On January 27, 2009, bebe stores, inc. (the "Registrant") and Bank of America N.A. (the "Bank") executed the Fourth Amendment (the "Amendment") to the Business Loan Agreement dated March 28, 2003 between the Registrant and the Bank ("the Agreement") to amend the expiration date of the Agreement from March 31, 2009 to March 30, 2010.

The Agreement and the Amendment provide the Registrant with an unsecured commercial line of credit which provides for borrowings and issuance of letters of credit for up to $25.0 million and now expires on March 30, 2010. The Agreement requires the Registrant to comply with certain financial covenants, including amounts for minimum tangible net worth, unencumbered liquid assets and profitability, and certain restrictions on making loans and investments. Outstanding cash borrowings bear interest at either the bank's reference rate (which was 3.25% as of January 3, 2009) or the LIBOR rate plus 1.75 percentage points. As of January 3, 2009, there were no outstanding cash borrowings under the Agreement, and there was $2 million outstanding in letters of credit.

The foregoing description of the Amendment is qualified in its entirety by reference to the full text of the Amendment, a copy of which is filed herewith as Exhibit 10.1 and incorporated herein by reference. The foregoing description of the Agreement is qualified in its entirety by reference to the full text of the Agreement which was filed as Exhibit 10.18 to the Registrant's Form 8-K on September 20, 2004 and is incorporated herein by reference.

(d) Exhibits

       Exhibit No.                               Description

       10.1           Fourth Amendment to Business Loan Agreement between Registrant
                      and Bank of America N.A.