Document:

EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is made as of August 14, 2000,
between DESIGNS, INC., a Delaware corporation with an office at 66 B Street,
Needham, Massachusetts, 02494 (the "Company"), and Dennis Hernreich (the
"Executive").

                              W I T N E S S E T H:

         WHEREAS, the Company desires that Executive be employed to serve in a
senior executive capacity with the Company, and Executive desires to be so
employed by the Company, upon the terms and conditions herein set forth.

         NOW, THEREFORE, in consideration of the premises and the mutual
promises, representations and covenants herein contained, the parties hereto
agree as follows:

         1.       EMPLOYMENT

                  The Company hereby employs Executive and Executive hereby
accepts such employment, subject to the terms and conditions herein set forth.
Executive shall hold the office of Senior Vice President and Chief Financial
Officer of the Company.

         2.       TERM

                  The term of employment under this Agreement shall begin on
September 4, 2000 (the "Employment Date") and shall continue for a period of one
(1) year from that date, subject to prior termination in accordance with the
terms hereof. Upon the expiration of the Executive's initial one (1) year term
of employment, the Company has the option to extend the term of this Agreement
for an additional one (1) year, under the terms and conditions set forth herein.

         3.       COMPENSATION

                  (a) As compensation for the employment services to be rendered
by Executive hereunder, the Company agrees to pay to Executive, and Executive
agrees to accept, payable in equal installments in accordance with Company
practice, an annual base salary of $225,000.

                  (b) If the Company does not exercise its option to extend the
term of this Agreement for additional one (1) year as provided in Section 2
above, the Company will pay Executive one half of his annual base salary, in
equal biweekly payments over a six month period commencing on the expiration of
the initial term of employment. This Subsection shall not apply if Executive is
terminated pursuant to Section 8 of this Agreement.

                  (c) In addition to the annual base salary, Executive may
receive a discretionary annual bonus of up to forty-five percent (45%) of his
annual base salary (the "Discretionary Bonus"), depending on the performance
of the Company. The Compensation Committee of the Board of Directors shall
determine, in its sole discretion, the amount of any bonus to be paid to
Executive. Executive will receive a prepayment of the Discretionary Bonus in
the amount $1,250 per month. Any Discretionary Bonus that the Compensation
Committee determines shall be paid to Executive shall be reduced by the
amount of any prepayments made to Executive.

                  (d) The Company will pay Executive the total amount of $30,000
for moving costs associated with Executive's relocation to the Boston,
Massachusetts metropolitan area. ("Boston"). However, if the Executive
resigns his position with the Company during the term of this Agreement,
Executive shall reimburse to the Company the $30,000 payment within thirty
(30) days after the effective date of his resignation.

                  (e) The Executive must permanently relocate to Boston on or
before April 4, 2001. The Company will reimburse the Executive's reasonable
air fare related to his travel (round trip coach air fare with fourteen day
advance purchase only) between Boston and Pittsburgh, Pa. (which shall be
limited to two (2) trips per month) and provide Executive with temporary
living quarters in Boston. The Company's obligation to reimburse Executive
for the reasonable air fare and provide temporary living quarters as set
forth in this Subsection shall cease upon the earlier of (a) the date the
Executive permanently relocates to Boston or (b) April 4, 2001. If Executive
resigns his position with the Company during the term of this Agreement,
Executive shall reimburse to the Company the costs of any and all air fare
and expenses for temporary living quarters paid by the Company within thirty
(30) days after the effective date of his resignation.

          4.            OPTIONS

                  The Company shall grant to the Executive 60,000 options under
the Company's 1992 Stock Incentive Plan, which are exercisable at a purchase
price per share equal to the closing price of the Common Stock on September 4,
2000. The options will vest pro rata over a three (3) years period commencing on
the Employment Date, with one third of the total vesting and becoming
exercisable on each of the first, second and third anniversaries of the
Employment Date. In addition, the Executive must execute a standard Stock Option
Agreement, which sets the terms and conditions for the Executive's options. The
stock options must be exercised by September 4, 2010 or they shall become null
and void.

         5.       EXPENSES

                  The Company shall pay or reimburse Executive, in accordance
with the Company's policies and procedures and upon presentment of suitable
vouchers, for all reasonable business and travel expenses, which may be incurred
or paid by Executive in connection with his employment hereunder. Executive
shall comply with such restrictions and shall keep such records as the Company
may deem necessary to meet the requirements of the Internal Revenue Code of
1986, as amended from time to time, and regulations promulgated thereunder.

