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Exhibit 10.15    
    

 
 

WEB SITE DEVELOPMENT, SERVICE
  AND
  REVENUE SHARING AGREEMENT    
    

        THIS WEB SITE DEVELOPMENT, SERVICE AND REVENUE SHARING AGREEMENT (this " Agreement"), is entered into as of
                , 2004, by and between SPY OPTIC, INC., a California corporation ("SPY"), and NO FEAR, INC., a
California
corporation ("NO FEAR"). 

 
 

RECITALS    
    

        A.    SPY
operates a successful internet website and has employees and contractors who are capable of providing electronic commerce
("e-commerce") consultation and implementation services to businesses desiring to market products or information over the Internet. 

        B.    NO
FEAR desires to engage SPY to provide services in connection with the design, development, installation and operation of a Web Site for NO FEAR, and SPY desires to be
engaged by NO FEAR to provide such services, all in accordance with the terms and conditions set forth herein. 

NOW,
THEREFORE, in consideration of the mutual covenants herein contained and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows: 

1.0    DEFINITIONS.

        1.1    "Code" means a set of instructions (in human readable or binary form or both) conforming to a specified protocol that
will cause a specified computer to function in the manner intended by the programmer. 

        1.2    "Deliverables" means all of the Code and other materials developed or modified by SPY for the NF Web Site pursuant to
this Agreement, but does not include any third party software or other materials unless they are specifically identified for inclusion as part of the Deliverables. 

        1.3    "First Half Sales" means the sales of NF Web Products through the NF Web Site during the period from the 1st day of a
month through the 15th day of such month. 

        1.4    "Host" or "Hosting" means to place and provide access to a Web Site on a
Web Server in such a manner that it can be viewed by third parties over the Internet. 

        1.5    "Minimum Net Sales" means the minimum Net Sales of NF Web Products sold through the NF Web Site pursuant to  Section 12.2 hereof.

        1.6    "Net Sales" means the total gross price at which the NF Web Products are sold by SPY through the NF Web Site, less the
following items of expense to the extent to which they are paid or allowed and included in the gross price: (i) trade or quantity discounts (but not cash discounts); (ii) credits for
returned or rejected NF Web Products (provided that amounts equal to such credits have been previously included in gross sales which have been reported on a statement); and (iii) sales taxes,
use taxes or turnover taxes on sales invoices. 

        1.7    "NF Domain Names" shall mean the following domain names: NOFEAR.COM, NOFEARFMX.COM, NOFEARSURF.COM, NOFEARWAKE.COM,
NOFEARUSA.COM, NOFEARMOTOX.COM AND NOFEARBIKEMX.COM. 

        1.8    "NF Percentage Fee" means the fee equal to five percent (5%) of Net Sales
each month. 

        1.9    "NF Share" means that portion of the price at which an NF Web Product is sold to a Purchaser equal to the Published
Wholesale Price therefor, as provided in Section 3.10 hereof. 

 

        1.10    "NF Web Product(s)" means those products that are made available by NO FEAR for purchase and sale through the NF Web
Site. 

        1.11    "NF Web Site" means the Web Site designed, developed, modified and installed by SPY for NO FEAR pursuant to this
Agreement. 

        1.12    "Published Wholesale Price" means the applicable wholesale prices for the various NF Web Products as determined by No
Fear and published from time to time in No Fear's then current wholesale price list for its products. 

        1.13    "Purchaser(s)" means the individuals or entities placing orders for NF Web Products through the NF Web Site. 

        1.14    "S&I Charges" means the shipping and insurance charges related to an order of NF Products on the NF Website. 

        1.15    "Second Half Sales" means the sales of NF Web Products through the NF Web Site during the period from the 16th day of a
month through the last day of such month. 

        1.16    "Start Date" means the date that the NF Web Site is accessible to Internet users and is fully operational as provided in  Section 2.3
hereof. 

        1.17    "Term" means the term of this Agreement as provided in  Section 11.1 hereof. 

2.0    DESIGN, DEVELOPMENT AND INSTALLATION OF NF WEB SITE.

        2.1    Design and Development of the NF Web Site.    Representatives of SPY and NO FEAR shall meet to the extent
necessary for SPY to understand NO FEAR's business, marketing processes and objectives with respect to the NF Web Site and e-commerce. Based thereon, SPY shall, at its sole expense,
design, develop, modify, install and launch the NF Web Site, which NF Web Site will reasonably implement NO FEAR'S Web Site and e-commerce objectives. 

        2.2    Testing of Web Site.    As soon as practicable after SPY develops the NF Web Site, the NF Web Site will be made
available for testing. NO FEAR, together with SPY, shall examine and test the NF Web Site. SPY shall assist NO FEAR with any tests to be performed on the NF Web Site to confirm that the NF Web Site
reasonably meets NO FEAR's Web Site and e-commerce objectives. 

        2.3    Installation of the NF Web Site and Transfer of Rights.    Once the NF Web Site has been accepted by NO FEAR,
SPY shall, at its sole expense, install the NF Web Site on the Host Web Server agreed upon by NO FEAR and the NF Web Site will be accessible to Internet users at the web address agreed upon by NO FEAR
and SPY. The parties acknowledge and agree that as of the date of the execution of this Agreement (i) there is an existing NF Web Site; (ii) the existing NF Web Site has been modified to
the extent necessary to meet NO FEAR's Web Site and e-commerce objectives; (iii) the NF Web Site, as modified by SPY, has been accepted by NO FEAR; and (iv) the Start Date is
October    , 2004. 

3.0    HOSTING, MAINTENANCE AND OPERATIONS SERVICES TO BE PROVIDED BY SPY.    SPY shall provide the following hosting, maintenance
and operations services with respect to the NF Web Site during the Term: 

        3.1    Hosting the NF Web Site.    SPY shall, at its sole expense, Host and maintain the NF Web Site on the following
terms: 

                3.1.1    The
NF Web Site may be placed on SPY's own Web Server(s), or SPY may arrange to have the NF Web Site co-hosted on one or more third-party Web
Servers, subject to approval by NO FEAR, which approval shall not be unreasonably withheld. 

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                3.1.2    The
Web Server(s) will initially provide an Internet connection for the NF Web Site with a bandwidth that is approved by No Fear, which approval shall
not be unreasonably withheld. The bandwidth of the Internet connection may be adjusted from time to time as reasonably determined by SPY to adequately handle the level of traffic on the NF Web Site
and maintain a reasonable average server response time to Purchasers viewing the NF Web Site over the Internet. 

                3.1.3    SPY
shall use its commercially reasonable efforts to minimize the amount of time that the NF Web Site is offline and unavailable to potential Purchasers.
However, NO FEAR acknowledges that Web Servers will go offline from time to time for maintenance, and that they are subject to service disruptions by power, telecommunications, and equipment
providers. 

                3.1.4    The
parties agree that NF Domain Names are necessary for the operation of the NF Web Site. In the event that any other domain names are necessary for the
efficient operation of the NF Web Site or the achievement of the e-commerce objectives of the parties, the parties shall mutually agree upon such domain names from time to time, and SPY
shall obtain such domain names at its reasonable expense, including payment of the initial and annual registration fees therefor during the term of this Agreement;  provided that such domain names are
registered in the name of NO FEAR and, provided,
further, that in no event shall SPY be required to incur costs greater that $1,000 per year to purchase or maintain domain names pursuant to this
Agreement. 

                3.1.5    SPY
shall have the right to register and/or publish a notice that it is doing business under the fictitious business name of "No Fear Online" and/or such
other names as may be approved by NO FEAR. 

        3.2    Maintain Underlying Code.    SPY shall use its commercially reasonable efforts to maintain the Code and ongoing
technical functionality of the NF Web Site. 

                3.2.1    SPY
shall use its commercially reasonable efforts to update and improve the Code underlying the NF Web Site from time to time to improve its performance
and take advantage of new technical functionality that becomes available. In the event that NO FEAR reasonably believes that the NF Web Site needs to be updated, NO FEAR shall notify SPY in writing
that the NF Web Site needs to be updated and indicate the areas in which the updating is necessary. SPY shall have ten
(10) days after receipt of such notice to update the NF Web Site as requested. 

