Document:

EX-10.1

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

THE CIT GROUP/COMMERCIAL SERVICES, INC.

as Agent

the Lenders that are parties hereto

and

SKECHERS U.S.A., INC.,

SKECHERS U.S.A., INC. II,

SKECHERS BY MAIL, INC.

and

310 GLOBAL BRANDS, INC.

as Borrowers

and

WACHOVIA CAPITAL MARKETS, LLC

as Lead Arranger

1

Dated: May 31, 2006

TABLE OF CONTENTS

Page

EXHIBITS

Exhibit A — Form of Assignment and Transfer Agreement

Exhibit B — Form of Revolving Loan Promissory Note

Exhibit C — Form of Compliance Certificate

Exhibit D — Form of Lender’s Loss Payable Endorsement

SCHEDULES

Schedule 1.1(a) — Existing Indebtedness

Schedule 1.1(b) – Surviving Loan Documents

Schedule 6.7 – Copyrights, Patents and Trademarks

Schedule 6.10 – Depository Accounts

Schedule 7.1(b) — Borrower and Collateral Information

Schedule 7.1(f) — Environmental Matters

Schedule 7.1(h) – License Agreements

2

THE CIT GROUP/COMMERCIAL SERVICES, INC., a New York corporation (“CIT”), with
offices located at 300 South Grand Avenue, Los Angeles, California 90071, WACHOVIA CAPITAL FINANCE
CORPORATION (WESTERN), a California corporation (“Wachovia”), with offices located at 251
South Lake Avenue, Suite 900, Pasadena, California 91101, BANK OF AMERICA, N.A., a national banking
association (“Bank of America”), with offices located at 55 South Lake Avenue, Suite 900,
Pasadena, California 91101 (CIT, Wachovia, Bank of America and any other entity becoming a Lender
hereunder pursuant to Section 8.16 or Section 13.4(b) of this Second Amended and
Restated Loan and Security Agreement (this “Agreement”), are collectively referred to as
the “Lenders” and individually as a “Lender”), CIT, as the Agent for the Lenders
(the “Agent”), and WACHOVIA CAPITAL MARKETS, LLC, as Lead Arranger, are pleased to confirm
the terms and conditions under which the Lenders, acting through the Agent, shall make revolving
loans and other financial accommodations to SKECHERS U.S.A., INC., a Delaware corporation
(“Skechers”), SKECHERS U.S.A., INC. II, a Delaware corporation (“Skechers II”),
SKECHERS BY MAIL, INC., a Delaware corporation (“Skechers By Mail”), and 310 GLOBAL BRANDS,
INC., a Delaware corporation (“310”, and together with Skechers, Skechers II, and Skechers
By Mail individually a “Borrower” and collectively and jointly and severally, the
"Borrowers”).

RECITALS

A. Skechers entered into that certain Amended and Restated Loan and Security Agreement (as
amended, modified or supplemented from time to time, the “Existing Loan Agreement”), dated
as of September 4, 1998, with Heller Financial, Inc. (“Heller”), as agent and as a lender
thereunder.

B. CIT has purchased all of Heller’s rights, title and interest in and to the Existing Loan
Agreement and all notes and other loan documents ancillary to the Existing Loan Agreement and,
accordingly, CIT has succeeded to Heller’s interest therein as agent and as a lender.

C. Skechers, the Agent and the Lenders wish to amend and restate the existing Loan Agreement
in its entirety, as set forth herein, including the addition of Skechers II, Skechers By Mail and
310 Global Brands as co-borrowers.

D. The Borrowers, the Agent and the Lenders intend that the “Obligations” (as defined in the
Existing Loan Agreement) shall continue to exist under, and be evidenced by, this Agreement and
that the “Collateral” (as defined in the Existing Loan Agreement) shall secure the Obligations (as
defined in this Agreement), except to the extent that certain types of collateral are no longer
part of the Collateral under this Agreement.

	 	 	 
	SECTION 1.Definitions	 	 
	1.1

	 	Defined Terms. As used in this Agreement:
	
 
	 	 

Accounts shall mean any and all of the Borrowers’ present and future: (a) accounts (as
defined in the UCC); (b) instruments, documents, chattel paper (including electronic chattel paper)
(all as defined in the UCC); (c) unpaid seller’s or lessor’s rights (including rescission,
replevin, reclamation, repossession and stoppage in transit) relating to the foregoing or arising
therefrom; (d) rights to any goods represented by any of the foregoing, including rights to
returned, reclaimed or repossessed goods; (e) reserves and credit balances arising in connection
with or pursuant to this Agreement; (f) guaranties, other supporting obligations, payment
intangibles and letter of credit rights (all as defined in the UCC); (g) insurance policies or
rights relating to any of the foregoing; (h) general intangibles pertaining to any of the foregoing
(including rights to payment, including those arising in connection with bank and non-bank credit
cards), and all books and records and any electronic media and software relating thereto;
(i) notes, deposits or other property of the Borrowers’ account debtors securing the obligations
owed by such account debtors to the Borrowers; and (j) all Proceeds of any of the foregoing.

Adjustment Date shall mean July 1, 2006 and the first day of each fiscal quarter of
Skechers thereafter.

Agent’s Bank Account shall mean the Agent’s bank account at JPMorgan Chase Bank (or
its successor) in New York, New York.

Applicable Margin shall mean, from the Restatement Effective Date until the initial
Adjustment Date, with respect to the Revolving Loans, -0.5% for Chase Bank Rate Loans and 1.25% for
LIBOR Loans. On the initial Adjustment Date, and on the each subsequent Adjustment Date
thereafter, the Applicable Margins for Chase Bank Rate Loans and LIBOR Loans shall be adjusted
prospectively based on the Average Quarterly Excess Availability for the most recently completed
fiscal quarter of Skechers, to the following amounts:

	 	 	 	 	 	 	 
	Average Quarterly Excess	 	 	 	 
	Availability	 	Chase Bank Rate Loans	 	LIBOR Loans
	Greater than $150,000,000

	 	-0.50%
	 	 	1.25	%
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Greater than $75,000,000

but less than or equal

to $150,000,000

	 	

-0.25%
	 	

1.50%

	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Less than or equal to

$75,000,000

	 	

0%
	 	

1.75%

	 

	 	 
	 	 	 	 

On each Adjustment Date, the Applicable Margin shall be adjusted to reflect the Average Quarterly
Excess Availability for the immediately preceding fiscal quarter of Skechers. Notwithstanding the
foregoing, no reduction in Applicable Margins shall occur on an Adjustment Date if a Default or an
Event of Default shall have occurred and remain outstanding on such Adjustment Date.

Assignment and Transfer Agreement shall mean the Assignment and Transfer Agreement in
the form of Exhibit A attached hereto.

Availability Reserve shall mean an amount equal to the sum of:

(a) any reserve which the Agent may establish from time to time pursuant to the express
terms of this Agreement; plus

(b) (i) three (3) months rental payments or similar charges for Borrowers’ leased premises
or other Collateral locations for which Borrowers have not delivered to the Agent a
landlord’s waiver in form and substance reasonably satisfactory to the Agent, and (ii) three
(3) months estimated payments (plus any other fees or charges owing by the Borrowers) to any
applicable warehousemen or third party processor (as determined by the Agent in the exercise
of its reasonable business judgment), provided that any of the foregoing amounts
shall be adjusted from time to time hereafter upon (x) delivery to the Agent of any such
acceptable waiver, (y) the opening or closing of a Collateral location and/or (z) any change
in the amount of rental, storage or processor payments or similar charges, provided
further that the reserve set forth in clause (i) above shall not apply to the
Borrowers’ showrooms and retail store locations except that the Agent shall have the right
in the exercise of its reasonable business judgment to implement such a reserve hereafter
with respect to retail stores that are located in states where applicable law provides for a
lien on the Borrowers’ Inventory in favor of the landlord.

Average Quarterly Excess Availability shall mean the average amount of Excess
Availability during any fiscal quarter of Skechers, calculated by dividing the sum of Excess
Availability as of the last day of each month during such quarter by three (3).

Borrowing Base shall mean, at any time:

(a) the sum at such time of: (i) eighty-five percent (85%) of the Borrowers’ aggregate
outstanding Eligible Accounts Receivable; plus (ii) the lesser of (x) seventy-five
percent (75%) of the aggregate value of the Borrowers’ Eligible Inventory, valued at the
lower of cost or market on a first in, first out basis during each period of time from
August 1 through November 30 and sixty-five percent (65%) of the aggregate value of the
Borrowers’ Eligible Inventory, valued at the lower of cost or market on a first in, first
out basis during each period of time from December 1 through July 31, or (y) (if the Agent
has an appraisal of the Borrowers’ Inventory conducted by an appraiser selected by the
Agent) ninety percent (90%) of the Net Orderly Liquidation Value of the Borrowers’ Inventory
during each period of time from August 1 through November 30 and eighty-five percent (85%)
of the Net Orderly Liquidation Value of the Borrowers’ Inventory during each period of time
from December 1 through July 31, or (z) $100,000,000; less

(b) the aggregate amount of the Availability Reserve in effect at such time.

Business Day shall mean any day on which the Agent and JPMorgan Chase Bank are open
for business.

Capital Expenditures shall mean, for any period, the aggregate expenditures of the
Borrowers during such period on account of property, plant, equipment or similar fixed assets that,
in conformity with GAAP, are required to be reflected on a Consolidated Balance Sheet.

Capital Lease shall mean any lease of property (whether real, personal or mixed)
which, in conformity with GAAP, is accounted for as a capital lease or a Capital Expenditure on a
Consolidated Balance Sheet.

Cash Equivalents shall mean (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the
full faith and credit of the United States, (b) marketable direct obligations issued by any state
of the United States or any political subdivision of any such state or any public instrumentality
thereof and, at the time of acquisition, having one of the two highest ratings obtainable from
either Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc.
(“Moody’s”), (c) commercial paper, at the time of acquisition, having a rating of at least
A-1 from S&P or at least P-1 from Moody’s, (d) certificates of deposit or bankers’ acceptances
issued by any bank organized under the laws of the United States or any state thereof having at the
date of acquisition thereof combined capital and surplus of not less than $250,000,000, (e) deposit
accounts maintained with (i) any bank that satisfies the criteria described in clause (d)
above, or (ii) any other bank organized under the laws of the United States or any state thereof so
long as the amount maintained with any such other bank is less than or equal to $100,000 and is
insured by the Federal Deposit Insurance Corporation, and (f) investments in money market funds
substantially all of whose assets are invested in the types of assets described in clauses (a)
through (e) above.

Casualty Proceeds shall mean (a) payments or other proceeds from an insurance carrier
with respect to any loss, casualty or damage to Collateral, and (b) payments received on account of
any condemnation or other governmental taking of any of the Collateral.

Change of Control shall mean Robert Y. Greenberg and M. Susan Greenberg together cease
to beneficially own and control, directly or indirectly, at least 25% of the aggregate voting power
of all issued and outstanding shares of the capital stock of Skechers entitled (without regard to
the occurrence of any contingency) to vote for the election of a majority of the members of the
board of directors of Skechers.

Chase Bank Rate shall mean the rate of interest per annum announced by JPMorgan Chase
Bank (or its successor) from time to time as its “prime rate” in effect at its principal office in
New York City. (The prime rate is not intended to be the lowest rate of interest charged by
JPMorgan Chase Bank to its borrowers).

Chase Bank Rate Loans shall mean any loans or advances made pursuant to this Agreement
that bear interest based upon the Chase Bank Rate.

CIT Lockbox means a lockbox in CIT’s name and all Collateral and proceeds of
Collateral contained therein as set forth in the CIT Lockbox Agreement.

CIT Lockbox Agreement means the Amended and Restated Lockbox Agreement of even date
herewith between the Borrowers and the Agent.

CIT’s System shall mean the Agent’s ACAR or other internet-based loan accounting and
reporting system.

Collateral shall mean, collectively, all present and future Accounts, Inventory,
Documents of Title, General Intangibles and Other Collateral.

Commitment shall mean, as to each Lender, the amount of the commitment for such Lender
set forth on the signature page to this Agreement or in the Assignment and Transfer Agreement to
which such Lender is a party, as such amount may be reduced or increased in accordance with the
provisions of Section 13.4(b) or any other applicable provision of this Agreement.

Confidential Information shall have the meaning provided for in Section 13.7
of this Agreement.

Consolidated Balance Sheet shall mean a consolidated balance sheet for Skechers,
eliminating all intercompany transactions and prepared in accordance with GAAP.

Copyrights shall mean all of Borrowers’ present and hereafter acquired copyrights,
copyright registrations, recordings, applications, designs, styles, licenses, marks, prints and
labels bearing any of the foregoing, all reissues and renewals thereof, all licenses thereof, all
other general intangible, intellectual property and other rights pertaining to any of the
foregoing, together with the goodwill associated therewith, and all income, royalties and other
Proceeds of any of the foregoing.

Default shall mean any event specified in Section 10.1 hereof, regardless of
whether any requirement for the giving of notice, the lapse of time, or both, or any other
condition, event or act, has occurred or been satisfied.

Default Rate of Interest shall mean a rate of interest equal to two percent (2%)
per annum greater than the interest rate accruing on the Obligations pursuant to
Section 8.1 hereof, which the Agent and the Lenders shall be entitled to charge the
Borrowers in the manner set forth in Section 8.2 of this Agreement.

Depository Account shall mean each bank account or securities account (and the related
lockbox, if any) subject to the Agent’s control that is established by the Agent or the Borrowers
pursuant to Section 2.1(i) or Section 3.2(c) of this Agreement.

Depository Account Control Agreement shall mean (a) a three-party agreement in form
and substance satisfactory to the Agent among the Agent, a Borrower and the bank or securities firm
which maintains any Depository Account with respect to the collection of Accounts and deposits of
cash proceeds of the Collateral, (i) which provides the Agent with control of such Depository
Account and provides for the transfer of funds in a manner consistent with the provisions of
Section 3.2(b) of this Agreement, and (ii) pursuant to which such bank or securities firm
agrees that (A) all cash, checks, wires and other items received or deposited into the Depository
Account are the property of the Agent, for the benefit of the Lenders, and (B) except as otherwise
provided in the Depository Account Control Agreement, such bank or securities firm has no lien
upon, or right of set off against, the Depository Account and any cash, checks, wires and other
items from time to time on deposit therein, and (b) a three party agreement in form and substance
satisfactory to the Agent among the Agent, a Borrower and the bank or securities firm which
maintains any Depository Account used to hold Qualified Cash which provides Agent control of such
account and pursuant to which such bank or securities firm agrees that it will recognize the
instructions of the Agent upon the occurrence and during the continuance of an Event of Default
and, except as otherwise provided in the Depository Account Control Agreement, such bank or
securities firm has no lien upon or right of setoff against such Depository Account and any cash,
checks, wires, and other items from time to time on deposit therein. The CIT Lockbox Agreement
shall be considered a Depository Account Control Agreement.

Dilution Percentage shall mean, with respect to the Borrowers in the aggregate during
any period of measurement, the quotient (expressed as a percentage) obtained by dividing (a) the
aggregate amount of the Borrowers’ non-cash reductions against Trade Accounts Receivable, during
such period, by (b) the aggregate amount of Borrowers’ gross sales during such period, as
determined by the Agent in the exercise of its reasonable business judgment. The Dilution
Percentage shall be determined by the Agent based on its reviews of the periodic financial and
collateral reports submitted by the Borrowers to the Agent as well as the results of the periodic
field examinations conducted by the Agent from time to time. The period of measurement for
calculating the Dilution Percentage shall be determined by the Agent from time to time in the
exercise of its reasonable business judgment.

Documentation Fees shall mean the Agent’s standard fees for the use of the Agent’s
in-house legal department relating to any and all modifications, waivers, releases, legal file
reviews or additional collateral with respect to this Agreement, the Collateral and/or the
Obligations.

Documents of Title shall mean all present and future documents (as defined in the
UCC), and any and all warehouse receipts, bills of lading, shipping documents, chattel paper,
instruments and similar documents, all whether negotiable or non-negotiable, together with all
Inventory relating thereto, and all Proceeds of any of the foregoing.

EBITDA shall mean, for any period, the net income of Skechers on a consolidated basis
for such period plus all interest, tax obligations, depreciation and amortization expense, asset
impairment writedowns and non-cash expense items of Skechers on a consolidated basis for such
period, all determined in conformity with GAAP on a basis consistent with the latest audited
financial statements of Skechers, but excluding the effect of extraordinary and/or nonrecurring
gains or losses for such period.

Electronic Transmission shall have the meaning given to such term in
Section 7.2(g) of this Agreement.

Eligible Accounts Receivable shall mean the gross amount of the Borrowers’ Trade
Accounts Receivable that are subject to a valid, exclusive, first priority and fully perfected
security interest in favor of the Agent, for the benefit of the Lenders, which conform to the
warranties contained herein and which, at all times, continue to be acceptable to the Agent in the
exercise of its reasonable business judgment, less, without duplication, the sum of:

(a) actual returns, discounts, claims, credits and allowances of any nature (whether issued,
owing, granted, claimed or outstanding), plus

(b) Trade Accounts Receivable that arise from, or are subject to or include: (i) sales to
the United States of America, any state or other governmental entity or to any agency,
department or division thereof, except for any such sales as to which the Borrowers have
complied with the Assignment of Claims Act of 1940 or any other applicable statute, rules or
regulation to the Agent’s satisfaction in the exercise of its reasonable business judgment;
(ii) foreign sales, other than sales which otherwise comply with all of the other criteria
for eligibility hereunder and are supported either by credit insurance issued by an insurer
acceptable to the Agent or letters of credit (in form and substance satisfactory to the
Agent) issued or confirmed by, and payable at, banks acceptable to the Agent having a place
of business in the United States; provided that such Accounts are payable in United
States Dollars or Canadian Dollars; (iii) Accounts that, at the date of issuance of the
respective invoice therefor, were payable more than sixty (60) days after the date of
issuance of such invoice, provided that up to thirty-five percent (35%) of the
aggregate amount of all Accounts outstanding at any one time that contain dating terms of
more than sixty (60) but less than or equal to one hundred twenty (120) days after the
issuance of any such invoice are eligible; provided that with respect to any one
customer, Accounts that contain such dating terms that exceed ten percent (10%) of the
aggregate amount of Accounts outstanding at any one time from such customer are not eligible
to the extent of such excess; (iv) Accounts that remain unpaid more than the earlier of one
hundred twenty (120) days from invoice date or sixty (60) days from due date; (v) contra
accounts; (vi) sales to any Subsidiary (direct or indirect) or parent (direct or indirect)
of the Borrowers, or to any other Person otherwise affiliated with the Borrowers or with any
shareholder, Subsidiary (direct or indirect) or parent (direct or indirect) of the Borrowers
in any way; (vii) bill and hold (deferred shipment) or consignment sales; (viii) sales to
any customer which is either (w) insolvent, (x) the debtor in any bankruptcy, insolvency,
arrangement, reorganization, receivership or similar proceedings under any federal or state
law, (y) negotiating, or has called a meeting of its creditors for purposes of negotiating,
a compromise of its debts, or (z) financially unacceptable to the Agent or has a credit
rating unacceptable to the Agent in either case as determined by the Agent in the exercise
of its reasonable business judgment; (ix) all sales to any customer if twenty-five percent
(25%) or more of the aggregate dollar amount of all outstanding invoices to such customer
are unpaid more than the earlier of one hundred twenty (120) days from invoice date or sixty
(60) days from due date; (x) sales to any customer and/or its affiliates to the extent the
aggregate outstanding amount of such sales at any time exceed thirty percent (30%) or more
of all Eligible Accounts Receivable at such time; (xi) pre-billed receivables and
receivables arising from progress billings; and (xii) sales not payable in United States
currency or Canadian currency; plus

(c) reserves established by the Agent to account for increases in the Borrowers’ Dilution
Percentage above the Borrowers’ historical Dilution Percentage, and such other reserves
against Trade Accounts Receivable as the Agent deems necessary in the exercise of its
reasonable business judgment and which are customary either in the commercial finance
industry or in the lending practices of the Agent or the Lenders.

Eligible Assignee shall mean (a) a commercial bank organized under the
laws of the United States, or any state thereof, and having total assets in excess of
$1,000,000,000, (b) a commercial bank organized under the laws of any other country which is a
member of the Organization for Economic Cooperation and Development or a political subdivision of
any such country and which has total assets in excess of $1,000,000,000, provided that such bank is
acting through a branch or agency located in the United States, (c) a finance company, insurance
company, or other financial institution or fund that is engaged in making, purchasing, or otherwise
investing in commercial loans having (together with its affiliates and Related Funds) total assets
(including assets under management) in excess of $1,000,000,000, and (d) any Lender or any
affiliate (other than individuals) of any Lender or any Related Fund.

Eligible Inventory shall mean the gross amount of the Borrowers’ Inventory (both
wholesale and retail) that is subject to a valid, exclusive, first priority and fully perfected
security interest in favor of the Agent, for the benefit of the Lenders, and which conforms to the
warranties contained herein and which, at all times continues to be acceptable to the Agent in the
exercise of its reasonable business judgment, including Inventory consisting of goods being
imported to the United States that are supported by a documentary Letter of Credit issued by the
Issuing Bank pursuant to this Agreement and that are being shipped pursuant to a bill of lading in
which the Agent or the Issuing Bank is named as consignee, less, without duplication,
(a) all work-in-process, (b) all supplies (other than raw materials), (c) all Inventory not present
in the United States of America, (d) all Inventory returned or rejected by the Borrowers’ customers
(other than goods that are undamaged and resalable in the normal course of business) and goods to
be returned to the Borrowers’ suppliers, (e) all Inventory in transit or in the possession of a
warehouseman, bailee, third party processor, or other third party, unless such warehouseman, bailee
or third party has executed a notice of security interest agreement (in form and substance
satisfactory to the Agent), and (f) the amount of such other reserves against Inventory as the
Agent deems necessary in the exercise of its reasonable business judgment, including, without
limitation, reserves for special order, licensed goods (unless the Agent has received a
satisfactory Trademark Licensor Agreement from the licensor), private label goods, discontinued,
slow-moving and obsolete Inventory, market value declines, bill and hold (deferred shipment),
consignment sales, shrinkage and any applicable customs, freight, duties and Taxes.

Equipment shall mean all of the Borrowers’ present and hereafter acquired equipment
(as defined in the UCC) including, without limitation, all machinery, equipment, rolling stock,
furnishings and fixtures, and all additions, substitutions and replacements thereof, wherever
located, together with all attachments, components, parts, equipment and accessories installed
thereon or affixed thereto and all Proceeds of any of the foregoing.

ERISA shall mean the Employee Retirement Income Security Act or 1974, as amended from
time to time, and the rules and regulations promulgated thereunder from time to time.

Eurocurrency Reserve Requirements shall mean for any day, as applied to a LIBOR Loan,
the aggregate (without duplication) of the maximum rates of reserve requirement (expressed as a
decimal fraction) in effect with respect to the Agent or any Lender on such day (including, without
limitation, basic, supplemental, marginal and emergency reserves under Regulation D or any other
applicable regulations of the Board of Governors of the Federal Reserve System or other
governmental authority having jurisdiction with respect thereto, as now and from time to time in
effect, dealing with reserve requirements prescribed for Eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of such Board) maintained by the Agent or any
Lender (such rates to be adjusted to the nearest one-sixteenth of one percent (1/16 of 1%) or, if
there is not a nearest one-sixteenth of one percent (1/16 of 1%), to the next higher one sixteenth
of one percent (1/16 of 1%).

Event(s) of Default shall have the meaning given to such term in Section 10.1
of this Agreement.

Excess Availability shall mean, as of any date of determination, the amount equal to
(a) Net Availability plus (b) Qualified Cash.

Fee Letter means that certain fee letter between the Borrowers and the Agent, dated as
of the date hereof and delivered in connection herewith, in form and substance reasonably
satisfactory to the Agent.

Fixed Charge Coverage Ratio shall mean, for any trailing twelve month period, the
quotient (expressed as a ratio) obtained by dividing (a) EBITDA of Skechers for such period by
(b) Fixed Charges of Skechers for such period.

Fixed Charges shall mean, for any period, the sum of (a) all interest obligations
(including the interest component of Capital Leases) of Skechers on a consolidated basis paid or
due during such period, (b) the amount of all scheduled fees paid to the Agent and the Lenders
during such period, (c) the amount of principal repaid or scheduled to be repaid on Indebtedness of
Skechers on a consolidated basis (other than the Revolving Loans and other than Indebtedness that
is refinanced simultaneously with the repayment thereof) during such period, (d) unfinanced Capital
Expenditures, as incurred by Skechers on a consolidated basis during such period, and (e) all
federal, state and local income tax expenses due and payable by Skechers on a consolidated basis
during such period.

Funds Administrator shall mean Skechers in its capacity as the borrowing agent and
loan funds administrator on behalf of itself and the other Borrowers.

GAAP shall mean generally accepted accounting principles in the United States of
America as in effect from time to time and for the period as to which such accounting principles
are to apply.

General Intangibles shall mean all of the Borrowers’ present and hereafter acquired
general intangibles (as defined in the UCC), and shall include, without limitation, all present and
future right, title and interest in and to: (a) all Trademarks, (b) Patents, utility models,
industrial models, and designs, (c) Copyrights, (d) trade secrets, (e) licenses, permits and
franchises, (f) any other forms of intellectual property, (g) all customer lists, distribution
agreements, supply agreements, blueprints, indemnification rights and tax refunds, (h) all monies
and claims for monies now or hereafter due and payable in connection with the foregoing, including,
without limitation, payments for infringement and royalties arising from any licensing agreement
between a Borrower and any licensee of any of the Borrowers’ General Intangibles and (i) all
Proceeds of any of the foregoing.

Guaranties shall mean the amended and restated guaranties executed and delivered to
the Agent by the Guarantors.

Guarantors shall mean Skechers Sport, LLC, a California limited liability company,
Skechers Collection, LLC, a California limited liability company, and any other future guarantor of
all or any part of the Obligations.

Guarantor Security Agreements shall mean the amended and restated guarantor security
agreements executed and delivered to the Agent by the Guarantors.

Hedge Agreement shall mean any and all agreements or documents now existing or
hereafter entered into by a Borrower that provide for an interest rate, credit, commodity or equity
swap, cap, floor, collar, forward foreign exchange transaction, currency swap, cross currency rate
swap, currency option, or any combination of, or option with respect to, these or similar
transactions, for the purpose of hedging such Borrower’s exposure to fluctuations in interest or
exchange rates, loan, credit exchange, security, or currency valuations or commodity prices.

Hedge Agreement Obligations means all obligations, liabilities, contingent
reimbursement obligations, fees, and expenses owing by a Borrower to any Lender or affiliate of a
Lender pursuant to or evidenced by a Hedge Agreement and irrespective of whether for the payment of
money, whether direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising.

Indebtedness shall mean, without duplication, all liabilities, contingent or
otherwise, which are (a) obligations in respect of borrowed money or for the deferred purchase
price of property, services or assets, other than Inventory, (b) obligations with respect to
Capital Leases or (c) obligations owing under Hedge Agreements.

Indemnified Party shall have the meaning given to such term in Section 10.5 of
this Agreement.

Intellectual Property Security Agreements shall mean (a) the Assignment for Security
of Patents, Trademarks and Copyrights dated June 15, 1999, between Skechers II and Heller, (b) the
Assignment for Security of Patents, Trademarks and Copyrights of even date herewith, between
Skechers II and the Agent and (c) the Assignment for Security of Patents, Trademarks and Copyrights
of even date herewith, between 310 and the Agent.

Inventory shall mean all of the Borrowers’ present and hereafter acquired inventory
(as defined in the UCC) including, without limitation, all merchandise and inventory in all stages
of production (from raw materials through work-in-process to finished goods), and all additions,
substitutions and replacements thereof, wherever located, together with all goods and materials
used or usable in manufacturing, processing, packaging or shipping of the foregoing, and all
Proceeds of any of the foregoing.

Issuing Bank shall mean any bank issuing a Letter of Credit for the Borrowers.

Ledger Debt means indebtedness owing to CIT for goods and services purchased by the
Borrowers or any of their Subsidiaries from any party whose accounts are factored or financed by
CIT.

Letters of Credit shall mean all letters of credit issued for or on behalf of the
Borrowers with the assistance of the Lenders (acting through the Agent) by an Issuing Bank in
accordance with Section 5 hereof.

Letter of Credit Guaranty shall mean any guaranty or similar agreement delivered by
the Agent, on behalf of the Lenders, to an Issuing Bank of the Borrowers’ reimbursement obligation
under such Issuing Bank’s reimbursement agreement, application for letter of credit or other like
document.

Letter of Credit Sub-Line shall mean the aggregate commitment of the Lenders to assist
the Borrowers in obtaining Letters of Credit in an aggregate amount of up to $30,000,000,
$18,000,000 of which may be used for bank acceptances.

LIBOR shall mean, subject to availability, a rate of interest equal to the quotient
obtained by dividing: (a) at the Agent’s election, (i) LIBOR as quoted to the Agent by JPMorgan
Chase Bank (or any successor thereof) two (2) Business Days prior to the first day of any month, or
(ii) the rate of interest determined by the Agent at which deposits in U.S. Dollars are offered for
any month as presented on Telerate Systems at page 3750 as of 11:00 a.m. (London time) two (2)
Business Days prior to the first day of such month (provided that if two or more offered
rates are presented on Telerate Systems at page 3750 for such month, the arithmetic mean of all
such rates, as determined by the Agent, will be the rate elected); by (b) a number equal to
1.00 minus the Eurocurrency Reserve Requirements, if any, in effect on the day which is two (2)
Business Days prior to the beginning of such month.

LIBOR Loan shall mean any loans made pursuant to this Agreement that bear interest
based upon LIBOR.

Line of Credit shall mean the aggregate commitment of the Lenders in an amount equal
to $150,000,000 (subject to increase in accordance with Section 4 of this Agreement) to
(a) make Revolving Loans pursuant to Section 3 of this Agreement, and (b) assist the
Borrowers in opening Letters of Credit pursuant to Section 5 of this Agreement.

Line of Credit Fee shall mean, for any month, the product obtained by multiplying
(a) (i) the amount of the Line of Credit minus (ii) the average daily principal balance of
Revolving Loans and the average daily undrawn amount of Letters of Credit outstanding during such
month, times (b) one quarter of one percent (0.25%) per annum for the number of days in
said month.

Loan Documents shall mean this Agreement, the Promissory Notes, the Fee Letter, the
Guaranties, the Guarantor Security Agreements, the Intellectual Property Security Agreements, the
Depository Account Control Agreements, the Surviving Loan Documents, the other closing documents
executed by the Borrowers or the Guarantors, and any other ancillary loan and security agreements
executed by the Borrowers or the Guarantors from time to time in connection with this Agreement,
all as may be renewed, amended, restated or supplemented from time to time.

Loan Facility Fee shall mean the fee payable to the Agent, for the benefit of the
Lenders, in accordance with, and pursuant to, the provisions of Section 8.6 of this
Agreement.

Material Adverse Effect shall mean a material adverse effect on either (a) the
business, condition (financial or otherwise), operations, performance or properties of the
Borrowers, (b) the ability of the Borrowers to perform their obligations under this Agreement or
any other Loan Document, or to enforce their rights against account debtors of the Borrowers,
(c) the value of the Collateral or (d) the ability of the Agent or the Lenders to enforce the
Obligations or their rights and remedies under this Agreement or any of the other Loan Documents.

Net Availability shall mean, at any time, the amount by which (a) the Borrowing Base
of the Borrowers at such time exceeds (b) the sum at such time of (i) the principal amount of all
outstanding Revolving Loans, plus (ii) 100% of the undrawn amount of all outstanding
standby Letters of Credit, documentary Letters of Credit and bank acceptances.

Net Orderly Liquidation Value shall mean, at any time, the aggregate value of the
Borrowers’ Inventory at such time in an orderly liquidation, taking into account all costs, fees
and expenses estimated to be incurred by the Agent and the Lenders in connection with such
liquidation, based upon the most recent appraisal of the Borrowers’ Inventory conducted by an
appraiser selected by the Agent.

Obligations shall mean: (a) all loans, advances and other extensions of credit made by
the Agent for the account of the Lenders to the Borrowers, or to others for the Borrowers’ account
(including, without limitation, all Revolving Loans and all obligations of the Agent under Letter
of Credit Guaranties); (b) any and all other indebtedness, obligations and liabilities which may be
owed by the Borrowers to the Agent or any Lender and arising out of, or incurred in connection
with, this Agreement or any of the other Loan Documents (including all Out-of-Pocket Expenses and
any applicable Documentation Fees), whether (i) now in existence or incurred by the Borrowers from
time to time hereafter, (ii) secured by pledge, lien upon or security interest in the Borrowers’
assets or property or the assets or property of any other Person, (iii) such indebtedness is
absolute or contingent, joint or several, matured or unmatured, direct or indirect, or (iv) the
Borrowers are liable to the Agent or any Lender for such indebtedness as principals, sureties,
endorsers, guarantors or otherwise; (c) without duplication, the Borrowers’ liabilities to the
Agent under any instrument of guaranty or indemnity, or arising under any guaranty, endorsement or
undertaking which the Agent, on behalf of the Lenders, may make or issue to others for the account
of the Borrowers, including any accommodations extended by the Agent with respect to applications
for Letters of Credit, the Agent’s acceptance of drafts or the Agent’s endorsement of notes or
other instruments for the Borrowers’ account and benefit; (d) any and all indebtedness, obligations
and liabilities incurred by, or imposed on, the Agent or any Lender as a result of environmental
claims relating to the Borrowers’ operations, premises or waste disposal practices or disposal
sites; (e) without duplication, the Ledger Debt; and (f) without duplication, Hedge Agreement
Obligations.

Operating Leases shall mean all leases of property (whether real, personal or mixed)
other than Capital Leases.

Other Collateral shall mean: (a) the Depository Account which is maintained with
Wachovia Securities, LLC at 10700 Wheat First Drive, Glen Allen, Virginia 23060, account number
5889-0707; (b) the CIT Lockbox; (c) all of the Borrowers’ cash and other monies and property in the
possession or control of the Agent or any Lender (including negative balances in the Revolving Loan
Account and cash collateral held by the Agent pursuant to this Agreement); (d) all of the
Borrowers’ books, records, ledger cards, disks and related data processing software at any time
evidencing or containing information relating to any of the Collateral described herein or
otherwise necessary or helpful in the collection thereof or realization thereon; and (e) all
Proceeds of any of the foregoing.

Out-of-Pocket Expenses shall mean all of the Agent’s and the Lenders’ present and
future costs, fees and expenses incurred in connection with this Agreement and the other Loan
Documents, including, without limitation, (a) the cost of lien searches (including tax lien and
judgment lien searches), pending litigation searches and similar items, (b) fees and taxes imposed
in connection with the filing of any financing statements or other personal property security
documents; (c) all costs and expenses incurred by the Agent in opening and maintaining the
Depository Accounts and any related lockboxes (including the CIT Lockbox), depositing checks, and
receiving and transferring funds (including charges imposed on the Agent for “insufficient funds”
and the return of deposited checks); (d) any amounts paid by, incurred by or charged to the Agent
by an Issuing Bank under any Letter of Credit or the reimbursement agreement relating thereto, any
application for Letter of Credit, Letter of Credit Guaranty or other like document which pertains
either directly or indirectly to Letters of Credit, and the Agent’s standard fees relating to the
Letters of Credit and any drafts thereunder; (e)  all reasonable and documented appraisal fees and
expenses payable by the Borrowers hereunder, and all costs, fees and expenses incurred by the Agent
and the Lenders in connection with any action taken under Section 7.2(a) hereof, including
reasonable and documented travel, meal and lodging expenses of the Agent’s personnel; (f) all costs
that the Agent may incur to maintain the Required Insurance and all reasonable and documented
costs, fees and expenses incurred by the Agent in connection with the collection of Casualty
Proceeds; (g) all reasonable and documented costs, fees, expenses and disbursements of outside
counsel hired by the Agent to consummate the transactions contemplated by this Agreement (including
the documentation and negotiation of this Agreement, the other Loan Documents and all amendments,
supplements and restatements thereto or thereof), and to advise the Agent and/or the Lenders as to
matters relating to the transactions contemplated hereby; (h) all costs, fees and expenses incurred
by the Agent and the Lenders in connection with any action taken under Section 10.3 hereof;
and (i) without duplication, all costs, fees and expenses incurred by the Agent and the Lenders in
connection with the collection, liquidation, enforcement, protection and defense of the
Obligations, the Collateral and the rights of the Agent and the Lenders under this Agreement,
including, without limitation, all reasonable and documented fees and disbursements of in-house and
outside counsel to the Agent and the Lenders incurred as a result of a workout, restructuring,
reorganization, liquidation, insolvency proceeding and in any appeals arising therefrom, whether
incurred before, during or after the termination of this Agreement or the commencement of any case
with respect to any Borrower, any Guarantor or any Subsidiary of a Borrower (as the case may be)
under the United States Bankruptcy Code or any similar statute.

Overadvances shall mean, at any time, the amount by which (a) the sum at such time of
the principal amount of all outstanding Revolving Loans plus the undrawn amount of all
outstanding Letters of Credit exceeds (b) the Borrowing Base at such time.

Patents shall mean all of the Borrowers’ present and hereafter acquired patents,
patent applications, registrations, all reissues and renewals thereof, all licenses thereof, all
inventions and improvements claimed thereunder, all general intangible, intellectual property and
other rights of the Borrowers with respect thereto, and all income, royalties and other Proceeds of
the foregoing.

Permitted Distributions shall mean:

(a) dividends from a Subsidiary of a Borrower to such Borrower and dividends from a
Subsidiary of a Borrower to another Subsidiary of a Borrower;

(b) dividends payable solely in stock or other equity interests of a Borrower; and

(c) cash dividends to Skechers’ shareholders or repurchases of Skechers’ capital stock in
the ordinary course of Skechers’ business so long as Excess Availability is at least
$50,000,000 for a period of 90 consecutive days prior to the date such dividend is paid or
such stock is repurchased and immediately after giving effect to the payment of such
dividend or the repurchase of such stock.

Permitted Encumbrances shall mean: (a) all liens existing on the Restatement Effective
Date on specific items of Equipment; (b) Purchase Money Liens; (c) statutory liens of landlords and
liens of carriers, warehousemen, bailees, mechanics, materialmen and other like liens imposed by
law, created in the ordinary course of business and securing amounts not yet due (or which are
being contested in good faith, by appropriate proceedings or other appropriate actions which are
sufficient to prevent imminent foreclosure of such liens), and with respect to which adequate
reserves or other appropriate provisions are being maintained by the Borrowers in accordance with
GAAP; (d) deposits made (and the liens thereon) in the ordinary course of business of the Borrowers
(including, without limitation, security deposits for leases, indemnity bonds, surety bonds and
appeal bonds) in connection with workers’ compensation, unemployment insurance and other types of
social security benefits or to secure the performance of tenders, bids, contracts (other than for
the repayment or guarantee of borrowed money or purchase money obligations), statutory obligations
and other similar obligations arising as a result of progress payments under government contracts;
(e) liens granted to the Agent, for the benefit of the Lenders, by the Borrowers; (f) liens of
judgment creditors, provided that such liens do not exceed $2,500,000 in the aggregate at
any time (other than liens bonded or insured to the reasonable satisfaction of the Agent);
(g) Permitted Tax Liens; (h) easements (including, without limitation, reciprocal easement
agreements and utility agreements), encroachments, minor defects or irregularities in title,
variation and other restrictions, charges or encumbrances (whether or not recorded) affecting the
Real Estate, if applicable, and which in the aggregate (i) do not materially interfere with the
occupation, use or enjoyment by the Borrowers of their business or property so encumbered and
(ii) in the reasonable business judgment of the Agent, do not materially and adversely affect the
value of such Real Estate; (i) liens securing Hedge Agreements; (j) liens on the Borrowers’ and
their Subsidiaries’ fee interests in Real Estate; and (k) liens securing Permitted Indebtedness
under clause (j) of the definition of Permitted Indebtedness so long as such liens attach solely to
the assets securing the Indebtedness being refinanced.

