Document:

urgi_exh4-1.htm

    AMENDMENT
      TO RIGHTS AGREEMENT

    

    This
      Amendment dated as of September
      10, 2007 (this “Amendment”), amends the Rights Agreement, dated as of
      September 14, 1999 (the “Agreement”), by and between United Retail Group,
      Inc. a Delaware corporation (the “Company”), and Continental Stock
      Transfer & Trust Company, a New York banking corporation (the “Rights
      Agent”).  All capitalized terms used but not defined in this
      Amendment shall have the meanings ascribed to them in the
      Agreement.

    

    Whereas,
      Redcats USA, Inc., a Delaware
      corporation (“Parent”), Boulevard Merger Sub, Inc., a newly formed
      Delaware corporation and a wholly owned subsidiary of Parent (“Merger
      Sub”), and the Company are entering into an Agreement and Plan of Merger
      (the “Merger Agreement”), dated as of the date hereof, pursuant to which
      (i) Merger Sub will commence a cash tender offer (the “Offer”) to
      purchase all of the issued and outstanding shares of common stock of the Company
      (“Common Stock”) and (ii) following the consummation of the Offer, Merger
      Sub will merge with and into the Company with the Company surviving as a wholly
      owned subsidiary of Parent (the “Merger”);

    

    Whereas,
      concurrently with the
      execution of the Merger Agreement, Parent, Merger Sub, the Company and Mr.
      Raphael Benaroya are entering into a share tender agreement, dated as of the
      date hereof (the “Tender Agreement”), pursuant to which Mr. Benaroya will
      tender his shares of Common Stock in the Offer;

    

    Whereas,
      pursuant to resolutions
      adopted on September 10, 2007 (the “Board Resolutions”), the Board of Directors
      of the Company has approved the Merger Agreement and the Tender
      Agreement;

    

    Whereas,
      Section 27(a) of the Agreement
      provides that prior to the Distribution Date, and subject to the to the
      penultimate sentence of such Section 27(a) of the Agreement, the Rights Agent
      shall, if the Company so directs, supplement or amend any provision of the
      Agreement without the approval of any holders of certificates representing
      shares of Common Stock;

    

    Whereas,
      no Distribution Date has
      occurred and no person is an Acquiring Person; and

    

    Whereas,
      pursuant to the Board
      Resolutions, the Board of Directors of the Company has unanimously determined
      that an amendment to the Agreement as set forth herein is necessary and
      desirable in connection with the Merger Agreement, the Tender Agreement and
      the
      transactions contemplated by the Merger Agreement (including the Offer and
      the
      Merger) and the Tender Agreement, and the Company and the Rights Agent desire
      to
      evidence such amendment in writing.

    

    Now,
      Therefore, in accordance with the
      procedures for amendment of the Agreement set forth in Section 27 thereof,
      and
      in consideration of the foregoing and the

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    mutual
      agreements herein set forth and for other good and valuable consideration,
      the
      parties hereto hereby agree as follows:

    

    1.      Amendment
      of the Agreement.

     

    (a)           Section
      1 of the Agreement is hereby amended and supplemented to add the following
      definitions in the appropriate locations:

     

    “Redcats”
      shall mean Redcats USA, Inc., a Delaware corporation, or any of its
      subsidiaries, including Merger Sub.

     

    “Merger”
      shall mean the “Merger” as such term is defined in the Merger
      Agreement.

     

    “Merger
      Agreement” shall mean the Agreement and Plan of Merger, dated as of September
      10, 2007, by and among the Company, Redcats and Merger Sub, as it may be amended
      from time to time.

     

    “Merger
      Sub” shall mean Boulevard Merger Sub, Inc., a newly formed Delaware corporation
      and wholly owned subsidiary of Redcats.

     

    “Offer”
      shall mean the “Offer” as such term is defined in the Merger
      Agreement.

     

    “Tender
      Agreement” shall mean the Tender Agreement, by and among the Company, Redcats,
      Merger Sub and Raphael Benaroya, dated as of September 10, 2007, as it may
      be
      amended from time to time.

     

    (b)           The
      definition of Acquiring Person in Section 1 of the Agreement is hereby amended
      and supplemented by adding the following sentence at the end
      thereof:

     

    “Notwithstanding
      anything in this Agreement to the contrary, none of Redcats, Merger Sub or
      their
      Affiliates or Associates shall be, or shall be deemed to be, an Acquiring Person
      for purposes of this Agreement by virtue of one or more of (i) the approval,
      execution or delivery of the Merger Agreement or the Tender Agreement, (ii)
      the
      public or other announcement of the Merger Agreement, the Tender Agreement,
      or
      any transaction contemplated by or arising in connection with the Merger
      Agreement (including the Offer and the Merger) or the Tender Agreement, or
      (iii)
      the consummation of the Offer, the Merger, or any transaction contemplated
      by or
      arising in connection with the Merger Agreement (including the Offer and the
      Merger) or the Tender Agreement (each such event and any combination of such
      events, an “Exempt Event”)”

     

    (c)           The
      definition of Section 11(a)(ii) Event in Section 1 of the Agreement is hereby
      amended and supplemented by adding the following proviso immediately following
      the words “Section 11(a)(ii) hereof”:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “;
      provided, however, that notwithstanding anything in this Agreement to the
      contrary, in no event shall any Exempt Event be, or deemed to be, or result
      in,
      a Section 11(a)(ii) Event.”