                3.2.2    SPY
shall use its commercially reasonable efforts to correct any malfunctions that develop or are discovered in the Code underlying the NF Web Site,
including any malfunctions that prevent the NF Web Site from (i) providing NF Web Product information to potential Purchasers; (ii) accepting orders for NF Web Products;
(iii) providing order fulfillment information to NO FEAR; (iv) communicating order status information to Purchasers; and (v) charging Purchaser credit cards in a timely manner.
Any malfunctions in the NF Web Site shall be corrected within twenty-four (24) hours after SPY
learns of such malfunction or is notified by NO FEAR of such malfunction. 

        3.3    Update Content and NF Web Site.    From time to time, NO FEAR shall provide SPY with new NF Web Product and
other content information necessary to update the NF Web Site. Using such information, SPY shall use its commercially reasonable efforts to update the NF Web Site. 

                3.3.1    SPY
shall use its commercially reasonable efforts to complete updates to the NF Website within one
(1) week after receipt of the new NF Web Product and other information provided by NO FEAR for inclusion in the Website. If requested by NO FEAR,
SPY shall provide NO FEAR with a schedule of specific feature changes and the time period for completion of such changes. 

                3.3.2    SPY
shall use its commercially reasonable efforts to make one major re-design of the NF Web Site during each 12-month period
after the Start Date, which shall include the re-design of the home page, graphics and such other aspects of the NF Web Site as shall be mutually agreed upon. If 

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requested
by NO FEAR, SPY shall provide NO FEAR with a schedule of the specific design changes to the NF Web Site and the time period for completion of such changes. 

                3.3.3    All
updates, improvements and re-designs of the NF Web Site shall be subject to the approval of NO FEAR, which approval shall not be
unreasonably withheld. 

        3.4    Inventory Control. 

                3.4.1    SPY
shall use its commercially reasonable efforts to process ongoing adjustments to the inventory of NF Web Products and back order status information as
it is received from NO FEAR with respect to NF Web Products. The data shall be provided to SPY in such format and on such basis as mutually agreed upon between NO FEAR and SPY. 

                3.4.2    NO
FEAR shall use its commercially reasonable efforts to provide SPY with accurate inventory information. Provided that NO FEAR provides SPY with
accurate inventory information, SPY shall use its commercially reasonable efforts to maintain an accurate running inventory of the NF Web Products and notify interested prospective Purchasers when a
NF Web Product, size or color is out of stock, discontinued or back-ordered. SPY shall use its commercially reasonable efforts to inform potential Purchasers if
out-of-inventory NF Web Products have been reordered and, if so, when they are expected to be back in inventory. 

                3.4.3    SPY
acknowledges that (i) NO FEAR's inventory of NF Web Products is dynamic and subject to change and (ii) the inventory information
provided by NO FEAR may no longer be accurate by the time the NF Web Site is updated to reflect the most current inventory information. 

        3.5    Order Acceptance.    SPY shall use its commercially reasonable efforts to accept on-line electronic
orders from Purchasers for NF Web Products placed through the NF Web Site for delivery within the United States. SPY shall not accept orders for delivery outside of the United States without NO FEAR's
prior written consent. 

                3.5.1    When
a Purchaser desires to order the NF Web Products offered on the NF Web Site, SPY shall use its commercially reasonable efforts to collect the
product identification, size, color and other required product information from the Purchaser and verify that the desired NF Web Products are in inventory. 

                3.5.2    If
the desired NF Web Products are in inventory, SPY shall use its commercially reasonable efforts to request and collect the required Purchaser delivery
and credit card information, determine the total amount of the purchase price, including shipping, handling and applicable taxes, electronically verify that the Purchaser's credit card account is
valid and obtain the credit card company's authorization to charge the total cost of the purchase to the Purchaser's account. 

                3.5.3    Once
the NF Web Product inventory and Purchaser credit card status have been verified, SPY shall use its commercially reasonable efforts to accept the
Purchaser's order. 

        3.6    Processing of Orders and Shipping.    As orders for NF Web Products are received and accepted through the NF
Web Site, SPY shall use its commercially reasonable efforts to electronically provide NO FEAR's warehouse and shipping facility with order and shipping information. 

                3.6.1    NO
FEAR shall use its commercially reasonable efforts to ship to the Purchaser available NF Web Products within a reasonably prompt period after the
order is accepted and shall provide SPY with electronic confirmation of each NF Web Product shipment, together with the common carrier's shipment tracking number. SPY acknowledges that NO FEAR will
generally use UPS as the common carrier for shipments and reserves the right to purchase insurance with respect to each order shipped. If any of the NF Web Products which are ordered are not in stock,
NO FEAR shall promptly notify SPY that such NF Web Products are not in stock and the estimated date that such NF Web Products will be in stock. 

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                3.6.2    SPY
shall be responsible for all S&I Charges actually incurred by NO FEAR, and NO FEAR shall invoice SPY for such S&I Charges at such time that NO FEAR
invoices SPY for the NF Share to which the S&I Charges relate. 

                3.6.3    SPY
shall use its commercially reasonable efforts to correct any problems caused by errors in the orders transmitted to NO FEAR. NO FEAR shall be
responsible for any shipping problems, including any problems caused by UPS or any other common carrier, unless the shipping problem is caused by SPY. For example, if an order is shipped through UPS
and the Purchaser does not receive the order, it shall be NO FEAR's responsibility to pursue a claim with UPS. 

        3.7    Charging Credit Cards And Notifying Purchasers.    Within one
(1) business day of receiving notification of NF Web Product shipments from NO FEAR to Purchasers, SPY shall use its commercially reasonable
efforts to promptly charge the applicable Purchaser's credit card account with respect to such shipment and to notify such Purchaser by e-mail that such Purchaser's credit card account has
been charged and shall provide such Purchaser with the applicable shipment tracking number. The purchase price of NF Web Products which are back-ordered shall not be charged to a
Purchaser's credit card until they are actually shipped. 

                3.7.1    All
credit card charges shall be made through or under SPY's merchant accounts. 

                3.7.2    If
for any reason NO FEAR makes a partial shipment of a Purchaser's order, SPY shall use its commercially reasonable efforts to notify the Purchaser of
the NF Web Products shipped, the NF Web Products that are back-ordered or discontinued and the adjusted amount charged to the Purchaser's credit card account for the partial shipment. 

                3.7.3    When
SPY receives the confirmation of delivery information from the carrier, SPY shall use its commercially reasonable efforts to notify the Purchaser
that the carrier has confirmed delivery. 

                3.7.4    SPY
shall also use its commercially reasonable efforts to provide the Purchaser with an electronic means of canceling any orders that are not shipped
within thirty (30) days after the order is placed. 

        3.8    Product Returns.    NO FEAR shall process NF Web Products that are returned by Purchasers, and shall notify SPY
as to such returns so that SPY may credit the Purchaser's credit card account with the purchase price, including sales tax, of the NF Web Products that were returned. 

                3.8.1    A
Purchaser who claims that an NF Web Product is defective must return the defective NF Web Product to NO FEAR in order for the defective NF Web Product
to be processed as a return. 

                3.8.2    SPY
shall receive a credit equal to the amount of the NF Share which has been paid or credited to NO FEAR with respect to any NF Web Products that are
returned, and such credit shall be applied against and reduce the amount of the NF Share payable with respect to sales of NF Web Products as provided in  Section 3.10 hereof. 

        3.9    SPY Share.    In consideration for SPY's services in the design, development and installation of the NF Web
Site and SPY's services in connection with the hosting, maintenance and operations of the NF Web Site as described in Section 3 hereof, SPY shall
retain all revenue received by SPY in connection with the NF Web Products sold through the NF Web Site, other than the NF Share, the S&I Charges and the NF Percentage Fee. 

        3.10    NF Share.    The NF Share and the S&I Charges shall be payable by SPY to NO FEAR as provided in this  Section 3.10. 

