<SUBMISSION>
<ACCESSION-NUMBER>0000950152-06-004923
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20060530
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20060605
<DATE-OF-FILING-DATE-CHANGE>20060605
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>DSW Inc.
<CIK>0001319947
<ASSIGNED-SIC>5661
<IRS-NUMBER>310746639
<STATE-OF-INCORPORATION>OH
<FISCAL-YEAR-END>0129
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-32545
<FILM-NUMBER>06885115
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>4150 EAST 5TH AVENUE
<CITY>COLUMBUS
<STATE>OH
<ZIP>43219
<PHONE>(614) 237-7100
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>4150 EAST 5TH AVENUE
<CITY>COLUMBUS
<STATE>OH
<ZIP>43219
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>l20668ae8vk.htm
<DESCRIPTION>DSW INC.     8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>DSW Inc.    8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>
</DIV>

<DIV align="left">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date of Report (Date of earliest event reported)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June&nbsp;5, 2006 (May&nbsp;30, 2006)</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>
<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>DSW Inc.</B>
</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 1pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top">Ohio
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">001-32545
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">31-0746639</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction<BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer<BR>
Identification No.)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">4150 E. Fifth Avenue, Columbus, Ohio</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">43219</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">(Address of principal executive offices)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(614)&nbsp;237-7100
</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 1pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt">(Registrant&#146;s telephone number, including area code)</DIV>


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


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


<DIV align="center"><DIV style="font-size: 3pt; margin-top: 1pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt">(Former name or former address, if changed since last report)</DIV>



<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (<I>see </I>General
Instruction A.2. below):</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>



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

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






<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;30, 2006, DSW Inc. (the &#147;Company&#148;) entered into an Amended and Restated Supply
Agreement (the &#147;Agreement&#148;) to supply shoes to Stein Mart, Inc. (&#147;Stein Mart&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Agreement, the Company will be the exclusive supplier of shoes (the
&#147;Merchandise&#148;) to all Stein Mart stores that have shoe departments. The Company currently supplies
Merchandise to certain Stein Mart stores. The Company will own the Merchandise until the Merchandise
is sold to the customer. The net revenue generated from the sale of
the Merchandise will be shared consistent with the current agreement
between the parties. The Agreement
terminates on December&nbsp;31, 2009, but will automatically extend for another three years in the event
that neither party gives notice of its intent not to renew.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing summary is qualified in its entirety by reference to the full and complete terms
of the Agreement, a copy of which is attached hereto as Exhibit&nbsp;10.1 and is hereby incorporated by
reference into this Item&nbsp;1.01
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">(d)&nbsp;Exhibits.
</DIV>

<DIV align="left">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
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    <TD width="88%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;Number
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Supply Agreement, dated May&nbsp;30, 2006,
between DSW Inc. and Stein Mart, Inc.</TD>
</TR>
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</TABLE>
</DIV>


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

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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Signature</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
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    <TD width="46%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="bottom" align="left"><B>DSW Inc.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&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="right" valign="bottom">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">/s/ Douglas J. Probst</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" style="border-top: 1px solid #000000">&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="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Douglas J. Probst<BR>
Executive Vice President, Chief<BR>
Financial Officer and Treasurer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: June&nbsp;5, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>



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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>l20668aexv10w1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">




<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: 18pt"><B>AMENDED AND RESTATED SUPPLY AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS AMENDED AND RESTATED SUPPLY AGREEMENT </B>(the &#147;<B>Agreement</B>&#148;) is made as of May&nbsp;30, 2006, by
and between <B>DSW INC.</B>, an Ohio corporation with a business address at 4150 East Fifth Ave, Columbus,
Ohio 43219 (the &#147;Supplier&#148;), and <B>STEIN MART, INC., </B>a Florida corporation with a business address at
1200 Riverplace Boulevard, Jacksonville, Florida 32207 (&#147;Stein Mart&#148;), and replaces in its entirety
that prior Supply Agreement between the parties hereto dated July&nbsp;18, 2002.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>BACKGROUND</U></B>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The following facts constitute the background for this Agreement:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;Stein Mart currently owns and operates certain retail stores and Supplier is a distributor
of shoes and related merchandise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;Stein Mart desires to have Supplier supply merchandise for shoe departments in all of its
stores that have shoe departments by obtaining Merchandise exclusively from Supplier which will
select the Merchandise, be the sole owner of the same, and place it in certain of Stein Mart&#146;s
stores with Stein Mart retaining a portion of the sales price of all Merchandise sold as provided
herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE</B>, in consideration of the mutual covenants and agreements contained in this
Agreement, and for other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the parties hereto, each intending to be legally bound hereby, agree as
follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. </B><U><B>DEFINITIONS</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. &#147;<U>Agreement</U>&#148; has the meaning ascribed to it in the introductory paragraph of this
instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. &#147;<U>Covered Store Fixtures</U>&#148; has the meaning ascribed to it in Section&nbsp;5 of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. &#147;<U>Covered Store Schedule</U>&#148; means that schedule of Stein Mart stores in which Shoe
Department will be supplied under this Agreement. That Schedule is attached as <B>Exhibit&nbsp;A </B>hereto,
as it is updated from time to time. The Covered Store Schedule will be amended from time to time
to include any new Stein Mart stores which include shoe departments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. &#147;<U>Covered Stores</U>&#148; means those stores operated by Stein Mart at those locations
shown on the Covered Store Schedule as those locations may change,
</DIV>

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

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

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">increase or decrease from time to time by mutual agreement of Supplier and Stein Mart during
the term of this Agreement or any renewal. Covered Stores include all Stein Mart stores which have
a shoe department, provided, however, that the parties hereto agree that the Covered Stores shall
exclude those Stein Mart stores with shoe departments not serviced by Supplier as of the date
hereof until the end of the Phase In period set forth in Section&nbsp;2.2 hereof.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. &#147;<U>Event of Default</U>&#148; has the meaning ascribed to it in Section&nbsp;12 of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. &#147;<U>Merchandise</U>&#148; means shoes and related items sold in Stein Mart&#146;s Shoe Departments
other than slippers, patio shoes and house shoes of the types typically available from accessories
vendors and typically sold in department store accessories departments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. &#147;<U>Net Revenue</U>&#148; means the gross amount received by Stein Mart for the sale of each
item of Merchandise, whether for cash or for credit, reduced by all shipping, insurance, sales
taxes, value added taxes and other excise taxes required to be paid in connection with any such
sale, adjustments, allowances, credits or refunds to customers on transactions previously included
in gross sales, and the amount of the discount in the event of a sale to any employee of Stein Mart
or Supplier. In calculating the gross amount received by Stein Mart, there shall be excluded all
returns to manufacturers or shippers, transfers, sales and exchanges among Shoe Departments, to
other locations as requested by Supplier and sales not in the ordinary course of business;
provided, however, that discounts for sales to employees, associates and similar persons shall only
be in accordance with Stein Mart&#146;s normal policies in effect from time to time and shall in no
event exceed 25% of the otherwise applicable price for the Merchandise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. &#147;<U>Opening Date</U>&#148; means that date shown on the Covered Store Schedule as such and is
the date the Shoe Department in the relevant Covered Store will be fully fixtured and stocked and
open for business under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. &#147;<U>Shoe Department</U>&#148; means the area in Covered Stores in which Stein Mart will offer
for sale the Merchandise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. &#147;<U>SKU</U>&#148; means the stock keeping unit number assigned to each separate item of
Merchandise by Supplier.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. &#147;<U>Stein Mart</U>&#148; has the meaning ascribed to it in the introductory paragraph of
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12. &#147;<U>Supplier</U>&#148; has the meaning ascribed to it in the introductory paragraph of this
Agreement.
</DIV>