     

    (d)           The
      definition of Section 13 Event in Section 1 of the Agreement is hereby amended
      and supplemented by adding the following proviso immediately following the
      words
“Section 13(a) hereof”:

     

    “;
      provided, however, that notwithstanding anything in this Agreement
      to the contrary, in no event shall any Exempt Event be, or deemed to be, or
      result in, a Section 13 Event.”

     

    (e)           The
      definition of Stock Acquisition Date in Section 1 of the Agreement is hereby
      amended and supplemented by adding the following proviso immediately following
      the words “has become an Acquiring Person”:

     

    “;
      provided, however, that notwithstanding anything in this Agreement
      to the contrary, a Stock Acquisition Date has not occurred and shall not be
      deemed to have occurred as the result of an Exempt Event.”

     

    (f)           Section
      3(a) of the Agreement is hereby amended and supplemented by adding the following
      proviso immediately following the words “the earliest of (i), (ii) and (iii)
      being herein referred to as the “Distribution Date”” in the fifth parenthetical
      of Section 3(a):

     

    “;
      provided, however, that notwithstanding anything in this Agreement
      to the contrary, a Distribution Date has not occurred and shall not be deemed
      to
      have occurred as the result of an Exempt Event.”

     

    (g)           Section
      3 of the Agreement is hereby amended and supplemented to add the following
      Section 3(d):

     

    “(d)
      Nothing in this Agreement shall be construed to give any holder of Rights or
      any
      other Person any legal or equitable rights, remedies or claims under this
      Agreement by virtue of an Exempt Event.”

     

    (h)           Section
      11(a) of the Agreement is hereby amended and supplemented to add the following
      clause at the end thereof as Section 11(a)(iv):

     

    “(iv)
      Notwithstanding anything in this Agreement to the contrary, in no event shall
      any Exempt Event be, or deemed to be, or result in, a Section 11(a)(ii) Event,
      and this Section 11(a) shall not apply to any Exempt Event.”

     

    (i)           Section
      13 of the Agreement is hereby amended and supplemented to add the following
      clause at the end thereof as Section 13(f):

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “(f)
      Notwithstanding anything in this Agreement to the contrary, in no event shall
      any Exempt Event be, or deemed to be, or result in, a Section 13 Event, and
      this
      Section 13 shall not apply to any Exempt Event.”

     

    (j)           Section
      23 of the Agreement is hereby amended and supplemented to add the following
      Section 23(c):

     

    “(c)
      Notwithstanding anything herein to the contrary, immediately prior to the
      Effective Time (as defined in the Merger Agreement), this Agreement shall
      terminate and shall have no further force and effect and the Rights shall expire
      and become null and void, without any payment, liability or obligation on the
      part of the Company, the Rights Agent or the holders of any
      Rights.”

     

    2.      Governing
      Law.  This Amendment shall be deemed to be a contract made under
      the laws of the State of Delaware and for all purposes shall be governed by
      and
      construed in accordance with the laws of such State applicable to contracts
      to
      be made and performed entirely within such State.

     

    3.      Execution
      in Counterparts.  This Amendment may be executed in any number of
      counterparts, each of which shall be an original and all of which together
      shall
      constitute one instrument.

     

    4.      Effectiveness.  This
      Amendment shall be deemed effective as of, and immediately prior to, the
      execution and delivery of the Merger Agreement.  Except as amended
      hereby, the Agreement shall remain in full force and effect and shall be
      otherwise unaffected hereby.  If for any reason the Merger Agreement
      is terminated in accordance with its terms, then this Amendment shall become
      null and void and be of no further force and effect and the Agreement shall
      remain exactly the same as it existed immediately prior to the execution of
      this
      Amendment.

     

    5.      Severability.  If
      any term, provision, covenant or restrictions of this Amendment is held by
      a
      court of competent jurisdiction or other authority to be invalid, void or
      unenforceable, the remainder of the terms, provisions, covenants and
      restrictions of this Amendment shall remain in full force and effect and shall
      in no way be affected, impaired or invalidated.

     

    [signature
      page follows]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      Witness Whereof, the parties hereto
      have caused this Amendment to be duly executed as of the day and year first
      above written.

    

    
      	 	
              UNITED
                RETAIL GROUP, INC.

