RETAIL VENTURES INC
EX-10.1
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<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>l36247aexv10w1.htm
<DESCRIPTION>EX-10.1
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<TITLE>EX-10.1</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><b>Exhibit&nbsp;10.1</b>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>CONSENT AND RATIFICATION AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This CONSENT AND RATIFICATION AGREEMENT (this &#147;<U>Agreement</U>&#148;) is entered into as of April
21, 2009 by and among:
</DIV>

<DIV align="left" style="margin-left: 5%; text-indent: -2%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">NATIONAL CITY BUSINESS CREDIT, INC., as Administrative Agent and Collateral Agent (in such
capacities, the &#147;<U>Agent</U>&#148;) for the Revolving Credit Lenders party to the Loan
Agreement referenced below;</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE REVOLVING CREDIT LENDERS;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FILENE&#146;S BASEMENT, INC., a Delaware corporation (the &#147;<U>Borrower</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RETAIL VENTURES, INC., an Ohio corporation (&#147;<U>RVI</U>&#148;); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FB II ACQUISITION CORP., a Delaware corporation (the &#147;<U>Purchaser</U>&#148;),
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">in consideration of the mutual covenants herein contained and benefits to be derived herefrom.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">W I T N E S S E T H:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, reference is made to that certain Second Amended and Restated Loan and Security
Agreement dated as of January&nbsp;23, 2008 (as amended, modified, supplemented or restated and in
effect from time to time, the &#147;<U>Loan Agreement</U>&#148;) by, among others, (i)&nbsp;the Borrower, (ii)
the Revolving Credit Lenders named therein, (iii)&nbsp;the Agent, and (iv)&nbsp;National City Bank, as
Issuer, pursuant to which the Agent and the Revolving Credit Lenders have agreed to provide loans
and other financial accommodations to or for the benefit of the Borrower;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, reference is further made to that certain Second Amended and Restated Guaranty dated
as of January&nbsp;23, 2008 (as amended, modified, supplemented or restated and in effect from time to
time, the &#147;<U>Guaranty</U>&#148;) by RVI and the other Facility Guarantors party thereto, in favor of
the Agent and the Secured Parties referenced therein, pursuant to which RVI and the other Facility
Guarantors jointly and severally unconditionally guarantied the payment and performance of the
Liabilities (as defined therein) of the Borrower;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, reference is further made to that certain Second Amended and Restated Security
Agreement dated as of January&nbsp;23, 2008 (as amended, modified, supplemented or restated and in
effect from time to time, the &#147;<U>Security Agreement</U>&#148;) by and among RVI and the other Facility
Guarantors party thereto (as Debtors thereunder) and the Collateral Agent, pursuant to which RVI
and the other Facility Guarantors granted a security interest in substantially all of their assets
(other than the Excluded Assets (as defined therein)) to the Collateral Agent, for the ratable
benefit of the Secured Parties (as defined therein) to secure their obligations arising under the
Guaranty;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, reference is further made to that certain Second Amended and Restated Ownership
Interest Pledge Agreement dated as of January&nbsp;23, 2008 (as amended, modified,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">supplemented or
restated and in effect from time to time, the &#147;<U>Pledge Agreement</U>&#148;) by RVI and the Collateral
Agent, pursuant to which, among other things, RVI pledged to the Collateral Agent, as security for
its obligations arising under the Guaranty and as a supplement to the grant of security interest
provided in the Security Agreement, all of RVI&#146;s right, title and interest in and to (i)&nbsp;the shares
of capital stock and other equity interests of the Borrower (the &#147;<U>Borrower Shares</U>&#148;), and
(ii)&nbsp;the limited liability company interests of FB Services LLC (&#147;<U>Services LLC</U>&#148;) (the
&#147;<U>Services LLC Interests</U>&#148;) and its wholly-owned subsidiary, FB Leasing Services LLC
(&#147;<U>Leasing LLC</U>&#148;) (the &#147;<U>Leasing LLC Interests</U>&#148;, and together with the Services LLC
Interests, the &#147;<U>LLC Interests</U>&#148;, and together with the Borrower Shares, collectively, the
&#147;<U>Transferred Interests</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, reference is made to that certain Purchase Agreement dated as of April&nbsp;21, 2009 (the
&#147;<U>Purchase Agreement</U>&#148;), by and between the Purchaser and RVI (as Seller thereunder), a true
and complete copy of which is annexed hereto as <U>Exhibit&nbsp;A</U>, pursuant to which RVI has agreed
to sell, and the Purchaser has agreed to purchase, the Transferred Interests (the &#147;<U>Sale</U>&#148;)
subject to the security interests in the Transferred Interests held by the Agent, for the ratable
