Document:

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                                                                     Exhibit 4.2

                           [FORM OF TERM LOAN WARRANT]

THIS WARRANT AND ANY SECURITIES ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAW OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE
REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. THIS WARRANT AND SUCH
SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN
COMPLIANCE WITH THE TERMS AND CONDITIONS SPECIFIED IN THIS WARRANT.

RETAIL VENTURES, INC.

COMMON STOCK PURCHASE WARRANT No. W-__                              July 5, 2005

                                                             Warrant to Purchase
                                                      Shares of RVI Common Stock
                                                              DSW Class A Shares

            RETAIL VENTURES, INC., an Ohio corporation (the "Company"), for
value received, hereby certifies that CERBERUS PARTNERS, L.P., a Delaware
limited partnership, or its registered assigns (the "Holder"), is entitled to
purchase from the Company that number of duly authorized, validly issued, fully
paid and nonassessable shares of Common Shares, no par value per share, of the
Company (the "Common Stock") equal to the Common Stock Exercise Amount (as
defined below) or, in the alternative, after the consummation of a Qualifying
IPO (as defined below) but prior to the consummation of a Spin-Off (as defined
below) and the satisfaction of the Company's obligations pursuant to Section
3.3(b), and in the Holder's discretion, that number of shares of DSW Stock (as
defined below) equal to the DSW Stock Exercise Amount (as defined below) owned
by the Company, in each case, at a purchase price equal to the applicable
Purchase Price (as defined below), at any time or from time to time but prior to
5:00 P.M., New York City time, on June 11, 2012 (the "Expiration Date"), all
subject to the terms, conditions and adjustments set forth below in this Warrant
(this "Warrant"); provided, that the purchase price per share of Common Stock or
DSW Stock, as the case may be, hereunder shall not in any event be less than the
par value of such Common Stock or DSW Stock, as applicable. For the avoidance of
doubt, in the case of an exercise for DSW Stock, this Warrant shall initially be
exercisable only for Class A Shares (as defined below). This Warrant amends and
restates that certain warrant, dated as of September 26, 2002, issued by the
Company to the Holder.

            1. DEFINITIONS. As used herein, unless the context otherwise
requires, the following terms shall have the meanings indicated:
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            "Additional Shares of Common Stock" shall mean all shares (including
treasury shares) of Common Stock issued or sold (or, pursuant to Section 3.2(b)
or 3.5(b), deemed to be issued) by the Company after September 26, 2002, whether
or not subsequently reacquired or retired by the Company, other than

            (a) (i) shares of Common Stock issued upon the exercise of the Term
Loan Warrants and (ii) such additional number of shares of Common Stock as may
become issuable upon the exercise of the Term Loan Warrants by reason of
adjustments required pursuant to the anti-dilution provisions applicable to the
Term Loan Warrants as in effect on the date hereof or on the date of original
issuance;

            (b) up to 5,000,000 shares of Common Stock (and following June 11,
2007, up to an additional 5,000,000 shares of Common Stock) that are issued to
Persons other than Affiliates of the Company, including (i) shares of Common
Stock or options exercisable therefor, issued or to be issued under the
Company's 2000 Stock Option Plan as in effect on September 26, 2002 or under any
other employee stock option or purchase plan or plans, or pursuant to
compensatory or incentive agreements, for officers, employees or consultants of
the Company or any of its Subsidiaries, in each case adopted or assumed after
such date by the Company's Board of Directors; provided in each case that the
exercise or purchase price for any such share shall not be less than 95% of the
fair market value (determined in good faith by the Company's Board of Directors)
of the Common Stock on the date of the grant, and such additional number of
shares as may become issuable pursuant to the terms of any such plans by reason
of adjustments required pursuant to antidilution provisions applicable to such
securities in order to reflect any subdivision or combination of Common Stock,
by reclassification or otherwise, or any dividend on Common Stock payable in
Common Stock, (ii) shares of restricted stock issued by the Company to executive
officers of the Company, and (iii) shares of Common Stock issued by the Company
as charitable gifts; and provided, however, that all options that are issued and
expire unexercised because the vesting requirements thereof are not satisfied
shall not be included in the issued shares pursuant to this (b);

            (c) up to 2,153,000 shares of Common Stock issued pursuant to
options that are granted to executive officers of the Company or its
Subsidiaries under the Company's 2000 Stock Option Plan as in effect on
September 26, 2002 at an exercise price of no less than $4.50 per share and such
additional number of shares as may become issuable pursuant to the terms of any
such options under the terms of such plan by reason of adjustments required
pursuant to antidilution provisions applicable to such securities in order to
reflect any subdivision or combination of Common Stock, by reclassification or
otherwise, or any dividend on Common Stock payable in Common Stock; provided,
however, that all options that are issued and expire unexercised because the
vesting requirements thereof are not satisfied shall not be included in the
issued shares pursuant to this (c); and

            (d) (i) shares of Common Stock issued upon exercise of the
Conversion Warrants and (ii) such additional number of shares of Common Stock as
may become issuable upon the exercise of the Conversion Warrants by reason of
adjustments required pursuant to anti-dilution provisions applicable to the
Conversion Warrants as in effect on the date hereof or on the date of original
issuance.

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            "Additional Shares of DSW Stock" shall mean all shares (including
treasury shares) of DSW Stock issued or sold (or, pursuant to Section 3.2(b) or
3.5(b), deemed to be issued) by DSW after the closing date of a Qualifying IPO
(and for the avoidance of doubt shall not include shares issued pursuant to the
over-allotment option in such Qualifying IPO after such closing date), whether
or not subsequently reacquired or retired by DSW, other than

                  (a) (i) shares of DSW Stock issued upon the exercise of the
      Term Loan Warrants and (ii) such number of additional shares of DSW Stock
      as may become issuable upon the exercise of the Term Loan Warrants by
      reason of adjustments required pursuant to the antidilution provisions
      applicable to the Term Loan Warrants as in effect on the date hereof or on
      the date of original issuance; or

                  (b) (i) shares of DSW Stock issued upon exercise of the
      Conversion Warrants and (ii) such additional number of shares as may
      become issuable upon the exercise of the Conversion Warrants by reason of
      adjustments required pursuant to antidilution provisions applicable to the
      Conversion Warrants as in effect on September 26, 2002 or on the date
      hereof; or

                  (c) shares of DSW Stock, shares of restricted stock, options
      exercisable for DSW Stock, or any other securities or interests (including
      shares of DSW Stock issued upon conversion, settlement or exercise of any
      such options, securities or other interests), issued or to be issued under
      the DSW Inc. Equity Incentive Plan or any other employee stock option or
      purchase plan or plans, or pursuant to compensatory or incentive
      agreements, for officers, directors, employees or consultants of the
      Company, DSW or any of its respective Subsidiaries, and such additional
      number of shares as may become issuable pursuant to the terms of any such
      plans by reason of adjustments required pursuant to antidilution
      provisions applicable to such securities in order to reflect any
      subdivision or combination of DSW Stock, by reclassification or otherwise,
      or any dividend or distribution on DSW Stock payable in DSW Stock or other
      equity securities or interests; or

                  (d) shares of Class A Shares issued upon exchange of Class B
      Shares.

            "Aggregate Purchase Price" shall have the meaning set forth in
Section 2.1(a).

            "Business Day" shall mean any day other than a Saturday or a Sunday
or any day on which national banks are authorized or required by law to close.
Any reference to "days" (unless Business Days are specified) shall mean calendar
days.

            "Class A Shares" means the shares of the Class A common shares, no
par value, of DSW.

            "Class B Shares" means the shares of the Class B common shares, no
par value, of DSW.

            "Commission" shall mean the Securities and Exchange Commission or
any successor agency having jurisdiction to enforce the Securities Act.

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            "Common Stock" shall have the meaning assigned to it in the
introduction to this Warrant, such term to include any stock into which such
Common Stock shall have been changed or any stock resulting from any
reclassification of such Common Stock, and all other stock of any class or
classes (however designated) of the Company the holders of which have the right,
without limitation as to amount, either to all or to a share of the balance of
current dividends and liquidating dividends after the payment of dividends and
distributions on any shares entitled to preference.

            "Common Stock Exercise Amount" shall initially mean the Initial
Common Stock Exercise Amount, as the same may be adjusted and readjusted
pursuant to Section 3 hereof; and shall be reduced upon each exercise of this
Warrant (i) if exercised for Common Stock, by such number of shares of Common
Stock for which this Warrant is then being exercised or (ii) if exercised for
DSW Stock, by the Corresponding Common Stock Number applicable to the number of
shares of DSW Stock for which this Warrant is then being exercised.

            "Common Stock Purchase Price" shall mean initially $4.50 per share,
subject to adjustment and readjustment from time to time as provided in Section
3, and, as so adjusted or readjusted, shall remain in effect until a further
adjustment or readjustment thereof is required by Section 3.

            "Company" shall have the meaning assigned to it in the introduction
to this Warrant, such term to include any corporation or other entity which
shall succeed to or assume the obligations of the Company hereunder in
compliance with Section 4.

            "Conversion" shall have the meaning assigned to it in Section
3.1(b).

            "Convertible Facility" shall mean that certain Amended and Restated
Senior Subordinated Convertible Loan Agreement, dated as of June 11, 2002, among
the Company, CPLP and SSC, as amended by Amendment No. 1 to Amended and Restated
Senior Convertible Loan Agreement, dated as of June 11, 2002, and by Amendment
No. 2 to Amended and Restated Senior Convertible Loan Agreement, dated as of
October 7, 2003, and by Amendment No. 3 to Amended and Restated Senior
Convertible Loan Agreement, dated as of December 29, 2004, and as amended and
restated by the Second Amended and Restated Senior Loan Agreement, dated as of
June ___, 2005 (as amended, supplemented, restated otherwise modified through
the date hereof).

            "Convertible Securities" shall mean any evidences of indebtedness,
shares of stock (other than Common Stock or DSW Stock) or other securities
directly or indirectly convertible into or exchangeable for, in the case of the
Company, Additional Shares of Common Stock or, in the case of DSW, Additional
Shares of DSW Stock.

            "Conversion Warrants" means those certain warrants issued on the
date hereof in connection with an amendment and restatement of the Convertible
Facility.

            "Corresponding Common Stock Number" shall mean, with respect to a
specified number of shares of DSW Stock, the number of shares of Common Stock
obtained by dividing: (i) the product of (A) the number of shares of DSW Stock
with respect to which such

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determination is being made and (B) the DSW Stock Purchase Price by (ii) the
Common Stock Purchase Price; rounding up in the case of any fractional share.

            "Corresponding DSW Stock Number" shall mean, with respect to a
specified number of shares of Common Stock, the number of shares of DSW Stock
obtained by dividing (i) the product of (A) the number of shares of Common Stock
with respect to which such determination is being made and (B) the Common Stock
Purchase Price by (ii) the DSW Stock Purchase Price; rounding up in the case of
any fractional share.

            "CPLP" shall mean Cerberus Partners, L.P., or its assignees.

            "Current Market Price" shall mean, with respect to a security, on
any date specified herein, the average of the daily Market Price of such
security during the 10 consecutive trading days before such date, except that,
if on any such date the shares of such security are not listed or admitted for
trading on any national securities exchange or quoted in the over-the-counter
market, the Current Market Price shall be the Market Price on such date.

            "DSW" shall mean DSW Inc., an Ohio corporation.

            "DSW Registration Rights Agreement" shall mean the registration
rights agreement, dated as of the date hereof, among DSW and the Initial
Holders.

            "DSW Stock" shall mean shares of Class A Shares, such term to
include any stock into which such DSW Stock shall have been changed or any stock
resulting from any reclassification of such DSW Stock, and all other stock of
any class or classes (however designated) of DSW the holders of which have the
right, without limitation as to amount, either to all or to a share of the
balance of current dividends and liquidating dividends after the payment of
dividends and distributions on any shares entitled to preference.

            "DSW Stock Exercise Amount" shall initially mean the Initial DSW
Stock Exercise Amount, as the same may be adjusted and readjusted pursuant to
Section 3 hereof; and shall be reduced upon each exercise of this Warrant (i) if
exercised for DSW Stock, by such number of shares of DSW Stock for which this
Warrant is then being exercised or (ii) if exercised for Common Stock, by the
Corresponding DSW Stock Number applicable to the number of shares of Common
Stock for which this Warrant is then being exercised.

            "DSW Stock Purchase Price" shall mean initially, the IPO Price,
subject to adjustment and readjustment from time to time as provided in Section
3, and, as so adjusted or readjusted, shall remain in effect until a further
adjustment or readjustment thereof is required by Section 3.

            "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time, and the rules and regulations thereunder, or any
successor statute.

            "Expiration Date" shall have the meaning assigned to it in the
introduction to this Warrant.

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            "Fair Value" shall mean, on any date specified herein (i) in the
case of cash, the dollar amount thereof, (ii) in the case of a security, the
Current Market Price, and (iii) in all other cases, the fair value thereof (as
of a date which is within 20 days of the date as of which the determination is
to be made) determined in good faith by a committee of the Company's Board of
Directors consisting of directors who are not Affiliates of the Company, SSC or
the Holder; provided, however, that at the reasonable request of the Holder, the
Fair Value shall be determined in good faith by an independent investment
banking firm selected jointly by the Company and the Holder or, if that
selection cannot be made within 10 days, by an independent investment banking
firm selected by the American Arbitration Association in accordance with its
rules, and provided, further, that the Company shall pay all of the reasonable
fees and expenses of any third parties incurred in connection with determining
the Fair Value.

            "Financing Agreement" shall mean that certain Financing Agreement,
dated as of June 11, 2002, among the Company, certain Affiliates of the Company,
CPLP and SSC, as subsequently amended and modified through the date hereof.

            "Holder" shall have the meaning assigned to it in the introduction
to this Warrant.

            "Initial Common Stock Exercise Amount" means 1,388,752 shares.

            "Initial DSW Stock Exercise Amount" shall mean the number of shares
of DSW Stock obtained by dividing (i) the product of (A) 1,388,752 and $4.50 by
(ii) the IPO Price; rounding down for any fractional share.

            "Initial Holders" shall mean CPLP and SSC.

            "IPO Effective Date" means the date on which a Qualifying IPO is
consummated in accordance with the terms set forth in (i) Section 4.02 of the
Convertible Facility and (ii) the Form S-1 Registration Statement as filed with
the SEC on June 28, 2005 as amended from time to time.

            "IPO Price" means the price at which a share of DSW Stock is
initially offered to the public in a Qualifying IPO as set forth on the cover
page to the prospectus in such IPO, or $19.00 per share.

            "Lien" shall have the meaning set forth in the Convertible Facility.

            "Market Price" shall mean, on any date specified herein, with
respect to any security, the amount per share of such security equal to (i) the
last reported sale price of such security, regular way, on such date or, in case
no such sale takes place on such date, the average of the closing bid and asked
prices thereof regular way on such date, in either case as officially reported
on the principal national securities exchange on which such security is then
listed or admitted for trading, (ii) if such security is not then listed or
admitted for trading on any national securities exchange but is designated as a
national market system security by the NASD, the last reported trading price of
such security on such date, (iii) if there shall have been no trading on such
date or if such security is not so designated, the average of the closing bid
and asked prices of such security on such date as shown by the NASD automated
quotation system, (iv) if trading in such security is quoted in the
over-the-counter market, the average of the closing bid and

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asked prices of the security on such date as shown on the OTC Bulletin Board, or
(v) if such security is not then listed or admitted for trading on any national
exchange or quoted in the over-the-counter market, the fair value thereof (as of
a date which is within 20 days of the date as of which the determination is to
be made) determined in good faith by a committee of the Company's Board of
Directors consisting of directors who are not Affiliates of the Company, SSC or
the Holder; provided, however, that at the request of the Holder, the Market
Price shall be determined in good faith by an independent investment banking
firm selected jointly by the Company and the Holder or, if that selection cannot
be made within 10 days, by an independent investment banking firm selected by
the American Arbitration Association in accordance with its rules, and provided,
further, that the Company shall pay all of the fees and expenses of any third
parties incurred in connection with determining the Market Price.

            "NASD" shall mean the National Association of Securities Dealers,
Inc.

            "New Issuance Price" shall have the meaning set forth in Section
3.2.

            "Options" shall mean any rights, options or warrants to subscribe
for, purchase or otherwise acquire, in the case of the Company, Additional
Shares of Common Stock or Convertible Securities of the Company, and, in the
case of DSW, Additional Shares of DSW Stock or Convertible Securities of DSW.

            "Original Issuance Date" means September 26, 2002.

            "Other Securities" shall mean any stock (other than Common Stock or
DSW Stock) and other securities of the Company or DSW, as applicable, or any
other Person (corporate or otherwise) which the holders of the Term Loan
Warrants at any time shall be entitled to receive, or shall have received, upon
the exercise of the Term Loan Warrants, in lieu of or in addition to Common
Stock or DSW Stock, or which at any time shall be issuable or shall have been
issued in exchange for or in replacement of Common Stock or DSW Stock or Other
Securities pursuant to Section 4 or otherwise.

            "Permitted Lien" shall have the meaning set forth in the Convertible
Facility.

            "Person" shall mean any individual, firm, partnership, corporation,
trust, joint venture, association, joint stock company, limited liability
company, unincorporated organization or any other entity or organization,
including a government or agency or political subdivision thereof, and shall
include any successor (by merger or otherwise) of such entity.

            "Purchase Price" shall mean, with respect to the Common Stock, the
Common Stock Purchase Price, and with respect to the DSW Stock, the DSW Stock
Purchase Price, as applicable.

            "Qualifying IPO" shall mean an initial public offering of DSW (a) in
which the sale price of the Class A Shares sold in the initial public offering
shall reflect the fair market value of such shares at the time of the initial
public offering as determined by the Company's Board of Directors; (b) from
which the net proceeds are sufficient to repay in full all obligations

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outstanding under the Financing Agreement and $25,000,000 of the principal
amount under the Convertible Facility; and (c) which is consummated on or prior
to December 31, 2005.

            "Registration Rights Agreement" shall mean the Second Amended and
Restated Registration Rights Agreement, dated as of the date hereof, among the
Company and the Initial Holders.

            "Restricted Securities" shall mean (i) any Term Loan Warrants
bearing the applicable legend set forth in Section 10.1, (ii) any shares of
Common Stock or DSW Stock (or Other Securities) issued or issuable upon the
exercise of Term Loan Warrants which are (or, upon issuance, will be) evidenced
by a certificate or certificates bearing the applicable legend set forth in
Section 10.1, and (iii) any shares of Common Stock or DSW Stock (or Other
Securities) issued subsequent to the exercise of any of the Term Loan Warrants
as a dividend or other distribution with respect to, or resulting from a
subdivision of the outstanding shares of Common Stock or DSW Stock (or Other
Securities) into a greater number of shares by reclassification, stock splits or
otherwise, or in exchange for or in replacement of the Common Stock or DSW Stock
(or Other Securities) issued upon such exercise, which are evidenced by a
certificate or certificates bearing the applicable legend set forth in Section
10.1.

            "Securities Act" shall mean the Securities Act of 1933, as amended
from time to time, and the rules and regulations thereunder, or any successor
statute.

            "Spin-Off" shall have the meaning assigned to it in Section 3.3.

            "SSC" shall mean Schottenstein Stores Corporation.

            "Term Loan Warrants" shall mean all warrants initially issued
pursuant to the Financing Agreement (as amended and restated), including this
Warrant.

