
   reasonably request, and (ii) use its best efforts to obtain the execution
   and delivery of any such further documents and instruments from any third
   party as either party hereto may reasonably request. 

 ARTICLE VIII
 

 REMEDIES

         Section 8.01.
   The parties agree that, in the event of a breach by either party of any of
   the terms hereof or of any of the other documents or instruments executed
   and delivered pursuant to this Agreement or in connection with the
   transactions contemplated to occur pursuant hereto, which breach becomes the
   basis for any claim or lawsuit among the parties, then, in such event, the
   prevailing party in any such claim or lawsuit shall be entitled, as part of
   its proper damages, to reimbursement for its reasonable attorneys' fees and
   expenses incurred in connection with such claim or litigation.

 ARTICLE IX
 

 MISCELLANEOUS PROVISIONS

         Section 9.01.
   Survival of Warranties, Representations, Agreements, etc. All of the
   warranties, representations, and agreements of the parties hereto shall
   survive the Closing and the consummation of the transactions contemplated by
   this Agreement for a period of two (2) years, except for the representations
   and warranties contained in Sections 4.01(h) and 4.01(u) which shall survive
   the Closing until the applicable statute of limitations has expired,
   regardless of any investigations made by, any party, either prior to or
   after the Closing; provided, however, that (i) nothing contained in the
   foregoing provision shall limit or modify the obligations of the parties to
   indemnify each other pursuant to Sections 3.04 and 3.05, and (ii) if any
   customs duty is owed for the importation of AEO Merchandise (notwithstanding
   Seller's representation set forth in Section 4.01(h) hereof), the amount of
   the duty itself (as opposed to any penalty or other charges) shall be
   payable by Buyer. The rights and remedies of the parties hereto with respect
   to any inaccuracy in any warranty or representation or with respect to any
   breach or default under any covenant or agreement shall not be limited or
   restricted by the fact that the act, omission, occurrence or other state of
   facts giving rise to such inaccuracy or such breach or default is also the
   subject of another warranty or representation as to which there is no
   inaccuracy or another covenant or agreement as to which there is no breach
   or default.

         Section 9.02.
   Third Party Actions. If any third party should institute or assert
   any
 claim, action or proceeding against any party hereto with respect to which
   such party determines it may seek to be indemnified, held harmless and/or
   defended, pursuant to the assumption or exclusion of liabilities set forth
   in Sections 3.03 and 3.04 hereof, the party hereto against whom such claim,
   action or proceeding has been instituted or asserted (the "indemnified
   party") shall promptly    notify each party hereto by whom it may seek
   to be indemnified, held harmless    and/or defended (an "indemnifying
   party") of the institution or assertion    of such claim, action or
   proceeding, and, if so requested by an indemnifying    party, shall promptly
   furnish such indemnifying party with a copy of any written    claim,
   complaint, notice of violation or other similar document the indemnified
   party may have received from the third party instituting or asserting such
   claim,    action or proceeding. An indemnified party shall have the right
   (but not the    obligation) (i) to direct and control, through legal counsel
   of its own choosing,    the defense of any third party claim, action or
   proceeding and (ii) to compromise    and settle any third party claim,
   action or proceeding on any basis and in any    manner such indemnified
   party deems necessary or appropriate; provided, however, that
   (a) each indemnifying party shall have the right to participate, at its own
   cost and expense, through legal counsel of its own choosing, subject to the
   control of the indemnified party and its legal counsel, in the defense of
   any third-party claim, action or proceeding with respect to which indemnity
   is sought hereunder, (b) prior to compromising or settling any third-party
   claim, action or proceeding with respect to which indemnity is sought
   hereunder, the indemnified party shall notify such indemnifying party of the
   proposed terms and conditions of the compromise or settlement and (c) in the
   case of any third-party claim, action or proceeding with respect to which
   indemnity is sought hereunder that involves only the payment of money
   damages by the indemnified party, such indemnifying party may assume
   (jointly with any and all other indemnifying parties), at its own cost and
   expense, through legal counsel of its own choosing reasonably acceptable to
   the indemnified party, the direction and control of the defense of such
   third-party claim if, but only if (i) such indemnifying party acknowledges
   that it is obligated to indemnify and hold harmless the indemnified party
   with respect to all judgments, settlements, compromises and other losses,
   damages, costs and expenses in connection with such third-party claim,
   action or proceeding and (2) such third-party claim, action or proceeding
   continues to involve only the payment of money damages by the indemnified
   party.

         Section 9.03.
   Miscellaneous Provisions.

         (a)   
        Entire Agreement. This Agreement,
   together with all Exhibits, Transfer Documents and Other Documents,
   constitutes the entire agreement and understanding of the parties hereto
   with respect to the transactions contemplated hereby and supersedes any and
   all prior negotiations, discussions, agreements and understandings, oral or
   written, among the parties hereto, or any of them, with respect to this
   Agreement or the transactions contemplated hereby.

         (b)    
       Amendment. This Agreement may be amended,
   superseded, extended or modified only by an instrument or instruments in
   writing signed by each of the parties hereto (or their respective successors
   in interest or permitted assigns), and no waiver or
 consent with respect to this Agreement or any of the transactions contemplated
   hereby shall be effective against any party hereto unless and until such
   waiver or consent is set forth in any instrument or instruments in writing
   signed by such party (or its successor in interest or permitted assign).

         (c)    
       No Waiver. No delay by any party hereto in
   exercising any right or remedy shall operate as a waiver of such right or
   remedy, and no waiver of any right or remedy by any party shall operate to
   waive future compliance with such right or future exercise of such remedy or
   affect any other right or remedy.

