9.	Line of Credit

On December 23, 2011, Dreams, Inc. (the "Company") and its subsidiaries (collectively the "Debtors") closed on a $35,000 revolving credit facility with PNC Bank, while concurrently paying off its entire outstanding loan balance with its previous lender, Regions Bank. $35,000 will be available from August 1 to December 31 reducing to $30,000 on January 1 of every year. Also, the credit facility provides for an additional $5,000 seasonal over advance in order to support our projected growth. The revolving note (the "Note") has a maturity date of December 23, 2014. The amount outstanding from time to time under the Note may not exceed the sum of: (i) 85% of the Borrowers' eligible accounts receivable including eligible credit cards receivable (which are included in accounts receivable, net); plus (ii) up to the lesser of (x) 60% of eligible Borrowers' inventory or (y) 90% of the net Borrowers' orderly liquidation value of eligible inventory; minus (iii) any applicable reserves. The initial principal balance under the Note was $9,000, which the entire amount was used to pay-off its outstanding balance with its previous lender, Regions Bank.

Interest shall accrue on all outstanding amounts under the Note at the rate of LIBOR plus 2.25% per annum, and is due and payable monthly in arrears. The rate may further adjust based upon the Company's Fixed Charge Coverage Ratio and Seasonal Over-advances (up to $2,500 for three (3) months beginning in June and $5,000 for six (6) months beginning in September. Seasonal Over-advances will be priced at 50 basis points above the then applicable margin. The default rate of interest is the applicable rate plus 2% per annum. An unused line fee in the amount of 0.25% per annum is payable monthly in arrears based on the average daily unused portion of the facility. All outstanding principal, and any remaining outstanding interest, shall be paid in one lump sum on the maturity date.

The required Fixed Charge Coverage Ratio for the quarter ended March 31, 2012 is 1.10 to 1.00. The actual ratio was 2.87 to 1.00 and therefore, has been met for the quarter ended March 31, 2012.