            "Warrant" shall have the meaning assigned to it in the introduction
to this Warrant.

            "Warrant Shares" means (a) the shares of Common Stock or DSW Stock
issued or issuable upon exercise of this Warrant in accordance with Section 2,
(b) all other securities or other property issued or issuable upon any such
exercise or exchange in accordance with this Warrant and (c) any securities of
the Company or DSW distributed with respect to the securities referred to in the
preceding clauses (a) and (b).

            2. EXERCISE OF WARRANT.

            2.1. Manner of Exercise; Payment of the Purchase Price. (a) This
Warrant may be exercised by the Holder hereof, in whole or in part, at any time
or from time to time prior to the Expiration Date, by surrendering to the
Company at its principal office this Warrant, with the form of Election to
Purchase Shares attached hereto as Exhibit A, or (provided that the Company has
not consummated a Spin-Off and satisfied its obligation pursuant to Section
3.3(b)) if this Warrant is being exercised for Shares of DSW Stock, Exhibit B
(or a reasonable facsimile thereof) duly executed by the Holder and accompanied
by payment of the applicable

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Purchase Price for the number of shares of Common Stock or, after the
consummation of a Qualifying IPO (provided that the Company has not consummated
a Spin-Off and satisfied its obligations pursuant to Section 3.3(b), DSW Stock
specified in such form (the "Aggregate Purchase Price"). Any partial exercise of
this Warrant shall be for a whole number of Warrant Shares only.

            (b) Payment of the Aggregate Purchase Price may be made as follows
(or by any combination of the following): (i) in United States currency by cash
or delivery of a certified check or bank draft payable to the order of the
Company or by wire transfer to the Company, (ii) by cancellation of such number
of Warrant Shares otherwise issuable to the Holder upon such exercise as shall
be specified for cancellation in such Election to Purchase Shares, such that the
excess of the aggregate Current Market Price of such specified number and type
of shares on the date of exercise over the portion of the Aggregate Purchase
Price attributable to such shares shall equal the Aggregate Purchase Price
attributable to the shares of Common Stock or DSW Stock, as the case may be, to
be issued upon such exercise, in which case such excess amount shall be deemed
to have been paid to the Company and the number of shares issuable upon such
exercise shall be reduced by such number specified for cancellation, or (iii) by
surrender to the Company for cancellation certificates representing shares of
Common Stock or transfer to the Company certificates representing shares of DSW
Stock owned by the Holder (properly endorsed for transfer in blank) having a
Current Market Price on the date of Warrant exercise equal to the Aggregate
Purchase Price.

            (c) Upon the consummation of a Spin-Off and the satisfaction of the
Company's obligations to make the distribution to the Holder required by Section
3.3(b), this Warrant shall no longer be exercisable for shares of DSW Stock and
the Holder shall not be entitled to the pro rata share of the dividend or
distribution pursuant to Section 3.3(a) in respect of such Spin-Off and
distribution; provided, however, that this Warrant shall continue to be
exercisable for shares of Common Stock without any adjustment to the Common
Stock Purchase Price or Common Stock Exercise Amount as a result of such
Spin-Off and distribution to the holders of the Term Loan Warrants and
Conversion Warrants.

            (d) Notwithstanding anything herein to the contrary, the Holder
agrees that this Warrant shall not be exercisable for shares of DSW Stock from
and after the record date for a Spin-Off (as set forth in the notice provided to
the Holder pursuant to Section 8 hereof) until the earliest to occur of (i) the
abandonment of the Spin-Off, (ii) the date that is 60 days after the record date
for such Spin-Off and (iii) two Business Days prior to the Expiration Date of
this Warrant.

            2.2. When Exercise Effective. Each exercise of this Warrant shall be
deemed to have been effected immediately prior to the close of business on the
Business Day in the case of Common Stock and on the next succeeding Business Day
in the case of DSW Stock on which this Warrant shall have been surrendered to,
and the Purchase Price shall have been received by, the Company as provided in
Section 2.1, and, to the extent permitted by law, at such time the Person or
Persons in whose name or names any certificate or certificates for shares of
Common Stock (or Other Securities of the Company) in the case of an exercise of
this Warrant for Common Stock shall be issuable upon such exercise as provided
in Section 2.3 shall be deemed to have become the holder or holders of record
thereof for all purposes.

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            2.3. Delivery of Stock Certificates, etc.; Charges, Taxes and
Expenses. (a) As soon as practicable after each exercise of this Warrant, in
whole or in part, and in any event within two Business Days thereafter in the
case of Common Stock and within three Business Days in the case of DSW Stock,
the Company shall cause to be issued, in the case of Common Stock, and shall use
reasonable best efforts to cause to be transferred, in the case of DSW Stock, in
the name of and delivered to the Holder hereof or, subject to Section 10, as the
Holder may direct,

            (i) a certificate or certificates for the number and type of Warrant
      Shares (or Other Securities) to which the Holder shall be entitled upon
      such exercise, and any cash payment in lieu of any fractional shares, as
      provided in Section 12.5 hereof, and

            (ii) in case such exercise is for less than all of the Warrant
      Shares purchasable under this Warrant, a new Warrant or Warrants of like
      tenor, for the balance of the Warrant Shares purchasable hereunder.

            (b) Issuance of certificates for Warrant Shares upon the exercise of
this Warrant shall be made without charge to the Holder hereof for any issue or
transfer tax or other incidental expense, in respect of the issuance or transfer
of such certificates, all of which such taxes and expenses shall be paid by the
Company; provided, however, that the Company shall not be required to pay any
tax that may be payable in respect of any issuance of any Warrant or any
certificate for, or any other evidence of ownership of, Warrant Shares in a name
other than that of the Holder of this Warrant being exercised or exchanged.

            (c) Upon delivery of notice of exercise of this Warrant for shares
of DSW Stock, the Company shall promptly effect the exchange of a sufficient
number of Class B Shares for Class A Shares so as to permit the transfer of
Class A Shares to the Holder in the manner and time periods provided in
paragraph (a) of this Section 2.3.

            2.4. Tax Basis. The Company and the Holder shall mutually agree as
to the tax basis of this Warrant for purposes of the Internal Revenue Code of
1986, as amended, and the treatment of this Warrant under such Code by each of
the Company and the Holder shall be consistent with such agreement.

            [2.5. Limitations on Exercises; Beneficial Ownership. The Company
shall not effect the exercise of this Warrant, and the Holder shall not have the
right to exercise this Warrant, to the extent that after giving effect to such
exercise, such Holder (together with such Holder's affiliates) would
beneficially own in excess of 9.99% of the shares of Common Stock or 9.99% of
the shares of DSW Stock outstanding immediately after giving effect to such
exercise. For purposes of the foregoing sentence, the aggregate number of shares
of Common Stock or DSW Stock, as the case may be, beneficially owned by such
Person and its affiliates shall include the number of such shares of Common
Stock or DSW Stock, as applicable, issuable upon exercise of this Warrant with
respect to which the determination of such sentence is being made, but shall
exclude such shares of Common Stock or DSW Stock, as applicable, which would be
issuable upon (i) exercise of the remaining, unexercised portion of this Warrant
beneficially owned by such Person and its affiliates and (ii) exercise or
conversion of the unexercised or unconverted portion of any other securities of
the Company or DSW beneficially owned by such

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Person and its affiliates (including, without limitation, any convertible notes
or convertible preferred stock or warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained herein. Except as
set forth in the preceding sentence, for purposes of this paragraph, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended. For purposes of this Warrant, in determining
the number of outstanding shares of Common Stock, the Holder may rely on the
number of outstanding shares of Common Stock as reflected in the most recent of
the following: (1) the Company's most recent Form 10-K, Form 10-Q, Current
Report on Form 8-K or other public filing with the Securities and Exchange
Commission, as the case may be, (2) a more recent public announcement by the
Company or (3) any other notice by the Company or the Transfer Agent setting
forth the number of shares of Common Stock outstanding. For purposes of this
Warrant, in determining the number of outstanding shares of DSW Stock, the
Holder may rely on the number of outstanding shares of DSW Stock as reflected in
the most recent of the following: (1) DSW's most recent Form 10-K, Form 10-Q,
Current Report on Form 8-K or other public filing with the Securities and
Exchange Commission, as the case may be, (2) a more recent public announcement
by DSW or (3) any other notice by the DSW or its transfer agent setting forth
the number of shares of DSW Stock outstanding. For any reason at any time, upon
the written or oral request of the Holder, the Company shall within one Business
Day confirm orally and in writing to the Holder the number of shares of Common
Stock then outstanding or similarly use its reasonable best efforts to cause DSW
to confirm the number of shares of DSW Stock then outstanding. In any case, the
number of outstanding shares of Common Stock or DSW Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company
or DSW, as the case may be, including the Conversion Warrants, by the Holder and
its affiliates since the date as of which such number of outstanding shares of
Common Stock or DSW Stock was reported. ] [For Cerberus Warrant only.]

            3. ADJUSTMENT OF PURCHASE PRICE AND WARRANT SHARES ISSUABLE UPON
EXERCISE.

            3.1. Adjustment of Number of Shares.

            (a) Upon each adjustment of the Common Stock Purchase Price or the
DSW Stock Purchase Price as a result of the calculations made in this Section 3,
this Warrant shall thereafter evidence the right to receive, at the adjusted
Purchase Price, that number of shares of Common Stock or DSW Stock, as the case
may be, (calculated to the nearest one-hundredth) obtained by dividing (i) the
product of the aggregate number of such shares covered by this Warrant
immediately prior to such adjustment and the applicable Purchase Price in effect
immediately prior to such adjustment of the Purchase Price by (ii) the
applicable Purchase Price in effect immediately after such adjustment of the
Purchase Price. For the avoidance of doubt, adjustments to the Common Stock
Purchase Price shall result in an adjustment only in the number of shares of
Common Stock issuable hereunder and an adjustment to the DSW Stock Purchase
Price shall result in an adjustment only in the number of shares of DSW Stock
issuable hereunder.

            (b) In the event that, prior to the exercise in full of this
Warrant, the Company issues any shares of Common Stock upon the conversion of
Convertible Securities outstanding as of the Original Issuance Date (including,
without limitation, upon exercise of the Conversion

                                       11
<PAGE>
Warrants) (a "Conversion"), the number of shares of Common Stock issuable upon
the exercise of this Warrant (whether or not this Warrant has been partially
exercised) shall be automatically increased by the number of shares equal to
4.375% of the shares of Common Stock issued upon such Conversion, and the
Purchase Price shall not be adjusted in connection with such increase. Any
adjustments made to the Purchase Price or the number of shares of Common Shares
issuable upon exercise of the Warrant prior to such Conversion shall be made as
if the Warrant were initially exercisable for such increased number of shares.
Upon each such Conversion, the Company shall promptly deliver to the Holder the
report required by Section 7 hereof. For the avoidance of doubt, this section
3.1(b) shall only apply to exercise of this Warrant for Common Stock and a
corresponding increase shall not be made with respect to DSW Stock.

            3.2. Adjustment of Purchase Price for New Issuances.

            (a) Issuance of Additional Shares. If at any time or from time to
time after the date hereof, the Company shall issue or sell Additional Shares of
Common Stock or, DSW shall issue Additional Shares of DSW Stock (including, in
each case, Additional Shares of Common Stock or Additional Shares of DSW Stock,
as applicable, deemed to be issued pursuant to Section 3.2(b) and excluding
shares issued pursuant to Section 3.3 and 3.4) without consideration or for a
consideration per share less than the applicable Purchase Price in effect
immediately prior to such issue or sale (the "New Issuance Price"), then, and in
each such case, subject to Section 3.8, in the case of an issuance of Additional
Shares of Common Stock the Common Stock Purchase Price or, in the case of an
issuance of Additional Shares of DSW Stock, the DSW Stock Purchase Price, shall
be reduced concurrently with such issue or sale, to the applicable New Issuance
Price. For the avoidance of doubt, issuances of Additional Shares of Common
Stock shall result in an adjustment only to the Common Stock Purchase Price and
issuances of Additional Shares of DSW Stock shall result in an adjustment only
to the DSW Stock Purchase Price.

            (b) Treatment of Options and Convertible Securities. Shares of
Additional Shares of Common Stock or Additional Shares of DSW Stock shall be
deemed issued if the Company or DSW, as applicable, at any time or from time to
time after the date hereof shall issue, sell, grant or assume, or shall fix a
record date for the determination of holders of any class of securities of the
Company or DSW, as the case may be, entitled to receive, any Options or
Convertible Securities (whether or not the rights thereunder are immediately
exercisable) for a consideration per share (determined pursuant to Section 3.6)
that is less than, in the case of Additional Shares of Common Stock, the Common
Stock Purchase Price or, in the case of Additional Shares of DSW Stock, the DSW
Stock Purchase Price, in effect on the date of and immediately prior to such
issue, sale, grant or assumption or immediately prior to the close of business
on such record date (or, if the Common Stock or DSW Stock, as applicable, trades
on an ex-dividend basis, on the date prior to the commencement of ex-dividend
trading). Such issuance shall be deemed to occur (i) as of the time of such
issue, sale, grant or assumption of the Convertible Securities or Options or
(ii) in case such a record date shall have been fixed, as of the close of
business on such record date (or, if the Common Stock or DSW Stock, as
applicable, trades on an ex-dividend basis, on the date prior to the
commencement of ex-dividend trading). No further adjustment of the Purchase
Price shall be made upon the subsequent issuance of

                                       12
<PAGE>
shares of Common Stock or DSW Stock, as the case may be, upon the exercise of
such Options or the conversion or exchange of such Convertible Securities.

            (c) In addition, for the avoidance of doubt, after the consummation
of a Spin-Off and satisfaction of the Company's obligations to make the
distribution to the Holder required by Section 3.3(b), no adjustment shall be
made pursuant to this Section 3.2 as a result of an issuance by DSW of
Additional Shares of DSW Stock.

            3.3. Extraordinary Dividends and Distributions; Payment of Dividend
in Case of Spin-Off.

            (a) Subject to Section 3.3(b), if the Company or DSW at any time or
from time to time after the date hereof shall declare, order, pay or make a
dividend or other distribution (including, without limitation, any distribution
of other or additional stock or other securities or property or Options by way
of dividend or spin-off, reclassification, recapitalization or similar corporate
rearrangement) on, in the case of the Company, the Common Stock or, in the case
of DSW, the DSW Stock, other than (a) a dividend payable in shares of Common
Stock or, in the case of DSW, DSW Stock, subject to Section 3.4, or (b) a
regularly scheduled cash dividend payable out of consolidated earnings or earned
surplus, determined in accordance with generally accepted accounting principles
or (c) a deemed issuance of Additional Shares of Common Stock or Additional
Shares of DSW Stock pursuant to Section 3.2(b), in each such case, subject to
Section 3.8, adequate provision shall be made so that the Holder shall receive,
upon Warrant exercise for such type of Warrant Shares, a pro rata share of such
dividend or other distribution based upon the maximum number of shares of Common
Stock or DSW Stock, as applicable, at the time issuable to the Holder
(determined without regard to whether the Warrant is exercisable at such time).
For the avoidance of doubt, subject to Section 3.3(b), dividends and
distributions pursuant to this Section 3.3(a) with respect to DSW Stock shall
only be receivable upon exercise by a Holder of this Warrant for DSW Stock (and
only with respect to the number of shares of DSW Stock for which this Warrant is
exercised) and dividends and distributions with respect to Common Stock shall
only be receivable upon exercise by a Holder of this Warrant for Common Stock
(and only with respect to the number of shares of Common Stock for which this
Warrant is exercised). In addition, for the avoidance of doubt, after the
consummation of a Spin-Off and satisfaction of the Company's obligations to make
the distribution to the Holder required by Section 3.3(b), no adjustment shall
be made pursuant to this Section 3.3(a) as a result of an issuance by DSW of
Additional Shares of DSW Stock.

            (b) Notwithstanding anything in this Warrant to the contrary, if the
Company shall make any distribution of all shares of DSW Stock owned by it to
its shareholders (a "Spin-Off"), then the Holder of this Warrant shall receive,
and the Company shall deliver to the Holder, upon consummation of the Spin-Off,
that number of shares of DSW Stock which the Holder would have received in such
Spin-Off had the Holder exercised this Warrant, immediately prior to the record
date for such Spin-Off, for the greatest number of shares of Common Stock for
which this Warrant was then exercisable but only with respect to the portion of
the Warrant that remains unexercised on the date of such distribution [For
Cerberus Warrant only: without regard to any limit on exercisability set forth
in Section 2.5 or otherwise in this Warrant or any comparable provision in the
Conversion Warrants]. Such shares of DSW Stock shall be distributed to the
Holder without payment therefor by the Holder to the Company and without

                                       13
<PAGE>
any action of any kind required by the Holder to the Company. Upon the
consummation of a Spin-Off and receipt by the Holder of the DSW Stock as
provided for in this Section 3.3(b), this Warrant shall no longer be exercisable
for shares of DSW Stock and shall only be exercisable for Common Stock in
accordance with Section 2.1(c). The Holder shall be entitled to at least 90
days' prior written notice of the record date for any Spin-Off.

            3.4. Treatment of Stock Dividends, Stock Splits, etc. In case the
Company or DSW at any time or from time to time after the date hereof, shall
declare or pay any dividend on, in the case of the Company, the Common Stock
payable in Common Stock or, in the case of DSW, the DSW Stock payable in DSW
Stock, or shall effect a subdivision of the outstanding shares, in the case of
the Company, of Common Stock or, in the case of DSW, of DSW Stock, into a
greater number of such shares (by reclassification or otherwise than by payment
of a dividend in Common Stock or DSW Stock), then, and in each such case, the
number of shares of Common Stock or DSW Stock, as the case may be, obtainable
upon exercise of this Warrant shall be proportionately increased and the
applicable Purchase Price shall be proportionately decreased. In case the
Company or DSW at any time or from time to time after the date hereof, shall
effect any combination or consolidation of the outstanding shares of, in the
case of the Company, Common Stock or, in the case of DSW, DSW Stock, into a
lesser number of such shares, then, and in each such case, the number of shares
of Common Stock or DSW Stock, as the case may be, obtainable upon exercise of
this Warrant shall be proportionately decreased and the applicable Purchase
Price shall be proportionately increased. Any adjustment made under this Section
shall become effective (a) in the case of any such dividend, immediately after
the close of business on the record date for the determination of holders of any
class of securities entitled to receive such dividend, or (b) in the case of any
such subdivision, at the close of business on the day immediately prior to the
day upon which such corporate action becomes effective. For the avoidance of
doubt, after the consummation of a Spin-Off and satisfaction of the Company's
obligations to make the distribution to the Holder required by Section 3.3(b) no
adjustment shall be made pursuant to this Section 3.4 for any dividend or
subdivision or consolidation or combination that is effected by DSW.