Permitted Indebtedness shall mean: (a) current Indebtedness maturing in less than one
year and incurred in the ordinary course of business for raw materials, supplies, equipment,
services, Taxes or labor; (b) Indebtedness secured by Purchase Money Liens; (c) Indebtedness
arising under the Letters of Credit and this Agreement; (d) deferred Taxes and other expenses
incurred in the ordinary course of business; (e) Subordinated Debt, (f) Permitted Intercompany
Loans; (g) Indebtedness existing on the Restatement Effective Date and listed on
Schedule 1.1(a) attached hereto; (h) Indebtedness arising under Hedge Agreements;
(i) Indebtedness secured by liens on the Borrowers’ and their Subsidiaries’ fee interests in Real
Estate in an aggregate amount not to exceed $100,000,000; (j) any refinancing of any of the
foregoing so long as (i) the amount refinanced does not exceed the amount repaid, including without
limitation any prepayment premium and (ii) the weighted average life to maturity of the new
Indebtedness is not less than the weighted average life to maturity of the Indebtedness being
refinanced; and (k)  other unsecured Indebtedness in an aggregate amount not to exceed $60,000,000
at any one time.

Permitted Intercompany Capital Contribution shall mean a contribution of equity
capital by a Borrower to a Subsidiary of such Borrower, but only so long as after giving effect to
such contribution, Excess Availability is at least $35,000,000.

Permitted Intercompany Loan shall mean a loan made by a Borrower to a Subsidiary of
such Borrower or by a Subsidiary of a Borrower to another Subsidiary of a Borrower, but only so
long as after giving effect to such loan, Excess Availability is at least $35,000,000.

Permitted Tax Liens shall mean liens for Taxes not due and payable and liens for Taxes
that a Borrower is contesting in good faith, by appropriate proceedings which are sufficient to
prevent imminent foreclosure of such liens, and with respect to which adequate reserves are being
maintained by such Borrower in accordance with GAAP; provided that in either case, such
liens (a) are not filed of record in any public office, (b) are not senior in priority to the liens
granted by the Borrowers to the Agent, for the benefit of the Lenders, or (c) do not secure taxes
owed to the United States of America (or any department or agency thereof) or any State or State
authority, if applicable State law provides for the priority of tax liens in a manner similar to
the laws of the United States of America.

Person means natural persons, corporations, limited liability companies, limited
partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land
trusts, business trusts, or other organizations, irrespective of whether they are legal entities,
and governments and agencies and political subdivisions thereof.

Pro Rata Percentage shall mean, as to each Lender at any time, a fraction (expressed
as a percentage), the numerator of which is the amount of such Lender’s Commitment at such time and
the denominator of which is the aggregate amount of all Commitments at such time (or in the event
that the Commitments of the Lenders hereunder have terminated, the numerator of which is the
principal amount of loans then owed to such Lender hereunder and the denominator of which is the
principal amount of loans then owed to all Lenders hereunder, as reflected by CIT’s System).

Proceeds shall have the meaning given to such term in the UCC, including, without
limitation, all Casualty Proceeds.

Promissory Notes shall mean, collectively, the notes in the form of Exhibit B
attached hereto, delivered by the Borrowers to a Lender to evidence the loans made by such Lender
to the Borrowers pursuant to this Agreement.

Purchase Money Liens shall mean liens on any item of Equipment acquired by the
Borrowers after the date of this Agreement, provided that (a) each such lien shall attach
only to the Equipment acquired, (b) a description of the Equipment so acquired is furnished by the
Borrowers to the Agent, and (c) the indebtedness incurred by the Borrowers in connection with such
acquisitions shall not exceed $20,000,000 in the aggregate at any one time outstanding.

Qualified Cash shall mean, as of any date of determination, the amount of unrestricted
cash of the Borrowers that is in the Depository Account referenced in clause (a) of the definition
of Other Collateral and any other Depository Account that is the subject of a Depository Account
Control Agreement in favor of Agent, is maintained at a branch office of a bank or a securities
firm that is located within the United States, and is subject to a perfected security interest in
favor of the Agent on behalf of the Lenders.

Real Estate shall mean all of the Borrowers’ present and future fee interests in real
property.

Regulatory Change shall mean any change after the Restatement Effective Date in United
States federal, state or foreign law or regulation (including, without limitation, Regulation D of
the Board of Governors of the Federal Reserve System), or the adoption or making after the
Restatement Effective Date of any interpretation, directive or request applying to a class of
lenders including the Agent or any Lender of or under any United States federal, state or foreign
law or regulation, in each case whether or not having the force of law and whether or not failure
to comply therewith would be unlawful.

Related Fund shall mean a fund or account managed by any Lender or an affiliate of any
Lender or its investment manager.

Required Insurance shall have the meaning provided for in Section 7.2(c) of
this Agreement.

Required Lenders shall mean (a) at all times while there are (2) two or fewer Lenders
hereunder, all of the Lenders, and (b) at all times while there are three (3) or more Lenders
hereunder, those Lenders holding at least fifty-one percent (51%) of the total Commitments under
the Line of Credit (or fifty-one percent (51%) of the outstanding principal amount of all loans
outstanding hereunder, as reflected by CIT’s System, in the event that the Commitments of the
Lenders hereunder have terminated).

Restatement Effective Date shall mean the date on which this Agreement is executed by
the Borrowers, the Agent and the Lenders that initially are parties hereto, and delivered to the
Agent.

Revolving Loan Account shall mean the account on the Agent’s books, in the name of the
Funds Administrator on behalf of the Borrowers, in which the Borrowers will be charged with all
Obligations (other than Ledger Debt and Hedge Agreement Obligations) when due or incurred by the
Agent or any Lender.

Revolving Loans shall mean the loans and advances made from time to time to or for the
account of the Borrowers by the Agent, on behalf of the Lenders, pursuant to Section 3 of
this Agreement.

Settlement Date shall mean Friday of each week (or if any Friday is not a Business Day
on which all Lenders are open for business, the immediately preceding Business Day on which all
Lenders are open for business), provided that, after the occurrence of an Event of Default
or during a continuing decline or sudden increase in the principal amount of Revolving Loans, the
Agent, in its discretion, may require that the Settlement Date occur more frequently (even daily)
so long as any Settlement Date chosen by the Agent is a Business Day on which each Lender is open
for business.

Subordinated Debt shall mean all indebtedness of the Borrowers (and the note(s)
evidencing such indebtedness) that is subordinated to the prior payment and satisfaction of the
Obligations pursuant to a Subordination Agreement.

Subordination Agreement shall mean (a) an agreement (in form and substance
satisfactory to the Agent) among the Borrowers, a subordinating creditor and the Agent, on behalf
of the Lenders, pursuant to which Subordinated Debt is subordinated to the prior payment and
satisfaction of the Obligations, and (b) any note, indenture, note purchase agreement or similar
instrument or agreement, pursuant to which the indebtedness evidenced thereby or issued thereunder
is subordinated to the Obligations by the express terms of such note, indenture, note purchase
agreement or similar instrument or agreement.

Subsidiary of a Person means a corporation, partnership, limited liability company, or
other entity in which that Person directly or indirectly owns or controls the shares of Stock (or
other equity interest) having ordinary voting power to elect a majority of the board of directors
(or appoint other comparable managers) of such corporation, partnership, limited liability company,
or other entity.

Surviving Loan Documents means the agreements entered into in connection with the
Existing Loan Agreement that are described on Schedule 1.1(b) attached hereto.

Taxes shall mean all federal, state, municipal and other governmental taxes, levies,
charges, claims and assessments which are or may be owed or collected by the Borrowers with respect
to their business, operations, Collateral or otherwise.

Termination Date shall mean the date occurring five (5) years after the Restatement
Effective Date and the same date in every year thereafter.

Trade Accounts Receivable shall mean that portion of the Borrowers’ Accounts which
arises from the sale of Inventory or the rendition of services in the ordinary course of the
Borrowers’ business.

Trademarks shall mean all of the Borrowers’ present and hereafter acquired trademarks,
trademark registrations, recordings, applications, tradenames, trade styles, corporate names,
business names, service marks, logos and any other designs or sources of business identities,
prints and labels (on which any of the foregoing may appear), all reissues and renewals thereof,
all licenses thereof, all other general intangible, intellectual property and other rights
pertaining to any of the foregoing, together with the goodwill associated therewith, and all
income, royalties and other Proceeds of any of the foregoing.

Trademark Licensor Agreement shall mean an agreement between the Agent and the
licensor of a trademark to a Borrower relating to Inventory sold by such Borrower, providing, among
other things, that the Agent shall have a royalty-free, non-exclusive license to use the licensor’s
trademarks and other proprietary and intellectual property rights, in connection with the
(i) advertisement for sale, and the sale or other disposition of, any finished goods Inventory by
the Agent in accordance with the provisions of this Agreement, and (ii) the manufacture, assembly,
completion and preparation for sale of any unfinished Inventory by the Agent in accordance with the
provisions of this Agreement.

Triggering Event shall mean the occurrence of (a) an Event of Default or (b) Excess
Availability is less than $35,000,000.

UCC shall mean the Uniform Commercial Code as the same may be amended and in effect
from time to time in the State of California.

Working Day shall mean any Business Day on which dealings in foreign currencies and
exchanges between banks may be transacted.

SECTION 2. Conditions Precedent.

2.1 Conditions Precedent to Effectiveness. The effectiveness of this Agreement and the
obligation of the Agent and the Lenders to make the loans and to assist the Borrowers in obtaining
initial Letters of Credit hereunder is subject to the satisfaction or waiver in writing by the
Agent and the Lenders of the following conditions precedent:

(a) Lien Searches. The Agent shall have received tax lien, judgment lien and Uniform
Commercial Code searches from all jurisdictions reasonably required by the Agent, and such searches
shall verify that the Agent, for the benefit of the Lenders, has a first priority security interest
in the Collateral, subject to Permitted Encumbrances.

(b) Casualty Insurance. The Borrowers shall have delivered to the Agent evidence
satisfactory to the Agent that all Required Insurance is in full force and effect, and the Agent
shall have confirmed that the Agent, for the benefit of the Lenders, has been named as a loss payee
or additional insured with respect to the Required Insurance in a manner satisfactory to the Agent.

(c) UCC Filings. All UCC financing statements and similar documents required to be
filed in order to create in favor of the Agent, for the benefit of the Lenders, a first priority
perfected security interest in the Collateral (to the extent that such a security interest may be
perfected by a filing under the UCC or applicable law), shall have been properly filed in each
office in each jurisdiction required. The Agent shall have received (i) acknowledgement copies of
all such filings (or, in lieu thereof, the Agent shall have received other evidence satisfactory to
the Agent that all such filings have been made), and (ii) evidence that all necessary filing fees,
taxes and other expenses related to such filings have been paid in full.

(d) Resolutions. The Agent shall have received a copy of the resolutions of the Board
of Directors of each Borrower authorizing the execution, delivery and performance of the Loan
Documents to be executed by such Borrower, certified by the Secretary or Assistant Secretary of
such Borrower as of the date hereof, together with a certificate of such Secretary or Assistant
Secretary as to the incumbency and signature of the officer(s) executing the Loan Documents on
behalf of such Borrower.

(e) Organizational Documents. The Agent shall have received a copy of the Certificate
or Articles of Incorporation of each Borrower, certified by the applicable authority in such
Borrower’s State of incorporation, and copies of the by-laws (as amended through the date hereof)
of each Borrower, certified by the respective Secretary or an Assistant Secretary thereof.

(f) Officer’s Certificate. The Agent shall have received an executed Officer’s
Certificate of the Borrowers, satisfactory in form and substance to the Agent, certifying that as
of the Restatement Effective Date (i) the representations and warranties contained herein are true
and correct in all material respects, (ii) the Borrowers are in compliance with all of the terms
and provisions set forth herein and (iii) no Default or Event of Default has occurred.

(g) License Agreements. The Agent shall have received copies of all license
agreements pursuant to which any Borrower or any of their Subsidiaries is the licensee of
trademarks and related property rights.

(h) Fee Letter. The Borrowers shall have executed and delivered the Fee Letter to
Agent.

(i) Depository Accounts; CIT Lockbox. (i) The Borrowers or the Agent, on behalf of
the Lenders, shall have established the Depository Account referenced in clause (a) of the
definition of Other Collateral with respect to the maintenance of Qualified Cash, (ii) the Agent,
the applicable Borrower and the depository bank or securities firm shall have entered into a
Depository Account Control Agreement with respect to such Depository Account, and (iii) the
Borrowers shall have executed and delivered to the Agent the CIT Lockbox Agreement.

(j) Guaranty and Related Documents. The Guarantors shall have executed and delivered
to the Agent (i) the Guaranties, (ii)  the Guarantor Security Agreements, and (iii) the items
described in Sections 2.1(d), and 2.1(e) hereof with respect to the Guarantors.

(k) Opinions. Subject to the filing, priority and remedies provisions of the UCC, the
provisions of the Bankruptcy Code, insolvency statutes or other like laws, the equity powers of a
court of law and such other matters as may be agreed upon with the Agent, counsel for the Borrowers
and the Guarantors shall have delivered to the Agent, on behalf of the Lenders, opinion(s)
satisfactory to the Agent opining, inter alia, that each Loan Document to which any
Borrower or any Guarantor is a party is valid, binding and enforceable in accordance with its
terms, as applicable, and that the execution, delivery and performance by each Borrower and each
Guarantor of the Loan Documents to which such Person is a party are (i) duly authorized, (ii) do
not violate any terms, provisions, representations or covenants in the articles of incorporation,
by-laws or other organizational agreement of such Borrower or such Guarantor, as the case may be,
and (iii) to the best knowledge of such counsel, do not violate any terms, provisions,
representations or covenants in any loan agreement, mortgage, deed of trust, note, security
agreement, indenture or other material contract (material contracts to be designated by the
Borrowers’ counsel on a schedule to the opinion letter) to which any Borrower or any Guarantor is a
signatory, or by which any Borrower or any Guarantor (or any Borrower’s or any Guarantor’s assets)
are bound.

(l) Legal Restraints/Litigation. As of the Restatement Effective Date, there shall be
no (x) injunction, writ or restraining order restraining or prohibiting the consummation of the
financing arrangements contemplated under this Agreement, or (y) suit, action, investigation or
proceeding (judicial or administrative) pending against any Borrower, any Guarantor, any Subsidiary
of Skechers or any of their assets, which, in the opinion of the Agent, if adversely determined,
could reasonably be expected to have a Material Adverse Effect.

(m) Revolving Loan Promissory Notes. If the Required Lenders elect to evidence their
Commitments with respect to the Line of Credit with Promissory Notes, the Borrowers shall have
executed and delivered to each Lender a Promissory Note in the form attached hereto as
Exhibit A.

(n) Intellectual Property Security Agreements. Skechers II and 310 shall have
executed and delivered to the Agent those certain Assignments for Security of Patents, Trademarks
and Copyrights of even date herewith.

Upon the execution of this Agreement and the initial disbursement of the initial loans hereunder,
all of the above conditions precedent shall have been deemed satisfied, except as the Borrowers and
the Agent shall otherwise agree in a separate writing.

	 	 	 
	SECTION 3.

	 	Revolving Loans and Collections
	
 
	 	 
	3.1

	 	Funding Conditions and Procedures.
	
 
	 	 

(a) Amounts and Requests. Subject to the terms and conditions of this Agreement, the
Agent and the Lenders, pro rata in accordance with their respective Pro Rata
Percentages, severally (and not jointly) agree to make loans and advances to the Funds
Administrator on behalf of each Borrower on a revolving basis (i.e. subject to the limitations set
forth herein, each Borrower, through the Funds Administrator, may borrow, repay and re-borrow
Revolving Loans). In no event shall the Agent or any Lender have an obligation to make a Revolving
Loan to any Borrower, nor shall the Funds Administrator or any Borrower be entitled to request or
receive a Revolving Loan, if (i) a Default or Event of Default shall have occurred and remain
outstanding on the date of request for such Revolving Loan or the date of the funding thereof,
(ii) the amount of such Revolving Loan, when added to the principal amount of the Revolving Loans
outstanding plus the undrawn amount of all Letters of Credit on the date of the request
therefor or the funding thereof, would exceed the Line of Credit, or (iii) the amount of such
Revolving Loan would exceed the Net Availability of the Borrowers on the date of the request
therefor or the funding thereof. Any request for a Revolving Loan must be received from the Funds
Administrator by an officer of the Agent no later than 11:00 a.m., California time, on the Business
Day on which such Revolving Loan is required. The funding of any LIBOR Loan is also subject to the
satisfaction of the conditions set forth in Section 8.9 of this Agreement.

(b) Phone and Electronic Loan Requests. The Borrowers hereby authorize the Agent and
the Lenders to make Revolving Loans to the Funds Administrator based upon a telephonic or e-mail
request (or, if permitted by the Agent, based upon a request posted on CIT’s System) made by any
officer or other employee of the Funds Administrator that the Funds Administrator has authorized in
writing to request Revolving Loans hereunder, as reflected by the Agent’s records. Each
telephonic, e-mail or posted request by the Funds Administrator shall be irrevocable, and the Funds
Administrator agrees to confirm any such request for a Revolving Loan in a writing approved by the
Agent and signed by such authorized officer or employee, within one (1) Business Day of the Agent’s
request for such confirmation. The Agent shall have the right to rely on any telephonic, e-mail or
posted request for a Revolving Loan made by anyone purporting to be an officer or other employee of
the Funds Administrator that the Funds Administrator has authorized in writing to request Revolving
Loans hereunder, without further investigation.

(c) Advances by the Agent. The Agent, on behalf of the Lenders, shall disburse all
loans and advances to the Funds Administrator and shall handle all collections of Collateral and
repayment of all Obligations (other than the Ledger Debt and Hedge Agreement Obligations repaid in
the ordinary course of business). It is understood that for purposes of advances to the Funds
Administrator and for purposes of this Section 3.1, the Agent will be using the funds of
the Agent, and pending settlement, all interest accruing on such advances shall be payable to the
Agent.

(d) Settlement Among Lenders.

(i) Unless the Agent shall have been notified in writing by any Lender prior to any advance to
the Funds Administrator that such Lender will not make the amount which would constitute its Pro
Rata Percentage of the borrowing on such date available to the Agent, the Agent may assume that
such Lender shall make such amount available to the Agent on a Settlement Date, and in reliance
upon such assumption, the Agent may make available to the Funds Administrator a corresponding
amount. A certificate of the Agent submitted to any Lender with respect to any amount owing under
this subsection shall be conclusive, absent manifest error. If such Lender’s Pro Rata Percentage
of such borrowing is not in fact made available to the Agent by such Lender on the Settlement Date,
the Agent shall be entitled to recover from the Borrowers, on demand, such Lender’s Pro Rata
Percentage of such borrowing, together with interest thereon (for the account of the Agent) at the
rate per annum applicable to such borrowing, without prejudice to any rights which the Agent may
have against such Lender under Section 13.3 hereof. Nothing contained herein shall be
deemed to obligate the Agent to make available to the Borrowers the full amount of a requested
advance when the Agent has any notice (written or otherwise) that any of the Lenders will not
advance its Pro Rata Percentage thereof.

(ii) On each Settlement Date, the Agent and the Lenders shall each remit to the other, in
immediately available funds, all amounts necessary so as to ensure that, as of the Settlement Date,
the Lenders shall have advanced their respective Pro Rata Percentages of all outstanding Revolving
Loans. Each Lender’s obligation to make the Revolving Loans referred to in Section 3.1(a)
and to make the settlements pursuant to this Section 3.1(d) shall be absolute and
unconditional and shall not be affected by any circumstance, including without limitation (v) any
set-off, counterclaim, recoupment, defense or other right which any such Lender or any Borrower may
have against the Agent, any other Lender or any other Person, (w) the occurrence or continuance of
a Default or an Event of Default, (x) any adverse change in the condition (financial or otherwise)
of any Borrower, (y) any breach of this Agreement or any other Loan Document by any Borrower, or
any other Lender or (z) any other circumstance, happening or event whatsoever, whether or not
similar to any of the foregoing.

(e) Reaffirmation of Representations and Warranties. Except for the representations
and warranties set forth in Sections 6.7, 6.9 and 7.1, all of the
representations and warranties made by the Borrowers in this Agreement shall be deemed to be remade
by the Borrowers each time that the Funds Administrator requests a Revolving Loan or a Letter of
Credit under this Agreement, and each such request shall also constitute a representation and
warranty by the Borrowers that, after giving effect to the requested Revolving Loan or Letter of
Credit, no Default or Event of Default shall have occurred and remain outstanding.

(f) Funds Administrator Appointment. Each Borrower hereby irrevocably appoints the
Funds Administrator, as the agent for such Borrower on its behalf, to (i) request Revolving Loans
from the Agent, (ii) to give and receive notices under the Loan Documents and (iii) take all other
action which the Funds Administrator or the Borrowers are permitted or required to take under this
Agreement.

3.2 Handling of Proceeds of Collateral; Cash Dominion.

(a) Collection of Accounts and Other Proceeds. The Borrowers, at their expense, will
enforce and collect payments and other amounts owing on all Accounts in the ordinary course of the
Borrowers’ business subject to the terms hereof. The Borrowers agree to direct their account
debtors to send payments on all Accounts (other than Accounts arising from credit card sales and
international sales) directly to the CIT Lockbox or to a lockbox associated with a Depository
Account, and to include on all of the Borrower’s invoices relating to such Accounts the address of
such a lockbox as the sole address for remittance of payment. Notwithstanding the foregoing,
should a Borrower ever receive any payment on an Account or other Proceeds of the sale of
Collateral, including checks, cash, receipts from credit card sales and receipts, notes or other
instruments or property with respect to any Collateral, such Borrower agrees to hold such proceeds
in trust for the Agent, for the benefit of the Lenders, and, at any time that a Triggering Event
has occurred and remains outstanding, to deposit such proceeds directly into a Depository Account
or the CIT Lockbox within one Business Day after receipt; provided that any Triggering
Event that is described in clause (b) of the definition of “Triggering Event” shall be deemed to
remain outstanding until a period of sixty (60) consecutive days has elapsed during which Excess
Availability has been greater than $35,000,000.

(b) Transfer of Funds from Depository Accounts Established for Collection. Funds
remaining on deposit in a Depository Account that is established for the collection of payments
from the Borrowers’ account debtors and funds in the CIT Lockbox shall be transferred to the
Agent’s Bank Account on each Business Day, and the Borrowers agree to take all actions reasonably
required by the Agent or by any bank at which such a Depository Account is maintained in order to
effectuate the transfer of funds in this manner. All amounts received from a Depository Account or
the CIT Lockbox and any other proceeds of the Collateral deposited into the Agent’s Bank Account
will, for purposes of calculating Net Availability and interest, be credited to the Revolving Loan
Account on the date of deposit in the Agent’s Bank Account. If there are no Revolving Loans
outstanding at the time any such amounts or proceeds are deposited into the Agent’s Bank Account,
the Agent shall promptly transfer the same to the Borrowers in accordance with the Borrowers’
instructions and the Agent shall pay interest to the Borrowers on all such credit balances in
accordance with Section 8.15; provided that if an Event of Default has occurred and
remains outstanding and there are Letters of Credit outstanding, the Agent may hold any such
amounts or proceeds as cash collateral for such Letters of Credit in an amount of up to 110% of the
face amount of such Letters of Credit. No checks, drafts or other instruments received by the
Agent shall constitute final payment to the Agent unless and until such instruments have actually
been collected.

(c) New Depository Accounts. The Borrowers agree not to open any lockbox or new bank
account into which Proceeds of Collateral are to be delivered or deposited without the prior
written consent of the Agent and unless concurrently with the opening of such lockbox and/or bank
account, the Agent, the applicable Borrower and the bank which will maintain such lockbox or at
which such account will be maintained, execute a Depository Account Control Agreement with respect
to such lockbox and/or related bank account. Upon compliance with the terms set forth above, such
lockbox and/or bank account shall constitute a Depository Account for purposes of this Agreement.

3.3 Collective Borrowing Arrangement; Revolving Loan Account.

(a) Collective Borrowing Arrangement. The Borrowers have informed the Agent that all
of the Borrowers presently engage in an integrated operation that requires financing on an
integrated basis, and each Borrower expects to benefit from the continued successful performance of
such integrated operations. Therefore, in order to best utilize the borrowing powers of the
Borrowers in the most effective and cost efficient manner and to avoid adverse effects on the
operating efficiencies of each Borrower and the existing back-office practices of the Borrowers,
each Borrower has requested that all Revolving Loans and other advances be disbursed solely upon
the request of the Funds Administrator and to bank accounts managed solely by the Funds
Administrator, it being the intent and desire of the Borrowers that the Funds Administrator manage
for the benefit of each Borrower the expenditure and usage of such funds.

(b) Revolving Loan Account. The Agent shall charge the Revolving Loan Account for all
loans and advances made by the Agent and the Lenders to the Funds Administrator, or otherwise for
any Borrower’s account, and for all other Obligations (other than Ledger Debt and Hedge Agreement
Obligations), including Out-of-Pocket Expenses, when due and payable hereunder. Subject to the
provisions of Section 3.5 below, the Agent will credit the Revolving Loan Account with all
amounts received by the Agent from each Depository Account or from the CIT Lockbox for the
Borrowers’ account, including, as set forth above, all amounts received by the Agent in payment of
Accounts, and such amounts will be applied to payment of the Obligations in the order and manner
set forth herein. In no event shall prior recourse to any Account or other security granted to or
by the Borrowers be a prerequisite to the Agent’s or the Lenders’ rights to demand payment of any
of the Obligations. In addition, the Borrowers agree that neither the Agent nor any Lender shall
have any obligation whatsoever to perform in any respect the Borrowers’ contracts or obligations
relating to the Accounts.

3.4 Repayment of Overadvances. If at any time (a) the sum of the outstanding balance of
Revolving Loans and undrawn amount of Letters of Credit exceed the Line of Credit, or (b) an
Overadvance exists, the amount of such excess (in the case of clause (a)) or the amount of the
Overadvance (in the case of clause (b)) shall be immediately due and payable unless the Agent (as
permitted hereunder) or the Lenders otherwise agree in writing. Should the Agent or the Lenders
for any reason honor requests for Overadvances, such Overadvances shall be made in the Agent’s or
the Lenders’ sole discretion and subject to any additional terms the Agent or the Lenders deem
necessary.

3.5 Application of Proceeds of Collateral.

(a) Generally. Unless this Agreement expressly provides otherwise, so long as no
Event of Default shall have occurred and remain outstanding, the Agent agrees to apply (i) all
Proceeds of Trade Accounts Receivable to the Revolving Loan Account and (ii) any other payment
received by the Agent with respect to the Obligations, in such order and manner as the Agent shall
elect in the exercise of its reasonable business judgment.

(b) Application of Proceeds During an Event of Default. If an Event of Default shall
have occurred and remain outstanding, the Agent agrees to apply all Proceeds of Collateral and all
other payments received by the Agent to the payment of the Obligations in the manner and order set
forth in Section 10.4 hereof. If as a result of the application of the provisions of this
Section 3.5(b), any Proceeds or payments are applied to loans that are LIBOR Loans, such
application shall be treated as a prepayment of such LIBOR Loans and the Lenders shall be entitled
to the costs and fees provided for in Section 8.10 hereof.

3.6 Monthly Statement. After the end of each month, the Agent agrees to prepare and make
available to the Borrowers (by mail, facsimile, e-mail or posting to CIT’s System, as mutually
agreed to by the Funds Administrator and the Agent) and the Lenders, a statement showing the
accounting for the charges, loans, advances and other transactions occurring among the Agent, the
Lenders, the Funds Administrator and the Borrowers during that month. Each monthly statement shall
constitute prima facie evidence of such accounting, unless the Agent receives a written statement
of exception from the Borrowers, the Funds Administrator or any Lender within forty-five (45) days
of the date of such monthly statement.

3.7 Access to CIT’s System. The Agent shall provide to the Funds Administrator access to
CIT’s System during normal business hours, for the purposes of (i) obtaining information regarding
loan balances and Net Availability, and (ii) if permitted by the Agent, making requests for
Revolving Loans and submitting borrowing base certificates. Such access shall be subject to the
following terms, in addition to all terms set forth on the website for CIT’s System:

(a) The Agent shall provide to the Funds Administrator an initial password for secured access
to CIT’s System. The Funds Administrator shall provide the Agent with a list of officers and
employees that are authorized from time to time to access CIT’s System, and the Funds Administrator
agrees to limit access to the password and CIT’s System to such authorized officers and employees.
After the initial access, the Funds Administrator shall be solely responsible for (i) changing and
maintaining the integrity of the Funds Administrator’s password and (ii) any unauthorized use of
the Funds Administrator’s password or CIT’s System by any Borrower’s officers and employees.

(b) The Borrowers shall use CIT’s System and the Borrowers’ information thereon solely for the
purposes permitted above, and shall not access CIT’s System for the benefit of third parties or
provide any information obtained from CIT’s System to third parties. The Agent makes no
representation that loan balance or Net Availability information is or will be available, accurate,
complete, correct or current at all times. CIT’s System may be inoperable or inaccessible from
time to time, whether for required website maintenance, upgrades to CIT’s System, or for other
reasons, and in any such event the Funds Administrator must obtain loan balance and Net
Availability information, and make requests for Revolving Loans and submit borrowing base
certificates using other available means.

(c) The Borrowers hereby confirm and agree that CIT’s System consists of proprietary software,
data, tools, scripts, algorithms, business logic, website designs and interfaces and related
intellectual property, information and documentation. CIT’s System and related intellectual
property, information and documentation are the sole and exclusive property of the Agent, and the
Borrowers shall have no right, title or interest therein or thereto, except for the limited right
to access CIT’s System for the purposes permitted above. Upon termination of this Agreement, the
Borrowers agree to cease any use of CIT’s System.

(d) All agreements, covenants and representations and warranties made by the Funds
Administrator in any borrowing base certificate submitted to the Agent by means of CIT’s System are
incorporated herein by reference.

SECTION 4. Increases to the Commitments.

4.1 Request for Increase. Provided that no Default or Event of Default has occurred and
remains outstanding, the Borrowers may request in writing that the then effective Commitments be
increased to an aggregate amount which does not result in the principal amount of the Commitments
being greater than $250,000,000. Any such request shall (a) be submitted by the Funds
Administrator to the Lenders through the Agent not less than thirty days prior to the proposed
increase, (b) specify the proposed effective date and amount of such increase (which shall be no
less than $30,000,000), and (c) be accompanied by a Certificate signed by an officer of the Funds
Administrator stating that no Default or Event of Default has occurred and remains outstanding as
of the date of the request or will result from the requested increase.

4.2 Lender Elections to Increase. Each Lender may approve or reject a request for an
increase in the amount of the Commitments in its sole and absolute discretion and, absent an
affirmative written response within thirty days after receipt of such request, shall be deemed to
have rejected the request. The rejection of such a request by any number of Lenders shall not
affect the Borrowers’ right to increase the Commitments pursuant to this Section. In responding to
a request hereunder, each Lender which is willing to increase its Commitment shall specify the
amount of the proposed increase which it is willing to assume. Each consenting Lender shall be
entitled to participate ratably (based on its Pro Rata Percentage of the Commitments before such
increase) in any resulting increase in the Commitments, subject to the right of the Agent to adjust
allocations of the increased Commitments so as to result in the amounts of the Pro Rata Percentages
of the Lenders being in integral multiples of $100,000.

4.3 New Lenders. If the aggregate principal amount offered to be assumed by the consenting
Lenders is less than the amount requested, the Borrowers may (i) reject the proposed increase in
its entirety, (ii) accept the offered amounts or (iii) designate new lenders which qualify as
Eligible Assignees and which are reasonably acceptable to the Agent as additional Lenders hereunder
in accordance with Section 4.5 below (each, a “New Lender”), which New Lenders may
assume the amount of the increase in the Commitments that has not been assumed by the consenting
Lenders.

4.4 Notice of Allocations. After completion of the foregoing, the Agent shall give written
notification to the Lenders and any New Lenders of the increases to the Commitments which shall
thereupon become effective.

4.5 Joinder by New Lenders. Each New Lender shall become an additional party hereto as a
New Lender concurrently with the effectiveness of the proposed increase in the Commitments upon its
execution of an instrument of joinder to this Agreement which is in form and substance reasonably
acceptable to the Agent and which, in any event, contains the representations, warranties,
indemnities and other protections afforded to the Agent and the other Lenders which would be
granted or made by an assignee by means of the execution of an Assignment and Transfer Agreement.
Upon becoming a party hereto, such New Lender shall have all rights and obligations of a Lender
under this Agreement.

4.6 Effectiveness of Increase. Subject to the foregoing, any increase to the Commitments
requested under this Section shall be effective as of the date proposed by the Borrowers and shall
be in the principal amount equal to (i) the amount which consenting Lenders are willing to assume
as increases to the amount of their Commitments plus (ii) the amount offered by any New
Lenders. Upon the effectiveness of any such increase, the Pro Rata Percentages of each Lender will
be adjusted to give effect to the increase in the Commitments and, to the extent necessary, each
Revolving Loan outstanding under any Commitment which is so increased shall be refinanced with new
Revolving Loans reflecting the adjusted Pro Rata Percentages of the Lenders. As conditions to the
effectiveness of any such increase to the Commitments, the Borrowers shall:

(a) Issue replacement Promissory Notes to each affected Lender and new Promissory Notes to
each New Lender;

(b) execute and deliver to the Agent such amendments to and reaffirmations of the Loan
Documents as the Agent may reasonably request relating to such increase;

(c) execute and deliver to the Agent a certificate from each Borrower and each Guarantor
certifying and attaching board resolutions adopted by each of them approving or consenting to such
increase;

(d) pay to the existing Lenders any breakage costs which are payable in connection with the
refinancing of any Loans in the manner contemplated by Section 8.10; and

(e) pay to each existing Lender participating in the increase (other than CIT) and to each New
Lender a loan increase fee equal to the product of such Lender’s or New Lender’s increased
Commitment or new Commitment, as applicable, times 0.0005.

SECTION 5. Letters of Credit.

In order to assist the Borrowers in establishing or opening Letters of Credit with an Issuing
Bank, the Borrowers have requested that the Lenders (acting through the Agent) join in the
applications for such Letters of Credit, and/or guarantee payment or performance of such Letters of
Credit and any drafts or acceptances thereunder through the issuance of one or more Letter of
Credit Guaranties, thereby lending the Lenders’ credit to the Borrowers, and the Agent and the
Lenders have agreed to do so. These arrangements shall be handled by the Agent subject to
satisfaction of the conditions set forth in Section 2.1 hereof and the terms and conditions
set forth below.

5.1 Assistance and Purpose. Within the Line of Credit and subject to sufficient Net
Availability, the Lenders (acting through the Agent) shall assist the Borrowers in obtaining
Letters of Credit in an aggregate undrawn amount outstanding at any time not to exceed the Letter
of Credit Sub-Line. The term, form and purpose of each Letter of Credit and all documentation in
connection therewith, and any amendments, modifications or extensions thereof, must be mutually
acceptable to the Agent, the Issuing Bank and the Funds Administrator. Notwithstanding any other
provision of this Agreement to the contrary, if a Default or an Event of Default shall have
occurred and remain outstanding, the Agent’s and the Lenders’ assistance in connection with any
Letter of Credit shall be in the discretion of the Required Lenders.

5.2 Authority to Charge Revolving Loan Account. The Borrowers hereby authorize the Agent,
without notice to the Borrowers, to charge the Revolving Loan Account with the amount of all
indebtedness, liabilities and obligations of any kind incurred by the Agent or the Lenders under a
Letter of Credit Guaranty, including the charges of an Issuing Bank, as such indebtedness,
liabilities and obligations are charged to or paid by the Agent or the Lenders, or, if earlier,
upon the occurrence of an Event of Default. Any amount charged to the Revolving Loan Account shall
be deemed a Chase Bank Rate Loan hereunder and shall incur interest at the rate provided in
Section 8.1 (or Section 8.2, if applicable) of this Agreement. The Borrowers
confirm that any charges which the Agent may make to the Revolving Loan Account as provided herein
will be made as an accommodation to the Borrowers and solely at the Agent’s discretion.

5.3 Indemnity Relating to Letters of Credit. The Borrowers unconditionally indemnify the
Agent and the Lenders, and hold the Agent and the Lenders harmless from any and all loss, claim or
liability incurred by the Agent or the Lenders arising from any transactions or occurrences
relating to Letters of Credit established or opened for the Borrowers’ account, the Collateral
relating thereto and any drafts or acceptances thereunder, and all Obligations thereunder,
including any such loss, claim or liability arising from any error, omission, negligence,
misconduct or other action taken by an Issuing Bank, other than for any such loss, claim or
liability arising out of the gross negligence or willful misconduct by the Agent with respect to a
Letter of Credit Guaranty. This indemnity shall survive the termination of this Agreement and the
repayment of the Obligations.

5.4 Compliance of Goods, Documents and Shipments with Agreed Terms. The Agent shall not be
responsible for: (a) the existence, character, quality, quantity, condition, packing, value or
delivery of the goods purporting to be represented by any documents relating to any Letter of
Credit; (b) any difference or variation in the character, quality, quantity, condition, packing,
value or delivery of the goods from that expressed in such documents; (c) the validity, sufficiency
or genuineness of such documents or of any endorsements thereon, even if such documents should in
fact prove to be in any or all respects invalid, insufficient, fraudulent or forged; (d) the time,
place, manner or order in which shipment is made; (e) partial or incomplete shipment, or failure or
omission to ship any or all of the goods referred to in the Letters of Credit or documents relating
thereto; (f) any deviation from instructions; (g) delay, default, or fraud by the shipper and/or
anyone else in connection with the goods or the shipping thereof; or (h) any breach of contract
between the shipper or vendors and the Borrowers.