<P align="center" style="font-size: 10pt">2
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13. &#147;<U>Supplier&#146;s Supervisor</U>&#148; means an individual employed by Supplier, at Supplier&#146;s
cost to provide supervision and make recommendations as to the Shoe Departments within an agreed
number of Covered Stores.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14. &#147;<U>Supply Right</U>&#148; has the meaning ascribed to it in Section&nbsp;2 of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. </B><U><B>GRANT OF SUPPLY RIGHT</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <U><B>SUPPLY RIGHT</B></U>. Except as set forth in Section&nbsp;2.2 below, Stein Mart hereby grants
to the Supplier an exclusive supply right (the &#147;<B>Supply Right"</B>) to supply Merchandise to the Shoe
Departments of all Covered Stores which Merchandise shall at all times be owned by Supplier with
Stein Mart having the right to sell such Merchandise for the benefit of Supplier and Stein Mart as
provided in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <U><B>PHASE IN.</B></U> The parties shall agree to a timetable (the &#147;<B>Phase In</B>&#148;) for Supplier
to begin supplying the Stein Mart stores not currently supplied by Supplier.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <U><B>STEIN MART EXCLUSIVITY</B></U><B>. </B>Stein Mart agrees that, subject to the Phase In
provisions contained in Section&nbsp;2.2 hereof, Stein Mart will not offer for sale any Merchandise in
any of its stores except pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <U><B>SUPPLIER EXCLUSIVITY</B></U><B>. </B>Supplier agrees that it will not supply Merchandise to
third parties through supply arrangements except (i)&nbsp;through existing supply relationships Supplier
has with third parties, including modifications to those existing relationships, which existing
relationships are listed on <B>Exhibit </B>2.4 hereto, (ii)&nbsp;through Stein Mart stores, or (iii)&nbsp;through
other third party supply arrangements with Stein Mart&#146;s consent, such consent not to be
unreasonably withheld. For purposes of the preceding sentence, Stein Mart may reasonably withhold
its consent if Stein Mart reasonably believes that the supply of Merchandise to such third party
will be competitive with Stein Mart and may have a material adverse effect on sales of Merchandise
offered at Stein Mart stores. For purposes of this Section&nbsp;2.4, third party retail locations that
are located in &#147;standard metropolitan market areas&#148; in which less than five percent (5%) of Stein
Mart&#146;s stores are located shall not be deemed competitive with Stein Mart. Stein Mart&#146;s sole
remedy for breach of this Section&nbsp;2.4 is termination of this Agreement.
</DIV>

<P align="left" style="font-size: 10pt"><B>3. </B><U><B>SUPPLY OF MERCHANDISE</B></U>. Supplier will provide the Merchandise to each Covered Store.
Stein Mart shall acquire no ownership rights in and to the Merchandise supplied by the Supplier
hereunder. Title to Merchandise supplied by the Supplier shall remain in and with Supplier until
actually sold.</P>



