Document:

exv4w1

Exhibit
4.1

COLLECTIVE BRANDS 401(k)

PROFIT SHARING PLAN

As Amended and Restated Effective August 15, 2011, or as otherwise specified

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	SECTION 1 Definitions
	 	 	2	 
	1.01 Accounts
	 	 	2	 
	1.02 Administrative Delegate
	 	 	2	 
	1.03 After-Tax Contributions
	 	 	2	 
	1.04 Allocation Pay Amount
	 	 	2	 
	1.05 Associate
	 	 	2	 
	1.06 Authorized Leave of Absence
	 	 	3	 
	1.07 Before-Tax Contributions
	 	 	3	 
	1.08 Beneficiary
	 	 	3	 
	1.09 Board
	 	 	3	 
	1.10 Code
	 	 	3	 
	1.11 Committee
	 	 	3	 
	1.12 Company
	 	 	3	 
	1.13 Company Accounts
	 	 	3	 
	1.14 Company Matching Contributions
	 	 	3	 
	1.15 Company Profit Sharing Contributions
	 	 	3	 
	1.16 Effective Date
	 	 	3	 
	1.17 Employer
	 	 	3	 
	1.18 ERISA
	 	 	3	 
	1.19 Fiduciary
	 	 	4	 
	1.20 Fiscal Year
	 	 	4	 
	1.21 Group
	 	 	4	 
	1.22 Highly Compensated Employee
	 	 	4	 
	1.23 Hour of Service
	 	 	4	 
	1.24 Investment Fund
	 	 	5	 
	1.25 May Plan
	 	 	5	 
	1.26 Member
	 	 	5	 
	1.27 Member Accounts
	 	 	5	 
	1.28 Member After-Tax Accounts
	 	 	5	 
	1.29 Member Before-Tax Accounts
	 	 	5	 
	1.30 Member Contributions
	 	 	5	 
	1.31 Member Rollover Contribution Accounts
	 	 	5	 
	1.32 Military Service
	 	 	5	 
	1.33 Net Profits
	 	 	5	 
	1.34 Non-Highly Compensated Employee
	 	 	6	 
	1.35 Pay
	 	 	6	 
	1.36 Pooled Investment Account
	 	 	6	 
	1.37 Plan
	 	 	6	 
	1.38 Plan Year
	 	 	6	 
	1.39 Prior Plan
	 	 	6	 
	1.40 Qualified Domestic Relations Order
	 	 	6	 
	1.41 Retirement
	 	 	7	 
	1.42 Rollover Contributions
	 	 	7	 

i

 

	 	 	 	 	 
	 	 	PAGE	 
	1.43 Social Security Wage Base
	 	 	7	 
	1.44 Total and Permanent Disability or Disability
	 	 	7	 
	1.45 Transferred Accounts
	 	 	7	 
	1.46 Trust Agreement
	 	 	7	 
	1.47 Trust Fund
	 	 	7	 
	1.48 Trustee
	 	 	7	 
	1.49 Unit
	 	 	7	 
	1.50 Unit Value
	 	 	7	 
	1.51 Valuation Date
	 	 	7	 
	1.52 Vesting Service
	 	 	7	 
	1.53 Year of Service
	 	 	9	 
	 	 	 	 	 
	 
	SECTION 2 Membership
	 	 	10	 
	2.01 Conditions of Eligibility
	 	 	10	 
	2.02 Re-Employment
	 	 	11	 
	 	 	 	 	 
	 
	SECTION 3 Company Contributions
	 	 	12	 
	3.01 Amount of Company Profit Sharing Contribution
	 	 	12	 
	3.02 Amount of Company Matching Contribution
	 	 	12	 
	3.03 Allocation of Company Contributions
	 	 	12	 
	3.04 Profit Sharing Allocation Formula
	 	 	13	 
	3.05 Investment of the Company Contribution
	 	 	13	 
	3.06 Return of Company Contributions
	 	 	13	 
	 	 	 	 	 
	 
	SECTION 4 Member Contributions
	 	 	14	 
	4.01 Procedure for Making Contributions
	 	 	14	 
	4.02 Limitations On And Distributions Of Before-Tax Contributions For Highly Compensated Employees
	 	 	16	 
	4.03 Distributions of Excess Deferrals
	 	 	17	 
	4.04 Limitations On And Distributions Of After-Tax Employee Contributions And Matching Contributions For Highly Compensated Employees
	 	 	18	 
	4.05 Definitions and Special Rules
	 	 	19	 
	 	 	 	 	 
	 
	SECTION 5 Investment Provisions
	 	 	21	 
	5.01 Investment Funds
	 	 	21	 
	5.02 Investment Direction
	 	 	21	 
	 	 	 	 	 