         6.       OTHER BENEFITS

                  (a) Executive shall be entitled to such vacations and to
participate in and receive any other benefits customarily provided by the
Company to its senior management (including any profit sharing, pension, 401(k),
short and long-term disability insurance, major medical insurance and group life
insurance plans in accordance with the terms of such plans), all as determined
from time to time by the Compensation Committee of the Board of Directors.

                  (b) The Company will, during the term of Executive's
employment hereunder, provide Executive with an automobile for his use in
performing his employment duties and obligations hereunder. If the Company
provides an automobile, the Company shall pay for the costs of insurance,
repairs and maintenance. If the Company does not provide Executive with an
automobile, the Company will pay an automobile allowance to Executive in the
total amount of $600.00 per month. In that event, Executive shall pay and be
responsible for all insurance, repairs and maintenance costs associated with
operating that automobile. In either case, Executive is responsible for his
gasoline, unless the gasoline expense is reimbursable under the Company's
policies and procedures.

         7.       DUTIES

                    (a) Executive shall perform such duties and functions as the
Board of Directors of the Company shall from time to time determine and
Executive shall comply in the performance of his duties with the policies of,
and be subject to the direction of, the Board of Directors. If requested,
Executive shall serve as a corporate officer and or director of the Company
without further compensation.

                   (b) At the request of the Board of Directors, Executive shall
serve, without further compensation, as an executive officer, corporate officer
and/or director of any subsidiary or affiliate of the Company and, in the
performance of such duties, Executive shall comply with the directives and
policies of the Board of Directors of each such subsidiary or affiliate.

               (c) During the term of this Agreement, Executive shall devote
substantially all of his time and attention, vacation time and absences for
sickness excepted, to the business of the Company, as necessary to fulfill his
duties. Executive shall perform the duties assigned to him with fidelity and to
the best of his ability. Notwithstanding anything herein to the contrary, and
subject to the foregoing, Executive may engage in other activities so long as
such activities do not unreasonably interfere with Executive's performance of
his duties hereunder and do not violate Section 10 hereof.

              (d) The principal location at which the Executive shall perform
his duties hereunder shall be at the Company's offices in Needham, Massachusetts
or at such other location as may be designated from time to time by the Board of
Directors of the Company. Notwithstanding the foregoing, Executive shall perform
such services at such other locations as may be required for the proper
performance of his duties hereunder, and Executive recognizes that such duties
may involve travel.

         8.       TERMINATION OF EMPLOYMENT; EFFECT OF TERMINATION

                  (a)    Executive's employment hereunder may be terminated at
any time:

                           (i) upon the  determination  by the Board of
Directors that  Executive's  performance of his duties has not been fully
satisfactory for any reason which would not constitute justifiable cause (as
hereinafter defined) upon thirty (30) days' prior written notice to Executive;or

                           (ii) upon   the   determination   by  the   Board
of   Directors that there is justifiable cause (as hereinafter defined) for such
termination upon ten (10) days' prior written notice to Executive.

                  (b) Executive's employment shall terminate upon:

                           (i)  the death of Executive; or

                           (ii) the "disability" of Executive (as hereinafter
defined in Subsection (c) herein) pursuant to Subsection (g) hereof.

                  (c) For the purposes of this Agreement, the term "disability"
shall mean the inability of Executive, due to illness, accident or any other
physical or mental incapacity, substantially to perform his duties for a period
of two (2) consecutive months or for a total of four (4) months (whether or not
consecutive) in any twelve (12) month period during the term of this Agreement,
as reasonably determined by the Board of Directors of the Company after
examination of Executive by an independent physician reasonably acceptable to
Executive.

