Document:

<PAGE>
                                                                  EXHIBIT 10.46

                        AMENDMENT NO. 7 AND WAIVER TO THE
                                CREDIT AGREEMENT

                                            Dated as of December  10, 2001

                  AMENDMENT NO. 7 AND WAIVER TO THE CREDIT AGREEMENT (this
"Amendment") among Iron Age Corporation, a Delaware corporation (the
"Borrower"), Iron Age Holdings Corporation, a Delaware corporation (the "Parent
Guarantor"), the banks, financial institutions and other institutional lenders
party to the Credit Agreement referred to below (collectively, the "Lenders")
and BNP Paribas (formerly known as Banque Nationale de Paris), as agent (the
"Agent") for the Lenders, initial issuing bank and swing line bank.

                  PRELIMINARY STATEMENTS:

                  (1) The Borrower, the Parent Guarantor, the Lenders and the
Agent have entered into a Credit Agreement dated as of April 24, 1998, a Letter
Waiver thereto dated as of August 28, 1998, an Amendment No. 2 and Waiver dated
as of February 26, 1999, an Amendment No. 3 and Waiver dated as of June 23,
1999, an Amendment No. 4 and Waiver dated as of March 17, 2000, an Amendment No.
5 dated as of September 15, 2000 and an Amendment No. 6 dated as of April 24,
2001 (such Credit Agreement, as so amended, the "Credit Agreement"). Capitalized
terms not otherwise defined in this Amendment have the same meanings as
specified in the Credit Agreement as amended hereby.

                  (2) The Borrower has requested that the Lender Parties agree
to waive the requirements of Section 5.02(e)(iv)(C) of the Credit Agreement in
order to permit the sale of the Borrower's optic division pursuant to a purchase
agreement in form and substance satisfactory to the Agent and to make certain
amendments to the Credit Agreement, in each case, as set forth more fully below.

                  (3) The Required Lenders are, on the terms and conditions
stated below, willing to grant the request of the Borrower, and the Borrower and
the Required Lenders have agreed to the amendments and waivers of the Credit
Agreement as hereinafter set forth.

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

                  SECTION 1. Amendments of Certain Provisions of the Credit
Agreement. The Credit Agreement is, upon the occurrence of the Amendment No. 7
Effective Date (as hereinafter defined), hereby amended as follows:

                  (a) The definition of "Applicable Margin" set forth in Section
         1.01 of the Credit Agreement is hereby amended to replace the chart
         therein with the following chart:

<TABLE>
<CAPTION>
        ==========================================================================================================
        Funded Debt to EBITDA Ratio                                   Base Rate Advances    Eurodollar Rate
                                                                                            Advances
        ----------------------------------------------------------------------------------------------------------
<S>                      <C>                                               <C>                  <C>
        Level I
                          less than 4.50 : 1.00                               1.000%               2.500%
        ----------------------------------------------------------------------------------------------------------
        Level II
                          greater than or equal to 4.50 : 1.00
                          but less than 5.25 : 1.00                           1.250%               2.750%
        ----------------------------------------------------------------------------------------------------------
        Level III
                          greater than or equal to 5.25 : 1.00
                          but less than 6.00 : 1.00                           1.500%               3.000%
        ----------------------------------------------------------------------------------------------------------
        Level IV
                          greater than or equal to 6.00 : 1.00                1.750%               3.250%
        ==========================================================================================================
</TABLE>

<PAGE>

                  (b) The definition of "EBITDA" set forth in Section 1.01 of
         the Credit Agreement is hereby amended by (i) deleting the word "and"
         immediately before clause (i) therein and (ii) adding immediately after
         the date "December 31, 1999" in clause (i) therein the following new
         clause (j):

                  "and (j) solely with respect to the third fiscal quarter of
         2001 of the Borrower, an amount up to $170,000 in respect of an accrual
         charge for store closings as reflected on the financial statements of
         the Borrower as of October 27, 2001".