         (d)    
       Remedies Cumulative. The rights and remedies
   of the parties hereto are cumulative, and the rights and remedies granted to
   the parties pursuant to this Agreement are not exclusive of, but are in
   addition to, any and all other rights and remedies that the parties hereto
   may have at law or in equity or under any other contract, agreement or other
   document or instrument.

         (e)    
       Severability. The provisions of this
   Agreement are severable and the invalidity or unenforceability of any
   provision of this Agreement as to one or more parties shall not affect the
   validity or enforceability of such provision as to any other party or the
   validity or enforceability of any other provision of this Agreement.

         (f)    
       Exhibits and Headings. The exhibits and
   schedules hereto and the Other Seller Documents constitute an integral part
   of this Agreement. The captions and headings in the articles, sections and
   subsections of this Agreement and the exhibits and schedules hereto are for
   purposes of convenience only and are not intended to affect the
   interpretation of this Agreement.

         (g)    
       Notices, etc. All notices, demands, requests,
   consents, approvals, and other communications required or permitted
   hereunder shall be in writing and, unless otherwise specified herein, shall
   be (i) personally served, (ii) deposited in the mail, registered or
   certified, return receipt requested, postage prepaid, (iii) delivered by
   reputable air courier service with charges prepaid, or (iv) transmitted by
   hand delivery, telegram, or facsimile, addressed as set forth below or to
   such other address as such party shall have specified most recently by
   written notice. Any notice or other communication required or permitted to
   be given hereunder shall be deemed effective (a) upon hand delivery or
   delivery by facsimile, with accurate confirmation generated by the
   transmitting facsimile machine, at the address or number designated below
   (if delivered on a business day during normal business hours where such
   notice is to be received), or the first business day following such delivery
   (if delivered other than on a business day during normal business hours
   where such notice is to be received) or (b) on the second business day
   following the date of mailing by reputable courier service, fully prepaid,
   addressed to such address, or upon actual receipt of such mailing, whichever
   shall first occur. The addresses for such communications shall be:

        

 	  	If to Seller:	Schottenstein Stores Corporation
   

   1800 Moler Road
   

   Columbus, OH 43207
   

   Attention: Jeffrey Swanson

             
               
           

         

 	 	with a copy to:	 Irwin Bain, Esquire
   

   1800 Moler Road
   

   Columbus, OH 43207        

  

 	 	If to Buyer: 	 Blue Star Imports, L.P
   

   150 Thorn Hill Drive
   

   Warrendale, PA 15095
   

   Attention: George Kolber

   

  

 	 	with a copy to: 	Sable, Pusateri, Rosen, Gordon & Adams, LLC
   

   437 Grant Street
   

   7th
   Floor, Frick Building
   

   Pittsburgh, PA 15219
   

   Attn.: Alan B. Gordon, Esquire

         (h)    
       Counterparts. This Agreement may be executed
   in two or more counterparts and shall become effective as of the date first
   above written when each party hereto has signed at least one counterpart
   hereof.

         (i)    
       Governing Law. This Agreement shall be
   governed by and construed in accordance with the laws of the Commonwealth of
   Pennsylvania, without regard to conflicts of law principles.

         (j)    
       Parties Bound and Benefited. This Agreement
   shall be binding upon and enforceable against, and shall inure to the
   benefit of, the parties hereto and their respective successors in interest
   and permitted assigns; provided, however, that neither this Agreement, nor
   any of the rights, privileges or obligations hereunder shall be assignable
   by any of the parties without the other parties' prior written consent;
   provided, however, that Seller may not withhold its consent to any
   assignment of this Agreement or Buyer's rights and obligations hereunder by
   Buyer to any entity controlled by or under common control with the Buyer.
   Nothing contained in this Agreement, express or implied, shall or is
   intended to confer on any person or entity other than the parties hereto and
   their successors in interest, any rights or remedies under or by reason of
   this Agreement unless so stated expressly to the contrary.

  

         IN WITNESS WHEREOF, each of
   the parties hereto has executed and delivered this Agreement as of the day
   and year first above written.

             
               
               
              

 

 	 	SELLER:
	 	SCHOTTENSTEIN STORES CORPORATION
	 	 
	 	  By: /s/ Jeffrey Swanson

   
	 	 

   
 
	 	  BUYER;
	 	 
	 	BLUE STAR IMPORTS, L.P.
	 	 By: BSI IMPORTS CO., LLC, general partner
	 	 
	 	 By: /s/ Dale E. Clifton
	 	 
 

  

 LIST OF EXHIBITS

   

 	 Description  
              

   	 	 Designation	 
	Assignment and Assumption Agreement   
      	 	 A

   	 
	Bill of Sale and Assignment 	 	 B

   	 
	Employment Practices and Shared Services Agreement 	 	 C

   	 

 LIST OF SCHEDULES

   

 	Description 	 Designation	 
	List of Assumed Contracts	 1

   	 
	List of Permits and Licenses	 2

   	 
	List of Personal Property   	 3

   	 
	List of Software	 4

   	 
	Purchase Price Allocation   	 5

   	 
	List of Jurisdictions	 6

   	 
	Material Adverse Changes	 7

   	 
	Intellectual Property	 8

   	 
	Taxes, Duties and Tariffs  	 9

   	 
	Schedule of Litigation    	 10

   	 
	Key Employees 	 11

   	 
	List of Inventory  	 12

   	 
	Insurance Policies  	 13

   	 
	List of Books and Records being delivered to Buyer 	 14

   	 

  

  

 ASSIGNMENT AND ASSUMPTION AGREEMENT

         This Assignment and
   Assumption Agreement (this "Agreement") is made as of this
   10th day of March, 2000, effective as of the 31st day of January, 2000, by
   and between SCHOTTENSTEIN STORES CORPORATION, a Delaware corporation
   ("Assignor"), and BLUE STAR IMPORTS, L.P., a Pennsylvania limited
   partnership    ("Assignee"), pursuant to that certain Purchase and
   Sale Agreement (the    "Purchase Agreement") of even date
   herewith made by and between Assignor and Assignee. Capitalized terms used
   but not defined herein are used as defined in the Purchase Agreement.