benefit of the Secured Parties;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Borrower has advised the Agent and the Revolving Credit Lenders that
contemporaneously with the execution of the Purchase Agreement, the Borrower intends to incur
Indebtedness in favor of Mesirow Insurance Services, Inc. (the &#147;<U>Insurance Lender</U>&#148;) in the
amount of $681,451.83 (the &#147;<U>Insurance Indebtedness</U>&#148;) pursuant to that certain Premium
Finance Agreement dated as of April&nbsp;21, 2009 (the &#147;<U>Insurance Agreement</U>&#148;) by and between the
Borrower and the Insurance Lender, a true and complete copy of which is annexed hereto as
<U>Exhibit&nbsp;B</U>, for the purpose of financing the premiums due under the Borrower&#146;s insurance
policies being issued on or about the date hereof, and that as security for such Insurance
Indebtedness, the Borrower intends to grant a security interest (the &#147;<U>Insurance Lien</U>&#148;) in
favor of the Insurance Lender on all unearned premiums or other sums which may become payable under
the insurance policies described in the Insurance Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to the Loan Agreement, the incurrence of the Insurance Indebtedness and the
granting of the Insurance Lien (collectively, the &#147;<U>Insurance Transactions</U>&#148;) are prohibited
absent the prior written consent of the Agents and the Revolving Credit Lenders;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Purchase Agreement provides that following the Closing (as defined in the
Purchase Agreement), the Purchaser shall transfer the Services LLC Interests to the Borrower (the
&#147;<U>LLC Transfer</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to the Loan Agreement, the Security Agreement and the Pledge Agreement, RVI
is prohibited from selling any Collateral, including, without limitation, the Transferred
Interests, without the prior written consent of the Agent and the Revolving Credit Lenders (except
to the extent otherwise set forth in the Loan Agreement);
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, RVI and the Borrower have requested that the Agent and the Revolving Credit Lenders
consent to the Sale, the LLC Transfer, and the Insurance Transactions and make the other agreements
described herein;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Agent and the Revolving Credit Lenders are willing to so consent and make such
other agreements, subject in each case to the terms and conditions of this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the parties hereto hereby agree as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Definitions</U>. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Loan Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Consent</U>. In express reliance upon the terms and conditions of this letter agreement,
including without limitation, the Borrower&#146;s, RVI&#146;s, and the Purchaser&#146;s representations and
warranties herein, the Agent and the Revolving Credit Lenders hereby consent to the Sale, the
Insurance Transactions, and the LLC Transfer and waive any Event of Default which otherwise
would be occasioned thereby, subject in each case to the terms and conditions set forth
herein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Purchase Price</U>. RVI and the Purchaser each hereby acknowledges and agrees that the
entire Purchase Price to be paid by the Purchaser and all proceeds to be received by RVI
pursuant to the Purchase Agreement, including, without limitation, any Applicable Proceeds (as
defined in the Purchase Agreement) (collectively, the &#147;<U>Sale Proceeds</U>&#148;) shall be paid
directly to the Agent by federal wire transfer in immediately available funds for application
to the outstanding Liabilities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Purchase Agreement; Insurance Agreement</U>. The foregoing consent of, and waiver by,
the Agent and the Revolving Credit Lenders is also based on (i)&nbsp;the Sale being consummated and
the LLC Transfer occurring in accordance with the terms and conditions of the Purchase
Agreement annexed hereto as <U>Exhibit&nbsp;A</U>, and (ii)&nbsp;the Insurance Transactions being
consummated in accordance with the terms and conditions of the Insurance Agreement annexed
hereto as <U>Exhibit&nbsp;B</U>. Without the prior written consent of the Agent, (x)&nbsp;no material
provisions of the Purchase Agreement may be modified, amended, or waived by RVI or the
Purchaser, and (y)&nbsp;no material provisions of the Insurance Agreement may be modified, amended,
or waived by the Borrower.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Joinder by Services LLC and Leasing LLC</U>. The foregoing consent of, and waiver by,
the Agent and the Revolving Credit Lenders is also conditioned upon Services LLC&#146;s and Leasing
LLC&#146;s having previously entered into a joinder agreement, in form and substance reasonably
satisfactory to the Agent, pursuant to which, among other things, each of Services LLC and
Leasing LLC shall have joined the Loan Documents as a Facility Guarantor and shall have
granted to the Agent a security interest in its assets of the type constituting Collateral.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>No Assumption of Duties</U>. Under no circumstances shall the Agent or any Revolving