5.5 Handling of Goods, Documents and Shipments. The Borrowers agree that any action taken
by the Agent, if taken in good faith, or any action taken by the Issuing Bank of whatever nature,
under or in connection with the Letters of Credit, the Letter of Credit Guaranties, drafts or
acceptances relating to Letters of Credit, or the goods subject thereto, shall be binding on the
Borrowers and shall not result in any liability whatsoever of the Agent to the Borrowers. The
Agent shall have the full right and authority, on behalf of the Lenders, to (a) clear and resolve
any questions of non-compliance of documents, (b) give any instructions as to acceptance or
rejection of any documents or goods, (c) execute any and all steamship or airway guaranties (and
applications therefor), indemnities or delivery orders, (d) grant any extensions of the maturity
of, time of payment for, or time of presentation of, any drafts, acceptances, or documents, and
(e) agree to any amendments, renewals, extensions, modifications, changes or cancellations of any
of the terms or conditions of any of the applications, the Letters of Credit, the Letter of Credit
Guaranties or drafts or acceptances relating to Letters of Credit. An Issuing Bank shall be
entitled to comply with and honor any and all such documents or instruments executed by or received
solely from the Agent, without any notice to or any consent from the Borrowers or the Funds
Administrator. Notwithstanding any prior course of conduct or dealing with respect to the
foregoing (including amendments to and non-compliance with any documents, and/or the Borrowers’ or
the Funds Administrator’s instructions with respect thereto), the Agent may exercise its rights
under this Section 5.5 in its sole but reasonable business judgment. In addition, the
Borrowers and the Funds Administrator agree not to, without the prior written consent of the Agent:
(a) at any time, (i) execute any application for steamship or airway guaranties, indemnities or
delivery orders, (ii) grant any extensions of the maturity of, time of payment for, or time of
presentation of, any drafts, acceptances or documents, or (iii) agree to any amendments, renewals,
extensions, modifications, changes or cancellations of any of the terms or conditions of any of the
applications, Letters of Credit, drafts or acceptances; and (b) if an Event of Default shall have
occurred and remain outstanding, (i) clear and resolve any questions of non-compliance of documents
or (ii) give any instructions as to acceptances or rejection of any documents or goods.

5.6 Compliance with Laws; Payment of Levies and Taxes. The Borrowers agree that (a) all
necessary import and export licenses and certificates necessary for the import or handling of the
Collateral will be promptly procured, (b) all foreign and domestic governmental laws and
regulations in regard to the shipment and importation of the Collateral or the financing thereof
will be promptly and fully complied with, and (c) any certificate in that regard that the Agent may
at any time request will be promptly furnished to the Agent. In connection herewith, the Borrowers
represent and warrant to the Agent and the Lenders that all shipments made under any Letter of
Credit are and will be in compliance with the laws and regulations of the countries in which the
shipments originate and terminate, and are not prohibited by any such laws and regulations. The
Borrowers assume all risk, liability and responsibility for, and agree to pay and discharge, all
present and future local, state, federal or foreign Taxes, duties, or levies pertaining to the
importation and delivery of the Collateral. Any embargo, restriction, law, custom or regulation of
any country, state, city, or other political subdivision, where the Collateral is or may be
located, or wherein payments are to be made, or wherein drafts may be drawn, negotiated, accepted,
or paid, shall be solely the Borrowers’ risk, liability and responsibility.

5.7 Subrogation Rights. Upon any payments made to an Issuing Bank under a Letter of Credit
Guaranty, the Agent, for the benefit of the Lenders, shall acquire by subrogation, any rights,
remedies, duties or obligations granted to or undertaken by the Borrowers to the Issuing Bank in
any application for Letter of Credit, any standing agreement relating to Letters of Credit or
otherwise, all of which shall be deemed to have been granted to the Agent, for the benefit of the
Lenders, and apply in all respects to the Agent and shall be in addition to any rights, remedies,
duties or obligations contained herein.

SECTION 6. Collateral

6.1 Grant of Security Interest. (a) As security for the prompt payment in full of all
Obligations, each Borrower hereby pledges and grants to the Agent, for the benefit of the Lenders,
a continuing general lien upon, and security interest in, all of the Collateral in which such
Borrower has rights.

(b) Extent of Security Interests. The security interests granted hereunder shall
extend and attach to:

(i) all Collateral which is presently in existence or hereafter acquired and which is owned by
any Borrower or in which any Borrower has any interest, whether held by such Borrower or by others
for such Borrower’s account, and wherever located; and

(ii) all Inventory and any portion thereof which may be returned, rejected, reclaimed or
repossessed by either the Agent or any Borrower from any Borrower’s customers, as well as to all
supplies, goods, incidentals, packaging materials, labels and any other items which contribute to
the finished goods or products manufactured or processed by any Borrower, or to the sale, promotion
or shipment thereof.

6.2 Limited License. Regardless of whether the Agent’s security interests in any of the
General Intangibles has attached or is perfected, each Borrower hereby irrevocably grants to the
Agent, for the benefit of the Lenders, a royalty-free, non-exclusive license to use such Borrower’s
Trademarks, Copyrights, Patents and other proprietary and intellectual property rights after the
occurrence of an Event of Default in connection with the (i) advertisement for sale, and the sale
or other disposition of, any finished goods Inventory by the Agent in accordance with the
provisions of this Agreement, and (ii) the manufacture, assembly, completion and preparation for
sale of any unfinished Inventory by the Agent in accordance with the provisions of this Agreement.

6.3 Representations, Covenants and Agreements Regarding Collateral Generally.

(a) Representations and Warranties. Each Borrower represents and warrants to the
Agent and the Lenders that except for the Permitted Encumbrances, (i) this Agreement creates a
valid, perfected, first priority security interest in all Collateral as to which perfection may be
achieved by filing, (ii) the Agent’s security interests in the Collateral constitute, and will at
all times constitute, first priority and exclusive liens on the Collateral, and (iii) such Borrower
is, or will be at the time additional Collateral is acquired by such Borrower, the absolute owner
of such additional Collateral with full right to pledge, sell, transfer and create a security
interest therein, free and clear of any and all claims or liens other than Permitted Encumbrances.

(b) Covenants. Each Borrower, at its expense, agrees to forever warrant and defend
the Collateral from any and all claims and demands of any other Person, other than holders of
Permitted Encumbrances.

6.4 Representations Regarding Accounts and Inventory. Each Borrower represents and
warrants to the Agent and the Lenders that:

(a) each Trade Account Receivable is based on an actual and bona fide sale and delivery of
Inventory or rendition of services to customers, made by such Borrower in the ordinary course of
its business;

(b) the Inventory being sold and the Trade Accounts Receivable created by such sales are the
exclusive property of such Borrower and are not subject to any lien, encumbrance, security interest
or financing statement whatsoever, other than Permitted Encumbrances;

(c) the invoices evidencing such Trade Accounts Receivable are in the name of such Borrower;

(d) the customers of such Borrower have accepted the Inventory or services, owe and are
obligated to pay the full amounts stated in the invoices according to their terms, without dispute,
offset, defense, counterclaim or contra, except for (i) insignificant disputes and other such
matters arising in the ordinary course of business and (ii) significant disputes and other such
matters of which such Borrower has notified the Agent pursuant to Section 7.2(g) hereof;
and

(e) such Borrower’s Inventory is marketable in the ordinary course of such Borrower’s
business, and no Inventory has been produced in violation of the Fair Labor Standards Act (29
U.S.C. §201 et seq.), as amended.

6.5 Covenants and Agreements Regarding Accounts and Inventory.

(a) Each Borrower confirms to the Agent and the Lenders that all Taxes and fees relating to
its business, sales, and the Accounts or Inventory relating thereto, are such Borrower’s sole
responsibility, and that same will be paid by such Borrower when due, subject to
Section 7.2(d) hereof, and that none of said Taxes or fees represents a lien on or claim
against the Accounts, other than a Permitted Tax Lien.

(b) Each Borrower agrees not to acquire any Inventory on a consignment basis, nor co-mingle
its Inventory with any goods of its customers or any other Person (whether pursuant to any bill and
hold sale or otherwise).

(c) Each Borrower agrees to maintain such books and records regarding Accounts and Inventory
as the Agent reasonably may require and agrees that the books and records of such Borrower will
reflect the Agent’s interest in the Accounts and Inventory. In support of the continuing
assignment and security interest of the Agent in the Accounts and Inventory, each Borrower agrees
to deliver to the Agent all of the schedules, reports and other information described in
Section 7.2(g) of this Agreement. The Borrowers’ failure to maintain their books in the
manner provided herein or to deliver to the Agent any of the foregoing information shall in no way
affect, diminish, modify or otherwise limit the security interests granted to the Agent in the
Accounts and Inventory.

(d) Each Borrower agrees to issue credit memoranda promptly after accepting returns or
granting allowances, and to deliver to the Agent copies of such credit memoranda as and when
required to do so under Section 7.2(g) hereof.

(e) Each Borrower agrees to safeguard, protect and hold all Inventory for the account of the
Agent, on behalf of the Lenders, and to make no sale or other disposition thereof except in the
ordinary course of such Borrower’s business, on open account and on commercially reasonable terms
consistent with such Borrower’s past practices. As to any sale or other disposition of Inventory,
the Agent shall have all of the rights of an unpaid seller, including stoppage in transit,
replevin, rescission and reclamation. Each Borrower agrees to handle all Proceeds of sales of
Inventory in accordance with the provisions of Section 3.2 hereof.

6.6 [Intentionally Omitted].

6.7 General Intangibles. Each Borrower represents and warrants to the Agent and the
Lenders that as of the date hereof, such Borrower possesses all General Intangibles necessary to
conduct its business as presently conducted and that set forth on Schedule 6.7 attached
hereto is a complete and accurate listing of all Copyrights, Patents and Trademarks owned by such
Borrower or any of its Subsidiaries that, as of the date hereof, are registered with the U.S.
Copyright Office or the U.S. Patent and Trademark Office, as applicable. Each Borrower agrees to
maintain its rights in, and the value of, all such General Intangibles, and to pay when due all
payments required to maintain in effect any licensed rights necessary to conduct its business.
Each Borrower shall provide the Agent with adequate notice of the acquisition of rights with
respect to any additional Patents, Trademarks and Copyrights so that the Agent may, for the benefit
of the Lenders and to the extent permitted under the documentation granting such rights or
applicable law, perfect the Agent’s security interest in such rights in a timely manner. The
Borrowers, the Agent and the Lenders agree that, notwithstanding anything to the contrary in any
Intellectual Property Security Agreements, the rights of the Agent and the Lenders to foreclose on
or otherwise assert the use and control of the Patents, Trademarks and Copyrights and associated
rights that have been pledged as Collateral may be exercised only after the occurrence and during
the continuance of an Event of Default in accordance with the terms of this Agreement.

6.8 [Intentionally Omitted].

6.9 Letter of Credit Rights. Upon request by the Agent after the occurrence of an Event of
Default, each Borrower agrees to either (a) cause the issuer of any letter of credit of which such
Borrower is the beneficiary to consent to the assignment of the proceeds of such letter of credit
to the Agent, for the benefit of the Lenders, pursuant to an agreement in form and substance
satisfactory to the Agent, or (b) cause the issuer of such letter of credit to name the Agent, for
the benefit of the Lenders, as the transferee beneficiary of such letter of credit.

6.10 Depository Accounts. Set forth on Schedule 6.10 attached hereto is a complete
and accurate list of all Depository Accounts including the name and location of the bank and the
account number.

6.11 Credit Balances; Additional Collateral.

(a) The rights and security interests granted to the Agent and the Lenders hereunder shall
continue in full force and effect, notwithstanding the termination of this Agreement or the fact
that the Revolving Loan Account may from time to time be temporarily in a credit position, until
the termination of this Agreement and the full and final payment and satisfaction of the
Obligations. Any reserves or balances to the credit of the Borrowers (in the Revolving Loan
Account or otherwise), and any other property or assets of the Borrowers in the possession of the
Agent or any Lender, may be held by the Agent or such Lender as Other Collateral, and applied in
whole or partial satisfaction of such Obligations when due, subject to the terms of this Agreement
(including without limitation the provisions of Section 3.2(b)). The liens and security
interests granted to the Agent, for the benefit of the Lenders, herein and any other lien or
security interest which the Agent or the Lenders may have in any other assets of the Borrowers
secure payment and performance of all present and future Obligations.

(b) Notwithstanding the Agent’s security interests in the Collateral, to the extent that the
Obligations are now or hereafter secured by any assets or property other than the Collateral, or by
the guaranty, endorsement, assets or property of any other Person, the Agent shall have the right
in its sole discretion to determine which rights, security, liens, security interests or remedies
the Agent shall at any time pursue, foreclose upon, relinquish, subordinate, modify or take any
other action with respect to, without in any way modifying or affecting any of such rights,
security, liens, security interests or remedies, or any of the Agent’s or the Lenders’ rights under
this Agreement.

SECTION 7. Representations, Warranties and Covenants

7.1 Initial Disclosure Representations and Warranties. Each Borrower represents and
warrants to the Agent and the Lenders that as of the date hereof:

(a) Financial Condition. (i) The amount of such Borrower’s assets, at fair valuation,
exceeds the book value of such Borrower’s liabilities, (ii) such Borrower is generally able to pay
its debts as they become due and payable, and (iii) such Borrower does not have unreasonably small
capital to carry on its business as currently conducted absent extraordinary and unforeseen
circumstances. All financial statements of the Borrowers previously furnished to the Agent present
fairly, in all material respects, the financial condition of the Borrowers as of the date of such
financial statements.

(b) Organization Matters; Collateral Locations. Schedule 7.1(b) attached
hereto correctly and completely sets forth (i) Skechers’ and its Subsidiaries’ exact names, as
currently reflected by the records of their States of incorporation or formation, (ii) Skechers’
and its Subsidiaries’ States of incorporation or formation, (iii) Skechers and its Subsidiaries’
federal employer identification numbers and State organization identification numbers (if any), and
(iv) the address of Skechers’ and each of its Subsidiaries’ chief executive office and all
locations of Collateral.

(c) Power and Authority; Conflicts; Enforceability.

(i) Each Borrower has full power and authority to execute and deliver this Agreement and the
other Loan Documents to which such Borrower is a party, and to perform all of such Borrower’s
obligations thereunder.

(ii) The execution and delivery by each Borrower of this Agreement and the other Loan
Documents to which such Borrower is a party, and the performance of such Borrower’s obligations
hereunder and thereunder, have been duly authorized by all necessary corporate or other relevant
action, and do not (w) require any consent or approval of any director, shareholder, partner or
member of such Borrower that has not been obtained, (x) violate any term, provision or covenant
contained in the organizational documents of such Borrower (such as the certificate or articles of
incorporation, certificate of origin, partnership agreement, by-laws or operating agreement),
(y) violate, or cause such Borrower to be in default under, any law, rule, regulation, order,
judgment or award applicable to such Borrower or its assets, except for violations or defaults that
could not reasonably be expected to result in a Material Adverse Effect or (z) violate any term,
provision, covenant or representation contained in, or constitute a default under, or result in the
creation of any lien under, any loan agreement, lease, indenture, mortgage, deed of trust, note,
security agreement or pledge agreement to which such Borrower is a signatory or by which such
Borrower or its assets are bound or affected, except, in the case of a violation or default
described in this clause (z), could not reasonably be expected to result in a Material Adverse
Effect .

(iii) This Agreement and the other Loan Documents to which each Borrower is a party constitute
legal valid and binding obligations of such Borrower, enforceable in accordance with their
respective terms, subject to applicable bankruptcy, insolvency, moratorium, fraudulent transfer and
other laws affecting creditors’ rights generally, and subject to general principles of equity,
regardless of whether considered in a proceeding at law or in equity.

(d) Schedules. Each of the Schedules attached to this Agreement set forth in all
material respects a true, correct and complete description of the matter or matters covered
thereby.

(e) Compliance with Laws. The Borrowers and their properties are in compliance with
all federal, state and local acts, rules and regulations, and all orders of any federal, state or
local legislative, administrative or judicial body or official, except to the extent the failure to
so comply would not have a Material Adverse Effect. The Borrowers have obtained and maintain all
permits, approvals, authorizations and licenses necessary to conduct their business as presently
conducted, except to the extent the failure to have such permits, approvals, authorizations or
licenses would not have a Material Adverse Effect.

(f) Environmental Matters. Except as set forth on Schedule 7.1(f):

(i) None of the operations of the Borrowers are the subject of any federal, state or local
investigation to determine whether any remedial action is needed to address the presence or
disposal of any environmental pollution, hazardous material or environmental clean-up of the Real
Estate or the Borrowers’ leased real property. No enforcement proceeding, complaint, summons,
citation, notice, order, claim, litigation, investigation, letter or other communication from a
federal, state or local authority has been filed against or delivered to any Borrower, regarding or
involving any release of any environmental pollution or hazardous material on any real property now
or previously owned or operated by such Borrower.

(ii) The Borrowers have no known contingent liability with respect to any release of any
environmental pollution or hazardous material on any real property now or previously owned or
operated by the Borrowers except for liabilities that could not reasonably be expected to result in
a Material Adverse Effect.

(iii) The Borrowers are in compliance with all environmental statutes, acts, rules,
regulations and orders applicable to the operation of the Borrowers’ business, except to the extent
that the failure to so comply could not reasonably be expected to result in a Material Adverse
Effect.

(g) Pending Litigation. Except as previously disclosed by the Borrowers to the Agent
in writing, there exist no actions, suits or proceedings of any kind by or against any Borrower
pending in any court or before any arbitrator or governmental body, that, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

(h) License Agreements. Set forth on Schedule 7.1(h) is a listing of all
license agreements to which any Borrower or any of their Subsidiaries is a party and pursuant to
which such Borrower or such Subsidiary is the licensee of trademarks or other intellectual
property.

7.2 Affirmative Covenants. Until the termination of this Agreement and the full and final
payment and satisfaction of the Obligations:

(a) Maintenance of Financial Records; Inspections. The Borrowers agree to maintain
books and records pertaining to the Borrowers’ financial matters in such detail, form and scope as
the Agent reasonably may require. The Borrowers agree that the Agent, accompanied by any Lender
(at such Lender’s expense), and/or any agent designated by the Agent, may enter upon the Borrowers’
premises at any time during normal business hours and, so long as no Event of Default has occurred
and remains outstanding, upon reasonable advance notice to Skechers, and from time to time, in
order to (i) examine and inspect the books and records of the Borrowers, and make copies thereof
and take extracts therefrom, and (ii) verify, inspect and perform physical counts and other
valuations of the Collateral and any and all records pertaining thereto. The Borrowers irrevocably
authorize all accountants and third parties to disclose and deliver directly to the Agent and the
Lenders, at the Borrowers’ expense, all financial statements and information, books, records, work
papers and management reports generated by them or in their possession regarding the Borrowers or
the Collateral. All reasonable and documented costs, fees and expenses incurred by the Agent in
connection with such examinations, inspections, physical counts and other valuations shall
constitute Out-of-Pocket Expenses for purposes of this Agreement; provided that so long as
no Event of Default has occurred and remains outstanding, the Borrowers shall be required to
reimburse the Agent for such costs, fees and expenses no more than once during any period of 12
months, but more frequently (such frequency to be in the Agent’s discretion) if average Excess
Availability is less than $35,000,000 for any period of 90 consecutive days.

(b) Further Assurances. The Borrowers agree to comply with the requirements of all
state and federal laws in order to grant to the Agent, for the benefit of the Lenders, valid and
perfected first priority security interests in the Collateral, subject only to the Permitted
Encumbrances. The Agent is hereby authorized by the Borrowers to file any financing statements,
continuations and amendments covering the Collateral without the Borrowers’ signatures in
accordance with the provisions of the UCC. The Borrowers hereby consent to and ratify the filing
of any financing statements covering the Collateral by the Agent on or prior to the Restatement
Effective Date. The Borrowers agree to do whatever the Agent reasonably may request from time to
time, by way of (i) filing notices of liens, financing statements, amendments, renewals and
continuations thereof, (ii) cooperating with agents and employees of the Agent, (iii) keeping
Collateral records, (iv) transferring proceeds of Collateral to the Agent’s possession in
accordance with the terms hereof and (v) performing such further acts as the Agent reasonably may
require in order to effect the purposes of this Agreement, including the execution of control
agreements with respect to Depository Accounts.

(c) Insurance and Condemnation.

(i) Required Insurance. The Borrowers agree to maintain insurance on all Real Estate,
Equipment and Inventory under such policies of insurance, with such insurance companies, in such
reasonable amounts and covering such insurable risks as are at all times reasonably satisfactory to
the Agent (the “Required Insurance”). All policies covering the Inventory are, subject to
the rights of any holder of a Permitted Encumbrance having priority over the security interests of
the Agent, to be made payable solely to the Agent, for the benefit of the Lenders, in case of loss,
under a standard non-contributory “mortgagee”, “secured party” or “lender’s loss payable” clause or
endorsement, and are to contain such other provisions as the Agent reasonably may require to fully
protect the Agent’s interest in the Inventory and to any payments to be made under such policies.
Each loss payable endorsement in favor of the Agent shall be substantially in the form set forth in
Exhibit D attached hereto. If an Event of Default shall have occurred and remain
outstanding, the Agent, subject to the rights of any holder of a Permitted Encumbrance having
priority over the security interests of the Agent, shall have the sole right, in the name of the
Agent or the Borrowers, to file claims under any insurance policies, to receive, receipt and give
acquittances for any payments that may be payable thereunder, and to execute any and all
endorsements, receipts, releases, assignments, reassignments or other documents that may be
necessary to effect the collection, compromise or settlement of any claims under any such insurance
policies.

(ii) The Agent’s Purchase of Insurance. In the event the Borrowers fail to provide
the Agent with evidence of the Required Insurance in the manner set forth in
Section 7.2(c)(i) above, the Agent may purchase insurance at the Borrowers’ expense to
protect the Agent’s interests in the Collateral. The insurance purchased by the Agent may, but
need not, protect the Borrowers’ interests in the Collateral, and therefore such insurance may not
pay any claim which the Borrowers may make or any claim which is made against the Borrowers in
connection with the Collateral. The Borrowers may later request that the Agent cancel any
insurance purchased by the Agent, but only after providing the Agent with satisfactory evidence
that the Borrowers have the Required Insurance. If the Agent purchases insurance covering all or
any portion of the Collateral, the Borrowers shall be responsible for the costs of such insurance,
including interest (at the applicable rate set forth hereunder) and other charges accruing on the
purchase price therefor, until the effective date of the cancellation or the expiration of the
insurance, and the Agent may charge all of such costs, interest and other charges to the Revolving
Loan Account. The costs of the premiums of any insurance purchased by the Agent may exceed the
costs of insurance which the Borrowers may be able to purchase on their own. In the event that the
Agent purchases insurance, the Agent will notify the Borrowers of such purchase within thirty (30)
days after the date of such purchase. If, within thirty (30) days after the date of receipt of
such notice, the Borrowers provide the Agent with proof that the Borrowers had the Required
Insurance as of the date on which the Agent purchased insurance and the Borrowers have
continued at all times thereafter to have the Required Insurance, then the Agent agrees to cancel
the insurance purchased by the Agent and credit the Revolving Loan Account for the amount of all
costs, interest and other charges associated with such insurance that the Agent previously charged
to the Revolving Loan Account.

(iii) Application of Insurance and Condemnation Proceeds. If any Borrower suffers a
loss of or damage to Inventory due to condemnation, fire or other casualty, the Agent agrees to
apply any Casualty Proceeds received in respect of such Inventory loss or damage to repay the
outstanding Revolving Loans and to transfer any Casualty Proceeds received in respect of a loss of
or damage to any other property to the Borrowers; provided that if there are no Revolving
Loans outstanding or if Excess Availability is greater than $35,000,000 at the time such Casualty
Proceeds are received (after giving effect to such loss or damage) and if at such time no Default
or Event of Default has occurred and remains outstanding, the Agent agrees to transfer all such
Casualty Proceeds to the Borrowers.

If a Default or an Event of Default shall have occurred and remain outstanding as of the date of
the Agent’s receipt of any Casualty Proceeds, the Agent may, subject to the rights of any holder of
a Permitted Encumbrance having priority over the security interests of the Agent, apply the
Casualty Proceeds to the payment of the Obligations in such manner and in such order as the Agent
may elect in its sole discretion.

(d) Payment of Taxes. The Borrowers agree to pay when due all Taxes lawfully levied,
assessed or imposed upon the Borrowers or the Collateral (including all sales taxes collected by
the Borrowers on behalf of its customers in connection with sales of Inventory and all payroll
taxes collected by the Borrowers on behalf of its employees), unless the Borrowers are contesting
such Taxes in good faith, by appropriate proceedings, and are maintaining adequate reserves for
such Taxes in accordance with GAAP. Notwithstanding the foregoing, if a lien securing any Taxes is
filed in any public office and such lien is not a Permitted Tax Lien, then the Borrowers shall pay
all Taxes secured by such lien immediately and remove such lien of record promptly. Pending the
payment of such Taxes and removal of such lien, the Agent may, at its election and without curing
or waiving any Event of Default which may have occurred as a result thereof, (i) establish an
Availability Reserve in the amount of such Taxes (or such other amount as the Agent shall deem
appropriate in the exercise of its reasonable business judgment) or (ii) pay such Taxes on behalf
of the Borrowers, and the amount paid by the Agent shall become an Obligation which is due and
payable on demand by the Agent.

(e) Compliance With Laws.

(i) The Borrowers agree to comply with all federal, state and local acts, rules and
regulations, and all orders of any federal, state or local legislative, administrative or judicial
body or official, if the failure to so comply would have a Material Adverse Effect,
provided that the Borrowers may contest any acts, rules, regulations, orders and directions
of such bodies or officials in any reasonable manner which the Agent determines, in the exercise of
its reasonable business judgment, will not materially and adversely effect the Agent’s or the
Lenders’ rights or priorities in the Collateral.

(ii) Without limiting the generality of the foregoing, the Borrowers agree to comply with all
environmental statutes, acts, rules, regulations or orders, as presently existing or as adopted or
amended in the future, applicable to the ownership and/or use of the Borrowers’ real property and
operation of their business, if the failure to so comply would have a Material Adverse Effect. The
Borrowers shall not be deemed to have breached any provision of this Section 7.2(e) if
(x) the failure to comply with the requirements of this Section 7.2(e) resulted from good
faith error or innocent omission, (y) the Borrowers promptly commence and diligently pursue a cure
of such breach and (z) such failure is cured within thirty (30) days following the Borrowers’
receipt of notice from the Agent of such failure, or if such breach cannot in good faith be cured
within thirty (30) days following the Borrowers’ receipt of such notice, then such breach is cured
within a reasonable time frame based on the extent and nature of the breach and the necessary
remediation, and in conformity with any applicable consent order, consensual agreement and
applicable law.

(f) Notices Concerning Environmental, Employee Benefit and Pension Matters. The
Borrowers agree to notify the Agent in writing of:

(i) any expenditure (actual or anticipated) in excess of $1,000,000 for environmental
clean-up, environmental compliance or environmental testing and the impact of said expenses on the
Borrowers’ working capital;

(ii) any Borrower’s receipt of notice from any local, state or federal authority advising such
Borrower of any environmental liability (real or potential) arising from such Borrower’s
operations, its premises, its waste disposal practices, or waste disposal sites used by such
Borrower; and

(iii) any Borrower’s receipt of notice from any governmental agency or any sponsor of any
“multiemployer plan” (as that term is defined in ERISA) to which such Borrower has contributed,
relating to any of the events described in Section 10.1(g) hereof.

The Borrowers agree to provide the Agent promptly with copies of all such notices and other
information pertaining to any matter set forth above if the Agent so requests.

(g) Collateral Reporting – SEE ANNEX A.

(h) Financial Reporting. The Borrowers agree to furnish to the Agent and the Lenders:

(i) within ninety (90) days after the end of each fiscal year of Skechers, a Consolidated
Balance Sheet as at the close of such year, and a consolidated statement of profit and loss and
cash flow of Skechers for such year, audited by independent public accountants selected by Skechers
and satisfactory to the Agent, together with (x) the unqualified opinion of the accountants
preparing such financial statements and (y) if requested by the Agent, such accountants’ management
practice letter;

(ii) within forty-five (45) days after the end of each month, (x) a Consolidated Balance Sheet
as at the end of such month, (y) a consolidated statement of profit and loss and cash flow of
Skechers for such month and for the period commencing on the first day of the current fiscal year
through the end of such month, and (z) comparative statements of profit and loss and cash flow of
Skechers for the same month and same fiscal year-to-date period in the prior fiscal year, certified
by an authorized financial or accounting officer of Skechers (or any other authorized officer
satisfactory to the Agent);

(iii) as and when filed by Skechers, copies of all (y) financial reports, registration
statements and other documents filed by Skechers with the U.S. Securities and Exchange Commission,
as and when filed by Skechers, and (z) annual reports filed pursuant to ERISA in connection with
each benefit plan of the Borrowers subject to ERISA; and

(iv) promptly after receipt of a request from the Agent, monthly projections of Skechers’
Consolidated Balance Sheet, and consolidated statements of profits and loss and cash flow of
Skechers, as well as monthly projected Net Availability for the Borrowers for the following fiscal
year.

Each financial statement which the Borrowers are required to submit pursuant to clauses (i)
and (ii) above must be accompanied, at any time that Revolving Loans are outstanding, by an
officer’s certificate substantially in the form set forth on Exhibit C attached hereto,
signed by an authorized financial or accounting officer of Skechers (or any other authorized
officer satisfactory to the Agent). In addition, should the Borrowers modify their accounting
principles and procedures from those in effect on the Restatement Effective Date, the Borrowers
agree to prepare and deliver to the Agent and the Lenders statements of reconciliation in form and
substance reasonably satisfactory to the Agent.

(i) Asset Appraisals. From time to time upon the request of the Agent, the Borrowers
agree to permit the Agent to perform appraisals of the Borrowers’ Inventory. The Borrowers agree
to reimburse the Agent for the reasonable and documented costs and expenses relating to (y) no more
than one (1) Inventory appraisal in any twelve-month period (but only if the Eligible Accounts
Receivable component of the Borrowing Base is fully drawn and the amount of Revolving Loans
outstanding under the Eligible Inventory component of the Borrowing Base is at least $25,000,000 at
the time such appraisal is conducted), so long as no Event of Default shall have occurred and
remain outstanding, and (z) all appraisals performed while an Event of Default remains outstanding.
All appraisals shall be performed by qualified appraisers selected by the Agent. To the extent
that the Borrowers are required by this Section 7.2(i) to reimburse the Agent for the
Agent’s reasonable and documented costs and expenses relating to appraisals, such costs and
expenses shall constitute Out-of-Pocket Expenses.

(j) Business Qualification. The Borrowers agree to qualify to do business, and to
remain qualified to do business and in good standing, in each jurisdiction where the failure to so
qualify, or to remain qualified or in good standing, would have a Material Adverse Effect.

(k) Anti-Money Laundering and Terrorism Regulations. The Borrowers agree to comply
with all applicable anti-money laundering and terrorism laws, regulations and executive orders in
effect from time to time (including, without limitation, the USA Patriot Act (Pub. L. No. 107-56)).
The Borrowers also agree to ensure that no Person who owns a controlling interest in or otherwise
controls a Borrower is a Person designated under Section 1(b), (c) or (d) of Executive Order No.
13224 (issued September 23, 2001) or any other similar Executive Order. The Borrowers acknowledge
that the Agent’s and each Lender’s performance hereunder is subject to compliance with all such
laws, regulations and executive orders, and in furtherance of the foregoing, the Borrowers agree to
provide to the Agent and the Lenders all information about the Borrowers’ ownership, officers,
directors, customers and business structure as the Agent and the Lenders reasonably may require to
comply with, such laws, regulations and executive orders.

(l) Maintenance of Equipment. Each Borrower agrees to (i) maintain the Equipment in
as good and substantial repair and condition as the Equipment owned by such Borrower is now
maintained, reasonable wear and tear excepted, (ii) make any and all repairs and replacements when
and where necessary, and (iii) safeguard, protect and hold all Equipment owned by such Borrower in
accordance with past practices. The Equipment will only be used by the Borrowers in the operation
of their business.

7.3 Financial Covenants. Until termination of this Agreement and the full and final
payment and satisfaction of all Obligations, the Borrowers agree:

(a) Fixed Charge Coverage Ratio. To maintain a Fixed Charge Coverage Ratio,
calculated at the end of each fiscal quarter of Skechers, of not less than 1.1:1.0;
provided that if Excess Availability is not less than $50,000,000 at any time during a
particular fiscal quarter, there shall be no requirement to maintain a Fixed Charge Coverage Ratio
with respect to such fiscal quarter.

7.4 Negative Covenants. Until termination of this Agreement and full and final payment and
satisfaction of all Obligations, the Borrowers agree not to, and will cause each Subsidiary of the
Borrowers not to:

(a) Liens and Encumbrances. Mortgage, assign, pledge, transfer or otherwise permit
any lien, charge, security interest, encumbrance or judgment (whether as a result of a purchase
money or title retention transaction, or other security interest, or otherwise) to exist on any of
the Collateral or its other assets, whether now owned or hereafter acquired, except for the
Permitted Encumbrances.

(b) Indebtedness. Incur or create any Indebtedness other than the Permitted
Indebtedness.

(c) Sale of Assets. Sell, lease, assign, transfer or otherwise dispose of
(i) Collateral, except (A) the sale of Inventory in the ordinary course of business, (B) the sale
or other disposition of Collateral (other than Inventory and Accounts) which is of de
minimus value to the operation of the Borrower’s business and (C) as otherwise specifically
permitted by this Agreement, or (ii) all or any substantial part of its assets, if any, which do
not constitute Collateral.

(d) Corporate Change. (i) Merge or consolidate with any other entity, (ii) change its
name or principal places of business, (iii) change its structure or organizational form, or
reincorporate or reorganize in a new jurisdiction, (iv) enter into or engage in any operation or
activity materially different from that presently being conducted by the Borrowers or any
Subsidiary of the Borrowers, as the case may be; provided that (A) any Subsidiary of a
Borrower may merge with and into a Borrower if such Borrower is the surviving entity; (B) Skechers
may enter into any merger or consolidation transaction in connection with an acquisition permitted
under Section 7.4(g) so long as Skechers is the surviving entity; (C) any Borrower and any
Subsidiary of Borrower may change its name or its principal place of business so long as the
Borrowers provide the Agent with thirty (30) days prior written notice thereof and the appropriate
parties execute and deliver to the Agent, prior to making such change, all documents and agreements
required by the Agent in order to ensure that the liens and security interests granted to the
Agent, for the benefit of the Lenders, hereunder continue in effect without any break or lapse in
perfection; and (D) Skechers Sport, LLC and Skechers Collection, LLC may be dissolved so long as
their assets are transferred to a Borrower or one of the other Guarantors.

(e) Guaranty Obligations. Assume, guarantee, endorse, or otherwise become liable upon
the obligations of any Person, except (i) pursuant to this Agreement and the other Loan Documents,
(ii) by the endorsement of negotiable instruments for deposit or collection or similar transactions
in the ordinary course of business and (iii) guarantees of Permitted Indebtedness.

(f) Dividends and Distributions. Declare or pay any dividend or distribution of any
kind on, or purchase, acquire, redeem or retire, any of its equity interests (of any class or type
whatsoever), whether now or hereafter issued and outstanding, other than Permitted Distributions.

(g) Investments. (i)  make any advance or loan to, or any investment in, any Person
other than Permitted Intercompany Loans and Permitted Intercompany Capital Contributions, or
(ii) acquire all or substantially all of the assets of, or any capital stock or any equity
interests in, any firm, entity or corporation, other than (A) current investments of the Borrowers
and any Subsidiary of the Borrowers, as the case may be, in existing Subsidiaries of such entities;
(B) investments of the type described in clause (i) above in an aggregate amount not to exceed
$30,000,000 during any fiscal year of Skechers so long as so long as no Default or Event of Default
shall have occurred and remain outstanding on the date any such investment is made, or would occur
as a result of such making such investment, and Excess Availability is at least $50,000,000 for a
period of 90 consecutive days prior to the date any such investment is made and immediately after
giving effect to such investment; (C) acquisitions of the type described in clause (ii) above that
each do not exceed $100,000,000 in aggregate consideration paid so long as so long as no Default or
Event of Default shall have occurred and remain outstanding on the date any such acquisition is
consummated, or would occur as a result of the consummation of such acquisition, and Excess
Availability is at least $50,000,000 for a period of 90 consecutive days prior to the date any such
acquisition is consummated and immediately after giving effect to the consummation of such
acquisition; and (D) investments in cash and Cash Equivalents.

(h) Related Party Transactions. Enter into any transaction, including, without
limitation, any purchase, sale, lease, loan or exchange of property, with any controlling
shareholder, officer, director, parent (direct or indirect), Subsidiary (direct or indirect) or
other Person otherwise affiliated with a Borrower or any Subsidiary of a Borrower, unless (i) such
transaction otherwise complies with the provisions of this Agreement, (ii) such transaction is for
the sale of goods or services rendered in the ordinary course of business and pursuant to the
reasonable requirements of a Borrower or any Subsidiary of a Borrower, as the case may be, and upon
standard terms and conditions and fair and reasonable terms, no less favorable to such entity than
such entity could obtain in a comparable arms length transaction with an unrelated third party, and
(iii) no Event of Default shall have occurred and remain outstanding at the time such transaction
occurs, or would occur after giving effect to such transaction.

(i) Restricted Payments. Make any payment of the principal of, or interest on, any
Subordinated Debt, or purchase, acquire or redeem any of the Subordinated Debt, unless (x) such
payment, purchase, acquisition or redemption is expressly permitted by the terms of the applicable
Subordination Agreement and (y) no Default or Event of Default shall have occurred and remain
outstanding on the date on which such payment or transaction occurs, or would occur as a result
thereof; provided that the Borrowers may make such payments in respect of Subordinated Debt
that otherwise would not be permitted under the applicable Subordination Agreement in an amount not
to exceed $100,000,000 in the aggregate during the term of this Agreement so long as no Default or
Event of Default shall have occurred and remain outstanding on the date on which such payment
occurs, or would occur as a result of such payment, and Excess Availability is at least $50,000,000
for a period of 90 consecutive days prior to the date such payment is made and immediately after
giving effect to the making of such payment.

(j) Prohibited Uses of Proceeds. Use the proceeds of any Revolving Loan made under
this Agreement, directly or indirectly, in violation of any applicable law or regulation, including
without limitation Regulations T, U or X of the Board of Governors of the Federal Reserve System as
from time to time in effect (and any successor regulation or official interpretation of such
Board), or to purchase or carry any “margin stock,” as defined in Regulations U and X, or any
“margin security,” “marginable OTC stock” or “foreign margin stock” within the meaning of
Regulation T, U or X.

SECTION 8. Interest, Fees and Expenses

8.1 Interest. Interest on the outstanding principal balance of the Revolving Loans shall
be charged as of the last day of each month. Interest shall be calculated hereunder, at the
Borrowers’ election which election shall be made at least three (3) Business Days prior to the end
of each month (and if not made then shall be based on the Chase Bank Rate then in effect) at a rate
per annum equal to (a) the Applicable Margin plus the Chase Bank Rate or (b) the Applicable
Margin plus the applicable LIBOR, on the average net principal balance of such Revolving Loans at
the close of each day during such month, as reflected by CIT’s System. Any change in the rate of
interest hereunder due to a change in the Chase Bank Rate or the applicable LIBOR will take effect
as of the first day of the month following such change in the Chase Bank Rate or the applicable
LIBOR. All interest rates shall be calculated based on a 360-day year and actual days elapsed.

8.2 Default Interest Rate. Upon the occurrence of an Event of Default, provided
that the Agent has given the Borrowers written notice of such Event of Default (other than an Event
of Default described in Section 10.1(c) of this Agreement, for which no written notice
shall be required), all Obligations (other than Ledger Debt and Hedge Agreement Obligations) may,
at the election of the Agent or Required Lenders, bear interest at the Default Rate of Interest
until such Event of Default is waived or cured.

8.3 Fees and Expenses Relating to Letters of Credit.

(a) [Intentionally Omitted].