                3.10.1    On
the 15th day of each month, SPY shall pay NO FEAR the NF Share and the S&I Charges relating to sales included in such NF Share relating to the Second
Half Sales for the prior month and on the last day of the month, SPY shall pay NO FEAR the NF Share and the S&I Charges 

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relating
to sales included in such NF Share relating to the First Half Sales for such current month. For example, on October 15, 2004, SPY shall pay to NO FEAR the NF Share (and related S&I
Charges) relating to the NF Web Products that were shipped during the period from September 16, 2004 through September 30, 2004, and on October 31, 2004, SPY shall pay to NO FEAR
the NF Share (and related S&I Charges) relating to the NF Web Products that were shipped during the period from October 1, 2004 through October 15, 2004. 

                3.10.2    So
long as there are any amounts owing by NO FEAR to SPY pursuant to that certain Secured Promissory Note dated July 1, 2004, and/or that certain
Secured Promissory Note dated August 16, 2004, executed by NO FEAR in favor of SPY, SPY shall have the right to offset all amounts payable to NO FEAR under this Agreement to the amounts owing
by NO FEAR to SPY pursuant to either of the above-referenced Secured Promissory Notes. In such event, SPY shall notify NO FEAR that it is applying such amounts to the amounts owing by NO FEAR to SPY
and shall identify the promissory note to which funds are being applied. 

                3.10.3    SPY
acknowledges and agrees that it has assumed the credit risk with respect to collecting the purchase price for the NF Web Products from any Purchaser
thereof. The NF Share is payable as provided herein regardless of whether SPY is able to collect the purchase price from the Purchaser thereof. 

        3.11    NF Percentage Fee.    For the right to sell the NF Products through the NF Web Site pursuant to this
Agreement, SPY shall pay NO FEAR the NF Percentage Fee with respect to sales of NF Web Products in the prior month within ten
(10) days after the end of each month. 

        3.12    Sales Tax Returns.    If applicable, SPY shall file any sales tax or other similar tax returns with the
appropriate governmental authorities and pay any applicable sales or similar taxes owed with respect to the NF Web Products which are sold through the NF Web Site during the Term. 

        3.13    Purchaser Communications.    SPY shall use its commercially reasonable efforts to provide and maintain a
Purchaser comment and service request e-mail template on the NF Web Site, and shall use its commercially reasonable efforts to promptly forward all Purchaser comments and service requests
to NO FEAR for action and response. SPY shall use its commercially reasonable efforts to route NO FEAR's responsive e-mail messages back to the Purchaser if so requested. 

4.0    ADDITIONAL NO FEAR OBLIGATIONS AND COMMITMENTS. 

        4.1    Product Availability And Information.    NO FEAR shall determine which styles of its products will be made
available for purchase over the Internet through the NF Web Site. The determination by NO FEAR of the NF Web Products available for purchase through the NF Web Site will be sufficiently broad to give
a reasonable prospect for Net Sales of at least $200,000 per year during the Term. 

                4.1.1    NO
FEAR shall provide SPY with marketing-related information, descriptions, prices and illustrations for each of the NF Web Products as they are made
available to the public. NO FEAR shall also provide SPY with additional selected text and graphic material on an ongoing basis to add visual interest to the NF Web Site. 

                4.1.2    All
of the text and graphic information provided by NO FEAR shall be in such format as mutually agreed upon. 

        4.2    Terms Of Sale And Warranty Information.    In addition to the marketing-related information described above, NO
FEAR shall provide SPY with its warranty, exchange, return and other customer service policies and procedures for inclusion on the NF Web Site. 

        4.3    Advertising The NF Web Site.    NO FEAR shall use its commercially reasonable efforts to advertise the NF Web
Site through NO FEAR's advertising channels in a manner which will increase 

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the
exposure of the NF Web Site to potential Internet users and which is consistent with NO FEAR's financial resources and business needs. NO FEAR shall include the web address of the NF Web Site in
such of its print, electronic, and other advertising as it determines. 

        4.4    Maintain And Reserve Inventory.    NO FEAR shall provide SPY with ongoing NF Web Product inventory information. 

                4.4.1    NO
FEAR shall provide SPY with direct electronic access to applicable information regarding the NF Web Products in NO FEAR's inventory control system in
order to enable SPY to continually update the NF Web Product inventory information on the NF Web Site. 

                4.4.2    NO
FEAR shall provide SPY with information about anticipated inventory shortages, NF Web Product phase-outs, and new NF Web Product
announcements in a reasonably prompt manner so that NF Web Products which are not available can be removed from the NF Web Site, anticipated dates of re-supply can be posted when the NF
Web Products are back-ordered and new NF Web Products promptly can be added to the NF Web Site as soon as they become available. 

        4.5    Prompt Product Delivery.    NO FEAR shall use its commercially reasonable efforts to fill all orders for NF Web
Products submitted to NO FEAR through the NF Web Site promptly and to insure that the correct NF Web Products and quantities thereof are shipped to the designated delivery address. 

        4.6    Shipping Information.    NO FEAR shall promptly provide SPY with electronic notice when each Purchaser order is
shipped by NO FEAR, including the date of shipment, the common carrier used and the carrier's tracking number so that SPY can (i) conclude the Purchaser charge process; (ii) notify the
Purchaser that the NF Web Products have been shipped; and (iii) provide the Purchaser with the carrier's tracking number. 

        4.7    Purchaser Support Services.    NO FEAR shall provide reasonable Purchaser support services and facilities to
handle complaints by Purchasers, NF Web Product returns and other Purchaser service requests. 

        4.8    Domain Name Registration Fees.    NO FEAR shall pay the annual registration fee for the NOFEAR.COM domain name. 

        4.9    NO FEAR Approvals.    Requests for approvals required to be obtained from NO FEAR pursuant to this Agreement
shall be sent to Calvin Lau or such other person as may be designated by NO FEAR in writing to SPY. 

5.0    OWNERSHIP OF COPYRIGHTS AND MATERIALS. 

        5.1    Ownership of Copyrights.    The NF Web Site and e-commerce capability developed by SPY under this
Agreement may contain copyrighted materials provided by NO FEAR or licensed from one or more third parties in addition to original materials developed by SPY. It may also contain NO FEAR or third
party materials that have been modified by SPY. As a result, the copyrights and derivative copyrights in the Code used to develop the Web Pages and the NF Web Site may belong to a combination of SPY,
NO FEAR, and/or third parties. 

                5.1.1    SPY
shall obtain any third-party copyright licenses that may be required to use the materials SPY employs in connection with the NF Web Site and its
constituent Web Pages unless those materials are specified or supplied by NO FEAR, in which case, NO FEAR shall obtain a license to use such material. When one party obtains a license to use
copyrighted material on the NF Web Site, such party shall inform the other party in writing that such material is licensed from third parties and of the terms and scope of the license. Each party
shall abide by the terms of any such third-party license, and shall not knowingly allow the use of the licensed materials beyond the scope of the license without first obtaining any required
supplemental licenses from the copyright owners. 

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        5.2    SPY's Original Contributions.    The copyrights in SPY's original contributions to the Internet marketing and
e-commerce plan, the Code, or any other copyrightable material developed by SPY, excluding therefrom any materials in which NO FEAR has copyrights, trademarks or other intellectual
property rights, shall belong to SPY from the moment the materials are created, and NO FEAR shall have no right to copy, use, or display such materials except as provided in this Agreement. The
copyrights in any materials that were not developed by SPY shall remain with the copyright owner of such materials. 

        5.3    NO FEAR's Trademarks and Copyrights.    NO FEAR's copyrights, trademarks or other intellectual property rights
used in connection with the NF Website shall belong to NO FEAR, and SPY shall have no right to copy, use, or display such Content or materials except for the purpose of developing, maintaining and
operating the NF Web Site pursuant to this Agreement. 

6.0    DATA SECURITY CONSIDERATIONS.    SPY shall use its commercially reasonable efforts to use such industry standard security
system approved by NO FEAR for transactional security on the NF Web Site when collecting order and credit card information from Purchasers and transmitting data and instructions to banking
institutions. Provided that SPY uses a industry standard security system approved by NO FEAR, SPY shall have no responsibility or liability for any failures or inadequacies of the security system
employed thereby. 

7.0    WARRANTY AND DISCLAIMER OF LIABILITY. 

        7.1    Warranty Exclusions.    SPY does not warrant that the NF Web Site will meet NO FEAR's needs and makes no
representations or warranties with respect to the performance of data communication lines accessing the Web Server, the Internet, the Web Server itself or the performance of any aspect of the NF Web
Site. SPY MAKES NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE NF WEB SITE OR THE SERVICES PROVIDED BY SPY
HEREUNDER. This is a commercial, and not personal or family, transaction. 