Credit Lender be obligated to perform, discharge, or assume, nor do the Agent or the</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Revolving Credit Lenders agree to perform, discharge, or assume, any obligation, duty, or
liability of RVI or the Purchaser under Purchase Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>No Waiver of Loan Documents</U>. The foregoing consent of, and waiver by, the Agent and
the Revolving Credit Lenders shall in no way constitute a modification or waiver of any of the
other terms and conditions of the Loan Agreement or any of the other Loan Documents, and the
sale or other transfer of any additional Collateral must strictly comply with the terms and
conditions of the Loan Agreement and the other Loan Documents. The consent and waiver
furnished herein relates solely to the Sale, the Insurance Transactions, and the LLC Transfer
and is not a continuing waiver.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Amendment and Ratification of Loan Documents</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon consummation of the Sale and effectiveness of the consent provided hereby,
(i)&nbsp;the Pledge Agreement shall be deemed amended by deleting from Annex A thereof the
references to &#147;Filene&#146;s Basement, Inc.&#148; and &#147;FB Services LLC&#148; and all information
relating thereto. and (ii)&nbsp;the Agent shall deliver or cause to be delivered to RVI or
its counsel Certificate Number 2, evidencing 100 shares of capital stock of the
Borrower owned by RVI, together with the stock power previously delivered to the Agent
in connection therewith, copies of each of which are annexed hereto as <U>Exhibit
C</U>, <U>provided</U> that in exchange therefor, the Purchaser shall have delivered
or caused to be delivered to the Agent all stock certificates and stock powers
evidencing the Purchaser&#146;s right, title and interest in and to the capital stock of the
Borrower as further described in Section&nbsp;11 hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as expressly provided herein, the Loan Agreement and each other Loan
Document, including, without limitation, the Guaranty, the Pledge Agreement, and the
Security Agreement, remain in full force and effect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without limiting the generality of the foregoing, (i)&nbsp;each of RVI and each
other Facility Guarantor hereby (A)&nbsp;ratifies, confirms, and reaffirms all of the terms
and conditions of the Guaranty and each of the warranties and representations made
therein, (B)&nbsp;confirms that all such terms and conditions remain in full force and
effect, and (C)&nbsp;acknowledges and agrees that the Liabilities guarantied pursuant to the
Guaranty include, without limitation, any Liabilities arising under the Loan Agreement
and the other Loan Documents and any modification, supplement, or extension thereof
(the &#147;<U>Guaranteed Debt</U>&#148;), <U>provided</U>, <U>however</U>, that the aggregate
principal amount of the Guaranteed Debt shall not be increased following the
commencement by the Borrower of a bankruptcy case as described in Section&nbsp;13 below
(except to the extent such increase arises as a result of a drawing on an L/C issued
and outstanding on the date thereof or the incurrence of any Costs of Collection), and
(ii)&nbsp;each of the Borrower, RVI and each other Facility Guarantor hereby acknowledges
and agrees that the Collateral continues to secure all of the Guaranteed Debt.</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>RVI and each Facility Guarantor acknowledges and agrees that the foregoing
ratification of the Guaranty includes the indemnification therein, and that the
indemnification would cover any claim, demand, threat, action, or cause of action
brought or asserted against any of the Agent and/or the Revolving Credit Lenders
arising out of or in any way related to the consent granted herein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As further security for its obligations under the Guaranty, RVI covenants and
agrees that it shall maintain with National City Bank an interest-bearing deposit
account, under the control of the Agent, having a balance of not less than
$2,500,000.00 at all times until such time as Guaranteed Debt (excluding the
Participation (as defined in the Participation Agreement)) shall have been indefeasibly
paid in full in cash, the Revolving Credit Lenders&#146; commitment to provide loans or
other financial accommodations to the Borrower shall have been terminated, and all
outstanding L/Cs shall have expired, been returned undrawn or otherwise cash
collateralized in a manner reasonably satisfactory to the Agent and the Issuing Bank
(collectively, &#147;<U>Paid In Full</U>&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Insurance Transactions</U>. As a condition precedent to the effectiveness of the consent
to the Insurance Transactions, the Borrower shall have provided to the Agent, in form and
substance reasonably satisfactory to the Agent, evidence of the Borrower&#146;s insurance policies
of the types and with the terms required by the Loan Agreement, together with endorsements to
such insurance policies naming the Agent as loss payee and/or additional insured and otherwise
