Document:

<PAGE>
                                                                   Exhibit 10(a)

                 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

         This First Amendment to Loan and Security Agreement (the "FIRST
AMENDMENT") is made as of this 7th day of October, 2003 by and among

                  National City Commercial Finance, Inc., an Ohio corporation
         with offices at 1965 E. Sixth Street, Cleveland, Ohio 44114, as
         administrative agent (in such capacity, herein the "ADMINISTRATIVE
         AGENT"), for the ratable benefit of the "REVOLVING CREDIT LENDERS", who
         are, at present, those financial institutions identified on the
         signature pages of this First Amendment and who in the future are those
         Persons (if any) who become "Revolving Credit Lenders" in accordance
         with the provisions of the Loan Agreement (as defined below);

                  National City Commercial Finance, Inc., and Fleet Retail
         Finance Inc., a Delaware corporation with offices at 40 Broad Street,
         Boston, Massachusetts 02109, as collateral agents (collectively, in
         such capacity, herein the "COLLATERAL AGENTS"), for the ratable benefit
         of the Revolving Credit Lenders,

                  and

                  National City Bank, as L/C Issuer (the "ISSUER");

                  and

                  The Revolving Credit Lenders;

                  and

                  Value City Department Stores, Inc. (in such capacity, the
         "LEAD BORROWER"), an Ohio corporation with its principal executive
         offices at 3241 Westerville Road, Columbus, Ohio 43224-3751, as agent
         for the following (individually, a "BORROWER" and collectively, the
         "BORROWERS"):

                  Said Value City Department Stores, Inc. ("Value City"); and

                  Shonac Corporation ("SHONAC"), an Ohio corporation with its
                  principal executive offices at 4150 East Fifth Avenue,
                  Columbus, Ohio 43219;

                  DSW Shoe Warehouse, Inc. ("DSW"), a Missouri corporation with
                  its principal executive offices at 4150 East Fifth Avenue,
                  Columbus, Ohio 43219; and

                  Gramex Retail Stores, Inc. ("GRAMEX"), a Delaware corporation
                  with its principal executive offices at 3241 Westerville Road,
                  Columbus, Ohio 43224; and

                                       1
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                  Filene's Basement, Inc. ("FILENE'S"), a Delaware corporation
                  with its principal executive offices at 3241 Westerville Road,
                  Columbus, Ohio 43224-3751; and

                  Value City Limited Partnership ("VCLP"), an Ohio limited
                  partnership with its principal executive offices at 3241
                  Westerville Road, Columbus, Ohio 43224-3751; and

                  Value City of Michigan, Inc. ("VC MICHIGAN"), a Michigan
                  corporation with its principal executive offices at 36901
                  Warren Road, Westland, Michigan 48185;

                  GB Retailers, Inc. ("GBR"), a Delaware corporation with its
                  principal executive offices at 3241 Westerville Road,
                  Columbus, Ohio 43224; and

                  Retail Ventures Jewelry, Inc. ("JEWELRY"), an Ohio corporation
                  with its principal executive offices at 3241 Westerville Road,
                  Columbus, Ohio 43224;

in consideration of the mutual covenants contained herein and benefits to be
derived herefrom,

                              W I T N E S S E T H:

         A.       Reference is hereby made to that certain Loan and Security
                  Agreement dated as of June 11, 2002 (as such may be amended,
                  modified, supplemented or restated hereafter, the "LOAN
                  AGREEMENT") among (i) the Lead Borrower, (ii) the Borrowers
                  (other than Jewelry), (iii) the Revolving Credit Lenders, (iv)
                  National City Commercial Finance, Inc., as Administrative
                  Agent for the Revolving Credit Lenders and as SwingLine
                  Lender, (v) National City Commercial Finance, Inc. and Fleet
                  Retail Finance Inc., as Collateral Agents for the Revolving
                  Credit Lenders, and (vi) National City Bank, as Issuer;

         B.       The Borrowers have advised the Administrative Agent that a
                  corporate reorganization (the "REORGANIZATION"), as more
                  particularly described on EXHIBIT 4.20 hereto, has been
                  approved by the shareholders and directors of the Lead
                  Borrower and has been implemented subject to the consent of
                  the Revolving Credit Lenders.

         C.       The Borrowers have requested that the Revolving Credit Lenders
                  consent to the Reorganization and modify and amend certain
                  provisions of the Loan Agreement, as provided herein.

         Accordingly, the parties hereto agree as follows:

         1.       Definitions. Capitalized terms used herein and not otherwise
                  defined herein shall have the meanings assigned to such terms
                  in the Loan Agreement.

                                       2
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         2.       Amendments to Article 1 of Loan Agreement. The provisions of
                  Article 1 of the Loan Agreement are hereby revised as follows:

                  a.       The definition of "CCM Term Loan Facilities" is
                           hereby deleted in its entirety and the following
                           substituted in its stead:

                           "CCM Term Loan Facilities": The term loan facilities
                           entered into amongst the Borrowers and CCM, as agent,
                           pursuant to a Financing Agreement dated June 11,
                           2002, in the aggregate principal amount of
                           $100,000,000.00, as amended on October 7, 2003.

                  b.       The definition of "Change in Control" is hereby
                           revised:

                           i.       by the deletion of the words "Lead Borrower"
                                    in clauses (a) and (c) and its replacement
                                    with the word "Parent."

                           ii.      By the addition of the words "(other than by
                                    (x) a Person Controlled by Schottenstein
                                    Stores Corporation, or (y) one or more
                                    Family Trusts)" after the word "Person" in
                                    the second line of clause (a).

                           iii.     by the deletion of clause (b) in its
                                    entirety and the substitution of the
                                    following in its stead:

                                    (b) Other than as a result of the exercise
                                    by CCM of board representation rights under
                                    the Senior Convertible Facility, more than
                                    thirty percent (30%) of the Persons who were
                                    directors of the Parent on the first day of
                                    any period consisting of twelve (12)
                                    consecutive calendar months (the first of
                                    which twelve (12) month periods commencing
                                    with the first day of August, 2003), cease
                                    to be directors of the Parent for any
                                    reason, other than death, disability, or
                                    replacement (in the ordinary course of
                                    business and not as a result of any change
                                    in the equity ownership of the Parent) by
                                    other Persons nominated by the nominating
                                    committee of the board of directors of the
                                    Parent.

                           iv.      by the deletion of clause (d) in its
                                    entirety and the substitution of the
                                    following in its stead:

                                    (d) The failure of Schottenstein Stores
                                    Corporation or one or more Family Trusts to
                                    possess, directly or indirectly, the power
                                    to cause the direction of the management and
                                    policies of the Parent and the Borrowers.

                                       3
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                  c.       The definition of "Consolidated" is hereby amended by
                           deleting the words "the Borrowers and any
                           Subsidiaries" at the end thereof and substituting the
                           words "the Parent and its Subsidiaries" in their
                           stead.

                  d.       The definition of "Facility Guarantors" is hereby
                           deleted in its entirety and the following substituted
                           in its stead:

                           "Facility Guarantors": The Parent, each Borrower, and
                           all other Subsidiaries of the Parent now existing or
                           hereafter created, other than Unrestricted
                           Subsidiaries.

                  e.       The definition of "Indebtedness" is hereby revised by
                           the deletion of "Borrowers" in the third line before
                           the words "as liabilities" and its replacement with
                           "Parent."

                  f.       The definition of "Material Accounting Change" is
                           hereby revised by the deletion of the reference (i)
                           to "Borrowers'" in the second and fourth lines
                           thereof and its replacement with "Parent's", and (ii)
                           to "Borrowers" in the sixth line thereof and its
                           replacement with "Parent and its Subsidiaries."

                  g.       The definition of "Permitted Acquisition" is hereby
                           amended as follows:

                           i.       by deleting the words "the Borrowers" in
                                    clause (i) of the definition and
                                    substituting the words "the Parent and its
                                    Subsidiaries" in its stead.

                           ii.      by adding the words "the Parent and/or"
                                    immediately before the words "the Borrowers"
                                    in the fourth line of clause (ii)(c) of such
                                    definition.

                           iii.     by adding the words "the Parent or"
                                    immediately before the words "a Borrower" in
                                    the third line of clause (ii)(d) of such
                                    definition.

                           iv.      by deleting the words "the Borrower" and
                                    adding the words "the Parent or a Borrower"
                                    in the second line of clause (ii)(g) of such
                                    definition.

                           v.       by deleting "$15,000,000" and substituting
                                    "$20,000,000" at the end of clause (ii)(h)
                                    of such definition.

                  h.       The definition of "Permitted Disposition" is hereby
                           amended by deleting the words "a Borrower" in clause
                           (e) thereof and substituting the words "the Parent"
                           in their stead.