<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. <U>MERCHANDISING AND PRICE PRACTICES</U></B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <U>Merchandise Supplied</U>. Subject to Stein Mart&#146;s reasonable approval the Supplier
shall determine the quantity and mix of the Merchandise to be sold at the Covered Stores. Supplier
shall continuously provide the Covered Stores with a complete line of salable inventory of current
season goods in appropriate quantities and of a quality in keeping with the quality of other
merchandise sold by Stein Mart and targeted to Stein Mart&#146;s normal customer. Supplier will provide
all Merchandise with SKU numbers, either pre-printed on the shoebox or on tickets which are readily
readable by Stein Mart&#146;s normal scanning equipment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <U>Compliance with Law</U>. Supplier shall be responsible to assure that no Merchandise
will be supplied, and no Merchandise will be offered at any price or in any manner, that violates
any applicable Federal, state or other applicable statute or regulation. Supplier agrees with
Stein Mart&#146;s expressed policy of refunding the purchase price of merchandise with which a customer
is dissatisfied. If a Stein Mart store manager or officer becomes aware of any such violation,
Stein Mart will advise Supplier of that violation. Supplier also acknowledges that it is solely
responsible for any products liability claims arising from its Merchandise and agrees to indemnify
Stein Mart from all damages, costs of defense and expenses (including attorneys&#146; fees) relating
from such claims unless caused by Stein Mart or its agents&#146;, contractors&#146;, or employees&#146; active
negligence (not including negligence by omission or inaction), gross negligence or willful
wrongdoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <U>Delivery Responsibility</U>. Supplier shall deliver the Merchandise, at Supplier&#146;s
cost, to each Covered Store, and Stein Mart employees shall be responsible for receiving the
Merchandise, accounting for the Merchandise received, stocking the Merchandise in or on the display
case or fixture at each of the Covered Stores. Stein Mart will also maintain the Shoe Departments
in a normal and neat condition consistent with other departments in the applicable store.
Mismates, defective or damaged Merchandise received from Supplier will be noted and set aside for
inspection by Supplier&#146;s Supervisor and disposition at Supplier&#146;s direction within a reasonable
time, and Stein Mart shall receive full accounting credit for such Merchandise as appropriate in
accordance with the disposition directed by Supplier&#146;s Supervisor. All risk of loss to the
Merchandise in shipment to each Covered Store shall be on Supplier.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <U>Prices &#038; Discounts</U>. Supplier will set the prices at which its Merchandise will
be sold and put in force reasonable discounting policies designed to clear stale merchandise.
Except as provided below, Supplier shall have the only authority to markdown Supplier&#146;s
Merchandise. Nevertheless, Supplier agrees (i)&nbsp;to honor all discount promotions to the extent
agreed in advance by Supplier, (ii)&nbsp;to maintain a policy of periodic markdowns based on length of
time Merchandise has been on the selling floor which is consistent with Stein Mart&#146;s normal
practices, and (iii)&nbsp;to honor Stein Mart&#146;s normal discount policy for sale to Stein Mart employees
and agents which shall not exceed 25% of the otherwise applicable price and will apply equally
throughout the store in question.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. <U>Supervisors</U>. Supplier will provide, at its expense, sufficient numbers of
trained Supplier Supervisors to coordinate and make recommendations as to arrangement, presentation
and organization of the Shoe Departments in Covered Stores; provided, however, that the actual
decision on all matters will be that of Stein Mart acting reasonably.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. <U>Space</U>. Stein Mart, at its expense, shall make an amount of space available for
the Shoe Department in each Covered Store in a size and location suitable to accommodate the sales
objectives described herein. The amount and location of space made available to the Supplier in
each retail location shall be determined by Stein Mart in its sole, reasonable discretion;
provided, however, that the average space devoted to the Shoe Department for all Covered Stores
shall not be less than such amounts as are agreed to from time to time by the parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. <U>Utilities &#038; Personnel</U>. Stein Mart, at its expense, will provide the utilities
and personnel to operate the Shoe Department in each Covered Store. Stein Mart will be responsible
for all store staffing and all decisions relating to hiring and termination of such personnel
related to the Covered Stores (including all sales and stocking personnel), and will bear all
expenses relating thereto including without limitation, the cost of all employee salaries, payroll
taxes and employee benefits. Stein Mart shall use commercially reasonable efforts to assure that
the quality of the personnel in the Shoe Departments is consistent with the quality of its
personnel in other departments in the same Covered Store. Supplier, at its expense, will provide
Merchandise related training for Stein Mart personnel serving the Shoe Departments. Stein Mart
agrees to indemnify Supplier from all damages, costs of defense and expenses (including attorneys&#146;
fees) relating to claims based on wrongdoing by Stein Mart&#146;s employees, agents or contractors
unless caused by Supplier or its agents&#146;, contractors&#146;, or employees&#146; active negligence (not
including negligence by omission or inaction), gross negligence or willful wrongdoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. <U><B>FIXTURES, EQUIPMENT, LOCATION AND LAYOUT</B></U>. Prior to the date designated on the
Covered Store Schedule as the &#147;Opening Date&#148; for the Shoe Department in each Covered Store to be
fully inventoried and open for business, Supplier shall at its sole cost provide the fixtures and
equipment to display Supplier&#146;s Merchandise in each Covered Stores. As used herein the term
&#147;fixtures&#148; includes carpeting and mirrored columns of the Shoe Departments of Covered Stores that
are not now existing Stein Mart stores. The fixtures and equipment decisions with respect to
design, type, color, material, layout, location within store, etc. shall be made by Supplier,
subject to Stein Mart&#146;s prior written approval. The fixtures and equipment in each licensed
location will be suitable to accommodate the sales objectives described herein and shall be
consistent in quality and design with other fixtures in the respective Covered Stores. After
installation, Stein Mart shall maintain all displays and fixtures in good repair and condition,
ordinary wear and tear excepted. Title to all fixtures paid for by the Supplier shall remain in
Supplier. Upon termination of this Agreement, Supplier will remove its fixtures from the Stein
Mart stores at its sole expense and repair at its
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">sole expense any damage effected by such removal restoring such space to its condition prior
to the installation of such fixtures, provided, however, that upon any default by Supplier, such
fixtures shall not be removed or rendered unusable in any respect by Stein Mart until the removal
of all of the Merchandise from the relevant Covered Store in accordance with this Agreement and
upon any failure by Supplier to remove its fixtures and repair any damage as provided above which
continues for thirty (30)&nbsp;days after written demand therefore by Stein Mart, title to such fixtures
shall pass to Stein Mart without payment and Stein Mart shall thereupon have a license to use any
proprietary and patented fixtures included within such fixtures for a license fee of $1 per year.
Absent a continuing Event of Default by Supplier, no fixtures or equipment shall be transferred or
removed from any Covered Store without the consent of the Supplier which such consent shall not be
unreasonably withheld. In no event shall any fixtures be removed during any hours during which the
store where the fixtures are located is open for business, and all removal must be completed and
the space where the fixtures were located left in a presentable and broom clean condition prior to
the next normal opening of such store. Stein Mart hereby acknowledges that certain fixtures
provided by Supplier for use in the Stein Mart stores is proprietary and patented. As such, Stein
Mart agrees that it will not use the fixtures except pursuant to the terms of this Agreement. Upon
termination of this Agreement, Stein Mart shall have no rights to use any fixtures provided by
Supplier without the Supplier&#146;s express written consent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. </B><U><B>SALES REVENUE SHARING; ACCOUNTING PROCEDURES</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <U>Net Revenue Split</U>. All sales of Merchandise shall be made through Stein Mart&#146;s
normal cash registers and by use of Stein Mart&#146;s normal sales recording equipment and will be
identified with the Shoe Department. The Net Revenue from each sale of Supplier&#146;s Merchandise
shall be split 80% to Supplier and 20% to Stein Mart.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <U>Reports</U>. The reporting of all sales of Supplier&#146;s Merchandise shall be made in
conformity with the methods established by Stein Mart from time to time. The costs of such methods
and equipment and maintenance thereof shall be borne by Stein Mart. Stein Mart also agrees to
provide and make accessible all information, statistics and reports available within Stein Mart&#146;s
existing merchandise processing system solely for the Merchandise. Any special reports or
enhancements required by the Supplier will be subject to Stein Mart&#146;s approval. Stein Mart hereby
agrees to cooperate and coordinate with Supplier the implementation of the electronic exchange and
communication between Stein Mart&#146;s computer system and Supplier&#146;s computer system in connection
with point-of-sale, receiving and shipping and inventory information related to the Merchandise.
All proceeds from the sale of Merchandise shall be held in trust for the benefit of the Supplier
and Supplier&#146;s Lender (as defined in Section&nbsp;13 below); provided, however, that prior to receiving
written notice to the contrary from Supplier&#146;s Lender, Stein Mart shall deliver all proceeds from
the sale of Merchandise as provided herein directly to Supplier and shall be released from any
claim by Supplier&#146;s Lender for all such funds turned over to Supplier.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <U>Books &#038; Records</U>. Stein Mart shall keep true and correct books of accounts in
accordance with Stein Mart&#146;s regular accounting practices related to the Supplier&#146;s Merchandise,
which entries shall be open to examination and inspection by the Supplier during all normal
business hours during the term of this Agreement upon reasonable advance notice and for three (3)
years thereafter. Such examination and inspection will not occur more than twice in any twelve
months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <U>Payment Due</U>. By each Friday, Stein Mart shall account to the Supplier for the
total Net Revenue of Supplier&#146;s Merchandise made in each Covered Store for the week ending on the
previous Saturday or portion thereof contained in the term of this Agreement, and shall at the time
of each such accounting, subject to the provisions of Section&nbsp;13 hereof<U>,</U> pay to the
Supplier the amount shown to be due to the Supplier in connection with the total Net Revenue made
in the week as to which the accounting is being made, and other charges specified in this
agreement. If any amount is shown to be due Stein Mart by the Supplier, the Supplier shall pay
such amount to Stein Mart within fifteen (15)&nbsp;days of receipt of such accounting. All such amounts
due shall be deemed to be the amount stated and shall be final and binding upon Stein Mart and the
Supplier except with respect to any alleged error which the Supplier or Stein Mart shall specify in
writing within a reasonable time (not to exceed sixty (60)&nbsp;days) after delivery of the first such
accounting alleged to contain such error.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. </B><U><B>TERM AND TERMINATION</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <U>Term</U>. The term of this Agreement shall commence as of the date first written
above and shall continue for a term ending December&nbsp;31, 2009, unless previously terminated in
accordance with the provisions of this Agreement. Provided that neither party is in default
hereunder, this Agreement shall automatically extend for additional periods of three (3)&nbsp;years each
after the end of the initial term unless either party gives the other written notice of its intent
not to renew this Agreement at least one hundred and eighty (180)&nbsp;days prior to the expiration of
the then applicable term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <U>Termination for Breach</U>. Either party may terminate the Supply Right and
obligation related thereto as to a particular Shoe Department in an individual store or as to all
Covered Stores at any time for any Event of Default hereunder by the other party hereto. An
individual store shall no longer be a Covered Store, and this Agreement shall terminate as to such
individual store, if at any time that store ceases, for any reason, to be open as a Stein Mart
store. In the event that the Supply Right and obligation related thereto is terminated by the
Supplier for an Event of Default by Stein Mart, Supplier shall have the option to liquidate the
existing inventory of the Merchandise in Stein Mart&#146;s possession for a period of up to sixty (60)
days subsequent to such termination of the Supply Right; provided, however, that during such time
after termination of the Supply Right, Stein Mart may offer Merchandise for sale not acquired from
Supplier even though Supplier is continuing to liquidate its Merchandise.