                  (c) The definition of "Loan Value" set forth in Section 1.01
         of the Credit Agreement is hereby amended by adding at the end of the
         last proviso thereof the following new proviso:

                  "; provided further that the Loan Value of the Eligible
         Inventory shall not exceed $10,000,000 at any time.".

                  (d) Section 5.02(b)(i) is hereby amended by deleting the
         figure "$3,500,000" in each of clauses (C) and (D) thereof and in both
         cases substituting for such figure the figure "$2,000,000".

                  (e) Section 5.02(f)(iii) is hereby amended by deleting the
         figure "$1,500,000" therein and substituting for such figure the figure
         "$500,000".

                  (f) Section 5.02(f)(xi) is hereby amended in full to read
         "(xi) [Intentionally omitted];".

                  (g) Section 5.02(f)(xiii) is hereby amended in full to read
         "(xiii) [Intentionally omitted];".

                  (h) Section 5.02(f)(xvi) is hereby amended in full to read
         "(xvi) [Intentionally omitted]; and".

                                       2
<PAGE>

                  (i) Section 5.02(f)(xvii) is hereby amended in full to read
         "(xvii) [Intentionally omitted].".

                  (j) Section 5.04(a) is hereby amended by deleting the ratios
         set opposite the following dates and substituting therefor the ratio
         set forth below opposite each such date:

                  Rolling Period Ending Closest To            Ratio
                  --------------------------------            -----
                  October 31, 2001                            6.50 : 1.00
                  January 31, 2002                            [Not Applicable]
                  April 30, 2002                              [Not Applicable]
                  July 31, 2002                               [Not Applicable]
                  October 31, 2002                            [Not Applicable]
                  January 31, 2003                            [Not Applicable]

                  (k) Section 5.04(b) is hereby amended in full to read as
         follows:

                  "(b) Fixed Charge Coverage Ratio. Maintain a Fixed Charge
         Coverage Ratio for each Rolling Period set forth below of not less than
         the amount set forth below for such Rolling Period:

                  Rolling Period Ending Closest To            Ratio
                  --------------------------------            -----
                  January 31, 2002                            0.85 : 1.00
                  April 30, 2002                              0.85 : 1.00
                  July 31, 2002                               0.80 : 1.00
                  October 31, 2002                            0.85 : 1.00
                  January 31, 2003                            1.00 : 1.00
                  April 30, 2003 and thereafter               1.10 : 1.00"

                  (l) Section 5.04(c) is hereby amended by deleting the ratios
         set opposite the following dates and substituting therefor the ratio
         set forth below opposite each such date:

                  Rolling Period Ending Closest To            Ratio
                  --------------------------------            -----
                  October 31, 2001                            1.55 : 1.00
                  January 31, 2002                            1.40 : 1.00
                  April 30, 2002                              1.45 : 1.00
                  July 31, 2002                               1.50 : 1.00
                  October 31, 2002                            1.85 : 1.00

                  (m) Section 5.04(d) is amended by deleting the amounts set
         opposite the following Fiscal Years and substituting therefor the
         amount set forth below opposite each such Fiscal year:

                  Fiscal Year                        Amount
                  -----------                        ------
                  2002                               $2,000,000
                  2003                               $2,000,000

                  (n) Section 5.04(e) is hereby amended in full to read as
         follows:

                  "(e) Senior Leverage Ratio. Maintain a Senior Leverage Ratio
         for each Rolling Period set forth below of not more than the amount set
         forth below for such Rolling Period:

                  Rolling Period Ending Closest To            Ratio
                  --------------------------------            -----
                  January 31, 2002                            2.35 : 1.00
                  April 30, 2002                              2.20 : 1.00
                  July 31, 2002                               2.20 : 1.00
                  October 31, 2002                            1.75 : 1.00
                  January 31, 2003                            1.50 : 1.00"

                                       3
<PAGE>

                  (o) Schedule I to the Credit Agreement is hereby deleted in
         its entirety and replaced with the new Schedule I thereto attached
         hereto as Annex A.

                  (p) Exhibit J to the Credit Agreement is hereby amended by
         deleting the first bracketed phrase "[Total from Schedule I]" and
         substituted therefor the new bracketed phrase "[The lesser of
         $10,000,000 and the total of Schedule I]".