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                  i.       The definition of "Permitted Indebtedness" is hereby
                           amended as follows:

                           i.       by adding the following at the end of the
                                    proviso to clause (c) of such definition
                                    (immediately before the semicolon):

                                    for all Loan Parties and, with respect to
                                    the Parent only, shall not exceed $5,000,000
                                    in the aggregate outstanding at any time.

                           ii.      by adding the following at the end of the
                                    proviso to clause (d) of such definition
                                    (immediately before the period):

                                    for all Loan Parties and, with respect to
                                    the Parent only, shall not exceed $5,000,000
                                    in the aggregate principal amount
                                    outstanding at any time.

                           iii.     by the deletion of clause (i) and its
                                    replacement with the following:

                                    "(i) Intercompany indebtedness between and
                                    among the Loan Parties (other than the
                                    Parent) pursuant to loans and advances
                                    permitted in accordance with Subsection
                                    4.21(f), below, and intercompany
                                    Indebtedness due to the Parent by any other
                                    Loan Party to the extent permitted
                                    hereunder."

                           iv.      by the addition of the following clause (n):

                                    "(n) Indebtedness owed by the Parent to any
                                    of the other Loan Parties in an amount not
                                    to exceed $5,000,000 (less amounts paid
                                    under Section 4.20(a) hereof) in the
                                    aggregate at any time outstanding"

                  j.       The definition of "Permitted Investments" is hereby
                           amended

                           i.       by adding the words "the Parent or" before
                                    the words "a Borrower" in the fifth and
                                    sixth lines of clause (m) of such
                                    definition, and

                           ii.      By adding the following at the end of such
                                    definition:

                                    provided that, except for Excluded Property
                                    and loans to officers and directors, all
                                    such Permitted Investments are subject to a
                                    perfected Encumbrance in favor of the
                                    Collateral Agents.

                  k.       The definition of "Senior Convertible Facility" is
                           hereby deleted in its entirety and the following
                           substituted in its stead:

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                           "Senior Convertible Facility": The credit facility
                           set forth in the Senior Subordinated Convertible Loan
                           Agreement dated as of March 15, 2000, amended from
                           time to time prior to the Closing Date and as amended
                           and restated June 11, 2002, in the present principal
                           amount of $75,000,000.00, and as further amended on
                           October 7, 2003.

                  l.       The definition of "Specified Event of Default" is
                           hereby amended by the deletion of Subsection (d) and
                           its replacement with the following:

                           "(d)     Section 10.5 (with respect to a breach of
                                    Sections 4.6, 4.29, and 4.32 only)."

                  m.       The definition of "Term Loan Senior Collateral" is
                           hereby amended by replacing the word "Borrowers" with
                           "Loan Parties".

                  n.       The definition of "VCM" is hereby deleted in its
                           entirety.

                  o.       The definition of Value City Entities is hereby
                           amended by deleting the word "VCM" and substituting
                           the word "Jewelry" in its stead.

                  p.       The following definitions are hereby added to Article
                           1 in appropriate alphabetical order:

                           "FAMILY TRUST": One or more trusts established for
                           the benefit of any of Jay L. Schottenstein, Susan S.
                           Diamond, Ann S. Deshe, Lori Schottenstein, Geraldine
                           Schottenstein, any of their respective spouses,
                           children or lineal descendants, or any Person
                           Controlled by any such trust or trusts.

                           "JEWELRY": Retail Ventures Jewelry, Inc., an Ohio
                           corporation.

                           "PARENT": Retail Ventures, Inc., an Ohio corporation.

                           "REORGANIZATION": The corporate reorganization of the
                           Borrowers and their Affiliates, as more particularly
                           described on EXHIBIT 4.20 hereto,

         3.       Amendment to Article 2 of Loan Agreement. The provisions of
                  Article 2 of the Loan Agreement are hereby amended by adding
                  the following new sentence at the end of Sections 2.4, 2.5(d),
                  and 2.18(a):

                           Notwithstanding anything to the contrary contained in
                           this Agreement, L/C's and Bankers Acceptances issued
                           for the account of the Parent shall be limited to
                           those L/Cs required to support the workman's
                           compensation obligations of the Parent and its
                           Subsidiaries and for no other purpose.

                                       6
<PAGE>

         4.       Amendments to Article 4 of Loan Agreement. The provisions of
                  Article 4 of the Loan Agreement are hereby amended as follows:

                  a.       Section 4.9 of the Loan Agreement is hereby amended
                           by adding the following after the third sentence
                           thereof:

                           Without limiting the foregoing, no default or
                           violation shall arise under any such license or
                           agreement solely as a result of the assignment and
                           transfer of such license or agreement in connection
                           with the Reorganization.

                  b.       Section 4.10 of the Loan Agreement is hereby amended
                           by adding the following after the fourth sentence
                           thereof:

                           Without limiting the foregoing, no default or
                           violation shall arise under any Lease solely as a
                           result of the assignment and transfer of such Lease
                           in connection with the Reorganization.

                  c.       Section 4.13(d) of the Loan Agreement is hereby
                           amended by adding a new clause (vi) as follows:

                           (vi) Transfers of assets and subleases of real estate
                           among the Loan Parties reasonably necessary to
                           consummate the Reorganization.

                  d.       Section 4.20(a) of the Loan Agreement is hereby
                           amended by adding the following at the end thereof:

                           Notwithstanding anything to the contrary contained
                           herein, dividends (other than dividends payable
                           solely in the capital stock of another Loan Party and
                           dividends contemplated by the Reorganization) shall
                           only be payable to the Parent by any other Loan Party
                           to the extent not otherwise in violation of the Loan
                           Documents and in any event in an amount not to exceed
                           $5,000,000 (less loans and advances to the Parent
                           made under clause (n) of the definition of Permitted
                           Indebtedness) in the aggregate after the date hereof.

                  e.       Section 4.20(d) of the Loan Agreement is hereby
                           amended by adding the following at the end thereof:

                           (iv)     The transactions contemplated by the
                                    Reorganization.

                           Notwithstanding the foregoing, the Parent may not
                           merge or consolidate or be merged or consolidated
                           with or into any other Person without the prior
                           written consent of the Administrative Agent.

                                       7
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                           f.       Section 4.20(h) of the Loan Agreement is
                                    hereby amended by adding the words ", the
                                    Reorganization" after the words "a Permitted
                                    Acquisition."

                           g.       Section 4.21(f) of the Loan Agreement is
                                    hereby amended and restated in its entirety
                                    to read as follows:

                           (f) Intercompany loans and advances (i) existing on
                           the date hereof and described on EXHIBIT 4.21(F)
                           hereof, (ii) hereafter made amongst any Loan Parties
                           within the same Division, (iii) hereafter made by any
                           Borrower to any other Borrower, (iv) hereafter made
                           by any Loan Party to any of its wholly owned
                           Subsidiaries which are also Loan Parties; and (v)
                           hereafter made to the Parent by any other Loan Party
                           to the extent any of the same constitutes Permitted
                           Indebtedness under clause (n) of the definition of
                           Permitted Indebtedness or to any Loan Party by the
                           Parent, provided that (x) such Intercompany Loans
                           shall be evidenced by such documentation as the
                           Collateral Agents may require, and (y) after the
                           occurrence of a Cash Control Event, no such
                           intercompany loans may be made under clause (iii)
                           hereof unless there is no VC Availability, DSW
                           Availability, or Filene's Availability, as
                           applicable, immediately prior to the making of such
                           loan to the Division to whom such loan is being made.

                           h.       Section 4.29 of the Loan Agreement is hereby
                                    amended by replacing the word "Borrowers"
                                    with "Loan Parties" in Subsection
                                    4.29(a)(ii)(B)(II) and Subsection 4.29(b).

                           i.       Article 4 of the Loan Agreement is hereby
                                    amended by the addition of the following
                                    Section 4.32 at the end thereof:

                                    4.32     PARENT'S LINE OF BUSINESS. The
                                             Parent shall not engage in any
                                             business, and shall not own any
                                             property or assets, other than
                                             acquiring and owning (a) the
                                             capital stock of any other Loan
                                             Party or the Unrestricted
                                             Subsidiaries, and (b) any
                                             investments permitted to be made by
                                             the Parent hereunder, and (c)
                                             otherwise incidental to the
                                             operation of the business of a
                                             holding company.

         5.       Amendments to Article 6 of Loan Agreement. The provisions of
                  Section 6.1(a)(v) are hereby deleted in their entirety and the
                  following substituted in their stead:

                  (v)  Sales other than in connection with Permitted
                       Dispositions.

         6.       Amendments to Article 10 of Loan Agreement. The provisions of
                  Section 10.3 of the Loan Agreement are hereby amended by
                  adding "Section 4.32: Parent's Line of Business" thereto.