 

 ASSIGNMENT AND ASSUMPTION AGREEMENT

         This Assignment and
   Assumption Agreement (this "Agreement") is made as of this
   10th day of March, 2000, effective as of the 31st day of January, 2000, by
   and between SCHOTTENSTEIN STORES CORPORATION, a Delaware corporation
   ("Assignor"), and BLUE STAR IMPORTS, L.P., a Pennsylvania limited
   partnership ("Assignee"), pursuant to that certain  Purchase and Sale
   Agreement (the "Purchase Agreement") of even date herewith
   made by and between Assignor and Assignee. Capitalized terms used but not
   defined herein are used as defined in the Purchase Agreement.

         For and in consideration of
   the sum of Ten and No/100 Dollars ($10.00) and other good and valuable
   consideration, the receipt and sufficiency of which are hereby acknowledged,
   and intending to be legally bound hereby, as of the date hereof, (i)
   Assignor does hereby transfer and assign to Assignee all of Assignor's
   right, title and interest in and to the Assumed Contracts (provided that
   where Assignor is required to continue to be a party to such contracts or
   where Assignor will continue to require or perform services under such
   contracts, Assignor shall use its best efforts to add Assignee as an
   additional party, rather than the sole transferee, of such contracts), the
   Permits and Licenses, and the Prepaid Expenses, (ii) Assignee does hereby
   accept such transfer and assignment, and (iii) Assignee does hereby (a)
   undertake and assume all of the Assumed Liabilities and (b) disclaims any
   liability or obligation under the Excluded Liabilities. 

         Without in any way
   affecting any of Assignee's or Assignor's respective obligations under the
   Purchase Agreement, Assignee and Assignor each hereby specifically confirm
   to the other their indemnification obligations under and pursuant to the
   Purchase Agreement.

         Each party hereto agrees,
   at any time and from time to time, upon the request of the other party, to
   forthwith execute and deliver such instruments of assignment, release,
   endorsement, direction and authorization as will be sufficient, requisite or
   advisable, in the reasonable opinion of Assignor, Assignee or their
   respective counsel, to effect the assignment hereunder, but the parties
   specifically agree that this instrument and these presents are intended to
   and shall be, and the same hereby are, declared to be sufficient in all
   respects to, and the same do hereby, effect the assignment hereunder.

         Assignor acknowledges and
   agrees that, with respect to any Assumed Contracts, which are, in their
   nature, by law, by their terms or otherwise, nonassignable, or which contain
   a covenant against assignment, this instrument shall, notwithstanding
   anything elsewhere herein contained, be construed as an assignment to
   Assignee of the equitable interest in the same insofar as is legally
   permissible without violation of law or breach of the terms or condition
   thereof, with the right in Assignee or its successors and assigns (i) to
   have said claims, contracts, commitments or other agreement, if any, held
 in trust by Assignor so as to enable Assignee or its successors and assigns to
   use and enjoy the full benefit thereof, (ii) to have transferred to Assignee
   or its successors or assigns any and all such property or rights which shall
   become assignable as soon as the same shall become assignable, and (iii) to
   take and have taken any action which may be taken without violation of law
   and without any breach as aforesaid which is necessary or appropriate to
   make such contract, property or rights assignable. Assignor agrees that in
   any instance in which nonassignability of any such contract, property or
   rights may be removed by the consent of any party or parties, Assignor will
   use its best efforts to obtain the consent of all such parties to the
   assignment of the property or rights in question to Assignee. If such a
   consent is not obtained, or if an attempted assignment would be ineffective
   or would affect Assignor's rights so that Assignee or its successors and
   assigns in fact would not receive such contract, property or rights,
   Assignor will cooperate with Assignee or its successors and assigns on any
   reasonable arrangement, not contrary to law, designed to provide for
   Assignee or its successors and assigns the benefit under any such Assumed
   Contracts and enforcement thereof, and for the benefit of Assignee or its
   successors and assigns, of any and all rights of Assignor against any party
   thereto arising out of breach or cancellation by such party or otherwise.
   

         Nothing in this Agreement
   shall preclude or prohibit Assignee from contesting in good faith the
   legality, validity or enforceability of any debt, liability, obligation
   under any Assumed Contract, provided that the foregoing shall not affect the
   legality, validity or enforceability of the terms and provisions of this
   Agreement.

        This Agreement shall be binding
   upon and inure to the benefit of Assignor and Assignee and their respective
   heirs, successors and assigns. 

         IN WITNESS WHEREOF,
   Assignor and Assignee have executed this Assignment and Assumption of
   Agreements effective as of January 31, 2000.

 	ATTEST: 	ASSIGNOR:
   

   Schottenstein Stores Corporation, a Delaware
   

   corporation 	 
	 	 	 
	By: /s/ Tod Friedman 
   

   ATTEST:  	By: /s/ Jeffrey Swanson
   

   ASSIGNEE:
   

   Blue Star Imports, L.P., a Pennsylvania limited
   

   partnership
   

   By:  BSI Imports Company, LLC, a
   

          Delaware limited liability
   

   company and its sole General Partner    	 
	 	 	 
	By: /s/ William P. Tait  	 By: /s/ Dale E. Clifton	 

  

 BILL OF SALE AND ASSIGNMENT

 

         This Bill of Sale and
   Assignment (this "Instrument") is made this 10th day of
   March, 2000, effective as of the 31st day of January, 2000, by SCHOTTENSTEIN
   STORES CORPORATION, a Delaware corporation ("Assignor"), in favor of
   BLUE STAR IMPORTS, L.P., a Pennsylvania limited partnership
   ("Assignee"), pursuant to that certain Purchase  and Sale Agreement
   (the "Purchase Agreement") of even date herewith made by
   and between Assignor and Assignee. Capitalized terms used but not defined
   herein are used as defined in the Purchase Agreement.