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <U>Supplier Special Termination Rights</U>. Supplier shall have the right, upon sixty
(60)&nbsp;days prior notice, to terminate the Supply Right and obligation related thereto as to all
Covered Stores whether or not there has been any breach or default by Stein Mart if the number of
Covered Stores at any time in the aggregate is reduced to one hundred fifty (150)&nbsp;or fewer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. <U>Stein Mart Special Termination Rights</U>. Stein Mart shall have the right, upon six
(6)&nbsp;months prior notice, to terminate the Supply Right and obligation related thereto as to all
Covered Stores whether or not there has been any breach or default by Supplier if:
</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%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During Stein Mart&#146;s fiscal year 2007 Net Revenue from the Shoe Departments in
the existing Covered Stores supplied by Supplier (excluding from the calculation any
Stein Mart stores not currently supplied by Supplier as of the date hereof and subject
to the Phase In described in Section&nbsp;2.2 hereof) is less than 7% of the Net Revenue of
such Covered Stores&#146; in the aggregate including the Shoe Departments and all other
departments of such Covered Stores for the same time period; or</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%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During Stein Mart&#146;s fiscal year 2008 Net Revenue from the Shoe Departments in
all Covered Stores (including Stein Mart stores not previously supplied by Supplier) is
less than 7.25% of the Net Revenue of such Covered Stores&#146; in the aggregate including
the Shoe Departments and all other departments of such Covered Stores for the same
time period; or</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%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During any subsequent period beginning on the Sunday after the Saturday closest
to January&nbsp;31 and ending on the Saturday closest to January&nbsp;31 Net Revenue from the
Shoe Departments in the Covered Stores is less than 7.5% of the Net Revenue of such
Covered Stores&#146; in the aggregate including the Shoe Departments and all other
departments of such Covered Stores for the same time period; or</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%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Supplier comes under the control of a direct competitor of Stein Mart (it being
understood that Retail Ventures, Inc. is not a direct competitor of Stein Mart).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">In order to exercise the termination right described in this Section&nbsp;7.4, Stein Mart agrees to pay
Supplier an amount equal to 125% of the unamortized costs of Covered Store Fixtures with those
costs being amortized on a straight-line basis over five (5)&nbsp;years. In the event that Supplier
fails to meet the required sales penetration rate set forth above, Supplier shall have a period of
six (6)&nbsp;months commencing upon receipt of the notice described above from Stein Mart to remedy the
default by increasing its penetration rate to the then applicable penetration rate. Further, in
the event that (i)&nbsp;Supplier fails to meet the applicable penetration rate set forth in this Section
7.4, (ii)&nbsp;Stein Mart does not exercise its termination right under this Section&nbsp;7.4, and (iii)
Supplier meets the required penetration rate in a subsequent period, then Stein Mart&#146;s right to
terminate the Supply Right pursuant to this Section&nbsp;7.4 shall be waived as to the minimum
penetration requirement for the applicable period, but not any subsequent period.</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <U>Effect of Termination</U>. Except as otherwise provided in Section&nbsp;13 hereof, upon
the termination of the Supply Right and obligation related thereto by Stein Mart for any reason
permitted herein as to a particular Covered Store individually or as to all Covered Stores, (a)&nbsp;if
the termination is due to a lack of penetration as set forth in Section&nbsp;7.4(a) &#151; (c)&nbsp;hereof,
Supplier shall have a period of twelve months to phase out its operations pursuant to Section&nbsp;7.6
hereof, provided, however, that Supplier&#146;s right of exclusivity shall terminate six months
following such termination, and (b)&nbsp;if the termination is for any other reason, Stein Mart shall be
entitled to immediately offer for sale Merchandise not obtained from Supplier and Supplier, shall
remove, at Supplier&#146;s expense within sixty (60)&nbsp;days following such termination: (i)&nbsp;all
Merchandise supplied by Supplier located in any Stein Mart store or facility, and (ii)&nbsp;if no Event
of Default exists as to Supplier, or, whether or not an Event of Default exists as to Supplier, if
demanded by Stein Mart in writing, and except as otherwise provided herein, all fixtures provided
by Supplier which Stein Mart demands be removed and Supplier will promptly pay all costs associated
with the repair of any damage caused by such removal. Except as otherwise provided in Section&nbsp;13
hereof, any Merchandise or fixtures not removed by Supplier as provided above will be deemed
abandoned and Stein Mart may take such actions, subject to the last sentence of this Section&nbsp;7.5
hereof, (including destroying) with respect to such items without liability to Supplier and without
relieving Supplier from its obligations hereunder. Stein Mart hereby acknowledges that certain
fixtures provided by Supplier for use in the Stein Mart stores is proprietary and patented. Upon
termination of this Agreement, Stein Mart shall have no rights to use any fixtures provided by
Supplier without the Supplier&#146;s express written consent except as otherwise provided in &#167;4.8
hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <U>Right to Sell Inventory</U>. Notwithstanding anything to the contrary contained in
this Section&nbsp;7, in the event that either party elects not to renew the term of the agreement as
provided for in Section&nbsp;7.1 or upon a termination of the Supply Agreement, Supplier shall have the
option to liquidate the existing inventory of Merchandise in Stein Mart&#146;s possession for a period
of up to sixty (60)&nbsp;days subsequent to such termination of the Supply Right and during such sixty
(60)&nbsp;days Stein Mart will continue to display the remaining inventory of Merchandise in a manner
consistent with such displays prior to such termination although the space allocated to that
remaining inventory will be reduced as the quantity of that inventory is reduced; provided,
however, that during such time after termination of the Supply Right, Stein Mart may offer
Merchandise for sale not acquired from Supplier even though Supplier is continuing to liquidate its
inventory.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <U>Advertising</U>. Supplier will provide to Stein Mart information related to
Merchandise to be advertised in any form of advertisement. Stein Mart will be responsible for
producing the advertising copy and placing it with the appropriate media according to Stein Mart&#146;s
normal procedures for its own merchandise. Advertising expenses relating to the Shoe Department of
Covered Stores will be paid in such percentages by Stein Mart and Supplier as they agree upon from
time to time and Supplier will pay Stein Mart for Supplier&#146;s share within ten days after receiving
an
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">invoice therefore from Stein Mart. The parties agree to consult frequently with respect to
the level of advertising of the Merchandise.
</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>8 </B><U><B>SHORTAGES AND DAMAGES</B></U>. Supplier will maintain complete and accurate records of the
inventory of its Merchandise at each Covered Store and make that information available to Stein
Mart on a monthly basis and at the time of each Annual Inventory. Stein Mart at Supplier&#146;s expense
shall arrange for having an inventory taken (the &#147;<B>Annual Inventory</B>&#148;) of Merchandise provided by
Supplier each year at the time of Stein Mart&#146;s scheduled year-end physical inventory. Supplier, at
its expense, may have a representative observe the taking of the Annual Inventory. In the event
that the Annual Inventory shows shrinkage in Merchandise provided by Supplier in excess of such
percent as they agree upon from time to time of the retail value of Merchandise sold by Stein Mart
(calculated in the aggregate as to all Covered Stores for the period in question), Stein Mart will
pay to the Supplier such percent as the parties agree upon from time to time of the verified,
actual retail value of such shrinkage in excess of that threshold (less any insurance proceeds
available to Supplier with respect to such loss) within ninety days of the date of the Annual
Inventory. Upon request by Stein Mart, Supplier&#146;s independent certified public accountants shall
certify to Stein Mart the accuracy of the amount of shrinkage shown on Supplier&#146;s records following
the Annual Inventory; provided, however, that if such certification confirms the accuracy of
Supplier&#146;s statement of shrinkage, the reasonable costs of such certification shall be paid by
Stein Mart.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9 </B><U><B>IDENTITY, INDEMNITY AND RELATIONSHIP TO PARTIES</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.1 </B><U>No Agency</U>. Each party of this Agreement agrees that in performing its respective
duties and obligations hereunder, and in exercising any of the rights or benefits granted
hereunder, neither shall at any time hold itself out to be the agent, servant, or employee of the
other party, in any manner whatsoever, and it is expressly understood that it is the intention of
this Agreement that neither party hereto shall at any time be or act as the agent, servant or
employee of the other.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.2 </B><U>Indemnity of Stein Mart</U>. Supplier will indemnify Stein Mart and save it harmless
from and against any and all claims, actions, damages, liability and expense (including reasonable
attorneys&#146; fees) in connection with loss of life, personal injury and/or damage to property arising
from or out of any occurrence caused by Supplier, by its Merchandise or by its agents, contractors,
or employee negligence, omission or deliberate acts including, without limitation, any of the
following as relate to the Merchandise: copyright or patent infringement claims, merchandise
liability claims, false or misleading advertising, branding and labeling and product liability
claims. In case Stein Mart shall, without fault on its part, be made a party to any litigation
commenced by or against Supplier, then Supplier shall protect and hold Stein Mart harmless and
shall pay all costs, expenses and reasonable attorneys&#146; fees that may be incurred or paid by Stein
Mart in defending such action.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.3 </B><U>Indemnity of Supplier</U>. Stein Mart will indemnify Supplier and save it harmless
from and against any and all claims, actions, damages, liability and expense (including reasonable
attorneys&#146; fees) in connection with loss of life, personal injury and/or damage to property rising
from or out of any occurrence caused by Stein Mart or its agents, contractors, or employees&#146;
negligence, omission or deliberate acts. In case Supplier shall, without fault on its part, be
made a party to any litigation commenced by or against Stein Mart, then Stein Mart shall protect
and hold Supplier harmless and shall pay all costs, expenses and reasonable attorneys&#146; fees that
may be incurred or paid by Supplier in defending such action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.4 </B><U>Indemnification Procedure</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.1 <U>Notice</U>. If any third party makes a claim for which Supplier or Stein
Mart, as the case may be, (the &#147;Indemnified Party&#148;) seeks indemnity from the other party
hereto (&#147;Indemnitor&#148;), the Indemnified Party shall as soon as practicable notify Indemnitor
of the details of the claim (&#147;Claim Notice&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.2 <U>Defense of Admitted Indemnified Claim</U>. After receiving a Claim Notice,
Indemnitor may elect, by written notice to the Indemnified Party, to assume the defense of
such claim by using counsel selected by Indemnitor, acting reasonably. If Indemnitor
assumes such defense and admits that the claim is subject to the Indemnitor&#146;s indemnity
obligations, then: (i)&nbsp;the claim shall be deemed to be a claim indemnified by the
Indemnitor; (ii)&nbsp;the Indemnified Party may, at its election, participate in the defense of
the claim, but Indemnitor will have no obligation to pay for any defense costs including
attorneys&#146; fees of the Indemnified Party after Indemnitor assumes the defense of the claim;
and (iii)&nbsp;Indemnitor will have the right, without cost to Indemnified Party, to compromise
and settle the claim on any basis believed reasonable, in good faith, by Indemnitor, and
Indemnified Party shall be bound thereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.3 <U>Disputed Indemnity</U>. After receiving a Claim Notice, if Indemnitor either
does not assume the defense thereof, or does so under a reservation of rights without
admitting that the claim is subject to the Indemnitor&#146;s indemnity obligations, then: (i)
the claim shall not be deemed to be a claim indemnified by the Indemnitor and neither party
shall have waived any rights to assert that the claim is or is not properly a claim subject
to the Indemnitor&#146;s indemnity obligations; (ii)&nbsp;both Indemnitor and Indemnified Party may,
at their individual election, participate in the defense of such claim but Indemnitor will
remain responsible for the costs of defense, including reasonable attorneys&#146; fees of the
Indemnified Party should the claim ultimately be determined to be subject to Imdemnitor&#146;s
indemnity obligation; and (iii)&nbsp;the Indemnified Party shall have the right to compromise and
settle the claim on any basis believed reasonable, in good faith, by the Indemnified Party,
and the Indemnitor will be bound thereby should the claim ultimately be determined to be
subject to Indemnitor&#146;s indemnity obligation.
</DIV>