                  (d) For the purposes hereof, the term "justifiable cause"
shall mean: any repeated willful failure or refusal to perform any of the duties
pursuant to this Agreement where such conduct shall not have ceased within 5
days following written warning from the Company; Executive's conviction (which,
through lapse of time or otherwise, is not subject to appeal) of any crime or
offense involving money or other property of the Company or its subsidiaries or
affiliates or which constitutes a felony in the jurisdiction involved;
Executive's performance of any act or his failure to act, as to which if
Executive were prosecuted and convicted, a crime or offense involving money or
property of the Company or its subsidiaries or affiliates, or a crime or offense
constituting a felony in the jurisdiction involved, would have occurred; any
unauthorized disclosure by Executive to any person, firm or corporation other
than the Company, its subsidiaries or affiliates and their respective directors,
officers and employees (or other persons fulfilling similar functions), of any
confidential information or trade secret of the Company or any of its
subsidiaries or affiliates; any attempt by Executive to secure any personal
profit in connection with the business of the Company or any of its subsidiaries
and affiliates; or the engaging by Executive in any business other than the
business of the Company and its subsidiaries and affiliates which unreasonably
interferes with the performance of his duties hereunder. Upon termination of
Executive's employment for justifiable cause, this Agreement shall terminate
immediately and Executive shall not be entitled to any amounts or benefits
hereunder other than such portion of Executive's annual salary and reimbursement
of expenses pursuant to Section 5 hereof as have been accrued through the date
of his termination of employment.

                  (b) If the Company terminates this Agreement without
"justifiable cause" as provided in Subsection 8 (a)(i) above, the Company shall
pay Executive the greater of: (i) the base salary for the remaining term of this
Agreement or (ii) an amount equal to one half of Executive's annual base salary.
However, if Executive is employed or retained, as an employee, independent
contractor, consultant or in any other capacity ("New Employment") during the
time he receives payment under this Subsection or Subsection 3 (b), the Company
is entitled to a credit for all sums paid or earned by Executive during this
period of time. The Executive must make a good faith effort to find New
Employment and mitigate the amount of money to be paid by the Company to
Executive under this Subsection or Subsection 3(b). The Company will pay any
amount due and owing under 8 (a)(i) and 8(a)(ii) above in accordance with the
payment schedule in 3(a), until paid in full.

                  (f) If Executive shall die during the term of his employment
hereunder, this Agreement shall terminate immediately. In such event, the estate
of Executive shall thereupon be entitled to receive such portion of Executive's
annual salary and reimbursement of expenses pursuant to Section 5 as have been
accrued through the date of his death.

                  (g) Upon Executive's "disability", the Company shall have the
right to terminate Executive's employment. Notwithstanding any inability to
perform his duties, Executive shall be entitled to receive his base salary and
reimbursement of expenses pursuant to Section 5 as provided herein until he
begins to receive long-term disability insurance benefits under the policy
provided by the Company pursuant to Section 6 hereof. Any termination pursuant
to this Subsection (g) shall be effective on the later of (i) the date 30 days
after which Executive shall have received written notice of the Company's
election to terminate or (ii) the date he begins to receive long-term disability
insurance benefits under the policy provided by the Company pursuant to Section
6 hereof.

                  (h) Upon the resignation of Executive in any capacity, that
resignation will be deemed to be a resignation from all offices and positions
that Executive holds with respect to the Company and any of its subsidiaries and
affiliates.

         9.       REPRESENTATION AND AGREEMENTS OF EXECUTIVE

                  (a) Executive represents and warrants that he is free to enter
into this Agreement and to perform the duties required hereunder, and that there
are no employment contracts or understandings, restrictive covenants or other
restrictions, whether written or oral, preventing the performance of his duties
hereunder.

                  (b) Executive agrees to submit to a medical examination and to
cooperate and supply such other information and documents as may be required by
any insurance company in connection with the Company's obtaining life insurance
on the life of Executive, and any other type of insurance or fringe benefit as
the Company shall determine from time to time to obtain.

                  (c) Executive represents and warrants that he has never been
convicted of a felony and he has not been convicted or incarcerated for a
misdemeanor within the past five years, other than a first conviction for
drunkenness, simple assault, speeding, minor traffic violations, affray, or
disturbance of the peace.

                  (d) Executive represents and warrants that he has never been a
party to any judicial or administrative proceeding that resulted in a judgement,
decree, or final order (i) enjoining him from future violations of, or
prohibiting any violations of any federal or state securities law, or (ii)
finding any violations of any federal or state securities law.

                  (e) Executive represents and warrants that he has never been
accused of any impropriety in connection with any employment;

                  (f)  Executive  represents  and  warrants  that  he is
currently  licensed  as a  Certified Public Accountant and that no state
department of accountancy has every suspended, revoke or terminated his license.

Any breach of any of the above representations and warranties is "justifiable
cause" for termination under Section 8 of this Agreement.