                                       8
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         7.       Amendments to Exhibits to Loan Agreement. The Exhibits to the
                  Loan Agreement are revised as follows:

                  a.       Exhibit 1.2 [Facility Guarantors] is hereby deleted
                           in its entirety.

                  b.       Exhibit 1.5 [Unrestricted Subsidiaries] is hereby
                           amended and restated in its entirety in the form of
                           Exhibit 1.5 attached hereto and incorporated by
                           reference herein.

                  c.       Exhibit 4.2 [Corporate Information] is hereby amended
                           and restated in its entirety in the form of Exhibit
                           4.2 attached hereto and incorporated by reference
                           herein.

                  d.       Exhibit 4.3 [Trade Names] is hereby amended and
                           restated in its entirety in the form of Exhibit 4.3
                           attached hereto and incorporated by reference herein.

         8.       Representations and Warranties. The Loan Parties hereby
                  restate all representations, warranties, and covenants set
                  forth in the Loan Agreement as of the date hereof. To the
                  extent that any changes in any representations, warranties,
                  and covenants require any amendments to the Exhibits to the
                  Loan Agreement, such Exhibits are amended and restated, as
                  evidenced by any replacement Exhibits annexed to this First
                  Amendment.

         9.       Conditions Precedent to Effectiveness. This First Amendment
                  shall not be effective until each of the following conditions
                  precedent have been fulfilled to the satisfaction of the
                  Administrative Agent:

                  a.       This First Amendment shall have been duly executed
                           and delivered by the Majority Lenders and the other
                           parties hereto, and shall be in full force and effect
                           and shall be in form and substance satisfactory to
                           the Administrative Agent and the Majority Lenders.

                  b.       All action on the part of the Loan Parties necessary
                           for the valid execution, delivery and performance by
                           the Loan Parties of this First Amendment and all
                           other documentation, instruments, and agreements to
                           be executed in connection herewith shall have been
                           duly and effectively taken and evidence thereof
                           satisfactory to the Administrative Agent shall have
                           been provided to the Administrative Agent.

                  c.       The Parent and each other Loan Party (to the extent
                           requested by the Administrative Agent) shall each
                           have delivered the following to the Administrative
                           Agent, in form and substance satisfactory to the
                           Administrative Agent:

                                       9
<PAGE>

                           i.       Certificate of Good Standing issued by the
                                    Secretary of the State of its incorporation
                                    or organization.

                           ii.      Certificate of the Parent's and such Loan
                                    Party's Secretary of the due adoption,
                                    continued effectiveness, and setting forth
                                    the text of each corporate resolution
                                    adopted in connection with the loan
                                    arrangement, as modified by the First
                                    Amendment and the Reorganization and
                                    attesting to the true signatures of each
                                    Person authorized as a signatory to any of
                                    the Loan Documents.

                           iii.     Execution and delivery by each Loan Party,
                                    other than the Parent (to the extent
                                    requested by the Administrative Agent) of
                                    the following Loan Documents:

                                    (1)      Such Intercompany Notes as the
                                             Administrative Agent may reasonably
                                             require;
                                    (2)      Joinder to Indemnity, Subrogation
                                             and Contribution Agreement;
                                    (3)      First Amendment to Stock Pledge
                                             Agreement;
                                    (4)      Joinder to Trademark Security
                                             Agreement
                                    (5)      Joinder to Copyright Security
                                             Agreement
                                    (6)      Joinder to Patent Security
                                             Agreement
                                    (7)      Such Collection Account Agreements,
                                             Credit Card Agreements, and DDA
                                             Notifications as the Collateral
                                             Agents may reasonably require.
                                    (8)      UCC financing statements.
                                    (9)      Joinder to Intercreditor Agreement.
                                    (10)     Joinder to Fee Letter.
                                    (11)     Such other documents and agreements
                                             as the Agents may reasonably
                                             require.

                           iv.      Execution and delivery by the Parent of the
                                    following Loan Documents:

                                    (1)      Joinder to Facility Guaranty
                                    (2)      Stock Pledge Agreement
                                    (3)      Joinder to Facility Guarantors
                                             Security Agreement

                           v.       Execution and delivery by the Borrowers of
                                    the following Loan Documents:

                                    (1)      Amended and Restated Swingline
                                             Note.
                                    (2)      Amended and Restated Revolving
                                             Credit Notes.

                                       10
<PAGE>

                           vi.      Opinion of counsel to the Parent and the
                                    other Loan Parties.

                  a.       Execution and delivery of all documents, instruments
                           and agreements in connection with the Term Loans,
                           including, without limitation, an Amendment to
                           Intercreditor Agreement, as may be deemed necessary
                           by the Administrative Agent in connection with the
                           matters contemplated by this First Amendment.

                  b.       The Reorganization shall be finalized to the
                           satisfaction of the Administrative Agent.

                  c.       All fees due under the Loan Agreement, including,
                           without limitation, those due under a certain
                           Amendment Fee Letter of even date herewith, and all
                           costs and expenses incurred by the Agent and the
                           Co-Lead Arrangers in connection with the preparation
                           and negotiation of this First Amendment and related
                           documents (including the fees and expenses of counsel
                           to the Agent and the Co-Lead Arrangers) shall have
                           been paid in full.

                  d.       No Default or Event of Default shall be then
                           occurring.

                  e.       The Loan Parties shall have executed and delivered to
                           the Administrative Agent such other documents,
                           instruments, and agreements as may be required by the
                           Administrative Agent.

         10.      Consent to Reorganization. Upon satisfaction of all conditions
                  precedent to the effectiveness of this First Amendment,
                  consent to the Reorganization shall be deemed to have been
                  given by the Revolving Credit Lenders.

         11.      Miscellaneous.

                  a.       This First Amendment may be executed in several
                           counterparts and by each party on a separate
                           counterpart, each of which when so executed and
                           delivered shall be an original, and all of which
                           together shall constitute one instrument. a.

                  b.       This First Amendment expresses the entire
                           understanding of the parties with respect to the
                           transactions contemplated hereby. No prior
                           negotiations or discussions shall limit, modify, or
                           otherwise affect the provisions hereof.

                  c.       Any determination that any provision of this First
                           Amendment or any application hereof is invalid,
                           illegal or unenforceable in any respect and in any
                           instance shall not effect the validity, legality, or
                           enforceability of such

                                       11
<PAGE>
                           provision in any other instance, or the validity,
                           legality or enforceability of any other provisions of
                           this First Amendment.

                  d.       The Loan Parties shall pay on demand all costs and
                           expenses of the Agents, including, without
                           limitation, reasonable attorneys' fees in connection
                           with the preparation, negotiation, execution and
                           delivery of this First Amendment.

                            [SIGNATURE PAGES FOLLOW]

                                       12
<PAGE>
         IN WITNESS WHEREOF, the parties have duly executed this First Amendment
as of the day and year first above written.

PARENT:                              RETAIL VENTURES, INC.

                                     By:  /s/ James A. McGrady
                                        ------------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

BORROWERS:                           VALUE CITY DEPARTMENT STORES, INC.

                                     By: :  /s/ James A. McGrady
                                          ----------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

                                     SHONAC CORPORATION

                                     By:  /s/ James A. McGrady
                                        ------------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

                                     DSW SHOE WAREHOUSE, INC.

                                     By:  /s/ James A. McGrady
                                        ------------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

                                     GRAMEX RETAIL STORES, INC.

                                     By:  /s/ James A. McGrady
                                        ------------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

                                       13
<PAGE>
                                     FILENE'S BASEMENT, INC.

                                     By:  /s/ James A. McGrady
                                        ------------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

                                     VALUE CITY LIMITED PARTNERSHIP

                                     By: Westerville Road GP, Inc., its Gene

                                     By:  /s/ James A. McGrady
                                        ------------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

                                     VALUE CITY OF MICHIGAN, INC.

                                     By:  /s/ James A. McGrady
                                        ------------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

                                     GB RETAILERS, INC.

                                     By:  /s/ James A. McGrady
                                        ------------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

                                     RETAIL VENTURES JEWELRY,  INC.

                                     By:  /s/ James A. McGrady
                                        ------------------------------------
                                     Name: James A. McGrady
                                     Title: Chief Financial Officer

                                       14
<PAGE>

                             NATIONAL CITY COMMERCIAL FINANCE,
                             INC.  (ADMINISTRATIVE AGENT, COLLATERAL
                             AGENT AND REVOLVING CREDIT LENDER)

                             By: /s/ James Ritchie
                                ---------------------------------
                             Name:   James Ritchie
                             Title:  Vice President

                             NATIONAL CITY BANK
                             (ISSUER)

                             By: /s/ James Ritchie
                                ----------------------------------
                             Name:   James Ritchie
                             Title:  Vice President

                             FLEET RETAIL FINANCE INC.
                             (COLLATERAL AGENT AND REVOLVING CREDIT
                             LENDER)

                             By: /s/ James R. Dore
                                ----------------------------------
                             Name:   James R. Dore
                             Title:  Managing Director

                             WELLS FARGO RETAIL FINANCE LLC

                             By: /s/ Francis D. O'Connor
                                ----------------------------------
                             Name:   Francis D. O'Connor
                             Title:  Senior Vice President

                             THE CIT GROUP/BUSINESS CREDIT, INC.