            3.5. Adjustment of Purchase Price for Other Issuances.

            (a) Issuance of Additional Shares. If at any time or from time to
time after the date hereof, the Company shall issue or sell Additional Shares of
Common Stock or DSW shall issue or sell Additional Shares of DSW Stock,
(including Additional Shares of Common Stock or Additional Shares of DSW Stock,
as the case may be, deemed to be issued pursuant to Section 3.5(b)) for a
consideration per share less than the Current Market Price thereof but greater
than the applicable Purchase Price in effect immediately prior to such issue or
sale, then, and in each such case, subject to Section 3.8, the applicable
Purchase Price shall be reduced concurrently with such issue or sale, to a price
(calculated to the nearest .01 of a cent) determined by multiplying such
applicable Purchase Price by a fraction

            (x) The numerator of which shall be the sum of (i) the number of
shares of, in the case of the issuance of Additional Shares of Common Stock,
Common Stock or, in the case of an issuance of Additional Shares of DSW Stock,
DSW Stock, outstanding immediately prior to such issue or sale and (ii) the
number of shares of, in the case of the issuance of Additional Shares of Common
Stock, Common Stock or, in the case of an issuance

                                       14
<PAGE>
of Additional Shares of DSW Stock, DSW Stock, which the aggregate consideration
received by the Company or DSW, as applicable, for the total number of such
Additional Shares of Common Stock or Additional Shares of DSW Stock, as the case
may be, so issued or sold would purchase at the Current Market Price thereof,
and

               (y) The denominator of which shall be the number of shares of, in
the case of the issuance of Additional Shares of Common Stock, Common Stock, or,
in the case of an issuance of Additional Shares of DSW Stock, of DSW Stock,
outstanding immediately after such issue or sale, provided that, for the
purposes of this Section 3.5, (x) immediately after any Additional Shares of
Common Stock or Additional Shares of DSW Stock are deemed to have been issued
pursuant to Section 3.5(b), such additional shares shall be deemed to be
outstanding, and (y) treasury shares shall not be deemed to be outstanding.

            (b) Treatment of Options and Convertible Securities. In case the
Company or DSW at any time or from time to time after the date hereof, shall
issue, sell, grant or assume, or shall fix a record date for the determination
of holders of any class of securities of the Company or DSW, as the case may be,
entitled to receive, any Options or Convertible Securities (other than those
excluded from the definition of Additional Shares of Common Stock or the
definition of Additional Shares of DSW Stock) (whether or not the rights
thereunder are immediately exercisable) and the consideration per share
(determined pursuant to Section 3.6) of the shares issuable upon the exercise of
such Options or, in the case of Convertible Securities and the Options therefor,
the conversion or exchange of such Convertible Securities would be less than the
Current Market Price thereof but greater than the applicable Purchase Price in
effect on the date of and immediately prior to such issue, sale, grant or
assumption or immediately prior to the close of business on such record date
(or, if the Common Stock or DSW Stock, as applicable, trades on an ex-dividend
basis, on the date prior to the commencement of ex-dividend trading), then, and
in each such case, the maximum number of Additional Shares of Common Stock or
Additional Shares of DSW Stock (as set forth in the instrument relating thereto,
without regard to any provisions contained therein for a subsequent adjustment
of such number) issuable upon the exercise of such Options or, in the case of
Convertible Securities and Options therefor, the conversion or exchange of such
Convertible Securities, shall be deemed to be Additional Shares of Common Stock
or Additional Shares of DSW Stock, as the case may be, issued for the purposes
of Section 3.5 as of the time of such issue, sale, grant or assumption or, in
case such a record date shall have been fixed, as of the close of business on
such record date (or, if the Common Stock or DSW Stock, as applicable, trades on
an ex-dividend basis, on the date prior to the commencement of ex-dividend
trading, provided, that in any such case in which Additional Shares of Common
Stock or Additional Shares of DSW Stock are deemed to be issued:

            (i) whether or not the Additional Shares of Common Stock or
      Additional Shares of DSW Stock underlying such Options or Convertible
      Securities are deemed to be issued, no further adjustment of the
      applicable Purchase Price shall be made upon the subsequent issue or sale
      of Convertible Securities or shares of Common Stock or DSW Stock upon the
      exercise of such Options or the conversion or exchange of such Convertible
      Securities, except in the case of any such Options or Convertible
      Securities which contain provisions requiring an adjustment, subsequent to
      the date of the issue or sale thereof, of the number of Additional Shares
      of Common Stock or Additional Shares of DSW Stock as

                                       15
<PAGE>
      issuable upon the exercise of such Options or the conversion or exchange
      of such Convertible Securities by reason of (x) a change of control of the
      Company or DSW, (y) the acquisition by any Person or group of Persons of
      any specified number or percentage of the voting securities of the Company
      or (z) any similar event or occurrence, each such case to be deemed
      hereunder to involve a separate issuance of Additional Shares of Common
      Stock, Additional Shares of DSW Stock, Options or Convertible Securities,
      as the case may be;

            (ii) if such Options or Convertible Securities by their terms
      provide, with the passage of time or otherwise, for any increase in the
      consideration payable to the Company or DSW, or decrease in the number of
      Additional Shares of Common Stock or Additional Shares of DSW Stock
      issuable, upon the exercise, conversion or exchange thereof (by change of
      rate or otherwise), the Purchase Price computed upon the original issue,
      sale, grant or assumption thereof (or upon the occurrence of the record
      date, or date prior to the commencement of ex-dividend trading, as the
      case may be, with respect thereto), and any subsequent adjustments based
      thereon, shall, upon any such increase or decrease becoming effective, be
      recomputed to reflect such increase or decrease insofar as it affects such
      Options, or the rights of conversion or exchange under such Convertible
      Securities, which are outstanding at such time;

            (iii)upon the expiration (or purchase by the Company or DSW, as the
      case may be, and cancellation or retirement) of any such Options which
      shall not have been exercised or the expiration of any rights of
      conversion or exchange under any such Convertible Securities which (or
      purchase by the Company or DSW, as applicable, and cancellation or
      retirement of any such Convertible Securities the rights of conversion or
      exchange under which) shall not have been exercised, the applicable
      Purchase Price computed upon the original issue, sale, grant or assumption
      thereof (or upon the occurrence of the record date, or date prior to the
      commencement of ex-dividend trading, as the case may be, with respect
      thereto), and any subsequent adjustments based thereon, shall, upon such
      expiration (or such cancellation or retirement, as the case may be), be
      recomputed as if:

                  (x) in the case of Options for Common Stock or DSW Stock, or
            Convertible Securities, the only Additional Shares of Common Stock
            or Additional Shares of DSW Stock, issued or sold were the
            Additional Shares of Common Stock or Additional Shares of DSW Stock,
            if any, actually issued or sold upon the exercise of such Options or
            the conversion or exchange of such Convertible Securities and the
            consideration received therefor was the consideration actually
            received by the Company or DSW, as the case may be, for the issue,
            sale, grant or assumption of all such Options, whether or not
            exercised, plus the consideration actually received by the Company
            or DSW, as the case may be, upon such exercise, or for the issue or
            sale of all such Convertible Securities which were actually
            converted or exchanged, plus the additional consideration, if any,
            actually received by the Company or DSW, as the case may be, upon
            such conversion or exchange, and

                                       16
<PAGE>
                  (y) in the case of Options for Convertible Securities, only
            the Convertible Securities, if any, actually issued or sold upon the
            exercise of such Options were issued at the time of the issue or
            sale, grant or assumption of such Options, and the consideration
            received by the Company or DSW, as the case may be, for the
            Additional Shares of Common Stock or Additional Shares of DSW Stock,
            deemed to have then been issued was the consideration actually
            received by the Company or DSW, as the case may be, for the issue,
            sale, grant or assumption of all such Options, whether or not
            exercised, plus the consideration deemed to have been received by
            the Company or DSW, as the case may be, (pursuant to Section 3.6)
            upon the issue or sale of such Convertible Securities with respect
            to which such Options were actually exercised; and

            (iv) no readjustment pursuant to subdivision (ii) or (iii) above
      shall have the effect of decreasing the applicable Purchase Price by an
      amount in excess of the amount of the adjustment thereof originally made
      in respect of the issue, sale, grant or assumption of such Options or
      Convertible Securities.

            (c) For the avoidance of doubt, after the consummation of a Spin-Off
and satisfaction of the Company's obligations to make the distribution required
by Section 3.3(b), no adjustment shall be made pursuant to this Section 3.5 as a
result of any issuance by DSW of Additional Shares of DSW Stock.

            3.6. Computation of Consideration. For the purposes of this Section
3,

            (a) the consideration for the issue or sale of any Additional Shares
of Common Stock or Additional Shares of DSW Stock shall, irrespective of the
accounting treatment of such consideration,

                  (i) insofar as it consists of cash, be computed at the gross
      cash proceeds to the Company or DSW, as the case may be, without deducting
      any expenses paid or incurred by such company, or any commissions or
      compensations paid or concessions or discounts allowed to underwriters,
      dealers or others performing similar services in connection with such
      issue or sale,

                  (ii) insofar as it consists of property (including securities)
      other than cash, be computed at the Fair Value thereof at the time of such
      issue or sale, and

                  (iii)in case Additional Shares of Common Stock or Additional
      Shares of DSW Stock are issued or sold together with other stock or
      securities or other assets of the Company or DSW, as the case may be, for
      a consideration which covers both, be the portion of such consideration so
      received, computed as provided in clauses (i) and (ii) above, allocable to
      such Additional Shares of Common Stock or Additional Shares of DSW Stock,
      such allocation to be determined in the same manner that the Fair Value of
      property not consisting of cash or securities is to be determined as
      provided in the definition of "Fair Value" herein; and

                                       17
<PAGE>
            (b) Additional Shares of Common Stock or Additional Shares of DSW
Stock deemed to have been issued pursuant to Sections 3.2(b) and 3.5(b),
relating to Options and Convertible Securities, shall be deemed to have been
issued for a consideration per share determined by dividing

                  (i) the total amount, if any, received and receivable by the
      Company or DSW, as applicable, as consideration for the issue, sale, grant
      or assumption of the Options or Convertible Securities in question, plus
      the minimum aggregate amount of additional consideration (as set forth in
      the instruments relating thereto, without regard to any provision
      contained therein for a subsequent adjustment of such consideration to
      protect against dilution) payable to the Company or DSW, as the case may
      be, upon the exercise in full of such Options or the conversion or
      exchange of such Convertible Securities or, in the case of Options for
      Convertible Securities, the exercise of such Options for Convertible
      Securities and the conversion or exchange of such Convertible Securities,
      in each case computing such consideration as provided in the foregoing
      subclause (a),

      by

                  (ii) the maximum number of shares of Common Stock or DSW
      Stock, as applicable, (as set forth in the instruments relating thereto,
      without regard to any provision contained therein for a subsequent
      adjustment of such number to protect against dilution) issuable upon the
      exercise of such Options or the conversion or exchange of such Convertible
      Securities.

            3.7. Dilution in Case of Other Securities. In case any Other
Securities shall be issued or sold or shall become subject to issue or sale upon
the conversion or exchange of any stock (or Other Securities) of the Company or
DSW (or any issuer of Other Securities or any other Person referred to in
Section 4) or to subscription, purchase or other acquisition pursuant to any
Options issued or granted by the Company or DSW (or any such other issuer or
Person) for a consideration such as to dilute, on a basis consistent with the
standards established in the other provisions of this Section 3, the purchase
rights, if any, with respect to such Other Securities, granted by this Warrant,
then, and in each such case, the computations, adjustments and readjustments
provided for in this Section 3 with respect to the applicable Purchase Price
shall be made as nearly as possible in the manner so provided and applied to
determine the amount of Other Securities from time to time receivable upon the
exercise of the Warrants, so as to protect the holders of the Warrants against
the effect of such dilution.

            3.8. De Minimis Adjustments. If the amount of any adjustment of the
Purchase Price required pursuant to Section 3.5 would be less than one tenth
(1/10) of one percent (1%) of such Purchase Price in effect at the time such
adjustment is otherwise so required to be made, such amount shall be carried
forward and adjustment with respect thereto made at the time of and together
with any subsequent adjustment which, together with such amount and any other
amount or amounts so carried forward, shall aggregate a change in such Purchase
Price of at least one tenth (1/10) of one percent (1%) of such Purchase Price.
All calculations under this Warrant shall be made to the nearest one-hundredth
of a share.

                                       18
<PAGE>
            3.9. Abandoned Dividend or Distribution. If the Company shall take a
record of the holders of Common Stock or, if DSW shall take a record of the
holders of DSW Stock for the purpose of entitling them to receive a dividend or
other distribution (which results in an adjustment to the applicable Purchase
Price under the terms of this Warrant) and shall, thereafter, and before such
dividend or distribution is paid or delivered to shareholders entitled thereto,
legally abandon its plan to pay or deliver such dividend or distribution, then
any adjustment made to the applicable Purchase Price by reason of the taking of
such record shall be reversed, and any subsequent adjustments, based thereon,
shall be recomputed; provided, however, that no additional Purchase Price or any
other adjustment shall be required with regard to Warrant Shares that have been
issued upon exercise of the Warrant prior to such abandonment.

            3.10. Ownership of DSW Stock. The Company shall at all times while
this Warrant is outstanding, but only prior to the consummation of a Spin-Off
and satisfaction of the Company's obligations pursuant to Section 3.3(b), retain
ownership of at least that number of shares of DSW Stock sufficient to permit
exercise in full of this Warrant and any other outstanding Conversion Warrants
and Term Loan Warrants for shares of DSW Stock [For Cerberus Warrant only:
without regard to any limit on exercisability set forth in Section 2.5 or
otherwise in this Warrant or any comparable provision in the Conversion
Warrants]. The Company shall take all actions necessary such that the shares of
DSW Stock required hereby to be owned by it shall remain free of all Liens,
other than Permitted Liens.

            4. CONSOLIDATION, MERGER, ETC.

            4.1. By the Company. In case the Company after the date hereof (a)
shall consolidate with or merge into any other Person and shall not be the
continuing or surviving corporation of such consolidation or merger, or (b)
shall permit any other Person to consolidate with or merge into the Company and
the Company shall be the continuing or surviving Person but, in connection with
such consolidation or merger, the Common Stock or Other Securities of the
Company shall be changed into or exchanged for stock or other securities of any
other Person or cash or any other property, or (c) shall transfer all or
substantially all of its properties or assets to any other Person, or (d) shall
effect a capital reorganization or reclassification of the Common Stock or Other
Securities of the Company (other than a capital reorganization or
reclassification for which adjustment in the Purchase Price and the number of
shares of Common Stock obtainable upon exercise of this Warrant is provided in
Section 3.4), then, and in the case of each such transaction, proper provision
shall be made so that, upon the basis and the terms and in the manner provided
in this Warrant, the Holder of this Warrant, upon the exercise hereof for Common
Stock at any time after the consummation of such transaction, shall be entitled
to receive (at the aggregate Common Stock Purchase Price in effect at the time
of such consummation for all Common Stock or Other Securities issuable upon such
exercise immediately prior to such consummation), in lieu of the Common Stock or
Other Securities issuable upon such exercise prior to such consummation, the
highest amount of securities, cash or other property to which such Holder would
actually have been entitled as a shareholder upon such consummation if such
Holder had exercised this Warrant for Common Stock immediately prior thereto,
subject to adjustments (subsequent to such consummation) as nearly equivalent as
possible to the adjustments provided for in Sections 3 through 5, provided that
if a purchase, tender or exchange offer shall have been made to and accepted by
the holders of more than 50%

                                       19
<PAGE>
of the outstanding shares of Common Stock, and if the Holder so designates in a
notice given to the Company on or before the date immediately preceding the date
of the consummation of such transaction, the Holder of this Warrant shall be
entitled to receive the highest amount of securities, cash or other property to
which it would actually have been entitled as a shareholder if the Holder of
this Warrant had exercised this Warrant, including the payment of the Purchase
Price in accordance with Section 2.1(b) hereof, prior to the expiration of such
purchase, tender or exchange offer and accepted such offer, subject to
adjustments (from and after the consummation of such purchase, tender or
exchange offer) as nearly equivalent as possible to the adjustments provided for
in Section 3 through 5.

            4.2. By DSW. In case DSW after the date hereof, but prior to the
consummation of a Spin-Off and satisfaction of the Company's obligations
pursuant to Section 3.3(b), (a) shall consolidate with or merge into any other
Person and shall not be the continuing or surviving corporation of such
consolidation or merger, or (b) shall permit any other Person to consolidate
with or merge into DSW and DSW shall be the continuing or surviving Person but,
in connection with such consolidation or merger, the DSW Stock or Other
Securities of DSW shall be changed into or exchanged for stock or other
securities of any other Person or cash or any other property, or (c) shall
transfer all or substantially all of its properties or assets to any other
Person, or (d) shall effect a capital reorganization or reclassification of the
DSW Stock or Other Securities of DSW (other than a capital reorganization or
reclassification for which adjustment in the Purchase Price and the number of
shares of DSW Stock obtainable upon exercise of this Warrant is provided in
Section 3.4), then, the Holder of this Warrant, upon the exercise hereof for DSW
Stock at any time after the consummation of such transaction, shall be entitled
to receive (at the aggregate DSW Stock Purchase Price in effect at the time of
such consummation for all DSW Stock or Other Securities issuable upon such
exercise immediately prior to such consummation), in lieu of the DSW Stock or
Other Securities issuable upon such exercise prior to such consummation, the
highest amount of securities, cash or other property to which such Holder would
actually have been entitled as a shareholder upon such consummation if such
Holder had exercised this Warrant for DSW Stock immediately prior thereto,
subject to adjustments (subsequent to such consummation) as nearly equivalent as
possible to the adjustments provided for in Sections 3 through 5.

            4.3. Assumption of Obligations. Notwithstanding anything contained
in this Warrant or in the Financing Agreement to the contrary, the Company shall
not effect, and, prior to the consummation of a Spin-Off and satisfaction of the
Company's obligations pursuant to Section 3.3(b), shall not consent to the
effecting by DSW of, any of the transactions described in clauses (a) through
(d) of Section 4.1 and Section 4.2, respectively, unless, prior to the
consummation thereof, each Person (other than the Company or DSW (as the case
may be)), which may be required to deliver any stock, securities, cash or
property upon the exercise of this Warrant as provided herein shall assume, by
written instrument delivered to, and reasonably satisfactory to, the Holder of
this Warrant, (a) the obligations of the Company under this Warrant (and if the
Company shall survive the consummation of such transaction, such assumption
shall be in addition to, and shall not release the Company from, any continuing
obligations of the Company, under this Warrant), (b) the obligations of the
Company under the Registration Rights Agreement or the obligations of DSW under
the DSW Registration Rights Agreement, and (c) the obligation of the Company to
deliver to the Holder such shares of stock, securities, cash

                                       20
<PAGE>
or property as, in accordance with the foregoing provisions of this Section 4,
the Holder may be entitled to receive. Unless expressly stated herein, nothing
in this Section 4 shall be deemed to authorize the Company to enter into, or to
consent to the entering by DSW into, any transaction.

            5. OTHER DILUTIVE EVENTS. In case any event shall occur as to which
the provisions of Section 3 or Section 4 hereof are not strictly applicable or
if strictly applicable would not fairly protect the purchase rights of the
Holder in accordance with the essential intent and principles of such Sections,
then in each such case, the Board of Directors of the Company shall make an
adjustment in the application of such provisions, in accordance with such
essential intent and principles, so as to preserve, without dilution, the
purchase rights represented by this Warrant.