                  SECTION 2. Waiver of Certain Provisions of the Credit
Agreement. The Required Lenders hereby waive, subject to the satisfaction of the
conditions set forth in Section 3 hereof, the requirements of Section
5.02(e)(iv)(C) of the Credit Agreement in order to permit the sale of the
Borrower's Safety Prescription Eyewear Business Unit known as "Iron Age Vision",
a safety optical distributing business, pursuant to a purchase agreement in form
and substance satisfactory to the Agent (such sale being the "Division Sale");
provided, however, that the Agent shall have received a certificate of the
Borrower, signed on behalf of the Borrower by its Chief Financial Officer,
certifying as to the compliance of the Borrower with each of the following
conditions: (i) the Division Sale shall be consummated on or prior to December
31, 2001; (ii) the purchase price paid to the Borrower for the Division Sale
shall be no less than the fair market value of the asset sold in the Division
Sale at the time of the Division Sale; (iii) 100% of the purchase price for the
Division Sale shall be paid to the Borrower in cash; (iv) the Borrower shall, on
the date of receipt of the Net Cash Proceeds from the Division Sale, prepay an
aggregate principal amount of the Acquisition Advances comprising part of the
same Borrowings equal to the amount of such Net Cash Proceeds less the
Capitalized Leases Amount (as hereinafter defined) and (v) during the period
from and including the Amendment No. 7 Effective Date through and including the
date of consummation of the Division Sale, neither the Borrower nor the Parent
Guarantor shall, at any time sell, lease, transfer or otherwise dispose of, or
permit any of their Subsidiaries to sell, lease, transfer or otherwise dispose
of, any assets, or grant any option or other right to purchase, lease or
otherwise acquire any assets other than Inventory to be sold in the ordinary
course of its business, except the sales and transactions described in clauses
(i), (ii) and (iii) of Section 5.02(e). Anything to the contrary in Section
2.06(b)(ii) of the Credit Agreement notwithstanding, the Borrower may use up to
$110,000 of the Net Cash Proceeds from the Division Sale to repay outstanding
Capitalized Leases (the amount of such repayment being the "Capitalized Leases
Amount").

                  SECTION 3. Conditions of Effectiveness of this Amendment.
Sections 1 and 2 of this Amendment shall become effective as of the first date
(the "AMENDMENT NO. 7 EFFECTIVE DATE") on which each of the following conditions
precedent shall have been satisfied:

                  (a) The Agent shall have received (i) counterparts of this
         Amendment executed by the Borrower, the Parent Guarantor and the
         Required Lenders or, as to any of the Lender Parties, advice
         satisfactory to the Agent that such Lender Party has executed this
         Amendment and (ii) the Consent attached hereto executed by each of the
         Loan Parties.

                  (b) The Agent shall have received on or before the Amendment
         No. 7 Effective Date the following, each dated such date (unless
         otherwise specified), in form and substance satisfactory to the
         Required Lenders (unless otherwise specified) and in sufficient copies
         for each Lender Party:

                                       4
<PAGE>

                           (i) Certified copies of (A) the resolutions of the
                  Board of Directors of (1) the Borrower and the Parent
                  Guarantor approving this Amendment and the matters
                  contemplated hereby and thereby and (2) each other Loan Party
                  evidencing approval of the Consent and the matters
                  contemplated hereby and thereby and (B) all documents
                  evidencing other necessary corporate action and governmental
                  and other third party approvals and consents, if any, with
                  respect to this Amendment, the Consent and the matters
                  contemplated hereby and thereby.