         10.      NON-COMPETITION

                  (a) Executive agrees that during his employment by the Company
and during the one year period following the termination of Executive's
employment hereunder (the "Non-Competitive Period"), Executive shall not,
directly or indirectly, as owner, partner, joint venturer, stockholder,
employee, broker, agent, principal, trustee, corporate officer, director,
licensor, or in any capacity whatsoever, engage in, become financially
interested in, be employed by, render any consultation or business advice with
respect to, or have any connection with, any business which is competitive with
products or services of the Company or any of its subsidiaries and affiliates,
in any geographic area in the United States of America and Puerto Rico where, at
the time of the termination of his employment hereunder, the business of the
Company or any of its subsidiaries and affiliates was being conducted or was
proposed to be conducted in any manner whatsoever; provided, however, that
Executive may own any securities of any corporation which is engaged in such
business and is publicly owned and traded but in an amount not to exceed at any
one time one percent (1%) of any class of stock or securities of such
corporation. In addition, Executive shall not, during the Non-Competitive
Period, directly or indirectly, request or cause any suppliers or customers with
whom the Company or any of its subsidiaries and affiliates has a business
relationship to cancel or terminate any such business relationship with the
Company or any of its subsidiaries and affiliates or solicit, hire, interfere
with or entice from the Company any employee (or former employee) of the
Company.

                  (b) If any portion of the restrictions set forth in this
Section 10 should, for any reason whatsoever, be declared invalid by a court of
competent jurisdiction, the validity or enforceability of the remainder of such
restrictions shall not thereby be adversely affected.

                  (c) Executive acknowledges that the Company conducts business
throughout the Eastern portion of United States (all states east of the
Mississippi River and Missouri) and Puerto Rico, that its sales and marketing
prospects are for continued expansion throughout the United States and
therefore, the territorial and time limitations set forth in this Section 10 are
reasonable and properly required for the adequate protection of the business of
the Company and its subsidiaries and affiliates. In the event any such
territorial or time limitation is deemed to be unreasonable by a court of
competent jurisdiction, Executive agrees to the reduction of the territorial or
time limitation to the area or period which such court shall deem reasonable.

                  (d) The existence of any claim or cause of action by Executive
against the Company or any subsidiary or affiliate shall not constitute a
defense to the enforcement by the Company or any subsidiary or affiliate of the
foregoing restrictive covenants, but such claim or cause of action shall be
litigated separately.

         11.      INVENTIONS AND DISCOVERIES

                  (a) Upon execution of this Agreement and thereafter, Executive
shall promptly and fully disclose to the Company, and with all necessary detail
for a complete understanding of the same, all existing and future developments,
know-how, discoveries, inventions, improvements, concepts, ideas, writings,
formulae, processes and Methods (whether copyrightable, patentable or otherwise)
made, received, conceived, acquired or written during working hours, or
otherwise, by Executive (whether or not at the request or upon the suggestion of
the Company) during the period of his employment with, or rendering of advisory
or consulting services to, the Company or any of its subsidiaries and
affiliates, solely or jointly with others, in or relating to any activities of
the Company or its subsidiaries and affiliates known to him as a consequence of
his employment or the rendering of advisory and consulting services hereunder
(collectively the "Subject Matter").

                  (b) Executive hereby assigns and transfers, and agrees to
assign and transfer, to the Company, all his rights, title and interest in and
to the Subject Matter, and Executive further agrees to deliver to the Company
any and all drawings, notes, specifications and data relating to the Subject
Matter, and to execute, acknowledge and deliver all such further papers,
including applications for copyrights or patents, as may be necessary to obtain
copyrights and patents for any thereof in any and all countries and to vest
title thereto to the Company. Executive shall assist the Company in obtaining
such copyrights or patents during the term of this Agreement, and at any time
thereafter on reasonable notice and at mutually convenient times, and Executive
agrees to testify in any prosecution or litigation involving any of the Subject
Matter; provided, however, that Executive shall be compensated in a timely
manner at the rate of $250 per day (or portion thereof), plus out-of-pocket
expenses incurred in rendering such assistance or giving or preparing to give
such testimony if it is required after the termination of this Agreement.