            6. NO DILUTION OR IMPAIRMENT. The Company shall not, (i) by
amendment of its articles of incorporation or through any consolidation, merger,
reorganization, transfer of assets, dissolution, issue or sale of securities or
any other voluntary action, or (ii) prior to the consummation of a Spin-Off and
satisfaction of the Company's obligations pursuant to Section 3.3(b), by consent
to or approval of any amendment of DSW's articles of incorporation or any
consolidation, merger, reorganization, transfer of assets, dissolution, issue or
sale of securities or any other voluntary action by DSW, avoid or seek to avoid
the observance or performance of any of the terms of this Warrant, but will at
all times in good faith assist in the carrying out of all such terms and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of the Holder of this Warrant against dilution or other impairment.
Without limiting the generality of the foregoing, the Company (a) shall not
permit the par value of any shares of stock receivable upon the exercise of this
Warrant to exceed the amount payable therefor upon such exercise, (b) shall take
all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable shares of stock, in the
case of Common Stock, or transfer shares of DSW Stock, in the case of DSW Stock,
free from all liens, security interests, encumbrances (in each of the foregoing
cases, other than those imposed by the Holder), taxes, preemptive rights and
charges on the exercise of the Warrants from time to time outstanding, and (c)
shall not take any action, or consent to the taking or approval of any action by
DSW, which results in any adjustment of the Purchase Price if the total number
of Warrant Shares issuable after the action upon the exercise of all of the
Warrants would exceed the total number of shares of Common Stock then authorized
by the Company's articles of organization, or, in the case of shares of DSW
Stock, the number of shares of DSW Stock owned by the Company and available for
the purpose of issue upon such exercise.

            7. ACCOUNTANTS' REPORT. In each case of any adjustment or
readjustment in the number of the Warrant Shares issuable upon the exercise of
this Warrant or in the applicable Purchase Price, including, without limitation,
pursuant to Section 3.1, 3.2, 3.4 or 3.5, the Company at its sole expense shall
promptly (after becoming aware of an adjustment with respect to the DSW Stock)
compute such adjustment or readjustment in accordance with the terms of this
Warrant and prepare a report setting forth such adjustment or readjustment and
showing in reasonable detail the method of calculation thereof and the facts
upon which such adjustment or readjustment is based, including a statement of
(a) the consideration received or to be received by the Company for any
Additional Shares of Common Stock or by DSW for any Additional Shares of DSW
Stock issued or sold or deemed to have been issued under Section 3,

                                       21
<PAGE>
(b) the number of shares of Common Stock or DSW Stock outstanding or deemed to
be outstanding, and (c) the applicable Purchase PRICE in effect immediately
prior to such issue or sale and as adjusted and readjusted (if required by
Section 3) on account thereof. The Company shall forthwith mail a copy of each
such report to the Holder. In the event that the Holder disagrees with such
report, the Company shall cause independent certified public accountants of
recognized national standing (which may be the regular auditors of the Company)
selected by the Company to review and verify or revise such computation (other
than any computation of the Fair Value of property) and report. The Company
shall also keep copies of all such reports at its principal office and shall
cause the same to be available for inspection at such office during normal
business hours by the Holder.

            8. NOTICES OF CORPORATE ACTION. In the event of:

            (a) any taking by the Company or, prior to the consummation of a
Spin-Off and satisfaction of the Company's obligations pursuant to Section
3.3(b), DSW, of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any
dividend or other distribution, or any right to subscribe for, purchase or
otherwise acquire any shares of stock of any class or any other securities or
property, or to receive any other right, or

            (b) any capital reorganization of the Company or, prior to the
consummation of a Spin-Off and satisfaction of the Company's obligations
pursuant to Section 3.3(b), DSW, any reclassification or recapitalization of the
capital stock of the Company or, prior to the consummation of a Spin-Off and
satisfaction of the Company's obligations pursuant to Section 3.3(b), DSW, any
consolidation or merger involving the Company or, so long as no Spin-Off shall
have occurred, DSW and any other Person, any transaction or series of
transactions in which more than 50% of the voting securities of the Company are
transferred to another Person, or any transfer, sale or other disposition of all
or substantially all the assets of the Company or, prior to the consummation of
a Spin-Off and satisfaction of the Company's obligations pursuant to Section
3.3(b), DSW to any other Person, or

            (c) any voluntary or involuntary dissolution, liquidation or
winding-up of the Company or, prior to the consummation of a Spin-Off and
satisfaction of the Company's obligations pursuant to Section 3.3(b), DSW, or

            (d) any Spin-Off, or

            (e) the exercise by the Company of any right or remedy with respect
to its Lien on the capital stock of DSW,

the Company shall mail to each holder of a Warrant a notice specifying (i) the
date or expected date on which any such record is to be taken for the purpose of
such dividend, distribution or right, and the amount and character of such
dividend, distribution or right, and (ii) the date or expected date on which any
such reorganization, reclassification, recapitalization, consolidation, merger,
transfer, sale, disposition, dissolution, liquidation or winding-up is to take
place and the time, if any such time is to be fixed, as of which the holders of
record of Common Stock or DSW Stock (or Other Securities) shall be entitled to
exchange their shares of Common Stock or DSW

                                       22
<PAGE>
Stock (or Other Securities) for the securities or other property deliverable
upon such reorganization, reclassification, recapitalization, consolidation,
merger, transfer, dissolution, liquidation or winding-up. Such notice shall be
mailed at least 20 days prior to the date therein specified, and in the case of
a Spin-off, such notice shall be mailed at least 90 days prior to the record
date of such Spin-Off.

            9. REGISTRATION OF STOCK. If any shares of Common Stock required to
be reserved for purposes of exercise of this Warrant require registration with
or approval of any governmental authority under any federal or state law (other
than the Securities Act) before such shares may be issued or transferred upon
exercise, the Company shall, at its expense and as expeditiously as possible,
use its best efforts to cause such shares to be duly registered or approved, as
the case may be. At any such time as Common Stock is listed on any national
securities exchange, the Company shall, at its expense, obtain promptly and
maintain the approval for listing on each such exchange, upon official notice of
issuance, the shares of Common Stock issuable upon exercise of the then
outstanding Warrants and maintain the listing of such shares after their
issuance; and the Company shall also list on such national securities exchange,
register under the Exchange Act and maintain such listing of, any Other
Securities of the Company that at any time are issuable upon exercise of the
Warrants, if and at the time that any securities of the same class shall be
listed on such national securities exchange by the Company.

            10. RESTRICTIONS ON TRANSFER.

            10.1. Restrictive Legends. Except as otherwise permitted by this
Section 10, each Warrant (including each Warrant issued upon the transfer of any
Warrant) shall be stamped or otherwise imprinted with a legend in substantially
the following form:

            "THIS WARRANT AND ANY SECURITIES ACQUIRED UPON THE EXERCISE OF THIS
      WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED, OR THE SECURITIES LAW OF ANY STATE, AND MAY NOT BE SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS
      OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF
      SUCH ACT AND SUCH LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT BE SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE TERMS
      AND CONDITIONS SPECIFIED IN THIS WARRANT.

Except as otherwise permitted by this Section 10, each certificate for Common
Stock or DSW Stock (or Other Securities) issued upon the exercise of any
Warrant, and each certificate issued upon the transfer of any such Common Stock
or DSW Stock (or Other Securities), shall be stamped or otherwise imprinted with
a legend in substantially the following form:

            "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS

                                       23
<PAGE>
      AMENDED, OR THE SECURITIES LAW OF ANY STATE, AND MAY NOT BE SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS
      OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF
      SUCH ACT AND SUCH LAWS."

            10.2. Transfer to Comply With the Securities Act. Restricted
Securities may not be sold, assigned, pledged, hypothecated, encumbered or in
any manner transferred or disposed of (a "Transfer"), in whole or in part,
except in compliance with the provisions of the Securities Act and state
securities or Blue Sky laws and the terms and conditions hereof.

            10.3. Notice of Transfer. Each Holder shall, prior to any Transfer
of any Warrants, give written notice to the Company of such Holder's intention
to Transfer.

            10.4. Termination of Restrictions. The restrictions imposed by this
Section 10 on the transferability of Restricted Securities shall cease and
terminate as to any particular Restricted Securities (a) when a registration
statement with respect to the sale of such securities shall have been declared
effective under the Securities Act and such securities shall have been disposed
of in accordance with such registration statement, (b) when such securities are
sold pursuant to Rule 144 (or any similar provision then in force) under the
Securities Act, or (c) when, in the reasonable opinion of both counsel for the
Holder and counsel for the Company or DSW, as applicable, such restrictions are
no longer required or necessary in order to protect the Company or DSW, as
applicable, against a violation of the Securities Act upon any sale or other
disposition of such securities without registration thereunder. Whenever such
restrictions shall cease and terminate as to any Restricted Securities of the
Company, the Holder shall be entitled to receive from the Company, without
expense, new securities of like tenor not bearing the applicable legends
required by Section 10.1.

            10.5. Exempt Transfers. The restrictions on the transfer of this
Warrant or the Warrant Shares set forth in this Section 10 shall not apply to
any transfer to an affiliate of the Holder or to any transfer to any other
Person, provided that such transfer is made in compliance with the provisions of
the Securities Act and state securities laws.

            11. RESERVATION OF STOCK, ETC. The Company shall at all times
reserve and keep available, solely for issuance (in the case of Common Stock) or
transfer and delivery upon exercise of this Warrant, the number of shares of
Common Stock, DSW Stock (which, for the avoidance of doubt, may be Class B
Shares) or Other Securities from time to time issuable or transferable upon
exercise of this Warrant [For Cerberus Warrant only: without regard to any limit
on exercisability set forth in Section 2.5 or otherwise in this Warrant or any
comparable provision in the Conversion Warrants]. The Company shall cause all
shares of Common Stock, or Other Securities of the Company issuable and shall
use its reasonable best efforts to cause all shares of DSW Stock transferable,
upon exercise of any Warrants to be duly authorized and, when issued or
transferred upon such exercise, to be validly issued and, in the case of shares,
fully paid and nonassessable, with no liability on the part of the holders
thereof, and, in the case of all securities, shall be free from all liens,
security interests, encumbrances (in each of the foregoing cases, other than
those imposed by the Holder), taxes, preemptive rights

                                       24
<PAGE>
and charges. The transfer agent for the Common Stock, and every subsequent
transfer agent for any shares of the Company's capital stock issuable upon the
exercise of any of the purchase rights represented by this Warrant, are hereby
irrevocably authorized and directed at all times until the Expiration Date to
reserve such number of authorized and unissued shares as shall be requisite for
such purpose. The Company shall keep copies of this Warrant on file with the
transfer agent for the Common Stock and with every subsequent transfer agent for
any shares of the Company's capital stock issuable upon the exercise of the
rights of purchase represented by this Warrant. The Company shall supply such
transfer agent with duly executed stock certificates for such purpose. All
Warrants surrendered upon the exercise of the rights thereby evidenced shall be
canceled, and such canceled Warrants shall constitute sufficient evidence of the
number of shares of common stock, if exercised for Common Stock, which have been
issued upon the exercise of such Warrants. Subsequent to the Expiration Date, no
shares of stock need be reserved in respect of any unexercised Warrant.

            12. REGISTRATION AND TRANSFER OF WARRANTS, ETC.

            12.1. Warrant Register; Ownership of Warrants. Each Warrant issued
by the Company shall be numbered and shall be registered in a warrant register
(the "Warrant Register") as it is issued and transferred, which Warrant Register
shall be maintained by the Company at its principal office or, at the Company's
election and expense, by a Warrant agent or the transfer agent. The Company
shall be entitled to treat the registered Holder of any Warrant on the Warrant
Register as the owner in fact thereof for all purposes and shall not be bound to
recognize any equitable or other claim to or interest in such Warrant on the
part of any other Person, and shall not be affected by any notice to the
contrary, except that, if and when any Warrant is properly assigned in blank,
the Company may (but shall not be obligated to) treat the bearer thereof as the
owner of such Warrant for all purposes. Subject to Section 10, a Warrant, if
properly assigned, may be exercised by a new holder without a new Warrant first
having been issued.

            12.2. Transfer of Warrants. Subject to compliance with Section 10,
if applicable, this Warrant and all rights hereunder are transferable in whole
or in part, without charge to the Holder hereof, upon surrender of this Warrant
with a properly executed Form of Assignment attached hereto as Exhibit C at the
principal office of the Company. Upon any partial transfer, the Company shall at
its expense issue and deliver to the Holder a new Warrant of like tenor, in the
name of the Holder, which shall be exercisable for such number of shares of
Common Stock with respect to which rights under this Warrant were not so
transferred.

            12.3. Replacement of Warrants. On receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of any such loss, theft or
destruction of this Warrant, on delivery of an indemnity agreement reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender of such Warrant to the Company at its principal office
and cancellation thereof, the Company at its expense shall execute and deliver,
in lieu thereof, a new Warrant of like tenor.

            12.4. Adjustments to Purchase Price and Number of Shares.
Notwithstanding any adjustment in the Purchase Price or in the number or kind of
Warrant Shares purchasable

                                       25
<PAGE>
upon exercise of this Warrant, any Warrant theretofore or thereafter issued may
continue to express the same number and kind of Warrant Shares as are stated in
this Warrant, as initially issued.

            12.5. Fractional Shares. Notwithstanding any adjustment pursuant to
Section 3 in the number of Warrant Shares covered by this Warrant or any other
provision of this Warrant, the Company shall not be required to issue or
transfer fractions of shares upon exercise of this Warrant or to distribute
certificates which evidence fractional shares. In lieu of fractional shares, the
Company shall make payment to the Holder, at the time of exercise of this
Warrant as herein provided, in an amount in cash equal to such fraction
multiplied by the Current Market Price of a share of Common Stock or DSW Stock,
as applicable, on the date of Warrant exercise.

            13. SECURITIES ACT MATTERS. The Holder represents and warrants to
the Company as of the Original Issuance Date and as of date hereof that:

            (a) The Holder is acquiring this Warrant for its own account,
without a view to, or sale in connection with, the distribution thereof. The
Holder has no present agreement, undertaking, arrangement, commitment or
obligation providing for the disposition of the Warrant or the Warrant Shares,
all without prejudice, however, to the right of the Holder at any time, in
accordance with this Warrant, lawfully to sell or otherwise to dispose of all or
any part of the Warrant or Warrant Shares held by it;

            (b) The Holder is an "accredited investor" within the meaning of
Regulation D under the Securities Act. The Holder has not retained, utilized or
been represented by any broker or finder in connection with the transactions
contemplated by this Warrant;

            (c) The Holder acknowledges that, subject to the Registration Rights
Agreement and the DSW Registration Rights Agreement (A) the Warrants and the
Warrant Shares have not been registered under the Securities Act, in reliance on
the non-public offering exemption contained in Section 4(2) of the Securities
Act and Regulation D thereunder; (B) because the Warrants and the Warrant Shares
are not so registered, the Holder must bear the economic risk of holding this
Warrant and the Warrant Shares for an indefinite period of time unless the
Warrants and the Warrant Shares are subsequently registered under the Securities
Act or an exemption from such registration is available with respect thereto;
(C) Rule 144 under the Securities Act may or may not be available for resales of
the Warrants or the Warrant Shares in the future and, if so, may only be
available for sales in limited amounts; (D) there is presently no trading market
for the Warrants and there is no assurance that such market will exist in the
future; and (E) while there is presently a trading market for the Warrant
Shares, there is no assurance that such market will be in existence in the
future; and

            (d) If the Holder decides to dispose of this Warrant or the Warrant
Shares, which it does not now contemplate, the Holder can do so only in
accordance and in compliance with the Securities Act and Rule 144 or another
exemption from the registration requirements of the Securities Act, as then in
effect or through an effective registration statement under the Securities Act.

                                       26
<PAGE>
            14. REMEDIES; SPECIFIC PERFORMANCE. The Company stipulates that
there would be no adequate remedy at law to any Holder in the event of any
default or threatened default by the Company in the performance of or compliance
with any of the terms of this Warrant and accordingly, the Company agrees that,
in addition to any other remedy to which the Holder may be entitled at law or in
equity, the Holder shall be entitled to seek to compel specific performance of
the obligations of the Company under this Warrant, without the posting of any
bond, in accordance with the terms and conditions of this Warrant in any court
of the United States or any State thereof having jurisdiction, and if any action
should be brought in equity to enforce any of the provisions of this Warrant,
the Company shall not raise the defense that there is an adequate remedy at law.
Except as otherwise provided by law, a delay or omission by the Holder hereto in
exercising any right or remedy accruing upon any such breach shall not impair
the right or remedy or constitute a waiver of or acquiescence in any such
breach. No remedy shall be exclusive of any other remedy. All available remedies
shall be cumulative.

            15. NO RIGHTS OR LIABILITIES AS SHAREHOLDER. Nothing contained in
this Warrant shall be construed as conferring upon the Holder hereof any rights
as a shareholder of the Company or as imposing any obligation on the Holder to
purchase any securities or as imposing any liabilities on the Holder as a
shareholder of the Company, whether such obligation or liabilities are asserted
by the Company or by creditors of the Company.

            16. NOTICES. All notices and other communications (and deliveries)
provided for or permitted hereunder shall be made in writing by hand delivery,
telecopier, any nationally-recognized courier guaranteeing overnight delivery or
first class registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

If to the Company: Retail Ventures Inc.
                   3241 Westerville Road
                   Columbus, OH  43224
                   Attn: James McGrady, Chief Financial
                   Officer
                   Fax No. (614) 473-2721

with copies to:    Retail Ventures, Inc.
                   3241 Westerville Road
                   Columbus, OH  43224
                   Attn:  General Counsel
                   Fax No.  (614) 337-4682

If to Holder:      Cerberus Partners, L.P.
                   299 Park Avenue
                   Floor 22
                   New York, NY 10171
                   Attn:  Lenard Tessler
                   Fax No. (212) 421-2958

                                       27
<PAGE>
with copies to:    Schulte Roth & Zabel LLP
                   919 Third Avenue
                   New York, NY  10022
                   Attn:  Stuart D. Freedman, Esq.
                   Fax No. (212) 593-5955

            All such notices and communications (and deliveries) shall be deemed
to have been duly given: at the time delivered by hand, if personally delivered;
when receipt is acknowledged, if telecopied; on the next Business Day, if timely
delivered to a courier guaranteeing overnight delivery; and five days after
being deposited in the mail, if sent first class or certified mail, return
receipt requested, postage prepaid; provided, that the exercise of any Warrant
shall be effective in the manner provided in Section 2.

            17. AMENDMENTS. This Warrant and any term hereof may not be amended,
modified, supplemented or terminated, and waivers or consents to departures from
the provisions hereof may not be given, except by written instrument duly
executed by the Company and the Holder.

            18. DESCRIPTIVE HEADINGS, ETC. The headings in this Warrant are for
convenience of reference only and shall not limit or otherwise affect the
meaning of terms contained herein. Unless the context of this Warrant otherwise
requires: (1) words of any gender shall be deemed to include each other gender;
(2) words using the singular or plural number shall also include the plural or
singular number, respectively; (3) the words "hereof", "herein" and "hereunder"
and words of similar import when used in this Warrant shall refer to this
Warrant as a whole and not to any particular provision of this Warrant, and
Section and paragraph references are to the Sections and paragraphs of this
Warrant unless otherwise specified; (4) the word "including" and words of
similar import when used in this Warrant shall mean "including, without
limitation," unless otherwise specified; (5) "or" is not exclusive; and (6)
provisions apply to successive events and transactions.