<P align="center" style="font-size: 10pt">11
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10 </B><U><B>INSURANCE; DAMAGE</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.1 </B><U>Supplier Liability Insurance</U>. Supplier shall maintain comprehensive general and
merchandise liability insurance coverage insuring Stein Mart and Supplier against any loss or
liability for damages which may result from Supplier&#146;s operations or Supplier&#146;s Merchandise either
to persons or property with limits of not less than $2&nbsp;million for injury to one person; and not
less than $500,000 for property damage or occurrence in each location (subject to normal
deductibles and retentions). Supplier&#146;s liability insurance shall name Stein Mart as an additional
insured and shall contain provisions waiving subrogation against Stein Mart.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2 </B><U>Supplier Casualty Insurance</U>. Supplier agrees to keep, at its own cost and
expense, all of its property and its Merchandise and all fixtures provided by it in any Covered
Store adequately insured against loss by fire and all other casualties covered by broad form
extended coverage and sprinkler leakage insurance policies (or Supplier may self-insure same).
Supplier shall bear the entire risk of a casualty to its Merchandise and other property and all
fixtures provided by it, if any, in any Covered Store.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.3 </B><U>Stein Mart Liability Insurance</U>. Stein Mart shall maintain broad form
comprehensive commercial general liability insurance coverage insuring Stein Mart and Supplier
against any loss or liability for damages which may result from Stein Mart&#146;s operations or
Supplier&#146;s operations within the Covered Store with limits of not less than $2&nbsp;million for injury
to one person, and for property damage or occurrence in each location (subject to normal
deductibles and retentions); provided, however, that this provision shall not cover claims provided
for in the indemnity clauses of Sections&nbsp;4.2 and 9.2 for injuries to persons or damage to property.
The limits indicated herein may be satisfied by a primary policy and umbrella liability policy
showing the primary liability policy as an underlying policy. A certificate of insurance naming
Supplier as an additional insured shall evidence the insurance required herein. The primary
liability policy shall contain provisions waiving subrogation against Supplier.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.4 </B><U>Stein Mart Workers Compensation Insurance</U>. Stein Mart shall provide to Supplier
proof of insurance for all states for Covered Stores meeting the regulatory requirements of the
state in which Covered Stores are located. Stein Mart agrees to indemnify and defend Supplier for
all claims as a result of employee injuries or claims as a result of the employee&#146;s employment;
provided, however, that this provision shall not cover claims provided for in the indemnity clauses
of Sections&nbsp;4.2 and 9.2 for injuries to persons or damage to property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.5 </B><U>Casualty Loss</U>. If a particular Shoe Department or Covered Store shall be
destroyed or damaged by fire or other casualty covered by fire and extended coverage insurance,
Supplier and Stein Mart agrees that it will not subrogate to its insurance carrier any right of
action the party may have against the other party or the owner of the premises based upon a claim
that the fire or other casualty was due to the negligence of
</DIV>