         12.      NON-DISCLOSURE OF CONFIDENTIAL INFORMATION

                  (a) Executive shall not, during the term of this Agreement or
at any time following termination of this Agreement, directly or indirectly,
disclose or permit to be known (other than as is required in the regular course
of his duties (including without limitation disclosures to the Company's
advisors and consultants), as required by law (in which case Executive shall
give the Company prior written notice of such required disclosure) or with the
prior written consent of the Board of Directors of the Company), to any person,
firm, corporation, or other entity, any confidential information acquired by him
during the course of, or as an incident to, his employment or the rendering of
his advisory or consulting services hereunder, relating to the Company or any of
its subsidiaries and affiliates, the directors of the Company or its
subsidiaries and affiliates, any supplier or customer of the Company or any of
their subsidiaries and affiliates, or any corporation, partnership or other
entity owned or controlled, directly or indirectly, by any of the foregoing, or
in which any of the foregoing has a beneficial interest, including, but not
limited to, the business affairs of each of the foregoing. Such confidential
information shall include, but shall not be limited to, proprietary technology,
trade secrets, patented processes, research and development data, know-how,
market studies and forecasts, financial data, competitive analyses, pricing
policies, employee lists, personnel policies, the substance of agreements with
customers, suppliers and others, marketing or dealership arrangements, servicing
and training programs and arrangements, supplier lists, customer lists and any
other documents embodying such confidential information. This confidentiality
obligation shall not apply to any confidential information which becomes
publicly available other than pursuant to a breach of this Section 12(a) by
Executive.

                  (b) All information and documents relating to the Company and
its affiliates as hereinabove described (or other business affairs) shall be the
exclusive property of the Company, and Executive shall use commercially
reasonable best efforts to prevent any publication or disclosure thereof. Upon
termination of Executive's employment with the Company, all documents, records,
reports, writings and other similar documents containing confidential
information, including copies thereof then in Executive's possession or control
shall be returned and left with the Company.

         13.      SPECIFIC PERFORMANCE

                  Executive agrees that if he breaches, or threatens to commit a
breach of, any of the provisions of Sections 10, 11 or 12 (the "Restrictive
Covenants"), the Company shall have, in addition to, and not in lieu of, any
other rights and remedies available to the Company under law and in equity, the
right to have the Restrictive Covenants specifically enforced by a court of
competent jurisdiction, it being agreed that any breach or threatened breach of
the Restrictive Covenants would cause irreparable injury to the Company and that
money damages would not provide an adequate remedy to the Company.
Notwithstanding the foregoing, nothing herein shall constitute a waiver by
Executive of his right to contest whether a breach or threatened breach of any
Restrictive Covenant has occurred.

         14.      AMENDMENT OR ALTERATION

                  No amendment or alteration of the terms of this Agreement
shall be valid unless made in writing and signed by both of the parties hereto.

         15.      GOVERNING LAW

                  This Agreement shall be governed by, and construed and
enforced in accordance with the substantive laws of The Commonwealth of
Massachusetts, without regard to its principles of conflicts of laws.

         16.      SEVERABILITY

                  The holding of any provision of this Agreement to be invalid
or unenforceable by a court of competent jurisdiction shall not affect any other
provision of this Agreement, which shall remain in full force and effect.

         17.      NOTICES

                  Any notices required or permitted to be given hereunder shall
be sufficient if in writing, and if delivered by hand or courier, or sent by
certified mail, return receipt requested, to the addresses set forth above or
such other address as either party may from time to time designate in writing to
the other, and shall be deemed given as of the date of the delivery or at the
expiration of three days in the event of a mailing.

         18.      WAIVER OR BREACH

                  It is agreed that a waiver by either party of a breach of any
provision of this Agreement shall not operate, or be construed as a waiver of
any subsequent breach by that same party.

         19.      ENTIRE AGREEMENT AND BINDING EFFECT

                  This Agreement contains the entire agreement of the parties
with respect to the subject matter hereof, supersedes all prior agreements, both
written and oral, between the parties with respect to the subject matter hereof,
and shall be binding upon and inure to the benefit of the parties hereto and
their respective legal representatives, heirs, distributors, successors and
assigns.

         20.      SURVIVAL.

                  Except as otherwise expressly provided herein, the termination
of Executive's employment hereunder or the expiration of this Agreement shall
not affect the enforceability of Sections 5, 8, 10, 11, 12 and 13 hereof.

         21.      ARBITRATION

                       If any dispute  arises  between the parties that they
cannot settle,  the parties  agree to submit the dispute to arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association, and both parties agree to be bound by the arbitration award.