         For and in consideration of
   the sum of Ten and No/100 ($10.00) Dollars cash in hand paid and other good
   and valuable consideration, the receipt and sufficiency of which are hereby
   acknowledged, and intending to be legally bound hereby, Assignor does hereby
   transfer and assign the Personal Property to Assignee and Assignee does
   hereby accept such assignment and transfer.

         Assignor warrants that it
   is the owner of the Personal Property and that its right, title and interest
   in and to the Personal Property is hereby transferred and assigned to
   Assignee free and clear of all liens, security interests and
   encumbrances.

 

         Assignee hereby agrees to
   perform, execute and/or deliver, or cause to be performed, executed and/or
   delivered, any and all such further acts and assurances as Assignee may
   reasonably require to perfect Assignee's interest in the Personal Property
   hereby transferred, but Assignee and Assignor agree that this Instrument and
   these presents shall be, and the same hereby are, declared to be sufficient
   in all respects to, and the same do hereby, effect the transfer and
   assignment made hereunder. 

         This Bill of Sale and
   Assignment shall be binding upon and inure to the benefit of Assignor and
   Assignee, and their respective successors and assigns. 

         IN WITNESS WHEREOF,
   Assignor has duly executed and delivered this Bill of Sale and Assignment,
   and Assignee has accepted this Bill of Sale and Assignment, effective as of
   the 31st
 day of January, 2000.

 	 	          
      ASSIGNOR:
   

   SCHOTTENSTEIN STORES CORPORATION, a Delaware
   

             corporation
	 	 
	 	By: /s/ Jeffrey Swanson
   

   Name:
   

   Title:  President

  

 [signatures continued on following page]

 	 	ASSIGNEE
   

   BLUE STAR IMPORTS, L.P., a
   

   Pennsylvania limited partnership      
      
	 	 
	 	 By:   BSI Imports Company, LLC, a
   

           Delaware limited liability
   

   company and its sole General Partner     

   
	 	 
	 	By: /s/ Dale E. Clifton
   

         Name: Dale E. Clifton
   

         Title: VP, Controller, and Chief
     Accounting
   

         Office

 EMPLOYMENT PRACTICES AND SHARED SERVICES AGREEMENT

 

  

         THIS AGREEMENT is dated as
   of the 10th day of March, 2000, effective as of January 31, 2000, between
   SCHOTTENSTEIN STORES CORPORATION, a Delaware corporation, (
   "Schottenstein") and BLUE STAR IMPORTS, L.P., a Pennsylvania
   Limited Partnership ("Blue Star").

 R E C I T A L

         A.    
       Blue Star and Schottenstein have entered into a
   Purchase and Sale Agreement effective as of January 31, 2000 ("Purchase
   Agreement") whereby Blue Star is purchasing the Purchased Assets and
   the Business of Value City Imports, a division of Schottenstein, relating to
   the importation of the AEO Merchandise (as such capitalized terms are
   defined in the Purchase Agreement). All capitalized terms not otherwise
   defined herein shall have the meaning given to such terms in the Purchase
   Agreement.

         B.    
       Blue Star desires to receive, on a transitional
   basis, certain services currently provided by Schottenstein for the
   Purchased Assets and the Business on the terms and conditions contained
   herein.

         C.    
       Schottenstein is willing to provide, on a
   transitional basis, at reasonable times and upon reasonable prior notice,
   certain services currently provided by Schottenstein for the Purchased
   Assets and the Business on the terms and conditions contained herein.

         D.    
       In connection with its acquisition of the Purchased
   Assets and the Business from Schottenstein, Blue Star has hired certain
   employees, Guy Bradford and Hank Shechtman (the "Blue Star Employees
   "), who formerly were employed by Schottenstein.

         E.    
       Schottenstein desires to receive, on a transitional
   basis, certain services to be provided by the Blue Star Employees in
   connection with the importation of merchandise for Value City Department
   Stores and Value City Furniture stores, on the terms and conditions
   contained herein. 

         F.    
       Blue Star is willing to provide, on a transitional
   basis, at reasonable times and upon reasonable prior notice, the services of
   the Blue Star Employees to assist Schottenstein in connection with its
   importation of merchandise, on the terms and conditions contained herein.

  

         NOW THEREFORE, for good and
   valuable consideration, the sufficiency of which is hereby acknowledged, and
   intending to be legally bound, the parties agree that the transitional
   services shall be provided in accordance with the following:

         1.    
       Supply of Services.

             
       a.       
    Schottenstein shall, upon the request of Blue Star, supply to Blue
   Star the services (at the cost) as described in Attachment A hereto (the
   "Defined Services) according to the terms of this Agreement. In
   addition, to the extent Blue Star needs services historically provided by
   Schottenstein in addition to the Defined Services, the parties agree to
   amend Attachment A to add such services (the "New Services"). The
   New Services and the Defined Services are collectively referred to as the
   "Services". Schottenstein shall furnish Blue Star with such
   current merchandise in transit, orders and other reports and documents that
   it has normally produced with respect to its provision of the Services. All
   Services provided hereunder shall be performed in compliance with all
   applicable laws and regulations and in substantially the same manner as
   historically performed by Schottenstein and as revised from time to time by
   Schottenstein consistent with the methods used for the importation of
   Schottenstein's own merchandise. Blue Star may, at its discretion, decrease
   or discontinue any of the Services to be provided hereunder. The parties
   hereto also agree that Blue Star shall have no obligation to order any
   Services whatsoever. Schottenstein shall provide Blue Star with reasonable
   access to its facility and the Purchased Assets. During the Transition
   Period and the Extended Term, Blue Star may elect to remove the Purchased
   Assets from the Facility for the purpose of relocating such assets to
   facilities owned or operated by Blue Star or its affiliates.