                           (ii) A certificate of the Borrower and the Parent
                  Guarantor, signed on behalf of the Borrower and the Parent
                  Guarantor, respectively, by its President or a Vice President
                  and its Secretary or any Assistant Secretary, dated the
                  Amendment No. 7 Effective Date (the statements made in which
                  certificate shall be true on and as of the Amendment No. 7
                  Effective Date), certifying as to (A) the absence of any
                  amendments to the charter of such Person since the date of the
                  Secretary of State's certificate referred to in Section
                  3.01(k)(iii) of the Credit Agreement, or any steps taken by
                  the board of directors (or persons performing similar
                  functions) or the shareholders of such Person to effect or
                  authorize any further amendment, supplement or other
                  modification thereto; (B) the accuracy and completeness of the
                  bylaws of such Person as in effect on the date on which the
                  resolutions of the board of directors (or persons performing
                  similar functions) of such Person referred to in clause (i) of
                  this Section 3(b) were adopted and on the Amendment No. 7
                  Effective Date (a copy of which, if different from the bylaws
                  of such Person delivered to the Lender Parties on the date of
                  the Initial Extension of Credit, shall be attached to such
                  certificate); (C) the due incorporation and good standing of
                  such Person as a corporation organized under the laws of the
                  jurisdiction of its incorporation, and the absence of any
                  proceeding (either pending or contemplated) for the
                  dissolution, liquidation or other termination of the existence
                  of such Person or any of its Subsidiaries; (D) the accuracy in
                  all material respects of the representations and warranties
                  made by such Person in the Loan Documents to which it is or is
                  to be a party as though made on and as of the Amendment No. 7
                  Effective Date as though made on and as of such date (other
                  than any such representations or warranties that, by their
                  terms, refer to a specific date other than the Amendment No. 7
                  Effective Date, in which case as of such specific date); and
                  (E) the absence of any event occurring and continuing that
                  would constitute a Default.

                           (iii) A certificate of the Secretary or an Assistant
                  Secretary of the Borrower and each other Loan Party certifying
                  the names and true signatures of the officers of the Borrower
                  and such other Loan Party authorized to sign this Amendment
                  and the Consent and the other documents to be delivered
                  hereunder and thereunder.

                           (iv) Such financial, business and other information
                  regarding the Borrower and the Parent Guarantor and their
                  respective property, assets and businesses as the Agent or the
                  Lender Parties shall have requested.

                           (v) A favorable opinion of Ropes & Gray, counsel for
                  the Borrower and the other Loan Parties, in form and substance
                  reasonably satisfactory to the Agent.

                           (vi) Such other opinions, certificates, documents
                  and information as the Agent or the Required Lenders may
                  reasonably request.

                  (c) The representations and warranties contained in each of
         the Loan Documents shall be correct in all material respects on and as
         of the Amendment No. 7 Effective Date, as though made on and as of such
         date (other than any such representations or warranties that, by their
         terms, refer to a specific date other than the Amendment No. 7
         Effective Date, in which case as of such specific date).

                                       5
<PAGE>

                  (d) No event shall have occurred and be continuing that
         constitutes a Default.

                  (e) The Borrower shall have paid to the Agent, for the ratable
         account of each of the Lenders that has executed and delivered a
         counterpart of this Amendment to the Agent prior to 5:00 P.M. (New York
         City time) on December 10, 2001, an amendment fee of 0.25% on the
         aggregate Acquisition Commitment, Working Capital Commitment, Letter of
         Credit Commitment and Swing Line Commitment of such Lender, it being
         understood, that no amendment fee shall be payable by the Borrower for
         the account of any Lender if this Amendment has not been approved prior
         to 5:00 P.M. (New York City time) on December 10, 2001 by the Required
         Lenders.

                  (f) All of the accrued fees and expenses of the Agent and the
         Lender Parties (including the accrued fees and expenses of counsel for
         the Agent) shall have been paid in full.

The effectiveness of this Amendment is further conditioned upon the accuracy of
all of the factual matters described herein. This Amendment is subject to the
provisions of Section 9.01 of the Credit Agreement, except that no amendment or
waiver of any provision of this Section 3, nor consent to any departure by the
Parent Guarantor or the Borrower therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Required Lenders.

                  SECTION 4. Representations and Warranties of the Borrower.
The Borrower represents and warrants as follows:

                  (a) Each Loan Party is a corporation duly organized, validly
         existing and in good standing under the laws of the jurisdiction
         indicated in the recital of parties to this Amendment.