            19. GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the law of the State of New York.

            20. REGISTRATION RIGHTS AGREEMENT. The shares of Common Stock (and
Other Securities of the Company) issuable upon exercise of this Warrant shall
constitute Registrable Securities (as such term is defined in the Registration
Rights Agreement). The shares of DSW Stock issuable upon exercise of this
Warrant shall constitute Registrable Securities (as such term is defined in the
DSW Registration Rights Agreement). Each Holder shall be entitled to all of the
benefits afforded to a holder of any such Registrable Securities under the
Registration Rights Agreement and such Holder, by its acceptance of this
Warrant, agrees to be bound by and to comply with the terms and conditions of
the Registration Rights Agreement and the DSW Registration Rights Agreement,
applicable to such Holder as a holder of such Registrable Securities. In
addition to the foregoing, to the extent the Holder exercises this Warrant into
DSW Stock within 180 days of a Qualifying IPO, such Holder agrees not to
transfer such Warrant Shares until the date that is 181 days after the closing
date of such Qualifying IPO.

                                       28
<PAGE>
            21. EXPIRATION. The right to exercise this Warrant shall expire at
5:00 p.m., New York City time, on June 11, 2012.

            22. COSTS AND ATTORNEYS' FEES. In the event that any action, suit or
other proceeding is instituted concerning or arising out of this Warrant, the
Company agrees and the Holder, by taking and holding this Warrant agrees, that
the prevailing party shall recover from the non-prevailing party all of such
prevailing party's costs and reasonable attorneys' fees incurred in each and
every such action, suit or other proceeding, including any and all appeals or
petitions therefrom.

                [Remainder of this page intentionally left blank]

                                       29
<PAGE>
            IN WITNESS WHEREOF, the Company has executed and delivered this
Warrant as of the date first above written.

                                    RETAIL VENTURES, INC.

                                     By: _____________________________________

                                     Name: ___________________________________

                                     Title: __________________________________

                                       30
<PAGE>
                                                   EXHIBIT A to
                                                   Common Stock Purchase Warrant

                                   FORM OF
                 ELECTION TO PURCHASE SHARES OF COMMON STOCK

            The undersigned hereby irrevocably elects to exercise the Warrant to
purchase ____ Common Shares, no par value per share ("Common Stock"), of RETAIL
VENTURES, INC. and hereby makes payment of $________ therefor [or] makes payment
by reduction pursuant to Section 2.1(b)(ii) of the Warrant of the number of
shares of Common Stock otherwise issuable to the Holder upon Warrant exercise by
___ shares [or] makes payment therefor by delivery of the following Common Stock
Certificates of the Company (properly endorsed for transfer in blank) for
cancellation by the Company pursuant to Section 2.1(b)(iii) of the Warrant,
certificates of which are attached hereto for cancellation ________ [list
certificates by number and amount]. The undersigned hereby requests that
certificates for such shares be issued and delivered as follows:

ISSUE TO:_______________________________________________________________________
                                     (NAME)

________________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

________________________________________________________________________________
                (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

DELIVER TO:_____________________________________________________________________
                                     (NAME)

________________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

            If the number of shares of Common Stock purchased (and/or reduced)
hereby is less than the number of shares of Common Stock covered by the Warrant,
the undersigned requests that a new Warrant representing the number of shares of
Common Stock not so purchased (or reduced) be issued and delivered as follows:

ISSUE TO:_______________________________________________________________________
                                (NAME OF HOLDER)

________________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

DELIVER TO:_____________________________________________________________________
                                (NAME OF HOLDER)

________________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

Dated: _____________, 20__                      NAME OF HOLDER

                                          By___________________________________
                                             Name:
                                             Title:

                                       31
<PAGE>
                                                   EXHIBIT B to
                                                   Common Stock Purchase Warrant

                                   FORM OF
                   ELECTION TO PURCHASE SHARES OF DSW STOCK

            The undersigned hereby irrevocably elects to exercise the Warrant to
purchase ___ Class A Common Shares, no par value, of DSW Inc. ("DSW Stock") and
hereby makes payment of $________ therefor [or] makes payment by reduction
pursuant to Section 2.1(b)(ii) of the Warrant of the number of shares of DSW
Stock otherwise issuable to the Holder upon Warrant exercise by ___ shares [or]
makes payment therefor by delivery of the following DSW Stock Certificates of
DSW Inc. (properly endorsed for transfer in blank) for transfer to the Company
pursuant to Section 2.1(b)(iii) of the Warrant, certificates of which are
attached hereto for cancellation ________ [list certificates by number and
amount]. The undersigned hereby requests that certificates for such shares be
issued and delivered as follows:

ISSUE TO:_______________________________________________________________________
                                     (NAME)

________________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

________________________________________________________________________________
                (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

DELIVER TO:_____________________________________________________________________
                                     (NAME)

________________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

            If the number of shares of DSW Stock purchased (and/or reduced)
hereby is less than the number of shares of DSW Stock covered by the Warrant,
the undersigned requests that a new Warrant representing the number of shares of
DSW Stock not so purchased (or reduced) be issued and delivered as follows:

ISSUE TO:_______________________________________________________________________
                                (NAME OF HOLDER)

________________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

DELIVER TO:_____________________________________________________________________
                                (NAME OF HOLDER)

________________________________________________________________________________
                        (ADDRESS, INCLUDING ZIP CODE)

Dated: _____________, 20__                      NAME OF HOLDER

                                          By___________________________________
                                             Name:
                                             Title:

                                       32
<PAGE>
                                                   EXHIBIT C to
                                                   Common Stock Purchase Warrant

                               FORM OF ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and
transfers unto the Assignee named below all of the rights of the undersigned to
purchase Common Shares, no par value per share ("Common Stock") of RETAIL
VENTURES, INC. (the "Company") or, after the consummation of a Qualifying IPO
(as defined in the Warrant) but prior to the consummation of a Spin-Off (as
defined in the Warrant) and satisfaction of the Company's obligations pursuant
to Section 3.3(b) and at its election, Class A common shares no par value per
share ("DSW Stock") of DSW Inc. owned by the Company, and represented by the
Warrant, with respect to the number of shares of Common Stock and DSW Stock set
forth below:

<TABLE>
<CAPTION>
    Name of                    No. of Shares       No. of Shares of
   Assignee        Address    of Common Stock          DSW Stock
   --------        -------    ---------------          ---------
<S>                <C>        <C>                  <C>
</TABLE>

and does hereby irrevocably constitute and appoint ________ Attorney to make
such transfer on the books of maintained for that purpose, with full power of
substitution in the premises.

Dated: _____________, 20__                      NAME OF HOLDER

                                          By___________________________________
                                             Name:
                                             Title:<PAGE>

                                                                     EXHIBIT 4.3

                           SECOND AMENDED AND RESTATED
                          REGISTRATION RIGHTS AGREEMENT

                                  by and among

                  RETAIL VENTURES, INC. (successor by merger to
                       Value City Department Stores, Inc.)

                                       and

                            THE HOLDERS SPECIFIED ON
                           THE SIGNATURE PAGES HEREOF

                            Dated as of July 5, 2005

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                       Page
                                                                                       ----
<S>                                                                                    <C>
1. DEFINITIONS.....................................................................      1

2. REGISTRATION UNDER THE SECURITIES ACT...........................................      6

    2.1   Demand Registration......................................................      6
    2.2   Incidental Registration..................................................      9
    2.3   Shelf Registration.......................................................     11
    2.4   Underwritten Offerings...................................................     11
    2.5   Expenses.................................................................     12

3. HOLDBACK ARRANGEMENTS...........................................................     12

    3.1   Restrictions on Sale by Holders of Registrable Securities................     12
    3.2   Restrictions on Sale by the Company and Others...........................     13

4. REGISTRATION PROCEDURES.........................................................     13

    4.1   Obligations of the Company...............................................     13
    4.2   Seller Information.......................................................     17
    4.3   Notice to Discontinue....................................................     17

5. INDEMNIFICATION; CONTRIBUTION...................................................     18

    5.1   Indemnification by the Company...........................................     18
    5.2   Indemnification by Holders...............................................     19
    5.3   Conduct of Indemnification Proceedings...................................     19
    5.4   Contribution.............................................................     20
    5.5   Other Indemnification....................................................     20
    5.6   Indemnification Payments.................................................     21

6. GENERAL.........................................................................     21

    6.1   Adjustments Affecting Registrable Securities.............................     21
    6.2   Registration Rights to Others............................................     21
    6.3   Availability of Information; Rule 144; Other Exemptions..................     21
    6.4   Amendments and Waivers...................................................     22
    6.5   Notices..................................................................     22
    6.6   Successors and Assigns...................................................     24
    6.7   Counterparts.............................................................     24
    6.8   Descriptive Headings, Etc. ..............................................     24
    6.9   Severability.............................................................     25
    6.10  Choice of Law and Venue; Jury Trial Waiver...............................     25
    6.11  Remedies; Specific Performance...........................................     26
    6.12  Entire Agreement.........................................................     26
    6.13  Further Assurances.......................................................     26
    6.14  Construction.............................................................     26
    6.15  No Inconsistent Agreement................................................     26
    6.16  Costs and Attorneys' Fees................................................     26
    6.17  Nominees for Beneficial Owners...........................................     27
</TABLE>

                                      -i-
<PAGE>

            This SECOND AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (the
"Agreement") dated as of July 5, 2005, by and among Retail Ventures, Inc.
(successor by merger to Value City Department Stores, Inc.), an Ohio corporation
(the "Company"), Cerberus Partners, L.P., ("CPLP"), Schottenstein Stores
Corporation ("SSC") and Back Bay Capital Funding LLC, and amends and restates in
its entirety that certain Amended and Restated Registration Rights Agreement
(the "Registration Rights Agreement") dated as of June 11, 2002 by and among the
Company, CPLP and SSC.

                                  WITNESSETH:

            WHEREAS, in connection with a Financing Agreement dated July 11,
2002, as amended or otherwise modified from time to time, by and among the
Company, certain subsidiaries of the Company, CPLP and the lenders set forth
therein (the "Financing Agreement"), the Company issued, upon the terms and
subject to the conditions of the Financing Agreement, certain warrants, dated
September 26, 2002 (the "Warrants") to each Holder exercisable for up to
19,621,459 shares (subject to adjustment pursuant to the terms of the Warrants),
of the Company's Common Shares without par value (the "Common Shares") (the
Common Shares issued or issuable upon exercise of the Warrants are hereinafter
referred to as the "Warrant Shares"); and

            WHEREAS, the parties have entered into that certain Second Amended
and Restated Senior Loan Agreement, dated as of the date hereof, which agreement
amends and restates that certain Amended and Restated Convertible Loan
Agreement, dated as of June 11, 2002, by and among the Company, the guarantors
named therein, CPLP and the Lenders named therein, as amended by Amendment No. 1
to Amended and Restated Senior Convertible Loan Agreement, dated as of June 11,
2002, and by Amendment No. 2 to Amended and Restated Senior Convertible Loan
Agreement, dated as of October 7, 2003 and Amendment No. 3 to Amended and
Restated Senior Convertible Loan Agreement, dated as of December 29, 2004 (as
amended, supplemented, restated or otherwise modified through the date hereof,
the "Loan Agreement"); and

            WHEREAS, as a condition to the effectiveness of such amendment and
restatement, the Company has, on the date hereof, issued certain warrants (the
"Conversion Warrants") exercisable for Common Shares by each of the Holders at
any time in their sole discretion (the Common Shares issued or issuable upon
exercise of the Conversion Warrants are hereinafter referred to as the
"Conversion Warrant Shares"); and

            WHEREAS, in order to induce the Initial Holders to enter into and
consummate the transactions contemplated by the Loan Agreement, the Company has
agreed to amend and restate the Registration Rights Agreement in its entirety as
set forth herein;

            NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and in order to induce the Initial Holders to amend
and restate the Loan Agreement, the Company and the Initial Holders hereby agree
as follows:

            1. DEFINITIONS. As used in this Agreement, the following terms shall
have the following meanings:

<PAGE>

            "Affiliate" shall mean, with respect to any Person, any other Person
that directly or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with, such Person. For purposes of
this definition, "control," "controls," "controlled by," or "under common
control with" shall mean the possession, direct or indirect of the power to
cause the direction of the management and policies of a Person whether through
the ownership of voting securities, by contract or otherwise. A Person shall be
deemed to have control of another Person if it is a "beneficial owner" (as such
term is defined in Rule 13d-3 and Rule 13-d-5 under the Securities Exchange Act)
or a member of a "group" that is the beneficial owner, directly or indirectly,
of 20% or more of the voting stock of or equity interest in such Person. A
Person shall be deemed to direct the management and policies of a Person if it,
without limitation, obtains the power (whether or not exercised) to elect a
majority of the Board of Directors of such Person.

            "Common Shares" shall have the meaning set forth in the recitals.

            "Company" shall have the meaning set forth in the preamble.

            "Conversion Warrant Shares" shall have the meaning set forth in the
recitals.

            "Conversion Warrants" shall have the meaning set forth in the
recitals.

            "CPLP" shall have the meaning set forth in the preamble.

            "CPLP Initial Holders" shall mean CPLP and its transferees who are
Initial Holders.

            "Current Market Price" shall mean, with respect to a security, on
any date specified herein, the average of the daily Market Price of such
security during the 10 consecutive trading days before such date, except that,
if on any such date the shares of such security are not listed or admitted for
trading on any national securities exchange or quoted in the over-the-counter
market, the Current Market Price shall be the Market Price on such date.

            "Demand Registration" shall mean a registration required to be
effected by the Company pursuant to Section 2.1.

            "Demand Registration Statement" shall mean a registration statement
of the Company which covers the Registrable Securities requested to be included
therein pursuant to the provisions of Section 2.1 and all amendments and
supplements to such registration statement, including post-effective amendments,
in each case including the Prospectus contained therein, all exhibits thereto
and all material incorporated by reference (or deemed to be incorporated by
reference) therein.

            "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time, and the rules and regulations thereunder, or any
successor statute.

            "Financing Agreement" shall have the meaning set forth in the
recitals.

                                      -2-
<PAGE>

            "Holders" shall mean initially the Holders signatory hereto for so
long as they are the registered owners of any Registrable Securities and such of
their respective heirs, successors and permitted assigns (including any
permitted transferees of Registrable Securities) who acquire or are otherwise
the transferee of Registrable Securities, directly or indirectly, from such
Holders (or any subsequent Holder), for so long as such heirs, successors and
permitted assigns are the registered owners of any Registrable Securities. For
purposes of this Agreement, a Person will be deemed to be a Holder whenever such
Person holds an option to purchase, or a security convertible into or
exercisable or exchangeable for, Registrable Securities, whether or not such
purchase, conversion, exercise or exchange has actually been effected and
disregarding any legal restrictions upon the exercise of such rights.
Registrable Securities issuable upon exercise of an option or upon conversion,
exchange or exercise of another security shall be deemed outstanding for the
purposes of this Agreement.

            "Holders' Counsel" shall mean one firm of counsel (per registration)
to the Holders of Registrable Securities participating in such registration,
which counsel shall be selected (i) in the case of a Demand Registration, by the
Initiating Holder who requested registration in the Request or, if another
Holder is registering a greater number of Registrable Securities in such Demand
Registration, then the Holder registering the greatest number of Registrable
Securities in such Demand Registration, and (ii) in all other cases, by the
Initial Holders of the Registration.

            "Incidental Registration" shall mean a registration required to be
effected by the Company pursuant to Section 2.2.

            "Incidental Registration Statement" shall mean a registration
statement of the Company, which covers the Registrable Securities requested to
be included therein pursuant to the provisions of Section 2.2 and all amendments
and supplements to such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference (or deemed to be
incorporated by reference) therein.

            "Initial Holders" shall mean CPLP, SSC, SSC's beneficial owners and
any party to whom any of SSC, SSC's beneficial owners or CPLP transfers at least
15% of its Registrable Securities.

            "Initial Holders of the Registration" shall mean, with respect to a
particular registration, the Initial Holders who hold Registrable Securities to
be included in such registration.

            "Initiating Holder" shall mean, with respect to a particular
registration, the Holder who initiated the Request for such registration.

            "Loan Agreement" shall have the meaning set forth in the preamble.

            "Market Price" shall mean, on any date specified herein, with
respect to any security, the amount per share of such security equal to (i) the
last reported sale price of such security, regular way, on such date or, in case
no such sale takes place on such date, the average

                                      -3-
<PAGE>

of the closing bid and asked prices thereof regular way on such date, in either
case as officially reported on the principal national securities exchange on
which such security is then listed or admitted for trading, (ii) if such
security is not then listed or admitted for trading on any national securities
exchange but is designated as a national market system security by the NASD, the
last reported trading price of such security on such date, (iii) if there shall
have been no trading on such date or if such security is not so designated, the
average of the closing bid and asked prices of such security on such date as
shown by the NASD automated quotation system, (iv) if trading in such security
is quoted in the over-the-counter market, the average of the closing bid and
asked prices of the security on such date as shown on the OTC Bulletin Board, or
(v) if such security is not then listed or admitted for trading on any national
exchange or quoted in the over-the-counter market, the fair value thereof (as of
a date which is within 20 days of the date as of which the determination is to
be made) determined in good faith by a committee of the Company's Board of
Directors consisting of directors who are not Affiliates of the Company, or the
Initial Holders; provided, however, that at the request of a Holder, the Market
Price shall be determined in good faith by an independent investment banking
firm selected jointly by the Company and the Initial Holders or, if that
selection cannot be made within 10 days, by an independent investment banking
firm selected by the American Arbitration Association in accordance with its
rules, and provided, further, that the Company shall pay all of the fees and
expenses of any third parties incurred in connection with determining the Market
Price.

            "NYSE" shall mean the New York Stock Exchange, Inc.

            "Person" shall mean any individual, firm, partnership, corporation,
trust, joint venture, association, joint stock company, limited liability
company, unincorporated organization or any other entity or organization,
including a government or agency or political subdivision thereof, and shall
include any successor (by merger or otherwise) of such entity.

            "Prospectus" shall mean the prospectus included in a Registration
Statement (including, without limitation, any preliminary prospectus and any
prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act) and any such Prospectus as amended or
supplemented by any prospectus supplement, and all other amendments and
supplements to such Prospectus, including post-effective amendments, and in each
case including all material incorporated by reference (or deemed to be
incorporated by reference) therein.

            "Registrable Securities" shall mean (i) any Warrant Shares issued
upon exercise of the Warrants, (ii) any Conversion Warrant Shares issued upon
exercise of the Conversion Warrants, and (iii) any other securities of the
Company (or any successor or assign of the Company, whether by merger,
consolidation, sale of assets or otherwise) which may be issued with respect to,
in exchange for, or in substitution of, Registrable Securities referenced in
clauses (i) and (ii) above by reason of any dividend or stock split, combination
of shares, merger, consolidation, recapitalization, reclassification,
reorganization, sale of assets or similar transaction. As to any particular
Registrable Securities, such securities shall cease to be Registrable Securities
when (A) a registration statement with respect to the sale of such securities
shall have been declared effective under the Securities Act and either (i) the
registration statement with respect thereto has remained effective for 150 days
from the time the Warrant

                                      -4-
<PAGE>

Shares are issued upon exercise of the Warrants or from the time the Conversion
Warrant Shares are issued upon exercise of the Conversion Warrants (provided,
that this clause (A)(i) shall not apply to a registration statement that is a
shelf registration) or (ii) such securities shall have been disposed of in
accordance with such registration statement, (B) such securities are eligible
for sale pursuant to Rule 144(k) (or any similar provisions then in force) under
the Securities Act, (C) such securities have been otherwise transferred, a new
certificate or other evidence of ownership for them not bearing the legend
restricting further transfer shall have been delivered by the Company and
subsequent public distribution of them shall not require registration under the
Securities Act, or (D) such securities shall have ceased to be outstanding.