8.0    WARRANTY OF TITLE, NON-VIOLATION OF LAW AND INDEMNIFICATION.  

        8.1    NO FEAR Warranties.    NO FEAR hereby represents and warrants that, to its knowledge,
all the materials NO FEAR specifies or provides for inclusion in the NF Web Site under this Agreement shall not infringe any patent, copyright, trademark, or trade secret of another within the United
States, and shall not violate any right of publicity or privacy, be libelous or obscene, nor shall any information, recipe, formula or instruction contained in the materials be injurious to others
within the United States. 

        8.2    SPY Warranties.    SPY hereby represents and warrants that, except for materials that are specified or provided
by NO FEAR for inclusion in the NF Website, the NF Web Site and any materials provided by SPY or its subcontractors for use or inclusion therein will not infringe any patent, copyright, trademark or
trade secret of another within the United States, and will not violate any right of publicity or privacy, be libelous or obscene, nor shall any information, recipe, formula or instruction contained in
the materials be injurious to others within the United States. 

        8.3    Possible Actions by NO FEAR.    Should any component of or materials included in the NF Web Site that was
specified or provided by NO FEAR for inclusion in the NF Website (the "NF Material") become, or, in NO FEAR's opinion, are likely to become, the subject
of a claim of infringement of a patent, trademark, trade secret or copyright or are likely to become the basis of a claim alleging (i) the violation of the right of publicity or privacy;
(ii) that the NF Material is libelous or obscene; (iii) that the NF Material is injurious to others; or (iv) that the NF Material otherwise violates an applicable law, rule or
regulation, NO FEAR may: 

                8.3.1    if
possible, procure for itself, at no cost to SPY, the right to continue to use, display or provide the NF Material; 

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                8.3.2    replace
or modify the NF Material, at no cost to SPY, to correct or eliminate the potential problem; or 

                8.3.3    request
SPY's assistance, which shall be provided by SPY without cost, with the removal of the NF Material from the NF Web Site. 

        8.4    Possible Actions by SPY.    Should any components of or materials included in the NF Web Site that was
specified or provided by SPY for inclusion in the NF Website (the "SPY Material") become, or, in SPY's opinion, are likely to become, the subject of a
claim of infringement of a patent, trademark, trade secret or copyright or are likely to become the basis of a claim alleging (i) the violation of the right of publicity or privacy;
(ii) that the SPY Material is libelous or obscene; (iii) that the SPY Material is injurious to others; or (iv) that the SPY Material otherwise violates an applicable law, rule or
regulation, SPY may do any one of the following at SPY's option: 

                8.4.1    procure
for NO FEAR, at no cost to NO FEAR, the right to continue to use the SPY Material on the NF Web Site; 

                8.4.2    replace
or modify the SPY Material, at no cost to NO FEAR, to correct or eliminate the potential problem; or 

                8.4.3    if
the right to continue using the SPY Material cannot be obtained or the SPY Material can not be replaced or modified at a reasonable cost, remove, at
no cost to NO FEAR, the offending SPY Material from the NF Web Site. 

        8.5    Indemnity.    Each party (an "Indemnifying Party") agrees to
indemnify, defend and hold harmless the other party and its directors, employees and agents (an "Indemnified Party") from and against any and all suits,
actions, claims, losses, judgments, damages, liabilities, settlements, costs and expenses (including reasonable attorneys' fees) which may be imposed on or suffered by the Indemnified Party (in each
case, a "Claim") as a result of the Indemnifying Party's material breach of this Agreement. An Indemnified Party shall give the Indemnifying Party
timely notice in writing of any Claim and shall give control of the disposition thereof to the Indemnifying Party; provided,  however, that the failure to
give
such timely notice shall not relieve the Indemnifying Party of its obligations under this Section 8.5 unless such failure materially impairs the
ability of the Indemnifying Party to defend the Claim. The Indemnified Party shall have the right (but not obligation) to participate at its expense in any such Claim through counsel of its choosing.
The Indemnifying Party shall not, without the prior written consent of the Indemnified Party, effect any settlement with respect to any Claim unless such settlement either: (a) includes an
unconditional release of the Indemnified Party from all liability on all Claims that are the subject matter of such proceeding or (b) is consented to in writing by the Indemnified Party. If the
Indemnifying Party fails after notice to adequately and timely defend or settle any Claim, the Indemnified Party shall have the right (but not obligation) of defending or settling any such Claim, and
in such event, the Indemnifying Party shall indemnify the Indemnified Party for all damages, settlements, expenses and costs, including reasonable attorneys' fees, arising therefrom. 

9.0    ADDITIONAL REPRESENTATIONS AND WARRANTIES OF NO FEAR. 

        9.1    Insolvency.    NO FEAR hereby represents, warrants and covenants to SPY as follows: 

                9.1.1    As
of the date of this Agreement, NO FEAR will not be insolvent and will not be rendered insolvent by any of the transactions contemplated by this
Agreement. In addition, (i) NO FEAR will be able to pay its debts as they become due and (ii) taking into account all (if any) contingent liabilities and pending or threatened
litigation, NO FEAR will be able to satisfy any such liabilities and possible judgments against NO FEAR in actions for money damages that are reasonably anticipated to be rendered (taking into account
the maximum probable amount of such liabilities as well as judgments in any such actions as might be rendered) together with all other obligations of NO FEAR. The cash available to NO FEAR as of the
date of this Agreement will be sufficient to pay all 

9

 

of
its liabilities and judgments promptly in accordance with their terms. As used in this Section 9.1, (x) "insolvent" means that the sum
of the present fair saleable value of NO FEAR's assets does not and will not exceed its debts and other liabilities, and (y) "debts" includes any liability, whether matured or unmatured,
liquidated or unliquidated, absolute, fixed or contingent, disputed or undisputed, or secured or unsecured. 

                9.1.2    NO
FEAR has not entered into this Agreement with the actual intent to hinder, delay or defraud any person or entity to which NO FEAR was, is or may
become indebted. The amount of the consideration provided to NO FEAR under this Agreement is not less than the fair value of, and fair consideration in exchange for, the assets and rights being
assigned or otherwise transferred to SPY under this Agreement. 

                9.1.3    NO
FEAR has engaged in the transactions contemplated by this Agreement on an arms' length basis with SPY. For its own part, NO FEAR has conducted such
transactions in a manner intended to
obtain not less than the fair value of, and fair consideration in exchange for, the assets and rights being assigned or otherwise transferred to SPY under this Agreement. 

        9.2    No Conflicts.    NO FEAR hereby represents and warrants that it is not in violation of or default under the
material provisions of any contract to which it is a party or by which it is bound. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated
hereby will not result in any such violation, or be in conflict with or constitute, with or without the passage of time and giving of notice, a material default under any such provisions. 

        9.3    Capital Factors Agreement.    NO FEAR hereby represents and warrants that (i) all amounts owed under the
that certain Factoring Agreement by and between NO FEAR and Capital Factors, Inc. dated September 29, 2003, as amended (the "Capital Factors
Agreement") have been fully paid and (ii) the Capital Factors Agreement otherwise has been fully performed and terminated as of the date hereof. 

10.0    REMOVAL OF DISPUTED MATERIAL. 

        10.1    Forwarding of Complaints.    In the event that SPY receives a written complaint alleging that any aspect of
the NF Web Site is injurious to another, infringes or otherwise violates any third party's rights or violates any law or regulation, SPY shall promptly forward a copy of the complaint to NO FEAR. If
NO FEAR receives such a complaint, it shall promptly forward a copy of the complaint to SPY. 