            
	 	 	 
	 	
              By:

            	/s/
              Raphael Benaroya 	 
	 	
              Name:

            	Raphael
              Benaroya 	 
	 	
              Title:

            	Chairman,
              President and	 
	 	 	Chief
              Executive Officer	 
	 	 	 
	 	
              CONTINENTAL
                STOCK TRANSFER & TRUST COMPANY

            
	 	 	 
	 	
              By:

            	/s/ Mark
              B. Zimkind 	 
	 	
              Name:

            	Mark
              B. Zimkind 	 
	 	
              Title:

            	Vice
              Presidenturgi_exh10-1.htm

    EXECUTION
      COPY

     

    SHARE
      TENDER AGREEMENT

     

    This
      SHARE TENDER AGREEMENT (this “Agreement”), is dated as of September 10,
      2007 (this “Agreement”), by and among Redcats USA, Inc., a Delaware
      corporation  (“Parent”), Boulevard Merger Sub, Inc., a
      Delaware  corporation and a wholly owned Subsidiary of Parent
      (“Merger Sub”), United Retail Group, Inc., a Delaware corporation (the
“Company”), and Raphael Benaroya, in his capacity as stockholder of
      the
      Company (the “Stockholder”).

     

    W
      I T N E S S E T H

     

    WHEREAS,
      as of the date hereof, the Stockholder is the beneficial
      owner of the number of shares of Common Stock (as defined below) set forth
      opposite the name of the Stockholder on Schedule 1 hereto (including any
      shares of Common Stock acquired by the Stockholder after the execution of this
      Agreement, but excluding (i) shares of Common Stock beneficially owned as a
      result of holding options and stock appreciation rights exercisable within
      sixty
      (60) days of the date hereof unless such shares of Common Stock are held by
      the
      Stockholder as a result of the exercise of such options and stock appreciation
      rights, (ii) shares of Common Stock that cannot be tendered into the Offer
      without violating the rules and regulations of the U.S. Securities Act of 1933,
      as amended (“Restricted Shares”), and (iii) shares held in accounts under
      the Company’s Retirement Savings Plan and Supplemental Retirement Savings Plan,
      the “Owned Shares”); and

     

    WHEREAS,
      Parent, Merger Sub, and the Company are simultaneously with the execution of
      this Agreement entering into an Agreement and Plan of Merger, dated as of the
      date of this Agreement (as it may be amended from time to time in accordance
      with its terms, the “Merger Agreement”), providing for, among other
      things, Merger Sub to commence a cash tender offer (the “Offer”) to
      acquire all of the outstanding shares of common stock, par value $0.001 per
      share of the Company (the “Common Stock”), followed by the subsequent
      merger of Merger Sub with and into the Company with the Company surviving the
      merger as a wholly owned subsidiary of Parent, in each case, on the terms and
      subject to the conditions set forth in the Merger Agreement (capitalized terms
      used herein and not otherwise defined shall have the meanings ascribed to such
      terms in the Merger Agreement); and

     

    WHEREAS,
      as a condition to Parent’s and Merger Sub’s willingness to enter into and
      perform its obligations under the Merger Agreement, Parent and Merger Sub have
      required that the Stockholder agree, and the Stockholder has agreed, (i) to
      tender in the Offer (and not withdraw) all of the Stockholders’ Owned Shares,
      whether upon the exercise of options, conversion of convertible securities
      or
      otherwise, and any other voting securities of the Company (whether acquired
      prior to or after the execution of this Agreement) that are beneficially owned
      by the Stockholder, and (ii) that in the event that a vote of the Company’s
      stockholders is required in furtherance of the Merger Agreement or the
      transactions contemplated thereby, including the Merger, the Stockholder will
      vote all of the Owned Shares and the Restricted Shares in favor of any such
      proposal, and (iii) to take the other actions described in this Agreement;
      and

     

    WHEREAS,
      the Stockholder desires to express its support for the Merger Agreement and
      the
      transactions contemplated thereby, including the Offer and the
      Merger.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    1.           Agreement
      to Tender and Vote; Irrevocable Proxy.

     

    1.1           Agreement
      to Tender.  (a) The Stockholder agrees that as promptly as
      practicable after the commencement of the Offer, and in any event no later
      than
      the 10th
      Business Day following the commencement of the Offer, the Stockholder shall
      irrevocably tender into the Offer all of the Owned Shares owned by the
      Stockholder on or prior to the 10th Business
      Day
      following the commencement of the Offer, free and clear of all Liens that would
      prevent Stockholder from tendering his shares in accordance with this Agreement
      or otherwise complying with his obligations under this Agreement.  If
      the Stockholder acquires any Owned Shares after the 10th Business
      Day
      following the commencement of the Offer (including during any subsequent
      offering period, if any), the Stockholder shall irrevocably tender into the
      Offer such Owned Shares on the date that the Stockholder shall acquire such
      Owned Shares.

     

    (b)
      The Stockholder agrees that once the Owned Shares are tendered into the Offer,
      the Stockholder shall not withdraw the tender of such Owned Shares unless the
      Offer shall have been terminated or shall have expired, in each case, in
      accordance with the terms of the Merger Agreement, or the Merger Agreement
      has
      been terminated.