                             By: /s/ Mike Richman
                                ----------------------------------
                             Name:   Mike Richman
                             Title:  Vice President

<PAGE>

                             AMSOUTH BANK

                             By: /s/ Kathleen F. D'Angelo
                                --------------------------------
                             Name:   Kathleen F. D'Angelo
                             Title:  Attorney-In-Fact

                             GENERAL ELECTRIC CAPITAL CORPORATION

                             By: /s/ Stephen M. Metivier
                                --------------------------------
                             Name:   Stephen M. Metivier
                             Title:  Duly Authorized Signatory

                             HSBC BUSINESS CREDIT (USA), INC.

                             By: /s/ Jimmy Schwartz
                                --------------------------------
                             Name:   Jimmy Schwartz
                             Title:  Vice President

                             WHITEHALL BUSINESS CREDIT CORPORATION

                             By: /s/ Brian Kennedy
                                --------------------------------
                             Name:   Brian Kennedy
                             Title:  Vice President

                             LASALLE BANK NATIONAL ASSOCIATION

                             By: /s/ Sara A. Huizinga
                                --------------------------------
                             Name:   Sara A. Huizinga
                             Title:  Commercial Banking Officer

<PAGE>

                             PNC BANK, National Association

                             By: /s/ Richard F. Muse, Jr.
                                ---------------------------------
                             Name:   Richard F. Muse, Jr.
                             Title:  Vice President

                             THE PROVIDENT BANK

                             By: /s/ Marshall Stuart
                                ---------------------------------
                             Name:   Marshall Stuart
                             Title:  Vice President

                             SIEMENS FINANCIAL SERVICES, INC.

                             By: /s/ Michael Coiley
                                ---------------------------------
                             Name:   Michael Coiley
                             Title:  Senior Vice President<PAGE>

                                                                   EXHIBIT 10(b)

                               FIRST AMENDMENT TO
                               FINANCING AGREEMENT

     AMENDMENT, dated as of October 7, 2003 (this "Amendment"), by and among
Value City Department Stores, Inc., an Ohio corporation ("Value City"), Shonac
Corporation, an Ohio corporation ("Shonac"), DSW Shoe Warehouse, Inc., a
Missouri corporation ("DSW"), Gramex Retail Stores, Inc., a Delaware corporation
("Gramex"), Filene's Basement, Inc., a Delaware corporation ("Filene's"), GB
Retailers, Inc., a Delaware corporation ("GB"), Value City Limited Partnership,
an Ohio limited partnership ("VCLP"), Value City of Michigan, Inc., a Michigan
corporation ("VC Michigan", and together with Value City, Shonac, DSW, Gramex,
Filene's, GB and VCLP, each a "Borrower" and collectively, the "Borrowers"),
J.S. Overland Delivery, Inc. ("Overland"), Value City Department Stores
Services, Inc. ("Services"), Westerville Road GP, Inc. ("Westerville GP") and
Westerville Road LP, Inc. ("Westerville LP", and together with Overland,
Services and Westerville, GP, each an "Initial Guarantor" and collectively, the
"Initial Guarantors"), Retail Ventures, Inc., an Ohio corporation (the
"Parent"), Retail Ventures Jewelry, Inc., an Ohio corporation ("RV Jewelry"),
Retail Ventures Services, Inc., an Ohio corporation ("RV Services"), and Retail
Ventures Imports, Inc. (formerly known as VC Acquisition, Inc.), an Ohio
corporation ("Imports", and together with the Parent, RV Jewelry and RV
Services, each an "Additional Guarantor" and collectively, the "Additional
Guarantors", and together with the Initial Guarantors, each a "Guarantor" and
collectively, the "Guarantors"), the lenders currently party to the Financing
Agreement (as defined below) (the "Lenders"), and Cerberus Partners, L.P., a
limited partnership formed under the laws of the State of Delaware ("CP"), as
agent for the Lenders (in such capacity, together with its successors and
assigns, the "Agent").

                                    RECITALS

     WHEREAS, the Borrowers, the Initial Guarantors, VCM, Ltd., the Lenders and
the Agent are parties to that certain Financing Agreement dated as of June 11,
2002 (as amended, supplemented, restated or otherwise modified through the date
hereof, the "Financing Agreement");

     WHEREAS, the Borrowers and the Initial Guarantors have advised the Agent
that the shareholders and directors of Value City have approved a corporate
reorganization of the Loan Parties as described on Schedule 1.01(b) hereto (the
"Reorganization") and have requested that the Agent and the Lenders (i) consent
to the Reorganization, (ii) waive any Default or Event of Default that would
otherwise occur under the Financing Agreement as a result of the consummation of
the transactions contemplated by the Reorganization, and (iii) make certain
related amendments to the Financing Agreement;

     NOW THEREFORE, in consideration of the mutual agreements, provisions and
covenants contained herein, the parties hereto hereby agree as follows:

         1. Definitions. All capitalized terms used herein and not otherwise
defined herein are used herein as defined in the Financing Agreement.

                                     - 1 -
<PAGE>

         2. Preamble and Recitals.

              (a) The preamble to the Financing Agreement is hereby amended and
restated in its entirety as follows:

         FINANCING AGREEMENT, dated as of June 11, 2002, by and among Value City
         Department Stores, Inc., an Ohio corporation ("Value City"), Shonac
         Corporation, an Ohio corporation ("Shonac"), DSW Shoe Warehouse, Inc.,
         a Missouri corporation ("DSW"), Gramex Retail Stores, Inc., a Delaware
         corporation ("Gramex"), Filene's Basement, Inc., a Delaware corporation
         ("Filene's"), GB Retailers, Inc. a Delaware corporation ("GB"), Value
         City Limited Partnership, an Ohio limited partnership ("VCLP"), Value
         City of Michigan, Inc., a Michigan corporation ("VC Michigan", and
         together with Value City, Shonac, DSW, Gramex, Filene's, GB and VCLP,
         each a "Borrower" and collectively, the "Borrowers"), certain
         affiliates of the Borrowers party hereto as guarantors (each a
         "Guarantor" and collectively, the "Guarantors"), the lenders from time
         to time party hereto (each a "Lender" and collectively, the "Lenders")
         and Cerberus Partners, L.P., a limited partnership formed under the
         laws of the State of Delaware ("CP"), as agent for the Lenders (in such
         capacity together with its successors and assigns, the "Agent").

              (b) The recitals to the Financing Agreement are hereby amended by
deleting the words "the Parent" contained therein and substituting the words
"Value City" therefor.

         3. Definitions.

              (a) The following new definitions are hereby added to Section 1.01
of the Financing Agreement (in appropriate alphabetical order) to read in their
entirety as follows:

         "Family Trust": One or more trusts established for the benefit of any
         of Jay L. Schottenstein, Susan S. Diamond, Ann S. Deshe, Lori
         Schottenstein, Geraldine Schottenstein, any of their respective
         spouses, children or lineal descendants, or any Person controlled by
         any such trust or trusts.

         "First Amendment" means the First Amendment to Financing Agreement,
         dated as of October 7, 2003, made by the Borrowers, the Guarantors, the
         Lenders and the Agent.

         "Reorganization" means the corporate reorganization of the Loan
         Parties, as described on Schedule 1.01(b) hereto.

                                     - 2 -
<PAGE>

         "Reorganization Effective Date" means the date on which the
         transactions contemplated by the Reorganization are consummated.

         "Value City" has the meaning specified therefor in the preamble.

              (b) The definition of the term "Board of Directors" contained in
Section 1.01 of the Financing Agreement is amended and restated in its entirety
to read as follows:

         "Board of Directors" means the board of directors of Value City as of
         the Effective Date, and the board of directors of the Parent as of the
         Reorganization Effective Date.

              (c) The definition of the term "Business Plan" contained in
Section 1.01 of the Financing Agreement is hereby amended by deleting the words
"the Parent" contained therein and substituting the words "Value City" therefor.

              (d) The definition of the term "Change of Control" contained in
Section 1.01 of the Financing Agreement is hereby amended:

                  (i) By adding the words "(other than (A) a Person controlled
by SSC or (B) one or more Family Trusts)" after the words "person or group" in
clause (i) of such definition.