in form and substance reasonably satisfactory to the Agent.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Transferred Interests Remain Subject to Lien of Agent</U>. As provided in Section&nbsp;1.1(a)
of the Purchase Agreement, RVI is selling the Transferred Interests to the Purchaser subject
to the security interests granted by RVI to the Agent, for the ratable benefit of the Secured
Parties. The Purchaser hereby (i)&nbsp;confirms, acknowledges and agrees that the Purchaser is
purchasing the Transferred Interests subject to such security interests on a non-recourse
basis, which shall remain in full force and effect following the Sale, and (ii)&nbsp;ratifies the
grant of such security interests (on a non-recourse basis) to the Agent, for the ratable
benefit of the Secured Parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Security Interest in Transferred Interests</U>. As a condition precedent to the
effectiveness of the consent provided hereby, the Purchaser shall execute and deliver to the
Agent (A)&nbsp;a pledge and security agreement, in form and substance satisfactory to the Agent,
evidencing the grant of security interest by the Purchaser (on a non-recourse basis) to the
Agent, for the ratable benefit of the Secured Parties, in the Transferred Interests, as
security for (i)&nbsp;RVI&#146;s obligations arising under the Guaranty, and (ii)&nbsp;the Liabilities
(including, without limitation, any Liabilities arising under the Loan Agreement and the other
Loan Documents and any modification, supplement, or extension thereof), whether now existing
or hereafter arising, and (B)&nbsp;all stock certificates and other equity interest certificates
representing the Transferred Interests, accompanied by stock powers or other appropriate
instruments of assignment thereof duly executed in blank by the Purchaser. As a further
condition precedent to the effectiveness of the consent provided hereby, (x)&nbsp;the Borrower
shall execute and deliver a pledge and security agreement, in form and</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>substance satisfactory to the Agent, evidencing the grant of security interest by the
Borrower to the Agent, for the ratable benefit of the Secured Parties, in the Services LLC
Interests, and (y)&nbsp;Services LLC shall execute and deliver a pledge and security agreement,
in form and substance satisfactory to the Agent, evidencing the grant of security interest
by Services LLC to the Agent, for the ratable benefit of the Secured Parties, in the Leasing
LLC Interests.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Retention of Chief Restructuring Officer and Independent Consultant</U>. The Borrower
acknowledges, agrees, and covenants that until such time as the Guaranteed Debt shall have
been Paid In Full, the Borrower shall continue to retain (i)&nbsp;as Chief Restructuring Officer,
Alan Cohen of Abacus Advisors Group LLC, or such other Person as approved by the board of
directors of the Borrower and accepted by the Agent and the Revolving Credit Lenders in their
discretion, and (ii)&nbsp;as Financial Consultant, Perry Mandarino of PricewaterhouseCoopers, or
such other Person as approved by the board of directors of the Borrower and accepted by the
Agent and the Revolving Credit Lenders in their discretion. RVI and the Purchaser each
acknowledges, agrees, and covenants that it will not take any actions inconsistent with the
foregoing agreement by the Borrower until such time as the Guaranteed Debt shall have been
Paid In Full. This Section&nbsp;12 may be amended by the Borrower, the Purchaser, the Agent and
the Revolving Credit Lenders from time to time without the consent of RVI, <U>provided</U>,
that any such amendment shall not increase the obligations or liabilities of RVI in any
respect (except to the extent such obligations or liabilities may otherwise be increased in
accordance with the terms of this Agreement) without the prior written consent of RVI.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Forbearance From Enforcement of Guaranty.</U> The Agent and the Revolving Credit Lenders
agree to forbear from making demand upon RVI for payment under the Guaranty until the
substantial completion of the sale and/or liquidation of the Borrower&#146;s business and assets,
so long as (i)&nbsp;all terms and conditions of this letter agreement are performed and there is no
breach hereunder by the Borrower, RVI, or the Purchaser, (ii)&nbsp;the Agent, the Revolving Credit
Lenders, and the Borrower agree upon all terms and conditions of a mutually acceptable order
for use of cash collateral (the &#147;<U>Cash Collateral Order</U>&#148;) containing terms and
conditions customary and usual for cases involving retail bankruptcy sales/liquidations, prior
to the commencement by the Borrower of a bankruptcy case, which the Borrower expects to
commence on or about April&nbsp;21, 2009, and (iii)&nbsp;no Event of Default has occurred under the Cash
Collateral Order, <U>provided</U>, that the Cash Collateral Order shall provide that in the
event RVI shall cause the Guaranteed Debt to be Paid In Full as a result of an Event of
Default under the Cash Collateral Order, RVI shall immediately assume and benefit from all
rights and obligations of the Agent under the Cash Collateral Order (including, without
limitation, to the extent permitted under applicable law, all claims, suits, causes of action