            "Registration Expenses" shall mean any and all expenses incident to
performance of or compliance with this Agreement by the Company and its
subsidiaries, including, without limitation (i) all SEC, stock exchange, NYSE
and other registration, listing and filing fees, (ii) all fees and expenses of
the Company incurred in connection with compliance with state securities or blue
sky laws and compliance with the rules of any stock exchange (including fees and
disbursements of counsel in connection with such compliance and the preparation
of a blue sky memorandum and legal investment survey), (iii) all expenses of any
Persons in preparing or assisting in preparing, word processing, printing,
distributing, mailing and delivering any Registration Statement, any Prospectus,
any underwriting agreements, transmittal letters, securities sales agreements,
securities certificates and other documents relating to the performance of or
compliance with this Agreement, (iv) the fees and disbursements of counsel for
the Company, (v) the fees and disbursements of Holders' Counsel up to $15,000
per Registration Statement, (vi) the fees and disbursements of all independent
public accountants (including the expenses of any audit and/or "cold comfort"
letters) and the fees and expenses of other Persons, including experts, retained
by the Company, (vii) the expenses incurred in connection with making road show
presentations and holding meetings with potential investors to facilitate the
distribution and sale of Registrable Securities, and (viii) except as set forth
below, any fees and disbursements of underwriters customarily paid by issuers or
sellers of securities; provided, however, that Registration Expenses shall not
include discounts and commissions payable to underwriters, selling brokers,
dealer managers or other similar Persons engaged in the distribution of any of
the Registrable Securities; and provided further, that in any case where
Registration Expenses are not to be borne by the Company, such expenses shall
not include salaries of Company personnel or general overhead expenses of the
Company, auditing fees, premiums or other expenses relating to liability
insurance required by underwriters of the Company or other expenses for the
preparation of financial statements or other data normally prepared by the
Company in the ordinary course of its business or which the Company would have
incurred in any event; and provided further, that in the event the Company shall
not register any securities with respect to which it had given written notice of
its intention to register to Holders, notwithstanding anything to the contrary
in the foregoing, all of the costs incurred by the Holders in connection with
such registration shall be deemed to be Registration Expenses.

            "Registration Statement" shall mean any registration statement of
the Company which covers any Registrable Securities and all amendments and
supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference (or deemed to be
incorporated by reference) therein.

                                      -5-
<PAGE>

            "Request" shall have the meaning set forth in Section 2.1(a).

            "Rule 144" means Rule 144 issued by the SEC under the Securities
Act, or any subsequent rule pertaining to the disposition of securities without
registration.

            "Rule 144A" means Rule 144A issued by the SEC under the Securities
Act, or any subsequent rule pertaining to private resales of securities to
institutions.

            "SEC" shall mean the Securities and Exchange Commission, or any
successor agency having jurisdiction to enforce the Securities Act.

            "Securities Act" shall have the meaning set forth in the preamble.

            "Shelf Registration" shall have the meaning set forth in Section
2.1(a).

            "SSC Initial Holders" shall mean SSC, its beneficial owners and its
transferees who are Initial Holders.

            "Underwriters" shall mean the underwriters, if any, of the offering
being registered under the Securities Act.

            "Underwritten Offering" shall mean a sale of securities of the
Company to an Underwriter or Underwriters for reoffering to the public.

            "Warrants" shall have the meaning set forth in the recitals.

            "Warrant Shares" shall have the meaning set forth in the recitals.

            "Withdrawn Demand Registration" shall have the meaning set forth in
Section 2.1(a).

            "Withdrawn Request" shall have the meaning set forth in Section
2.1(a).

            2. REGISTRATION UNDER THE SECURITIES ACT.

            2.1 Demand Registration.

            (a) Right to Demand Registration. Subject to Section 2.1(c), at any
time or from time to time each Initial Holder shall have the right to request in
writing that the Company register all or part of such Holder's Registrable
Securities (a "Request") (which Request shall specify the amount of Registrable
Securities intended to be disposed of by such Holder and the intended method of
disposition thereof) by filing with the SEC a Demand Registration Statement. As
promptly as practicable, but no later than 10 days after receipt of a Request,
the Company shall give written notice of such requested registration to all
other Holders of Registrable Securities. Subject to Section 2.1(b), the Company
shall include in a Demand Registration (i) the Registrable Securities intended
to be disposed of by the Initiating Holder and (ii) the Registrable Securities
intended to be disposed of by any other Holder which shall have made a written
request (which request shall specify the amount of Registrable Securities to be

                                      -6-
<PAGE>

registered and the intended method of disposition thereof) to the Company for
inclusion thereof in such registration within 30 days after the receipt of such
written notice from the Company. The Company shall, promptly, following a
Request, use its reasonable best efforts to cause to be filed with the SEC a
Demand Registration Statement providing for the registration under the
Securities Act of the Registrable Securities which the Company has been so
requested to register by all such Holders, to the extent necessary to permit the
disposition of such Registrable Securities to be registered in accordance with
the intended methods of disposition thereof specified in such Request or further
requests (including, without limitation, by means of a shelf registration
pursuant to Rule 415 under the Securities Act (a "Shelf Registration") if so
requested and if the Company is then eligible to use such a registration. The
Company shall use its reasonable best efforts to have such Demand Registration
Statement declared effective by the SEC as soon as practicable thereafter and to
keep such Demand Registration Statement continuously effective for the period
specified in Section 4.1(b).

            A Request may be withdrawn prior to the filing of the Demand
Registration Statement by the Initiating Holder (a "Withdrawn Request") and a
Demand Registration Statement may be withdrawn prior to the effectiveness
thereof by the Initiating Holder (a "Withdrawn Demand Registration"), and such
withdrawals shall be treated as a Demand Registration which shall have been
effected pursuant to this Section 2.1, unless the Holders of Registrable
Securities to be included in such Registration Statement reimburse the Company
for its reasonable out-of-pocket Registration Expenses relating to the
preparation and filing of such Demand Registration Statement (to the extent
actually incurred), in which case such withdrawal shall not be treated as a
Demand Registration effected pursuant to this Section 2.1 (and shall not be
counted toward the number of Demand Registrations); provided, however, that if a
Withdrawn Request or Withdrawn Registration Statement is made (A) because of a
material adverse change in the business, financial condition or prospects of the
Company, or (B) because the sole or lead managing Underwriter advises that the
amount of Registrable Securities to be sold in such offering be reduced pursuant
to Section 2.1(b) by more than 25% of the Registrable Securities to be included
in such Registration Statement, then such withdrawal shall not be treated as a
Demand Registration effected pursuant to this Section 2.1 (and shall not be
counted toward the number of Demand Registrations), and the Company shall pay
all Registration Expenses in connection therewith. Any Holder requesting
inclusion in a Demand Registration may, at any time prior to the effective date
of the Demand Registration Statement (and for any reason) revoke such request by
delivering written notice to the Company revoking such requested inclusion.

            The registration rights granted pursuant to the provisions of this
Section 2.1 shall be in addition to the registration rights granted pursuant to
the other provisions of Section 2 hereof.

            (b) Priority in Demand Registrations. If a Demand Registration
involves an Underwritten Offering, and the sole or lead managing Underwriter, as
the case may be, of such Underwritten Offering shall advise the Company in
writing (with a copy to each Holder requesting registration) on or before the
date five days prior to the date then scheduled for such offering that, in its
opinion, the amount of Registrable Securities requested to be included in such
Demand Registration exceeds the number which can be sold in such offering within
a price range acceptable to the Initiating Holder (such writing to state the
approximate number of Registrable

                                      -7-
<PAGE>

Securities which may be included in such offering), and the Request is not
thereafter withdrawn, the Company shall include in such Demand Registration, to
the extent of the number which the Company is so advised may be included in such
offering, the Registrable Securities requested to be included in the Demand
Registration by the Holders allocated pro rata in proportion to the number of
Registrable Securities requested to be included in such Demand Registration by
each of them. In the event the Company shall not, by virtue of this Section
2.1(b), include in any Demand Registration all of the Registrable Securities of
any Holder requested to be included in such Demand Registration, such Holder
may, upon written notice to the Company given within five days of the time such
Holder first is notified of such matter, further reduce the amount of
Registrable Securities it desires to have included in such Demand Registration,
whereupon only the Registrable Securities, if any, that it desires to have
included will be so included and the Holders not so reducing shall be entitled
to a corresponding pro rata increase in the amount of Registrable Securities to
be included in such Demand Registration.

            (c) Limitations on Registrations. The rights of Holders of
Registrable Securities to request Demand Registrations pursuant to Section
2.1(a) are subject to the limitation that in no event shall the Company be
required to effect more than (i) three Demand Registrations requested by each of
CPLP and SSC (or its beneficial owners), (ii) five Demand Registrations
requested by all CPLP Initial Holders in the aggregate (with no CPLP Initial
Holder other than CPLP having the right to request more than two Demand
Registrations), or (iii) five Demand Registrations requested by all SSC Initial
Holders in the aggregate (with no SSC Initial Holder other than SSC (or its
beneficial owners) having the right to request more than two Demand
Registrations), as the Initiating Holder; provided, however, that such number
shall be increased to the extent the Company (x) does not include in what would
otherwise be such registration, for which the Company is required to pay
Registration Expenses, the number of Registrable Securities requested to be
registered by the Holders by reason of Section 2.1(b) or (y) terminates a Shelf
Registration pursuant to Section 2.3 prior to the earlier of the time that all
Registrable Securities covered by such Shelf Registration have been sold or one
year following the effectiveness of such Shelf Registration. The Holders of the
Registrable Securities may only make one Demand Registration per 180 days. In
order to effect a Demand Registration, the Holder seeking such Demand
Registration must seek to register at least a number of Common Shares with a
Current Market Price of $5,000,000, or such lesser number which is all of the
Registrable Securities held by such Holder.

            (d) Underwriting; Selection of Underwriters. Notwithstanding
anything to the contrary contained in Section 2.1(a), if the Initiating Holder
who requested registration in the Request so elects, the offering of such
Registrable Securities pursuant to such Demand Registration shall be in the form
of a firm commitment Underwritten Offering and such Initiating Holder may
require that all Persons (including other Holders) participating in such
registration sell their Registrable Securities to the Underwriters at the same
price and on the same terms of underwriting applicable to the Initiating Holder.
If any Demand Registration involves an Underwritten Offering, the sole or
managing Underwriters and any additional investment bankers and managers to be
used in connection with such registration shall be selected by the Company,
subject to the approval of the Initiating Holder who requested such registration
in the Request (such approval not to be unreasonably withheld).

                                      -8-
<PAGE>

            (e) Effective Registration Statement; Suspension. A Demand
Registration Statement shall not be deemed to have become effective (and the
related registration will not be deemed to have been effected) (i) unless it has
been declared effective by the SEC and remains effective in compliance with the
provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by such Demand Registration Statement for the
shorter of (i) one year for a Shelf Registration or 90 days for any other
Registration Statement or (ii) the time period specified in Section 4.1(b), (ii)
if the offering of any Registrable Securities pursuant to such Demand
Registration Statement is interfered with by any stop order, injunction or other
order or requirement of the SEC or any other governmental agency or court, or
(iii) if, in the case of an Underwritten Offering, the conditions to closing
specified in an underwriting agreement to which the Company is a party are not
satisfied (other than by the sole reason of any breach or failure by the Holders
of Registrable Securities) and are not otherwise waived.

            (f) Registration of Other Securities. Whenever the Company shall
effect a Demand Registration, no securities other than the Registrable
Securities shall be covered by such registration unless each Initial Holder of
the Registration shall have consented in writing to the inclusion of such other
securities; provided, however, that the number of shares of Registrable
Securities to be registered by the Holders shall not be reduced pursuant to
Section 2.1(b) unless all other securities are first entirely excluded from the
underwriting.

            (g) Registration Statement Form. Registrations under this Section
2.1 shall be on such appropriate registration form of the SEC (i) as shall be
reasonably selected by the Company, and (ii) which shall be available for the
sale of Registrable Securities in accordance with the intended method or methods
of disposition specified in the requests for registration.

            2.2 Incidental Registration.

            (a) Right to Include Registrable Securities. If the Company at any
time or from time to time proposes to register any of its securities under the
Securities Act (other than in a registration on Form S-4 or S-8 or any successor
form to such forms and other than pursuant to Section 2.1 or 2.3) whether or not
pursuant to registration rights granted to other holders of its securities and
whether or not for sale for its own account, the Company shall deliver prompt
written notice (which notice shall be given at least five Business Days prior to
filing with the SEC such proposed registration) to all Holders of Registrable
Securities of its intention to undertake such registration, describing in
reasonable detail the proposed registration and distribution (including the
anticipated range of the proposed offering price, the class and number of
securities proposed to be registered and the distribution arrangements) and of
such Holders' right to participate in such registration under this Section 2.2
as hereinafter provided. Subject to the other provisions of this paragraph (a)
and Section 2.2(b), upon the written request of any Holder made within five
Business Days after the receipt of such written notice (which request shall
specify the amount of Registrable Securities to be registered and the intended
method of disposition thereof), the Company shall effect the registration under
the Securities Act of all Registrable Securities requested by Holders to be so
registered (an "Incidental Registration"), to the extent requisite to permit the
disposition (in accordance with the intended methods thereof as aforesaid) of
the Registrable Securities so to be registered, by inclusion of such Registrable
Securities in the Registration Statement which covers the securities which the
Company proposes to register and shall cause such Registration Statement to
become and remain effective with

                                      -9-
<PAGE>

respect to such Registrable Securities in accordance with the registration
procedures set forth in Section 4. If an Incidental Registration involves an
Underwritten Offering, immediately upon notification to the Company from the
Underwriter of the price at which such securities are to be sold, the Company
shall so advise each participating Holder. If such price is 15% (or $1.50 per
share, whichever is less) less than the Current Market Price of the Registrable
Securities on the date that a Holder delivered its notice requesting inclusion
in an Incidental Registration, such Holder may, at any time prior to the
effective date of the Incidental Registration Statement (and for any reason),
revoke such request by delivering written notice to the Company revoking such
requested inclusion.

            If at any time after giving written notice of its intention to
register any securities and prior to the effective date of the Incidental
Registration Statement filed in connection with such registration, the Company
shall determine for any reason not to register or to delay registration of such
securities, the Company may, at its election, give written notice of such
determination to each Holder of Registrable Securities and, thereupon, (A) in
the case of a determination not to register, the Company shall be relieved of
its obligation to register any Registrable Securities in connection with such
registration (but not from its obligation to pay the Registration Expenses
incurred in connection therewith), without prejudice, however, to the rights of
Holders to cause such registration to be effected as a registration under
Section 2.1 and (B) in the case of a determination to delay such registration,
the Company shall be permitted to delay the registration of such Registrable
Securities for the same period as the delay in registering such other
securities; provided, however, that if such delay shall extend beyond 120 days
from the date the Company received a request to include Registrable Securities
in such Incidental Registration, then the Company shall again give all Holders
the opportunity to participate therein and shall follow the notification
procedures set forth in the preceding paragraph. There is no limitation on the
number of such Incidental Registrations pursuant to this Section 2.2 which the
Company is obligated to effect; provided, however, that the Company shall not be
obligated to include any shares requested by a Holder unless the number of
shares requested by such Holder has a Current Market Price of at least
$5,000,000, or is all of the Registrable Securities held by a Holder.

            The registration rights granted pursuant to the provisions of this
Section 2.2 shall be in addition to the registration rights granted pursuant to
the other provisions of Section 2 hereof.

            (b) Priority in Incidental Registration. If an Incidental
Registration involves an Underwritten Offering (on a firm commitment basis), and
the sole or the lead managing Underwriter, as the case may be, of such
Underwritten Offering shall advise the Company in writing (with a copy to each
Holder requesting registration) on or before the date five days prior to the
date then scheduled for such offering that, in its opinion, the amount of
securities (including Registrable Securities) requested to be included in such
registration exceeds the amount which can be sold in such offering without
materially interfering with the successful marketing of the securities being
offered (such writing to state the approximate number of such securities which
may be included in such offering without such effect), the Company shall include
in such registration, to the extent of the number which the Company is so
advised may be included in such offering without such effect, (i) in the case of
a registration initiated by the Company, (A) first, the securities that the
Company proposes to register for its own account, and

                                      -10-
<PAGE>

(B) second, on a pro rata basis, in proportion to the number of securities
requested to be included in such registration, the Registrable Securities
requested to be included in such registration by the Holders and securities of
the Company requested to be included by the holders of other securities of the
Company to be registered on behalf of any other Person, and (ii) in the case of
a registration initiated by any Persons other than the Company, (A) first, the
securities of the Company requested to be included in such registration by any
Persons initiating such registration, and (B) second, on a pro rata basis, in
proportion to the number of securities requested to be included in such
registration, the Registrable Securities requested to be included in such
registration by the Holders, the securities requested to be included in such
registration by any other Persons and the securities that the Company proposes
to register for its own account; provided, however, that in the event the
Company will not, by virtue of this Section 2.2(b), include in any such
registration all of the Registrable Securities of any Holder requested to be
included in such registration, such Holder may, upon written notice to the
Company given within three days of the time such Holder first is notified of
such matter, reduce the amount of Registrable Securities it desires to have
included in such registration, whereupon only the Registrable Securities, if
any, it desires to have included will be so included and the Holders not so
reducing shall be entitled to a corresponding pro rata increase in the amount of
Registrable Securities to be included in such registration.

            (c) Selection of Underwriters. If any Incidental Registration
involves an Underwritten Offering, the sole or managing Underwriter(s) and any
additional investment bankers and managers to be used in connection with such
registration shall be selected by the Company in its sole discretion.

      2.3   Shelf Registration.

            (a) Shelf Registration. If a request made pursuant to Section 2.1 is
for a Shelf Registration, the Company shall use its reasonable best efforts to
keep the Shelf Registration continuously effective through the date on which all
of the Registrable Securities covered by such Shelf Registration may be sold
pursuant to Rule 144(k) under the Securities Act (or any successor provision
having similar effect); provided, however, that prior to the termination of such
Shelf Registration, the Company shall first furnish to each Holder of
Registrable Securities participating in such Shelf Registration (i) an opinion,
in form and substance reasonably satisfactory to each Initial Holder of the
Registration, of counsel for the Company satisfactory to each Initial Holder of
the Registration (it being agreed that Simpson Thacher & Bartlett LLP is
satisfactory) stating that such Registrable Securities are freely saleable
pursuant to Rule 144(k) under the Securities Act (or any successor provision
having similar effect) or (ii) a "No-Action Letter" from the staff of the SEC
stating that the SEC would not recommend enforcement action if the Registrable
Securities included in such Shelf Registration were sold in a public sale other
than pursuant to an effective registration statement.

            2.4 Underwritten Offerings.

            (a) Demand Underwritten Offerings. If requested by the sole or lead
managing Underwriter and the Initial Holders of the Registration for any
Underwritten Offering effected pursuant to a Demand Registration, the Company
shall enter into a customary underwriting agreement with the Underwriters for
such offering to contain such representations

                                      -11-
<PAGE>

and warranties by the Company and the Initial Holders of the Registration and
such other terms as are generally prevailing in agreements of that type,
including, without limitation, indemnification and contribution to the effect
and to the extent provided in Section 5.