                  (ii) by amending and restating clause (ii) thereof to read in
its entirety as follows:

         (ii) Other than as a result of the exercise by CP of board
         representation rights under the Convertible Loan Agreement, more than
         thirty percent (30%) of the Persons who were directors of the Parent on
         the first day of any period consisting of twelve (12) consecutive
         calendar months (the first of which twelve (12) month periods
         commencing with the first day of August, 2003), cease to be directors
         of the Parent for any reason other than death, disability, or
         replacement (in the ordinary course of business and not as a result of
         any change in the equity ownership of the Parent) by other Persons
         nominated by the nominating committee of the board of directors of the
         Parent;

                  (iii) by amending and restating clause (iv) thereof to read in
its entirety as follows:

         (iv) the failure of SSC or one or more Family Trusts to possess,
         directly or indirectly, the power to cause the direction of the
         management and policies of the Parent.

              (e) The definition of the term "Common Stock" contained in Section
1.01 of the Financing Agreement is amended and restated in its entirety to read
as follows:

                                     - 3 -
<PAGE>

         "Common Stock" means (i) prior to the Reorganization Effective Date,
         the common stock, no par value, of Value City and (ii) on and after the
         Reorganization Effective Date, the common stock, no par value, of the
         Parent.

              (f) The definition of the term "Convertible Loan Agreement"
contained in Section 1.01 of the Financing Agreement is hereby, amended by
adding the words "as amended from time to time" immediately following the words
"June 11, 2002."

              (g) The definition of the term "Indebtedness" contained in Section
1.01 of the Financing Agreement is hereby amended by deleting the words "the
Borrowers" immediately prior to the words "as liabilities" and substituting the
words "the Parent" therefor.

              (h) The definition of the term "Financial Statements" contained in
Section 1.01 of the Financing Agreement is hereby amended by deleting the words
"the Parent" contained therein and substituting the words "Value City" therefor.

              (i) The definition of the term "Guarantors" contained in Section
1.01 of the Financing Agreement is hereby amended and restated to read in its
entirety as follows:

         "Guarantors" means the Parent and each Subsidiary of the Parent (other
         than the Borrowers), now existing or hereafter created or acquired,
         other than the Unrestricted Subsidiaries.

              (j) The definition of the term "Intercreditor Agreement" contained
in Section 1.01 of the Financing Agreement is hereby amended by adding the words
"as amended or otherwise modified from time to time in accordance with its
terms," immediately prior to the words "by and among the Agent" and deleting the
words "the Borrowers and the Guarantors" contained therein and substituting the
words "the Loan Parties."

              (k) The definition of the term "Material Accounting Change"
contained in Section 1.01 of the Financing Agreement is hereby amended by
deleting each occurrence of the word "Borrowers'" contained therein and
substituting the word "Parent's" therefor and by deleting the word "Borrowers"
contained therein and substituting the words "Parent and its Subsidiaries"
therefor.

              (l) The definitions of the terms "National Credit Facility" and
"NCB Hedging Agreement" contained in Section 1.01 of the Financing Agreement are
hereby amended by deleting each occurrence of the words "the Parent" contained
therein and substituting the words "Value City" therefor.

              (m) The definition of the term "Parent" contained in Section 1.01
of the Financing Agreement is hereby amended and restated in its entirety to
read as follows:

              "Parent" means Retail Ventures, Inc., an Ohio corporation.

              (n) The definition of the term "Permitted Acquisition" contained
in Section 1.01 of the Financing Agreement is hereby amended:

                                     - 4 -
<PAGE>

                  (i) by deleting the words "the Borrowers" contained in clause
(i) thereof and substituting the words "the Parent and its Subsidiaries"
therefor;

                  (ii) by adding the words "the Parent and/or" immediately
before the words "the Borrowers" in clause (ii)(c) thereof;

                  (iii) by adding the words "the Parent or" immediately before
the words "a Borrower" in clause (ii)(d) thereof;

                  (iv) by deleting the words "the Borrower" contained in clause
(ii)(g) thereof and substituting the words "the Parent or a Borrower" therefor;
and

                  (v) by deleting the number "$15,000,000" contained in clause
(ii)(h) thereof and substituting the number "$20,000,000" therefor.

              (o) The definition of the term "Permitted Disposition" contained
in Section 1.01 of the Financing Agreement is hereby amended by deleting each
occurrence of the words "a Borrower" contained in clause (v) thereof and
substituting the words "the Parent" therefor.

              (p) The definition of the term "Permitted Indebtedness" contained
in Section 1.01 of the Financing Agreement is hereby amended:

                  (i) by adding the words "for all Loan Parties and, with
respect to the Parent only, shall not exceed $5,000,000 in the aggregate
outstanding at any time" at the end of the proviso contained in clause (iii)
thereof;

                  (ii) by adding the words "for all Loan Parties and, with
respect to the Parent only, shall not exceed $5,000,000 in the aggregate
principal amount outstanding at any time" at the end of the proviso contained in
clause (iv) thereof;

                  (iii) by amending and restating clause (viii) thereof to read
in its entirety as follows:

         (viii) intercompany Indebtedness between and among the Loan Parties
         (other than the Parent) pursuant to loans and advances permitted in
         accordance with Subsection 6.02(e)(F), below, and intercompany
         Indebtedness due to the Parent by any other Loan Party to the extent
         permitted hereunder;

                  (iv) by adding a new clause (xiii) thereto to read in its
entirety as follows:

         ; and (xiii) Indebtedness owed by the Parent to any of the other Loan
         Parties in an amount not to exceed $5,000,000 (less amounts paid under
         Section 6.02(g) hereof) in the aggregate at any time outstanding;

                                     - 5 -
<PAGE>

              (q) The definition of the term "Permitted Investments" contained
in Section 1.01 of the Financing Agreement is hereby amended as follows:

                  (i) by adding the words "the Parent or" before each occurrence
of the words "a Borrower" contained in clause (xiii) thereof; and

                  (ii) by adding the following to the end thereof:

         provided, that except for Excluded Property and loans to officers and
         directors all such Permitted Investments are subject to a perfected
         first priority Lien in favor of the Agent (subject to the terms of the
         Intercreditor Agreement).

              (r) The definition of "Permitted Liens" contained in Section 1.01
of the Financing Agreement is hereby amended by deleting the words "the
Borrowers" contained in clause (i) thereof, and substituting the words "the Loan
Parties" therefor.

              (s) The definition of the term "Registration Rights Agreement"
contained in Section 1.01 of the Financing Agreement is hereby amended by
deleting the words "the Parent" contained therein and substituting the words
"Value City, and binding on the Parent as of the Reorganization Effective Date"
therefor.

              (t) The definition of the term "Revolving Credit Facility"
contained in Section 1.01 of the Financing Agreement is hereby amended by
deleting the words "Parent and certain of its Subsidiaries, as borrowers and as
guarantors" contained therein and substituting the words "Loan Parties,"
therefor.

              (u) The definition of the term "SSC Assignment" contained in
Section 1.01 of the Financing Agreement is hereby amended by deleting the words
"the Parent's" contained therein and substituting the words "Value City's"
therefor.

              (v) The definition of the term "SSC Credit Facility" contained in
Section 1.01 of the Financing Agreement is hereby amended by deleting the words
"the Parent" contained therein and substituting the words "Value City" therefor.

         4. Prepayment of Loans. Section 2.05(g) of the Financing Agreement is
hereby amended by adding the words "neither Value City nor" immediately prior to
the words "the Parent" contained therein, and by deleting the word "no"
contained therein and substituting the word "any" therefor.

         5. Fees. Section 3.01 of the Financing Agreement is hereby amended by
deleting the phrase "Borrower agrees" in the second sentence thereof, and
substituting the phrase "Borrowers agree" therefor.

         6. Conditions Precedent. Section 4.01 of the Financing Agreement is
hereby amended by deleting each occurrence of the words "the Parent" contained
therein and substituting the words "Value City" therefor.

                                     - 6 -
<PAGE>

         7. Representations and Warranties.

              (a) Section 5.01(c) of the Financing Agreement is hereby amended
by adding the words "or in connection with the Reorganization" to the end
thereof.

              (b) Section 5.01(e) of the Financing Agreement is hereby amended
by deleting each occurrence of the words "Effective Date" contained therein and
substituting the words "Reorganization Effective Date" therefor.

              (c) Section 5.01(f) of the Financing Agreement is hereby amended
by adding a new clause (i)(C) thereto to read in its entirety as follows:

         or (C) relates to the Reorganization or any transaction contemplated
         thereby.

              (d) Section 5.01(h) of the Financing Agreement is hereby amended
by adding the words ", or as a result of the consummation of the transactions
contemplated by the Reorganization, will be" immediately prior to the words "in
violation" contained therein.

              (e) Section 5.01(i) of the Financing Agreement is hereby amended
by adding the words ", or, as a result of the consummation of the transactions
contemplated by the Reorganization, will have" immediately following the word
"years" contained therein.