         22.      FURTHER ASSURANCES

                The parties agree to execute and deliver all such further
documents, agreements and instruments and take such other and further action as
may be necessary or appropriate to carry out the purposes and intent of this
Agreement.

         23.      HEADINGS

                  The Section headings appearing in this Agreement are for the
purposes of easy reference and shall not be considered a part of this Agreement
or in any way modify, amend or affect its provisions.

         24.      COUNTERPARTS

                  This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original and all of which together shall
constitute one and the same agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement,
under seal, as of the date and year first above written.

                                         DESIGNS, INC.

                                         By: /s/ DAVID A. LEVIN
                                             ------------------
                                         Its:     CEO/PRESIDENT

                                            /s/ DENNIS R. HERNREICH
                                            -----------------------
                                            Dennis HernreichTENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

                  This TENTH  AMENDMENT  TO LOAN AND  SECURITY  AGREEMENT  (this
"Amendment")  is dated as of July 30, 2000,  and entered into by and between THE
RIGHT START, INC., a California corporation ("Borrower"),  and HELLER FINANCIAL,
INC. ("Lender").

                                    RECITALS

                  WHEREAS,  Borrower  and Lender have  entered into that certain
Loan and Security  Agreement  dated as of November 14, 1996,  as amended by that
certain First  Amendment to Loan and Security  Agreement and Limited  Waiver and
Consent  dated as of April 30, 1997, as further  amended by that certain  Second
Amendment to Loan and Security Agreement and Limited Waiver dated July 10, 1997,
as  further  amended  by that  certain  Third  Amendment  to Loan  and  Security
Agreement,  Limited  Waiver and  Consent  dated  September  3, 1997,  as further
amended by that certain  Fourth  Amendment to Loan and  Security  Agreement  and
Limited  Consent  effective as of January 30, 1998,  as further  amended by that
certain Waiver and Fifth  Amendment to Loan and Security  Agreement  dated as of
December 9, 1998, as further amended by that certain Sixth Amendment to the Loan
and Security  Agreement  and First  Amendment to Secured  CAPEX Note dated as of
November 8, 1999, as further amended by that certain  Seventh  Amendment to Loan
and Security  Agreement  and Second  Amendment to Secured CAPEX Note dated as of
January 18, 2000, as further  amended by that certain  Eighth  Amendment to Loan
and  Security  Agreement  and  Waiver  dated as of April 28,  2000 (the  "Eighth
Amendment),  as further  amended by that  certain  Ninth  Amendment  to Loan and
Security  Agreement dated as of June 9, 2000 (the "Ninth Amendment" and the Loan
Agreement, as so amended by all the foregoing, the "Loan Agreement");

                  WHEREAS, Borrower has requested certain amendments to the Loan
Documents (as defined in the Loan Agreement), as set forth herein;

                  WHEREAS, Lender is willing to grant  such  amendments,  all on
the terms and conditions set forth herein;

                  NOW,  THEREFORE,  in  consideration  of  these  premises,  the
agreements,  provisions and covenants  contained herein,  and for other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto hereby agree as follows:

                                    AGREEMENT

1.       Defined Terms.  Capitalized terms used but not otherwise defined herein
shall have the meanings given in the Loan Agreement.

<PAGE>

2.      Amendment to Subsection  1.1 of the Loan Agreement.  The  defined  terms
"Subscription  Agreement"  and "Warrant" set forth in subsection 1.1 of the Loan
Agreement are hereby  deleted in their  entirety and the following  substituted,
respectively, therefor:

                           ""Subscription  Agreement" means,  collectively,  (i)
                  that certain  Subscription  Agreement  dated as of January 18,
                  2000,  regarding the issuance to Lender of 5,130 shares of the
                  common stock of Borrower and a warrant to acquire 5,000 shares
                  of the  common  stock  of  Borrower,  and  (ii)  that  certain
                  Subscription Agreement dated as of August 8, 2000, regarding
                  the  issuance to Lender of warrants to acquire  20,000  shares
                  and 5,000 shares of the common stock of Borrower,  as each may
                  be amended from time to time."

                  ""Warrant" means, collectively,  (i) the warrant dated January
                  18,  2000,  to purchase  5,000  shares of the common  stock of
                  Borrower  issued  to  Heller  Financial,  Inc.,  and  (ii) the
                  warrants  to purchase  20,000  shares and 5, 000 shares of the
                  common  stock of  Borrower  issued  or to be  issued to Heller
                  Financial, Inc., as each may be amended from time to time."