            (b) Holders of Registrable Securities to be Parties to Underwriting
Agreement. The Holders of Registrable Securities to be distributed by
Underwriters in an Underwritten Offering contemplated by Section 2 shall be
parties to the underwriting agreement between the Company and such Underwriters
and may, at such Holders' option, require that any or all of the representations
and warranties by, and the other agreements on the part of, the Company to and
for the benefit of such Underwriters shall also be made to and for the benefit
of such Holders of Registrable Securities and that any or all of the conditions
precedent to the obligations of such Underwriters under such underwriting
agreement be conditions precedent to the obligations of such Holders of
Registrable Securities; provided, however, that the Company shall not be
required to make any representations or warranties with respect to written
information specifically provided by a selling Holder for inclusion in the
Registration Statement. No Holder shall be required to make any representations
or warranties to, or agreements with, the Company or (in the case of an
Incidental Registration) the Underwriters other than representations, warranties
or agreements regarding such Holder, such Holder's Registrable Securities and
such Holder's intended method of disposition.

            (c) Participation in Underwritten Registration. Notwithstanding
anything herein to the contrary, no Person may participate in any underwritten
registration hereunder unless such Person (i) agrees to sell its securities on
the same terms and conditions provided in any underwritten arrangements approved
by the Persons entitled hereunder to approve such arrangement and (ii)
accurately completes and executes in a timely manner all questionnaires, powers
of attorney, indemnities, custody agreements, underwriting agreements and other
documents reasonably required under the terms of such underwriting arrangements.

            2.5 Expenses. The Company shall pay all Registration Expenses in
connection with any Demand Registration, Incidental Registration or Shelf
Registration whether or not such registration shall become effective and whether
or not all Registrable Securities originally requested to be included in such
registration are withdrawn or otherwise ultimately not included in such
registration, except as otherwise provided with respect to a Withdrawn Request
and a Withdrawn Demand Registration in Section 2.1(a).

            3. HOLDBACK ARRANGEMENTS

            3.1 Restrictions on Sale by Holders of Registrable Securities. Each
Holder of Registrable Securities agrees, by acquisition of such Registrable
Securities, if timely requested in writing by the sole or lead managing
Underwriter, not to make any short sale of, loan, grant any option for the
purchase of or effect any public sale or distribution, including a sale pursuant
to Rule 144 (or any successor provision having similar effect) under the
Securities Act of any Registrable Securities (except as part of such
registration), during the seven days prior to, and during the time period
reasonably requested by the sole or lead managing Underwriter (or the closing
date for any Underwritten Offering sold pursuant to a Shelf Registration), not
to exceed 90 days, beginning on the effective date of the applicable
registration statement, unless the sole or lead Managing Underwriter in such
Underwritten Offering otherwise agrees; provided, that

                                      -12-
<PAGE>

the Company, each officer and director of the Company and each other holder of
5% or more of the equity securities (or any security convertible into or
exchangeable or exercisable for any of its equity securities) of the Company so
agree.

            3.2 Restrictions on Sale by the Company and Others. The Company
agrees that if timely requested in writing by the sole or lead managing
Underwriter in an Underwritten Offering of any Registrable Securities, not to
make any short sale of, loan, grant any option for the purchase of or effect any
public sale or distribution of any of the Company's equity securities (or any
security convertible into or exchangeable or exercisable for any of the
Company's equity securities) during the seven days prior to, and during the time
period reasonably requested by the sole or lead managing Underwriter not to
exceed 90 days, beginning on the effective date of the applicable registration
statement (except as part of such underwritten registration or pursuant to
registrations on Forms S-4 or S-8 or any successor form to such forms), unless
the sole or lead Managing Underwriter in such Underwritten Offering otherwise
Agrees. The Company will use its reasonable best efforts to cause each director
and officer of the Company and each holder of 5% or more of the equity
securities (or any security convertible into or exchangeable or exercisable for
any of its equity securities) of the Company to so agree.

            4. REGISTRATION PROCEDURES.

            4.1 Obligations of the Company. Whenever the Company is required to
effect the registration of Registrable Securities under the Securities Act
pursuant to Section 2 of this Agreement, the Company shall, as expeditiously as
possible:

            (a) prepare and file with the SEC (promptly, and in any event within
45 days after receipt of a request to register Registrable Securities) the
requisite Registration Statement to effect such registration, which Registration
Statement shall comply as to form in all material respects with the requirements
of the applicable form and include all financial statements required by the SEC
to be filed therewith, and the Company shall use its reasonable best efforts to
cause such Registration Statement to become effective (promptly, and in any
event within 60 days of the initial filing of the Registration Statement with
the SEC) (provided, however, that the Company may discontinue any registration
of its securities that are not Registrable Securities, and, under the
circumstances specified in Section 2.2, its securities that are Registrable
Securities); and provided further, that before filing a Registration Statement
or Prospectus or any amendments or supplements thereto, or comparable statements
under securities or blue sky laws of any jurisdiction, the Company shall (i)
provide Holders' Counsel and any other Inspector with an adequate and
appropriate opportunity to participate in the preparation of such Registration
Statement and each Prospectus included therein (and each amendment or supplement
thereto or comparable statement) to be filed with the SEC, which documents shall
be subject to the review and comment of Holders' Counsel, and (ii) not file any
such Registration Statement or Prospectus (or amendment or supplement thereto or
comparable statement) with the SEC to which Holder's Counsel, any selling Holder
or any other Inspector shall have reasonably objected on the grounds that such
filing does not comply in all material respects with the requirements of the
Securities Act or of the rules or regulations thereunder;

            (b) prepare and file with the SEC such amendments and supplements to
such Registration Statement and the Prospectus used in connection therewith as
may be necessary (i)

                                      -13-
<PAGE>

to keep such Registration Statement effective, and (ii) to comply with the
provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by such Registration Statement, in each case
until such time as all of such Registrable Securities have been disposed of in
accordance with the intended methods of disposition by the seller(s) thereof set
forth in such Registration Statement or if shorter, during the time period
required by this Agreement;

            (c) furnish, without charge, to each selling Holder of such
Registrable Securities and each Underwriter, if any, of the securities covered
by such Registration Statement, such number of copies of such Registration
Statement, each amendment and supplement thereto (in each case including all
exhibits), and the Prospectus included in such Registration Statement (including
each preliminary Prospectus) in conformity with the requirements of the
Securities Act, and other documents, as such selling Holder and Underwriter may
reasonably request in order to facilitate the public sale or other disposition
of the Registrable Securities owned by such selling Holder (the Company hereby
consenting to the use in accordance with applicable law of each such
Registration Statement (or amendment or post-effective amendment thereto) and
each such Prospectus (or preliminary prospectus or supplement thereto) by each
such selling Holder of Registrable Securities and the Underwriters, if any, in
connection with the offering and sale of the Registrable Securities covered by
such Registration Statement or Prospectus);

            (d) prior to any public offering of Registrable Securities, use its
reasonable best efforts to register or qualify all Registrable Securities and
other securities covered by such Registration Statement under such other
securities or blue sky laws of such jurisdictions as any selling Holder of
Registrable Securities covered by such Registration Statement or the sole or
lead managing Underwriter, if any, may reasonably request to enable such selling
Holder to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such selling Holder and to continue such registration or
qualification in effect in each such jurisdiction for as long as such
Registration Statement remains in effect (including through new filings or
amendments or renewals), and do any and all other acts and things which may be
necessary or advisable to enable any such selling Holder to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
selling Holder;

            (e) use its reasonable best efforts to obtain all other approvals,
consents, exemptions or authorizations from such governmental agencies or
authorities as may be necessary to enable the selling Holders of such
Registrable Securities to consummate the disposition of such Registrable
Securities;

            (f) notify Holders' Counsel, each Holder of Registrable Securities
covered by such Registration Statement and the sole or lead managing
Underwriter, if any: (i) when the Registration Statement, any pre-effective
amendment, the Prospectus or any prospectus supplement related thereto or
post-effective amendment to the Registration Statement has been filed and, with
respect to the Registration Statement or any post-effective amendment, when the
same has become effective, (ii) of any request by the SEC or any state
securities or blue sky authority for amendments or supplements to the
Registration Statement or the Prospectus related thereto or for additional
information, (iii) of the issuance by the SEC of any stop order suspending the
effectiveness of the Registration Statement or the initiation or threat of any
proceedings for that purpose, (iv) of the receipt by the Company of any
notification with respect

                                      -14-
<PAGE>

to the suspension of the qualification of any Registrable Securities for sale
under the securities or blue sky laws of any jurisdiction or the initiation of
any proceeding for such purpose, (v) of the existence of any fact of which the
Company becomes aware or the happening of any event which results in (A) the
Registration Statement containing an untrue statement of a material fact or
omitting to state a material fact required to be stated therein or necessary to
make any statements therein not misleading, or (B) the Prospectus included in
such Registration Statement containing an untrue statement of a material fact or
omitting to state a material fact required to be stated therein or necessary to
make any statements therein, in the light of the circumstances under which they
were made, not misleading, (vi) if at any time the representations and
warranties contained in any underwriting agreement in respect of such offering
cease to be true and correct in all material respects, and (vii) of the
Company's reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate or that there exists circumstances
not yet disclosed to the public which make further sales under such Registration
Statement inadvisable pending such disclosure and post-effective amendment; and,
if the notification relates to an event described in any of the clauses (ii)
through (vii) of this Section 4.1(f), the Company shall promptly prepare a
supplement or post-effective amendment to such Registration Statement or related
Prospectus or any document incorporated therein by reference or file any other
required document so that (1) such Registration Statement shall not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading,
and (2) as thereafter delivered to the purchasers of the Registrable Securities
being sold thereunder, such Prospectus shall not include an untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein in the light of the circumstances
under which they were made not misleading (and shall furnish to each such Holder
and each Underwriter, if any, a reasonable number of copies of such Prospectus
so supplemented or amended); and if the notification relates to an event
described in clause (iii) of this Section 4.1(f), the Company shall take all
reasonable action required to prevent the entry of such stop order or to remove
it if entered;

            (g) make available for inspection by any selling Holder of
Registrable Securities, any sole or lead managing Underwriter participating in
any disposition pursuant to such Registration Statement, Holders' Counsel and
any attorney, accountant or other agent retained by any such seller or any
Underwriter (each, an "Inspector" and, collectively, the "Inspectors"), all
financial and other records, pertinent corporate documents and properties of the
Company and any subsidiaries thereof as may be in existence at such time
relevant to the Offering (collectively, the "Records") as shall be necessary, in
the reasonable opinion of such Holders' and such Underwriters' respective
counsel, to enable them to exercise their due diligence responsibility and to
conduct a reasonable investigation within the meaning of the Securities Act, and
cause the Company's and any subsidiaries' officers, directors and employees, and
the independent public accountants of the Company, to supply all information
reasonably requested by any such Inspectors in connection with such Registration
Statement;

            (h) obtain an opinion from the Company's counsel and a "cold
comfort" letter from the Company's independent public accountants who have
certified the Company's financial statements included or incorporated by
reference in such Registration Statement, in each case dated the effective date
of such Registration Statement (and if such registration involves an
Underwritten Offering, dated the date of the closing under the underwriting
agreement), in

                                      -15-
<PAGE>

customary form and covering such matters as are customarily covered by such
opinions and "cold comfort" letters delivered to underwriters in underwritten
public offerings, which opinion and letter shall be in customary form, and
furnish to each Holder participating in the offering and to each Underwriter, if
any, a copy of such opinion and letter addressed to such Holder (in the case of
the opinion) and Underwriter (in the case of the opinion and the "cold comfort"
letter);

            (i) provide a CUSIP number for all Registrable Securities and
provide and cause to be maintained a transfer agent and registrar for all such
Registrable Securities covered by such Registration Statement not later than the
effectiveness of such Registration Statement;

            (j) otherwise use its reasonable best efforts to comply with all
applicable rules and regulations of the SEC and any other governmental agency or
authority having jurisdiction over the offering, and make available to its
security holders, as soon as reasonably practicable but no later than 90 days
after the end of any 12-month period, an earnings statement (i) commencing at
the end of any month in which Registrable Securities are sold to Underwriters in
an Underwritten Offering and (ii) commencing with the first day of the Company's
calendar month next succeeding each sale of Registrable Securities after the
effective date of a Registration Statement, which statement shall cover such
12-month periods, in a manner which satisfies the provisions of Section 11(a) of
the Securities Act and Rule 158 thereunder;

            (k) if so requested by an Initial Holder of the Registration, use
its reasonable best efforts to cause all such Registrable Securities to be duly
included for quotation on the national securities exchange on which the
Company's similar securities are then listed, if applicable, or if securities of
the Company are not at the time listed on any national securities exchange (or
if the listing of Registrable Securities is not permitted under the rules of
each national securities exchange on which the Company's securities are then
listed), on a national securities exchange to which it meets the listing
requirements designated by the Initial Holders of the Registration;

            (l) enter into and perform customary agreements (including, if
applicable, an underwriting agreement in customary form) and provide officers'
certificates and other customary closing documents;

            (m) reasonably cooperate with each selling Holder of Registrable
Securities and each Underwriter participating in the disposition of such
Registrable Securities and their respective counsel in connection with any
filings required to be made with the NYSE and make reasonably available its
employees and personnel and otherwise provide reasonable assistance to the
Underwriters (taking into account the needs of the Company's businesses and the
requirements of the marketing process) in the marketing of Registrable
Securities in any Underwritten Offering;

            (n) cooperate with the selling Holders of Registrable Securities and
the sole or lead managing Underwriter, if any, to facilitate the timely
preparation and delivery of certificates not bearing any restrictive legends
representing the Registrable Securities to be sold, and cause such Registrable
Securities to be issued in such denominations and registered in such names in
accordance with the underwriting agreement prior to any sale of Registrable
Securities to the Underwriters or, if not an Underwritten Offering, in
accordance with the instructions of the

                                      -16-
<PAGE>

selling Holders of Registrable Securities at least three business days prior to
any sale of Registrable Securities;

            (o) keep each selling Holder of Registrable Securities advised in
writing as to the initiation and progress of any registration under Section 2
hereunder;

            (p) furnish to each Holder participating in the offering and the
sole or lead managing Underwriter, if any, without charge, at least one
manually-signed copy of the Registration Statement and any post-effective
amendments thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits (including those deemed to be
incorporated by reference);

            (q) if requested by the sole or lead managing Underwriter or any
selling Holder of Registrable Securities, immediately incorporate in a
prospectus supplement or post-effective amendment such information concerning
such Holder of Registrable Securities, the Underwriters or the intended method
of distribution as the sole or lead managing Underwriter or the selling Holder
of Registrable Securities reasonably requests to be included therein and as is
appropriate in the reasonable judgment of the Company, including, without
limitation, information with respect to the number of shares of the Registrable
Securities being sold to the Underwriters, the purchase price being paid
therefor by such Underwriters and with respect to any other terms of the
Underwritten Offering of the Registrable Securities to be sold in such offering;
make all required filings of such Prospectus supplement or post-effective
amendment as soon as notified of the matters to be incorporated in such
Prospectus supplement or post-effective amendment; and supplement or make
amendments to any Registration Statement if requested by the sole or lead
managing Underwriter of such Registrable Securities; and

            (r) use its reasonable best efforts to take all other steps
necessary to expedite or facilitate the registration and disposition of the
Registrable Securities contemplated hereby.

            4.2 Seller Information. The Company may require each selling Holder
of Registrable Securities as to which any registration is being effected to
furnish to the Company such information regarding such seller and the
disposition of such securities as the Company may from time to time reasonably
request in writing; provided, however, that such information shall be used only
in connection with such Registration. If any Registration Statement or
comparable statement under "blue sky" laws refers to any Holder by name or
otherwise as the Holder of any securities of the Company, then such Holder shall
have the right to require (i) the insertion therein of language, in form and
substance reasonably satisfactory to such Holder and the Company, to the effect
that the holding by such Holder of such securities is not to be construed as a
recommendation by such Holder of the investment quality of the Company's
securities covered thereby and that such holding does not imply that such Holder
will assist in meeting any future financial requirements of the Company, and
(ii) in the event that such reference to such Holder by name or otherwise is not
in the judgment of the Company, as advised by counsel, required by the
Securities Act or any similar federal statute or any state "blue sky" or
securities law then in force, the deletion of the reference to such Holder.

            4.3 Notice to Discontinue. Each Holder of Registrable Securities
agrees by acquisition of such Registrable Securities that, (i) upon receipt of
any notice from the Company

                                      -17-
<PAGE>

of the happening of any event of the kind described in Section 4.1(f)(ii)
through 4.1(f)(v), such Holder shall forthwith discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such
Registrable Securities until such Holder's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 4.1(f) and, if so
directed by the Company, such Holder shall deliver to the Company (at the
Company's expense) all copies, other than permanent file copies, then in such
Holder's possession of the Prospectus covering such Registrable Securities which
is current at the time of receipt of such notice. If the Company shall give any
such notice, the Company shall extend the period during which such Registration
Statement shall be maintained effective pursuant to this Agreement (including,
without limitation, the period referred to in Section 4.1(b)) by the number of
days during the period from and including the date of the giving of such notice
pursuant to Section 4.1(f) to and including the date when the Holder shall have
received the copies of the supplemented or amended prospectus contemplated by
and meeting the requirements of Section 4.1(f).

            5. INDEMNIFICATION; CONTRIBUTION.

            5.1 Indemnification by the Company. The Company agrees to indemnify
and hold harmless, to the fullest extent permitted by law, each Holder of
Registrable Securities, its officers, directors, partners, members,
shareholders, employees, Affiliates, advisers, attorneys and agents
(collectively, "Agents") and each Person who controls such Holder (within the
meaning of the Securities Act) and its Agents with respect to each registration
which has been effected pursuant to this Agreement, against any and all losses,
claims, damages or liabilities, joint or several, actions or proceedings
(whether commenced or threatened) in respect thereof, and expenses (as incurred
or suffered and including, but not limited to, any and all expenses incurred in
investigating, preparing or defending any litigation or proceeding, whether
commenced or threatened, and the reasonable fees, disbursements and other
charges of legal counsel) in respect thereof (collectively, "Claims"), insofar
as such Claims arise out of or are based upon any untrue or alleged untrue
statement of a material fact contained in any Registration Statement or
Prospectus (including any preliminary, final or summary prospectus and any
amendment or supplement thereto) related to any such registration or any
omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, or any
violation by the Company of the Securities Act or any rule or regulation
thereunder applicable to the Company and relating to action or inaction required
of the Company in connection with any such registration, or any qualification or
compliance incident thereto; provided, however, that the Company will not be
liable in any such case to the extent that any such Claims arise out of or are
based upon any untrue statement or alleged untrue statement of a material fact
or omission or alleged omission of a material fact so made in reliance upon and
in conformity with written information furnished to the Company in an instrument
duly executed by such Holder specifically stating that it was expressly for use
therein. The Company shall enter into an agreement with any Underwriters of the
Registrable Securities to provide for customary indemnification of any such
Underwriter, their Agents and each Person who controls any such Underwriter
(within the meaning of the Securities Act). Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of any
Person who may be entitled to indemnification pursuant to this Section 5 and
shall survive the transfer of securities by such Holder or Underwriter.