              (f) Section 5.01(j) of the Financing Agreement is hereby amended
by adding a new sub-clause (iii) thereto, to read in its entirety as follows:

         (iii) No material Federal, state or local tax liability will be imposed
         upon any Loan Party as a result of the transactions contemplated by the
         Reorganization.

              (g) Section 5.01(n) of the Financing Agreement is hereby amended
by adding the words ", or as a result of the Reorganization, will occur" after
the words "has occurred" contained in the second sentence thereof.

              (h) Section 5.01(o) of the Financing Agreement is hereby amended:

                  (i) by adding the words "and following the Reorganization,
will have" after the words "Each Loan Party has" contained in clause (i)
thereof;

                  (ii) by adding the words "and following the Reorganization,
will be" after the words "Each such Lease is" contained in the fourth sentence
of clause (ii) thereof;

                  (iii) by deleting the word "such" contained in the fifth
sentence of clause (ii) thereof and substituting the word "material" therefor,
and by adding the words ", or to consummate the transactions contemplated by the
Reorganization" at the end of the fifth sentence of clause (ii) thereof;

                                     - 7 -
<PAGE>

                  (iv) by adding the words "or will be, as a result of the
transactions contemplated by the Reorganization," prior to the words "in
material default" contained in the final sentence of clause (ii) thereof;

                  (v) by adding the word "Reorganization" prior to the words
"Effective Date" contained in the final sentence of clause (ii) thereof; and

                  (vi) by adding the words "or will occur as a result of the
Reorganization" after the words "has occurred" contained in the final sentence
of clause (ii) thereof.

              (i) Section 5.01(q) of the Financing Agreement is hereby amended:

                  (i) by adding the words "or will be, as a result of the
consummation of the Reorganization," after each occurrence of the word "is"
contained in the third and fourth sentences thereof; and

                  (ii) by adding the following after the fifth sentence thereof:

         Without limiting the foregoing, no default or violation shall arise
         under any Lease solely as a result of the assignment and transfer of
         such Lease in connection with the Reorganization.

              (j) Section 5.01(u) of the Financing Agreement is hereby amended
by adding the words "and the Reorganization" after the words "this Agreement"
and the words "to each Loan" contained therein.

              (k) Section 5.01(w) of the Financing Agreement is hereby amended
by adding the words "both before and after giving effect to the Reorganization"
after the words "each Loan Party" contained in the first, third and fourth
sentences thereof.

              (l) Section 5.01(x) of the Financing Agreement is hereby amended:

                  (i) by adding the words "both before and after giving effect
to the Reorganization" after the word "license" contained in the second sentence
thereof; and

                  (ii) by adding the following sentence after the second
sentence thereof:

         Without limiting the foregoing, no default or violation shall arise
         under any such license or agreement solely as a result of the
         assignment and transfer of such license or agreement in connection with
         the Reorganization.

              (m) Sections 5.01(cc) is hereby amended by deleting each
occurrence of the words "Effective Date" contained therein and substituting the
words "Reorganization Effective Date" therefor.

                                     - 8 -
<PAGE>

              (n) Section 5.01(dd) of the Financing Agreement is hereby amended
by deleting the words "the Parent" contained therein, and substituting the words
"Value City" therefor.

              (o) Section 5.01(ee) of the Financing Agreement is hereby amended
by deleting each occurrence of the word "Parent" contained therein, and
substituting the words "Administrative Borrower" therefor.

              (p) Section 5.01(ff) of the Financing Agreement is hereby amended
by adding the words "and the UCC financing statements and financing statement
amendments contemplated by the First Amendment" after the words "Section
4.01(d)" contained in the second sentence thereof.

              (q) Section 5.01(hh) of the Financing Agreement is hereby amended:

                  (i) by adding the words "or will occur as a result of the
Reorganization" after the words "has occurred" contained in the final sentence
thereof; and

                  (ii) by adding the words "or will exist as a result of the
Reorganization" after the word "exists" contained in the final sentence thereof.

              (r) Sections 5.01(ll), and 5.01(nn) of the Financing Agreement are
hereby amended by deleting each occurrence of the word "Parent" contained
therein, and substituting the word "Value City" therefor.

              (s) Section 5.01 (mm) of the Financing Agreement is hereby amended
by adding the words "Value City or" prior to the words "the Parent's" contained
therein and prior to the words "the Parent" contained therein.

         8. Covenants.

              (a) Section 6.01(j) of the Financing Agreement is hereby amended
by deleting the word "Borrower" and substituting the word "Borrowers" therefor.

              (b) Sections 6.01(k), (l) and (m) of the Financing Agreement are
hereby amended by deleting each occurrence of the words "the Parent" and
substituting the words "Value City" therefor.

              (c) Section 6.02(a)(ii) of the Financing Agreement is hereby
amended by deleting the word "or" contained therein and substituting the word
"on" therefor.

              (d) Section 6.02(c) of the Financing Agreement is hereby amended:

                  (i) by adding the following to the end of clause (A) thereof:

         Notwithstanding the foregoing, the Parent may not merge or consolidate
         or be merged or consolidated with or into any other

                                     - 9 -
<PAGE>

         Person without the prior written consent of the Agent.

                  (ii) by adding a new clause (E) at the end thereof to read in
its entirety as follows:

         (E) the transactions contemplated by the Reorganization.

              (e) Section 6.02(e) of the Financing Agreement is hereby amended:

                  (i) by adding the words ", the Reorganization," after the
words "a Permitted Acquisition" in clause (vi) thereof; and

                  (ii) by amending and restating clause (F) thereof to read in
its entirety as follows:

         (F) Intercompany loans and advances (1) existing on the date hereof and
         described on Schedule 6.02(e)(vi)(F) hereof, (2) hereafter made amongst
         any Loan Parties pursuant to the terms of the Revolving Credit
         Facility, (3) hereafter made to the Parent by any other Loan Party to
         the extent any of the same constitutes Permitted Indebtedness under
         clause (viii) of the definition of Permitted Indebtedness, and (4) to
         any Loan Party by the Parent.

              (f) Section 6.02(g) of the Financing Agreement is hereby amended
by adding the following sentence to the end thereof:

         Notwithstanding anything to the contrary contained herein, dividends
         (other than dividends payable solely in capital stock of another Loan
         Party and dividends contemplated by the Reorganization) shall be
         payable to the Parent by any other Loan Party only to the extent not
         otherwise in violation of the Loan Documents and in any event in an
         amount not to exceed $5,000,000 (less loans and advances to the Parent
         made under clause (viii) of the definition of Permitted Indebtedness)
         in the aggregate after the date hereof.

              (g) Section 6.02(i) of the Financing Agreement is hereby amended
by deleting the words "the Parent" contained therein and substituting the words
"Value City" therefor.

              (h) Section 6.02(k) is hereby amended to recite in its entirety as
follows:

         Limitation on Issuance of Capital Stock. Issue or sell or enter into
         any agreement or arrangement for the issuance and sale of, or permit
         any of its Subsidiaries to issue or sell or enter into any agreement or
         arrangement for the issuance and sale of, any shares of its Capital
         Stock, any securities convertible into or exchangeable for its Capital
         Stock or any warrants, provided, that Parent may issue (i) the Warrant
         Stock; (ii) the shares issuable upon conversion of the Convertible Loan
         Agreement; (iii) up to 5,000,000 shares of Common Stock (and following
         the fifth anniversary of the Effective Date, up to an additional
         5,000,000 shares of Common Stock) that are issued to Persons other than
         Affiliates of the Parent, including (A) shares of Common Stock or
         options exercisable

                                     - 10 -
<PAGE>

     therefor, issued or to be issued under the Parent's 2000 Stock Option Plan
     as in effect on the Effective Date or under any other employee stock option
     or purchase plan or plans, or pursuant to compensatory or incentive
     agreements, for officers, employees or consultants of the Parent or any of
     its Subsidiaries, in each case adopted or assumed after such date by the
     Parent's Board of Directors; provided in each case that the exercise or
     purchase price for any such share shall not be less than 95% of the fair
     market value (determined in good faith by the Parent's Board of Directors)
     of the Common Stock on the date of the grant, and such additional number of
     shares as may become issuable pursuant to the terms of any such plans by
     reason of adjustments required pursuant to antidilution provisions
     applicable to such securities in order to reflect any subdivision or
     combination of Common Stock, by reclassification or otherwise, or any
     dividend on Common Stock payable in Common Stock, (B) shares of restricted
     stock issued by the Parent to executive officers of the Parent, and (C)
     shares of Common Stock issued by the Parent as charitable gifts; and (iv)
     up to an additional 2,153,000 shares of Common Stock issued pursuant to
     options that are granted to executive officers of the Parent or its
     Subsidiaries under the Parent's 2000 Stock Option Plan as in effect on the
     date hereof at an exercise price of no less than $4.50 per share and such
     additional number of shares as may become issuable pursuant to the terms of
     any such options under the terms of such plan by reason of adjustments
     required pursuant to antidilution provisions applicable to such securities
     in order to reflect any subdivision or combination of Common Stock, by
     reclassification or otherwise, or any dividend on Common Stock payable in
     Common Stock; and provided, that all options that are issued and expire
     unexercised because the vesting requirements thereof are not satisfied
     shall not be included in the issued shares pursuant to this (iv).