(b) Charges of Issuing Bank. The Borrowers agree to reimburse the Agent for any and
all charges, fees, commissions, costs and expenses charged to the Agent for the Borrowers’ account
by an Issuing Bank in connection with, or arising out of, Letters of Credit or out of transactions
relating thereto, when charged to or paid by the Agent, or as may be due upon any termination of
this Agreement.

8.4 Out-of Pocket Expenses. The Borrowers agree to reimburse the Agent and the Lenders for
all Out-of-Pocket Expenses when charged to or paid by the Agent or the Lenders.

8.5 Line of Credit Fee. On the first day of each month, commencing on the first day of the
month following the Restatement Effective Date, the Borrowers agree to pay to the Agent, for the
ratable benefit of the Lenders, the Line of Credit Fee.

8.6 Loan Facility Fee. To induce the Lenders to enter into this Agreement and to extend to
the Borrowers the Line of Credit, the Borrowers agree to pay to the Agent, for the benefit of the
Lenders (other than CIT) and any participants, a Loan Facility Fee in the amount of $300,000, which
shall be fully earned upon execution of this Agreement by the Agent, the initial Lenders hereunder
and the Borrowers.

8.7 Fee Letter. To induce the Agent to enter into this Agreement, the Borrowers agree to
pay to the Agent, for its sole and separate account, the fees set forth in the Fee Letter, which
shall be fully earned upon execution of this Agreement by the Agent, the initial Lenders hereunder
and the Borrowers.

8.8 Standard Operational Fees. In addition to all Out-of-Pocket Expenses incurred by the
Agent in connection with any action taken under Section 7.2(a) hereof (but without
duplication), the Borrowers agree to pay to the Agent, for its own account, (a) all Documentation
Fees, (b) the Agent’s standard charges for any employee of the Agent used to conduct any of the
examinations, verifications, inspections, physical counts and other valuations described in
Section 7.2(a) hereof (currently $1,000 per person, per day), and (c) the Agent’s standard
charges for each wire transfer made by the Agent to or for the benefit of the Borrowers (currently
$30), provided that such standard charges may be increased by the Agent from time to time.
Such charges shall be due and payable in accordance with the Agent’s standard practices, as in
effect from time to time.

8.9 LIBOR Loans.

(a) [Intentionally Omitted].

(b) Restrictions Affecting the Making or Funding of LIBOR Loans. Notwithstanding any
other provision of this Agreement to the contrary, if any law, regulation, treaty or directive, or
any amendment thereto or change in the interpretation or application thereof, shall make it
unlawful for any Lender to make or maintain any LIBOR Loan, then (x) such LIBOR Loan shall convert
automatically to a Chase Bank Rate Loan at the end of the current month, or such earlier date as
may be required by such law, regulation, treaty or directive, and (y) the obligation of the Agent
or the Lenders thereafter to make or continue LIBOR Loans and to convert Chase Bank Rate Loans into
LIBOR Loans hereunder shall be suspended until the Agent determines that it is no longer unlawful
for any Lender to make and maintain LIBOR Loans as contemplated herein. In addition, in the event
that, by reason of any Regulatory Change, any Lender either (x) incurs any material additional
costs based on or measured by the excess above a specified level of the amount of a category of
deposits or other liabilities of such Lender which includes deposits by reference to which the
interest rate on LIBOR Loans is determined hereunder, or a category of extensions of credit or
other assets of such Lender which includes LIBOR Loans, or (y) becomes subject to any material
restrictions on the amount of such a category of liabilities or assets which such Lender may hold,
then if the Agent so elects by notice to the Borrowers, the obligations of the Agent and the
Lenders thereafter to make or continue LIBOR Loans and to convert Chase Bank Rate Loans into LIBOR
Loans hereunder shall be suspended until such Regulatory Change ceases to be in effect.

(c) Inability to Determine LIBOR. Notwithstanding any other provision of this
Agreement to the contrary, if the Agent determines in the exercise of its reasonable business
judgment (which determination shall be conclusive and binding upon the Borrowers) that by reason of
circumstances affecting the interbank LIBOR market, adequate and reasonable means do not exist for
ascertaining LIBOR with respect to any election of a new LIBOR Loan, the Agent shall give written
notice of such determination to the Borrowers prior to the effective date of such election. Upon
receipt of such notice, the Funds Administrator may cancel the Funds Admnistrator’s request for
such new LIBOR Loan, in which case the requested LIBOR Loan shall be made as a Chase Bank Rate
Loan. Until such notice has been withdrawn by the Agent, the obligations of the Agent and the
Lenders thereafter to make or continue LIBOR Loans and to convert Chase Bank Rate Loans into LIBOR
Loans hereunder shall be suspended until the Agent determines that adequate and reasonable means
again exist for ascertaining LIBOR with respect to any election of a new LIBOR Loan.

(d) Compensation for Costs. The Borrowers hereby agree to pay to the Agent, for the
benefit of the Lenders, on demand, any additional amounts necessary to compensate the Lenders for
any costs incurred by the Lenders in making any conversions from LIBOR Loans to Chase Bank Rate
Loans, including, without limitation, breakage costs provided for in Section 8.10 of this
Agreement.

(e) Loan Participants. For purposes of this Section 8.9, the term “Lender”
shall include any financial institution that purchases from any Lender a participation in the loans
made by such Lender to the Borrowers hereunder.

8.10 LIBOR Breakage Costs and Fees. In the event that the Borrowers (i) pay all or any
part of the principal amount of a LIBOR Loan on a date prior to the last day of the month for which
such LIBOR Loan was elected, (ii) fail to borrow a LIBOR Loan, or fail to convert a Chase Bank Rate
Loan to a LIBOR Loan, on the date for such borrowing or conversion specified in the relevant
request to the Agent, or (iii) fail to pay to the Agent the principal of, or interest on, any LIBOR
Loan when due, the Borrowers agree to pay to the Agent and each Lender (without duplication), on
demand, such amount as shall compensate the Agent or any Lender for any actual loss, cost or
expense that the Agent or any Lender may sustain or incur as a result of such event (including,
without limitation, any interest or fees payable by the Agent or any Lender to lenders or
depositors of funds obtained by the Agent or any Lender in order to make or maintain any LIBOR
Loans under this Agreement), and (z) in the case of a prepayment of any LIBOR Loan, the excess (if
any) of the amount of interest that would have accrued on such loan from the first day of the
applicable month to the date of prepayment, assuming that such loan was a Chase Bank Rate Loan,
over the amount of interest that actually accrued on such loan from the first day of such month to
the date of prepayment. The determination by the Agent or any Lender of the amount of any such
loss, cost or expense described in clause (y) of the preceding sentence, when set forth in a
written notice to the Borrowers containing the Agent’s or any Lender’s calculations thereof in
reasonable detail, shall constitute prima facie evidence of such amount.

8.11 [Intentionally Omitted].

8.12 Capital Adequacy. In the event that any Lender, subsequent to the Restatement
Effective Date, determines in the exercise of its reasonable business judgment that (x) any change
in applicable law, rule, regulation or guideline regarding capital adequacy, or (y) any change in
the interpretation or administration thereof, or (z) compliance by such Lender with any new request
or directive regarding capital adequacy (whether or not having the force of law) of any central
bank or other governmental or regulatory authority, has or would have the effect of reducing the
rate of return on such Lender’s capital as a consequence of its obligations hereunder to a level
below that which such Lender could have achieved but for such change or compliance (taking into
consideration such Lender’s policies with respect to capital adequacy) by an amount deemed material
by such Lender in the exercise of its reasonable business judgment, the Borrowers agree to pay to
such Lender, no later than five (5) days following demand by such Lender, such additional amount or
amounts as will compensate such Lender for such reduction in rate of return. In determining such
amount or amounts, such Lender may use any reasonable averaging or attribution methods. The
protection of this Section 8.12 shall be available to any Lender regardless of any possible
contention of invalidity or inapplicability with respect to the applicable law, regulation or
condition. A certificate of a Lender setting forth such amount or amounts as shall be necessary to
compensate such Lender with respect to this Section 8.12 and the calculation thereof, when
delivered to the Borrowers, shall constitute prima facie evidence of such amount or amounts. In
the event a Lender exercises its rights pursuant to this Section 8.12, and subsequent
thereto determines that the amounts paid by the Borrowers exceeded the amount which such Lender
actually required to compensate such Lender for any reduction in rate of return on its capital,
such excess shall be returned to the Borrowers by such Lender.

8.13 Taxes, Reserves and Other Conditions. In the event that any applicable law, treaty or
governmental regulation, or any change therein or in the interpretation or application thereof, or
compliance by any Lender with any new request or directive (whether or not having the force of law)
of any central bank or other governmental or regulatory authority, shall:

(a) subject such Lender to any tax of any kind whatsoever with respect to this Agreement or
change the basis of taxation of payments to such Lender of principal, fees, interest or any other
amount payable hereunder or under any other Loan Documents (except for changes in the rate of tax
on the overall net income of such Lender by the federal government or other jurisdiction in which
it maintains its principal office);

(b) impose or require any reserve, special deposit, assessment or similar requirement against
assets held by, or deposits in or for the account of, advances or loans by, or other credit
extended by such Lender by reason of or in respect to this Agreement and the Loan Documents,
including (without limitation) pursuant to Regulation D of the Board of Governors of the Federal
Reserve System; or

(c) impose on such Lender any other condition with respect to this Agreement or any other
document;

and the result of any of the foregoing is to (i) increase the cost to such Lender of making,
renewing or maintaining such Lender’s loans hereunder by an amount deemed material by such Lender
in the exercise of its reasonable business judgment, or (ii) reduce the amount of any payment
(whether of principal, interest or otherwise) in respect of any of the loans made hereunder by an
amount that such Lender deems to be material in the exercise of its reasonable business judgment,
the Borrowers agree to pay to such Lender, no later than five (5) days following demand by such
Lender, such additional amount or amounts as will compensate such Lender for such increase in cost
or reduction in payment, as the case may be. A certificate of any Lender setting forth such amount
or amounts as shall be necessary to compensate such Lender with respect to this
Section 8.13 and the calculation thereof, when delivered to the Borrowers, shall constitute
prima facie evidence of such amount or amounts. In the event any Lender exercises its rights
pursuant to this Section 8.13, and subsequent thereto determines that the amounts paid by
the Borrowers in whole or in part exceeded the amount which such Lender actually required to
compensate such Lender for any increase in cost or reduction in payment, such excess shall be
returned to the Borrowers by such Lender.

8.14 Authority to Charge Revolving Loan Account. The Borrowers hereby authorize the Agent
to charge the Revolving Loan Account with the amount of all payments due under this
Section 8 as such payments become due. Any amount charged to the Revolving Loan Account
shall be deemed a Chase Bank Rate Loan hereunder and shall bear interest at the rate provided in
Section 8.1 (or Section 8.2, if applicable) of this Agreement. The Borrowers
confirm that any charges which the Agent may make to the Revolving Loan Account as provided herein
will be made as an accommodation to the Borrowers and solely at the Agent’s discretion.

8.15 Interest on Credit Balances. To the extent CIT is holding any credit balances in its
account for the Borrowers, interest shall be credited to the Borrowers as of the last day of each
month based on the daily credit balances in such account for that month at a rate equal to two and
three-quarters percent (2.75%) per annum below the Chase Bank Rate then in effect. Any change in
the rate of interest hereunder due to a change in the Chase Bank Rate will take effect as of the
first day of the month following such change in the Chase Bank Rate.

8.16 Replacement of Affected Lender. If any Lender requests additional amounts under
Section 8.12 or 8.13 (any such Lender, an “Affected Lender”), then such
Affected Lender shall use reasonable efforts to promptly designate a different one of its lending
offices or to assign its rights and obligations hereunder to another of its offices or branches, if
(a) in the reasonable judgment of such Affected Lender, such designation or assignment would
eliminate or reduce amounts payable pursuant to Section 8.12 or 8.13 and (b) in the
reasonable judgment of such Affected Lender, such designation or assignment would not subject it to
any material unreimbursed cost or expense and would not otherwise be materially disadvantageous to
it. The Borrowers agree to pay all reasonable out-of-pocket costs and expenses incurred by such
Affected Lender in connection with any such designation or assignment. If, after such reasonable
efforts, such Affected Lender does not so designate a different one of its lending offices or
assign its rights to another of its offices or branches so as to eliminate the Borrowers’
obligation to pay any future amounts to such Affected Lender, then the Borrowers (without prejudice
to any amounts then due to such Affected Lender under Section 8.12 or 8.13) may (i)
designate another financial institution reasonably acceptable to Agent to purchase the Obligations
owed to such Affected Lender and such Affected Lender’s rights hereunder (a “Replacement
Lender”), and such Affected Lender shall assign to the Replacement Lender its Obligations,
without recourse upon or warranty by (except as to title) such Affected Lender, and upon such
purchase by such Replacement Lender, such Replacement Lender shall be deemed to be a “Lender” for
purposes of this Agreement and such Affected Lender shall cease to be a “Lender” for purposes of
this Agreement.

SECTION 9. Powers

9.1 Authority. The Borrowers hereby authorize the Agent, or any Person or agent which the
Agent may designate, at the Borrowers’ cost and expense, to exercise all of the following powers,
which authority shall be irrevocable until the termination of this Agreement and the full and final
payment and satisfaction of the Obligations:

(a) To receive, take, endorse, sign, assign and deliver, all in the name of the Agent or the
Borrowers, any and all checks, notes, drafts, and other documents or instruments relating to the
Collateral;

(b) To receive, open and dispose of all mail addressed to the Borrowers, and to notify postal
authorities to change the address for delivery thereof to such address as the Agent may designate;

(c) To request from customers indebted on Accounts at any time, in the name of the Agent,
information concerning the amounts owing on the Accounts;

(d) To request from customers indebted on Accounts at any time, in the name of the Borrowers,
any certified public accountant designated by the Agent or any other designee of the Agent,
information concerning the amounts owing on the Accounts;

(e) To transmit to customers indebted on Accounts notice of the Agent’s interest therein and
to notify customers indebted on Accounts to make payment directly to the Agent for the Borrowers’
account; and

(f) To take or bring, in the name of the Agent, the Lenders or the Borrowers, all steps,
actions, suits or proceedings deemed by the Agent necessary or desirable to enforce or effect
collection of the Accounts.

9.2 Limitations on Exercise. Notwithstanding any other provision of this Agreement to the
contrary, the powers set forth in Sections 9.1(b), (c), (e) and
(f) may only be exercised if an Event of Default shall have occurred and remain
outstanding.

SECTION 10. Events of Default and Remedies

10.1 Events of Default. Each of the following events shall constitute an “Event of
Default” under this Agreement:

(a) the cessation of the business of any Borrower or any Guarantor (except as permitted under
Section 7.4(d)), or the calling of a meeting of the creditors of any Borrower or any
Guarantor for purposes of compromising its debts and obligations;

(b) the failure of any Borrower or any Guarantor to generally meet its debts as those debts
mature;

(c) (i) the commencement by any Borrower or any Guarantor of any bankruptcy, insolvency,
arrangement, reorganization, receivership, assignment for the benefit of creditors or similar
proceedings under any federal or state law; or (ii) the commencement against any Borrower or any
Guarantor of any bankruptcy, insolvency, arrangement, reorganization, receivership, assignment for
the benefit of creditors or similar proceeding under any federal or state law by creditors of any
of them, but only if such proceeding is not contested by such Borrower or such Guarantor, within
ten (10) days and not dismissed or vacated within thirty (30) days of commencement, or any of the
actions or relief sought in any such proceeding shall occur or be authorized by any Borrower or any
Guarantor;

(d) the breach or violation by any Borrower of any warranty, representation or covenant
contained in this Agreement (other than those referred to in Section 10.1(e) below),
provided that such breach or violation shall not be deemed to be an Event of Default unless
such Borrower fails to cure such breach or violation to the Agent’s reasonable satisfaction within
ten (10) Business Days from the date of such breach or violation;

(e) the breach or violation by any Borrower of any warranty, representation or covenant
contained in Sections 6.3, 6.4, 6.5, 7.2(c), 7.2(g),
7.3 and 7.4;

(f) the failure of any Borrower to pay any of the Obligations (other than Ledger Debt or Hedge
Agreement Obligations) within five (5) Business Days of the due date thereof, provided that
nothing contained herein shall prohibit the Agent from charging such amounts to the Revolving Loan
Account on the due date thereof;

(g) any Borrower shall (i) engage in any “prohibited transaction” as defined in ERISA,
(ii) incur any “accumulated funding deficiency” as defined in ERISA, (iii) incur any “reportable
event” as defined in ERISA, (iv) terminate any “plan”, as defined in ERISA or (v) become involved
in any proceeding in which the Pension Benefit Guaranty Corporation shall seek appointment, or is
appointed, as trustee or administrator of any “plan”, as defined in ERISA, and with respect to this
Section 10.1(g), such event or condition either (x) remains uncured for a period of thirty
(30) days from date of occurrence and (y) could, in the Agent’s reasonable business judgment,
subject such Borrower to any tax, penalty or other liability having a Material Adverse Effect;

(h) the occurrence of any default or event of default (after giving effect to any applicable
grace or cure period) under any of the other Loan Documents, or any of the other Loan Documents
ceases to be valid, binding and enforceable in accordance with its terms;

(i) the occurrence of any default or event of default (after giving effect to any applicable
grace or cure period) under (i)  any instrument or agreement evidencing or governing the
Subordinated Debt or (ii) any instrument or agreement evidencing or governing other Indebtedness of
any Borrower having a principal amount in excess of $5,000,000;

(j) any Borrower shall modify the terms or provisions of any agreement, instrument or other
document relating to any Subordinated Debt without the Agent’s prior written consent, unless such
modification is permitted by the applicable Subordination Agreement;

(k) a Change of Control shall occur;

(l) a final judgment for the payment of money in excess of $2,500,000 shall be rendered
against any Borrower or any Guarantor (other than a judgment as to which a financially sound and
reputable insurance company has acknowledged coverage of such claim in writing), and either
(i) within thirty (30) days after the entry of such judgment, shall not have been discharged or
stayed pending appeal (or if stayed pending appeal, shall not have been discharged within thirty
(30) days after the entry of a final order of affirmance on appeal), or (ii) enforcement
proceedings shall be commenced by any holder of such judgment; or

(m) any Guarantor shall attempt to terminate its Guaranty or deny that such Guarantor has any
liability thereunder, or any Guaranty shall be declared null and void and of no further force and
effect.

10.2 Remedies With Respect to Outstanding Loans. Upon the occurrence of a Default or an
Event of Default, at the option of the Agent or the Required Lenders, all loans, advances and
extensions of credit provided for in Sections 3, 4 and 5 of this Agreement
thereafter shall be made in the Agent’s and the Lenders’ discretion, and the obligation of the
Agent and the Lenders to make Revolving Loans, and to assist the Borrowers in opening Letters of
Credit, shall cease unless such Default is cured to the satisfaction of the Required Lenders or
such Event of Default is waived in accordance herewith. In addition, upon the occurrence of an
Event of Default, the Agent may, at its option, and the Agent shall, upon the request of the
Required Lenders, (a) declare all Obligations immediately due and payable, (b) charge the Borrowers
the Default Rate of Interest on all then outstanding or thereafter incurred Obligations (other than
Ledger Debt and Hedge Agreement Obligations) in lieu of the interest provided for in Sections
8.1 of this Agreement, provided that the Agent has given the Borrowers written notice
of such Event of Default if required by Section 8.2, and (c) immediately terminate this
Agreement upon notice to the Borrowers. Notwithstanding the foregoing, (x) the Agent’s and the
Lenders’ commitments to make loans, advances and extensions of credit provided for in
Sections 3, 4 and 5 of this Agreement automatically shall terminate without
any declaration, notice or demand by the Agent or the Lenders upon the commencement of any
proceeding described in clause (ii) of Section 10.1(c), and (y) this Agreement
automatically shall terminate and all Obligations shall become due and payable immediately without
any declaration, notice or demand by the Agent or the Lenders, upon the commencement of any
proceeding described in clause (i) of Section 10.1(c) or the occurrence of an Event of
Default described in clause (ii) of Section 10.1(c). The exercise of any option is not
exclusive of any other option that may be exercised at any time by the Agent or the Lenders.

10.3 Remedies With Respect to Collateral. Immediately after the occurrence of an Event of
Default, the Agent may, at its option, and the Agent shall, upon the request of the Required
Lenders, to the extent permitted by applicable law: (a) remove from any premises where same may be
located any and all books and records, computers, electronic media and software programs associated
with any Collateral (including electronic records, contracts and signatures pertaining thereto),
documents, instruments and files, and any receptacles or cabinets containing same, relating to the
Accounts, and the Agent may use, at the Borrowers’ expense, such of the Borrowers’ personnel,
supplies or space at the Borrowers’ place of business or otherwise, as may be necessary to properly
administer and control the Accounts or the handling of collections and realizations thereon;
(b) bring suit, in the name of the Borrowers, the Lenders or the Agent on behalf of the Lenders,
and generally shall have all other rights respecting the Accounts, including, without limitation,
the right to (i) accelerate or extend the time of payment, (ii) settle, compromise, release in
whole or in part any amounts owing on any Accounts and (iii) issue credits in the name of the
Borrowers or the Agent; (c) sell, assign and deliver the Collateral and any returned, reclaimed or
repossessed merchandise, with or without advertisement, at public or private sale, for cash, on
credit or otherwise, at the Agent’s sole option and discretion, and the Agent, on behalf of the
Lenders, may bid or become a purchaser at any such sale, free from any right of redemption, which
right is hereby expressly waived by the Borrowers; (d) foreclose the Agent’s security interests in
the Collateral by any available judicial procedure, or take possession of any or all of the
Collateral without judicial process, and to enter any premises where any Collateral may be located
for the purpose of taking possession of or removing the same; and (e) exercise any other rights and
remedies provided in law, in equity, by contract or otherwise. The Agent shall have the right,
without notice or advertisement, to sell, lease, or otherwise dispose of all or any part of the
Collateral whether in its then condition or after further preparation or processing, in the name of
the Borrowers or the Agent, on behalf of the Lenders, or in the name of such other party as the
Agent may designate, either at public or private sale or at any broker’s board, in lots or in bulk,
for cash or for credit, with or without warranties or representations (including, without
limitation, warranties of title, possession, quiet enjoyment and the like), and upon such other
terms and conditions as the Agent in its sole discretion may deem advisable, and the Agent shall
have the right to purchase at any such sale on behalf of the Lenders. If any Inventory shall
require rebuilding, repairing, maintenance or preparation, the Agent shall have the right, at its
option, to do such of the aforesaid as is necessary, for the purpose of putting the Inventory in
such saleable form as the Agent shall deem appropriate. The Borrowers agree, at the request of the
Agent, to assemble the Inventory, and to make it available to the Agent at premises of the
Borrowers or elsewhere and to make available to the Agent the premises and facilities of the
Borrowers for the purpose of the Agent’s taking possession of, removing or putting the Inventory in
saleable form. If notice of intended disposition of any Collateral is required by law, it is
agreed that ten (10) days notice shall constitute reasonable notification and full compliance with
the law. The net cash proceeds resulting from the Agent’s exercise of any of the foregoing rights
(after deducting all Out-of-Pocket Expenses relating thereto) shall be applied by the Agent to the
payment of the Obligations in the order set forth in Section 10.4 hereof, and the Borrowers
shall remain liable to the Agent and the Lenders for any deficiencies, and the Agent in turn agrees
to remit to the Borrowers or their successors or assigns, any surplus resulting therefrom. The
enumeration of the foregoing rights is not intended to be exhaustive and the exercise of any right
shall not preclude the exercise of any other right of the Agent or the Lenders under applicable law
or the other Loan Documents, all of which shall be cumulative.

10.4 Application of Proceeds. The Agent agrees to apply the net cash proceeds resulting
from the Agent’s exercise of any of the foregoing rights (after deducting all Out-of-Pocket
Expenses relating thereto) to the payment of the Obligations in the following order:

(a) first, to all unpaid Out of Pocket Expenses;

(b) second, to all accrued and unpaid fees owed to the Agent and the Lenders;

(c) third, to accrued and unpaid interest on the Obligations (other than Ledger Debt and Hedge
Agreement Obligations);

(d) fourth, to the unpaid principal amount of the Obligations (other than Ledger Debt and
Hedge Agreement Obligations), including amounts necessary to cash collateralize any outstanding
Letters of Credit in an amount equal to 110% of the face amount of such Letters of Credit;

(e) fifth, to the unpaid principal amount of Obligations consisting of Hedge Agreement
Obligations; and

(f) sixth, to the unpaid principal amount of Obligations consisting of Ledger Debt.

10.5 General Indemnity. In addition to the Borrowers’ agreement to reimburse the Agent and
the Lenders for Out-of-Pocket Expenses, but without duplication, each Borrower hereby agrees to
indemnify the Agent and the Lenders, and each of their respective officers, directors, employees,
attorneys and agents (each, an “Indemnified Party”) from, and to defend and hold each
Indemnified Party harmless against, any and all losses, liabilities, obligations, claims, actions,
judgments, suits, damages, penalties, costs, fees, expenses (including reasonable attorney’s fees)
of any kind or nature which at any time may be imposed on, incurred by, or asserted against, any
Indemnified Party:

(a) as a result of the Agent’s or the Lenders, exercise of (or failure to exercise) any of
their respective rights and remedies hereunder, including, without limitation, (i) any sale or
transfer of the Collateral, (ii) the preservation, repair, maintenance, preparation for sale or
securing of any Collateral, and (iii) the defense of the Agent’s interests in the Collateral
(including the defense of claims brought by any Borrower as a debtor-in-possession or otherwise,
any secured or unsecured creditors of the Borrowers, or any trustee or receiver in bankruptcy);

(b) as a result of any environmental pollution, hazardous material or environmental clean-up
relating to the Real Estate or to real property that is leased by a Borrower, the Borrowers’
operation and use of the Real Estate or of real property that is leased by a Borrower, and the
Borrowers’ off-site disposal practices;

(c) arising from or relating to (i) the maintenance and operation of any Depository Account,
(ii) any Depository Account Control Agreements and (iii) any action taken (or failure to act) by
any Indemnified Party with respect thereto;

(d) in connection with any regulatory investigation or proceeding by any regulatory authority
or agency having jurisdiction over the Borrowers; and

(e) otherwise relating to or arising out of the transactions contemplated by this Agreement
and the other Loan Documents, or any action taken (or failure to act) by any Indemnified Party with
respect thereto;

provided that an Indemnified Party’s conduct in connection with the any of the foregoing
matters does not constitute gross negligence or willful misconduct, as finally determined by a
court of competent jurisdiction. This indemnification shall survive the termination of this
Agreement and the payment and satisfaction of the Obligations.

SECTION 11. Termination

Except as otherwise provided in Section 10.2 hereof, the Required Lenders (acting
through the Agent) may terminate this Agreement and the Line of Credit only as of the initial or
any subsequent Termination Date, and then only by the Agent giving the Borrowers at least sixty
(60) days prior written notice of termination. The Borrowers may terminate this Agreement at any
time prior to any Termination Date upon thirty (30) days prior written notice to the Agent. THIS
AGREEMENT, UNLESS TERMINATED AS HEREIN PROVIDED, SHALL AUTOMATICALLY CONTINUE FROM TERMINATION DATE
TO TERMINATION DATE. All Obligations shall become due and payable in full on the date of any
termination hereunder and, pending a final accounting of the Obligations, the Agent may withhold
any credit balances in the Revolving Loan Account (unless supplied with an indemnity satisfactory
to the Agent) as a cash reserve to cover any contingent Obligation then outstanding, including, but
not limited to, an amount equal to 110% of the face amount of any outstanding Letters of Credit,
or, alternatively, the Borrowers may provide backup letters of credit in an amount equal to 110% of
the face amount of any outstanding Letters of Credit, issued by a bank and in form and substance
satisfactory to the Agent. All of the Agent’s and the Lenders’ rights, liens and security
interests granted pursuant to the Loan Documents shall continue after any termination of this
Agreement until all Obligations have been fully and finally paid and satisfied.

SECTION 12. Miscellaneous

12.1 Waivers. Each Borrower hereby waives diligence, demand, presentment, protest and any
notices thereof as well as notices of nonpayment, intent to accelerate and acceleration. No waiver
of an Event of Default shall be effective unless such waiver is in writing and signed by the Agent
and the Required Lenders. No delay or failure of the Agent or the Lenders to exercise any right or
remedy hereunder, whether before or after the happening of any Event of Default, shall impair any
such right or remedy, or shall operate as a waiver of such right or remedy, or as a waiver of such
Event of Default. A waiver on any occasion shall not be construed as a bar to or waiver of any
right or remedy on any future occasion. No single or partial exercise by the Agent or the Lenders
of any right or remedy precludes any other or further exercise thereof, or precludes any other
right or remedy.

12.2 Entire Agreement; Amendments. This Agreement and the other Loan Documents:
(a) constitute the entire agreement among the Borrowers, the Agent and/or the Lenders;
(b) supersede any prior agreements (other than the Surviving Loan Documents) relating to the
Existing Loan Agreement, including without limitation the Existing Loan Agreement and any
guaranties and guarantor security agreements executed by any Person in connection with the Existing
Loan Agreement; (c) subject to the provisions of Section 14.10 hereof that relate to
matters subject to the approval of all Lenders, may be amended only by a writing signed by the
Borrowers, the Agent and the Required Lenders; and (d) shall bind and benefit the Borrowers, the
Agent, the Lenders and their respective successors and assigns. Should the provisions of any other
Loan Document conflict with the provisions of this Agreement, the provisions of this Agreement
shall apply and govern.

12.3 Usury Limit. In no event shall the Borrowers, upon demand by the Agent for payment of
any indebtedness relating hereto, by acceleration of the maturity thereof, or otherwise, be
obligated to pay interest and fees in excess of the amount permitted by law. Regardless of any
provision herein or in any agreement made in connection herewith, the Agent and the Lenders shall
never be entitled to receive, charge or apply, as interest on any indebtedness relating hereto, any
amount in excess of the maximum amount of interest permissible under applicable law. If the Agent
or the Lenders ever receive, collect or apply any such excess, it shall be deemed a partial
repayment of principal and treated as such. If as a result, the entire principal amount of the
Obligations is paid in full, any remaining excess shall be refunded to the Borrowers. This
Section 12.3 shall control every other provision of the Agreement, the other Loan Documents
and any other agreement made in connection herewith.

12.4 Severability. If any provision hereof or of any other Loan Document is held to be
illegal or unenforceable, such provision shall be fully severable, and the remaining provisions of
the applicable agreement shall remain in full force and effect and shall not be affected by such
provision’s severance. Furthermore, in lieu of any such provision, there shall be added
automatically as a part of the applicable agreement a legal and enforceable provision as similar in
terms to the severed provision as may be possible.

12.5 WAIVER OF JURY TRIAL; SERVICE OF PROCESS. THE BORROWERS, THE AGENT AND THE LENDERS
EACH HEREBY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE LOAN DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED THEREUNDER. EACH BORROWER HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND
CONSENTS TO SERVICE OF PROCESS BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED. IN NO
EVENT WILL THE AGENT OR THE LENDERS BE LIABLE FOR LOST PROFITS OR OTHER SPECIAL OR CONSEQUENTIAL
DAMAGES.

12.6 Notices. Except as otherwise herein provided, any notice or other communication
required hereunder shall be in writing (messages sent by e-mail or other electronic transmission
(other than by telecopier) shall not constitute a writing, however any signature on a document or
other writing that is transmitted by e-mail or telecopier shall constitute a valid signature for
purposes hereof), and shall be deemed to have been validly served, given or delivered when received
by the recipient if hand delivered, sent by commercial overnight courier or sent by facsimile, or
three (3) Business Days after deposit in the United States mail, with proper first class postage
prepaid and addressed to the party to be notified as follows:

(a) if to the Agent, at:

The CIT Group/Commercial Services, Inc.

300 South Grand Avenue

Los Angeles, California 90071

Attn: Darrin Beer

Telecopier No.: (213) 576-4671;

(b) if to the Borrowers at:

Skechers U.S.A., Inc.

228 Manhattan Beach Boulevard, #200

Manhattan Beach, California 90266

Attn: Chief Financial Officer

Telecopier No.: (310) 798-7961;

with a copy to:

Skechers U.S.A., Inc.

228 Manhattan Beach Boulevard, #200

Manhattan Beach, California 90266

Attn: General Counsel

Telecopier No.: (310) 798-7961;

(c) if to any Lender, at its address set forth below its signature to this Agreement or its
address specified in the Assignment and Transfer Agreement executed by such Lender; or

(d) to such other address as any party may designate for itself by like notice.

12.7 Judicial Reference. The parties to this Agreement prefer that any dispute between or
among them be resolved in litigation subject to a jury trial waiver as set forth in Section
12.5. If, however, under the then applicable law of the jurisdiction in which a party seeks to
commence any such litigation, a pre-dispute jury trial waiver of the type provided for in
Section 12.5 is unenforceable in litigation to resolve any dispute, claim, cause of action
or controversy under this Agreement or any other Loan Document (each, a “Claim”), then,
upon the written request of such party, such Claim, including any and all questions of law or fact
relating thereto, shall be determined exclusively by a judicial reference proceeding. Except as
otherwise provided in Section 12.5, venue for any such reference proceeding shall be in the
state or federal court in the County or District where venue is appropriate under applicable law
(the “Court”). The parties shall select a single neutral referee, who shall be a retired
state or federal judge. If the parties cannot agree upon a referee, the Court shall appoint the
referee. The referee shall report a statement of decision to the Court. Nothing in this paragraph
shall limit the right of any party at any time to exercise self-help remedies, foreclose against
collateral or obtain provisional remedies (including, without limitation, claim and delivery,
injunctive relief, attachment or the appointment of a receiver). The parties shall bear the fees
and expenses of the referee equally unless the referee orders otherwise. The referee also shall
determine all issues relating to the applicability, interpretation, and enforceability of this
Section 12.7. The parties acknowledge that any Claim determined by reference pursuant to
this Section 12.7 shall not be adjudicated by a jury.

12.8 CHOICE OF LAW. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA, EXCEPT TO THE
EXTENT THAT ANY OTHER LOAN DOCUMENT INCLUDES AN EXPRESS ELECTION TO BE GOVERNED BY THE LAWS OF
ANOTHER JURISDICTION.

12.9 Amendment and Restatement; No Novation. This Agreement amends and restates the
Existing Loan Agreement in its entirety. This Agreement, however, does not extinguish the
obligations for the payment of money outstanding under the Existing Loan Agreement or discharge or
release the obligations or the liens or priority of any mortgage, pledge, security agreement or any
other security granted or executed by any of the Borrowers in connection with the Existing Loan
Agreement, except to the extent that the Collateral under this Agreement does not include some of
the types of collateral that were included in the Existing Loan Agreement. Nothing herein
contained shall be construed as a substitution or novation of the obligations outstanding under the
Existing Loan Agreement or instruments securing the same, which shall remain in full force and
effect, except as modified hereby or by instruments executed concurrently herewith. Nothing
expressed or implied in this Agreement shall be construed as a release or other discharge of the
Borrowers from any of their obligations or liabilities under the Existing Loan Agreement or any of
the Surviving Loan Documents. Each Borrower hereby (a) confirms and agrees that each of the
Surviving Loan Documents is, and shall continue to be, in full force and effect and is hereby
ratified and confirmed in all respects except that on and after the Restatement Effective Date all
references in any Surviving Loan Document to “the Loan Agreement,” “thereto,” “thereof,”
“thereunder” or words of like import referring to the Existing Loan Agreement shall mean the
Existing Loan Agreement as amended and restated in its entirety by this Agreement; and (b) confirms
and agrees that to the extent that any Surviving Loan Document purports to assign or pledge to
Agent or to grant to Agent a security interest in or lien on, any collateral, such pledge or
assignment or grant of the security interest or lien is hereby ratified and confirmed in all
respects. Without limiting the generality of the foregoing, Skechers II hereby acknowledges and
agrees that the Assignment for Security of Patents, Trademarks and Copyrights dated June 15, 1999
between Skechers II and Heller is hereby confirmed and ratified and shall henceforth be deemed to
secure the Obligations and that such agreement hereby is modified accordingly.

12.10 Joint and Several Liability.

(a) Joint and Several Liability. All Revolving Loans made to the Borrowers shall be
deemed jointly funded to, and received by, the Borrowers. Each Borrower jointly and severally
agrees to pay, and shall be jointly and severally liable for the payment and performance of, all
Obligations. Each Borrower acknowledges and agrees that the joint and several liability of the
Borrowers is provided as an inducement to the Agent and the Lenders to provide loans and other
financial accommodations to the Borrowers, and that each such loan or other financial accommodation
shall be deemed to have been done or extended by the Agent and the Lenders in consideration of, and
in reliance upon, the joint and several liability of the Borrowers. The joint and several
liability of each Borrower hereunder is absolute, unconditional and continuing, regardless of the
validity or enforceability of any of the Obligations, or the fact that a security interest or lien
in any Collateral may not be enforceable or subject to equities or defenses or prior claims in
favor of others, or may be invalid or defective in any way and for any reason. Each Borrower
hereby waives: (i) all notices to which such Borrower may be entitled as a co-obligor with respect
to the Obligations, including, without limitation, notice of (x) acceptance of this Agreement,
(y) the making of loans or other financial accommodations under this Agreement, or the creation or
existence of the Obligations, and (z) presentment, demand, protest, notice of protest and notice of
non-payment; and (ii) all defenses based on (w) any modification (or series of modifications) of
this Agreement or the other Loan Documents that may create a substituted contract, or that may
fundamentally alter the risks imposed on such Borrower hereunder, (x) the release of any other
Borrower from its duties under this Agreement or the other Loan Documents, or the extension of the
time of performance of any other Borrower’s duties hereunder or thereunder, (y) the taking,
releasing, impairment or abandonment of any Collateral, or the settlement, release or compromise of
the Obligations or any other Borrower’s or Guarantor’s liabilities with respect to all or any
portion of the Obligations, or (z) any other act (or any failure to act) that fundamentally alters
the risks imposed on such Borrower by virtue of its joint and several liability hereunder. It is
the intent of each Borrower by this paragraph to waive any and all suretyship defenses available to
such Borrower with respect to the Obligations, whether or not specifically enumerated above.

(b) Subrogation and Contribution Rights. Each Borrower hereby agrees that until the
full and final payment and satisfaction of the Obligations and the expiration and termination of
the Commitments of the Lenders under this Agreement, such Borrower will not exercise any
subrogation, contribution or other right or remedy against any other Borrower or any security for
any of the Obligations arising by reason of such Borrower’s performance or satisfaction of its
joint and several liability hereunder. In addition, each Borrower agrees that (i) such Borrower’s
right to receive any payment of amounts due with respect to such subrogation, contribution or other
rights is subordinated to the full and final payment and satisfaction of the Obligations, and
(ii) such Borrower agrees not to demand, sue for or otherwise attempt to collect any such payment
until the full and final payment and satisfaction of the Obligations and the expiration and
termination of the Commitments of the Lenders under this Agreement.

SECTION 13. Agreements Regarding the Lenders

13.1 Copies of Statements and Financial Information. The Agent shall forward to each
Lender a copy of the monthly loan account statement delivered by the Agent to the Borrowers. In
addition, the Agent agrees to provide the Lenders with copies of all financial statements,
projections and business plans of the Borrowers and the Guarantors that the Agent receives from the
Borrowers or their advisors from time to time, without any duty to confirm or verify that such
information is true, correct or complete.