     

    1.2           Agreement
      to Vote.  The Stockholder hereby agrees that, during the term of
      this Agreement, at any meeting of the stockholders of the Company, however
      called, or any adjournment or postponement of such meeting, the Stockholder
      shall be present (in person or by proxy) and vote (or cause to be voted) all
      of
      the Owned Shares and Restricted Shares (to the extent the Owned Shares are
      not
      purchased in the Offer) (a) in favor of adoption of (1) the Merger Agreement
      and
      all the transactions contemplated by the Merger Agreement, including the Merger,
      and (2) any other matter that is required to facilitate the consummation of
      the
      transactions contemplated by the Merger Agreement and in connection with the
      Merger Agreement to execute any documents which are necessary or appropriate
      in
      order to effectuate the foregoing; and (b) against (1) any Takeover Proposal,
      any agreement or arrangement related to such Takeover Proposal, and (2) any
      action or agreement (other than an adjournment of the Company Stockholders
      Meeting which is recommended by the Board of Directors of the Company in
      accordance with the terms of the Merger Agreement) that would impair the ability
      of Parent and the Merger Sub to complete the Offer or the Merger, the ability
      of
      the Company to consummate the Merger, or that would otherwise be inconsistent
      with, prevent, impede or delay the consummation of the transactions contemplated
      by the Merger Agreement.

     

    1.3           Irrevocable
      Proxy.  The Stockholder hereby irrevocably grants to, and
      appoints, Parent and any designee of Parent and each of Parent’s officers, as
      Stockholder’s attorney, agent and proxy with full power of substitution and
      resubstitution, to the full extent of the Stockholders’ voting rights with
      respect to the Owned Shares and the Restricted Shares, to vote all the Owned
      Shares and the Restricted Shares or grant a consent or approval, at any meeting
      of the stockholders of the Company and in any action by written consent of
      the
      stockholders of the Company, until the earlier of the acceptance of Shares
      pursuant to the Offer or the date of termination of the Merger Agreement, on
      the
      matters described in Section 1.2, and in accordance therewith. THIS PROXY AND
      POWER OF ATTORNEY ARE

     

    
      
        
        

      

      
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    IRREVOCABLE
      AND COUPLED WITH AN INTEREST SUFFICIENT IN LAW TO SUPPORT AND IRREVOCABLE PROXY
      AND, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, SHALL BE VALID AND BINDING
      ON
      ANY PERSON TO WHOM STOCKHOLDER MAY TRANSFER ANY SHARES. The Stockholder revokes
      all other proxies and power of attorneys, with respect to all of the Owned
      Shares and the Restricted Shares that may have heretofore been appointed or
      granted with respect to any matters covered by Section 1.2, and no subsequent
      proxy (whether revocable or irrevocable) or power of attorney shall be given
      by
      the Stockholder, except as required by any letter of transmittal in connection
      with the Offer. The Stockholder agrees to execute any further agreement or
      form
      reasonably necessary or appropriate to confirm and effectuate the grant of
      the
      proxy contained herein.  Such proxy shall automatically terminate upon
      the valid termination of this Agreement in accordance with Section
      5.1.

     

    2.           Representations
      and Warranties.  The Stockholder hereby represents and warrants to
      Parent and Merger Sub as follows:

     

    2.1           Power;
      Due Authorization; Binding Agreement.  The Stockholder has full
      legal capacity, power and authority to execute and deliver this Agreement,
      to
      perform his obligations under this Agreement, and to consummate the transactions
      contemplated by this Agreement.  This Agreement has been duly and
      validly executed and delivered by the Stockholder and, except for withdrawal
      rights that may be required by U.S. federal securities laws, constitutes a
      valid
      and binding agreement of the Stockholder, enforceable against the Stockholder
      in
      accordance with its terms.

     

    2.2           Ownership
      of Shares.  On the date of this Agreement, the Owned Shares set
      forth opposite the Stockholder’s name on Schedule 1 are owned
      beneficially by the Stockholder and include all of the Owned Shares owned
      beneficially by the Stockholder, free and clear of any Liens that would prevent
      the Stockholder from tendering his shares in accordance with this Agreement
      or
      complying with his other obligations under this Agreement, except to the extent
      prohibited by the margin loan arrangements referred to in the Company's proxy
      statement for its June 15, 2007 annual meeting.  As of the date of
      this Agreement, the Stockholder has, and as of immediately prior to the
      expiration of the Offer, the Stockholder will have sole voting and dispositive
      power with respect to the Owned Shares and will be entitled to dispose of the
      Owned Shares, except to the extent prohibited by the margin loan arrangements
      referred to in the Company's proxy statement for its June 15, 2007 annual
      meeting.