             
       b.       
    Blue Star shall, upon the request of Schottenstein, supply to
   Schottenstein, at reasonable times, the services of the Blue Star Employees
   (and any other current employee of Blue Star who had previously worked for
   Schottenstein in connection with the importation of its merchandise and its
   customs compliance program) in order to assist Schottenstein in connection
   with the importation of merchandise and customs compliance program for
   Schottenstein and its affiliated entities (the "Blue Star Employees'
   Services"). The Blue Star Employees' Services shall be performed in
   compliance with all applicable laws and regulations, and in substantially
   the same manner as historically performed by the Blue Star Employees, and as
   revised from time to time by Blue Star consistent with past practice. The
   Blue Star Employees' Services shall be the same services as have
   historically been provided to Schottenstein by such employees prior to the
   Closing, and shall also include reasonable training of any of
   Schottenstein's remaining or newly hired employee(s). Schottenstein shall
   use its best efforts to hire, as soon as is reasonably practical, its own
   employee(s) to perform the services that are now being provided to it by the
   Blue Star Employees hereunder. The Blue Star Employees' Services shall be
   provided to Schottenstein in accordance with the terms of this Agreement and
   at the costs as set forth on Attachment B hereto.

             
       c.       
    Schottenstein hereby perpetually and irrevocably licenses or
   sublicenses, as the case may be, to Blue Star and its affiliates (on a
   non-exclusive basis) the Software and Intellectual Property used or useful
   in connection with the ownership and/or operation of the Business. The
   license and/or sublicense granted by Schottenstein to Blue Star and its
   affiliates herein shall be considered a fully paid
 license and/or sublicense, and no license fee, royalty or other fee shall be
   due for the privilege of exercising the rights licensed or sublicensed
   herein. Schottenstein shall maintain the Software in an operating condition
   and will timely and fully pay all charged license or sublicense fees and
   maintenance fees necessary to enable Blue Star and its affiliates to fully
   access, use, and enter and retrieve data in connection with the Software.
   Schottenstein shall make available to Blue Star and its affiliates all
   Software and all currently existing and future associated technical
   information regarding the Software which might be reasonably necessary,
   useful or helpful to Blue Star and its affiliates in the exercise of the
   rights licensed, sublicensed or otherwise granted. There shall be no fees or
   other charges associated with providing the documents and materials
   contemplated by this Subparagraph c.      
     

         

         2.     
       Term.

         This Agreement shall
   commence upon the date hereof and continue in effect for a term of one year
   (the "Transition Period") ending on (the "Original  Termination
   Date") January 31, 2001, subject to extension in accordance with this
   Section 2. Either party may, at its option and by notice given to the other
   party at least 30 days prior to the Original Termination Date (and 30 days
   prior to the expiration of the initial 3 month extension period, if
   applicable), extend such term of this Agreement, for a total of up to two
   additional periods of three months each (the "Extended Term"). 

         

         3.    
       Termination.

             
       a.       
    Blue Star may terminate this Agreement as to any one or more Services
   at any time upon 10 days' prior written notice. Blue Star shall not
   terminate this Agreement during the Transition Period and the Extended Term
   with respect to its obligation to make available the Blue Star Employees and
   provide the Blue Star Employees' Services to Schottenstein except in the
   event that Schottenstein fails to make any payment due hereunder within five
   (5) days after delivery of written notice by Blue Star, or if Schottenstein
   breaches any nonmonetary obligation hereunder and such breach is not cured
   within thirty (30) days after delivery of written notice by Blue Star unless
   Schottenstein has undertaken a course of action reasonably calculated to
   cure such nonmonetary breach and continuously pursues the same until
   cured.

             
       b.       
    Schottenstein may terminate this Agreement as to its use of the Blue
   Star Employees or the providing of any of the Blue Star Employees' Services
   at any time upon 10 days' prior written notice. Schottenstein shall not
   terminate this Agreement during the Transition Period and the Extended Term
   for any Service except in the event that Blue Star fails to make any payment
   due hereunder within five (5) days after delivery of written notice by
   Schottenstein, or if Blue Star breaches any nonmonetary obligation hereunder
   and such breach is not cured within thirty (30) days after delivery of
   written notice by Schottenstein unless Blue Star has undertaken a course of
   action reasonably calculated to cure such nonmonetary breach and
   continuously pursues the same until cured.

         4.     
       Price.

             
       a.       
    The price for each Defined Service shall be its cost as described on
   Attachment A hereto. The price for each New Service shall be set forth on
   Attachment A and shall be calculated by Schottenstein and agreed to by Blue
   Star in the same manner as the cost (with no corporate overhead charges) for
   each Defined Service was calculated for this Agreement.

             
       b.       
    The price for each Blue Star Employee and the Blue Star Employees'
   Services shall be as described on Attachment B hereto. If Schottenstein
   desires to utilize any additional employees of Blue Star, the price for each
   additional employee shall be calculated by Blue Star and agreed to by
   Schottenstein in the same manner as the cost for the Blue Star Employees was
   calculated for this Agreement. To the extent that a cost for a particular
   service included in the Blue Star Employees' Services is not specifically
   listed on Attachment B, the cost to be charged by Blue Star shall be its
   actual cost (with no corporate overhead charges) for such service. 