13.2 Payments of Interest and Fees. After the Agent’s receipt of, or charging of, any
interest and fees earned under this Agreement, the Agent agrees to remit promptly to the Lenders
their respective Pro Rata Percentages of:

(a) fees payable by the Borrowers hereunder; provided that the Lenders shall not share
in any Documentation Fees or, except as otherwise provided, the other fees set forth in
Sections 8.7 and 8.8 of this Agreement; and

(b) interest paid on the outstanding principal amount of Revolving Loans, calculated based on
the outstanding amount of Revolving Loans advanced by each of the Lenders as of each Settlement
Date during the period for which interest is paid.

13.3 Defaulting Lender. In the event that any Lender fails to make available to the Agent
such Lender’s Pro Rata Percentage of any borrowing by the Borrowers on the Settlement Date in
accordance with the provisions of Section 3.1(d) hereof, and the Borrowers do not repay to
the Agent such Lender’s Pro Rata Percentage of the borrowing within three (3) Business Days of such
borrowing, the Agent shall have the right to recover such Lender’s Pro Rata Percentage of the
borrowing directly from such Lender, together with interest thereon from the date of the borrowing
at the rate per annum applicable to such borrowing. In addition, until the Agent recovers such
amount, (x) such Lender shall not be entitled to receive any payments under Section 13.2
hereof, and (y) for purposes of voting on or consenting to other matters with respect to this
Agreement or the other Loan Documents, such Lender’s Commitment shall be deemed to be zero and such
Lender shall not be considered to be a Lender.

13.4 Participations and Assignments.

(a) Participations. With the prior written consent of the Agent (which consent will
not unreasonably be withheld), the Lenders may sell to one or more commercial banks, commercial
finance lenders or other financial institutions, participations in the loans and other extensions
of credit made and to be made to the Borrowers hereunder. The Borrowers acknowledge that in
selling such participations, the Lenders may grant to participants certain rights to consent to
waivers, amendments and other actions with respect to this Agreement, provided that the
consent of any participant shall be limited solely to matters as to which all Lenders must consent
under Section 14.10 hereof. Except for the consent rights set forth above, no participant
shall have any rights as a Lender hereunder, and notwithstanding the sale of any participation by a
Lender, such Lender shall remain solely responsible to the other parties hereto for the performance
of such Lender’s obligations hereunder, and the Borrowers, the Agent and the other Lenders may
continue to deal solely with such Lender with respect to all matters relating to this Agreement and
the transactions contemplated hereby. In addition, all amounts payable under this Agreement to a
Lender which sells a participation in accordance with this paragraph shall continue to be paid
directly to such Lender.

(b) Assignments. With the prior written consent of the Agent and, so long as no Event
of Default has occurred and remains outstanding, the Borrowers (which consents will not
unreasonably be withheld or delayed) the Lenders may assign all or any portion of their respective
rights and obligations under this Agreement to commercial banks, commercial finance lenders or
other financial institutions; provided that the Borrowers’ consent shall not be required
for an assignment to an Eligible Assignee; and provided, further, that (i) the
principal amount of loans assigned to any institution shall not be less than $5,000,000 and
(ii) the assignor or the assignee shall pay to the Agent an assignment processing and recording fee
of One Thousand Dollars ($1,000.00) for the Agent’s own account. Each assignment of a Commitment
hereunder must be made pursuant to an Assignment and Transfer Agreement. From and after the
effective date of an Assignment and Transfer Agreement, (i) the assignee thereunder shall become a
party to this Agreement and, to the extent that rights and obligations hereunder have been assigned
to such assignee pursuant to such assignment, shall have all rights and obligations of a Lender
hereunder, and (ii) the assigning Lender, to the extent that rights and obligations hereunder have
been assigned by such Lender pursuant to such assignment, shall relinquish its rights and be
released from its obligations under this Agreement.

(c) Cooperation of the Borrowers. If necessary, the Borrowers agree to (i) execute
any documents (including new Promissory Notes) reasonably required to effectuate and acknowledge
each assignment of a Commitment made pursuant to an Assignment and Transfer Agreement, (ii) make
the Borrowers’ management available to meet with the Agent and prospective participants and
assignees of Commitments and (iii) assist the Agent or the Lenders in the preparation of
information relating to the financial affairs of the Borrowers and the Guarantors as any
prospective participant or assignee of a Commitment reasonably may request. Subject to the
provisions of Section 13.7, each Borrower authorizes each Lender to disclose to any
prospective participant or assignee of a Commitment, any and all information in such Lender’s
possession concerning the Borrowers, the Guarantors and their respective financial affairs which
has been delivered to such Lender by or on behalf of the Borrowers and the Guarantors pursuant to
this Agreement, or which has been delivered to such Lender by or on behalf of the Borrowers and the
Guarantors in connection with such Lender’s credit evaluation of the Borrowers and the Guarantors
prior to entering into this Agreement.

13.5 Sharing of Liabilities. In the event that the Agent, the Lenders or any of them is
sued or threatened with a suit, action or claim by any Borrower, any of the Guarantors, or by a
creditor, committee of creditors, trustee, receiver, liquidator, custodian, administrator or other
similar official acting for or on behalf of any Borrower or any of the Guarantors, on account of
(a) any preference, fraudulent conveyance or other voidable transfer alleged to have occurred or
been received as a result of the operation of this Agreement or the transactions contemplated
hereby, or (b) any lender liability theory based on any action taken or not taken by such Person in
connection with this Agreement or the transactions contemplated hereby, any money paid in
satisfaction or compromise of such suit, action, claim or demand, and any expenses, costs and
attorneys’ fees paid or incurred in connection therewith (whether by the Agent, the Lenders or any
of them), shall be shared proportionately by the Lenders according to their respective Pro Rata
Percentages, except to the extent that such Person’s own gross negligence or willful misconduct
directly gave rise to such suit, action or claim. In addition, any costs, expenses, fees or
disbursements incurred by agents or attorneys retained by the Agent to collect the Obligations or
enforce any rights in the Collateral, including enforcing, preserving or maintaining rights under
this Agreement, shall be shared among the Lenders according to their respective Pro Rata
Percentages to the extent not reimbursed by the Borrowers or from the Proceeds of Collateral. The
provisions of this Section 13.5 shall not apply to any suits, actions, proceedings or
claims that (a) are filed or asserted prior to the Restatement Effective Date or (b) are based on
transactions, actions or omissions occurring prior to the date of this Agreement.

13.6 Exercise of Setoff Rights. Each Borrower authorizes each Lender, and each Lender
shall have the right, after the occurrence of an Event of Default, without notice, to set-off and
apply against any and all property or assets of any Borrower or any Guarantor held by, or in the
possession of such Lender, any of the Obligations owed to such Lender in accordance with the
application priorities set forth in Section 10.4. Promptly after the exercise of any right
to set-off, the Lender exercising such right irrevocably agrees to purchase for cash (and the other
Lenders irrevocably agree to sell) participation interests in each other Lender’s outstanding
Revolving Loans as would be necessary to cause such Lender to share the amount of the property
set-off with the other Lenders based on each Lender’s Pro Rata Percentage. Each Borrower agrees,
to the fullest extent permitted by law, that any Lender also may exercise its right to set-off with
respect to amounts in excess of such Lender’s Pro Rata Percentage of the Obligations then
outstanding, and may purchase participation interests in the amounts so set-off from the other
Lenders, and upon doing so shall deliver such excess to Agent, for distribution to the other
Lenders in settlement of the participation purchases described above in this Section 13.6.
Notwithstanding the foregoing, each Lender hereby agrees with each other Lender that no Lender
shall independently take any action to enforce or protect its rights arising out of this Agreement
or any other Loan Document (including the exercise of any right of set-off) without first obtaining
the prior written consent of the Agent or the Required Lenders, it being the intent of the Lenders
that any such action shall be taken in concert and at the direction of the Agent or the Required
Lenders.

13.7 Confidentiality. For the purposes of this Section 13.7, “Confidential
Information” means all financial projections and all other information delivered to the Agent
or any Lender by or on behalf of a Borrower or any of the Guarantors in connection with the
transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature
and that is clearly marked or labeled (or otherwise adequately identified) as being confidential
information of the Borrowers or the Guarantors, provided that such term does not include
information that (a) was publicly known or otherwise known to the Agent or any of the Lenders prior
to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission
by the Agent or the Lenders or any Person acting on their behalf, (c) otherwise becomes known to
the Agent or the Lenders other than through disclosure by, or on behalf of, a Borrower or any of
the Guarantors or (d) constitutes financial statements delivered under Section 7.2(h) that
are otherwise publicly available. The Agent and the Lenders will maintain the confidentiality of
such Confidential Information in accordance with commercially reasonable procedures adopted by the
Agent and the Lenders in good faith to protect confidential information of third parties delivered
to them, provided that the Agent and the Lenders may deliver or disclose Confidential
Information to:

(a) their respective directors, officers, employees, agents, attorneys and affiliates (to the
extent such disclosure reasonably relates to the administration of the Line of Credit);

(b) their respective financial advisors and other professional advisors who are advised to
hold confidential the Confidential Information substantially in accordance with the terms of this
Section 13.7;

(c) any other Lender;

(d) a commercial bank, commercial finance lender or other financial institution to which the
Agent or a Lender sells or offers to sell a portion of their rights and obligations under this
Agreement or any participation therein, provided that so long as no Event of Default shall
have occurred and remain outstanding, such entity agrees in writing prior to their receipt of such
Confidential Information to be bound by the provisions of this Section 13.7; or

(e) any other Person (including bank auditors and other regulatory officials) to which such
delivery or disclosure may be necessary or appropriate (i) to comply with any applicable law, rule,
regulation or order, (ii) in response to any subpoena or other legal process, (iii) in connection
with any litigation to which the Agent or a Lender is a party or (iv) if an Event of Default shall
have occurred and remain outstanding, to the extent the Agent may reasonably determine such
delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of
the rights and remedies under this Agreement.

Each New Lender and each Lender becoming a Lender subsequent to the initial execution and delivery
of this Agreement, by its execution and delivery of an Assignment and Transfer Agreement or by its
otherwise becoming a party to this Agreement, will be deemed to have agreed to be bound by, and to
be entitled to the benefits of, this Section 13.7.

SECTION 14. Agency

14.1 Appointment of Agent; Powers. Each Lender hereby irrevocably designates and appoints
CIT to act as the Agent for such Lender under this Agreement and the other Loan Documents, and
irrevocably authorizes CIT, as Agent for such Lender, to take such action on its behalf under the
provisions of this Agreement and the other Loan Documents, and to exercise such powers and perform
such duties as are expressly delegated to the Agent by the terms of this Agreement and the other
Loan Documents, together with such other powers as are reasonably incidental thereto. In
performing its functions under this Agreement, the Agent is acting solely as an agent of the
Lenders, and the Agent does not assume, and shall not be deemed to have assumed, an agency or other
fiduciary relationship with any Borrower or any Lender. The Agent shall not have any (a) duty,
responsibility, obligation or liability to any Lender, except for those duties, responsibilities,
obligations and liabilities expressly set forth in this Agreement, or (b) fiduciary relationship
with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or the other Loan Documents, or otherwise exist
against the Agent. No Lender that also is designated as a “Lead Arranger”, a “Documentation Agent”
or a “Syndication Agent” hereunder shall have any right, power, duty, responsibility, obligation or
liability under this Agreement, except for the duties, responsibilities, obligations and
liabilities of a Lender hereunder.

14.2 Delegation of Agent’s Duties. The Agent may execute any of its duties under this
Agreement and all ancillary documents by or through agents or attorneys, and shall be entitled to
the advice of counsel concerning all matters pertaining to such duties.

14.3 Disclaimer of Agent’s Liabilities. Neither the Agent nor any of its officers,
directors, employees, agents, or attorneys shall be liable to any Lender for any action lawfully
taken or not taken by the Agent or such Person under or in connection with the Agreement and the
other Loan Documents (except for the Agent’s or such Person’s gross negligence or willful
misconduct). Without limiting the generality of the foregoing, the Agent shall not be liable to
the Lenders for (i) any recital, statement, representation or warranty made by the Borrowers or the
Guarantors or any officer thereof contained in (x) this Agreement, (y) any other Loan Document or
(z) any certificate, report, audit, statement or other document referred to or provided for in this
Agreement or received by the Agent under or in connection with this Agreement, (ii) the value,
validity, effectiveness, enforceability or sufficiency of this Agreement, the other Loan Documents
or the Agent’s security interests in the Collateral, (iii) any failure of the Borrowers or the
Guarantors to perform their respective obligations under this Agreement and the other Loan
Documents, (iv) any loss or depreciation in the value of, delay in collecting the Proceeds of, or
failure to realize on, any Collateral, (v) the Agent’s delay in the collection of the Obligations
or enforcing the Agent’s rights against the Borrowers or the Guarantors, or the granting of
indulgences or extensions to a Borrower, any of the Guarantors or any account debtor of a Borrower,
or (vi) any mistake, omission or error in judgment in passing upon or accepting any Collateral. In
addition, the Agent shall have no duty or responsibility to ascertain or to inquire as to the
observance or performance of any of the terms, conditions, covenants or other agreements of the
Borrowers or the Guarantors contained in this Agreement or the other Loan Documents, or to inspect,
verify, examine or audit the assets, books or records of the Borrowers or the Guarantors at any
time.

14.4 Reliance and Action by Agent. The Agent shall be entitled to rely, and shall be fully
protected in relying, upon legal counsel, independent public accountants and experts selected by
Agent, and shall not be liable to the Lenders for any action taken or not taken in good faith based
upon the advice of such counsel, accountants or experts. In addition, the Agent shall be entitled
to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or
other document believed by the Agent in good faith to be genuine and correct, and to have been
signed, sent or made by the proper Person or Persons. The Agent shall be fully justified in taking
or refusing to take any action under this Agreement and the other Loan Documents unless the Agent
(a) receives the advice or consent of the Lenders or the Required Lenders, as the case may be, in a
manner that the Agent deems appropriate, or (b) is indemnified by the Lenders to the Agent’s
satisfaction against any and all liability, cost and expense which may be incurred by the Agent by
reason of taking or refusing to take any such action. The Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement and the other Loan
Documents in accordance with a request of all Lenders or the Required Lenders, as the case may be,
and such request and any action taken or failure to act pursuant thereto shall be binding upon all
Lenders.

14.5 Events of Default. The Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless the Agent has received notice from a
Borrower or a Lender describing such Default or Event of Default with specificity. In the event
that the Agent receives such a notice, the Agent shall promptly give notice thereof to all Lenders.
The Agent shall take such action with respect to such Default or Event of Default as shall be
reasonably directed by the Lenders or Required Lenders, as the case may be, provided that
(a) if appropriate, the Agent may require indemnification from the Lenders under
Section 14.4 prior to taking such action, (b) under no circumstances shall the Agent have
an obligation to take any action that the Agent believes in good faith would violate any law or any
provision of this Agreement or the other Loan Documents, and (c) unless and until the Agent shall
have received direction from the Lenders or Required Lenders, as the case may be, the Agent may
(but shall not be obligated to) take such action or refrain from taking action with respect to such
Default or Event of Default as the Agent shall deem advisable and in the best interests of the
Lenders.

14.6 Lenders’ Due Diligence. Each Lender expressly acknowledges that neither the Agent,
nor any of its officers, directors, employees or agents, has made any representation or warranty to
such Lender regarding the transactions contemplated by this Agreement or the financial condition of
the Borrowers or the Guarantors, and such Lender agrees that no action taken by the Agent
hereafter, including any review of the business or financial affairs of the Borrowers or the
Guarantors, shall be deemed to constitute a representation or warranty by the Agent to any Lender.
Each Lender also acknowledges that such Lender has, independently and without reliance upon the
Agent or any other Lender and based on such documents and information as such Lender has deemed
appropriate, made its own credit analysis, appraisal of and investigation into the business,
operations, property, financial condition and creditworthiness of the Borrowers and the Guarantors,
and made its own decision to enter into this Agreement. Each Lender agrees, independently and
without reliance upon the Agent or any other Lender and based on such documents and information as
such Lender shall deem appropriate at the time, (a) to continue to make its own credit analyses and
appraisals in deciding whether to take or not take action under this Agreement and (b) to make such
investigations as such Lender deems necessary to inform itself as to the business, operations,
property, financial condition and creditworthiness of the Borrowers and the Guarantors.

14.7 Right to Indemnification. The Lenders agree to indemnify, in accordance with their
respective Pro Rata Percentages, the Agent (to the extent not reimbursed by the Borrowers and
without limiting the obligation of the Borrowers to do so), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time be imposed on, incurred by or asserted
against the Agent in any way relating to or arising out of (a) this Agreement or any other Loan
Document, (b) the transactions contemplated hereby or (c) any action taken or not taken by the
Agent under or in connection with any of the foregoing, provided that no Lender shall be
liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting solely from the Agent’s gross
negligence or willful misconduct.

14.8 Other Transactions. The Agent and any Lender may make loans to and generally engage
in any kind of business with the Borrowers, as though the Agent or such Lender were not the Agent
or a Lender hereunder. With respect to loans made by the Agent under this Agreement as a Lender,
the Agent shall have the same rights and powers, duties and liabilities under this Agreement and
the other Loan Documents as any other Lender, and may exercise the same as though it was not the
Agent, and the term “Lender” and “Lenders” shall include the Agent in its individual capacity as
such.

14.9 Resignation of Agent. The Agent may resign as the Agent upon 30 days notice to the
Lenders, and such resignation shall be effective on the earlier of (a) the appointment of a
successor Agent by the Lenders or (b) the date on which such 30-day period expires. If the Agent
provides the Lenders with notice of its intention to resign as Agent, the Lenders agree to appoint
a successor to the Agent as promptly as possible thereafter, whereupon such successor shall succeed
to the rights, powers and duties of the Agent, and the term “Agent” shall mean such successor
effective upon its appointment. Upon the effective date of an Agent’s resignation, such Agent’s
rights, powers and duties as Agent hereunder immediately shall terminate, without any other or
further act or deed on the part of such former Agent or any of the parties to this Agreement.
After an Agent’s resignation hereunder, the provisions of this Section 14 shall continue to
inure to such Agent’s benefit as to any actions taken or not taken by such Agent while acting as
the Agent. If CIT voluntarily resigns as Agent, on the effective date of such resignation CIT
shall pay to the successor Agent a portion of the agent fee paid to CIT pursuant to the Fee Letter
in respect of the then current one year period in an amount equal to (y) the amount of such agent
fee received by CIT times (z) the result of (i) the total number of days remaining in the then
current one year period for which such agent fee was paid divided by (ii) 365.

14.10 Voting Rights; Agent’s Discretionary Rights. Notwithstanding anything contained in
this Agreement to the contrary, without the prior written consent of all Lenders, the Agent will
not agree to:

(a) amend or waive the Borrowers’ compliance with any term or provision of this Agreement, if
the effect of such amendment or waiver would be to (i) increase the Line of Credit, (ii) reduce the
principal of, or rate of interest on, the Revolving Loans, (iii) reduce or waive the payment of any
fee in which all Lenders share hereunder or (iv) extend the maturity date of any of the Obligations
or the date fixed for payment of any installment thereof;

(b) alter or amend (i) this Section 14.10 or (ii) the definitions of “Net
Availability", "Availability Reserve”, “Excess Availability”, “Eligible
Accounts Receivable”, “Eligible Inventory” “Collateral” or “Required
Lenders”;

(c) amend the definition of “Borrowing Base”, or modify the Agent’s criteria for
determining compliance with the definitions of “Eligible Accounts Receivable” or
"Eligible Inventory”, if the effect thereof would be to increase Net Availability;

(d) except as otherwise expressly permitted or required hereunder, release any Collateral
having a value (as determined by the Agent in its reasonable business judgment) of more than
$1,000,000 in any fiscal year of Skechers; or

(e) knowingly make any Revolving Loan to the Borrowers if after giving effect thereto the
principal amount of all outstanding Revolving Loans plus the undrawn amount of all
outstanding Letters of Credit would exceed the lesser of (i) the Line of Credit or (ii) one hundred
ten percent (110%) of the Borrowing Base of the Borrowers; provided that in no event shall
the Agent continue to knowingly make Overadvances under this Section 14.10(e) for a period
in excess of ninety (90) consecutive days without the consent of all Lenders; and provided
further that after the occurrence of an Event of Default, the Agent in its sole discretion
shall have the right to make Overadvances in order to preserve, protect and realize upon the
Collateral, which Overadvances shall be subject to the limitations set forth in clauses (i) and
(ii) above but shall not be subject to the “clean-up” after ninety (90) days requirement set forth
above.

In all other respects the Agent is authorized to take or to refrain from taking any action
which the Agent, in the exercise of its reasonable business judgment, deems to be advisable and in
the best interest of the Lenders, unless this Agreement specifically requires the Borrowers or the
Agent to obtain the consent of, or act at the direction of, the Required Lenders. Without limiting
the generality of the foregoing sentence, and notwithstanding any other provision of this Agreement
to the contrary, the Agent shall have the right in its sole discretion to (i) determine whether the
requirements for eligibility set forth in the definitions of “Eligible Accounts Receivable”
and “Eligible Inventory” are satisfied, (ii) establish, adjust and release the amount of
reserves provided for in the definitions of “Availability Reserve”, “Eligible Accounts
Receivable” and “Eligible Inventory”, (iii) make Overadvances in accordance with clause
(e) of this Section 14.10, (iv) release any Collateral having a value (as determined by the
Agent in its reasonable business judgment) of up to $1,000,000 in each fiscal year of Skechers, and
(v) amend any provision of this Agreement or the other Loan Documents in order to cure any error,
ambiguity, defect or inconsistency set forth therein. In the event the Agent terminates this
Agreement pursuant to the terms hereof, the Agent agrees to cease making additional loans or
advances upon the effective date of termination, except for loans or advances which the Agent in
its sole discretion determines are reasonably required to preserve, protect or realize upon the
Collateral.

14.11 Deemed Consent. If a Lender’s consent to a waiver, amendment or other course of
action is required under the terms of this Agreement and such Lender does not respond to any
request by the Agent for such consent within ten (10) Business Days after the date of such request,
such failure to respond shall be deemed a consent to the requested course of action.

14.12 Notice of Termination of Commitment. Each Lender agrees that notwithstanding the
provisions of Section 11 of this Agreement, such Lender, acting alone, may terminate its Commitment
only as of the initial or any subsequent Termination Date, and then only by giving the Agent ninety
(90) days prior written notice thereof. Within 30 days after receipt of such termination notice,
the Agent at its option agrees to either (a) give notice of termination of this Agreement and the
Line of Credit to the Borrowers hereunder, or (b) purchase such Lender’s entire Commitment
hereunder for the full amount thereof as of the date of such purchase, plus accrued interest to the
date of such purchase.

14.13 Survival of Agreements of the Lenders. The obligations of the Lenders set forth in
Sections 13.3, 13.5, 13.6, 13.7, 14.4 and 14.7
hereof shall survive the termination of this Agreement.

3

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, accepted and
delivered at Los Angeles, California, by their respective duly authorized officers as of the date
set forth above.

	 	 	 
	 	 	THE CIT GROUP/COMMERCIAL SERVICES,
	SKECHERS U.S.A., INC.

By: /s/ Fred H. Schneider

	 	INC., as Agent and a Lender

By: /s/ Darrin Baer
	 

	 	 
	Name: Fred H. Schneider

Title: Chief Financial Officer

	 	Name: Darrin Baer

Title: V.P.
	 
	 	 
	SKECHERS U.S.A., INC. II

By: /s/ David Weinberg

	 	WACHOVIA CAPITAL FINANCE CORPORATION

(WESTERN), as a Lender

By: /s/ Gary Whitaker
	 

	 	 
	Name: David Weinberg

Title: Chief Operating Officer

	 	Name: Gary Whitaker

Title: Director
	 
	 	 
	SKECHERS BY MAIL, INC.

By: /s/ David Weinberg

	 	BANK OF AMERICA, N.A., as a Lender

By: /s/ Stephen King
	 

	 	 
	Name: David Weinberg

Title: Chief Operating Officer

	 	Name: Stephen King

Title: Vice President
	 
	 	 
	310 GLOBAL BRANDS, INC.

By: /s/ John Quinn

	 	

	 

	 	

	Name: John Quinn

Title: Chief Executive Officer

	 	

	 
	 	 

4

EXHIBIT A

FORM OF ASSIGNMENT AND TRANSFER AGREEMENT

ASSIGNMENT AND TRANSFER AGREEMENT

Reference is made to the Second Amended and Restated Loan and Security Agreement dated as of
May 31, 2006 (as amended, restated supplemented or otherwise modified and in effect from time to
time, the “Loan Agreement”) among Skechers U.S.A., Inc., a Delaware corporation
(“Skechers”), Skechers U.S.A., Inc. II, a Delaware corporation (“Skechers II”),
Skechers By Mail, Inc., a Delaware corporation (“Skechers By Mail”), and 310 Global Brands,
Inc., a Delaware corporation (“310”, and together with Skechers, Skechers II and Skechers
By Mail individually a “Borrower” and collectively and jointly and severally, the
"Borrowers”), the financial institutions from time to time party thereto, as lenders
(collectively, the “Lenders”, and individually, each a “Lender”), and The CIT
Group/Commercial Services, Inc, a New York corporation, as agent for the Lenders (in such capacity,
the “Agent”). Capitalized terms used in this Assignment and Transfer Agreement (this
"Agreement”) and not otherwise defined shall have the meanings given to such terms in the
Loan Agreement. This Agreement, between the Assignor (as defined and set forth on
Schedule 1, which is made a part of this Agreement) and the Assignee (as defined and set
forth on Schedule 1) is effective as of Effective Date (as set forth on
Schedule 1).

1. The Assignor hereby irrevocably sells and assigns to the Assignee, without recourse to the
Assignor, and the Assignee hereby irrevocably purchases and assumes from the Assignor, without
recourse to the Assignor, as of the Effective Date, an undivided interest (the "Assigned
Interest”) in and to all of the Assignor’s rights and obligations under the Loan Agreement
respecting those, and only those, portions of the financing facilities contained in the Loan
Agreement as are set forth on Schedule 1 (collectively, the “Assigned Facilities”),
in an amount for each of the Assigned Facilities as set forth on Schedule 1.

2. The Assignor: (i) makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with the Loan
Agreement or any other instrument, document or agreement executed or delivered in connection
therewith (collectively the “Loan Documents”), or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Agreement, any Collateral thereunder
or any of the other Loan Documents, other than a representation and warranty that the Assignor is
the legal and beneficial owner of the Assigned Interest and that the Assigned Interest is free and
clear of any adverse claim; and (ii) makes no representation or warranty and assumes no
responsibility with respect to (x) the financial condition of any Borrower or any Guarantor, or
(y) the performance or observance by any Borrower or any Guarantor of any of their respective
obligations under the Loan Agreement or any of the Loan Documents.

3. The Assignee (i) represents and warrants that it is legally authorized to enter into this
Agreement, (ii) confirms that it has received a copy of the Loan Agreement as amended through the
Effective Date, together with the copies of the most recent financial statements of the Borrowers,
and such other documents and information as the Assignee has deemed appropriate to make its own
credit analysis, (iii) agrees that the Assignee will, independently and without reliance upon the
Agent, the Assignor or any other Lender and based on such documents and information as the Assignee
shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under the Loan Agreement, (iv) appoints and authorizes the Agent to take such action
as agent on the Assignee’s behalf and to exercise such powers under the Loan Agreement as are
delegated to the Agent by the terms thereof, together with such powers as are reasonably incidental
thereto, (v) agrees that the Assignee will be bound by the provisions of the Loan Agreement and
will perform in accordance with its terms all the obligations which by the terms of the Loan
Agreement are required to be performed by it as Lender, and (vi) if the Assignee is organized under
the laws of a jurisdiction outside the United States, attaches the forms prescribed by the IRS
certifying as to the Assignee’s exemption from United States withholding taxes with respect to all
payments to be made to the Assignee under the Loan Agreement or such other documents as are
necessary to indicate that all such payments are subject to such tax at a rate reduced by an
applicable tax treaty.

4. Following the execution of this Agreement, such agreement will be delivered to the Agent
for acceptance by the Agent, effective as of the Effective Date.

5. Upon such acceptance, from and after the Effective Date, the Agent shall make all payments
in respect of the Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignee, whether such amounts have accrued prior to the Effective Date or accrue
subsequent to the Effective Date. The Assignor and the Assignee shall make all other appropriate
adjustments in payments for periods prior to the Effective Date made by the Agent or with respect
to the making of this assignment directly between themselves.

6. From and after the Effective Date, (i) the Assignee shall be a party to the Loan Agreement
and, to the extent provided in this Agreement, have the rights and obligations of a Lender
thereunder, and (ii) the Assignor shall, to the extent provided in this Agreement, relinquish its
rights and be released from its obligations under the Loan Agreement.

7. THIS ASSIGNMENT AND TRANSFER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective duly authorized officers on Schedule 1 hereto.

5

Schedule 1 to Assignment and Transfer Agreement

	 	 	 
	Name of Assignor:__________________________

	 
	 	 
	Name of Assignee:__________________________

	 
	 	 
	Effective Date of Assignment:

	 	     , 200     

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Dollar Amount
	Assigned Facilities	 	Percentage of Facilities Assigned	 	Assigned
	Line of Credit
	 	 	%	 	 	$	 	 

	 	 	 	 	 
	ASSIGNOR:	 	ASSIGNEE:
	By:	 	By:
	Its:	 	Its:

Accepted by the Agent:

THE CIT GROUP/COMMERCIAL SERVICES,

INC., as Agent

	 	 	 	 	 
	By:
	 	 	—	 
	Its:
	 	 	—	 

6

Accepted by the Borrowers [if necessary]:

SKECHERS U.S.A., INC.

	 	 	 	 	 
	By:
	 	 	—	 
	Its:
	 	 	—	 

SKECHERS U.S.A., INC. II

	 	 	 	 	 
	By:
	 	 	—	 
	Its:
	 	 	—	 

SKECHERS BY MAIL, INC.

	 	 	 	 	 
	By:
	 	 	—	 
	Its:
	 	 	—	 

310 GLOBAL BRANDS, INC.

	 	 	 	 	 
	By:
	 	 	—	 
	Its:
	 	 	—	 

7

EXHIBIT B

FORM OF REVOLVING LOAN PROMISSORY NOTE

	 	 	 
	$     

	 	May 31, 2006

Los Angeles, California

FOR VALUE RECEIVED, the undersigned, Skechers U.S.A., Inc., a Delaware corporation
(“Skechers”), Skechers U.S.A., Inc. II, a Delaware corporation (“Skechers II”),
Skechers By Mail, Inc., a Delaware corporation (“Skechers By Mail”), and 310 Global Brands,
Inc., a Delaware corporation (“310”, and together with Skechers, Skechers II and Skechers
By Mail individually a “Borrower” and collectively and jointly and severally, the
"Borrowers”), absolutely and unconditionally, jointly and severally, promise to pay to the
order of      (“Lender”), at Lender’s office located at      , in
lawful money of the United States of America and in immediately available funds, the principal
amount of       Dollars ($ .00), or such lesser amount as may be advanced to the
Borrowers by Lender as Revolving Loans under the Loan Agreement (as defined below) and remain
unpaid, on the Termination Date.

The Borrowers, absolutely and unconditionally, jointly and severally, further agree to pay
interest at said office, in like money, on the unpaid principal amount of Revolving Loans
outstanding from time to time on the dates and at the rates specified in Section 8 of the
Second Amended and Restated Loan and Security Agreement of even date herewith among the Borrowers,
the Lenders that are parties thereto and The CIT Group/Commercial Services, Inc., as Agent for the
Lenders (the “Loan Agreement”). Capitalized terms used in this Note and defined in the
Loan Agreement shall have the meanings given to such terms in the Loan Agreement unless otherwise
specifically defined herein.

This Note is a Promissory Note referred to in the Loan Agreement, evidences the Revolving
Loans made to the Borrowers by Lender thereunder, and is subject to, and entitled to, all
provisions and benefits thereof, including optional and mandatory prepayment, in whole or in part,
as provided therein.

8

Notwithstanding any other provision of this Note to the contrary, upon the occurrence of any
Event of Default specified in the Loan Agreement, or upon termination of the Loan Agreement for any
reason, all amounts then remaining unpaid on this Note may become, or be declared to be, at the
sole election of Agent or the Required Lenders, immediately due and payable as provided in the Loan
Agreement.

SKECHERS U.S.A., INC.

By:      

Name:

Title:

SKECHERS U.S.A., INC. II

By:      

Name:

Title:

SKECHERS BY MAIL, INC.

By:      

Name:

Title:

310 GLOBAL BRANDS, INC.

By:      

Name:

Title:

9

EXHIBIT C

COMPLIANCE CERTIFICATE

[Date]

The CIT Group/Commercial Services, Inc.

300 South Grand Avenue

Los Angeles, California 90071

	 	 	 	RE: Second Amended and Restated Loan and Security Agreement dated as of May 31,
2006 (the “Loan Agreement”) among Skechers U.S.A., Inc. (“Skechers”), Skechers
U.S.A., Inc. II (“Skechers II”), Skechers By Mail, Inc. (“Skechers By
Mail”), and 310 Global Brands, Inc. (“310”, and together with Skechers,
Skechers II and Skechers By Mail individually a “Borrower” and collectively and
jointly and severally, the “Borrowers”), The CIT Group/Commercial Services,
Inc., as Agent (the “Agent”), and the Lenders that are parties thereto (collectively,
the “Lenders”)

Ladies and Gentlemen:

Reference is made to the Loan Agreement. Capitalized terms used herein and not specifically
defined shall have the meanings given to such terms in the Loan Agreement.

Pursuant to Section 7.2(h) of the Loan Agreement, I enclose Skechers’ financial statements
for the month ended      , 200     (the “Reporting Month”) and the fiscal year-to-date
period ended      , 200     . As the      of the Funds Admnistrator, I hereby certify to the
Agent and the Lenders, on behalf of the Borrowers, that: (a) the financial statement(s) fairly and
accurately present the Borrowers’ financial condition at the end of the particular accounting
periods covered by such financial statements, as well as the Borrowers’ operating results during
such accounting periods, subject to year-end audit adjustments; (b) during the Reporting Month,
(i) to my knowledge, there has occurred no Default or Event of Default under the Loan Agreement,
or, if I have knowledge that any Default or Event of Default has occurred during such period, a
detailed description thereof is set forth on Exhibit      attached hereto, and (ii) the Borrowers
have not received any notice of cancellation with respect to their property insurance policies; and
(c) Exhibit      attached hereto sets forth detailed calculations showing compliance with all
financial covenants contained in the Loan Agreement, for the periods of measurement covered by or
ending on the last day of the Reporting Month.

Very truly yours,

[attach appropriate exhibits]

10

EXHIBIT D

LENDER’S LOSS PAYABLE ENDORSEMENT

[LOGO]

Fireman’s Fund

	 	 	 	 	 
	POLICY NUMBER

	 	S 17 MXX 8084 66 91
	 	

	 
	 	 	 	 
	Named Insured

	 	 	 	Sequential Endorsement Number 001

SKECHERS USA, INC

PORTFOLIO CHANGE ENDORSEMENT

Effective 04/26/06, 12:01 A.M.,

Standard Time at the address of the insured

This is an Endorsement only. Other than changes shown, all other pre-existing coverage remains in
full force and effect. Premium adjustments are shown.

PREMIUM SUMMARY: ADDITIONAL PREMIUM DUE NOW $0.00

	 	 	 	 	 
	Terrorism Risk Insurance Act- Certified Acts Coverage –

	All Coverages excl WC – Not Covered $0.00
	 	 	 	 
	THE FOLLOWING OTHER PROPERTY ENDORSEMENTS ARE AMENDED TO APPLY AS SHOWN:

	190014
	 	Property-Gard Select Endorsement – Loss Payable Provisions 190014 05 94

	 
	 	Commerical Property Coverage

     

This endorsement modifies insurance provided under the Property-Gard Select Real and
Personal Property Coverage Section.

Schedule

	 	 	 	 	 	 	 	 	 
	Loc.No.(s)

	 	Description of Property
	 	Loss Payee
	 	Provisions
	 	

Applicable

(A., B., or C.

below)
	 
	 	 	 	 	 	 	 	 
	VARIOUS

	 	PERSONAL PROPERTY
	 	THE CIT GROUP/
	 	B
	 	

COMMERCIAL SERVICES, INC

AS AGENT FOR CERTAIN

LENDERS

300 SOUTH GRAND AVENUE

LOS ANGELES, CA 90071

ATTEN: DARRIN BEER

A. – LOSS PAYABLE B. – LENDER’S LOSS PAYABLE C. – CONTRACT OF SALE

IT IS AGREED THAT AS RESPECTS THE INTEREST OF THE CIT GROUP AS LENDER REGARDING PERSONAL
PROPERTY AT LOCATIONS DESCRIBED IN THE LOAN DOCUMENTS THAT THE NUMBER OF DAYS APPEARING IN
PARAGRAPH B.4. IS AMENDED FROM 10

	 	 	 	 	 	 	 
	Countersignature of Authorized Agent:
	 	 	 	Dated 05/11/06
	 
	 	 	 	 	 	 
	Producer

	 	ACORDIA OF CAL INS SERV INC
	 	

	 	

	 
	 	 	 	 	 	 
	 	 	15303 VENTURA BLVD., 7TH FLOOR
	 	 
	 
	 	 	 	 	 	 
	
 
	 	SHERMAN OAKS
	 	CA 91403
	 	

CHANGE ENDORSEMENT CONTINUED ON PAGE 2

Page 1

11

POLICY NUMBER S 17 MXX 8084 66 91

	 	 	 
	Named Insured

SKECHERS USA, INC

	 	Sequential Endorsement Number 001 (continued)

	 
	 	 
	190014

	 	Property-Gard Select Endorsement – Loss Payable Provisions

190014 05 94

Commercial Property Coverage
	 
	 	 
	
 
	 	DAYS TO 30 DAYS.

END OF CHANGE ENDORSEMENT

Page 2

12

Property-Gard Select Endorsement – Loss Payable Provisions 190014 05 94

Policy Amendment(s) Commerical Property Coverage

	 	 	 
	Insured: Skechers USA, Inc.

	 	Policy Number: MXX80846691
	 
	 	 
	Producer: Acordia of California

	 	Effective Date: September 1, 2005

This endorsement modifies insurance provided under the Property-Gard Select Real and Personal
Property Coverage Section.

Schedule

	 	 	 	 	 	 	 
	Loc. No.(s)

	 	Description of Property
	 	Loss Payee
	 	Provisions Applicable

(A., B., C. below)

(If no entry appears above, information required to complete this Endorsement will be shown in the
Declarations as applicable to this Endorsement.)

The following is added to the Loss Payment Provision, of the Property-Gard Select Loss Conditions
Form, as indicated in the Declarations or in the above Schedule:

	 	A.	 	Loss Payable

For covered property in which both you and a Loss Payee shown in the above Schedule or
in the Declarations have an insurable interest, we will adjust losses with you and pay
any claim for loss or damage jointly to you and the Loss Payee, as interests may appear.