                  (b) The execution, delivery and performance by the Borrower of
         this Amendment and the Loan Documents, as amended hereby, to which it
         is or is to be a party, are within the Borrower's corporate powers,
         have been duly authorized by all necessary corporate action and do not
         (i) contravene the Borrower's charter or by-laws, (ii) violate any law
         (including, without limitation, the Securities Exchange Act of 1934, as
         amended, and the Racketeer Influenced and Corrupt Organizations Chapter
         of the Organized Crime Control Act of 1970), rule or regulation
         (including, without limitation, Regulation X of the Board of Governors
         of the Federal Reserve System), or any order, writ, judgment,
         injunction, decree, determination or award, binding on or affecting the
         Borrower or any of its Subsidiaries or any of their properties, (iii)
         conflict with or result in the breach of, or constitute a default
         under, any contract, loan agreement, indenture, mortgage, deed of
         trust, lease or other instrument binding on or affecting the Borrower,
         any of its Subsidiaries or any of their properties or (iv) except for
         the Liens created under the Collateral Documents, result in or require
         the creation or imposition of any Lien upon or with respect to any of
         the properties of the Borrower or any of its Subsidiaries.

                  (c) No authorization or approval or other action by, and no
         notice to or filing with, any governmental authority or regulatory body
         or any other third party is required for the due execution, delivery or
         performance by the Borrower of this Amendment or any of the Loan
         Documents, as amended hereby, to which it is or is to be a party.

                  (d) This Amendment has been duly executed and delivered by the
         Borrower. This Amendment and each of the other Loan Documents, as
         amended hereby, to which the Borrower is

                                       6
<PAGE>

         a party is the legal, valid and binding obligation of the Borrower,
         enforceable against the Borrower in accordance with its terms.

                  (e) There is no action, suit, investigation, litigation or
         proceeding affecting the Borrower or any of its Subsidiaries
         (including, without limitation, any Environmental Action) pending or
         threatened before any court, governmental agency or arbitrator that (i)
         could be reasonably likely to have a Material Adverse Effect or (ii)
         purports to affect the legality, validity or enforceability of this
         Amendment or any of the other Loan Documents, as amended hereby.

                  SECTION 5. Acknowledgment. Each of the Loan Parties hereto
acknowledges and agrees that after the consummation of the Division Sale, the
exception with respect to sales of assets under Section 5.02(e)(iv) is no longer
available to the Loan Parties.

                  SECTION 6. Reference to and Effect on the Loan Documents. (a)
On and after the Amendment No. 7 Effective Date, each reference in the Credit
Agreement to "this Agreement", "hereunder", "hereof" or words of like import
referring to the Credit Agreement, and each reference in the Notes and the other
Loan Documents to "the Credit Agreement", "thereunder", "thereof" or words of
like import referring to the Credit Agreement, shall mean and be a reference to
the Credit Agreement, as amended and otherwise modified hereby.

                  (b) The Credit Agreement, the Notes and each of the other Loan
Documents, except to the extent of the amendments and other modifications
specifically provided above, are and shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed. Without limiting
the generality of the foregoing, the Collateral Documents and all of the
Collateral described therein do and shall continue to secure the payment of all
Obligations of the Loan Parties under and in respect of the Loan Documents, as
amended and otherwise modified by this Amendment.

                  (c) The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of any Lender Party or any Agent under any of the
Loan Documents, nor constitute a waiver of any provision of any of the Loan
Documents.

                  SECTION 7. Costs and Expenses. The Borrower hereby agrees to
pay, upon demand, all costs and expenses of the Agent (including, without
limitation, the reasonable fees and expenses of counsel for the Agent) in
connection with the preparation, execution, delivery, administration,
syndication, modification and amendment of this Amendment and the other
documents, instruments and agreements to be delivered hereunder, all in
accordance with the terms of Section 9.04 of the Credit Agreement.

                  SECTION 8. Execution in Counterparts. This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.