     

    2.3           No
      Conflicts. The execution and delivery of this Agreement by the Stockholder
      does not, and the performance of the terms of this Agreement by the Stockholder
      will not, (a) require the Stockholder to obtain the consent or approval of,
      or
      make any filing with or notification to, any Governmental Authority (other
      than
      a filing on Schedule 13D), (b) require the consent or approval of any other
      Person pursuant to any agreement, obligation or instrument binding on
      Stockholder or its properties and assets, (c) except for withdrawal rights
      that
      may be required by the U.S. federal securities laws, conflict with or violate
      any law, rule, regulation, order, judgment or decree applicable to the
      Stockholder or pursuant to which any of its properties or assets are bound
      or
      (d) violate any other agreement to which the Stockholder is a party, including,
      without limitation, any voting agreement, stockholders agreement, irrevocable
      proxy or voting trust.  The Owned Shares are not, with respect to the
      voting or

     

    
      
        
        

      

      
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    transfer
      of such Owned Shares, subject to any other agreement, including any voting
      agreement, stockholders agreement, irrevocable proxy or voting
      trust.

     

    2.4           Acknowledgment.  The
      Stockholder understands and acknowledges that each of Parent and Merger Sub
      is
      entering into the Merger Agreement in reliance upon the Stockholder’s execution,
      delivery and performance of this Agreement.

     

    3.           Representations
      and Warranties of Parent and Merger Sub.  Each of Parent
      and Merger Sub hereby represents and warrants to the Stockholders as
      follows:

     

    3.1           Power;
      Due Authorization; Binding Agreement.  Parent and Merger Sub are
      each corporations duly organized, validly existing and in good standing under
      the laws of their jurisdiction of organization.  Parent and Merger Sub
      have full corporate power and authority to execute and deliver this Agreement,
      to perform their obligations under this Agreement, and to consummate the
      transactions contemplated by this Agreement.  The execution and
      delivery of this Agreement and the consummation by Parent and Merger Sub of
      the
      transactions contemplated by this Agreement have been duly and validly
      authorized by all necessary corporate action on the part of Parent and Merger
      Sub, and no other proceedings on the part of Parent and Merger Sub are necessary
      to authorize this Agreement or to consummate the transactions contemplated
      by
      this Agreement.  This Agreement has been duly and validly executed and
      delivered by Parent and Merger Sub and constitutes a valid and binding agreement
      of Parent and Merger Sub.

     

    3.2           No
      Conflicts.  The execution and delivery of this Agreement by Parent
      and Merger Sub does not, and the performance of the terms of this Agreement
      by
      Parent and Merger Sub will not, (a) require Parent and Merger Sub to obtain
      the
      consent or approval of, or make any filing with or notification to, any
      Governmental Authority, (b) require the consent or approval of any other Person
      pursuant to any agreement, obligation or instrument binding on Parent and Merger
      Sub or its properties and assets (other than a filing on Schedule 13D), (c)
      except as may otherwise be required by federal securities laws, conflict with
      or
      violate any law, rule, regulation, order, judgment or decree applicable to
      Parent and Merger Sub or pursuant to which any of its or its Affiliates’
respective assets are bound or (d) violate any other agreement to which Parent
      and Merger Sub or any of its Affiliates is a party.

     

    4.           Certain
      Covenants of the Stockholders.  The Stockholder hereby covenants
      and agrees with Parent and Merger Sub as follows:

     

    4.1           Restriction
      on Transfer.  From the date of this Agreement and until the
      termination of this Agreement in accordance with its terms, except any action
      contemplated by Section 1, the Stockholder shall not, directly or indirectly,
      (i) sell, transfer, pledge, encumber, assign or otherwise dispose of, or enter
      into any contract, option or other arrangement or understanding with respect
      to
      the sale, transfer, pledge, encumbrance, assignment or other disposition of,
      or
      limitation on the voting rights of, any of the Owned Shares (any such action,
      a
“Transfer”); provided that nothing in this Agreement shall
      prohibit the exercise by Stockholder of any options to purchase Owned Shares,
      or
      (ii), (x) grant any proxies or powers of attorney, deposit any Owned Shares
      into
      a voting trust or enter into a voting agreement with respect to any Owned
      Shares, (y) take any action that would cause any representation or warranty
      of
      the Stockholder contained herein to become untrue or incorrect or have the
      effect of preventing or

     

    
      
        
        

      

      
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    disabling
      Stockholder from performing its obligations under this Agreement, or (z) commit
      or agree to take any of the foregoing actions.  Notwithstanding the
      restrictions in this Section 4.1, the Stockholder may transfer up to 300,000
      shares of Common Stock to one or more foundations or charitable institutions;
      provided that such foundation or charitable institution agrees in writing
      to be bound by the provisions of Section 1 and this Section 4.1 of this
      Agreement as if it were the Stockholder.

     

    4.2           Additional
      Shares.  The Stockholder hereby agrees, during the term of this
      Agreement, to promptly notify Parent and Merger Sub of any new Owned Shares
      or
      Restricted Shares acquired by Stockholder, if any, after the execution of this
      Agreement.  Any such shares shall be subject to the terms of this
      Agreement as though owned by the Stockholder on the date of this Agreement;
      provided, however, that the Stockholder shall not be required to
      tender any such shares to the extent that such tendering would violate Section
      16(b) of the Securities Exchange Act of 1934, as amended, or the rules and
      regulations promulgated thereunder.  The Stockholder shall use its
      reasonable best efforts to seek to cause the Benaroya Charitable Foundation
      to
      tender all shares of Common Stock into the Offer.