This Form must be attached to Change Endorsement when issued after the policy is written. One of
the Fireman’s Fund Insurance Companies as named in the policy

	 	 	 	 	 	 	 
	/s/

	 	ILLEGIBLE
	 	/s/
	 	ILLEGIBLE
	 

	 	 
	 	 
	 	 
	Secretary

	 	 	 	 	 	President

Page 1 of 2

13

	 	B.	 	Lenders’ Loss Payable

	 	1.	 	The Loss Payee shown in the above Schedule or in the Declarations is a
creditor, including a mortageholder or trustee, whose interest in covered property
is established by such written instruments as warehouse receipts, a contract for
deed, bills of lading, financing statements or mortgages, deeds of trust or
security agreements.

	 	2.	 	For covered property in which you and a Loss Payee have an insurable
interest:

	 	a.	 	We will pay for covered loss or damage to
each Loss Payee in their order of precedence, as interests may
appear.

	 	b.	 	The Loss Payee has the right to receive
loss payment even if the Loss Payee has started foreclosure or
similar action on the covered property.

	 	c.	 	If we deny your claim because of your
acts or because you have failed to comply with the terms of the
Coverage Section, the Loss Payee will still have the right to
receive loss payment if the Loss Payee:

	 	(1)	 	Pays
any premium due under this Coverage Section at our
request if you have failed to do so;

	 	 	 	(2)
Submits a signed, sworn proof of loss within 60
days after receiving notice from us of your
failure to do so; and

	 	(3)	 	Has
notified us of any change in ownership, occupancy
or substantial change in risk known to the Loss
Payee.

All other terms of this coverage Section will apply directly to the Loss
Payee.

	 	d.	 	If we pay the Loss Payee for any loss or
damage or deny payment to you because of your acts or because you
have failed to comply with the terms of this Coverage Section:

	 	(1)	 	The
Loss Payee’s rights will be transferred to us to
the extent of the amount of the amount we pay; and

	 	(2)	 	The
Loss Payee’s rights to recover the full amount of
the Loss Payee’s claim will not be impaired.

At our option, we may pay to the Loss Payee the whole principal on the
debt plus any accrued interest. In the event, you will pay your
remaining debt to us.

	 	3.	 	If we cancel this policy, we will give written notice to the Loss Payee
at least 10 days before the effective date of cancellation if we cancel for your
nonpayment of premium or 30 days before the effective date of cancellation if we
cancel for any other reason.

	 	4.	 	If we elect not to renew this policy, we will give written notice to
the Loss Payee at least 10 days before the expiration date of this policy

	 	C.	 	Contract of Sale

	 	1.	 	The Loss Payee shown in the Schedule or in the Declarations is a person
or organization you have entered a contact with for the sale of covered property.

	 	2.	 	For covered property in which both of you and the Loss Payee have an
insurable interest, we will adjust losses with you and pay any claim for loss or
damage jointly to you and the Loss Payee, as interest may appear.

Page 2 of 2

14

Schedule 1.1(a) - Existing Indebtedness

Debenture Obligations

	 	 	 	 	 
	Convertible Subordinated Notes	 	$90,000,000.00
	Long Term Debt	 	 
	Washington Mutual	 	$9,952,511.00
	Money Life Ins.	 	$7,393,533.00
	Capital Lease Obligations	 	 	 	 
	SG Equipment Finance Benelux
	 	$	669,803.00	 
	Raymond Leasing Corp.
	 	$	71,974.00	 

15

Schedule 6.7 – Copyrights, Patents and Trademarks

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 

16

	 	 	 	 	 
	 
	 	 	 	 
	DISPERSED-AIR FOOTPAD

	 	09/480,065

01/10/2000
	 	6,178,662

01/30/2001
	 

	 	 
	 	 
	 
	 	 	 	 
	MOTION SENSITIVE SWITCH (Type II)

	 	10/288,674

11/05/2002
	 	6,788,201

09/07/2004
	 

	 	 
	 	 
	 
	 	 	 	 
	DISPERSED-AIR FOOTPAD

	 	29/108,453

07/27/1999
	 	D 427,422 S

07/04/2000
	 

	 	 
	 	 
	 
	 	 	 	 
	ROLLER SKATE CHASSIS (With single

wheel in the rear)

	 	29/176,370

02/21/2003
	 	D 482,750 S

11/25/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE DESIGN (Quarter brace)

	 	29/152,524

12/21/2001
	 	D 465,910 S

11/26/2002
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM HEEL PORTION (Truss cradle)

	 	11/198,944

08/04/2005
	 	

N/A
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE VENTILATION SYSTEM

	 	11/223,696

09/08/2005
	 	

N/A
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE LACING DEVICE

	 	N/A
	 	N/A
	 

	 	 	 	 
	 
	 	 	 	 
	ORNAMENT (Lighted, for shoe)

	 	29/223,010

02/07/2005
	 	

N/A
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Dreamers)

	 	29/084,529

03/04/1998
	 	D 402,446 S

12/15/1998
	 

	 	 
	 	 
	 
	 	 	 	 
	ORNAMENTAL DESIGN FOR SHOES (Two

Stripes) Style #1413

	 	29/167,208

09/10/2002
	 	D478,415 S

08/19/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Double-Sided Serrated

Trim) Style #1423

	 	29/163,577

07/08/2002
	 	D470,651 S

02/25/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Double-Sided Serrated

Trim) Style #1423

	 	29/171,347

11/21/2002
	 	D472,042 S

03/25/2003
	
 
	 	 
	 	 
	 
	 	 	 	 

17

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	SHOE UPPER (Style #1508)

	 	29/173,576

01/02/2003
	 	D 474,008 S

05/06/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #28882 Shark Tooth)

	 	29/216,171

10/29/2004
	 	

N/A
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Premium Energy) (Style #1728)

	 	29/183,758

08/12/2003
	 	D 485,051 S

01/13/2004
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER STAMINA (Style #1786)

	 	29/184,016

08/22/2003
	 	D 485,427 S

01/20/2004
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM STAMINA (Style #1786)

	 	29/184,018

08/26/2003
	 	D 487,617 S

03/23/2004
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (4 Wheelers Upper) (Style #1826)

	 	29/155,159

02/04/2002
	 	D 468,897 S

01/21/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #1845) (Energy 3)

	 	29/161,721

06/03/2002
	 	D 467,714 S

12/31/2002
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE TONGUE Divisional of SHOE UPPER

(Style #1845)(Energy 3)

	 	29/166,816

09/04/2002
	 	D 470,302 S

02/18/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #1845) (Energy 3)

	 	29/162,040

06/07/2002
	 	D 470,297 S

02/18/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER Energy Prequel (Style #1851)

	 	29/168,564

10/04/2002
	 	D473,043 S

04/15/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER Energy Prequel (Style #1852)

	 	29/168,743

10/08/2002
	 	D473,368 S

04/22/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM Energy Prequel (Styles 1851 &

1852)

	 	29/168,745

10/08/2002
	 	D473,042 S

04/15/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER STREET SWEETS (Style #2203)

	 	29/095,923

10/23/1998
	 	D 411,246 S

6/22/1999
	
 
	 	 
	 	 
	 
	 	 	 	 

18

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #2203) (STREET SWEETS)

	 	29/095,924

10/23/1998
	 	D 416,126 S

11/09/1999
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2211)

	 	29/103,824

04/22/1999
	 	D 416,128 S

11/09/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2213)

	 	29/103,902

04/23/1999
	 	D422,403 S

04/11/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2214)

	 	29/112,314

10/14/1999
	 	D 446,918 S

08/28/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #2231)

	 	29/108,163

07/20/1999
	 	D 429,553 S

08/22/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2242)

	 	29/112,315

10/14/1999
	 	D 446,919 S

08/28/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2250)

	 	29/117,468

01/21/2000
	 	D 435,162 S

12/19/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #2250)

	 	29/102,053

03/16/1999
	 	D 423,201 S

04/25/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2252)

	 	29/117,903

02/01/2000
	 	D 431,712 S

10/10/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2254)

	 	29/118394

02/08/2000
	 	D 439,734 S

04/03/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #2254)

	 	29/118,393

02/08/2000
	 	D 432,294 S

10/24/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #2310)

	 	29/103,956

04/23/1999
	 	D 435,334 S

12/26/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2350) (Energy #2)

	 	29/136,096

01/24/2001
	 	D 444,624 S

07/10/2001
	
 
	 	 
	 	 
	 
	 	 	 	 

19

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	SHOE BOTTOM (Style #2350)

	 	29/136,100

01/24/2001
	 	D 454,426 S

03/19/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM PERIPHERY (Style #2350)

	 	29/154,392

01/21/2002
	 	D 473,047 S

04/15/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2439)

	 	29/138,446

03/13/2001
	 	D 446,922 S

08/28/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #2439)

	 	29/137,392

02/20/2001
	 	D 458,011 S

06/04/2002
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2464)

	 	29/139,505

03/30/2001
	 	D 448,550 S

10/02/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #2464)

	 	29/139,584

03/30/2001
	 	D 458,012 S

06/04/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2578)

	 	29/119,442

02/28/2000
	 	D 431,713 S

10/10/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2611)

	 	29/128,364

08/23/2000
	 	D 444,622 S

07/10/2001
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT #1 (Style #2611)

	 	29/133,886

12/08/2000
	 	D 444,937 S

07/17/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT #2 (Style #2611)

	 	29/133,876

12/08/2000
	 	D 455,250 S

04/09/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT #3 (Style #2611)

	 	29/133,904

12/08/2000
	 	D 465,081 S

11/05/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT #4 (Style #2611)

	 	29/133,907

12/08/2000
	 	D 445,242 S

07/24/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT #5 (Style #2611)

	 	29/144,463

07/03/2001
	 	D 471,002 S

03/04/2003
	
 
	 	 
	 	 
	 
	 	 	 	 

20

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	SHOE UPPER EMBODIMENT #5-A (Style

#2611)

	 	29/168,565

10/04/2002
	 	D 473,704 S

04/29/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #2611)

	 	29/134,379

10/30/2000
	 	D 459,065 S

06/25/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	PERIPHERY OUTWARDLY SHOE BOTTOM

(Style #2611)

	 	29/136,098

01/24/2001
	 	D 450,439 S

11/20/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	PERIPHERY INWARDLY SHOE BOTTOM

(Style #2611)

	 	29/136,097

01/24/2001
	 	D 498,905 S

11/30/2004
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2667)

	 	29/135,514

01/12/2001
	 	D 444,623 S

07/10/2001
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #2667)

	 	29/135,601

01/12/2001
	 	D 455,544 S

04/16/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #2669)

	 	29/142,235

05/21/2001
	 	D 460,249 S

07/16/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2687)

	 	29/138,566

03/15/2001
	 	D 446,639 S

08/21/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #2687)

	 	29/138,565

03/15/2001
	 	D 455,895 S

04/23/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #26035) RHINO RED

	 	29/207,886

06/18/2004
	 	D 499,871 S

12/21/2004
	
 
	 	 
	 	 
	 
	 	 	 	 
	PORTION OF SHOE UPPER – EMBODIMENT 2

(Style #26035) RHINO RED

	 	29/213,811

09/23/2004
	 	D 513,861 S

01/31/2006
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #2890)

	 	29/165,354

08/08/2002
	 	D 470,299 S

02/18/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT 2 (Style #2890)

	 	29/170,829

11/12/2002
	 	D 472,370 S

04/01/2003
	
 
	 	 
	 	 
	 
	 	 	 	 

21

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	SHOE BOTTOM (Style #2890)

	 	29/165,355

08/08/2002
	 	D 470,296 S

02/18/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM FORWARD PORTION (Style

#2890)

	 	29/170,396

11/06/2002
	 	D 472,037 S

03/25/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM REARWARD PORTION (Style

#2890)

	 	29/170,433

11/06/2002
	 	D 472,369 S

04/01/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE OUTSOLE (Style #3901)

	 	29/161,825

06/05/2002
	 	D 469,948 S

02/11/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE OUTSOLE EMBODIMENT 1 (Shoe

Outsole) (Style #3901)

	 	29/166,371

08/26/2002
	 	D 485,050 S

01/13/2004
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE OUTSOLE EMBODIMENT 2 (HEEL)

(Style #3901)

	 	29/166,191

08/30/2002
	 	D 470,650 S

02/25/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #4042)

	 	29/141,717

05/09/2001
	 	D 459,063 S

06/25/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #4422)

	 	29/200,360

02/27/2004
	 	D 494,349 S

08/17/2004
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #4501)

	 	29/020,597

03/29/1994
	 	D 358,702 S

5/30/1995
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #5013)

	 	29/127,972

8/15/2000
	 	D 441,417 S

05/01/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT 1 (Style #5013)

	 	29/134,561

12/21/2000
	 	D 452,366 S

12/25/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT 2 (Style #5013)

	 	29/134,559

12/21/2000
	 	D 457,715 S

05/28/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #5013)

	 	29/127,966

08/15/2000
	 	D 450,914 S

11/27/2001
	
 
	 	 
	 	 
	 
	 	 	 	 

22

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	SHOE BOTTOM INTERIOR FORWARD

	 	29/132,790

11/15/2000
	 	D 477,130 S

07/15/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM INTERIOR REAR (Style

#5013)

	 	29/133,520

11/29/2000
	 	D 466,274 S

12/03/2002
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM BORDER (Style #5013)

	 	29/133,512

11/29/2000
	 	D 470,649 S

02/25/2013
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM BORDER MIDDLE OUTWARDLY

(Style #5013)

	 	29/133,515

11/29/2000
	 	D 469,599 S

02/04/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM BORDER MIDDLE INWARDLY

(Style #5013)

	 	29/133,516

11/29/2000
	 	D 473,367 S

04/22/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM PERIPHERY OUTWARDLY

(Style #5013)

	 	29/133,513

11/29/2000
	 	D 474,587 S

05/20/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM PERIPHERY INWARDLY

(Style #5013)

	 	29/133,514

11/29/2000
	 	D 469,598 S

02/04/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #5039)

	 	29/160,929

03/28/2002
	 	D 474,007 S

05/06/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Grand Prix) (Style #5381)

	 	29/169,233

10/16/2002
	 	D 471,349 S

03/11/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	PORTION OF SHOE UPPER DIVISIONAL

EMBODIMENT 2

(Grand Prix) (Style #5381)

	 	

29/173,573

12/31/2002
	 	

D 473,045 S

04/15/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	TOE PORTION OF SHOE UPPER DIVISIONAL

EMBODIMENT 3 (Grand Prix) (Style

#5381)

	 	

29/173,549

12/31/2002
	 	

D 473,705 S

04/29/2003
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #5381)

	 	29/174,607

01/21/2003
	 	D 474,879 S

05/27/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #6151)

	 	29/082,175

12/23/1997
	 	D 401,744 S

12/01/1998
	
 
	 	 
	 	 
	 
	 	 	 	 

23

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	SHOE UPPER (Style #6513)

	 	29/088,460

05/23/1998
	 	D 404,905 S

02/02/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #6523)

	 	29/095,956

N/A
	 	D 412,238 S

07/27/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #6540)

	 	29/105,006

05/14/1999
	 	D 418283 S

01/04/2000
	 

	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #6540)

	 	29/098,839

01/07/1999
	 	D 429,551 S

08/22/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #6553)

	 	29/102,051

03/16/1999
	 	D 419,756 S

02/01/2000
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM AND PERIPHERY (Style

#6553)

	 	29/105,007

05/14/1999
	 	D 438,368 S

03/06/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #6597)

	 	29/126,243

07/10/2000
	 	D 435,959 S

01/09/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #6664)

	 	29/102,052

03/16/1999
	 	D 420,498 S

02/15/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #6665)

	 	29/098,838

01/07/1999
	 	D 421,835 S

03/28/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #6665)

	 	29/102,045

03/16/1999
	 	D 423,764 S

05/02/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #6667)

	 	29/098,840

01/07/1999
	 	D 424,287 S

05/19/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #6691)

	 	29/084,373

03/02/1998
	 	D 404,904 S

02/02/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #6691)

	 	29/084,365

03/02/1998
	 	D 401,745 S

12/01/1998
	
 
	 	 
	 	 
	 
	 	 	 	 

24

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	SHOE UPPER (Style #6707)

	 	29/096,211

11/06/1998
	 	D 415,877 S

11/02/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #6707)

	 	29/096,210

11/06/1998
	 	D 414,922 S

10/12/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #6802)

	 	29/129,282

08/15/2000
	 	D 442,358 S

05/22/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #6809)

	 	29/108162

07/20/1999
	 	D424,285 S

05/09/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #7413 & #7411)

	 	29/136,028

01/23/2001
	 	D 447,327 S

09/04/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	CLASSIX/DUKE OUTSOLE/BOTTOM (Style

#7450)

	 	29/065,542

01/29/1997
	 	D 395,341 S

06/23/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7612)

	 	29/084,170

02/26/1998
	 	D 402,456 S

12/15/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #7612)

	 	29/086,350

04/10/1998
	 	D 404,549 S

01/26/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7617)

	 	29/083,570

02/11/1998
	 	D 402,453 S

12/15/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #7617)

	 	29/083,571

02/11/1998
	 	D 404,551 S

01/26/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #7620)

	 	29/102,050

03/16/1999
	 	D 439,394 S

03/27/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #7640)

	 	29/103,955

04/23/1999
	 	D 426,945 S

06/27/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	GROOVER OUTSOLE/BOTTOM (Style #7664)

	 	29/065,562

01/29/1997
	 	D 397,851 S

09/08/1998
	
 
	 	 
	 	 
	 
	 	 	 	 

25

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	SHOE UPPER (Style #7793)

	 	29/102,049

03/16/1999
	 	D 423,204 S

04/25/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7810)

	 	29/091,414

07/29/1998
	 	D 407,891 S

04/13/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #7810)

	 	29/091,416

07/29/1998
	 	D 411,245 S

06/22/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7849)

	 	29/088,461

05/23/1998
	 	D 403,148 S

12/29/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE — HEARTBEAT SLIDE (Style #7857)

	 	29/075,462

08/21/1997
	 	D 404,545 S

01/26/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7880)

	 	29/091415

07/29/1998
	 	D 407,545 S

04/06/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	STREET CLEATS OUTSOLE/BOTTOM (Style

#7888)

	 	29/066,414

02/13/1997
	 	D 389,295 S

01/20/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER WOMPER CLOG (Style #7900)

	 	29/073,696

07/16/1997
	 	D 401,049 S

11/17/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER ONE BAND WOMPER SLIDE

(Style #7919)

	 	29/075,924

08/29/1997
	 	D 401,050 S

11/17/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7926)

	 	29/084,171

02/26/1998
	 	D 402,457 S

12/15/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #7926)

	 	29/084,168

02/26/1998
	 	D 409,361 S

05/11/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7930 & #7992)

	 	29/083,573

02/11/1998
	 	D 402,100 S

12/08/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7933)

	 	29/093,271

09/08/1998
	 	D 409,364 S

05/11/1999
	
 
	 	 
	 	 
	 
	 	 	 	 

26

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	SHOE BOTTOM WOMPER DELUXE (Style

#7946)

	 	29/091294

07/27/1998
	 	D 405,942 S

02/23/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER WOMPER DELUXE (Style

#7946)

	 	29/093,318

09/08/1998
	 	D 420,211 S

02/08/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7951)

	 	29/082,280

12/23/1997
	 	D 403,849 S

01/12/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #7951)

	 	29/082,176

12/23/1997
	 	D 409,825 S

05/18/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	BUBBLE DESIGN (Style #7951)

	 	29/092,069

08/11/1998
	 	D 429,875 S

08/29/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7955)

	 	29/083,909

02/18/1998
	 	D 402,455 S

12/15/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7959)

	 	29/083,572

02/11/1998
	 	D 402,802 S

12/22/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7960)

	 	29/083,855

02/18/1998
	 	D 402,454 S

12/15/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE OUTSOLE (Style #7963)

	 	29/085,464

03/24/1998
	 	D 424,790 S

05/16/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7972)

	 	29/102,046

03/16/1999
	 	D 424,290 S

05/09/2000
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7982)

	 	29/087,301

04/30/1998
	 	D 404,554 S

01/26/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE PERIPHERY AND BOTTOM

PLATFORM WOMPER (Style #7988)

	 	29/085,499

03/24/1998
	 	D 408,972 S

05/04/1999
	 

	 	 
	 	 
	 
	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

(Style #7992)

	 	29/084,169

02/26/1998
	 	D 408,977 S

05/04/1999
	
 
	 	 
	 	 
	 
	 	 	 	 

27

Schedule A

U.S. Patent Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application No./	 	Patent No./
	Title	 	Application Date	 	Patent Date

	 	 	 	 	 
	COMBINED SHOE BOTTOM AND PERIPHERY

PLATFORM STREET CLEAT (Style #7994)

	 	29/085,450

03/24/1998
	 	D 408,119 S

04/20/1999
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #7996)

	 	29/085,453

03/24/1998
	 	D 404,553 S

01/25/1999
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE BOTTOM (Style #7996)

	 	29/085,452

03/24/1998
	 	D 401,045 S

11/17/1998
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #8272)

	 	29/124,145

05/31/2000
	 	D 441,942 S

05/15/2001
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #9771)

	 	29/160,051

05/03/2002
	 	D 468,898 S

01/21/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT 1 (Style #9771)

	 	29/165,756

08/16/2002
	 	D 468,522 S

01/14/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #9860 (adult) and 1817)

	 	29/160,050

05/03/2002
	 	D 467,409 S

12/24/2002
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER EMBODIMENT 1 (Style #9860

(adult) and 1817)

	 	29/165,265

08/15/2002
	 	D 468,521 S

01/14/2003
	
 
	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #30214)

	 	29/202,352

03/30/2004
	 	D 495,862 S

09/14/2004
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER BIKER (Style #21511)

	 	29/216,116

10/29/2004
	 	D 513,361 S

01/03/2006
	 

	 	 
	 	 
	 
	 	 	 	 
	SHOE UPPER (Style #21548)

	 	29/237,392

08/31/2005
	 	

N/A
	 

	 	 
	 	 
	 
	 	 	 	 

28

Schedule B

U.S. Copyright Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 
	Title

	 	Registration No./Registration

Date
	 

	 	 

	 	 	 
	SKECHERS 1994 CATALOG

	 	TX 3-845-846

05/31/1994
	 

	 	 
	 
	 	 
	BANNER

	 	VA 676-899

11/03/1994
	 

	 	 
	 
	 	 
	1994 KARL KANI CATALOG

	 	TX 3-939-682

11/16/1994
	 

	 	 
	 
	 	 
	CROSS COLOURS

	 	TX 3-942-322

11/03/1994
	 

	 	 
	 
	 	 
	SKECHERS 1994 CATALOG

	 	TX 3-845-846

05/31/1994
	
 
	 	 
	 
	 	 
	1995 KARL KANI CATALOG

	 	TX 4-018-560

04/06/1995
	 

	 	 
	 
	 	 
	1995 SKECHERS FOOTWEAR

	 	TX 4-018-543

04/06/1995
	 

	 	 
	 
	 	 
	SKECHERS NEW EDITIONS 1995

	 	TX 4-046-611

04/06/1995
	 

	 	 
	 
	 	 
	NEW SKECHERS ADDITIONS 1995-1996 CATALOG

	 	TX 4-195-464

11/25/1995
	
 
	 	 
	 
	 	 
	BROKEN HEART

	 	VA 746-319

01/24/1996
	 

	 	 
	 
	 	 
	LIPS DESIGN

	 	VA 746-318

01/24/1996
	
 
	 	 
	 
	 	 
	EYE DESIGN

	 	VA 746-317

01/24/1996
	 

	 	 
	 
	 	 
	BUTTERFLY DESIGN

	 	VA 746-315

01/24/1996
	 

	 	 
	 
	 	 

29

Schedule B

U.S. Copyright Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 
	Title

	 	Registration No./Registration

Date
	 

	 	 

	 	 	 
	PLANET DESIGN

	 	VA 746-316

01/24/1996
	
 
	 	 
	 
	 	 
	SHOE BOX DESIGN (YELLOW & BLACK)

	 	VA 847-922

03/10/1998
	
 
	 	 
	 
	 	 
	SKECHERS 97 IT’S THE S

	 	TX 4-708-262

01/16/1998
	
 
	 	 
	 
	 	 
	SKECHERS 98 SPRING SUPPLEMENT

	 	TX 4-704-338

01/16/1998
	
 
	 	 
	 
	 	 
	SLIGHTS DESIGN

	 	VA 905-184

03/13/1998
	
 
	 	 
	 
	 	 
	KIDS SKECHERS IT’S THE S 98/99 CATALOGUE

	 	TX 4-823-219

07/23/1998
	 

	 	 
	 
	 	 
	SKECHERS IT’S THE S FOOTWEAR 98/99 CATALOGUE

	 	TX 4-828-575

07/23/1998
	 

	 	 
	 
	 	 
	SKECHERS IT’S THE S FOOTWEAR

	 	TX 4-839-447

10/13/1998
	 

	 	 
	 
	 	 
	S SKECHERS U.S.A. 1999 SPRING SUPPLEMENT

	 	TX 4-976-998

04/26/1999
	 

	 	 
	 
	 	 
	SHOE BOX DESIGN . . . IT’S THE S (BLUE & GREY)

	 	VA 709-505

12/31/1999

For a period of 95 Years
	 

	 	 
	 
	 	 
	4 WHEELERS SKECHERS

	 	TX 5-441-636

01/17/2002
	 

	 	 
	 
	 	 
	4 WHEELERS SKECHERS

	 	VA 1-108-920

01/17/2002
	
 
	 	 
	 
	 	 

30

Schedule B

U.S. Copyright Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 
	Title

	 	Registration No./Registration

Date
	 

	 	 

	 	 	 
	SHOE BOX TEXT 4 WHEELERS

	 	TX 5-441-637

01/14/2002
	 

	 	 
	 
	 	 
	SHOE BOX ARTWORK 4 WHEELERS

	 	VA 1-108-919

01/14/2002
	 

	 	 
	 
	 	 

31

Schedule C

U.S. Trademark Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Serial No./	 	Registration No./
	Mark	 	Class	 	Filing Date	 	Registration Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	74/330,368	 	 	 	1,851,977	 
	SKECHERS
	 	 	25	 	 	 	11/12/1992	 	 	 	08/30/1994	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/178,756	 	 	 	2,145,468	 
	SKECHERS
	 	 	18	 	 	 	10/08/1996	 	 	 	03/17/1998	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/220,099	 	 	 	2,105,579	 
	SKECHERS USA
	 	 	25	 	 	 	12/31/1996	 	 	 	10/14/1997	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SKECHERS USA, S
	 	 	 	 	 	 	75/449,285	 	 	 	2,362,883	 
	FOOTWEAR and Design
	 	 	25	 	 	 	03/12/1998	 	 	 	06/27/2000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/557,323	 	 	 	2,313,660	 
	SKECHERS
	 	 	35	 	 	 	09/23/1998	 	 	 	02/01/2000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/982,506	 	 	 	2,643,653	 
	STRETCH-FIT BY SKECHERS
	 	 	25	 	 	 	11/20/2000	 	 	 	10/29/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	S SKECHERS COMFORT and
	 	 	 	 	 	 	76/313,102	 	 	 	2,668,481	 
	Design
	 	 	25	 	 	 	09/10/2001	 	 	 	12/31/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/155,941	 	 	 	2,789,863	 
	SKECHERS
	 	 	14	 	 	 	08/20/2002	 	 	 	12/02/2003	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/158,540	 	 	 	2,734,901	 
	SKECHERS SPORT
	 	 	25	 	 	 	08/28/2002	 	 	 	07/08/2003	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/155,948	 	 	 	 	 
	SKECHERS SPORT
	 	 	25	 	 	 	08/20/2002	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/155,951	 	 	 	 	 
	SKECHERS SPORT
	 	 	14	 	 	 	08/20/2002	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/156,800	 	 	 	2,756,217	 
	SKECHERS COLLECTION
	 	 	25	 	 	 	08/22/2002	 	 	 	08/26/2003	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	74/575,310	 	 	 	1,985,039	 
	SKECHERS and Design
	 	 	25	 	 	 	09/19/1994	 	 	 	07/09/1996	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

32

Schedule C

U.S. Trademark Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Serial No./	 	Registration No./
	Mark	 	Class	 	Filing Date	 	Registration Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	74/419,321	 	 	 	2,003,846	 
	SPORT-UTILITY FOOTWEAR
	 	 	 	 	 	 	08/02/1993	 	 	 	10/01/1996	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SPORT-UTILITY
	 	 	 	 	 	 	74/573,606	 	 	 	2,292,945	 
	CLOTHING and Design
	 	 	25	 	 	 	09/14/1994	 	 	 	11/16/1999	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/489231	 	 	 	2,284,971	 
	IT’S THE S
	 	 	25	 	 	 	05/21/1998	 	 	 	10/12/1999	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/557,324	 	 	 	2,409,860	 
	IT’S THE S
	 	 	42	 	 	 	09/23/1998	 	 	 	12/05/2000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/508,605	 	 	 	2,713,698	 
	IT’S THE S
	 	 	25	 	 	 	06/25/1998	 	 	 	05/06/2003	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/170,845	 	 	 	 	 
	MARK NASON
	 	 	25	 	 	 	10/03/2002	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/215,972	 	 	 	2,855,282	 
	THE MARK OF STYLE
	 	 	25	 	 	 	02/18/2003	 	 	 	06/15/2004	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/975,439	 	 	 	2,865,769	 
	MARK NASON
	 	 	25	 	 	 	10/03/2002	 	 	 	07/20/2004	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/827,737	 	 	 	 	 
	ROCK NEVER DIES
	 	 	25	 	 	 	03/02/2006	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SIREN BY MARK NASON
	 	 	25	 	 	 	N/A	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SKECHERS BY MICHELLE
	 	 	 	 	 	 	76/313,104	 	 	 	2,656,178	 
	K (Plain)
	 	 	25	 	 	 	09/10/2001	 	 	 	12/03/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SKECHERS BY MICHELLE
	 	 	 	 	 	 	76/313,103	 	 	 	2,656,177	 
	K (Styled)
	 	 	25	 	 	 	09/10/2001	 	 	 	12/03/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/210,820	 	 	 	 	 
	MICHELLE K
	 	 	18	 	 	 	02/05/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

33

Schedule C

U.S. Trademark Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Serial No./	 	Registration No./
	Mark	 	Class	 	Filing Date	 	Registration Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/210,823	 	 	 	 	 
	MICHELLE K
	 	 	35	 	 	 	02/05/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/975,516	 	 	 	2,890,466	 
	MICHELLE K
	 	 	35	 	 	 	02/05/03	 	 	 	09/28/2004	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/225,145	 	 	 	2,810,699	 
	MICHELLE K
	 	 	25	 	 	 	03/13/2003	 	 	 	02/03/2004	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/225,124	 	 	 	 	 
	MICHELLE K
	 	 	25	 	 	 	03/13/03	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	76/976/178	 	 	 	2,818,259	 
	MKLA
	 	 	25	 	 	 	12/17/2001	 	 	 	02/24/2004	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	74/623,765	 	 	 	1,963,040	 
	FRICTION
	 	 	25	 	 	 	1/20/1995	 	 	 	03/19/1996	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/132,155	 	 	 	2,107,996	 
	WOMPERS
	 	 	25	 	 	 	7/10/1996	 	 	 	10/21/1997	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	74/569,793	 	 	 	2,079,608	 
	STREET CLEAT
	 	 	25	 	 	 	09/06/1994	 	 	 	07/15/1997	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/384,900	 	 	 	2,246,720	 
	SLIGHTS
	 	 	25	 	 	 	11/05/1997	 	 	 	05/18/1999	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/443,560	 	 	 	2,261,697	 
	S LIGHTS
	 	 	25	 	 	 	03/03/1998	 	 	 	07/13/1999	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/443,557	 	 	 	2,293,564	 
	SLIGHTS and Design
	 	 	25	 	 	 	03/03/1998	 	 	 	11/16/1999	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DESIGN OVAL AND
	 	 	 	 	 	 	75/647,021	 	 	 	2,388,868	 
	ARROW ON RT. SHOE
	 	 	25	 	 	 	02/24/1999	 	 	 	09/19/2000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DESIGN OVAL AND
	 	 	 	 	 	 	75/647,017	 	 	 	2,388,867	 
	ARROW ON LT. SHOE
	 	 	25	 	 	 	02/24/1999	 	 	 	09/19/2000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

34

Schedule C

U.S. Trademark Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Serial No./	 	Registration No./
	Mark	 	Class	 	Filing Date	 	Registration Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/657,529	 	 	 	 	 
	CLUB S
	 	 	25	 	 	 	03/10/1999	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/706,856	 	 	 	 	 
	CLUB S and Design
	 	 	25	 	 	 	05/14/1999	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/824,711	 	 	 	2,373,042	 
	S TREMES
	 	 	25	 	 	 	10/18/1999	 	 	 	08/01/2000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/824,521	 	 	 	2,498,948	 
	G-TECH
	 	 	25	 	 	 	10/18/1999	 	 	 	10/16/2001	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/876,409	 	 	 	2,423,237	 
	HOUSE PARTIES
	 	 	25	 	 	 	12/21/1999	 	 	 	01/23/2001	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	76/382,751	 	 	 	2,702,175	 
	S and Design
	 	 	25	 	 	 	03/14/2002	 	 	 	04/01/2003	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/162,384	 	 	 	2,833,235	 
	(SLIPPING MAN) Design
	 	 	25	 	 	 	09/10/2002	 	 	 	04/13/2004	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/271,117	 	 	 	 	 
	TUFF-AIR
	 	 	25	 	 	 	07/07/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/311,530	 	 	 	 	 
	TUFF S
	 	 	25	 	 	 	10/09/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/336,350	 	 	 	2,916,380	 
	S and Design
	 	 	25	 	 	 	12/04/2003	 	 	 	01/04/2005	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/427,168	 	 	 	 	 
	LA SUPERSTARS
	 	 	25	 	 	 	05/28/2004	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/461,746	 	 	 	 	 
	SOHO LAB
	 	 	35	 	 	 	08/04/2004	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/975,775	 	 	 	3,076,820	 
	SOHO LAB
	 	 	35	 	 	 	08/04/2004	 	 	 	04/04/2006	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

35

Schedule C

U.S. Trademark Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Serial No./	 	Registration No./
	Mark	 	Class	 	Filing Date	 	Registration Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/579,452	 	 	 	3,059,087	 
	SKEVA
	 	 	25	 	 	 	03/03/2005	 	 	 	02/14/2006	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/580,750	 	 	 	 	 
	BIRD 33
	 	 	25	 	 	 	03/04/2005	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/662,663	 	 	 	 	 
	H and Design
	 	 	25	 	 	 	07/01/2005	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	VENTILATOR
	 	 	25	 	 	 	N/A	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/748,762	 	 	 	 	 
	SOHO LAB
	 	 	25	 	 	 	11/07/2005	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/760,570	 	 	 	 	 
	Z-STRAP
	 	 	25	 	 	 	11/23/2005	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/795,064	 	 	 	 	 
	AIRATORS
	 	 	25	 	 	 	01/19/2006	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/795,083	 	 	 	 	 
	AERATORS
	 	 	25	 	 	 	01/19/2006	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/819991	 	 	 	 	 
	HURRICANE
	 	 	25	 	 	 	02/21/2006	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/820,038	 	 	 	 	 
	HURRICANE
	 	 	25	 	 	 	02/21/2006	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/821,660	 	 	 	 	 
	H Design
	 	 	25	 	 	 	02/23/2006	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	S Design
(Performance S with
	 	 	 	 	 	 	78/827,361	 	 	 	 	 
	borders)
	 	 	25	 	 	 	03/02/2006	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	S Design
(Performance S with
	 	 	 	 	 	 	78/827,479	 	 	 	 	 
	borders)
	 	 	25	 	 	 	03/02/2006	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

36

Schedule C

U.S. Trademark Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Serial No./	 	Registration No./
	Mark	 	Class	 	Filing Date	 	Registration Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/976,914	 	 	 	2,205,906	 
	S in Shield Design
	 	 	25	 	 	 	N/A	 	 	 	11/24/1998	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/332,550	 	 	 	2,578,973	 
	S in Shield Design
	 	 	25	 	 	July 29, 1997
	 	 	06/11/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/557,984	 	 	 	2,349,542	 
	S in Shield Design
	 	 	35	 	 	 	09/23/1998	 	 	 	05/16/2000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	S ABSTRACT SHIELD
	 	 	 	 	 	 	75/688,710	 	 	 	2,425,783	 
	DESIGN (Black version)
	 	 	25	 	 	 	4/22/99	 	 	 	01/30/2001	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	S ABSTRACT SHIELD
DESIGN (Outline
	 	 	 	 	 	 	75/688,708	 	 	 	2,425,782	 
	version)
	 	 	25	 	 	 	04/22/1999	 	 	 	01/30/2001	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	76/039,129	 	 	 	2,521,252	 
	S IN SHIELD FLAG Design
	 	 	25	 	 	 	05/02/2000	 	 	 	12/18/2001	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/942,023	 	 	 	 	 
	SKX
	 	 	25	 	 	 	03/11/2000	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	75/980,297	 	 	 	2,542,311	 
	SKX
	 	 	25	 	 	 	03/11/2000	 	 	 	02/26/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	76/982,046	 	 	 	2,583,260	 
	SKX and Design
	 	 	25	 	 	 	03/20/2000	 	 	 	06/18/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SOMETHIN’ ELSE FROM
	 	 	 	 	 	 	76/178,933	 	 	 	2,750,899	 
	SKECHERS
	 	 	25	 	 	 	12/11/2000	 	 	 	08/12/2003	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SOMETHIN’ ELSE FROM
	 	 	 	 	 	 	76/308,061	 	 	 	 	 
	SKECHERS (Stylized)
	 	 	25	 	 	 	09/04/2001	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SOMETHIN’ ELSE FROM
	 	 	 	 	 	 	76/313,101	 	 	 	2,653,976	 
	SKECHERS (Stylized)
	 	 	25	 	 	 	09/10/2001	 	 	 	11/26/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SOMETHIN’ ELSE FROM
	 	 	 	 	 	 	76/341,730	 	 	 	3,055,819	 
	SKECHERS (Plain)
	 	 	25	 	 	 	11/26/2001	 	 	 	01/31/2006	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

37

Schedule C

U.S. Trademark Applications and Registrations in the name of Skechers U.S.A., Inc. II

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Serial No./	 	Registration No./
	Mark	 	Class	 	Filing Date	 	Registration Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/298,441	 	 	 	 	 
	SOMETHIN’ ELSE
	 	 	25	 	 	 	09/10/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/975,836	 	 	 	 	 
	SOMETHIN’ ELSE
	 	 	25	 	 	 	N/A	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

38

Schedule A

U.S. Patent Applications and Registrations in the name of 310 Global Brands, Inc.

NONE

39

Schedule B

U.S. Copyright Applications and Registrations in the name of 310 Global Brands, Inc.