        10.2    Rights to Remove Disputed Material.    Either NO FEAR or SPY shall have the right to remove, and NO FEAR shall
have the right to require SPY to remove, any disputed material from the NF Web Site or cease selling or distributing any products, advertising or information through the NF Web Site pending the
resolution of any dispute over such material. The removal may take place at any time after the party initiating the removal has received or given notice of a written complaint. The party initiating
the removal of disputed material, products, advertising or information shall promptly notify the other party of its action. Neither party shall have any liability to the other for the removal of any
material from the NF Web Site under the provisions of this Section 11.2. In the event that SPY desires to exercise its right to remove disputed
material from the NF Web Site, SPY shall first notify NO FEAR in writing that it desires to remove disputed material from the NF Web Site, which notice shall describe the disputed material and specify
the reasons for such proposed removal. If, within ten (10) days after receipt of such notice, NO
FEAR notifies SPY in writing that it has determined that such disputed material should not be removed, and agrees to indemnify SPY against any liability arising from such determination, SPY shall not
remove the disputed material. 

10

 

11.0    TERM AND TERMINATION.    

        11.1    Term.    Subject to earlier termination as provided herein, the initial term (the
"Term") of this Agreement shall commence on October    , 2004, and shall end on December 31, 2007. Thereafter, the Term shall
automatically renew for successive twelve (12) month periods unless either party notifies the
other party in writing at least sixty (60) days prior to the end of the initial term or any
renewal term that it elects to terminate the Agreement. 

        11.2    Minimum Net Sales; Termination Upon Failure to Make Minimum Net Sales.    Notwithstanding  Section 11.1 hereof, the
parties agree that the NF Website will achieve minimum Net Sales of NF Web Products (the
"Minimum Net Sales") as follows: 

	Period
	 	Minimum Net Sales

	7/1/04—12/31/04	 	0
	1/1/05—12/31/05	 	$450,000
	1/1/06—12/31/06	 	$650,000
	1/1/07—12/31/07	 	$950,000
	Years after 12/31/07	 	If the Term extends beyond December 31, 2007, the Minimum Net Sales applicable to any year thereafter shall be such amount as mutually agreed upon between the parties. If there is no agreement or the parties are unable to
agree as to the Minimum Net Sales applicable to any such year, the applicable Minimum Net Sales shall be an amount which is twenty percent (20%) higher than the Minimum Net Sales applicable to the immediately preceding year.

If
the NF Website fails to achieve the applicable Minimum Net Sales set forth above in any period, either party shall have the right to terminate this Agreement by giving other party written notice of
its election to terminate this Agreement within sixty (60) days after the end of the applicable
period, which notice shall specify an effective termination date which is not less than sixty
(60) days after the date of such notice. 

        11.3    Termination Upon Material Breach.    Notwithstanding  Section 11.1 hereof, either party shall have the right to
terminate this Agreement if the other party defaults in any of its material obligations
under
this Agreement, unless the defaulting party cures the material default with any applicable specified cure period. If there is no specified cure period applicable to a particular material default, the
defaulting party shall have thirty (30) days after the date of the written notice of such
material default to cure such material default. 

        11.4    Transfer of Operation of NF Website.    Upon termination of this Agreement for any reason, SPY shall take such
action and execute all documents necessary to return the operation and control of the NF Website to NO FEAR or such third party as reasonably designated by NO FEAR, including the transfer of any
rights necessary to continue to use, on a non-exclusive basis but without charge, any developments and enhancements made by SPY to the NF Website. 

        11.5    Liability Limitations.    Neither party to this Agreement shall be liable by reason of the termination of this
Agreement to the other for compensation, reimbursement or damages on account of any loss of prospective profits on anticipated sales or on account of expenditures, investments, leases or other
commitments relating to the business or goodwill of either party, notwithstanding any law to the contrary. 

12.0    CONFIDENTIALITY.    

        12.1    NO FEAR Confidential Information.    This Agreement, any confidential NO FEAR business information provided to
SPY in writing that is clearly marked confidential at the time of disclosure, and the pricing, terms and conditions under which SPY is providing its services under this Agreement shall 

11

 

be
kept strictly confidential for a period of two (2) years following the termination of this
Agreement; provided, however, that the parties agree that SPY may disclose the terms of this Agreement
and file this Agreement as an exhibit to SPY's Registration Statement on Form S-1 (or any other form of Registration Statement or periodic report), as required under the Securities
Act of 1933 and Securities and Exchange Act of 1934, as determined by SPY in its sole discretion. 

        12.2    Purchaser Data.    During the course of its performance under this Agreement, SPY shall use its commercially
reasonable efforts to (i) collect data and information about Purchasers visiting the NF Web Site; (ii) provide such data and information to NO FEAR; and (iii) make such data and
information accessible to NO FEAR on a current basis. The privacy of individual Purchasers shall be maintained in accordance with the privacy policies set forth on the NF Web Site. SPY shall also be
free to retain, evaluate and freely utilize such data and information for its own purposes during the Term. 

        12.3    Exclusions.    Confidential Information shall not include any information which (i) is already known to
the recipient at the time of disclosure through lawful channels of communication; (ii) is or becomes publicly known through no wrongful act of the recipient; (iii) is rightfully received
from a third party without a similar restriction and without breach of this Agreement; (iv) is independently developed by the recipient without breach of this Agreement; (v) is furnished
to a third party by the disclosing party without a similar restriction on the third party's rights; or (vi) is approved for release by written authorization of the disclosing party. 

13.0    GENERAL CONDITIONS.    

        13.1    Relationship of the Parties.    No party hereto is an agent or representative of the other, and no party shall
be liable for or bound by any representation, act or omission whatsoever of the other party. Nothing in this Agreement shall be construed to establish a joint venture, agency, employment or
partnership relationship between the parties hereto. This Agreement is not for the benefit of any third party. 

        13.2    Force Majeure.    Nonperformance of either party shall be excused to the extent that performance is rendered
impossible by strike, fire, flood, governmental acts, orders or restrictions, failures of suppliers or contractors or any other reason where failure to perform is beyond the control and not caused by
the negligence of the non-performing party. 

        13.3    Notices.    All notices, demands, requests, consents, statements, satisfactions, waivers, designations,
refusals, confirmations, denials and other communications that may be required or otherwise provided for or contemplated hereunder shall be in writing and shall be deemed to be properly given and
received (i) upon delivery, if delivered in person or by facsimile or e-mail transmission with receipt acknowledged; (ii) one
(1) business day after having been deposited for overnight delivery with Federal Express or another comparable overnight courier service; or
(iii) three (3) business days after having been deposited in any post office or mail
depository regularly maintained by the U.S. Postal Service or the official governmental postal service in the Territory, as the case may be, and sent by registered or certified mail (or its equivalent
in the applicable Territory), postage prepaid, addressed as follows: 

	 	 	If to NO FEAR:	 	If to SPY:	 	 
	

 	
 	

2251 Faraday Avenue

Carlsbad, California 92008

Attention: Mark Simo

Fax: (760) 931-0319

Email: calvinl@nofear.com	
 	

2070 Las Palmas Drive

Carlsbad, California 92009

Attention: Barry Buchholtz

Fax: (760) 804-8440

Email: BBuchholtz@spyoptic.com	
 	

 

12

 

or to such other person or persons at such address or addresses as may be designated by written notice to the other parties hereunder. 

        13.4    Severability.    If any provision or provisions of this Agreement shall be held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

        13.5    Binding Effect; Benefits.    This Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective heirs, successors and assigns; provided, however, that nothing in this
Agreement shall be construed to confer any rights, remedies, obligations or liabilities on any person other than the parties hereto or their respective heirs, successors and assigns. 

        13.6    Title and Captions.    Section headings are for convenience only and shall not be considered in the
interpretation of this Agreement. 

        13.7    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same document. The parties additionally acknowledge and agree that this Agreement may be executed and delivered by facsimile. At such
time as each of the parties has a facsimile copy of this Agreement, and/or counterparts thereof, containing the signatures of all of the parties, this Agreement shall be treated as having been fully
executed and delivered for all purposes. 

        13.8    Entire Agreement.    This Agreement sets forth the entire agreement and understanding of the parties relating
to the subject matter herein and merges all prior discussions between them. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective
unless in writing and signed by both parties to this Agreement. 