              (i) Section 6.02(l) of the Financing Agreement is hereby amended
by deleting each occurrence of the words "Fiscal Year of the Borrowers" and
substituting the words "Fiscal Year of the Parent" therefor.

              (j) Section 6.02 of the Financing Agreement is hereby amended by
adding a new clause (u) thereto to read in its entirety as follows:

              (u) Parent's Line of Business. The Parent shall not engage in any
              business, and shall not own any property or assets, other than
              acquiring and owning (a) the capital stock of any other Loan Party
              or the Unrestricted Subsidiaries, and (b) any investments
              permitted to be made by the Parent hereunder, and (c) otherwise
              incidental to the operation of the business of a holding company.
              In addition, notwithstanding anything to the contrary contained
              herein, L/C's and Bankers Acceptances (each as defined in the
              Revolving Credit Facility) issued for the account of the Parent
              shall be limited to those L/Cs required to support the workman's
              compensation obligations of the Parent and its Subsidiaries and
              for no other purpose.

         9. Reporting Requirements.

              (a) Section 7.07(a) of the Financing Agreement is hereby amended
by deleting the words "Loan Parties'" and substituting the word "Parent's"
therefor.

                                     - 11 -
<PAGE>

              (b) Section 7.07(b) of the Financing Agreement is hereby amended
by deleting the words "each of the Loan Parties'" and substituting the words
"the Parent's" therefor.

              (c) Section 7.10(d) of the Financing Agreement is hereby amended
by replacing the words "Administrative Borrower's" with the word "Parent's".

         10. Use of Collateral.

              (a) Section 8.01(a)(v) of the Financing Agreement is hereby
amended and restated to read in its entirety as follows:

         (v) sales other than sales in connection with Permitted Dispositions.

              (b) Sections 8.06 and 8.07 of the Financing Agreement are hereby
amended by deleting each occurrence of the words "Borrower", "Borrower's" and
"Borrowers" contained therein and substituting the words "Loan Party" and "Loan
Party's" and "Loan Parties", respectively, therefor.

         11. Events of Default. Section 9.01(c) of the Financing Agreement is
hereby amended by adding "Section 6.02(u): Parent's Line of Business" to the end
thereof.

         12. Miscellaneous. Section 12.02 of the Financing Agreement is hereby
amended by deleting the words "Subject to Section 6.02(l)" contained therein.

         13. Amendments to Schedules to Financing Agreement.

              (a) A new Schedule 1.01(b) (Reorganization) is hereby added to the
Financing Agreement to read in its entirety in the form of Schedule 1.01(b)
attached hereto and incorporated by reference herein.

              (b) Schedule 5.01(e)(i) (Capitalization) is hereby amended and
restated in its entirety in the form of Schedule 5.01(e) attached hereto and
incorporated by reference herein.

              (c) Schedule 5.01(e)(ii) (Subsidiaries) is hereby amended and
restated in its entirety in the form of Schedule 5.01(e)(ii) attached hereto and
incorporated by reference herein.

              (d) Schedule 5.01(cc) (Location of Inventory; Place of Business;
Chief Executive Office; State of Incorporation; FEIN; Organizational ID Number)
is hereby supplemented by Schedule 5.01(cc) attached hereto and incorporated by
reference herein.

              (e) Schedule 5.01(dd) (Tradenames) is hereby supplemented by
Schedule 5.01(dd) attached hereto and incorporated by reference herein.

                                     - 12 -
<PAGE>

              (f) Schedule 5.01(kk) (Unrestricted Subsidiaries) is hereby
amended and restated in its entirety in the form of Schedule 5.01(kk) attached
hereto and incorporated by reference herein.

         14. Conditions to Effectiveness. This Amendment shall become effective
upon satisfaction in full of the following conditions precedent:

              (a) Both before and immediately after giving effect to this
Amendment,

                  (i) the representations and warranties contained in this
Amendment, Article V of the Financing Agreement and the other Loan Documents
shall be correct on and as of the date of this Amendment as though made on and
as of such date (except where such representations and warranties relate to an
earlier date in which case such representations and warranties shall be true and
correct as of such earlier date); and

                  (ii) no Default or Event of Default shall have occurred and be
continuing on the date of this Amendment or result from this Amendment becoming
effective in accordance with its terms.

              (b) The Agent shall have received, on or before the Reorganization
Effective Date, each of the following documents, in form and substance
satisfactory to the Agent and dated the Reorganization Effective Date (unless
otherwise specified), and all conditions precedent to the effectiveness of such
documents (where applicable) shall have been satisfied:

                  (i) this Amendment, duly executed by the Loan Parties, the
Lenders and the Agent;

                  (ii) First Amendment to the Security Agreement, duly executed
by each of the Loan Parties and the Agent;

                  (iii) First Amendment to the Pledge Agreement, duly executed
by each of the Loan Parties and the Agent, together with the original stock
certificates or other certificated securities or instruments representing all of
the Capital Stock of such Loan Parties' subsidiaries, accompanied by undated
stock powers executed in blank and other proper instruments of transfer, in each
case, to the extent not previously delivered to the Agent;

                  (iv) First Amendment to the Intercreditor Agreement, duly
executed by the Agent, the Revolving Credit Agent and the Convertible Agent and
acknowledged by the Loan Parties;

                  (v) Guaranty, duly executed by the Parent, RV Jewelry, RV
Services and Imports;

                  (vi) Acknowledgment, duly executed by the Parent and Value
City with respect to their obligations under the Warrants and the Registration
Rights Agreement;

                                     - 13 -
<PAGE>

                  (vii) such Collection Account Agreements, Credit Card
Agreements and DDA Notifications as the Agent may reasonably require;

                  (viii) such UCC financing statements and UCC financing
statement amendments as the Agent may reasonably require;

                  (ix) an opinion of Porter, Wright, Morris & Arthur LLP,
counsel to the Loan Parties, with respect to the Reorganization, the Loan
Documents and the transactions contemplated hereby and thereby;

                  (x) a certificate of the appropriate official(s) of the state
of organization of each Additional Guarantor certifying as to the subsistence in
good standing of such Additional Guarantor in such state;

                  (xi) a true and complete copy of the charter, certificate of
formation, certificate of limited partnership or other publicly filed
organizational document of each Additional Guarantor certified as of a recent
date not more than thirty (30) days prior to the Reorganization Effective Date
(except as otherwise agreed by the Agent) by an appropriate official of the
state of organization of such Additional Guarantor, which shall set forth the
same complete name of such Additional Guarantor as is set forth herein;

                  (xii) a copy of the bylaws of each Additional Guarantor,
together with all amendments thereto, certified as of the Reorganization
Effective Date by an Authorized Officer of such Additional Guarantor;

                  (xiii) a copy of the resolutions of each Loan Party, certified
as of the date hereof by an Authorized Officer thereof, authorizing (A) the
transactions contemplated hereby, and (B) the execution, delivery and
performance by such Loan Party of each Loan Document to which such Loan Party is
or will be a party, included as amended hereby or by the documents contemplated
hereby, and the execution and delivery of the other documents to be delivered by
such Person in connection herewith and therewith, and (C) the Reorganization,
and each of the documents contemplated thereby;

                  (xiv) a certificate of an Authorized Officer of each
Additional Guarantor, certifying the names and true signatures of the
representatives of such Additional Guarantor authorized to sign each Loan
Document to which such Additional Guarantor is or will be a party and the other
documents to be executed and delivered by such Additional Guarantor in
connection herewith and therewith, together with evidence of the incumbency of
such authorized officers; and

                  (xv) copies of the Revolving Credit Facility Documents and
Convertible Loan Documents, in each case, as amended on the Reorganization
Effective Date and copies of each of the documents executed in connection with
the Reorganization, in each case, duly executed by the parties thereto and
certified as true and correct copies thereof by an Authorized Officer of the
Administrative Borrower, which documents shall be in form and substance
satisfactory to the Agent;

                                     - 14 -
<PAGE>

              (c) All consents, authorizations and approvals of, and filings and
registrations with, and all other actions in respect of, any Governmental
Authority or other Person required in connection with the Reorganization, the
amendment of the Loan Documents, or the conduct of the Loan Parties' business
shall have been obtained and shall be in full force and effect.

              (d) The Agent shall have completed its business and legal due
diligence with respect to the Reorganization and the results thereof shall be
acceptable to the Agent, in its sole and absolute discretion.