NONE

40

Schedule C

U.S. Trademark Applications and Registrations in the name of 310 Global Brands, Inc.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Serial No./	 	Registration No./
	Mark	 	Class(es)	 	Filing Date	 	Registration Date

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	1, 2, 3, 4, 6, 7,	 	 	 	 	 	 	 	 	 
	 
	 	 	12, 16, 18, 20, 25,	 	 	 	78/276,915	 	 	 	 	 
	310
	 	 	35, 37	 	 	 	07/21/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/189,743	 	 	 	 	 
	310
	 	 	18, 25	 	 	 	11/27/2002	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/455,266	 	 	 	2,995,182	 
	310 Combo (Vertical)
	 	 	25	 	 	 	07/22/2004	 	 	 	09/13/2005	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	78/455,250	 	 	 	 	 
	310 Combo (Elongated)
	 	 	25	 	 	 	07/22/2004	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	6, 9, 14, 16, 18,	 	 	 	76/497,617	 	 	 	 	 
	310 CLOTHING
	 	 	20, 25	 	 	 	03/17/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	76/101,251	 	 	 	2,581,111	 
	310 CLOTHING
	 	 	25	 	 	 	08/03/2000	 	 	 	06/18/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	6, 9, 14, 16, 18,	 	 	 	76/497,623	 	 	 	 	 
	310 MOTORING
	 	 	20, 25	 	 	 	03/17/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	1, 2, 3, 4, 7, 9,	 	 	 	 	 	 	 	 	 
	 
	 	 	12, 16, 25, 35, 37,	 	 	 	76/518,168	 	 	 	 	 
	310 MOTORING
	 	 	41	 	 	 	05/30/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	76/101,223	 	 	 	2,565,085	 
	310 MOTORING
	 	 	35	 	 	 	08/03/2000	 	 	 	04/30/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	76/248,581	 	 	 	2,571,277	 
	310 MOTORING
	 	 	37	 	 	 	05/01/2001	 	 	 	05/21/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	76/248,579	 	 	 	2,571,276	 
	310 MOTORING
	 	 	39	 	 	 	05/01/2001	 	 	 	05/21/2002	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	6, 9, 14, 16, 18,	 	 	 	76/497,624	 	 	 	 	 
	310 PRODUCTIONS
	 	 	20, 25	 	 	 	03/17/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	76/514,532	 	 	 	 	 
	310 RACING
	 	 	16, 25, 35, 37, 41	 	 	 	05/13/2003	 	 	 	N/A	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

41

Schedule C

U.S. Trademark Applications and Registrations in the name of 310 Global Brands, Inc.

	 	 	 	 	 	 	 
	310 RACING & Design

	 	1, 7, 9, 12, 14,

16, 18, 25
	 	76/531,049

07/21/2003
	 	

N/A
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	310 SPORT

	 	25, 37
	 	76/517,956

05/29/2003
	 	

N/A
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	TEAM 310

	 	25, 37
	 	76/517,894

05/29/2003
	 	

N/A
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	THREE-ONE-O

	 	25, 37
	 	76/517,964

05/29/2003
	 	

N/A
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	THREE-TEN

	 	25, 37
	 	76/517,897

05/29/2003
	 	

N/A
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 

42

Schedule 6.10 – Depository Accounts

Depository Accounts

Wachovia Bank, 301 S. College Street, Charlotte, NC 28202; account number 2000014477313 (CIT
Lockbox Account)

Wachovia Securities, LLC, 10700 Wheat First Drive, Glen Allen, Virginia 23060; account number
5889-0707

43

Schedule 7.1(b) – Borrowers and Subsidiaries and Collateral Information

Name of Borrower: Skechers U.S.A., Inc.

State of Incorporation/Formation: Delaware

F.E.I.N. of Borrower: 95-4376145

State Organizational Number of Borrower: 2163448

Address of Chief Executive Office of Borrower: 228 Manhattan Beach Blvd., Manhattan Beach,
California 90266

Name of Borrower: Skechers U.S.A., Inc. II

State of Incorporation/Formation: Delaware

F.E.I.N. of Subsidiary: 95-4747242

State Organizational Number of Subsidiary: 2167548

Address of Chief Executive Office of Subsidiary: 228 Manhattan Beach Blvd., Manhattan Beach,
California 90266

Name of Borrower: Skechers By Mail, Inc.

State of Incorporation/Formation: Delaware

F.E.I.N. of Subsidiary: 95-4701399

State Organizational Number of Subsidiary: 2119400

Address of Chief Executive Office of Subsidiary: 228 Manhattan Beach Blvd., Manhattan Beach,
California 90266

Name of Borrower: 310 Global Brands, Inc.

State of Incorporation/Formation: Delaware

F.E.I.N. of Subsidiary: 43-2009441

State Organizational Number of Subsidiary: 2749933

Address of Chief Executive Office of Subsidiary: 228 Manhattan Beach Blvd., Manhattan Beach,
California 90266

Name of Subsidiary: Skechers Collection LLC

State of Incorporation/Formation: California

F.E.I.N. of Subsidiary: None

State Organizational Number of Subsidiary: (Sec. of State File # — 200001310034)

Address of Chief Executive Office of Subsidiary: 228 Manhattan Beach Blvd., Manhattan Beach,
California 90266

44

Name of Subsidiary: Skechers Sport LLC

State of Incorporation/Formation: California

F.E.I.N. of Subsidiary: None

State Organizational Number of Subsidiary: (Sec. of State File # — 200001310032)

Address of Chief Executive Office of Subsidiary: 228 Manhattan Beach Blvd., Manhattan Beach,
California 90266

Name of Subsidiary: Duncan Investments, LLC

State of Incorporation/Formation: California

F.E.I.N. of Subsidiary: 95-4846458

State Organizational Number of Subsidiary: (Sec. of State File # — 200103210004)

Address of Chief Executive Office of Subsidiary: 228 Manhattan Beach Blvd., Manhattan Beach,
California 90266

Name of Subsidiary: Yale Investments, LLC

State of Incorporation/Formation: Delaware

F.E.I.N. of Subsidiary: 95-4833459

State Organizational Number of Subsidiary: (Sec. of State File # — 200033210039)

Address of Chief Executive Office of Subsidiary: 228 Manhattan Beach Blvd., Manhattan Beach,
California 90266

Name of Subsidiary: Sports Brand Corporation

State of Incorporation/Formation: Delaware

F.E.I.N. of Subsidiary: 20-3030838

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: 228 Manhattan Beach Blvd., Manhattan Beach,
California 90266

Name of Subsidiary: Skechers USA Benelux B.V.

State/Country of Incorporation/Formation: Netherlands

F.E.I.N. of Subsidiary: 98-0392991

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: Cartografenweg 16, 5141 MT WAALWIJK, The
Netherlands

Name of Subsidiary: Skechers USA Canada Inc.

State/Country of Incorporation/Formation: Canada

F.E.I.N. of Subsidiary: None

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: 2425 Matheson Blvd. East, Suite 120, Mississauga,
Ontario L4W 5K4

45

Name of Subsidiary: Skechers USA France SAS

State/Country of Incorporation/Formation: France

F.E.I.N. of Subsidiary: 98-0346857

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: 20 rue des Capucines, 75002 Paris, France

Name of Subsidiary: Skechers USA Deutschland GmbH

State/Country of Incorporation/Formation: Germany

F.E.I.N. of Subsidiary: 98-0346701

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: Waldstrasse 74, 63128 Dietzenbach, Germany

Name of Subsidiary: Skechers USA Italia S.r.l.

State/Country of Incorporation/Formation: Italy

F.E.I.N. of Subsidiary: 47-0914957

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: Via Alberto Dominutti, 6, 37135 Verona, Italia

Name of Subsidiary: Skechers USA Iberia, S.L.

State/Country of Incorporation/Formation: Spain

F.E.I.N. of Subsidiary: 98-0372248

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: 40 Calle de Serrano, 5th Floor, 28001
Madrid, Spain

Name of Subsidiary: Skechers S.a.r.l.

State/Country of Incorporation/Formation: Switzerland

F.E.I.N. of Subsidiary: 98-0349046

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: Rue de la Mercerie 12, 1003 Lausanne, Switzerland

Name of Subsidiary: Skechers USA Ltd.

State/Country of Incorporation/Formation: United Kingdom

F.E.I.N. of Subsidiary: 98-0347474

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: Katherine House, Darkes Lane, 9/11 Wyllyotts
Place, Potters Bar, Hertfordshire, EN6 2JD, UK

46

Name of Subsidiary: Skechers EDC SPRL

State/Country of Incorporation/Formation: Belgium

F.E.I.N. of Subsidiary: 98-0385255

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: Parc Industriel hauts-Sarts, Zone 3, Avenue du
Parc Indutriel 159, B-4041 Herstal (Milmort) Belgium

Name of Subsidiary: Skechers International

State/Country of Incorporation/Formation: Switzerland

F.E.I.N. of Subsidiary: 98-0357124

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: PO Box 415, Templar House, Don Road, St. Helier,
Jersey, Channel Islands JE4 8WH

Name of Subsidiary: Skechers International II

State/Country of Incorporation/Formation: Switzerland

F.E.I.N. of Subsidiary: None

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: PO Box 415, Templar House, Don Road, St. Helier,
Jersey, Channel Islands JE4 8WH

Name of Subsidiary: Skechers Footwear (Dongguan) Co., Ltd.

State/Country of Incorporation/Formation: China

F.E.I.N. of Subsidiary:

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: Chi Ling Dashibei Office Building S, Lu Zhou
Industrial Area, Chi Ling Development Zone, Hou Jie Town, Dongguan City, Guangdong Province,
Peoples Republic of China 523940

Name of Subsidiary: Skechers Japan YK

State/Country of Incorporation/Formation: Japan

F.E.I.N. of Subsidiary:

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: C/O RIS International, 7-4 Nishi Shimbashi,
2-chome, Minato-ku, Tokyo, Japan

Name of Subsidiary: Skechers USA Taiwan

State/Country of Incorporation/Formation: Taiwan

F.E.I.N. of Subsidiary:

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: 15f, no. 51 Sec2, Kung YI Rd., Taichung, Taiwan

47

Name of Subsidiary: Skechers Holdings Jersey Limited

State/Country of Incorporation/Formation: Jersey

F.E.I.N. of Subsidiary:

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: C/O Volaw, PO Box 415, Templar House, Don Road,
St. Helier, Jersey JE4 8WH

Name of Subsidiary: Skechers USA Mauritius 10

State/Country of Incorporation/Formation: Mauritius

F.E.I.N. of Subsidiary:

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: C/O DTOS Ltd., 4th Floor, IBL House,
Caudan, Port Louis, Mauritius

Name of Subsidiary: Skechers USA Mauritius 90

State/Country of Incorporation/Formation: Mauritius

F.E.I.N. of Subsidiary: 98-0492180

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: C/O DTOS Ltd., 4th Floor, IBL House,
Caudan, Port Louis, Mauritius

Name of Subsidiary: Skechers Chinese Business Trust

State/Country of Incorporation/Formation: Jersey

F.E.I.N. of Subsidiary:

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: C/O Volaw, PO Box 415, Templar House, Don Road,
St. Helier, Jersey JE4 8WH

Name of Subsidiary: Skechers Holdings Mauritius

State/Country of Incorporation/Formation: Mauritius

F.E.I.N. of Subsidiary: 98-0492179

State Organizational Number of Subsidiary:

Address of Chief Executive Office of Subsidiary: C/O DTOS Ltd., 4th Floor, IBL House,
Caudan, Port Louis, Mauritius

COLLATERAL LOCATIONS:

Skechers Corporate Office

228 Manhattan Beach Blvd.

Manhattan Beach, CA 90266

Skechers Corporate Office

225 S. Sepulveda Blvd.

Manhattan Beach, CA 90266

48

Skechers Corporate Office

1100 Highland Avenue

Manhattan Beach, CA 90266

Skechers Corporate Office

330 S. Sepulveda Blvd.

Manhattan Beach, CA 90266

Skechers Distribution Center

1661 S. Vintage Ave.

Ontario, CA 91761

Skechers Distribution Center

1777 S. Vintage Ave.

Ontario, CA 91761

Skechers Distribution Center

1670 Champagne Ave.

Ontario, CA 91761

Skechers Distribution Center

4100 E. Mission Blvd.

Ontario, CA 91761

Third-Party Warehouse

245 Carter Street

Edison, NJ 08817

Skechers Retail Stores

(see attached)

49

	 	 	 	 	 
	SKECHERS Retail Stores	 	 
	STORE NO.	 	ADDRESS	 	 
	 	 	1121 Manhattan Ave	 	 
	1	 	Manhattan Beach, CA 90266	 	 
	 	 	19000 S. Vermont Avenue	 	 
	2	 	Gardena, CA 90248	 	 
	 	 	Camarillo Premium Outlets	 	 
	 	 	850 E. Ventura Blvd., Space #716	 	 
	4	 	Camarillo, CA 93010	 	 
	 	 	Galleria at South Bay	 	 
	 	 	1815 Hawthorne Blvd. Space #112	 	 
	5	 	Redondo Beach, CA 90278	 	 
	 	 	Ontario Mills Outlet Mall	 	 
	 	 	1 Mills Circle, Space #202	 	 
	6	 	Ontario, CA 91764	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	7

	 	Gilroy Premium Outlets

8300 Arroyo Circle, Space #C050

Gilroy, CA 95020
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	9

	 	Sunvalley Mall

129B Sunvalley Mall, Space #E206

Concord, CA 94520
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	10

	 	Arizona Mills

5000 Arizona Mills Circle, Space #279

Tempe, AZ 85282
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	11

	 	Woodbury Common Premium Outlets

877 Grapevine Court

Central Valley, NY 10917
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	12

	 	Garden State Plaza

Route 4 and N. 17, Space #1230

Paramus, NJ 07652
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	14

	 	7500 Melrose Avenue

Los Angeles, CA 90046
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	16R

	 	Tanger Outlet . Riverhead

Long Island Expressway, Exit 73

Tanger Drive, Space #1209

Riverhead, NY 11901
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	17

	 	1411 A Third Street Promenade

Santa Monica, CA 90401
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	18R

	 	Beverly Center

8500 Beverly Blvd., Space #643

Los Angeles, CA 90048
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	19

	 	Milpitas Mills

498 Great Mall Drive

Milpitas, CA 95035
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	21

	 	Irvine Spectrum

71 Fortune Drive, Space #856

Irvine, CA 92618
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	22

	 	The Block at Orange

20 City Blvd. J3, Space #312

Orange, CA 92868
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	23

	 	18143 Ventura Blvd.

Tarzana, CA 91356
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	25

	 	Wrentham Village Premium Outlets

1 Premium Outlets Blvd., Space #165

Wrentham, MA 02093
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	26

	 	1195 N. State College Blvd.

Anaheim, CA 92806
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	27

	 	6426 Van Nuys Blvd.

Van Nuys, CA 91401
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	28

	 	Waikele Premium Outlets

94.792 Lumaina Street, Bldg. 2, #213

Waipahu, HI 96797
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	29

	 	Bridgewater Commons

400 Commons Way, Space #322

Bridgewater, NJ 08807
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	30

	 	Fashion Outlets

32100 Las Vegas Blvd., Space #432

Primm, NV 89019
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	31

	 	The Oaks

562 W. Hillcrest

Thousand Oaks, CA 91360
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	32

	 	Bayside Marketplace

401 Biscayne Blvd, Space #N226

Miami, FL 33132
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	33

	 	Soho Lab

530 Broadway

New York, NY 10012
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	35

	 	Westfield Shoppingtown .Fox Hills Mall

249 Fox Hills Mall

Culver City, CA 90230
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	36

	 	Dolphin Mall

11401 N.W. 12th Street, Space #121

Miami, FL 33172
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	37

	 	Soho Lab

770 Market Street

San Francisco, CA 94102
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	38

	 	Glendale Galleria

2234 Glendale Galleria

Glendale, CA 91210
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	40

	 	4475 Mission Blvd., Space #A

San Diego, CA 92109
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	41

	 	Katy Mills

28500 Katy Freeway, Space #671

Katy, TX 77494
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	42

	 	Concord Mills

8111 Concord Mills Blvd., Space #694

Concord, NC 28027
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	43

	 	Universal City Walk

1000 Universal Center Dr., Space #V118

Universal City, CA 91608
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	44

	 	11033 E. Rosecrans Blvd., Space #A

Norwalk, CA 90650
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	45

	 	12017 E. Garvey Avenue, Space #A

El Monte, CA 91733
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	46

	 	Jersey Gardens Metro Mall

651 Kapkowski Blvd., Space #2061

Elizabeth, NJ 07201
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	47

	 	Opry Mills

428 Opry Mills Drive Space 230

Nashville, TN 37214
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	48

	 	140 W. 34th Street

New York, NY 10001
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	49

	 	Orlando Premium Outlets

8200 Vineland Ave., Space #1229

Orlando. FL 32821
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	50

	 	Arundel Mills

7000 Arundel Mills Circle

Hanover, MD 21076
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	51

	 	Las Americas

4345 Camino de la Plaza, Space #330

San Diego, CA 92173
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	52

	 	Franklin Mills

1701 Franklin Mills Circle, Space #202

Philadelphia, PA 19154
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	53

	 	Desert Hills Premium Outlets

48400 Seminole Drive, Space #408

Cabazon, CA 92230
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	54

	 	6518 Westheimer Road

Houston, TX 77057
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	55

	 	Folsom Premium Outlets

13000 Folsom Blvd., Space #1215

Folsom, CA 95630
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	56

	 	6202 Pacific Blvd.

Huntington Park, CA 90255
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	57

	 	3301 W. Okeechobee Road

Hialeah, FL 33012
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	58

	 	2600 Mission Street

San Francisco, CA 94110
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	59

	 	8460 Gulf Freeway

Houston, TX 77017
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	60

	 	Leon Valley

5751 N.W. Loop 410

Leon, TX 78238
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	61

	 	422 S. Azusa Avenue

Azusa, CA 91702
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	62

	 	Arrowhead Towne Center

7700 West Arrowhead Towne Center

Space# 1061

Glendale, Arizona 85308
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	63

	 	Grapevine Mills

3000 Grapevine Mills Pkwy, Space #G

Grapevine, TX 76051
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	64

	 	903 S.W. Military Drive

San Antonio, TX 78221
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	65

	 	2550 Long Beach Blvd.

Long Beach, CA 90806
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	66

	 	Waterford Lakes Town Center

517 N. Alafaya Trail

Orlando, FL 32828
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	67

	 	Discover Mills

5900 Sugarloaf Parkway, Space #225

Lawrenceville, GA 30043
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	68

	 	Snapper Creek

7186 S.W. 117th Ave.

Miami, FL 33183
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	69

	 	Miami Gateway

805.825 N.W. 167th Street

Miami, FL 33169
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	70

	 	Woodfield Mall

G.308 Woodfield Shopping Center

Schaumburg, IL 60173
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	71

	 	The Shops at Willow Bend

6121 West Park Blvd., Space #B116

Plano, TX 75093
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	75

	 	Colorado Mills

14500 W. Colfax Avenue Space # 259

Lakewood, CO 80401
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	77

	 	Third Street Promenade

1343 Third Street Promenade

Santa Monica, CA 90401
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	78

	 	Belz Canovanas

18400 State Rd. #3, Space #051

Canovanas, Puerto Rico 00729
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	79

	 	Las Vegas Outlet Center

7400 Las Vegas Blvd., South , Space #241

Las Vegas, NV 89123
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	80

	 	Tanger Outlet . San Marcos

4015 Interstate 35 South, Space #1070

San Marcos, TX 78666
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	81

	 	Partridge Creek

South side of M-59 Space #142

between Garfield & Romeo Plank

Clinton Township, MI
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	82

	 	Tanger Outlet . Lancaster

201 Stanley K. Tanger Blvd.

Lancaster, PA 17602
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	83

	 	5191 Whittier Boulevard

Los Angeles, CA 90022
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	84

	 	5805 Cutting Blvd.

El Cerrito, CA 94530
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	85

	 	Factory Outlet World.Orlando

4949 International Dr. Space 139

Orlando, FL 32819
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	86

	 	Tanger Outlet Center . Kittery II

360 US Route 1

Unit 101

Kittery, ME 03904
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	87

	 	Twelve Oaks

27500 Novi Road Space #126

Novi, MI 48377
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	88

	 	Queens Place

88.01 Queens Blvd., Space #121

Queens Center, NY 11373
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	90

	 	The Plaza at the King of Prussia

160 North Gulph Road, Suite 2057

King of Prussia, PA 19406
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	91

	 	86 E. Shaw Avenue

Fresno, CA 93710
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	92

	 	Mall of America

214.North Garden

Bloomington, MN 55425
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	93

	 	Carlsbad Premium Outlets

5610 Paseo Del Norte, Space #105

Carlsbad, CA 92008
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	94

	 	Tanger Outlet Center Wisconsin Dells

120 Gasser Road, Suite #1030

Baraboo, WI 53913
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	95

	 	Florida Mall

8001 S. Orange Blossom Trail Suite 312

Orlando, FL 32809
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	96

	 	Tanger Outlet . Myrtle Beach

10827 Kings Road, Space #895

North Myrtle Beach, SC 29572
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	97

	 	Washington Square

4801 W. North Ave.

Chicago, IL 60639
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	99

	 	Steinway Street

31.01 Steinway Street

Astoria, NY 11103
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	100

	 	Times Square . Reuters Building

3 Times Square

New York, NY 10036
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	102

	 	6100 Montana Avenue, Suite A

El Paso, TX 79925
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	103

	 	Houston Galleria II

5085 Westheimer

Suite B3615

Houston, TX 77056
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	104

	 	Tyson’s Corner

1961 Chain Bridge Rd. Space # D12L

McLean, VA 22102
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	107

	 	Ala Moana Shopping Center

1450 Ala Moana Blvd. Space #2033

Honolulu, HI 96814
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	108

	 	Westfield Shoppingtown . West County

142 West County Mall, Space #2170

Des Peres, MO 63131
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	111

	 	Prime Outlets at Grove City

Grove City Factory Shops #1020

1911 Leesburg . Grove City Road

Grove City, PA 16127
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	112

	 	Roosevelt Fields

630 Old Country Road, Space #1064

Garden City, NY 11530
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	113

	 	McLendon Plaza

10255 N. Freeway #F

Houston, TX 77037
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	114

	 	Las Vegas Premium Outlet

905 S. Grand Central Parkway

Suite 1720

Las Vegas, NV 89106
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	116

	 	Towne Center at Boca Raton

6000 Glades Rd. #1131

Boca Raton, FL 33431
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	118

	 	Stony Point Fashion Mall

9200 Stony Point Parkway, Space 111

Richmond, VA 23235
	 	

 
	 

	 	 	 	 
	 
	 	 	 	 
	119

	 	Southgate Mall

4260 Florin Rd.

Sacramento, CA 95823
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	120

	 	Pavillions at San Mateo

4900 Cutler Ave. NE Space #E1

Albuquerque, NM 87110
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	121

	 	Tanger Outlet Center .Five Oaks

1645 Parkway Space # 1390

Seveirville, TN 37862
	 	

 
	 

	 	 	 	 
	 
	 	 	 	 
	122

	 	Pine Trail Square Mall

1951 A North Military Trail

West Palm Beach, FL 33409
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	123

	 	Jackson Outlet Village

537 Monmouth Road, Suite 116A

Space 142

Jackson, NJ 08527
	 	

 
	 

	 	 	 	 
	 
	 	 	 	 
	124

	 	St. Augustine Outlet Center

2700 State Road 16, Space #813

St. Augustine, FL 32092
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	125

	 	Carolina Premium Outlets

1025 Industrial Park Drive, Space #740

Smithfield, NC 27577
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	126

	 	Fashion Show . Las Vegas

3200 Las Vegas Boulevard South,

Space #1240

Las Vegas, NV 89109
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	129

	 	Clearwater Mall

2663 Gulf To Bay Blvd.

Suite 910

Clearwater, FL 33759
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	130

	 	Tanger Outlet Center Charleston

4840 Tanger Outlet Blvd., Suite #501

North Charleston, SC 29418
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	131

	 	11505 Olive Street

St. Louis, MO 63141
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	132

	 	Aurora City Place

130 S. Abilene St., SM.3

Aurora, CO 80012
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	133

	 	The Corner Mall

417 Washington St.

Boston, MA 02108
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	134

	 	Dale Mabry

3804 W. Linebaugh Ave.

Tampa, FL 33618-8702
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	135

	 	Prime Outlets at Niagara Falls

1900 Military Dr. Space # 12

Niagara Falls, NY 14304
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	139

	 	Silver Sands Factory Stores

10676 Emerald Coast Parkway West

Space 139

Destin. Fl 32550
	 	

 
	 

	 	 	 	 
	 
	 	 	 	 
	141

	 	Potomac Mills

2700 Potomac Mills Circle, Space # 555

Prince William, Virginia 22192
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	142

	 	Sawgrass Mills

12801 West Sunrise Blvd. Space # 539

Sunrise, Florida 33323
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	143

	 	St. Louis Mills

5555 St. Louis Mills Blvd. Space # 532

Hazelwood, Missouri 63042
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	144

	 	Jersey Shore Premium Outlets

Route 66 & Essex Road

Block 135: Lots 1.01 and 6.01

Tinton Falls, NJ 07724
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	145

	 	Seattle Premium Outlets

10600 Quil Ceda Blvd. Suite 715

Tulalip, WA 98271
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	146

	 	Tanger Outlet Center Foley

2601 S McKenzie St. Ste W-9

Foley, AL 36535
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	147

	 	Rehoboth I Tanger Otl.

36470 seaside outlet drive

Rehoboth Beach, DE 19971
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	148

	 	Locust Grove Tanger Otl. Ctr.

1000 Tanger Drive Ste 624

Locust Grove, GA 30248
	 	

 
	 

	 	 	 	 
	 
	 	 	 	 
	149

	 	Great Lakes Crossing

4000 Baldwin Road

Auburn Hills, MI 48326
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	150

	 	North Georgia Premium Outlets

800 Highway 400 South Suite 1050

Dawsonville, GA 30534
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	151

	 	Clinton Crossing Premium Outlets

20-A Killingworth Turnpike Ste 410

Clinton, CT 06413
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	152

	 	Bellevue Square

240 Bellevue Square

Bellevue, WA 98004
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	153

	 	Tilton

120 Laconia Road Space # 306

Tilton, NH 03276-5238
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	154

	 	Round Rock Premium Outlets

4401 North IH-35, Suite #729

Round Rock, TX 78664
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	155

	 	Gaslamp — SoHo Lab

480 5th Avenue

San Diego, CA 92101
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	157

	 	Branson Tanger Outlet Center

300 Tanger Boulevard Space 501

Branson, MO 65616
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	158

	 	The Pier at Ceasars (Soho Lab)

One Atlantic Ocean Suite 1236

Atlantic City, NJ 08401
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	159

	 	Westfield Topanga Plaza

6600 Topanga Canyon Blvd. Suite 43A

Canoga Park, CA 91303
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	160

	 	Vegas Town Square

Interstates 15 and 215 & Las Vegas Blvd.

Las Vegas, NV
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	161

	 	North Park Center

8080 North Central Expressway

Dallas, Texas 75206
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	162

	 	Rio Grande Outlet Center

5001 East Expressway 83, Suite #712

Mercedes, TX 78570
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	163

	 	Park City Factory Outlets — Tanger

6699 North Landmark Dr

Park City, UT 84098
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	164

	 	Osage Beach Premium Outlets

4540 Highway 54 Space Q1

Osage Beach, MO 65065
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	165

	 	Hollywood & Highland Center

6801 Hollywood Boulevard Suite 329

Hollywood, CA 90028
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	168

	 	Tempe Market Place

SWC Loop 101 & 202 Freeways

Tempe, AZ
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	169

	 	Queens Center - Soho Lab

90-15 Queens Blvd, Space F03

Elmhurst, NY 11373
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	170

	 	Woodbridge Center

2335 Woodbridge Center

Woodbridge, NJ 07095
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	172

	 	Atlantic City Outlets

1931 Atlantic Ave. Space #1155

Atlantic City, NJ 08401
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	173

	 	Prime.Orlando

4949 International Dr.

Orlando, FL 32819
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	174

	 	Cherry Creek

3000 East First Ave. Space # 134

Denver, CO 80206
	 	

 
	 

	 	 
	 	 
	 
	 	 	 	 
	175

	 	International Plaza

2223 N. Westshore Blvd. Space #184

Tampa, FL
	 	

 
	 

	 	 
	 	 

50

Schedule 7.1(f) – Environmental Matters

None

51

Schedule 7.1(h) – License Agreements

Trademark License Agreement between Ecko.Complex, LLC d/b/a Ecko Unltd. and Skechers USA, Inc. II
and Skechers International II, dated April 7, 2003, as amended.

Trademark License Agreement between Zoo York, LLC and Skechers USA, Inc. II and Skechers SARL,
dated December 5, 2005, as amended.

Trademark License Agreement between Flight Club, LLC and Skechers USA, Inc. II and Skechers SARL,
dated February      , 2006.

Exclusive Footwear License Letter Agreement between Fraser Ross and A List, Inc., d/b/a Kitson and
Skechers USA, Inc. and its affiliates, dated April 29, 2005, as amended.

Exclusive Denim Products and T-Shirt License Letter Agreement between Fraser Ross and A List, Inc.,
d/b/a Kitson and Skechers USA, Inc. and its affiliates, dated January 26, 2006, as amended.

Merchandise License Agreement between Larry Bird and Skechers USA, Inc., dated February 4, 2005, as
amended.

Personal Services, Endorsement and Merchandising License Agreement between Jayceon Taylor aka The
Game and Skechers USA, Inc., dated April 14, 2005, as amended.

52

ANNEX A – Collateral Reporting Provisions

(g) Collateral Reporting and Information. (i) The Borrowers agree to furnish to the
Agent:

(A) On or before the 20th day of each month (but twice per month within five (5) days after
the end of the applicable period upon Agent’s request if average Excess Availability is less than
$35,000,000 for any period of 90 consecutive days), a borrowing base certificate in form and
substance satisfactory to the Agent, certified by the treasurer or chief financial officer of the
Funds Administrator (or any other authorized officer satisfactory to the Agent), together with such
confirmatory schedules of Trade Accounts Receivable and Inventory (in form and substance
satisfactory to the Agent) as the Agent reasonably may request. The Agent, in its sole discretion,
may permit the Funds Administrator to access CIT’s System for the purpose (in addition to those set
forth in Section 3.7) of completing and submitting borrowing base certificates when
required hereunder.

(B) On or before the 20th day of each month (but more frequently upon the Agent’s reasonable
request), a detailed and summary aging report of the Trade Accounts Receivable existing as of the
last day of the preceding month, a roll-forward of the Trade Accounts Receivable from the first day
of the preceding month through the last day of the preceding month, and a summary of Inventory as
of the last day of the preceding month, all in such form as the Agent reasonably shall require,
certified by the treasurer or the chief financial officer of the Funds Administrator (or any other
authorized officer satisfactory to the Agent), together with (i) a reconciliation, as of the last
day of the preceding month, of the Borrowers’ Trade Accounts Receivable aging report to the
Borrowers’ general ledger and applicable borrowing base certificate delivered by the Borrowers to
the Agent, and (ii) if required by the Agent, such other information sufficient to allow the Agent
to update the amount of Eligible Accounts Receivable and Eligible Inventory.

(C) Prompt written disclosure of (i) all matters adversely affecting the value, enforceability
or collectibility of the Trade Accounts Receivable of the Borrowers, (ii) all significant customer
disputes, offsets, defenses, counterclaims, returns, rejections and all reclaimed or repossessed
merchandise or goods, and (iii) all matters adversely affecting the value or marketability of the
Inventory, all in such detail and format as the Agent reasonably may require, provided that
to the extent that any such matter would not have a Material Adverse Effect, the Borrowers may
disclose such matter to the Agent when the Borrowers provide the Agent with the borrowing base
certificate described in clause (A) above.

(D) Promptly upon the Agent’s request, a report summarizing the amount and location of the
Borrowers’ Qualified Cash.

(E) Prior written notice of any change in the location of any Collateral and any material
change in type, quantity, quality or mix of the Inventory.

(F) From time to time, access to the Borrowers’ computers, electronic media, software programs
(including any electronic records, contracts and signatures) and such other documentation and
information relating to the Trade Accounts Receivable, Inventory and other Collateral as the Agent
reasonably may require.

(ii) The Borrowers may deliver to the Agent any borrowing base certificate, collateral report
or other material that the Borrowers are required to deliver to the Agent under clauses (1) and (2)
of Section 7.2(g)(i) by e-mail or other electronic transmission (an “Electronic
Transmission”), subject to the following terms:

(A) Each Electronic Transmission must be sent by the treasurer or chief financial officer of
the Funds Administrator (or any other authorized officer satisfactory to the Agent), and must be
addressed to the loan officer and the collateral analyst of the Agent that handle the Borrowers’
account, as designated by the Agent from time to time. If any Electronic Transmission is returned
to the sender as undeliverable, the material included in such Electronic Transmission must be
delivered to the intended recipient in the manner required by Section 12.6 hereof.

(B) Each certificate, collateral report or other material contained in an Electronic
Transmission must be in a “pdf” or other imaging format and, to the extent that such material must
be certified by an officer of the Funds Administrator under this Section 7.2(g), must
contain the signature of the officer submitting the Electronic Transmission. As provided in
Section 12.6, any signature on a certificate, collateral report or other material contained
in an Electronic Transmission shall constitute a valid signature for purposes hereof. The Agent
may rely upon, and assume the authenticity of, any such signature, and any material containing such
signature shall constitute an “authenticated” record for purposes of the Uniform Commercial Code
and shall satisfy the requirements of any applicable statute of frauds.

(C) Each Electronic Transmission must contain the name and title of the officer of the Funds
Administrator transmitting the Electronic Transmission, and shall include the following text in the
body of the Electronic Transmission:

“Pursuant to the Second Amended and Restated Loan and Security Agreement dated May
31, 2006 among Skechers U.S.A., Inc. (“Skechers”), Skechers U.S.A., Inc. II
(“Skechers II”), Skechers By Mail, Inc. (“Skechers By Mail”), and
310 Global Brands, Inc. (“310”, and together with Skechers, Skechers II and
Skechers By Mail individually a “Borrower” and collectively and jointly and
severally, the “Borrowers”), the Lenders that are parties thereto and The
CIT Group/Commercial Services, Inc., as Agent for the Lenders (the “Agent”), the
undersigned      [title of submitting officer] of the Funds Administrator
hereby delivers to the Agent the Borrowers’      [describe submitted
reports]. The Funds Administrator, on behalf of the Borrowers, represents and
warrants to the Agent and the Lenders that the materials included in this Electronic
Transmission are true, correct, and complete in all material respects. The name of
the officer of the Funds Administrator set forth in this e-mail constitutes the
signature of such officer, and this e-mail shall constitute an authenticated record
of the Borrowers.”

(D) The Funds Administrator agrees to maintain in its files the original versions of all
certificates, collateral reports and other materials delivered to the Agent by means of an
Electronic Transmission and agrees to furnish to the Agent such original versions within five (5)
Business Days of the Agent’s request for such materials, signed and certified (to the extent
required hereunder) by the officer submitting the Electronic Transmission.

(iii) Each Borrower authorizes the Funds Administrator, on behalf of such Borrower, to deliver
to the Agent all borrowing base certificates, collateral reports and other material that the
Borrowers are required to deliver to the Agent under this Section 7.2(g). Each Borrower
hereby authorizes the Agent to regard the Borrowers’ printed name or rubber stamp signature on
assignment schedules or invoices as the equivalent of a manual signature by the Borrowers’
authorized officers or agents. The Borrowers’ failure to promptly deliver to the Agent any
schedule, report, statement or other information set forth in this Section 7.2(g) shall not
affect, diminish, modify or otherwise limit the Agent’s security interests in the Collateral.

53EX-10.1

NOTE: MATERIAL HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATEMENT. THE

OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES EXCHANGE COMMISSION.

MARKETING AGREEMENT

This Marketing Agreement (this “Agreement”), dated as of April 7, 2006 (the
“Effective Date”), is between EDENTIFY, INC., a Delaware corporation located at 74 W. Broad
Street, Suite 350, Bethlehem, Pennsylvania 18018 (“Edentify”), and TRILEGIANT CORPORATION,
a Delaware corporation located at 100 Connecticut Avenue, Norwalk, Connecticut 06850
(“Trilegiant”).

W I T N E S S E T H

WHEREAS, Edentify has developed the IDAssessTM, IDScreenTM and IDAlertTM products, which are
automated systems that detect, analyze and score inconsistencies in a consumer’s personal
information profiles (each, a “Product” and, collectively, the “Products”); and

WHEREAS, Edentify desires Trilegiant to, and Trilegiant desires to, market the Products to
members (collectively, the “Members”) of its membership programs (including, but not
limited to, PrivacyGuard, PC Safety, ID Secure, Identity Sweep, Hotline and any program(s)
established by Trilegiant on or subsequent to the Effective Date, collectively, the
“Programs”), subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and conditions
contained in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Edentify and Trilegiant hereby agree as follows:

1. Non-Solicitation; Non-Competition; Acquisition Notification.

(a) At any time during the Term (as defined herein), Edentify shall not, either by itself or
in conjunction with any third party, use direct mail, outbound telemarketing, inbound
telemarketing, internet marketing or marketing via email to knowingly solicit or knowingly permit
the solicitation of a Member for any Product until the earliest of the following: (i) such Member’s
membership in the related Program expires, (ii) such Member’s membership in the related Program is
cancelled by Trilegiant or pursuant to Trilegiant’s written instruction, or (iii) for one hundred
and eighty (180) days after such Member’s membership in the related Program is cancelled by such
Member.

(b) At any time during the Term, Edentify shall not, either by itself or in conjunction with
any third party, without Trilegiant’s prior written consent, market, sell or otherwise agree to
provide any Product, or license any Edentify Intellectual Property (as defined herein), to or
through (i) any of Trilegiant’s clients listed on Schedule 1(b)-1 attached hereto (each, a
“Trilegiant Restricted Client” and, collectively, the “Trilegiant Restricted
Clients”) in respect of consumer marketing, or (ii) any of Trilegiant’s competitors listed on
Schedule 1(b)-2 attached hereto (collectively, the “Trilegiant Competitors”). Trilegiant
shall have the right, during the Term, to add three (3) additional entities (“Trilegiant
Additional Entities”) to each list of entities set forth on each of Schedule 1(b)-1 and
Schedule 1(b)-2 by providing thirty (30) days’ advance written notice to Edentify in respect
thereof. Notwithstanding anything herein to the contrary, subject to the following sentence,
Trilegiant shall not be permitted to add any entity as a Trilegiant Additional Entity if Edentify
has an existing business relationship with such entity as of the date that Trilegiant seeks to add
such entity. Edentify shall notify Trilegiant, in writing, within five (5) business days of
receiving notice from Trilegiant of the proposed Trilegiant Additional Entities in the event that
such a business relationship exists, and such written notice shall attach documentation, reasonably
satisfactory to Trilegiant, supporting the existence of such business relationship.

