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Exhibit 10.3.7    
  

 
 

Eighth Amendment to Services Agreement    
  

        This Eighth Amendment to Services Agreement (the "Amendment") is made and entered into this 4 day of February, 2001, by and between The Wet
Seal, Inc., a Delaware corporation ("Wet Seal"), Kathy Bronstein ("Bronstein"), with respect to the following facts: 

        The
parties entered into a Services Agreement as of December 30, 1988, as amended ("the Services Agreement"). The parties desire to amend certain terms of the Services Agreement. 

        The
parties therefore agrees as follows: 

        1.
Any terms defined by the Services Agreement as amended shall have the same meanings assigned thereby for purpose of this Agreement. 

        2.
From and after February 4, 2001, Bronstein's Basic Salary shall be Six Hundred Fifty Thousand Dollars ($650,000) per annum, payable semimonthly. 

        3.
Except as amended herein, the Services Agreement as amended is hereby confirmed and republished in full and acknowledged by the parties to be in full force and affect. 

        The
parties hereto have executed this Amendment as of the day and year first above written. 

	"Wet Seal"	 	"Bronstein"
	

THE WET SEAL, INC.,

A Delaware Corporation	
 	

 
	

/s/ Irving Teitelbaum
 Irving Teitelbaum

Its: Chairman of the Board	
 	

/s/ Kathy Bronstein
 Kathy Bronstein

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Exhibit 10.3.7

Eighth Amendment to Services AgreementQuickLinks
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Exhibit 10.3.8    
  

 
 

Supplemental Compensation Agreement    
  

        This supplemental compensation agreement is made and entered into this 1 day of April, 2001, by and between The Wet Seal, Inc., a Delaware
corporation ("Wet Seal"), Kathy Bronstein ("Bronstein"), and specifies compensation that will be paid to Employee in addition to the compensation specified in the Service Agreement dated
December 30, 1998, as amended, between Wet Seal and Bronstein. 

        In
consideration of Bronstein's continued employment with the Wet Seal, the Wet Seal agrees to pay all interest relating to outstanding loan balances on a $2,000,000 line of credit, to
be arranged by Bronstein at her convenience and liability, relating to the construction of Bronstein's personal residence beginning March 1, 2001, and ending when the line of credit is
converted by Bronstein into a mortgage on her personal residence. Thereafter, the Wet Seal agrees to pay interest on $2,000,000 of the mortgage loan balance on Bronstein's personal residence through
the month of March, 2006, or the end of Bronstein's employment, whichever is sooner. 

        The
Wet Seal will make the payments specified in this agreement on a monthly basis based upon documents produced by the lending institutions issuing the line of credit and mortgage loan
discussed in the preceding paragraph. 

        Executed
by the Wet Seal and Bronstein on the dates set forth as written above. 

	"Wet Seal"	 	"Bronstein"
	

THE WET SEAL, INC.,

A Delaware Corporation	
 	

 
	

/s/ Irving Teitelbaum
 Irving Teitelbaum

Chairman of the Board	
 	

/s/ Kathy Bronstein
 Kathy Bronstein

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Exhibit 10.3.8

Supplemental Compensation AgreementQuickLinks
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Exhibit 10.5.10
  Amendment to Documents    
  

 
 

AMENDMENT NO.5 TO BUSINESS LOAN AGREEMENT    
  

        This Amendment No.5 (the "Amendment") dated as of December 21, 2001, is between Bank of America, N.A. (the "Bank") and The Wet Seal, Inc. (the
"Borrower"). 

 
 

RECITALS    
  

        A. The Bank and the Borrower entered into a certain Business Loan Agreement dated as of October 29, 1999, as previously amended (the "Agreement"). 

        B.
The Bank and the Borrower desire to further amend the Agreement. 

 
 

AGREEMENT    
  

        1.  Definitions. Capitalized terms used but not defined in this Amendment shall have the meaning given to them in the Agreement.

        2.
Amendments. The Agreement is hereby amended as follows: 

        2.1
Paragraph 1.2 of the Agreement is amended to read in its entirety as follows: 

"1.2  Availability Period. The line of credit is available between the date of this Agreement and January 1, 2004, or such earlier date as the
availability may terminate as provided in this Agreement (the 'Facility No. 1 Expiration Date')." 

        2.2
Paragraphs 9.3 and 9.4 of the Agreement are deleted in their entirety. 

        2.3
Paragraph 9.7 of the Agreement is amended to read in its entirety as follows: 

"9.7
Capital Expenditures. Not to make capital expenditures to acquire fixed or capital assets (on a consolidated basis) in an aggregate amount in excess of Fifty Million Dollars ($50,000,000) for the
fiscal year ending on or about January 31, 2002 and for any fiscal year thereafter." 

        2.4
In Subparagraph 9.8(b) of the Agreement, the amount "Twenty Million Dollars ($20,000,000)" is substituted for the amount "Forty Million Dollars ($40,000,000)." 