     

    4.3           Stockholder
      Capacity.  The Stockholder is entering into this Agreement solely
      in his capacity as the beneficial owner of the Owned Shares and not in his
      capacity as a director or officer of the Company.  Nothing herein
      shall limit or affect any actions taken by the Stockholder in his capacity
      as a
      director or officer of the Company.

     

    4.4           No
      Solicitation.  During the term of this Agreement, the Stockholder
      shall not, nor shall it authorize or permit any of its investment banker,
      financial advisor, attorney, accountant or other advisor, agent or
      representative retained by Stockholder in connection with the Transactions
      (collectively, “Representatives”) to, directly or indirectly through
      another Person, (i) solicit, initiate, or knowingly encourage or facilitate
      (including by way of furnishing information), any inquiries or the making,
      submission or announcement of, any proposal or offer that constitutes or is
      reasonably likely to lead to a Takeover Proposal, (ii) other than informing
      persons of the provisions contained in this Section 4.4, enter into, continue
      or
      participate in any discussions or negotiations regarding any Takeover Proposal,
      or furnish any information concerning himself, the Company and its Subsidiaries
      to any Person in connection with any Takeover Proposal, or otherwise cooperate
      with or take any other action to knowingly facilitate any effort or attempt
      to
      make or implement a Takeover Proposal, (iii) approve or recommend, or propose
      publicly to approve or recommend, any Takeover Proposal or (iv) approve or
      recommend, or propose to approve or recommend, or execute or enter into, any
      letter of intent, agreement in principle, merger agreement, acquisition
      agreement, option agreement or other similar agreement or propose publicly
      or
      agree to do any of the foregoing related to any Takeover Proposal;
provided, however, that the foregoing shall not prohibit
      the Stockholder from taking any actions as a director or officer with respect
      to
      the foregoing in accordance with the terms of the Merger Agreement.

     

    4.5           Dissenter’s
      Rights.  The Stockholder agrees not to exercise, nor to cause the
      exercise of, any dissenter’s right in respect of the Owned Shares which may
      arise with respect to the Merger.

     

    4.6           Documentation
      and Information.  The Stockholder (i) consents to and authorizes
      the publication and disclosure by Parent and Merger Sub of his identity and
      holding of

     

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

    the
      Owned Shares, and the nature of the Stockholder’s commitments, arrangements and
      understandings under this Agreement, in any press release, the Offer Documents,
      or any other disclosure document required in connection with the Offer, the
      Merger and any transactions contemplated by the Merger Agreement, and (ii)
      agrees as promptly as practicable to give to Parent any information reasonably
      related to the foregoing it may reasonably require for the preparation of any
      such disclosure documents. The Stockholder agrees as promptly as practicable
      to
      notify Parent of any required corrections with respect to any written
      information supplied by it specifically for use in any such disclosure document,
      if and to the extent the Stockholder become aware that any shall have become
      false or misleading in any material respect.

     

    4.7           Further
      Assurances.  From time to time, at the request of Parent and
      Merger Sub and without further consideration, the Stockholder shall execute
      and
      deliver such additional documents and take all such further action as may be
      necessary or desirable to consummate and make effective the transactions
      contemplated by this Agreement.

     

    4.8           Shares
      Held Under Retirement Savings Plan.  To the extent permissible
      under the terms of the Company’s Retirement Savings Plan, the Stockholder shall
      instruct the trustee under the Company’s Retirement Savings Plan to tender into
      the Offer any shares of Common Stock held under the Company’s Retirement Savings
      Plan for the benefit of the Stockholder.

     

    5.           Miscellaneous.

     

    5.1           Termination
      of this Agreement.  This Agreement shall terminate upon the
      earlier to occur of (i) the termination of the Merger Agreement in accordance
      with its terms, (ii) the termination or expiration of the Offer, without shares
      being accepted for payment thereunder and (iii) the Effective Time.

     

    5.2           Effect
      of Termination.  In the event of termination of this Agreement
      pursuant to Section 5.1, this Agreement shall become void and of no effect
      with no liability on the part of any party; provided, however, no
      such termination shall relieve any party from any liability for any breach
      of
      this Agreement occurring prior to such termination.

     

    5.3           Entire
      Agreement.  This Agreement constitutes the entire agreement among
      the parties with respect to the subject matter hereof and supersedes all other
      prior agreements and understandings, both written and oral, among the parties
      with respect to the subject matter hereof.  Nothing in this Agreement,
      express or implied, is intended to or shall confer upon any other person any
      right, benefit or remedy of any nature whatsoever under or by reason of this
      Agreement.

     

    5.4           Amendments.  This
      Agreement may not be modified, amended, altered or supplemented, except upon
      the
      execution and delivery of a written agreement executed by each of the parties
      to
      this Agreement.