        13.9    Governing Law.    This Agreement shall in all respects be interpreted, construed in accordance with and
governed by the internal laws of the State of California, without regard to the principles thereof regarding conflict of laws. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 

	SPY OPTIC, INC,

a California corporation	 	NO FEAR, INC.,

a California corporation
	

 	
 	

 	
 	

 	
 	

 
	By	 	/s/  BARRY BUCHHOLTZ      
 Barry Buchholtz

Chief Executive Officer	 	By	 	/s/  MARK SIMO      
 Mark Simo

Chief Executive Officer

13

QuickLinks

Exhibit 10.15

WEB SITE DEVELOPMENT, SERVICE AND REVENUE SHARING AGREEMENT

RECITALSQuickLinks
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Exhibit 4.1  

RESTATED CERTIFICATE OF INCORPORATION

OF

THE FIRST MARBLEHEAD CORPORATION  

(originally
incorporated under the name First Marblehead Corporation on August 30, 1994) 

        FIRST:
The name of the Corporation is The First Marblehead Corporation.

        SECOND:
The address of the Corporation's registered office in the State of Delaware is Corporation Trust Center, 1209 Orange Street, in the City of Wilmington, County of New Castle. The
name of its registered agent at such address is The Corporation Trust Company. 

        THIRD:
The nature of the business or purposes to be conducted or promoted by the Corporation is to engage in any lawful act or activity for which corporations may be organized under the
General Corporation Law of Delaware. 

        FOURTH:
The total number of shares of all classes of stock which the Corporation shall have authority to issue is 120,000,000 shares, consisting of (i) 100,000,000 shares of
Common Stock, $.01 par value per share ("Common Stock"), and (ii) 20,000,000 shares of Preferred Stock, $.01 par value per share ("Preferred Stock"). 

        The
following is a statement of the designations and the powers, privileges and rights, and the qualifications, limitations or restrictions thereof in respect of each class of capital
stock of the Corporation. 

A     COMMON STOCK.  

        1.    General.    The voting, dividend and liquidation rights of the holders of the Common Stock are subject to and
qualified by the rights of the holders of the Preferred Stock of any series as may be designated by the Board of Directors upon any issuance of the Preferred Stock of any series. 

        2.    Voting.    The holders of the Common Stock shall have voting rights at all meetings of stockholders, each such
holder being entitled to one vote for each share thereof held by such holder. There shall be no cumulative voting. 

        The
number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a
majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law of Delaware. 

        3.    Dividends.    Dividends may be declared and paid on the Common Stock from funds lawfully available therefor as
and when determined by the Board of Directors and subject to any preferential dividend or other rights of any then outstanding Preferred Stock. 

        4.    Liquidation.    Upon the dissolution or liquidation of the Corporation, whether voluntary or involuntary,
holders of Common Stock will be entitled to receive all assets of the Corporation available for distribution to its stockholders, subject to any preferential or other rights of any then outstanding
Preferred Stock. 

B     PREFERRED STOCK.  

        Preferred
Stock may be issued from time to time in one or more series, each of such series to have such terms as stated or expressed herein and in the resolution or resolutions providing
for the issue of such series adopted by the Board of Directors of the Corporation as hereinafter provided. Any shares of Preferred Stock which may be redeemed, purchased or acquired by the Corporation
may be reissued 

 

except
as otherwise provided by law. Different series of Preferred Stock shall not be construed to constitute different classes of shares for the purposes of voting by classes unless expressly
provided. 

        Authority
is hereby expressly granted to the Board of Directors from time to time to issue the Preferred Stock in one or more series, and in connection with the creation of any such
series, by resolution or resolutions providing for the issuance of the shares thereof, to determine and fix the number of shares of such series and such voting powers, full or limited, or no voting
powers, and such designations, preferences and relative participating, optional or other special rights, and qualifications, limitations or restrictions thereof, including without limitation thereof,
dividend rights, conversion rights, redemption privileges and liquidation preferences, as shall be stated and expressed in such resolutions, all to the full extent now or hereafter permitted by the
General Corporation Law of Delaware. Without limiting the generality of the foregoing, the resolutions providing for issuance of any series of Preferred Stock may provide that such series shall be
superior or rank equally or be junior to the Preferred Stock of any other series to the extent permitted by law. Except as otherwise provided in this Certificate of Incorporation, no vote of the
holders of the Preferred Stock or Common Stock shall be a prerequisite to the designation or issuance of any shares of any series of the Preferred Stock authorized by and complying with the conditions
of this Certificate of Incorporation, the right to have such vote being expressly waived by all present and future holders of the capital stock of the Corporation. 

        The
number of authorized shares of Preferred Stock may be increased or decreased (but not below the number of shares then outstanding) by the affirmative vote of the holders of a
majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law of Delaware. 

        FIFTH:
Except as otherwise provided herein, the Corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, in the
manner now or hereafter prescribed by statute and this Certificate of Incorporation, and all rights conferred upon stockholders herein are granted subject to this reservation. 

        SIXTH:
In furtherance and not in limitation of the powers conferred upon it by the laws of the State of Delaware, the Board of Directors shall have the power to adopt, amend, alter or
repeal the Corporation's By-laws. The affirmative vote of a majority of the directors present at any regular or special meeting of the Board of Directors at which a quorum is present shall
be required to adopt, amend, alter or repeal the Corporation's By-laws. The Corporation's By-laws also may be adopted, amended, altered or repealed by the affirmative vote of
the holders of at least seventy-five percent (75%) of the votes which all the stockholders would be entitled to cast in any annual election of directors or class of directors.
Notwithstanding any other provisions of law, this Certificate of Incorporation or the By-Laws of the Corporation, and notwithstanding the fact that a lesser percentage may be specified by
law, the affirmative vote of the holders of at least seventy-five percent (75%) of the votes which all the stockholders would be entitled to cast in any annual election of directors or
class of directors shall be required to amend or repeal, or to adopt any provision inconsistent with, this Article SIXTH. 

        SEVENTH:
Except to the extent that the General Corporation Law of Delaware prohibits the elimination or limitation of liability of directors for breaches of fiduciary duty, no director
of the Corporation shall be personally liable to the Corporation or its stockholders for monetary damages for any breach of fiduciary duty as a director, notwithstanding any provision of law imposing
such liability. No amendment to or repeal of this provision shall apply to or have any effect on the liability or alleged liability of any director of the Corporation for or with respect to any acts
or omissions of such director occurring prior to such amendment or repeal. 

2

 

        EIGHTH:
The Corporation shall provide indemnification as follows: 

        1.    Actions, Suits and Proceedings Other than by or in the Right of the Corporation.    The Corporation shall
indemnify each person who was or is a party or threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the Corporation) by reason of the fact that he or she is or was, or has agreed to become, a director or officer of the Corporation, or is or
was serving, or has agreed to serve, at the request of the Corporation, as a director, officer, partner, employee or trustee of, or in a similar capacity with, another corporation, partnership, joint
venture, trust or other enterprise (including any employee benefit plan) (all such persons being referred to hereafter as an "Indemnitee"), or by reason of any action alleged to have been taken or
omitted in such capacity, against all expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by or on behalf of Indemnitee in connection
with such action, suit or proceeding and any appeal therefrom, if Indemnitee acted in good faith and in a manner which Indemnitee reasonably believed to be in, or not opposed to, the best interests of
the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee
did not act in good faith and in a manner which Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Corporation, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that his or her conduct was unlawful. 

        2.    Actions or Suits by or in the Right of the Corporation.    The Corporation shall indemnify any Indemnitee who
was or is a party to or threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Corporation to procure a judgment in its favor by reason of the
fact that Indemnitee is or was, or has agreed to become, a director or officer of the Corporation, or is or was serving, or has agreed to serve, at the request of the Corporation, as a director,
officer, partner, employee or trustee of, or in a similar capacity with, another corporation, partnership, joint venture, trust or other enterprise (including any employee benefit plan), or by reason
of any action alleged to have been taken or omitted in such capacity, against all expenses (including attorneys' fees) and, to the extent permitted by law, amounts paid in settlement actually and
reasonably incurred by or on behalf of Indemnitee in connection with such action, suit or proceeding and any appeal therefrom, if Indemnitee acted in good faith and in a manner which Indemnitee
reasonably believed to be in, or not opposed to, the best interests of the Corporation, except that no indemnification shall be made under this Section 2 in respect of any claim, issue or
matter as to which Indemnitee shall have been adjudged to be liable to the Corporation, unless, and only to the extent, that the Court of Chancery of Delaware shall determine upon application that,
despite the adjudication of such liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses (including attorneys' fees)
which the Court of Chancery of Delaware shall deem proper. 