<P align="center" style="font-size: 10pt">12
</DIV>

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

<DIV align="left" style="font-size: 10pt">the other party nor will Supplier prosecute any lawsuit against Stein Mart or such owner on
the Supplier&#146;s own behalf.</DIV>



<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>11 </B><U><B>LIENS AND TAXES</B></U>. Supplier agrees to pay all ad valorem, personal property, excise, use
or other taxes and assessments and licenses of every description assessed against it, in respect of
or measured by the inventory or other property of Supplier and all fixtures provided by it. Stein
Mart shall be responsible for the collection and payment of all sales taxes and license fees
resulting from the sales of the Merchandise under this Agreement and for doing business in various
jurisdictions.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12 DEFAULT</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.1 </B>Each of the following is an event of default (&#147;Event of Default&#148;) hereunder:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.1 Either party fails to comply with or perform as and when required or to observe
any of the terms, conditions, or covenants of this Agreement, and such failure continues for
a period of ten (10)&nbsp;days after notice thereof to the defaulting party with respect to
monetary defaults, and thirty (30)&nbsp;days after notice thereof to the defaulting party with
respect to non-monetary defaults; or,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.2 If any proceeding under the United States Bankruptcy Code or any successor law
or any law of the United States or of any state relating to insolvency, receivership, or
debt adjustment is instituted by either party or if any such proceeding is instituted
against either party and is consented to by the respondent or remains undismissed for thirty
(30)&nbsp;days, or if an order for relief is entered under the United States Bankruptcy Code or
any successor law against either party, or if either party is adjudicated a bankrupt, or if
a trustee, receiver or similar fiduciary is appointed to administer any substantial part of
the property of either party, or if either party makes an assignment for the benefit of
creditors, admits in writing an inability to pay debts generally as they become due or
becomes insolvent in either the bankruptcy or equity sense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.2 </B>Upon the occurrence of an Event of Default hereunder, the non-breaching party may
terminate this Agreement, and/or exercise any other remedy provided by law or equity.
</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>13 </B><U><B>SUPPLIER&#146;S LENDER</B></U><B>. </B>Stein Mart and Supplier hereby agree, for the benefit of such
commercial lender(s) which from time to time provide Supplier&#146;s principal credit facilities
(&#147;<B>Lender</B>&#148;), to the following:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.1 </B><U>Security Interest</U>. Stein Mart hereby acknowledges that Supplier has granted to
Lender a security interest in substantially all of its assets, including, without limitation, all
of Suppliers interests in all Merchandise, fixtures, equipment and other personal property owned by
Supplier and proceeds thereof of Supplier now or hereafter held by, shipped to or otherwise in
possession of or controlled by Stein Mart and
</DIV>