     

    5.5           Notices.  All
      notices, requests and other communications to any party hereunder shall be
      in
      writing and shall be deemed given if delivered personally, facsimiled (which
      is
      confirmed) or sent by overnight courier (providing proof of delivery) to the
      parties at the following addresses:

     

    
      
        
        

      

      
        -
          6 -

        
          

        

      

      
        
        

      

    

    If
      to Parent or Merger Sub, to:

     

    Redcats
      USA, Inc.

    463
      Seventh Avenue

    New
      York, NY 10018

    Attention:  Eric
      Faintreny, Chief Executive Officer

    Facsimile:  (212)
      613-9565

     

    with
      a copy (which shall not constitute notice) to:

     

    Wachtell,
      Lipton, Rosen & Katz

    51
      West 52nd
      Street

    New
      York, New York 10019

    Attention:  David
      A. Katz, Esq.

    Facsimile:  (212)
      403-2000

     

    If
      to the Stockholder, to:

     

    Mr.
      Raphael Benaroya

    c/o
      United Retail Group, Inc.

    365
      West Passaic Street

    Rochelle
      Park, New Jersey 07662

    Attention:  Mr.
      Raphael Benaroya

    Facsimile:  (201)
      909-2110

    

    with
      a copy (which shall not constitute notice) to:

     

    Skadden,
      Arps, Slate, Meagher & Flom LLP

    4
      Times Square

    New
      York, NY 10036

    Attention:  Paul
      T. Schnell, Esq. and Richard J. Grossman, Esq.

    Facsimile:  (212)
      735-2000

     

    If
      to the Company, to:

     

    United
      Retail Group, Inc.

    365
      West Passaic Street

    Rochelle
      Park, New Jersey 07662

    Attention:  Chief
      Administrative Officer

    Facsimile:  (201)
      909-2110

     

    with
      a copy (which shall not constitute notice) to:

     

    Skadden,
      Arps, Slate, Meagher & Flom LLP

    4
      Times Square

    New
      York, NY 10036

    Attention:  Paul
      T. Schnell, Esq. and Richard J. Grossman, Esq.

    Facsimile:  (212)
      735-2000

    
      
        
        

      

      
        -
          7 -

        
          

        

      

      
        
        

      

    

    or
      such other address or facsimile number as such party may hereafter specify
      by
      like notice to the other parties hereto.  All such notices, requests
      and other communications shall be deemed received on the date of receipt by
      the
      recipient if received prior to 5 P.M., local time, in the place of receipt
      and
      such day is a Business Day in the place of receipt.  Otherwise, any
      such notice, request or communication shall be deemed not to have been received
      until the next succeeding Business Day in the place of receipt.

     

    5.6           Governing
      Law; Jurisdiction; Waiver of Jury Trial.

     

    (a)          THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
      OF
      THE STATE OF DELAWARE, APPLICABLE TO CONTRACTS EXECUTED IN AND TO BE PERFORMED
      ENTIRELY WITHIN THAT STATE, REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN
      UNDER APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS.

     

    (b)          All
      actions and proceedings arising out of or relating to this Agreement shall
      be
      heard and determined in the Chancery Court of the State of Delaware or, in
      the
      event that such court does not have subject matter jurisdiction over such action
      or proceeding, any federal court sitting in the State of Delaware, and the
      parties to this Agreement irrevocably submit to the exclusive jurisdiction
      of
      such courts (and, in the case of appeals, appropriate appellate courts
      therefrom) in any such action or proceeding and irrevocably waive the defense
      of
      an inconvenient forum to the maintenance of any such action or
      proceeding.  The consents to jurisdiction set forth in this paragraph
      shall not constitute general consents to service of process in the State of
      Delaware and shall have no effect for any purpose except as provided in this
      paragraph and shall not be deemed to confer rights on any Person other than
      the
      parties hereto.  Each of the parties to this Agreement consents to
      service being made through the notice procedures set forth in Section 5.5 and
      agrees that service of any process, summons, notice or document by registered
      mail (return receipt requested and first-class postage prepaid) to the
      respective addresses set forth in Section 5.5 shall be effective service of
      process for any suit or proceeding in connection with this Agreement or the
      transactions contemplated by this Agreement.  The parties hereto agree
      that a final judgment in any such action or proceeding shall be conclusive
      and
      may be enforced in other jurisdictions by suit on the judgment or in any other
      manner provided by applicable Law.

     

    (c)          EACH
      OF THE PARTIES TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL
      BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS
      AGREEMENT.

     

    5.7           Specific
      Performance.  The parties agree that irreparable damage may occur
      in the event that any of the provisions of this Agreement were not performed
      in

     

    
      
        
        

      

      
        -
          8 -

        
          

        

      

      
        
        

      

    

    accordance
      with their specific terms or were otherwise breached.  Accordingly,
      the parties agree that, if for any reason a party to this Agreement shall have
      failed to perform its obligations under this Agreement, then the party seeking
      to enforce this Agreement against such nonperforming party under this Agreement
      shall be entitled to specific performance and injunctive and other equitable
      relief, and the parties further agree to waive any requirement for the securing
      or posting of any bond in connection with the obtaining of any such injunctive
      or other equitable relief, this being in addition to any other remedy to which
      they are entitled at Law or in equity.