        3.    Indemnification for Expenses of Successful Party.    Notwithstanding any other provisions of this Article, to
the extent that an Indemnitee has been successful, on the merits or otherwise, in defense of any action, suit or proceeding referred to in Sections 1 and 2 of this Article EIGHTH, or in defense of any
claim, issue or matter therein, or on appeal from any such action, suit or proceeding, Indemnitee shall be indemnified against all expenses (including attorneys' fees) actually and reasonably incurred
by or on behalf of Indemnitee in connection therewith. Without limiting the foregoing, if any action, suit or proceeding is disposed of, on the merits or otherwise (including a disposition without
prejudice), without (i) the disposition being adverse to Indemnitee, (ii) an adjudication that Indemnitee was liable to the Corporation, (iii) a plea of guilty or  nolo contendere by
Indemnitee, (iv) an adjudication that Indemnitee did not act in good faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the Corporation, and (v) with respect to any criminal proceeding, an 

3

 

adjudication
that Indemnitee had reasonable cause to believe his conduct was unlawful, Indemnitee shall be considered for the purposes hereof to have been wholly successful with respect thereto. 

        4.    Notification and Defense of Claim.    As a condition precedent to an Indemnitee's right to be indemnified, such
Indemnitee must notify the Corporation in writing as soon as practicable of any action, suit, proceeding or investigation involving such Indemnitee for which indemnity will or could be sought. With
respect to any action, suit, proceeding or investigation of which the Corporation is so notified, the Corporation will be entitled to participate therein at its own expense and/or to assume the
defense thereof at its own expense, with legal counsel reasonably acceptable to Indemnitee. After notice from the Corporation to Indemnitee of its election so to assume such defense, the Corporation
shall not be liable to Indemnitee for any legal or other expenses subsequently incurred by Indemnitee in connection with such action, suit, proceeding or investigation, other than as provided below in
this Section 4. Indemnitee shall have the right to employ his or her own counsel in connection with such action, suit, proceeding or investigation, but the fees and expenses of such counsel
incurred after notice
from the Corporation of its assumption of the defense thereof shall be at the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has been authorized by the Corporation,
(ii) counsel to Indemnitee shall have reasonably concluded that there may be a conflict of interest or position on any significant issue between the Corporation and Indemnitee in the conduct of
the defense of such action, suit, proceeding or investigation or (iii) the Corporation shall not in fact have employed counsel to assume the defense of such action, suit, proceeding or
investigation, in each of which cases the fees and expenses of counsel for Indemnitee shall be at the expense of the Corporation, except as otherwise expressly provided by this Article. The
Corporation shall not be entitled, without the consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Corporation or as to which counsel for Indemnitee shall have
reasonably made the conclusion provided for in clause (ii) above. The Corporation shall not be required to indemnify Indemnitee under this Article EIGHTH for any amounts paid in settlement of
any action, suit, proceeding or investigation effected without its written consent. The Corporation shall not settle any action, suit, proceeding or investigation in any manner which would impose any
penalty or limitation on Indemnitee without Indemnitee's written consent. Neither the Corporation nor Indemnitee will unreasonably withhold or delay its consent to any proposed settlement. 

        5.    Advance of Expenses.    Subject to the provisions of Section 6 of this Article EIGHTH, in the event that
the Corporation does not assume the defense pursuant to Section 4 of this Article EIGHTH of any action, suit, proceeding or investigation of which the Corporation receives notice under this
Article, any expenses (including attorneys' fees) incurred by or on behalf of Indemnitee in defending an action, suit, proceeding or investigation or any appeal therefrom shall be paid by the
Corporation in advance of the final disposition of such matter; provided, however, that the payment of such expenses incurred by or on behalf of
Indemnitee in advance of the final disposition of such matter shall be made only upon receipt of an undertaking by or on behalf of Indemnitee to repay all amounts so advanced in the event that it
shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Corporation as authorized in this Article; and further provided that no such advancement of expenses shall be
made under this Article EIGHTH if it is determined (in the manner described in Section 6) that (i) Indemnitee did not act in good faith and in a manner he reasonably believed to be in,
or not opposed to, the best interests of the Corporation, or (ii) with respect to any criminal action or proceeding, Indemnitee had reasonable cause to believe his conduct was unlawful. Such
undertaking shall be accepted without reference to the financial ability of Indemnitee to make such repayment. 

        6.    Procedure for Indemnification.    In order to obtain indemnification or advancement of expenses pursuant to
Section 1, 2, 3 or 5 of this Article EIGHTH, an Indemnitee shall submit to the Corporation a written request. Any such advancement of expenses shall be made promptly, and in any event within
30 days after receipt by the Corporation of the written request of Indemnitee, unless the Corporation determines within such 30-day period that Indemnitee did not meet the
applicable 

4

 

standard
of conduct set forth in Section 1, 2 or 5 of this Article EIGHTH, as the case may be. Any such indemnification, unless ordered by a court, shall be made with respect to requests under
Section 1 or 2 only as authorized in the specific case upon a determination by the Corporation that the indemnification of Indemnitee is proper because Indemnitee has met the applicable
standard of conduct set forth in Section 1 or 2, as the case may be. Such determination shall be made in each instance (a) by a majority vote of the directors of the Corporation
consisting of persons who are not at that time parties to the action, suit or proceeding in question ("disinterested directors"), whether or not a quorum, (b) by a committee of disinterested
directors designated by majority vote of disinterested directors, whether or not a quorum, (c) if there are no disinterested directors, or if the disinterested directors so direct, be
independent legal counsel (who may, to the extent permitted by law, by regular legal counsel to the Corporation) in a written opinion, or (d) by the stockholders of the Corporation. 

        7.    Remedies.    The right to indemnification or advancement of expenses as granted by this Article shall be
enforceable by Indemnitee in any court of competent jurisdiction. Neither the failure of the Corporation to have made a determination prior to the commencement of such action that indemnification is
proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Corporation pursuant to Section 6 of this Article EIGHTH that
Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct. Indemnitee's
expenses (including attorneys' fees) reasonably incurred in connection with successfully establishing Indemnitee's right to indemnification, in whole or in part, in any such proceeding shall also be
indemnified by the Corporation. 

        8.    Limitations.    Notwithstanding anything to the contrary in this Article, except as set forth in
Section 7 of the Article EIGHTH, the Corporation shall not indemnify an Indemnitee pursuant to this Article EIGHTH in connection with a proceeding (or part thereof) initiated by such Indemnitee
unless the initiation thereof was approved by the Board of Directors of the Corporation. Notwithstanding anything to the contrary in this Article, the Corporation shall not indemnify an Indemnitee to
the extent such Indemnitee is reimbursed from the proceeds of insurance, and in the event the Corporation makes any indemnification payments to an Indemnitee and such Indemnitee is subsequently
reimbursed from the proceeds of insurance, such Indemnitee shall promptly refund indemnification payments to the Corporation to the extent of such insurance reimbursement. 

        9.    Subsequent Amendment.    No amendment, termination or repeal of this Article or of the relevant provisions of
the General Corporation Law of Delaware or any other applicable laws shall affect or diminish in any way the rights of any Indemnitee to indemnification under the provisions hereof with respect to any
action, suit, proceeding or investigation arising out of or relating to any actions, transactions or facts occurring prior to the final adoption of such amendment, termination or repeal. 

        10.    Other Rights.    The indemnification and advancement of expenses provided by this Article shall not be deemed
exclusive of any other rights to which an Indemnitee seeking indemnification or advancement of expenses may be entitled under any law (common or statutory), agreement or vote of stockholders or
disinterested directors or otherwise, both as to action in Indemnitee's official capacity and as to action in any other capacity while holding office for the Corporation, and shall continue as to an
Indemnitee who has ceased to be a director or officer, and shall inure to the benefit of the estate, heirs, executors and administrators of Indemnitee. Nothing contained in this Article shall be
deemed to prohibit, and the Corporation is specifically authorized to enter into, agreements with officers and directors providing indemnification rights and procedures different from those set forth
in this Article. In addition, the Corporation may, to the extent authorized from time to time by its Board of Directors, grant indemnification rights to other employees or agents of the Corporation or
other persons serving the Corporation and such rights may be equivalent to, or greater or less than, those set forth in this Article. 