                  SECTION 9.  Governing Law.  This Amendment shall be governed
by, and construed in accordance with, the laws of the State of New York.

                                       7
<PAGE>

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

                                    IRON AGE CORPORATION

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

                                    IRON AGE HOLDINGS CORPORATION

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

<PAGE>

                                    BNP PARIBAS,
                                        as Agent, Swing Line Bank, Issuing Bank
                                        and as a Lender

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

<PAGE>

                                    KEY CORPORATE CAPITAL INC.

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

<PAGE>

                                    PNC BANK, NATIONAL ASSOCIATION

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

<PAGE>

                                    UBS AG, STAMFORD BRANCH

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

<PAGE>

                                    U.S. BANK NATIONAL ASSOCIATION

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

<PAGE>

          ANNEX A TO AMENDMENT NO. 7 AND WAIVE TO THE CREDIT AGREEMENT

                                   SCHEDULE I

                   COMMITMENTS AND APPLICABLE LENDING OFFICES

NAME OF LENDER:  BANQUE NATIONALE DE PARIS

Working Capital Commitment:                               $   4,615,384.63
Acquisition Facility Commitment:                          $   4,523,802.03
Letter of Credit Commitment:                              $   2,000,000.00
Swing Line Commitment:                                    $   3,000,000.00

DOMESTIC LENDING OFFICE:

BNP Paribas
787 Seventh Avenue
New York, NY  10019

Credit                                         Operations
------                                         ----------
Attn:  Alan Mustacchi/Evan Ho                  Attn:  Julia Posada
Tel:  (212) 841-3437/(212) 841-2806            Tel:  (212) 415-9878
Fax:  (212) 843-3065                           Fax:  (212) 415-9805

EURODOLLAR LENDING OFFICE:

Banque Nationale de Paris
499 Park Avenue
New York, NY  10022

Credit                                         Operations
------                                         ----------
Attn:  Alan Mustacchi/Evan Ho                  Attn:  Julia Posada
Tel:  (212) 841-3437/(212) 841-2806            Tel:  (212) 415-9878
Fax:  (212) 843-3065                           Fax:  (212) 415-9805

<PAGE>

NAME OF LENDER: PNC BANK, N.A.

Working Capital Commitment:                           $    4,615,384.61
Acquisition Facility Commitment:                      $    2,822,169.93

DOMESTIC LENDING OFFICE:

249 Fifth Avenue
Mail Stop P1-PO-PP-06-8
Pittsburgh, PA 15222-2727
Attn: Peggy Collier
Phone: (412) 762-7946
Fax: (412) 768-4586

EURODOLLAR LENDING OFFICE:

249 Fifth Avenue
Mail Stop P1-PO-PP-06-8
Pittsburgh, PA 15222-2727
Attn: Peggy Collier
Phone: (412) 762-7946
Fax: (412) 768-4586

<PAGE>

 NAME OF LENDER: U.S. BANK NATIONAL ASSOCIATION

 Working Capital Commitment:                               $      4,615,384.61
 Acquisition Facility Commitment:                          $      4,523,802.02

 DOMESTIC LENDING OFFICE:

 First Bank Plaza
 601 Second Avenue South
 Minneapolis, MN 55402-4302
 Attn: Karen Johnson
 Phone: (612) 973-0546
 Fax: (612) 973-0825

 EURODOLLAR LENDING OFFICE:

 First Bank Plaza
 601 Second Avenue South
 Minneapolis, MN 55402-4302
 Attn: Karen Johnson
 Phone: (612) 973-0546
 Fax: (612) 973-0825

<PAGE>

NAME OF LENDER: KEY CORPORATE CAPITAL

Working Capital Commitment:                              $     4,615,384.61
Acquisition Facility Commitment:                         $     4,523,802.02

DOMESTIC LENDING OFFICE:

Key Structured Finance
127 Public Square, 6th Floor
Mail Code OH-01-27-0600
Cleveland, OH 44114
Attn: Betty Zimmerman
Phone: (216) 689-4402
Fax: (216) 689-3298

EURODOLLAR LENDING OFFICE:

Key Structured Finance
127 Public Square, 6th Floor
Mail Code OH-01-27-0600
Cleveland, OH 44114
Attn: Betty Zimmerman
Phone: (216) 689-4402
Fax: (216) 689-3298

<PAGE>

NAME OF LENDER: UBS AG, STAMFORD BRANCH

Working Capital Commitment:                           $      1,538,461.54
Acquisition Facility Commitment:                      $      1,507,934.00

DOMESTIC LENDING OFFICE:

677 Washington Boulevard
Stamford, CT 06912
Attn: Denise Clerkin
Phone: (203) 719-3146
Fax: (203) 719-4176

EURODOLLAR LENDING OFFICE:

677 Washington Boulevard
Stamford, CT 06912
Attn: Denise Clerkin
Phone: (203) 719-3146
Fax: (203) 719-4176

<PAGE>

                                     CONSENT

                  Reference is made to (a) Amendment No. 7 and Waiver to the
Credit Agreement dated as of December ___, 2001 (the "Amendment"; capitalized
terms not otherwise defined herein being used herein as defined in the Amendment
and in the Credit Agreement referred to below), (b) the Credit Agreement dated
as of April 24, 1998 (as amended, supplemented or otherwise modified through the
date hereof, the "Credit Agreement") among Iron Age Corporation, a Delaware
corporation, Iron Age Holdings Corporation, a Delaware corporation, the banks,
financial institutions and other institutional lenders party thereto, and BNP
Paribas (formerly known as Banque Nationale de Paris) ("BNP"), as Swing Line
Bank and Initial Issuing Bank thereunder, and BNP, as agent (the "Agent") for
the Lenders thereunder, and (c) the other Loan Documents referred to therein.

                  Each of the undersigned, in its capacity as (a) a Grantor
under the Security Agreement, (b) a Grantor under each Intellectual Property
Security Agreement, and/or (c) a Guarantor under the Subsidiary Guaranty, hereby
consents to the execution, delivery and the performance of the Amendment and
agrees that:

                  (A) each of the Security Agreement, the Intellectual Property
         Security Agreement and the Subsidiary Guaranty to which it is a party
         is, and shall continue to be, in full force and effect and is hereby in
         all respects ratified and confirmed on the Amendment No. 7 Effective
         Date, except that, on and after the Amendment No. 7 Effective Date,
         each reference to "the Credit Agreement", "thereunder", "thereof",
         "therein" or words of like import referring to the Credit Agreement
         shall mean and be a reference to the Credit Agreement, as amended and
         otherwise modified by the Amendment; and

                  (B) as of the Amendment No. 7 Effective Date, the Security
         Agreement, the Intellectual Property Security Agreement and the
         Subsidiary Guaranty to which it is a party and all of the Collateral of
         such Person described therein do, and shall continue to, secure the
         payment of all of the Secured Obligations.

                  This Consent shall be governed by, and construed in accordance
with, the laws of the State of New York.

                  Delivery of an executed counterpart of a signature page of
this Consent by telecopier shall be effective as the delivery of a manually
executed counterpart of this Consent.

                                    IRON AGE CORPORATION

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

                                    IRON AGE HOLDINGS CORPORATION

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

                                    IRON AGE INVESTMENT COMPANY

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:

                                    FALCON SHOE MFG. CO.

                                    By
                                       ----------------------------------------
                                       Name:
                                       Title:<PAGE>

                                                                    Exhibit 10.1

                AMENDMENT NO. 3 TO RECEIVABLES PURCHASE AGREEMENT

     This Amendment No. 3 (the "Amendment") is dated as of November 20, 2001
among New School, Inc. (the "Seller"), School Specialty Inc. (the "Servicer"),
Falcon Asset Securitization Corporation ("Falcon"), the Financial Institutions
and Bank One, NA (Main Office Chicago), as agent (the "Agent").