(c) At any time during the Term, Trilegiant shall not, either by itself or in conjunction with
any third party, without Edentify’s prior written consent, market, sell or otherwise agree to
provide any Product (other than any MyPublicInfo, Inc. (“MPI”) product containing a Product
or Products or data in respect of a Product or Products), or license any Edentify Intellectual
Property (as defined herein), to or through (i) any of Edentify’s clients listed on Schedule 1(c)-1
attached hereto (each, an “Edentify Restricted Client” and, collectively, the “Edentify
Restricted Clients”) in respect of consumer marketing, or (ii) any of Edentify’s competitors
listed on Schedule 1(c)-2 attached hereto (collectively, the “Edentify Competitors”).
Edentify shall have the right, during the Term, to add three (3) additional entities (“Edentify
Additional Entities”) to each list of entities set forth on each of Schedule 1(c)-1 or Schedule
1(c)-2 by providing thirty (30) days advance written notice to Trilegiant in respect thereof.
Notwithstanding anything herein to the contrary, subject to the following sentence, Edentify shall
not be permitted to add any entity as an Edentify Additional Entity if Trilegiant has an existing
business relationship with such entity as of the date that Edentify seeks to add such entity.
Trilegiant shall notify Edentify, in writing, within five (5) business days of receiving notice
from Edentify of the proposed Edentify Additional Entities in the event that such a business
relationship exists, and such written notice shall attach documentation, reasonably satisfactory to
Edentify, supporting the existence of such business relationship.

(d) [REDACTED]

Notwithstanding anything contained in this paragraph 1(d), Edentify shall not be obligated to
take any actions that would cause Edentify to be in violation of Nevada Corporate Code, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the
regulations thereunder or other applicable federal or state securities laws or regulations.

2. Marketing; Branding.

(a) Trilegiant shall, in its sole discretion, market the Products to Members. Trilegiant’s
agreement to market the Products is non-exclusive, and, therefore, (i) subject to Sections 1(a) and
1(b) hereof, Edentify may engage third parties to market the Products and (ii) Trilegiant may offer
other products and/or services, whether or not the same or substantially similar to a Product, at
any time during or after the Term. The application of a link on Program websites to websites owned
or managed by MyPublicInfo, Inc. (“MPI”), and the use of a Product as a benefit in respect
of a Program or as a stand-alone product for a newly-established Program shall be determined by
Trilegiant in its sole discretion. Trilegiant shall consult with, and obtain the written consent
of, Edentify in the event that Trilegiant desires to apply a link on Program websites to
www.edentify.us (the “Edentify Website”). If requested, Edentify shall consult
with Trilegiant in the development of a plan for marketing the Products to Members, whether such
assistance is directly with Trilegiant or any of its clients or partners.

(b) Trilegiant shall have the right, in its sole discretion, to establish and create, during
the Term, multiple unique branding or co-branding of the Products (such unique brand and co-branded
names, collectively, the “Trilegiant Brand Names”). If requested, Edentify shall consult
with Trilegiant in connection therewith. Trilegiant shall have the right, in its sole discretion,
to market the Products to Members under the Trilegiant Brand Names. To the extent Trilegiant is
working directly with Edentify in respect of the Products, the parties hereto shall mutually agree
upon the development, use and implementation of the Trilegiant Brand Names.

3. Provision of Services; Service Level Standards; Source Code.

(a) Edentify shall provide to (A) all Members that purchase the Products as contemplated
pursuant to this Agreement, (B) all Members that are entitled to use of the Products as Members of
a Program offering the Products as a benefit of such Program and (C) all Members of a
newly-established Program offering the Products as a stand-alone benefit the following:

(i) the Products as described on the Edentify Website;

(ii) Scoring services substantially meeting the functional and technical specifications of
Edentify solutions as set forth on the attached Schedule 3(b); and

(iii) all intellectual property licenses set forth and described herein (including, without
limitation, Section 11).

(c) Edentify shall notify Trilegiant, in writing, ninety (90) days prior to the effective date
of any material modification of the functional specifications of any Product. Except as may be
required by law, Edentify shall not materially diminish the benefits of any Product without the
prior written approval of Trilegiant. To the extent any obligation of Edentify under this Section
3(b) is qualified by the contrary requirements of applicable law or regulation, Edentify shall use
its best efforts to minimize the amount and/or effect of any such restrictions (to the extent
permitted by applicable law or regulation) and shall reasonably cooperate with Trilegiant in
connection therewith.

(d) Each Product shall comply with the standards and requirements set forth in this Agreement.
Edentify shall provide the Products through qualified personnel and shall appoint a designated
project manager as a primary point of contact for Trilegiant. Edentify shall provide the Products
with due diligence and in a professional and workmanlike manner. Except as otherwise specifically
stated in this Agreement, each Product shall be provided to Members with the same warranty as is
provided to other Edentify customers of such Product. Edentify shall use its best efforts
continuously throughout the Term to ensure that each Product is substantially and in the aggregate
no less valuable to Members than such Product is to other Edentify consumers on the Effective Date.

(e) In performing its obligations hereunder, Edentify shall comply with the service level
standards set forth below and elsewhere herein (collectively, the “Service Level
Standards”). Edentify shall ensure sufficient capacity and system redundancy to ensure
ninety-nine point five percent (99.5%) uptime of the Edentify Website as measured on a monthly
basis; provided, however, that the uptime measurement shall not include downtime
attributable to scheduled maintenance of which Edentify has provided Trilegiant with at least seven
(7) days advance written notice (“Uptime Requirement”). Scheduled maintenance outages will
be limited to two 2-hour outages per month and will be scheduled between 2:00 a.m. — 6:00 a.m. EST.
Edentify shall use its best efforts to ensure that downtime for scheduled maintenance will
minimize disruption of service. In the event that the Edentify Website is not functional, Edentify
will promptly notify MPI. The material failure by Edentify to meet the Uptime Requirement in two
consecutive calendar months shall be deemed a material breach of this Agreement. In addition,
Edentify shall (1) use best efforts to ensure compliance with a mutually agreed-upon file format,
and to the extent Edentify does not so comply, Edentify shall have twenty-four (24) hours to cure
such non-compliance in all respects, and (2) use best efforts to achieve a goal of a maximum of two
(2) hours for disaster recovery (i.e., resumption of basic business functionality).

(f) No later than fifteen (15) business days following the Effective Date and, to the extent
any material changes have been made thereto, on each anniversary of the Effective Date during the
Term, Edentify shall deliver to an independent third-party escrow agent, to be mutually agreed upon
by the parties hereto (the “Escrow Agent”), a copy of the source code form of each
Product’s software (including any comments or documentation available with respect thereto), a
listing thereof, batch processes and database schemas (collectively, the “Delivered
Material”). The Delivered Material shall be provided in a sealed package which shall only be
delivered to Trilegiant pursuant to the terms of the Escrow Agreement among Edentify, as depositor,
Trilegiant, and beneficiary, and the Escrow Agent (the “Escrow Agreement”). If the Release
Condition (as defined in Section 3(g) below) occurs, Edentify shall use its best efforts to
instruct Trilegiant in the operation of the Products and the Delivered Material. Such efforts
shall include, but not be limited to, (i) identifying to Trilegiant any third party service
providers who provide services with respect to operation and functioning of the Products, (ii) upon
the request of Trilegiant and to the extent not prohibited by Edentify’s contractual
confidentiality obligations, providing a copy of any agreements with such third party service
providers and any related documentation to Trilegiant, and (iii) upon the request of Trilegiant,
making best efforts to organize meetings between a Trilegiant representative and a Edentify
representative and/or third party service provider representative with respect to the operation and
functioning of the Products. Furthermore, in the event that the Release Condition occurs, Edentify
shall use its best efforts in assisting Trilegiant in obtaining similar support for the Products
and the Delivered Material from such third party provider as Edentify is receiving prior to such
Release Condition.

(g) Edentify hereby grants to Trilegiant a perpetual, limited, non-transferable,
non-exclusive, royalty-free license to use the Delivered Material for the purpose of providing the
Products to Members if Edentify ceases doing business and its business is not continued by another
entity (the “Release Condition”). Pursuant to the Escrow Agreement, upon the occurrence of
a Release Condition, Trilegiant shall send the Escrow Agent a release request (the “Release
Request”). Upon receipt of the Release Request, the Escrow Agent shall, within five (5)
business days, deliver a written notice of such request to Edentify (the “Notice of Release
Request”). Pursuant to the Escrow Agreement, Edentify shall have ten (10) business days to
deliver contrary instructions to the Escrow Agent (“Contrary Instructions”). Upon receipt
of Contrary Instructions, if any, the Escrow Agent will be required to send a copy of the Contrary
Instructions to Trilegiant and store the Delivered Material without release pending either (i)
joint instructions from Edentify and Trilegiant that accept release of the Delivered Material or
(ii) receipt of an order from a court of competent jurisdiction.

(h) All rights and licenses granted under or pursuant to this Agreement by Edentify to
Trilegiant are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the United
States Bankruptcy Code (the “Code”), licenses to rights to “intellectual property” as
defined under the Code. The parties hereto agree that Trilegiant, as a limited licensee of such
rights under this Agreement, shall retain and may fully exercise all of its rights and elections
under the Code. The parties hereto further agree that, in the event of the commencement of
bankruptcy proceedings by or against Edentify under the Code, Trilegiant shall be entitled to
retain all of its rights under this Agreement.

4. Customer Service Obligations. Members entitled to use the Products as a Member of
a Trilegiant Edentify Program (as defined below) shall be directed to Trilegiant’s customer service
department regarding all questions or problems relating to the Products. Edentify agrees to
provide training as of the Effective Date and on an ongoing basis throughout the Term to
Trilegiant’s customer service department staff on Edentify and the Products needed by such staff to
provide adequate customer service to Members. The dates, location and amount of training shall be
jointly determined. Edentify reserves the right, however, to charge for such training in the event
that such costs become greater than incidental to Edentify. In such event, Edentify will provide
Trilegiant with forty-five (45) days advance written notice thereof. As used herein, a
“Trilegiant Edentify Program” shall mean (i) any Program containing a Product as one of
many, or as the sole, benefit offered to Members of such Program, (ii) any Program, the website of
which provides a link to the Edentify Website or otherwise contains other marketing materials
relating to Edentify.

5. Confidentiality.

(a) Member Information. All personally identifiable information, including name,
address, telephone number, social security number and unique account information, of Members
created through their use of a Product in connection herewith (collectively, “Member
Information”), shall be owned by, and be the Confidential Information (as defined below) of,
Trilegiant. All personally identifiable information, including name, address, telephone number,
social security number and unique account information, of any customers of Edentify other than
Members shall be the Confidential Information of Edentify. The Receiving Party (as defined below)
will treat all such Confidential Information in accordance with the provisions of Section 5(b)
below. All Member Information shall at all times be subject to the terms of the privacy policy
posted on the Edentify Website which shall be in a form mutually agreed to by the parties.

(b) Confidential Information. Each party agrees that the marketing materials,
information and techniques provided by the other party (the “Disclosing Party”) with
respect to marketing of the Products hereunder, and all other proprietary non-public information
provided by the Disclosing Party to the other party (the “Receiving Party”) hereunder,
whether oral or written, and whether or not labeled as confidential by such party
(“Confidential Information”), is confidential and proprietary to the Disclosing Party and
is received in confidence by the Receiving Party, and the Receiving Party will not, directly or
indirectly, use, disclose, reproduce, dispose of, sell or otherwise transfer such information in
any manner except as required to perform such party’s obligations hereunder or as otherwise
expressly provided herein. Notwithstanding the foregoing, Confidential Information does not
include information which: (i) is in the public domain at the time of the Disclosing Party’s
communication to the Receiving Party; (ii) entered the public domain through no fault of the
Receiving Party subsequent to the time of the Disclosing Party’s communication thereof to the
Receiving Party; (iii) was in the Receiving Party’s possession, free of any obligation of
confidence, at the time of the Disclosing Party’s communication thereof to the Receiving Party;
(iv) was rightfully communicated to the Receiving Party free of any obligation of confidence
subsequent to the time of the Disclosing Party’s communication thereof to the Receiving Party; or
(v) was developed by employees or agents of the Receiving Party, independently of and without
reference to the Confidential Information.

(c) Confidentiality Obligation. Each Disclosing Party’s Confidential Information
shall at all times remain the sole and exclusive property of such Disclosing Party, and each
Receiving Party shall indefinitely: (i) exercise the same degree of care and protection (but no
less than a reasonable degree of care and protection) with respect to the Confidential Information
of the other as such Receiving Party exercises with respect to its own information of a like
nature; (ii) not directly or indirectly disclose, copy, transfer or allow access to any of the
Confidential Information; and (iii) not utilize any of the Confidential Information for any purpose
other than as authorized in this Agreement. Notwithstanding the foregoing, a Receiving Party may,
in turn, disclose the Confidential Information of a Disclosing Party to those of its employees or
third-parties performing services for the Receiving Party directly related to the purposes of this
Agreement that have both a need to know, and a legal duty to the Receiving Party to protect, said
Confidential Information, and to its professional advisors. Because of the unique nature of the
Confidential Information, each party acknowledges that the other may suffer irreparable harm in the
event of a breach by it of any obligation provided in this Section 5 and that any remedy at law for
any breach of any obligation provided in this Section 5 may be inadequate. In the event of such a
breach, the non-breaching party will, in addition to any other remedies at law, be entitled to seek
injunctive or other equitable relief, without the necessity of posting bond. The exercise of any of
the foregoing rights and remedies are cumulative and not exclusive of any other rights or remedies.

(d) Limited Exceptions. Nothing in this Agreement shall prevent either party from
disclosing Confidential Information to the extent that it is legally compelled to do so by any
governmental investigative or judicial agency pursuant to proceedings over which such agency has
jurisdiction; provided, however, that prior to any such disclosure, the party
shall: (i) assert the confidential nature of the Confidential Information to the agency; (ii) to
the extent legally permissible, promptly notify the other party of the agency’s order or request to
disclose; and (iii) reasonably cooperate with the other party to protect against any such
disclosure and/or obtain a protective order narrowing the scope of the compelled disclosure and
protecting its confidentiality.

(e) Return of Confidential Information. Upon termination of the license rights
granted hereunder, each Receiving Party shall promptly return to the Disclosing Party all materials
that were delivered to it by the Disclosing Party, including, without limitation, all tangible
forms of Confidential Information and any copies thereof. Upon return thereof, each Receiving
Party shall cause one of its officers or principals to certify to the Disclosing Party in writing
that it has complied with this Section 5(e).

6. Representations, Warranties and Covenants.

(a) Edentify’s Representations, Warranties and Covenants. Edentify represents,
warrants and covenants that: (i) it is duly qualified and licensed to do business and to carry out
its obligations under this Agreement and that, entering into this Agreement does not violate any
law, regulation, third party right, license or agreement to which it is a party; (ii) in fulfilling
its obligations pursuant to this Agreement and in obtaining any and all information, content and
data in respect of the Products, it will comply with all federal and state laws, rules and
regulations applicable to Edentify (including without limitation, if applicable to Edentify, the
Children’s Online Privacy Protection Act of 1998 and regulations promulgated thereunder) and
Edentify’s privacy policy applicable to the Products attached hereto as Schedule 6(a) (the
“Edentify Privacy Policy”); and (iii) to the extent Trilegiant is working directly with
Edentify in respect of the Products, each Product, as provided under this Agreement, shall be (A)
materially free from defects in title, design, material and workmanship, and (B) in conformance
with applicable law, the Service Level Standards and any other requirements of this Agreement.

(b) Trilegiant’s Representations, Warranties and Covenants. Trilegiant represents,
warrants and covenants that: (i) it is duly qualified and licensed to do business and to carry out
its obligations under this Agreement and that entering into this Agreement does not violate any
law, regulation or agreement to which it is a party; and (ii) in fulfilling its obligations
pursuant to this Agreement, it will comply with all applicable federal and state laws, rules and
regulations (including without limitation the Children’s Online Privacy Protection Act of 1998 and
regulations promulgated thereunder) and the Edentify Privacy Policy.

7. Payments.

(a) License Fee. To the extent Trilegiant conducts, in its sole discretion, a
successful security audit of Edentify’s business practices in accordance with Section 12 hereof
prior to the Effective Date, Trilegiant shall pay Edentify a license fee in an amount equal to
[REDACTED] (the “License Fee”) as follows: (i) [REDACTED] payable within thirty (30) days
of the Effective Date; and (ii) [REDACTED] payable on each anniversary date of the Effective Date
during the Term.

(b) Monthly Payments. Trilegiant shall pay Edentify, on the fifteenth
(15th) business day of each calendar month during the Term, monthly fees in respect of
active Members of Trilegiant Edentify Programs as of the immediately preceding calendar month (the
“Determination Month”) in accordance with the following chart:

[TABLE REDACTED]

*To be calculated on the first day of the applicable Determination Month.

**Pricing hereunder is incremental. For the avoidance of doubt, if there are 1,000,000 Members
in the aggregate in Trilegiant Edentify Programs, Trilegiant will be obligated to pay Edentify
as follows:

[REDACTED]

(c) Research and Development. To the extent (i) Edentify approaches Trilegiant or
(ii) Trilegiant approaches Edentify with an idea for a new product, service or benefit, and
Trilegiant subsequently agrees to fund the research and development by Edentify of such product,
service or benefit, once developed, Trilegiant shall have the exclusive right to such product,
service or benefit and no other entity or individual shall have the right to purchase, use or
otherwise be entitled to such product, service or benefit without Trilegiant’s prior written
consent

8. Reporting.

(a) To the extent Trilegiant is working directly with Edentify in respect of the Products,
Edentify shall prepare, and on each Friday during the Term, deliver to Trilegiant, a report
detailing, for the immediately preceding week, web site performance statistics which include, but
are not limited to, the following information: (i) the number of times a person connects to the
Edentify Website, (ii) the origin of all connections to the Edentify Website (i.e., what specific
Program website link did the person connect to the Edentify Website from), (iii) the number of
persons that connect to the Edentify Website, (iv) the number of unique persons that connect to the
Edentify Website, and (v) the number of Products ordered by Product.

(b) To the extent Trilegiant is working directly with Edentify in respect of the Products,
Edentify shall prepare, and on the fifth (5th) business day of each calendar month
during the Term, deliver to Trilegiant, a report detailing, for the immediately preceding calendar
month, (i) a summary of the weekly website performance statistics set forth in Section 8(a) above,
and (ii) the number of Products ordered by Product.

9. Indemnification.

(a) Mutual Indemnification Obligations. Each party (the “Indemnifying Party”)
shall indemnify, defend and hold harmless the other party, its parents, subsidiaries, affiliates,
directors, officers, employees, agents and subcontractors (any such party seeking indemnification,
the “Indemnified Party”) from and against any and all liabilities, losses, damages and
expenses (including reasonable attorneys’ fees and expenses) arising from or relating to (i) any
claim arising with respect to any breach of this Agreement by the Indemnifying Party, or (ii) any
legal claim, defense, demand, offset, counterclaim, right or cause of action asserted, instituted
or threatened against the Indemnified Party (a “Claim”) made by any customer, Member,
governmental authority or third party to the extent arising out of the operations or activities of
the Indemnifying Party in connection with this Agreement.

(b) Edentify Indemnification Obligations. Edentify shall indemnify, defend and hold
harmless Trilegiant, its parents, subsidiaries, affiliates, directors, officers, employees, agents,
subcontractors and the Members from and against any and all liabilities, losses, damages and
expenses (including reasonable attorneys’ fees and expenses) arising from or relating to (i) the
injury of or damage to any person or real or tangible property to the extent such injury or damage
arises out of the acts or omissions of Edentify, its employees, agents and/or subcontractors,
whether in connection with their performance under this Agreement or not, or (ii) any claim that a
Product or the intellectual property associated therewith infringe upon or are a misappropriation
of the proprietary rights of any third party.

(c) Trilegiant Indemnification Obligations. Trilegiant shall indemnify, defend and
hold harmless Edentify, its parents, subsidiaries, affiliates, directors, officers, employees,
agents, subcontractors from and against any and all liabilities, losses, damages and expenses
(including reasonable attorneys’ fees and expenses) arising from or relating to the injury of or
damage to any person or real or tangible property to the extent such injury or damage arises out of
the acts or omissions of Trilegiant, its employees, agents and/or subcontractors, whether in
connection with their performance under this Agreement or not.

(d) Indemnification Procedures. The Indemnified Party will notify the Indemnifying
Party in a reasonably prompt manner of any Claim for which the Indemnified Party is seeking
indemnification pursuant to this Section 9. The Indemnifying Party may thereafter assume control of
such Claim, provided that the Indemnified Party will have the right to participate in the
defense or settlement of such Claim. Neither the Indemnifying Party nor the Indemnified Party may
settle such Claim or consent to any judgment with respect thereto without the consent of the other
party hereto (which consent may not be unreasonably withheld or delayed). The Indemnified Party
will provide the Indemnifying Party with a reasonable amount of assistance in connection with
defending or settling any such Claim.

10. Limitations on Liability.

(a) No Consequential Damages. EXCEPT (I) IN CONNECTION WITH ANY BREACH OF SECTION 5
OR (II) FOR AMOUNTS PAYABLE IN CONNECTION WITH A PARTY’S INDEMNITY OBLIGATIONS UNDER SECTION 9, IN
NO EVENT WILL EITHER PARTY HERETO BE LIABLE TO THE OTHER FOR ANY SPECIAL, INDIRECT, INCIDENTAL,
CONSEQUENTIAL OR EXEMPLARY DAMAGES (INCLUDING, WITHOUT LIMITATION, LOSS OF REVENUE OR ANTICIPATED
PROFITS OR LOST BUSINESS), EVEN IF SUCH PARTY HAS BEEN OR WILL HAVE BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES.

(b) Limitation of Liability. EXCEPT (I) IN CONNECTION WITH ANY BREACH OF SECTION 5,
(II) FOR AMOUNTS PAYABLE IN CONNECTION WITH A PARTY’S INDEMNITY OBLIGATIONS UNDER SECTION 9, OR
(III) IN CONNECTION WITH A PARTY’S ACT OF GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR VIOLATION OF LAW
IN THE PERFORMANCE OR NONPERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT, IF EITHER PARTY SHALL
BE LIABLE TO THE OTHER PARTY FOR ANY MATTER RELATING TO OR ARISING FROM THIS AGREEMENT, WHETHER
BASED UPON AN ACTION OR CLAIM IN CONTRACT, EQUITY, NEGLIGENCE, INTENDED CONDUCT OR OTHERWISE
(INCLUDING ANY ACTION OR CLAIM ARISING FROM THE ACTS OR OMISSIONS, NEGLIGENT OR OTHERWISE, OF THE
LIABLE PARTY), THE AGGREGATE AMOUNT OF DAMAGES RECOVERABLE AGAINST THE LIABLE PARTY WITH RESPECT TO
ANY AND ALL BREACHES, PERFORMANCE, NONPERFORMANCE, ACTS OR OMISSIONS HEREUNDER WILL NOT EXCEED
[REDACTED].

11. Intellectual Property; Intellectual Property Representation and Warranty.

(a) Edentify specifically acknowledges that this Agreement does not confer upon Edentify any
interest in or right to use any trademark, service mark or other intellectual property right of
Trilegiant or its affiliates, including, without limitation, the Trilegiant Brand Names, any
solicitation and/or fulfillment materials prepared by Trilegiant with respect to the Products and
any other creative materials prepared by Trilegiant used to market and/or fulfill the Products to
the Members (collectively, the “Trilegiant Intellectual Property”), in connection with the
Products unless Edentify receives the prior written consent of Trilegiant. The Trilegiant
Intellectual Property is and will remain the property of Trilegiant, and Trilegiant will own and
control all right, interest and title (including copyrights, trademarks, patents, service marks and
all other proprietary rights) in, to and under the Trilegiant Intellectual Property. Edentify
agrees that upon termination of this Agreement, Edentify shall immediately cease and discontinue
all use of the Trilegiant Intellectual Property. Further, if Edentify wishes to utilize the
Trilegiant Intellectual Property in advertising or promotional materials, it must submit such
materials to Trilegiant for final approval before utilizing them. In no event may Edentify or any
person or entity affiliated or associated with Edentify utilize the Trilegiant Intellectual
Property in connection with any products or services other than the Products.

(b) Subject to the termination provisions set forth in Section 13, Edentify hereby grants to
Trilegiant a non-exclusive, revocable, royalty-free, worldwide license to the use, reproduce,
display, transmit and sublicense Edentify’s name (or any derivative thereof), URLs, issued patents,
trademarks, service marks, logos, photographs, menus, slogans, trade dress or other proprietary
descriptions or intellectual property owned by, licensed to or used by Edentify directly or
indirectly in connection with the Products, whether registered or unregistered (collectively, the
“Edentify Intellectual Property”) associated with the Products and the Delivered Material
during the Term in connection with Trilegiant’s promotion of the Products or inclusion of a Product
as a benefit of a Program, or otherwise in fulfillment of its obligations hereunder, including in
connection with its websites and in presentation material, both public and private, used by
Trilegiant. The Edentify Intellectual Property is and will remain the property of Edentify, and
Edentify will own and control all right, interest and title (including copyrights, trademarks,
patents, service marks and all other proprietary rights) with respect to the Edentify Intellectual
Property, including the Edentify brand name. Except as specifically set forth in this Agreement,
neither Trilegiant nor any Member shall acquire any right or license to any Edentify Intellectual
Property by virtue of this Agreement or otherwise and Trilegiant agrees to sign documentation
reasonably required to effect recording or protection of any such property, as reasonably requested
by Edentify. Trilegiant agrees that upon termination or material breach by Trilegiant of this
Agreement that remains uncured beyond the applicable cure period set forth in this Agreement,
Trilegiant shall immediately cease and discontinue all use of the Edentify Intellectual Property.
Further, if Trilegiant wishes to utilize the Edentify Intellectual Property in advertising or
marketing materials, it must submit such materials to Edentify for final approval before utilizing
them. Other than in connection with marketing or otherwise promoting any MPI product containing a
Product or Products, in no event may Trilegiant or any person or entity affiliated or associated
with Trilegiant utilize, nor shall Trilegiant cause any Member to utilize, the Edentify
Intellectual Property in connection with any products or services other than the Products.

(c) All marketing, promotional, solicitation, fulfillment and/or retention materials produced
by Trilegiant pursuant to this Agreement (other than rights in and to Edentify Intellectual
Property contained therein, if any) (the “Work”), shall be deemed a “work for hire”, and
Trilegiant shall own all right, title and interest in and to the Work. To the extent any Work is
not deemed a “work for hire” by operation of law, Edentify hereby irrevocably assigns, transfers
and conveys to Trilegiant all of its right, title and interest in and to such Work (other than
rights in and to Edentify Intellectual Property contained therein, if any), including, but not
limited to, all rights of patent, copyright, trade secret or other proprietary rights in such Work.
Edentify agrees to execute such other documents or take such other actions as Trilegiant may
reasonably request to perfect Trilegiant’s ownership of the Work

(d) Edentify hereby represents and warrants that (i) it is and will be the sole and exclusive
owner of the Edentify Intellectual Property, (ii) Edentify has and will have the right and power to
grant to Trilegiant the license to use and electronically publish same in the manner contemplated
herein and that such grant does not and will not (A) breach, conflict with, or constitute a default
under any agreement or other instrument applicable to Edentify or binding upon Edentify, or (B)
violate, infringe upon, or misappropriate any patent, trademark, trade name, trade secret, service
mark, copyright, or other proprietary right of any other person or entity, (iii) the Edentify
Intellectual Property is not the subject of any allegation or claim that, if true, would conflict
with Edentify’s obligations under this Agreement, (iv) the Edentify Intellectual Property is not
subject to any agreements or licenses to or from third parties that impose any obligations on
Trilegiant beyond Trilegiant’s obligations under this Agreement, and (v) Edentify has neither
assigned nor otherwise entered into an agreement by which it purports to assign or transfer to a
third party any right, title or interest in or to the Edentify Intellectual Property or any other
intellectual property right that would conflict with Trilegiant’s obligations under this Agreement
(collectively, any breach of this Section 11(d) shall be referred to herein as an
“Infringement”).

(e) If the normal operation, possession or use of the Edentify Intellectual Property by
Trilegiant is found to be an Infringement, or if Edentify believes that the Edentify Intellectual
Property is likely to do so, then Edentify shall, to the extent it is not liquidating its assets in
accordance with the Code, at its option and sole expense and at no additional charge to Trilegiant
(and in addition to any other rights available to Trilegiant under this Agreement): (i) procure
for Trilegiant the right to continue using the Edentify Intellectual Property as contemplated
hereunder; (ii) replace the Edentify Intellectual Property, by a compatible, functionally
equivalent and non-infringing Edentify Intellectual Property; (iii) modify the Edentify
Intellectual Property to eliminate any Infringement, provided that the modified Edentify
Intellectual Property’s functionality shall remain the same as set forth in the applicable
specifications; (iv) replace the Edentify Intellectual Property with non-Infringing services,
deliverables, and/or work product, provided that the suitability, compatibility, and functionality
of the replacement services, deliverables, and/or work product shall remain the same as set forth
in the applicable specifications; or (v) obtain a license for Trilegiant to continue use of the
Edentify Intellectual Property for the Term and Edentify shall pay for any additional fee required
for such license. If none of the foregoing alternatives are possible even after Edentify’s best
efforts (but in no event more than ten (10) business days after receiving notice thereof), in
addition to any other rights available to Trilegiant under this Agreement, Trilegiant may terminate
the Agreement in accordance with Section 13 hereof, in which event Edentify shall promptly (but in
no event more than ten (10) business days) refund to Trilegiant a pro rata portion of the amounts
paid by Trilegiant to Edentify pursuant to Sections 7 hereof. To the extent an Infringement occurs
hereunder, and the parties hereto mutually agree, in good faith, to discontinue Trilegiant’s
marketing of the products in respect of such Infringement, the exclusivity terms set forth in
Section 1(b) hereof shall extend by the number of days such marketing has been discontinued and not
occurring.

(f) To the extent a Claim arises as a result of a misappropriation by a Member of Edentify
Intellectual Property, upon request by Edentify, Trilegiant shall reasonably cooperate with
Edentify in connection therewith.

12. Security Standards; Records; Audit Rights.

(a) Security Standards. Edentify shall comply with the security standards set forth
on Schedule 12(a) to this Agreement.

(b) Records. Each party will maintain, for a period of at least three (3) years after
the date on which they are generated and in a form reasonably promptly accessible to the other
party hereto, reasonably adequate records (including proof of purchase of the Products) relating to
its performance of its obligations under this Agreement.

(c) Audit. Upon five (5) business days’ prior written notice, each party, together
with such party’s representatives, will have the right, at its sole expense, upon reasonable notice
to other party and during the other party’s normal business hours, to inspect and copy the other
party’s data and records in order to verify that such other party’s performance hereunder has
complied with its obligations under this Agreement, and such other party will cooperate to the
extent reasonably requested in connection with any such inspection and copying. If an audit
conducted by or at the direction of either party reveals an underpayment to such party for a given
calendar year in an amount greater than five percent (5%) of funds owed during such period, then
such underpaying party shall, within thirty (30) days thereafter, reimburse the auditing party for
the expense of said audit in addition to the payment of such underpayment with interest computed at
two points above the Prime Rate as reported in the Wall Street Journal from the date such
underpaid amount was originally due until such amount is finally paid.

13. Term; Termination; Survival.

(a) Term; Renewal. The initial term of this Agreement shall commence on the Effective
Date and, unless terminated earlier pursuant to this Agreement, shall remain in effect until March
31, 2011 (the “Initial Term”). This Agreement shall automatically renew thereafter for
successive twelve (12)-month terms (each, a “Renewal Term” and, together with the Initial
Term, the “Term”), unless either party provides the other party with written notice of
non-renewal at least ninety (90) days before the expiration of the Initial Term or any Renewal
Term.

(b) Termination. This Agreement may be terminated: (i) by either party immediately,
upon written notice to the other party, in the event of fraud, bankruptcy, insolvency, liquidation
or willful misconduct by the other party; (ii) by either party upon thirty (30) days’ written
notice to the other party, in the event of a material breach by the other party in the performance
of its obligations hereunder, which breach is not cured by the other party within such thirty
(30)-day period; (iii) by Trilegiant immediately, upon written notice to Edentify, if Edentify has
entered into an agreement with a Trilegiant Competitor whereby such Trilegiant Competitor will
acquire control of Edentify; and (iv) by Edentify immediately, upon written notice to Trilegiant,
if Trilegiant has entered into an agreement with an Edentify Competitor whereby such Edentify
Competitor will acquire control of Trilegiant.

(c) Survival. Notwithstanding anything to the contrary contained in this Agreement,
the provisions set forth in Sections 4, 5, 6, 7, 9, 10, 11, 13, 14, 17 and 18 shall remain in full
force and effect indefinitely following any expiration or termination of this Agreement and Section
12 shall remain in full force and effect for the period specified in such Section.

(d) Obligations of Edentify Following Termination. No expiration or termination of
this Agreement will affect either (i) Trilegiant’s right, in its sole discretion, to extend or
renew any Member’s membership in a Program or (ii) except for termination resulting from (A) breach
of this Agreement by Trilegiant or (B) any misconduct or malfeasance in derogration of Edentify’s
proprietary rights by any Member, Edentify’s obligation to continue to service Members who have
purchased a Product or are entitled to use a Product, after the date of such expiration or
termination, each of which right and obligation will continue until the membership is canceled by
either the Member or Trilegiant or as otherwise mutually agreed to by the parties in writing.

14. Insurance.

(a) During the Term and for a period of not less than two (2) years after the termination or
expiration of this Agreement, Edentify shall secure and maintain (i) Statutory Workers’
Compensation in accordance with all federal, state and local requirements; (ii) comprehensive
general liability insurance on an occurrence basis (including, independent contractors,
contractual, personal injury, products and completed operations, and broad form property damage)
with combined single limits of not less than Two Million Dollars ($2,000,000) per occurrence; (iii)
Employer’s Liability in an amount not less that $1,000,000 per occurrence covering bodily injury by
accident or disease, including death; and (iv) Professional Liability/Errors and Omissions
Liability coverage, covering acts, errors, omissions, and equipment/machine malfunctions arising
out of Edentify’s operations or the Products in an amount of not less than Two Million Dollars
($2,000,000).

(b) Edentify shall have provided Trilegiant on or before the Effective Date with certificates
of insurance evidencing compliance with the immediately foregoing provisions and, with respect to
the liability insurance certificate, identifying Trilegiant and its affiliates as additional
insureds under Edentify’s liability insurance policy. Edentify shall promptly provide Trilegiant
with insurance certificates subsequently upon any material diminution of any of the aforesaid
coverage amounts.

15. Assignment. This Agreement may not be assigned, in whole or in part, by either
party without the prior written consent of the non-assigning party, except where such assignment or
other transfer is to a corporation (or other entity) that is an affiliate of such party. Neither
party shall delegate or subcontract any material portion of its duties hereunder to an unaffiliated
third party (other than a corporation (or other entity) that is an affiliate) without the prior
written consent of the non-delegating or non-subcontracting party which consent shall not be
unreasonably withheld, conditioned or delayed. Subject to the restrictions contained in this
Section 15, the terms and conditions of this Agreement shall bind and inure to the benefit of each
of the permitted successors and assigns of the parties hereto.

16. Notices. Any notice or other communication given under this Agreement will be in
writing and will be delivered by hand, sent by facsimile transmission (provided
acknowledgment of receipt thereof is delivered to the sender), sent by certified, registered mail
or sent by any nationally recognized overnight courier service to the following addresses:

	 	 	 
	For Trilegiant:

	 	For Edentify:
	 

	 	 
	 
	 	 
	Trilegiant Corporation

100 Connecticut Avenue

Norwalk, Connecticut 06850

Attention: Nancy DiSpirito

Title: Senior Vice President

Telephone: (203) 956-1000

Facsimile: (203) 956-8789

	 	Edentify, Inc.

74 W. Broad Street, Suite 350

Bethlehem, Pennsylvania 18018

Attention: Terrence DeFranco

Title: Chief Executive Officer

Telephone: (610) 814-6830

Facsimile: (610) 814-6836
	 
	 	 
	With a copy to: Legal Department

(at same address and number)

	 	With a copy to: Legal Department

(at same address and number)

17. Governing Law; Severability; Construction. This Agreement shall be subject to and
governed by the laws of the State of Delaware without regard to its conflict of law principles. If
any provision of this Agreement shall be held illegal, void or unenforceable, then the remainder of
the Agreement shall continue in full force and effect, but only to the extent that the original
intent of this Agreement would remain unchanged in any material respect. The construction and
interpretation of this Agreement shall not be strictly construed against either party hereto.

18. Further Assurances. Each party will cooperate with the other party to the extent
reasonably requested by such other party in connection with the performance of this Agreement and,
at any time or from time to time upon the request of any party, each party shall execute and
deliver such further documents and do such other acts and things as the requesting party may
reasonably request in order to carry into effect more fully the intent and purposes of this
Agreement.

19. Unforeseen Events. Neither party will be liable for any failure or performance
hereunder or for damages caused by any delay or failure to perform hereunder if performance is made
impracticable due to any occurrence beyond its control, including, without limitation, acts of God,
fires, floods, wars, riots or civil disorders, acts of a public enemy, terrorism, sabotage,
enactment or act of any government or governmental instrumentality (whether federal, state, local
or foreign and whether valid or invalid) and any other similar or different occurrence which would
have a material adverse impact on a party’s ability to perform under this Agreement which is not
reasonably within such party’s control (an “Unforeseen Event”). The party who fails to
perform as a result of any Unforeseen Event shall promptly notify the other party in writing of any
such occurrence, setting forth in reasonable detail the circumstances of such Unforeseen Event, and
shall promptly notify the other party of the cessation of such Unforeseen Event. Each party shall
exert all reasonable efforts to mitigate the effects of any Unforeseen Event. If either party
reasonably believes that it is uneconomical to take corrective action to remedy any Unforeseen
Event, such party may suspend or terminate this Agreement upon ninety (90) days’ written notice to
the other party.

20. Waivers. No failure or delay by either party to exercise, and no course of
dealing with respect to, any right of such party regarding an obligation of the other party to this
Agreement, shall operate as a waiver thereof, unless expressly set forth herein or agreed to in
writing by both parties. Any single or partial exercise by either party of any of its rights shall
not preclude such party from any other or further exercise of any such right or the exercise of any
other right. Any single or partial waiver by either party of any obligation of the other party
under this Agreement shall constitute a waiver of such obligation only as specifically provided in
a written waiver and shall not constitute a waiver of any other obligation.

21. Entire Agreement; Amendment. This Agreement constitutes the entire agreement
between Trilegiant and Edentify with respect to the subject matter hereof and supersedes any and
all prior or contemporaneous agreements, arrangements, or understandings, whether written or oral
with respect thereto. This Agreement may only be amended in a writing signed by both Edentify and
Trilegiant.

22. Third Party Beneficiary. For purposes of enforcing Sections 2(a) and 3(e) hereof,
the parties hereto agree that MPI shall be a third-party beneficiary to this Agreement.
Notwithstanding the foregoing, nothing in this Agreement, express or implied, is intended to confer
upon any person or entity any rights or remedies of any nature under or by reason of this
Agreement.

23. Counterparts; Facsimile. This Agreement may be signed in multiple counterparts,
each of which shall be deemed an original, and all of which, when taken together, shall constitute
one instrument. This Agreement may be executed and delivered by facsimile and the parties agree
that such facsimile execution and delivery shall have the same force and effect as delivery of an
original document with original signatures, and that each party may use such facsimile signatures
as evidence of the execution and delivery of this Agreement by the parties to the same extent that
an original signature could be used.

[SIGNATURE PAGE FOLLOWS]

1

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

TRILEGIANT CORPORATION

By: /s/ Nancy Ann DiSpirito

Name: Nancy Ann DiSpirito

Title: Senior Vice President

EDENTIFY, INC.

By: /s/ Terrence DeFranco

Name: Terrence DeFranco

Title: Chief Executive Officer

2

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