                                      -18-
<PAGE>

            5.2 Indemnification by Holders. Each Holder, if Registrable
Securities held by it are included in the securities as to which a registration
is being effected, agrees to, severally and not jointly, indemnify and hold
harmless, to the fullest extent permitted by law, the Company, its directors and
officers, each other Person who participates as an Underwriter in the offering
or sale of such securities and its Agents and each Person who controls the
Company against any and all Claims, insofar as such Claims arise out of or are
based upon any untrue or alleged untrue statement of a material fact contained
in any Registration Statement or Prospectus (including any preliminary, final or
summary prospectus and any amendment or supplement thereto) related to such
registration, or any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information furnished to the
Company in an instrument duly executed by such Holder specifically stating that
it was expressly for use therein; provided, however, that the aggregate amount
which any such Holder shall be required to pay pursuant to this Section 5.2
shall in no event be greater than the amount of the net proceeds received by
such Holder upon the sale of the Registrable Securities pursuant to the
Registration Statement giving rise to such Claims less all amounts previously
paid by such Holder with respect to any such Claims.

            5.3 Conduct of Indemnification Proceedings. Promptly after receipt
by an indemnified party of notice of any Claim or the commencement of any action
or proceeding involving a Claim under this Section 5, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party pursuant to Section 5, (i) notify the indemnifying party in writing of the
Claim or the commencement of such action or proceeding; provided, however, that
the failure of any indemnified party to provide such notice shall not relieve
the indemnifying party of its obligations under this Section 5, except to the
extent the indemnifying party is materially and actually prejudiced thereby and
shall not relieve the indemnifying party from any liability which it may have to
any indemnified party otherwise than under this Section 5, and (ii) permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided, however, that any indemnified
party shall have the right to employ separate counsel and to participate in the
defense of such claim, but the fees and expenses of such counsel shall be at the
expense of such indemnified party unless (A) the indemnifying party has agreed
in writing to pay such fees and expenses, (B) the indemnifying party shall have
failed to assume the defense of such claim and employ counsel reasonably
satisfactory to such indemnified party within 20 days after receiving notice
from such indemnified party that the indemnified party believes it has failed to
do so, (C) in the reasonable judgment of any such indemnified party, based upon
advice of counsel, a conflict of interest shall exist between such indemnified
party and the indemnifying party with respect to such claims; it being
understood, however, that the indemnifying party shall not, in connection with
any one such action or separate but substantially similar or related actions in
the same jurisdiction arising out of the same general allegations or
circumstances, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (in addition to no more than one firm of local
counsel) at any time for all such indemnified parties or (D) such indemnified
party is a defendant in an action or proceeding which is also brought against
the indemnifying party and reasonably shall have concluded that there may be one
or more legal defenses available to such indemnified party which are not
available to the indemnifying party. No indemnifying party shall be liable for
any settlement of any such claim or action effected without its written consent,

                                      -19-
<PAGE>

which consent shall not be unreasonably withheld. No indemnifying party shall,
without the consent of the indemnified party, which consent shall not be
unreasonably withheld, consent to entry of any judgment or enter into any
settlement or compromise of any pending or threatened claim or action in respect
of which indemnification or contribution may be sought hereunder (whether or not
the indemnified party is an actual or potential party to such claim or action),
unless such settlement, (i) includes an unconditional release of the indemnified
party from all liability arising out of such action or claim, (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act, by or on behalf of any indemnified party, and (3) does not provide for any
action on the part of any party other than the payment of money damages which is
to be paid in full by or on behalf of the indemnifying party.

            5.4 Contribution. If the indemnification provided for in Section 5.1
or 5.2 from the indemnifying party for any reason is unavailable to (other than
by reason of exceptions provided therein), or is insufficient to hold harmless
an indemnified party hereunder in respect of any Claim, then the indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such Claim in
such proportion as is appropriate to reflect the relative fault of the
indemnifying party, on the one hand, and the indemnified party, on the other
hand, in connection with the actions which resulted in such Claim, as well as
any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, has been made by, or relates to information supplied by,
such indemnifying party or indemnified party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action. If, however, the foregoing allocation is not permitted by applicable
law, then each indemnifying party shall contribute to the amount paid or payable
by such indemnified party in such proportion as is appropriate to reflect not
only such relative faults but also the relative benefits of the indemnifying
party and the indemnified party as well as any other relevant equitable
considerations.

            The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5.4 were determined by pro rata allocation
or by any other method of allocation which does not take into account the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by a party as a result of any Claim referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth in Section 5.3, any legal or other fees, costs or expenses
reasonably incurred by such party in connection with any investigation or
proceeding. Notwithstanding anything in this Section 5.4 to the contrary, no
indemnifying party (other than the Company) shall be required pursuant to this
Section 5.4 to contribute any amount in excess of the net proceeds received by
such indemnifying party from the sale of the Registrable Securities pursuant to
the Registration Statement giving rise to such Claims, less all amounts
previously paid by such indemnifying party with respect to such Claims. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

            5.5 Other Indemnification. Indemnification similar to that
specified in the preceding Sections 5.1 and 5.2 (with appropriate modifications)
shall be given by the Company

                                      -20-
<PAGE>

and each selling Holder of Registrable Securities with respect to any required
registration or other qualification of securities under any Federal or state law
or regulation of any governmental authority, other than the Securities Act. The
indemnity agreements contained herein shall be in addition to any other rights
to indemnification or contribution which any indemnified party may have pursuant
to law or contract.

            5.6 Indemnification Payments. The indemnification and contribution
required by this Section 5 shall be made by periodic payments of the amount
thereof during the course of any investigation or defense, as and when bills are
received or any expense, loss, damage or liability is incurred.

            6. GENERAL.

            6.1 Adjustments Affecting Registrable Securities. The Company agrees
that it shall not effect or permit to occur any combination or subdivision of
shares which would adversely affect the ability of the Holder of any Registrable
Securities to include such Registrable Securities in any registration
contemplated by this Agreement or the marketability of such Registrable
Securities in any such registration.

            6.2 Registration Rights to Others. The Company is not currently
party to any agreement with respect to its securities granting any registration
rights to any Person. If the Company shall at any time hereafter provide to any
Affiliate of the Company rights with respect to the registration of such
securities under the Securities Act, (i) such rights shall not be in conflict
with or adversely affect any of the rights provided in this Agreement to the
Holders and (ii) if such rights are provided on terms or conditions more
favorable to such holder than the terms and conditions provided in this
Agreement, the Company shall provide (by way of amendment to this Agreement or
otherwise) such more favorable terms or conditions to the Holders.

            6.3 Availability of Information; Rule 144; Other Exemptions. At any
time during which the Company is not subject to the reporting requirements of
the Exchange Act, the Company shall, at any time and from time to time, upon the
request of any Holder of Registrable Securities or upon the request of any
Person designated by such Holder as a prospective purchaser of any Registrable
Securities, furnish in writing to such Holder or such prospective purchaser, as
the case may be, a statement as of a date not earlier than 12 months prior to
the date of such request of the nature of the business of the Company and the
products and services it offers and copies of the Company's most recent balance
sheet and profit and loss and retained earnings statements, together with
similar financial statements for such part of the two preceding fiscal years as
the Company shall have been in operation, all such financial statements to be
audited to the extent audited statements are reasonable available, provided,
that, in any event the most recent financial statements so furnished shall
include a balance sheet as of a date less than 16 months prior to the date of
such request, statements of profit and loss and retained earnings for the 12
months preceding the date of such balance sheet, and, if such balance sheet is
not as of a date less than 6 months prior to the date of such request,
additional statements of profit and loss and retained earnings for the period
from the date of such balance sheet to a date less than 6 months prior to the
date of such request. During any time during which the Company is not subject to
the reporting requirements of the Exchange Act and as long as any Registrable

                                      -21-
<PAGE>

Securities are outstanding, the Warrants have not yet expired or the Conversion
Warrants have not yet expired, the Company shall deliver to the Holders all
reports, financial statements and other documents required to be provided under
Article VII of the Loan Agreement, without regard to (A) whether, at any time,
such reporting requirements are required pursuant to Article VII of the Loan
Agreement and (B) whether all Liens, Reimbursement Obligations, Letter of Credit
Obligations and all other Obligations under the Loan Agreement have been paid or
whether any Lender shall have any commitment thereunder. The Company will use
its best efforts to take such steps as are necessary to allow the Company to
become, and remain, eligible to register securities on Form S-3 (or any
comparable form adopted by the SEC) for resale purposes, and to make publicly
available and available to the Holder of Registrable Securities to make sales of
Registrable Securities pursuant to such rules.

            The Company covenants that it will use its reasonable best efforts
to timely file any reports required to be filed by it under the Securities Act
or the Exchange Act (including, but not limited to, the reports under Sections
13 and 15(d) of the Exchange Act referred to in subparagraph (c) of Rule 144
under the Securities Act), and that it shall take such further action as any
Holder of Registrable Securities may reasonably request, all to the extent
required from time to time to enable such Holder to sell Registrable Securities
without registration under the Securities Act within the limitation of the
exemptions provided by (i) Rule 144 under the Securities Act, as such rule may
be amended from time to time, or (ii) any other rule or regulation now existing
or hereafter adopted by the SEC. The Company will furnish to any Holder of
Registrable Securities, upon request made by such Holder at any time, a written
statement signed by the Company, addressed to such Holder, as to whether the
Company has complied with the current public information requirements of Rule
144 or Rule 144A. The Company will, at the request of any Holder of Registrable
Securities (upon receipt from such Holder of a certificate certifying (i) that
such Holder has held such Registrable Securities for a period of not less than
one (1) year, and (ii) that such Holder has not been an affiliate (as defined in
Rule 144) of the Company for more than the ninety (90) preceding days), remove
from the stock certificates representing such Registrable Securities that
portion of any restrictive legend which relates to the registration provisions
of the Securities Act.

            6.4 Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified,
supplemented or terminated, and waivers or consents to departures from the
provisions hereof may not be given, without the written consent of the Company
and each Initial Holder; provided, however, that no such amendment,
modification, supplement, waiver or consent to departure shall reduce the
aforesaid percentage of Registrable Securities without the written consent of
all of the Holders of Registrable Securities; and provided further, that nothing
herein shall prohibit any amendment, modification, supplement, termination,
waiver or consent to departure the effect of which is limited only to those
Holders who have agreed to such amendment, modification, supplement,
termination, waiver or consent to departure.

            6.5 Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, telecopier, any
courier guaranteeing overnight delivery or first class registered or certified
mail, return receipt requested, postage prepaid, addressed to the applicable
party at the address set forth below or such other address as

                                      -22-
<PAGE>

may hereafter be designated in writing by such party to the other parties in
accordance with the provisions of this Section:

If to the Company:                 Retail Ventures, Inc.
                                   3241 Westerville Road
                                   Columbus, Ohio  43224
                                   Attn:  James McGrady
                                          Chief Financial Officer
                                   Fax No. (614) 473-2721

with copies to:                    Retail Ventures, Inc.
                                   3241 Westerville Road
                                   Columbus, Ohio 43224
                                   Attn: Julia A. Davis
                                         General Counsel
                                   Fax No. (614) 337-4682

If to the Initial Holders:         Cerberus Partners, L.P.
                                   299 Park Avenue
                                   Floors 21-23
                                   New York, NY 10171
                                   Attn: Lenard Tessler
                                   Fax No. (212) 755-3009

with copies to:                    Schulte Roth & Zabel LLP
                                   919 Third Avenue
                                   New York, NY 10022
                                   Attn: Stuart D. Freedman, Esq.
                                   Fax No.(212) 593-5955

                                   Schottenstein Stores Corporation
                                   1800 Moler Road
                                   Columbus, OH 43207
                                   Attn: Irwin A. Bain
                                   Fax No.(614) 443-0972

with copies to:                    Wachtell, Lipton, Rosen & Katz
                                   51 West 52nd Street
                                   New York, New York 10019
                                   Attn:  Scott K. Charles, Esq.
                                   Fax No.(212) 403-2000

                                      -23-
<PAGE>

                                   Back Bay Capital Funding LLC
                                   40 Broad Street, 10th Floor
                                   Boston, MA 02109
                                   Attn: William Chan
                                   Fax No: (617) 434-4185

                                   If to any subsequent Holder, to the address
                                   of such Person set forth in the records of
                                   the Company.

            All such notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; when receipt
is acknowledged, if telecopied; on the next business day, if timely delivered to
a courier guaranteeing overnight delivery; and five days after being deposited
in the mail, if sent first class or certified mail, return receipt requested,
postage prepaid.

            6.6 Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective heirs,
successors and permitted assigns (including any permitted transferee of the
Warrants, Conversion Warrants or Registrable Securities). Any Holder may assign
to any permitted (as determined under the Warrants, the Conversion Warrants and
Loan Agreement) transferee of its Warrants, Conversion Warrants or Registrable
Securities (other than a transferee that acquires such Registrable Securities in
a registered public offering or pursuant to a sale under Rule 144 of the
Securities Act (or any successor rule)), its rights and obligations under this
Agreement; provided, however, if any permitted transferee shall take and hold
the Warrants, Conversion Warrants or Registrable Securities, such transferee
shall promptly notify the Company and by taking and holding such Registrable
Securities such permitted transferee shall automatically be entitled to receive
the benefits of and be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement as if it were a party
hereto (and shall, for all purposes, be deemed a Holder under this Agreement).
If the Company shall so request, any heir, successor or permitted assign
(including any permitted transferee) wishing to avail itself of the benefits of
this Agreement shall agree in writing to acquire and hold the Registrable
Securities subject to all of the terms hereof. For purposes of this Agreement,
"successor" for any entity other than a natural person shall mean a successor to
such entity as a result of such entity's merger, consolidation, sale of
substantially all of its assets, or similar transaction. Except as provided
above or otherwise permitted by this Agreement, neither this Agreement nor any
right, remedy, obligation or liability arising hereunder or by reason hereof
shall be assignable by any Holder or by the Company without the consent of the
other parties hereto.

            6.7 Counterparts. This Agreement may be executed in two or more
counterparts, each of which, when so executed and delivered, shall be deemed to
be an original, but all of which counterparts, taken together, shall constitute
one and the same instrument.

            6.8 Descriptive Headings, Etc. The headings in this Agreement are
for convenience of reference only and shall not limit or otherwise affect the
meaning of terms contained herein. Unless the context of this Agreement
otherwise requires: (1) words of any

                                      -24-
<PAGE>

gender shall be deemed to include each other gender; (2) words using the
singular or plural number shall also include the plural or singular number,
respectively; (3) 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, and Section and
paragraph references are to the Sections and paragraphs of this Agreement unless
otherwise specified; (4) the word "including" and words of similar import when
used in this Agreement shall mean "including, without limitation," unless
otherwise specified; (5) "or" is not exclusive; and (6) provisions apply to
successive events and transactions.

            6.9 Severability. In the event that any one or more of the
provisions, paragraphs, words, clauses, phrases or sentences contained herein,
or the application thereof in any circumstances, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision, paragraph, word, clause, phrase or
sentence in every other respect and of the other remaining provisions,
paragraphs, words, clauses, phrases or sentences hereof shall not be in any way
impaired, it being intended that all rights, powers and privileges of the
parties hereto shall be enforceable to the fullest extent permitted by law.

            6.10 CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. THE VALIDITY OF
THIS AGREEMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, AND
THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER
OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

            THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN
CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED ONLY IN THE STATE
AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK. THE
COMPANY AND THE INITIAL HOLDERS WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE
LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR
TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH
THIS SECTION 6.10. NOTHING HEREIN CONTAINED SHALL BE DEEMED TO AFFECT THE RIGHT
OF ANY PARTY TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW OR COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY OTHER PARTY IN ANY OTHER
JURISDICTION TO ENFORCE JUDGMENTS OBTAINED IN ANY ACTION, SUIT OR PROCEEDING
BROUGHT PURSUANT TO THIS SECTION.

            THE COMPANY AND THE INITIAL HOLDERS HEREBY WAIVE THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS. THE COMPANY AND THE INITIAL HOLDERS REPRESENT THAT EACH HAS
REVIEWED THIS WAIVER AND EACH

                                      -25-
<PAGE>

KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

            6.11 Remedies; Specific Performance. The parties hereto acknowledge
that money damages would not be an adequate remedy at law if any party fails to
perform in any material respect any of its obligations hereunder, and
accordingly agree that each party, in addition to any other remedy to which it
may be entitled at law or in equity, shall be entitled to seek to compel
specific performance of the obligations of any other party under this Agreement,
without the posting of any bond, in accordance with the terms and conditions of
this Agreement in any court specified in Section 6.10 hereof, and if any action
should be brought in equity to enforce any of the provisions of this Agreement,
none of the parties hereto shall raise the defense that there is an adequate
remedy at law. Except as otherwise provided by law, a delay or omission by a
party hereto in exercising any right or remedy accruing upon any such breach
shall not impair the right or remedy or constitute a waiver of or acquiescence
in any such breach. No remedy shall be exclusive of any other remedy. All
available remedies shall be cumulative.

            6.12 Entire Agreement. This Agreement, the Loan Agreement, the
Warrants and the Conversion Warrants and any agreements between the parties
expressly referenced herein or therein (collectively, the "Other Agreements")
are intended by the parties as a final expression of their agreement and
intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, representations, warranties,
covenants or undertakings relating to such subject matter, other than those set
forth or referred to herein or in the Other Agreements. This Agreement and the
Other Agreements supersede all prior agreements and understandings between the
Company and the other parties to this Agreement with respect to such subject
matter.

            6.13 Further Assurances. Each party hereto shall do and perform or
cause to be done and performed all such further acts and things and shall
execute and deliver all such other agreements, certificates, instruments and
documents as any other party hereto reasonably may request in order to carry out
the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.

            6.14 Construction. The Company and the Initial Holders acknowledge
that each of them has had the benefit of legal counsel of its own choice and has
been afforded an opportunity to review this Agreement with its legal counsel and
that this Agreement shall be construed as if jointly drafted by the Company and
the Holders.

            6.15 No Inconsistent Agreement. The Company will not hereafter enter
into any agreement which is inconsistent with the rights granted to the Holders
in this Agreement.

            6.16 Costs and Attorneys' Fees. In the event that any action, suit
or other proceeding is instituted concerning or arising out of this Agreement,
the Company and the Initial Holders agree that the prevailing party shall
recover from the non-prevailing party all of such

                                      -26-
<PAGE>
prevailing party's costs and reasonable attorneys' fees incurred in each and
every such action, suit or other proceeding, including any and all appeals or
petitions therefrom.

            6.17 Nominees for Beneficial Owners. In the event that any
Registrable Securities are held by a nominee for the beneficial owner thereof,
the beneficial owner thereof may, at its election in writing delivered to the
Company, be treated as the holder of such Registrable Securities for purposes of
any request or other action by any holder or holders of Registrable Securities
pursuant to this Agreement or any determination of any number or percentage of
shares of Registrable Securities held by any holder or holders of Registrable
Securities contemplated by this Agreement. If the beneficial owner of any
Registrable Securities so elects, the Company may require assurances reasonably
satisfactory to it of such owner's beneficial ownership of such Registrable
Securities.

                                      -27-
<PAGE>

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

COMPANY:                              HOLDERS:

RETAIL VENTURES, INC.                 CERBERUS PARTNERS, L.P.
                                      By: CERBERUS ASSOCIATES, L.L.C.

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

                                      SCHOTTENSTEIN STORES CORPORATION

                                      By: /s/ Jeffry D. Swanson
                                          ---------------------------
                                          Name: Jeffry D. Swanson
                                          Title: SVP

                                      BACK BAY CAPITAL FUNDING LLC

                                      By: /s/
                                          ----------------------------
                                          Name:
                                          Title:

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