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        11.    Partial Indemnification.    If an Indemnitee is entitled under any provision of this Article to indemnification
by the Corporation for some or a portion of the expenses (including attorneys' fees), judgments, fines or amounts paid in settlement actually and reasonably incurred by or on behalf of Indemnitee in
connection with any action, suit, proceeding or investigation and any appeal therefrom but not, however, for the total amount thereof, the Corporation shall nevertheless indemnify Indemnitee for the
portion of such expenses (including attorneys' fees), judgments, fines or amounts paid in settlement to which Indemnitee is entitled. 

        12.    Insurance.    The Corporation may purchase and maintain insurance, at its expense, to protect itself and any
director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise (including any employee benefit plan) against any expense,
liability or loss incurred by him in any such capacity, or arising out of his status as such, whether or not the Corporation would have the power to indemnify such person against such expense,
liability or loss under the General Corporation Law of Delaware. 

        13.    Savings Clause.    If this Article or any portion hereof shall be invalidated on any ground by any court of
competent jurisdiction, then the Corporation shall nevertheless indemnify each Indemnitee as to any expenses (including attorneys' fees), judgments, fines and amounts paid in settlement in connection
with any action, suit, proceeding or investigation, whether civil, criminal or administrative, including an action by or in the right of the Corporation, to the fullest extent permitted by any
applicable portion of this Article that shall not have been invalidated and to the fullest extent permitted by applicable law. 

        14.    Definitions.    Terms used herein and defined in Section 145(h) and Section 145(i) of the
General Corporation Law of Delaware shall have the respective meanings assigned to such terms in such Section 145(h) and Section 145(i). 

        NINTH:
This Article is inserted for the management of the business and for the conduct of the affairs of the Corporation. 

        1.    Number of Directors; Election of Directors.    Subject to the rights of holders of any series of Preferred Stock
to elect directors, the number of directors of the Corporation shall be determined from time to time by, or in the manner provided in, the By-laws of the Corporation. Election of directors
need not be by written ballot, except as and to the extent provided in the By-laws of the Corporation. 

        2.    Quorum.    A majority of the directors at any time in office shall constitute a quorum for the transaction of
business. In the event one or more of the directors shall be disqualified to vote at any meeting, then the required quorum shall be reduced by one for each director so disqualified. In no case,
however, shall less than one-third of the number of directors fixed pursuant to Section 1 of this Article NINTH constitute a quorum. If at any meeting of the Board of Directors
there shall be less than such a quorum, a majority of the directors present may adjourn the meeting from time to time without further notice other than announcement at the meeting, until a quorum
shall be present. 

        3.    Action at Meeting.    Every act or decision done or made by a majority of the directors present at a meeting
duly held at which a quorum is present shall be regarded as the act of the Board of Directors unless a greater number is required by law, by this Certificate of Incorporation, or by the
By-laws of the Corporation. 

        4.    Removal.    Subject to the rights of holders of any series of Preferred Stock, directors of the Corporation may
be removed only for cause by (i) a majority of the directors present at a meeting duly held at which a quorum is present or (ii) the affirmative vote of the holders of at least
seventy-five percent (75%) of the votes which all the stockholders would be entitled to cast in any annual election of directors or class of directors. 

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        5.    Vacancies.    Subject to the rights of holders of any series of Preferred Stock, any vacancy or newly created
directorships in the Board of Directors, however occurring, shall be filled only by vote of a majority of the directors then in office, although less than a quorum, or by a sole remaining director and
shall not be filled by the stockholders. A director elected to fill a vacancy shall be elected to hold office until the next election of the class for which such director shall have been chosen,
subject to the election and qualification of his successor and to his earlier death, resignation or removal. 

        6.    Stockholder Nominations and Introduction of Business, Etc.    Advance notice of stockholder nominations for
election of directors and other business to be brought by stockholders before a meeting of stockholders shall be given in the manner provided by the By-laws of the Corporation. 

        7.    Amendments to Article.    Notwithstanding any other provisions of law, this Certificate of Incorporation or the
By-laws of the Corporation, and notwithstanding the fact that a lesser percentage may be specified by law, the affirmative vote of the holders of at least seventy-five percent
(75%) of the votes which all the stockholders would be entitled to cast in any annual election of directors or class of directors shall be required to amend or repeal, or to adopt any provision
inconsistent with, this Article NINTH. 

        TENTH:
Stockholders of the Corporation may not take any action by written consent in lieu of a meeting. Notwithstanding any other provisions of law, this Certificate of Incorporation or
the By-laws of the Corporation, and notwithstanding the fact that a lesser percentage may be specified by law, the affirmative vote of the holders of at least seventy-five
percent (75%) of the votes which all the stockholders would be entitled to cast in any annual election of directors or class of directors shall be required to amend or repeal, or to adopt any
provision inconsistent with, this Article TENTH. 

        ELEVENTH:
Special meetings of stockholders for any purpose or purposes may be called at any time by the Board of Directors, the Chairman of the Board or the President, but such special
meetings may not be called by any other person or persons. Business transacted at any special meeting of stockholders shall be limited to matters relating to the purpose or purposes stated in the
notice of meeting. Notwithstanding any other provision of law, this Certificate of Incorporation or the By-laws of the Corporation, and notwithstanding the fact that a lesser percentage
may be specified by law, the affirmative vote of the holders of at least seventy-five percent (75%) of the votes which all the stockholders would be entitled to cast in any annual election
of directors or class of directors shall be required to amend or repeal, or to adopt any provision inconsistent with, this Article ELEVENTH. 

        IN
WITNESS WHEREOF, this Restated Certificate of Incorporation, which restates, integrates and amends the certificate of incorporation of the Corporation, and which has been duly adopted
in accordance with Sections 228, 242 and 245 of the Delaware General Corporation Code, has been executed by its duly authorized officer this 29th day of October, 2003. 

	 	 	THE FIRST MARBLEHEAD CORPORATION
	

 	
 	

By:	
 	

/s/ RALPH JAMES
 Name: Ralph James

Title: President

7

 
 

CERTIFICATE OF AMENDMENT
  OF
  RESTATED CERTIFICATE OF INCORPORATION
  OF
  THE FIRST MARBLEHEAD CORPORATION    
    

Pursuant
to Section 242 of the

General Corporation Law of the State of Delaware 

        The
First Marblehead Corporation (hereinafter called the "Corporation"), a corporation organized and existing under the General Corporation Law of the State of Delaware, does hereby
certify as follows: 

        At
a meeting of the Board of Directors of the Corporation, a resolution was duly adopted pursuant to Section 242 of the General Corporation Law of the State of Delaware setting
forth a proposed amendment to the Restated Certificate of Incorporation of the Corporation and declaring said amendment to be advisable. The resolution setting forth the amendment is as follows: 

	

        RESOLVED:	
 	

That the first paragraph of Article FOURTH of the Restated Certificate of Incorporation of the Corporation be and hereby is deleted in its entirety and the following first paragraph of Article FOURTH is inserted in lieu thereof:
	 	 	"FOURTH: The total number of shares of all classes of stock which the Corporation shall have authority to issue is 170,000,000 shares, consisting of (i) 150,000,000 shares of Common Stock, $.01 par value per share
("Common Stock"), and (ii) 20,000,000 shares of Preferred Stock, $.01 par value per share ("Preferred Stock")."

        The
stockholders of the Corporation duly approved said amendment in accordance with Section 242 of the General Corporation Law of the State of Delaware on November 18,
2004. 

[Remainder of page intentionally blank] 

        IN
WITNESS WHEREOF, this Certificate of Amendment of Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation this 18th day of November,
2004. 

	 	 	THE FIRST MARBLEHEAD CORPORATION
	

 	
 	

By:	
 	

/s/ DANIEL MAXWELL MEYERS
 Daniel Maxwell Meyers

Chairman of the Board and Chief Executive

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CERTIFICATE OF AMENDMENT OF RESTATED CERTIFICATE OF INCORPORATION OF THE FIRST MARBLEHEAD CORPORATION

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