and any other right of the Agent against the Borrower).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Consent Fee</U>. Upon execution of this letter agreement, RVI shall pay to the Agent
for the ratable benefit of the Revolving Credit Lenders a consent fee in the amount of
$100,000.00. The consent fee shall be fully earned upon the execution of this letter</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>agreement and shall not be refunded or disgorged in whole or in part under any
circumstances.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Miscellaneous</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement may be executed in several counterparts and by each party on a
separate counterpart, each of which, when so executed and delivered, shall be an
original, and all of which together shall constitute one instrument.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement expresses the entire understanding of the parties with respect
to the matters set forth herein. No prior discussions or negotiations shall limit,
modify, or otherwise affect the provisions hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any determination that any provision of this Agreement or any application
hereof is invalid, illegal or unenforceable in any respect and in any instance shall
not effect the validity, legality, or enforceability of such provision in any other
instance, or the validity, legality or enforceability of any other provisions of this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower shall pay on demand all costs and expenses of the Agent and the
Revolving Credit Lenders, including, without limitation, reasonable attorneys&#146; fees, in
connection with the preparation, negotiation, execution and delivery of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower, RVI, and the Purchaser, at their expense, shall execute such
additional documents and undertake such additional actions as the Agent may reasonably
request in order to more fully evidence the agreements set forth herein,
<U>provided</U>, that as between RVI and the Purchaser, RVI shall reimburse the
Purchaser for any of the foregoing expenses.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">f.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement and all rights and obligations hereunder, including matters of
construction, validity, and performance, shall be governed by the laws of the State of
Ohio, without regard to principles of conflicts of law thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">g.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall constitute a Loan Document for all purposes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;<B>SIGNATURE PAGES FOLLOW</B>&#093;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first
above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">NATIONAL CITY BUSINESS CREDIT, INC., as Agent and as</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">a Revolving Credit Lender</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Signature Page to Consent and Ratification Agreement
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">WELLS FARGO RETAIL FINANCE, LLC, as a Revolving Credit Lender</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Signature Page to Consent and Ratification Agreement
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">FILENE&#146;S BASEMENT, INC., as Borrower</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Signature Page to Consent and Ratification Agreement
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">RETAIL VENTURES, INC., as RVI</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
James A. McGrady
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer, Chief Financial
Officer, Treasurer and Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Signature Page to Consent and Ratification Agreement
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">FB II ACQUISITION CORP., as Purchaser</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Scott Rusczyk
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Signature Page to Consent and Ratification Agreement
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Acknowledged and Agreed (for purposes of
Section&nbsp;8 and 15 only):

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT style="white-space: nowrap">RETAIL VENTURES LICENSING, INC., as a Facility Guarantor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
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</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT style="white-space: nowrap">RETAIL VENTURES IMPORTS, INC., as a Facility Guarantor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
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</TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT style="white-space: nowrap">RETAIL VENTURES SERVICES, INC., as  a Facility Guarantor</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">FB SERVICES LLC, as a Facility Guarantor</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">FB LEASING SERVICES LLC, as a Facility Guarantor</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Signature Page to Consent and Ratification Agreement
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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</HTML>
</TEXT>
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