<P align="center" style="font-size: 10pt">13
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Supplier&#146;s share of unremitted total Net Revenue (the &#147;Collateral&#148;), and Stein Mart waives and
relinquishes any lien rights against the Collateral. Upon Lender&#146;s request, Stein Mart will
execute any documents reasonably required to perfect or acknowledge Lender&#146;s security interest or
other rights in the Collateral; provided, however that Stein Mart will not be required to execute
any documents, including UCC-1 financing statement, which indicate that Stein Mart is a debtor with
respect to the Merchandise (other than a UCC-1 substantially in the form of <B>Exhibit&nbsp;B </B>hereto, which
Stein Mart authorizes Supplier or Supplier&#146;s Lender to file in the proper jurisdictions) or that
Stein Mart has granted any party a lien upon Stein Mart&#146;s inventory or fixtures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.2 </B><U>Notice of Indemnity</U>. Supplier will give written notice to Stein Mart from time
to time of the identity of the Lender, and Stein Mart shall be under no obligation hereunder to any
party unless and until Stein Mart shall have received such notice, and then Stein Mart&#146;s sole
obligations are only as expressly provided in Section&nbsp;13 hereof and to follow such instructions as
to remitting Supplier&#146;s share of total Net Revenue. Upon receipt by Stein Mart of such notice from
the Supplier, Stein Mart will acknowledge only the party specifically named by Supplier in such
notice as Supplier&#146;s Lender. Any notice subsequently given by Supplier and signed by the lender
named in the preceding notice shall revoke any previous notice given by Supplier hereunder. Upon
receipt by Stein Mart of such subsequent notice, Stein Mart shall have no obligation to any party
previously named by Supplier as Supplier&#146;s Lender. Supplier hereby notifies Stein Mart that, as of
the date hereof, &#147;Lender&#148; means National City Business Credit, Inc., as Administrative Agent and
Collateral Agent for certain lenders and other parties under a certain Loan and Security Agreement,
as amended from time to time. Similarly, upon a request by Stein Mart, Supplier agrees that it
will execute any documents reasonably required to perfect or acknowledge the security interest or
other rights of any party providing credit to Stein Mart (a &#147;<B>Stein Mart Lender</B>&#148;) and receiving a
security interest in any of Stein Mart&#146;s assets; provided, however that Supplier will not be
required to execute any documents, including UCC-1 financing statement, which indicate that
Supplier is a debtor with respect to any assets of Stein Mart or that Supplier has granted any
party a lien upon Supplier&#146;s inventory or fixtures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13.3 </B><U>Collateral</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.1 Stein Mart agrees that upon receipt of written notice from Lender referring to
this Section&nbsp;13.3.1, Stein Mart will hold the Supplier&#146;s share of the proceeds from the
Collateral for the account of the Lender and subject to Lender&#146;s instructions and shall
release such proceeds only to the Lender or as otherwise directed by a court. Any such
payments shall be made free of any set-off, reduction, or counterclaim, (including, without
limitation, any set-off, reduction or counterclaim based upon any alleged breach by Supplier
of this Agreement).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.2 Stein Mart agrees that in addition to its obligations under Section&nbsp;13.3.1, upon
receipt of written notice from Supplier&#146;s Lender (&#147;<B>Lender&#146;s Default Notice</B>&#148;) referring to
this Section&nbsp;13.3.2 that represents to Stein Mart that there is
</DIV>

<P align="center" style="font-size: 10pt">14
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">the occurrence and continuance of a default under the financing arrangements between
Supplier and Supplier&#146;s Lender and stating the intent of Supplier&#146;s Lender to exercise its
remedies as a result of the occurrence of such default, such Lender&#146;s Default Notice shall
constitute a termination of the Supply Right and Stein Mart shall hold the Collateral for
the account of Supplier&#146;s Lender and subject to the instructions of Supplier&#146;s Lender. In
that regard, Supplier&#146;s Lender may liquidate the then existing inventory of Merchandise in
Stein Mart&#146;s possession, subject to Section&nbsp;7.6 hereof (other than the time period provided
therein), for a period of up to sixty (60)&nbsp;days after the commencement of such liquidation
which shall commence no later than thirty (30)&nbsp;days after Stein Mart&#146;s receipt of Lender&#146;s
Default Notice and in connection with such liquidation, Stein Mart shall comply with its
obligations under this Agreement to the same extent as if the Lender were the Supplier. At
the end of such liquidation, and subject to the provisions of Section&nbsp;5 hereof, the
Supplier&#146;s Lender may repossess and remove any remaining Collateral from the Stein Mart
locations, as Supplier&#146;s Lender in its discretion may elect; provided, however, that Lender
agrees to the removal of such Collateral only in accordance with such reasonable limitations
on the time and manner of such removal as Stein Mart shall require which limitations are
intended to avoid disruption of Stein Mart&#146;s normal operations or any possible confusion in
the mind of the public as to whether any of Stein Mart&#146;s assets are being removed. In
connection with any liquidation of the Merchandise from Stein Mart&#146;s premises, all
advertising with respect to such sale shall be subject to the prior approval of Stein Mart
(which approval shall be given or withheld in Stein Mart&#146;s good faith discretion and
promptly so as not to unreasonably delay the exercise of Supplier&#146;s Lender&#146;s rights). Stein
Mart shall not be deemed to have failed to have acted in good faith by refusing to approve
any advertising which refers to any &#147;going out of business sale&#148;, &#147;liquidation&#148; or similar
terms or which could create any possible confusion in the mind of the public as to whether
any of Stein Mart&#146;s assets are being liquidated. Upon any removal of the Collateral in
accordance with this Agreement, Supplier&#146;s Lender shall not be liable for any diminution in
the value of the Stein Mart&#146;s Premises or Stein Mart&#146;s business which is caused by the
removal or absence of the Collateral. Supplier&#146;s Lender does hereby agree to indemnify and
hold harmless Stein Mart from all damages and costs of defense (including reasonable
attorneys&#146; fees) arising from the claims of any and all third parties, including, without
limitation, Supplier, against Stein Mart for complying with any directions of Supplier&#146;s
Lender, except to the extent Stein Mart is finally determined by a court of competent
jurisdiction to have committed willful misconduct or to have acted in a grossly negligent
manner or in actual bad faith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.3 Nothing contained herein shall obligate Supplier&#146;s Lender to undertake any such action, nor shall anything contained herein constitute the Supplier&#146;s Lender&#146;s assumption of any obligations of the Supplier under this Agreement. However, to the extent and during the period of Supplier&#146;s Lender&#146;s
</DIV>