3.       Amendment to Subsection 5.17 of the Loan Agreement.  Subsection 5.17 of
the  Loan  Agreement  is  hereby deleted in  its  entirety  and  the   following
substituted therefor:

                           "5.17  Minimum Availability.  Borrower shall maintain
Minimum Availability of at least $200,000 at all times."

4.       Amendment to Subsection 6.1 of the Loan Agreement.  Subsection  6.1  of
the  Loan   Agreement  is  hereby  deleted  in   its  entirety and the following
substituted therefor:

                           "6.1 Net Worth.  Borrower shall maintain Net Worth of
                  at least (a) $5,900,000 as of July 31, 2000, (b) $5,700,000 as
                  of August 31, 2000,  and (c)  $10,800,000  as of September 30,
                  2000, and as of the end of each month thereafter."

5.       Amendment to Subsection 6.3 of the Loan Agreement.  Subsection  6.3  of
the   Loan  Agreement  is  hereby  deleted in its  entirety  and  the  following
substituted therefor:

                           "6.3   Minimum EBITDA.  Borrower shall have a minimum
EBITDA for the periods set forth below in the amounts set forth below:

                                       2
<PAGE>

                          Period                               Amount

                  Three months ended April 30, 1998            ($1,200,000)
                  Six months ended July 31, 1998               ($1,200,000)
                  Nine months ended October 31, 1998           ($  900,000)
                  Twelve months ended January 31, 1999         ($  900,000)
                  Twelve months ended April 30, 1999           ($  500,000)
                  Twelve months ended July 31, 1999              $      0
                  Twelve months ended October 31, 1999           $  400,000
                  Twelve months ended January 31, 2000           $  500,000
                  Twelve months ended April 30, 2000             $  250,000
                  Twelve months ended July 31, 2000              $      0
                  Twelve months ended October 31, 2000           $  500,000
                  Twelve months ended February 3, 2001           $  500,000"

6.       Representations and Warranties.   Borrower  represents  and warrants to
Lender as follows:

a.       Borrower has been duly  organized  and is validly  existing and in good
         standing under the laws of the  jurisdiction of its  incorporation,  as
         well as in each  jurisdiction  in  which  Borrower  is  required  to be
         qualified to transact business.

b.       Borrower  has full power and  authority  and legal right to execute and
         deliver this  Amendment and to perform its  obligations  under the Loan
         Agreement and the other Loan Documents, each as amended hereby, and has
         taken all necessary  action to authorize such  execution,  delivery and
         performance.

c.       This  Amendment  has been duly  executed and  delivered by Borrower and
         such  Amendment,  and each of the Loan  Agreement  and the  other  Loan
         Documents as amended  hereby,  each  constitutes  the legally valid and
         binding  obligations  of  Borrower,  enforceable  against  Borrower  in
         accordance with its terms,  except as enforceability  may be limited by
         bankruptcy,  insolvency,  reorganization,  moratorium  or other similar
         laws relating to or affecting  creditors'  rights generally and subject
         to the availability of equitable remedies.

7.      Conditions to the Effectiveness of this Amendment. Each of the following
shall be conditions  precedent to the  effectiveness of this Amendment (the date
on which such  conditions  are met being the  "Effective  Date" and on such date
this Amendment shall be effective as of July 30, 2000):

a.       Borrower shall have duly executed and delivered  a  counterpart of this
         Amendment to Lender or its counsel.

b.       After  giving  effect to this  Amendment,  (a) no  Default  or Event of
         Default has occurred and is continuing,  (b) all of the representations
         and  warranties  contained  in the  Loan  Documents  shall  be true and
         correct in all  material  respects  (except for any  representation  or
         warranty  limited by its terms to a specific date),  (c) Borrower shall
         have  performed in all material  respects all  agreements and satisfied
         all conditions  which any Loan Document  (including as amended  hereby)
         provides  shall be  performed  by it on or prior to such date,  and (d)
         Borrower shall have delivered to Lender a certificate to such effect in
         the form attached hereto as Exhibit A.