                              W I T N E S S E T H :

     WHEREAS, the Seller, Falcon, the Financial Institutions and the Agent are
parties to that certain Receivables Purchase Agreement dated as of November 22,
2000 (as previously amended, the "Agreement"); and

     WHEREAS, the Seller, Falcon, the Financial Institutions and the Agent
desire to amend the Agreement in certain respects more fully described
hereinafter;

     NOW, THEREFORE, in consideration of the premises herein contained, and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto hereby agree as follows:

     1.   Defined Terms. Capitalized terms used herein and not otherwise defined
          -------------
shall have their eanings as attributed to such terms in the
Agreement.

     2.   Amendments to the Agreement.
          ---------------------------

     2.1. Amendment to Definition of Liquidity Termination Date. The definition
          -----------------------------------------------------
of "Liquidity Termination Date" appearing in Exhibit I to the Agreement is
hereby amended by deleting the date "November 20, 2001" where it appears therein
and inserting the date "November 19, 2002" in lieu thereof.

     3.   Representations and Warranties. In order to induce the Agent and the
          ------------------------------
undersigned Purchasers to enter into this Amendment each Seller Party represents
and warrants that:

     3.1. The representations and warranties set forth in Article IX of the
Agreement, as hereby amended, are true, correct and complete on the date hereof
as if made on and as of the date hereof and that there exists no Amortization
Event or Potential Amortization Event on the date hereof.

     3.2. The execution and delivery by such Seller Party of this Amendment has
been duly authorized by proper corporate proceedings of such Seller Party and
this Amendment, and the Agreement, as amended by this Amendment, constitutes the
legal, valid and binding obligation of such Seller Party enforceable against
such Seller Party in accordance with its terms, except as

<PAGE>

such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws relating to or limiting creditors' rights
generally.

     3.3. Neither the execution and delivery by such Seller Party of this
Amendment, nor the consummation of the transactions herein contemplated, nor
compliance with the provisions hereof will violate any law, rule, regulation,
order, writ, judgment, injunction, decree or award binding on such Seller Party
or the Seller Party's articles of incorporation or by-laws or the provisions of
any indenture, instrument or agreement to which such Seller Party is a party or
is subject, or by which it or its property, is bound, or conflict with or
constitute a default thereunder.

     4.   Effective Date. This Amendment shall become effective as of the date
          --------------
above first written upon receipt by the Agent of (i) counterparts of this
Amendment duly executed by the Seller, the Servicer, Falcon and the Financial
Institution, and (ii) such other documents as the Agent, Falcon or any Financial
Institution may request.

     5.   Ratification. The Agreement, as amended hereby, is hereby ratified,
          ------------
approved and confirmed in all respects.

     6.   Reference to Agreement. From and after the effective date hereof, each
          ----------------------
reference in the Agreement to "this Agreement", "hereof", or "hereunder" or
words of like import, and all references to the Agreement in any and all
agreements, instruments, documents, notes, certificates and other writings of
every kind and nature shall be deemed to mean the Agreement, as amended by this
Amendment.

     7.   CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
          -------------
THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK.

     8.   Execution in Counterparts. This Amendment may be executed in any
          -------------------------
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

<PAGE>

     IN WITNESS WHEREOF, the Seller, the Servicer, Falcon, the Financial
Institutions and the Agent have executed this Amendment as of the date first
above written.

                                   NEW SCHOOL, INC., as Seller

                                   By:    /s/ Mary M. Kabacinski
                                       ---------------------------------

                                   Title: EVP/CFO
                                          ------------------------------

                                   SCHOOL SPECIALTY, INC., as Servicer

                                   By:    /s/ Mary M. Kabacinski
                                       ---------------------------------

                                   Title: EVP/CFO
                                          ------------------------------

                                   FALCON ASSET SECURITIZATION CORPORATION

                                   By:    /s/ Elizabeth Chung
                                       ---------------------------------

                                   Authorized Signatory

                                   BANK ONE, NA (MAIN OFFICE
                                   CHICAGO), individually as a Financial
                                   Institution and as Agent

                                   By:    /s/ Elizabeth Chung
                                       ---------------------------------

                                   Title: Authorized Signatory
                                          ------------------------------

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