        2.5
In Paragraph 9.10 of the Agreement, the number "30" is substituted for the number "60." 

        2.6
Paragraph 9.22 of the Agreement is amended to read in its entirety as follows: 

"9.22
Assets and Liabilities of Subsidiaries. Not to permit any subsidiary of Borrower to have assets in excess of Five Hundred Thousand Dollars ($500,000) and in the aggregate Two Million Five
Hundred Thousand Dollars ($2,500,000) for all subsidiaries (excluding WSR); provided that WSCC may: 

(a)
incur obligations to the Bank pursuant to continuing guaranties of the obligations of the Borrower; and 

(b)
purchase inventory for the account of the Borrower provided that each such purchase transaction is immediately liquidated by means of a corresponding sale to the Borrower for the same price paid
for such inventory by WSCC." 

        2.7
A new Paragraph 9.25 is added to the Agreement, which reads in its entirety as follows: 

"9.25
Tangible Net Worth. To maintain consolidated tangible net worth equal to at least the amounts specified below beginning on August 4, 2001 and thereafter: 

(a)
One Hundred Fifty-five Million One Hundred Sixty Five Thousand Dollars ($155,165,000); plus 

(b) 50%
of cumulative net income (without deduction for net losses); plus 

(c)
90% of any equity issuance (net of related issuance costs) less actual stock repurchases up to $20,000,000. 

"Tangible
Net Worth' means the value of Borrower's total assets (including leaseholds and leasehold improvements and reserves against assets but excluding goodwill, patents. trademarks, trade names,
organization expense, unamortized debt discount and expense, capitalized or deferred research and development costs, deferred marketing expenses, and other like intangibles, and monies due from
affiliates, officers, directors, employees, shareholders, members or managers of Borrower) less total liabilities, including but not limited to accrued and deferred income taxes, but excluding the
non-current portion of Subordinated Liabilities. "Subordinated Liabilities' means liabilities subordinated to Borrower's obligations to Bank in a manner acceptable to Bank in its sole
discretion." 

        2.8
A new Paragraph 9.26 is added to the Agreement, which reads in its entirety as follows: 

"9.26
Minimum EBITDA. To maintain minimum EBITDA of at least Thirty-Five Million Dollars ($35,000,000) on a trailing four-quarter basis. 

'EBITDA'
means net income, less income or plus loss from discontinued operations and extraordinary items, plus income taxes, plus interest expense, plus depreciation, depletion, amortization and other
non-cash charges plus losses from discontinued operations and extraordinary expenses." 

        2.9
Paragraph 11.6 of the Agreement is deleted in its entirety. 

        2.10
In Subparagraph 11.10 of the Agreement, the amount One Million Dollars ($1,000,000) is substituted for the amount Five Hundred Thousand Dollars ($500,000)." 

        3.
Representations and Warranties. When the Borrower signs this Amendment, the Borrower represents and warrants to the Bank that:
(a) there is no event which is, or with notice or lapse of time or both would be, a default under the Agreement except those events, if any, that have been disclosed in writing to the Bank or
waived in writing by the Bank, (b) the representations and warranties in the Agreement are true as of the date of this Amendment as if made on the date of this Amendment, (c) this
Amendment is within the Borrower's powers. has been duly authorized, and does not conflict with any of the Borrower's organizational papers, and (d) this Amendment does not conflict with any
law, agreement, or obligation by which the Borrower is bound. 

        4.
Conditions. This Amendment will be effective when the Bank receives the following items, in form and content acceptable to the Bank: 

4.1
A Corporate Resolution to Obtain Credit certified by the Secretary of the Borrower in the amount of Fifty Million Dollars ($50,000,000). 

        5.  Effect of Amendment. Except as provided in this Amendment, all of the terms and conditions of the Agreement shall remain in full force
and effect. 

        This
Amendment is executed as of the date stated at the beginning of this Amendment. 

	Bank of America, N.A.	 	The Wet Seal, Inc.
	

/s/ Cynthia K. Goodfellow	
 	

/s/ Kathy Bronstein
	By: Cynthia K. Goodfellow	 	By:	 	Kathy Bronstein

Vice Chairman and Chief Executive Officer
	

 	
 	

/s/Walter Parks
	 	 	By:	 	Walter Parks, Executive Vice President and CFO

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Exhibit 10.5.10 Amendment to Documents

AMENDMENT NO.5 TO BUSINESS LOAN AGREEMENT

RECITALS

AGREEMENTQuickLinks
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Exhibit 10.10.1    
  

 
 

Second Amendment of The Wet Seal, Inc.
  1996 Long-Term Incentive Plan    
  

        Section 5.1 is amended to delete the following words each time they appear therein "one million six hundred and fifty thousand (1,650,000)" and to replace
the deleted words with "two million six hundred and fifty thousand (2,650,000)". 

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Exhibit 10.10.1

Second Amendment of The Wet Seal, Inc. 1996 Long-Term Incentive Plan

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