                                       3
<PAGE>

c.       Lender or its  counsel  shall have  received  (i) a duly  executed  and
         delivered Subscription Agreement (the "New Subscription Agreement"), in
         form and  substance  satisfactory  to  Lender,  and  (ii)  the  related
         warrants issued to "Heller Financial, Inc." for 20,000 shares and 5,000
         shares, respectively, of common stock of Borrower (the "New Warrants"),
         in form and substance satisfactory to Lender.

d.       Borrower shall have delivered to Lender or its counsel a certificate of
         its  Secretary  or an  Assistant  Secretary,  certifying  as to (i) the
         resolutions  of its Board of Directors  authorizing  (A) this Amendment
         and (B) the  New  Subscription  Agreement,  the  New  Warrants  and the
         issuance of stock under each of the New Subscription  Agreement and the
         New  Warrants,  (ii) the  incumbency  of the  officers  executing  this
         Amendment  and any other  documents in connection  herewith,  (iii) the
         articles of  incorporation of Borrower and (iv) the bylaws of Borrower,
         each as in effect on the Effective Date,  together with a good standing
         certificate from the Secretary of State of the State of California with
         respect to the Borrower.

e.       Lender or its counsel shall have received an opinion of Milbank, Tweed,
         Hadley & McCloy LLP, special counsel to Borrower, in form and substance
         satisfactory to Lender.

f.       Lender or its counsel shall have received two (2) original counterparts
         each,  executed on behalf of Borrower by an authorized officer thereof,
         to the Eighth Amendment and the Ninth Amendment,  together with two (2)
         original counterparts each to the certificates set forth, respectively,
         at Exhibit A to each.

8.      Effect of Amendment;  Ratification.  From and after the Effective  Date,
all references  in the Loan  Documents  to the Loan  Agreement  shall  mean  the
Loan Agreement  as  amended  hereby.  The  terms  and  provisions  set  forth in
this Amendment shall amend and supersede all  inconsistent  terms and provisions
set forth in the Agreement and,  except as expressly  modified and superseded by
this  Amendment,  the terms and provisions of the Agreement are hereby  ratified
and confirmed and are and shall continue in full force and effect.

9.      No  Waiver.  Nothing  contained  herein  or in any other  instrument  or
document  executed in  connection  herewith,  nor any action  taken by Lender in
connection with this Amendment or any other action  contemplated hereby shall in
any event be construed or deemed to constitute a waiver of any past,  present or
future  Default or Event of Default or a waiver or an  estoppel  of any cause of
action Lender may have against  Borrower for any reason  whatsoever,  and Lender
hereby  reserves all rights and remedies  under the  Agreement or the other Loan
Documents.

10.     Fees and  Expenses.  Borrower  acknowledges  that  all fees and expenses
(including  reasonable  attorneys'  fees) incurred by Lender in connection  with
this Amendment are for the account of Borrower pursuant to the Loan Agreement.

                                       4
<PAGE>

11.     Counterparts.  This  Amendment  may  be  executed  in   any   number  of
counterparts,  each of which when so executed and  delivered  shall be deemed an
original,  but all such  counterparts  together shall constitute but one and the
same  instrument.  Delivery  via  facsimile  of  an  executed  counterpart  of a
signature  page  of  this  Amendment   shall  be  effective  as  delivery  of  a
manually-executed counterpart of this Amendment.

12.     Severability.  The  illegality or unenforceability  of  any provision of
this  Amendment,  the Loan Agreement  (including as amended hereby) or any other
document or any other instrument or agreement  required  hereunder or thereunder
shall not in any way  affect or impair the  legality  or  enforceability  of the
remaining provisions of this Amendment, the Loan Agreement (including as amended
hereby) or such other  document or any other  instrument  or agreement  required
hereunder or thereunder.

13.     Successors and Assigns.   This Amendment shall be binding upon and shall
inure to the benefit of Lender and Borrower and their respective  successors and
assigns.

14.     Governing  Law.   This  Amendment  shall be  governed  by, and shall  be
construed  and enforced in  accordance  with,  the internal laws of the State of
Illinois, without regard to conflicts of laws principles.

                            [SIGNATURE PAGE FOLLOWS]

                                       5
<PAGE>

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Amendment to be duly executed by a duly authorized  officer as of the date first
above written.

                                      THE RIGHT START, INC.

                                      By:  /s/ Jerry R. Welch

                                      Name: Jerry R. Welch

                                      Its: President and Chief Executive Officer

                                      HELLER FINANCIAL, INC.

                                      By: /s/ Barry S. O'Neall

                                      Name:  Barry S. O'Neall

                                      Its:   Senior Vice President

                                       6
<PAGE>

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