     

    5.8           No
      Assignment.  Neither this Agreement nor any of the rights,
      interests or obligations hereunder shall be assigned, in whole or in part,
      by
      any of the parties without the prior written consent of the other parties;
      provided that Parent and Merger Sub may assign any of or all of its
      rights, interests and obligations under this Agreement to Parent or to any
      direct or indirect wholly owned Subsidiary of Parent, but no such assignment
      shall relieve Parent or Merger Sub of any of its obligations under this
      Agreement.  Subject to the preceding sentence, this Agreement shall be
      binding upon, inure to the benefit of, and be enforceable by, the parties hereto
      and their respective successors and permitted assigns.  Any purported
      assignment not permitted under this Section 5.8 shall be null and
      void.

     

    5.9           Counterparts.  This
      Agreement may be executed in counterparts (including by facsimile) (each of
      which shall be deemed to be an original but all of which taken together shall
      constitute one and the same agreement) and shall become effective when one
      or
      more counterparts have been signed by each of the parties and delivered to
      the
      other parties. Copies of executed counterparts transmitted by telecopy, telefax
      or electronic transmission shall be considered original executed counterparts
      for purposes of this Section 5.9 provided that receipt of copies of such
      counterparts is confirmed.

     

    5.10           Interpretation.

     

    (a)           The
      headings contained in this Agreement are for reference purposes only and shall
      not affect in any way the meaning or interpretation of this
      Agreement.  Whenever the words "include", "includes" or
      "including" are used in this Agreement, they shall be deemed to be
      followed by the words "without limitation."  The words
      "hereof," "herein" and "hereunder" and words of similar
      import when used in this Agreement shall refer to this Agreement as a whole
      and
      not to any particular provision of this Agreement.  All terms defined
      in this Agreement shall have the defined meanings when used in any document
      made
      or delivered pursuant hereto unless otherwise defined therein.  The
      definitions contained in this Agreement are applicable to the singular as well
      as the plural forms of such terms and to the masculine as well as to the
      feminine and neuter genders of such term.  Any statute defined or
      referred to in this Agreement or in any agreement or instrument that is referred
      to in this Agreement means such statute as from time to time amended, modified
      or supplemented, including by succession of comparable successor statutes and
      references to all attachments thereto and instruments incorporated
      therein.  References to a Person are also to its permitted successors
      and assigns.

     

    (b)          The
      parties hereto have participated jointly in the negotiation and drafting of
      this
      Agreement and, in the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as jointly drafted by the parties
      hereto and no presumption or burden
      of proof shall arise favoring or disfavoring any party by virtue of the
      authorship of any provision of this Agreement.

     

    5.11           Severability.  If
      any term or other provision of this Agreement is determined by a court of
      competent jurisdiction to be invalid, illegal or incapable of being enforced
      by
      any rule of Law or public policy, all other terms, provisions and conditions
      of
      this Agreement shall nevertheless remain in full force and
      effect.  Upon such determination that any term or other provision is
      invalid, illegal or incapable of being enforced, the parties hereto shall
      negotiate in good faith to modify this Agreement so as to effect the original
      intent of the parties as closely as possible to the fullest extent permitted
      by
      applicable Law in an acceptable manner 

     

    
      
        
        

      

      
        -
          9 -

        
          

        

      

      
        
        

      

    

     

     

    to
      the end that the transactions contemplated by this Agreement
      are fulfilled to the extent possible.

     

    [remainder
      of page intentionally blank]

     

    
      
        
        

      

      
        -
          10 -

        
          

        

      

      
        
        

      

    

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

     

     

    
      	 	REDCATS
              USA, INC.	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ Faintreny
              Eric	 
	 	 Name:	 Faintreny
              Eric	 
	 	 Title:	 Chairman
              and CEO	 
	 	 	 	 

    

     

     

    
      	 	BOULEVARD
              MERGER SUB, INC.	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ Faintreny
              Eric	 
	 	 Name:	 Faintreny
              Eric	 
	 	 	 	 
	 	 	 	 

    

     

     

    
      	 	UNITED
              RETAIL GROUP, INC.	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ George
              Remeta	 
	 	 Name:	 George
              Remeta	 
	 	 Title:	 Chief
              Administrative Officer	 
	 	 	 	 

    

     

     

    
      	 	RAPHAEL
              BENAROYA	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ Raphael
              Benaroya	 
	 	
               Name:

            	 Raphael
              Benaroya	 
	 	 	 	 
	 	 	 	 

    

     

    
 

    

    
      
        
        

      

      
        [Signature
          Page to Share Tender Agreement]

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1

     

    Details
      of Ownership

     

    

     

    
      	
              Stockholder

            	
              Owned
                Shares

            
	 	 
	
              Raphael
                Benaroya

            	
              2,079,571

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