         

         5.    
       Past Practice.

         Schottenstein has been
   supplying importation services to the American Eagle Outfitters, parent of
   Blue Star, for several years. To the extent that questions arise as to the
   nature of a particular Service or a Blue Star Employees' Service, the manner
   in which Services or Blue Star Employees' Service are to be provided, or any
   responsibilities of Schottenstein or Blue Star hereunder, the parties shall
   be guided by past reasonable practices of Schottenstein or American Eagle
   Outfitters.

         6.    
       Invoicing and Payment.

             
       a.       
    Schottenstein shall invoice Blue Star monthly for the Services
   supplied hereunder. Schottenstein may use one or more invoices. Payment
   shall be due 30 days after the invoice(s) are sent. The provisions of this
   Section 6 shall survive the termination of this Agreement.

             
       b.       
    Blue Star shall invoice Schottenstein monthly for the Blue Star
   Employees and Blue Star Employees' Services supplied hereunder. Blue Star
   may use one or more invoices. Payment shall be due 30 days after the
   invoice(s) are sent. The provisions of this Section 6 shall survive the
   termination of this Agreement.

         7.    
       Right to Audit.

         For purposes of verifying
   the accuracy of charges for the Services supplied hereunder and to verify
   the proper performance of the Services by Schottenstein and its affiliates
   and assignees hereunder, Blue Star shall be entitled, prior or subsequent to
   any payment of charges hereunder, to have access at all reasonable times
   during normal business hours at the Facility, to the Books and Records of
   Schottenstein (and its affiliates providing the Services) relating to the
   Division hereunder as may be
 reasonably related to such inquiry, all at Blue Star's sole expense. Blue Star
   shall maintain the confidentiality of information supplied to it in the
   course of performing such audit and shall not disclose such information to
   persons who do not have a need to know. Schottenstein shall have the right
   to audit the charges for the Blue Star Employees and Blue Star Employees'
   Services in accordance with the same terms and conditions which govern Blue
   Star's right to audit as set forth hereinabove.

         8.    
       Independent Contractor Status.

         a.    
       Schottenstein shall be an independent contract with
   respect to the Services. Blue Star shall be an independent contractor with
   respect to the Blue Star Employees' Services. Each party shall be
   responsible for its own employees, and employees of each party shall not be
   deemed to have an employment relationship with the other party. Upon Buyer's
   request, Schottenstein shall use its best efforts to make available to Blue
   Star the Schottenstein employees engaged in the Business (regardless of
   whether or not Blue Star shall have extended offers of employment to such
   persons) to provide reasonable assistance in the training of Blue Star's
   employees to enable such employees to operate and utilize the Purchased
   Assets and to deliver Services of a quality at least similar to the quality
   of such Services as were provided by Schottenstein with such Purchased
   Assets and the Business. Blue Star shall have, for a period of ninety (90)
   days following the Closing, the right to extend offers of employment to, and
   hire, those of Schottenstein's employees as listed on Attachment C attached
   hereto who are presently engaged in providing the Services with respect to
   the Business, and Schottenstein will not engage in conduct or actions
   (including, but not limited to, the offering of additional incentives or
   compensation to such employees) with the intention or for the purpose of
   deterring such employees from accepting offers from Blue Star. Schottenstein
   further agrees that it will not, for a period of two years following the
   date of the Closing, solicit, offer to hire, or rehire any employees whom
   Blue Star hires to assist Blue Star in the operation of the Business. Blue
   Star further agrees that it will not, for a period of two years following
   the date of the Closing, solicit, or offer to hire any employees of
   Schottenstein who are not listed on Attachment C to assist Blue Star in the
   operation of the Business. This Paragraph 8 shall survive the expiration or
   earlier termination of this Agreement.

         b.    
       Blue Star shall be solely responsible for all
   liabilities, demands, damages, costs and expenses (including reasonable
   attorney's fees), and shall indemnify, defend and hold harmless the
   Schottenstein and its affiliates and their respective officers and
   directors, shareholders and representatives, from and against all
   liabilities, claims, demands, damages, costs and expenses (including
   reasonable attorney fees) arising from the conduct, actions, inactions or
   omissions of the Blue Star Employees (and not caused by Schottenstein, its
   employees or contractors) in connection with the Blue Star Employees'
   Services hereunder.

         c.    
       Schottenstein shall be solely responsible for all
   liabilities, demands, damages, costs and expenses (including reasonable
   attorney's fees), and shall indemnify, defend and hold harmless Blue Star
   and its affiliates and their respective
 officers and directors, shareholders and representatives, from and against all
   liabilities, claims, demands, damages, costs and expenses (including
   reasonable attorney fees) arising from the conduct, actions, inactions or
   omissions of Schottenstein (and not caused by Blue Star, its employees or
   contractors) in connection with the Services hereunder.

         9.    
       Negotiation of Contracts. 

             
       a.       
    For a period of five (5) years following the Closing Date,
   Schottenstein agrees, upon request of the Blue Star, to use its best efforts
   to negotiate any number or all freight, shipping and transportation rates in
   combination with Blue Star for the importation of similar merchandise by
   Schottenstein and its affiliates, including but not limited to Value City
   Department Stores (so as to take full advantage of all volume and other
   discounts available by combining Schottenstein's importation volume with
   Blue Star's importation volume). Schottenstein will advise Blue Star of all
   scheduled negotiation sessions. Blue Star may or may not choose to have a
   representative present at the negotiations. . Schottenstein will make
   available the use of the negotiated contracted rates to Blue Star. Blue Star
   shall have the right to accept or decline those contracted rates. If Blue
   Star accepts those contracted rates, Schottenstein may charge a mutually
   agreed upon fee. Schottenstein and Blue Star shall split equally the
   reasonable out-of-pocket costs incurred by Mort Love (as shown on Attachment
   A) in the negotiation of such freight, transportation and shipping
   contracts. The provisions of this Section 9 shall survive the expiration or
   termination of this Agreement.