              (e) All conditions precedent to the Reorganization and the
amendment of the Revolving Credit Facility and the Convertible Loan Agreement
shall have been met to the satisfaction of the Agent.

              (f) The Agent shall have received such other agreements,
instruments, opinions and other documents as the Agent may reasonably request in
respect of the transactions contemplated hereby.

              (g) All proceedings in connection with the transactions
contemplated by this Amendment, and all documents incidental thereto, shall be
satisfactory to the Agent and its counsel, and the Agent and its counsel shall
have received all such information and such counterpart originals or certified
copies of documents as the Agent or its counsel may reasonably request.

              (h) All fees, expenses and taxes accrued and unpaid or otherwise
due and payable by the Borrowers or a Loan Party pursuant to either the
Financing Agreement or this Amendment (including, without limitation, the fees
and other client charges of Schulte Roth & Zabel LLP in connection with this
Amendment and the related agreements, instruments and other documents) shall
have been paid in full.

         15. Loan Parties' Representations and Warranties. Each Loan Party
represents and warrants to the Agent and the Lenders as follows:

              (a) Such Loan Party

                  (i) is duly organized, validly existing and in good standing
under the laws of the state of its organization and

                  (ii) has all requisite power, authority and legal right to
execute, deliver and perform this Amendment and to perform the Financing
Agreement, as amended hereby.

              (b) The execution, delivery and performance by such Borrower of
this Amendment and the performance by such Loan Party of the Financing
Agreement, as amended hereby

                  (i) have been duly authorized by all necessary action,

                                     - 15 -
<PAGE>

                  (ii) do not and will not violate or create a default under
such Loan Party's organizational documents, any applicable law or any
contractual restriction binding on or otherwise affecting such Loan Party or any
of such Loan Party's properties, except where such violation or default is not
reasonably likely to have a Material Adverse Effect, and

                  (iii) except as provided in the Loan Documents, do not and
will not result in or require the creation of any Lien, upon or with respect to
such Loan Party's property.

              (c) No authorization or approval or other action by, and no notice
to or filing with, any governmental authority is required in connection with the
due execution, delivery and performance by such Borrower of this Amendment or
the performance by such Loan Party of the Financing Agreement, as amended
hereby.

              (d) This Amendment and the Financing Agreement, as amended hereby,
constitute the legal, valid and binding obligations of such Borrower or Loan
Party, as the case may be, enforceable against such Borrower or Loan Party, in
accordance with their terms except to the extent the enforceability thereof may
be limited by any applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws from time to time in effect affecting generally the enforcement
of creditors' rights and remedies and by general principles of equity.

              (e) Both before and immediately after giving effect to this
Amendment,

                  (i) the representations and warranties contained in Article V
of the Financing Agreement are correct on and as of the date hereof as though
made on and as of the date hereof (except to the extent such representations and
warranties expressly relate to an earlier date, in which case such
representations and warranties shall be true and correct as of such earlier
date), and

                  (ii) no Default or Event of Default has occurred and is
continuing on and as of the date hereof.

         16. Continued Effectiveness of Financing Agreement. Each Loan Party
hereby (a) confirms and agrees that the Financing Agreement and each other Loan
Document to which it is a party is, and shall continue to be, in full force and
effect and is hereby ratified and confirmed in all respects except that on and
after the Amendment Effective Date all references in any such Loan Document to
"the Financing Agreement", the "Agreement", "hereto", "hereof", "hereunder",
"thereto", "thereof", "thereunder" or words of like import referring to the
Financing Agreement shall mean the Financing Agreement as amended by this
Amendment, (b) confirms and agrees that to the extent that any such Loan
Document purports to assign or pledge to the Agent, for the ratable benefit of
the Lenders, or to grant to the Agent, for the ratable benefit of the Lenders a
security interest in or Lien on, any Collateral as security for the Obligations
of the Loan Parties, or any of their respective Subsidiaries from time to time
existing in respect of the Financing Agreement and the Loan Documents, such
pledge, assignment and/or grant of the security interest or Lien is hereby
ratified and confirmed in all respects, and (c) confirms and agrees that no
amendment of any terms or provisions of the Financing Agreement or the

                                     - 16 -
<PAGE>

amendments granted hereunder shall relieve any Loan Party from complying with
such terms and provisions other than as expressly amended hereby or from
complying with any other term or provision thereof or herein.

         17. Reaffirmation by Guarantors. Each Guarantor hereby (a) consents to
the transactions contemplated by the Amendment; (b) acknowledges and reaffirms
its obligations owing to the Agent and the Lenders under any Loan Documents to
which it is a party; and (c) agrees that each of the Loan Documents to which it
is a party is and shall remain in full force and effect. Although each of the
Guarantors has been informed of the matters set forth herein and has
acknowledged and agreed to same, it understands that neither the Agent nor any
Lender has any obligation to inform it of such matters in the future or to seek
its acknowledgment or agreement to future amendments, and nothing herein shall
create such a duty.

         18. Consent to Reorganization. Upon satisfaction of all of the
conditions precedent to the effectiveness of this Amendment, in each case, in
form and substance satisfactory to the Agent, consent to the Reorganization
shall be deemed to have been given by the Lenders.

         19. Miscellaneous.

              (a) This Amendment may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which shall be
deemed to be an original but all of which taken together shall constitute one
and the same agreement. Delivery of an executed counterpart of this Amendment by
telefacsimile shall be equally as effective as delivery of an original executed
counterpart of this Amendment.

              (b) Section and paragraph headings herein are included for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

              (c) This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York. Each of the parties to this
Amendment hereby irrevocably waives all rights to trial by jury in any action,
proceeding or counterclaim arising out of or relating to this Amendment.

              (d) This Amendment is a Loan Document executed pursuant to the
Financing Agreement and shall be construed, administered and interpreted in
accordance with the terms thereof.

         20. JURY TRIAL WAIVER. THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT THAT THEY MAY HAVE TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION, OR IN
ANY LEGAL PROCEEDING, DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF THIS
AMENDMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AMENDMENT (WHETHER BASED ON
CONTRACT, TORT, OR ANY OTHER THEORY). EACH PARTY HERETO

                                     - 17 -
<PAGE>

(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

                                     - 18 -
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment, to
be executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                                   BORROWERS:

                                   VALUE CITY DEPARTMENT STORES, INC.,
                                   an Ohio corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   SHONAC CORPORATION,
                                   an Ohio corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   DSW SHOE WAREHOUSE, INC.,
                                   a Missouri corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   GRAMEX RETAIL STORES, INC.,
                                   a Delaware corporation

                                   By: /s/ James A. McGrady
                                       ________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

<PAGE>

                                   FILENE'S BASEMENT, INC.,
                                   a Delaware corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   VALUE CITY LIMITED PARTNERSHIP,
                                   an Ohio limited partnership

                                   By: Westerville Road GP, Inc., its General
                                       Partner

                                       By: /s/ James A. McGrady
                                           _________________________________
                                           Name: James A. McGrady
                                           Title: Chief Financial Officer

                                   VALUE CITY OF MICHIGAN, INC.,
                                   a Michigan corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   GB RETAILERS, INC.,
                                   a Delaware corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

<PAGE>

                                   GUARANTORS:

                                   J.S. OVERLAND DELIVERY, INC.
                                   a Delaware corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   VALUE CITY DEPARTMENT STORES
                                   SERVICES, INC.
                                   a Delaware corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   WESTERVILLE ROAD GP, INC.
                                   a Delaware corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   WESTERVILLE ROAD LP, INC.
                                   a Delaware corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   RETAIL VENTURES, INC.
                                   an Ohio corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

<PAGE>

                                   RETAIL VENTURES JEWELRY, INC.
                                   an Ohio corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   RETAIL VENTURES SERVICES, INC.
                                   an Ohio corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

                                   RETAIL VENTURES IMPORTS, INC.
                                   (formerly known as VC Acquisition, Inc.),
                                   an Ohio corporation

                                   By: /s/ James A. McGrady
                                       _________________________________
                                       Name: James A. McGrady
                                       Title: Chief Financial Officer

<PAGE>

                                   AGENT AND LENDER:

                                   CERBERUS PARTNERS, L.P.,
                                   a Delaware limited partnership

                                   By:  CERBERUS ASSOCIATES, L.L.C.

                                   By: /s/ Mark A. Neporent
                                       ---------------------------------
                                       Name:  Mark A. Neporent
                                       Title: Vice President and
                                              Chief Operating Officer

                                   LENDER:

                                   SCHOTTENSTEIN STORES CORPORATION
                                   a Delaware limited partnership

                                   By: /s/ Thomas R. Ketteler
                                       ---------------------------------
                                       Name:  Thomas R. Ketteler
                                       Title: Chief Operating Officer and
                                              Chief Financial Officer

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