<P align="center" style="font-size: 10pt">15
</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">exercise of control over the Collateral while in Stein Mart&#146;s stores, Supplier&#146;s Lender
agrees to provide by the terms hereof as they relate to the Collateral.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.4 Stein Mart will provide to the Lender, as and when forwarded or
furnished to the Supplier, a copy of any formal notice of any breach by Supplier (with the
same degree of particularity as Stein Mart provides Supplier) of this Agreement given by
Stein Mart to the Supplier and any notice of termination of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.5 Stein Mart acknowledges and agrees that the Lender has no obligation to make any
loan or advance to the Supplier for the purpose of assisting the Supplier in the performance
of its obligations under this Agreement, including, without limitation, for paying any
amounts due from the Supplier to Stein Mart. Stein Mart is not a beneficiary of the
financing agreements and shall have no right to enforce the terms thereof or assert any
claims hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14 MISCELLANEOUS</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.1 </B><U>Indulgences, Etc</U>. Neither the failure nor any delay on the part of either party
to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.2 </B><U>Confidentiality</U>. The terms of this Agreement are confidential to the parties
hereto and each party agrees not to make any public announcement related to this Agreement or the
relationship of the parties without prior notice to the other party hereto except as may be
required by law. Moreover, Supplier agrees that it shall not, during the term of this Agreement or
at any time thereafter, divulge, furnish or make accessible to anyone, without Stein Mart&#146;s prior
written consent, any knowledge or information with respect to any confidential or secret aspect of
Stein Mart&#146;s business which if disclosed could reasonably be expected to have an adverse affect on
Stein Mart including, without limitation information concerning sales techniques, pricing and
discount policies, human resources training and policies, shrinkage and sales performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.3 </B><U>Controlling Law</U>. This Agreement and all questions relating to its validity,
interpretation, performance and enforcement (including, without limitation, provisions concerning
limitations of actions), shall be governed by and construed in accordance with the laws of the
State of Florida.
</DIV>

<P align="center" style="font-size: 10pt">16
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.4 </B><U>Notices</U>. All notices, requests, demands and other communications, required or
permitted under this Agreement shall be in writing and shall be deemed to have been duly given,
made and received when delivered (personally, by courier service such as Federal Express, or by
other messenger) against receipt or upon actual receipt of registered or certified mail, postage
prepaid, return receipt requested, addressed as set forth below:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="60%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Stein Mart:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stein Mart, Inc.<BR>
Attn: Mr.&nbsp;Michael Fisher<BR>
1200 Riverplace Boulevard<BR>
Jacksonville, FL 32207<BR></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Supplier:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DSW Inc.<BR>
Attn: President<BR>
4150 East Fifth Avenue<BR>
Columbus, OH 43219<BR>
Facsimile: (614)&nbsp;872-1464<BR></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>
</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">and<BR></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>
</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">DSW Inc.<BR>
Attn: General Counsel<BR>
4150 East Fifth Avenue<BR>
Columbus, OH 43219<BR>
Facsimile: (614)&nbsp;872-1464<BR></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Supplier&#146;s Lender:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">National City Business Credit, Inc.<BR>
1965 E. Sixth Street<BR>
Cleveland, OH 44114<BR>
Attn: Joseph Kwasny<BR></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>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">With a copy to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Riemer &#038; Braunstein, LLP<BR>
Three Center Plaza<BR>
Boston, MA 02108<BR>
Attn: David S. Berman, Esquire</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Any party may alter the address to which communications or copies are to be sent by giving notice
of such change of address in conformity with the provisions of this paragraph for the giving of
notice.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.5 </B><U>Binding Nature of Agreement</U>. Subject to the provisions hereof relating to
assignments, this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assign.
</DIV>

<P align="center" style="font-size: 10pt">17
</DIV>

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<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;<B>14.6 </B><U>Execution of Counterparts</U>. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of all of the parties reflected hereon as the signatories.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.7 </B><U>Provisions Separable</U>. The provisions of this Agreement are independent of and
separable from each other, and no provision shall be affected or rendered invalid or unenforceable
by virtue of the fact that for any reason any other or others of them may be invalid or
unenforceable in whole or in part.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.8 </B><U>Entire Agreement</U>. This Agreement contains the entire understanding among the
parties hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements and understanding, inducements or conditions, express or implied, oral
or written, except as herein contained. The express terms hereof control and supersede any course
of performance and /or usage of the trade inconsistent with any of the terms hereof. This
Agreement may not be modified or amended other than by an agreement in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.9 </B><U>Paragraph&nbsp;Headings</U>. The paragraph headings in this Agreement are for convenience
only; they form no part of this Agreement and shall not affect its interpretation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.10 </B><U>Gender, Etc</U>. Words used herein, regardless of the number and gender
specifically used, shall be deemed and construed to include any other number, singular or plural,
and any other gender, masculine, feminine or neuter, as the context indicates is appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.11 </B><U>Number of Days</U>. In computing the number of days for purposes of any payments
due under this Agreement, all days shall be counted, including Saturdays, Sundays and holidays;
provided, however, that if the final day of any time period falls on a Saturday, Sunday or holiday
on which federal banks are or may elect to be closed, then the final day shall be deemed to be the
next day which is not a Saturday, Sunday or such holiday.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.12 </B><U>Assignment</U>. Neither party may assign or in any other manner transfer (other
than to subsidiary or affiliate of such party) by voluntary act, operation of law or otherwise, its
rights hereunder without the written consent of the other party, which consent may be granted or
withheld in the other party&#146;s sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.13 </B><U>No Conflict</U>. Each party hereto represents to the other that the entering into
of this Agreement and the carrying out of the terms hereof does not conflict with the terms of any
other agreement by which the representing party is bound.
</DIV>

<P align="center" style="font-size: 10pt">18
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.14 </B><U>Amendment</U>. Except to add or delete one or more Covered Stores to the coverage
of this Agreement, this Agreement shall not be amended, revised, supplemented, or otherwise changed
without the prior written notice to the Supplier&#146;s Lender if such modifications affect Supplier&#146;s
Lender&#146;s rights with respect to the Collateral, without the consent of the Lender, which consent
shall not unreasonably be withheld or delayed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.15 </B><U>Third Party Beneficiaries</U>. Notwithstanding the foregoing, Stein Mart
acknowledges that the Lender is an intended beneficiary of this Agreement, has been collaterally
assigned and granted a security interest in all of Supplier&#146;s rights hereunder and shall have the
right to directly enforce the provisions hereof as though Supplier&#146;s Lender stood in Suppliers
shoes. By accepting any of the benefits of this agreement, Supplier&#146;s Lender agrees to be bound by
the provisions hereof relating to Supplier&#146;s Lender.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>&#091;Signature Page Follows&#093;</U>
</DIV>


<P align="center" style="font-size: 10pt">19
</DIV>

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




<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>IN WITNESS WHEREOF, </B>the parties have executed and delivered this Agreement by their duly authorized
officers as of the date 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="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&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"><B>DSW INC.</B><BR><BR></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">/s/ William L. Jordan<BR></TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&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">Vice President and General Counsel<BR></TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&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">Attest:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV><BR></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>STEIN MART, INC.</B><BR><BR></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">/s/ Michael D. Fisher<BR></TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&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 and CEO<BR></TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&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">Attest:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/<BR></TD>
</TR>
<TR style="font-size: 1px">
    <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" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">20
</DIV>

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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Exhibit&nbsp;2.4
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Existing Supply Arrangements
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gordman&#146;s, Inc.<BR>
Filene&#146;s Basement, Inc.<BR>
Frugal Fannie&#146;s

</DIV>


<P align="center" style="font-size: 10pt">21
</DIV>


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