         10.    
       Assignment and Delegation.

             
       a.       
    This Agreement and any rights pursuant hereto to utilize the Blue Star
   Employees shall be assignable by Schottenstein to (i) any of its business
   units, subsidiaries or affiliates without the consent of Blue Star, or (ii)
   any third party entity which acquires, is acquired by, merges or otherwise
   consolidates with, purchases or otherwise acquires a majority of shares or
   other interests, or acquires a portion of the assets or business of,
   Schottenstein, or any of their subsidiaries or affiliates, without the
   consent of Blue Star. Any other assignment or transfer of this Agreement
   shall require the prior written consent of Blue Star, which consent shall
   not be unreasonably withheld. Schottenstein shall have the right to delegate
   its duties to perform Services hereunder to any of its business units,
   subsidiaries or affiliates without the prior consent of Blue Star. In no
   event shall any such delegation of duties hereunder release Schottenstein
   from liability to Blue Star for the performance of the Services provided
   hereunder.

             
       b.       
    Blue Star may assign or delegate all or a portion of this Agreement to
   (i) any parent, subsidiaries or affiliated entities of Blue Star or American
   Eagle Outfitters, Inc., or (ii) any third party entity which acquires, is
   acquired by, merges or otherwise consolidates with, purchases or otherwise
   acquires a majority of shares or other interests, or acquires a portion of
   the assets or business of, Blue Star or American
 Eagle Outfitters, Inc. or any of their subsidiaries or affiliates, without the
   consent of Schottenstein.

         11.    
       Force Majeure.

         Neither Schottenstein nor
   Blue Star shall be liable for any failure to perform hereunder arising from
   causes or events beyond the reasonable control and without the fault or
   negligence of the party failing to perform including, without limitation,
   labor disputes of any kind. If it appears to either party that an event is
   likely to occur which would interfere with such party's performance
   hereunder, such party shall notify the other party immediately of the event
   and of its likely duration. In the event of such failure, the obligation of
   the party shall be suspended until the cause of such suspension shall have
   been removed. 

         12.    
       Governing Law.

         This Agreement shall be
   governed by and construed in accordance with the laws of the Commonwealth of
   Pennsylvania, without regard to conflicts of law principles.

         13.    
       Notices.

         Any notice, request,
   consent, approval, waiver and other communication to a party hereunder shall
   be in writing and shall be deemed duly given when sent by first class mail,
   postage prepaid, or delivered by hand, or by telex or facsimile transmission
   to such party. Unless changed by written notice to the other hereunder, all
   notices shall be addressed sent to the address shown below:

 As to Blue Star Imports, L.P.:

          Blue Star Imports,
   L.P.
 

         150 Thorn Hill Drive
 

         Warrendale, PA 15086
 

         Attention of George Kolber

 As to Schottenstein Stores Corporation:

         Schottenstein Stores
   Corporation
 

         1800 Moler Road
 

         Columbus, OH 43207
 

         Attention of Jeffrey
   Swanson

         14.    
       Dispute Resolution.

             
       a.        In
   the event of any dispute arising in connection with this Agreement, the
   parties shall endeavor to resolve such dispute amicable by discussion and
   mutual accord. Such discussions shall include face-to-face meetings at
   senior managerial levels of Blue Star and Schottenstein. In the event that
   the parties are unable to mutually resolve such dispute within thirty (30)
   days after the initial face to face meeting referred to above, then either
   party may submit any unresolved controversy or claim arising out of or
   relating to this contract, or the breach thereof, to be settled by
   arbitration in accordance with the Commercial Arbitration Rules of the
   American Arbitration Association, in Pittsburgh, Pennsylvania, and judgment
   upon the award rendered by the arbitrator(s) may be entered in any court
   having jurisdiction thereof. The parties shall split equally the cost of the
   arbitrators. Any award rendered by the Arbitrator(s) may include
   compensatory damages and costs but under no circumstances shall either party
   be liable for nor shall the arbitrator(s) award any incidental,
   consequential or special (including punitive or multiple) damages.

             
       b.       
    Notwithstanding anything herein to the contrary, the existence of a
   dispute (other than payment of the price) shall not reduce the obligation of
   Schottenstein to continue to provide Services (or the obligation of Blue
   Star to make available the Blue Star Employees or to provide the Blue Star
   Employees' Services) hereunder during the pendency of the dispute resolution
   procedure, or following the resolution of such dispute, unless the
   resolution of the dispute contains a finding of a material default by Blue
   Star or Schottenstein as the case may be; provided, however, the foregoing
   shall in no way limit the amount of damages or type of relief (whether
   monetary or injunctive) to which Blue Star or Schottenstein is entitled
   under law or the provisions of this Agreement.

         

         15.    
       Integration.

         This Agreement supersedes
   all prior negotiations, commitments and writings pertaining to the subject
   matter hereof. Except as otherwise provided in this Agreement, this
   Agreement may be amended only by a written instrument duly executed by both
   Schottenstein and Blue Star.

         16.    
       Waiver.

         Any waiver at any time, by
   either Schottenstein or Blue Star, of its rights with respect to the other
   party to this Agreement, or with respect to any other matter arising in
   connection with this Agreement, shall not be considered waived with respect
   to any subsequent default or matter.

         17.    
       No Third Party Beneficiaries. 

         Nothing in this Agreement,
   whether express or implied, is intended to confer any rights or remedies
   under or by reason of this Agreement on any person other than the parties
   and their respective successors and assigns, nor is anything in this
   Agreement intended to relieve or discharge the obligation or liability of
   any third persons to a party to this Agreement, nor shall any provision
   hereof give any third persons any right or subrogation or action against any
   party to this Agreement.

         IN WITNESS WHEREOF, the
   parties hereto have caused this Agreement to be executed as of the date
   first above written.

 	BLUE STAR IMPORTS, L.P.
   

   By: BSI Imports Co., LLC
   

         General Partner	SCHOTTENSTEIN STORES
   

   CORPORATION	 
	 	 	 
	By /s/ Dale E. Clifton 	By /s/ Jeffrey Swanson	 

  

 Attachment A 

 The Price of each Defined Service will be equal to the
   total expense recorded on Division's books in each month during the term of
   the Agreement for the Defined Services listed below multiplied by a Percent
   Allocation determined according to the methods described below.

 For purposes of this Schedule, the following terms have the
   meanings assigned to them below:

 	Headcount Allocation Percentage shall be the percentage of time
   worked that each employee devotes to Blue Star Imports Matters;

 	Payroll Allocation Expense shall be an employee's Headcount Allocation
   Percentage times his annualized earnings.

Blue Star may audit the calculations used to determine the
   Percent Allocations at any time upon reasonable notice to Schottenstein. The
   parties agree to use the Percent Allocations listed below; however, either
   party may request a change to a Percent Allocation for any Defined Service
   at any time, and the parties agree to negotiate in good faith to determine
   whether a change in any of the percentages is required. In the event that
   the parties cannot agree on whether a change to a Percent Allocation is
   required, or as to the amount of any such change, then the disagreement will
   be resolved in accordance with the provisions for Dispute Resolution as set
   forth in Paragraph 14 of the Agreement.

 

 	 Defined Service 
	 Percent Allocation 
	 	
     Method 

	 Payroll and
     Related Expenses 
	 35.86% 
	 	 Equal to the
     total of all Payroll Allocation Expenses divided by Value City Imports
     total annualized earnings. 

	 Classification
     Fees 
	 60.90% 
	 	 Equal to the
     number of entries processed for BSI as a % of total entries processed by
     VCI 

	 Data Processing
     
	 60.90% 
	 	 Equal to the
     number of entries processed for BSI as a % of total entries processed by
     VCI 

	 Delivery 
	 60.90% 
	 	 Equal to the
     number of entries processed for BSI as a % of total entries processed by
     VCI 

	 Depreciation
     (See Note 1 Below) 
	 

   	 	 See Note 1
     Below 

	 Dues &
     Subscriptions, Fees & Licenses 
	 37.84% 
	 	 Equal to the
     total of all Headcount Allocation Percentages divided by Value City
     Imports total headcount. 

	 Equipment
     Rental 
	 37.84% 
	 	 Equal to the
     total of all Headcount Allocation Percentages divided by Value City
     Imports total headcount. 

   

  Office Supplies 
  	 37.84% 
	 	 Equal to the
    total of all Headcount Allocation Percentages divided by Value City Imports
    total headcount. 

 

	 Defined Service 
	 Percent Allocation 
	 	 Method
    

	 Outside Services
    (brokers) 
	 

  	 	 Based on actual
    direct expenses related to the Business 

	 Professional
    fees 
	 

  	 	 Based on actual
    direct expenses related to the Business 

	 Rent 
	 37.84% 
	 	 Equal to the
    total of all Headcount Allocation Percentages divided by Value City Imports
    total headcount. 

	 Repairs &
    Maint. 
	 37.84% 
	 	 Equal to the
    total of all Headcount Allocation Percentages divided by Value City Imports
    total headcount. 

	 Taxes - Personal
    Property (Exclusive of PPT on Software) 
	 60.90% 
	 	 Equal to the
    number of entries processed for BSI as a % of total entries processed by
    VCI 

	 Telephone 
	 37.84% 
	 	 Equal to the
    total of all Headcount Allocation Percentages divided by Value City Imports
    total headcount. 

	 Travel 
	 

  	 	 Based on actual
    direct expenses related to the Business 

	 Other 
	 

  	 	 Based on actual
    direct expenses related to the Business 

 

	Note 1:
    Calculation of Monthly Depreciation Charge to Blue Star
	

  
	

  	

  
	Total
    Depreciation/Month (Division)
	14,260.00

	CFP Software
    Related
	(10,510.00)

	Automobile
    Depreciation
	(278.00)

	Estimate for
    GB/HS Hdware Depr.
	(63.00)

	

  	
	Net
    Depreciation/Month (Division)
	3,409.00

	

  	

  
	Total of all
    Headcount Allocation Percentages divided by Value City Imports total
    headcount
	37.84%

	

  	

  
	Initial Monthly
    Allocation of Depreciation to Blue Star
	1,289.97

 

Schedule B

Allocation of costs for Shared Services provided by Blue Star Imports as it
  relates to the importation business of Schottenstein Stores Corporation or
  its affiliates:

 

	 Costs
	 Method of Allocations

	 Salaries
	 Salaries will be allocated based upon time
    spent on services provided to Schottenstein Stores Corporation or its
    affiliates, with the exception of Guy Bradford. Initially Guy Bradford
    wages will be allocated based upon the number of custom entries related to
    Schottenstein Stores Corporation or its affiliates. On a monthly or
    quarterly basis Guy Bradford's allocation will be reviewed as his duties
    change. 

	 Other costs
	Based on actual expenses related to services
    provided to Schottenstein Stores Corporation or its affiliates.

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