	 
	SECTION 6 Accounts
	 	 	23	 
	6.01 Member Accounts
	 	 	23	 
	6.02 Company Accounts
	 	 	23	 
	6.03 Maintenance of Accounts
	 	 	23	 
	6.04 Valuation of Accounts
	 	 	23	 
	6.05 Member Statements
	 	 	23	 
	6.06 Shares of Collective Brands, Inc. (“Collective Brands Stock”) in the Collective Brands Common Stock Fund
	 	 	23	 
	6.07 Vesting in Member and Company Accounts
	 	 	24	 

ii

 

	 	 	 	 	 
	 	 	PAGE	 
	SECTION 7 Expenses
	 	 	28	 
	7.01 Administrative Expenses
	 	 	28	 
	 	 	 	 	 
	 
	SECTION 8 Withdrawals During Employment
	 	 	29	 
	8.01 Withdrawals Prohibited Unless Specifically Authorized
	 	 	29	 
	8.02 Authorized Withdrawals
	 	 	29	 
	 	 	 	 	 
	 
	SECTION 9 Benefits Upon Retirement, Death, Disability or Termination of Employment
	 	 	32	 
	9.01 Benefits
	 	 	32	 
	9.02 Beneficiary
	 	 	32	 
	 	 	 	 	 
	 
	SECTION 10 Payment of Benefits
	 	 	33	 
	10.01 Time of Payment
	 	 	33	 
	10.02 Form of Payment
	 	 	34	 
	10.03 Indirect Payment of Benefits
	 	 	34	 
	10.04 Inability to Find Member
	 	 	34	 
	10.05 Required Minimum Distributions
	 	 	34	 
	10.06 Commencement of Benefit Distribution to Beneficiary
	 	 	38	 
	10.07 Commencement of Benefit Distribution to Alternate Payee
	 	 	38	 
	 	 	 	 	 
	 
	SECTION 11 Permitted Rollover of Plan Distributions
	 	 	39	 
	11.01 Rollover to Other Plans
	 	 	39	 
	11.02 Rollover from Other Plans
	 	 	39	 
	11.03 Definitions
	 	 	40	 
	 	 	 	 	 
	 
	SECTION 12 Loans
	 	 	41	 
	12.01 Availability of Loans
	 	 	41	 
	12.02 Amount of Loans
	 	 	41	 
	12.03 Terms of Loans
	 	 	41	 
	 	 	 	 	 
	 
	SECTION 13 Limit on Contributions to the Plan
	 	 	43	 
	13.01 Limit on Contributions
	 	 	43	 
	13.02 Adjustment for Excessive Annual Additions
	 	 	44	 
	 	 	 	 	 
	 
	SECTION 14 Administration of the Plan
	 	 	45	 
	14.01 Plan Administrator
	 	 	45	 
	14.02 Delegation of Authority
	 	 	45	 
	14.03 Committee and Subcommittees
	 	 	45	 
	14.04 Accounts and Reports
	 	 	46	 
	14.05 Non-Discrimination
	 	 	47	 
	 	 	 	 	 
	 
	SECTION 15 Management of the Trust Fund
	 	 	48	 
	15.01 Use of the Trust Fund
	 	 	48	 
	15.02 Trustees
	 	 	48	 
	15.03 Investments and Reinvestments
	 	 	48	 
	 	 	 	 	 
	 
	SECTION 16 Certain Rights and Obligations of Employers and Members
	 	 	50	 
	16.01 Disclaimer of Employer Liability
	 	 	50	 

iii

 

	 	 	 	 	 
	 	 	PAGE	 
	16.02 Employer-Associate Relationship
	 	 	50	 
	16.03 Binding Effect
	 	 	50	 
	16.04 Corporate Action
	 	 	50	 
	16.05 Claim and Appeal Procedure
	 	 	50	 
	16.06 Venue for Litigation
	 	 	53	 
	16.07 Acquisition Of Assets
	 	 	53	 
	 	 	 	 	 
	 
	SECTION 17 Non-Alienation of Benefits
	 	 	54	 
	17.01 Provisions with Respect to Assignment and Levy
	 	 	54	 
	17.02 Alternate Application
	 	 	54	 
	 	 	 	 	 
	 
	SECTION 18 Amendments
	 	 	55	 
	18.01 Company’s Rights
	 	 	55	 
	18.02 Procedure to Amend
	 	 	55	 
	18.03 Provision Against Diversion
	 	 	55	 
	 	 	 	 	 
	 
	SECTION 19 Termination
	 	 	56	 
	19.01 Right to Terminate
	 	 	56	 
	19.02 Withdrawal of an Employer
	 	 	56	 
	19.03 Distribution in Event of Termination of Trust
	 	 	56	 
	19.04 Administration in Event of Continuance of Trust
	 	 	56	 
	19.05 Merger, Consolidation or Transfer
	 	 	56	 
	 	 	 	 	 
	 
	SECTION 20 Construction
	 	 	57	 
	20.01 Applicable Law
	 	 	57	 
	20.02 Gender and Number
	 	 	57	 
	 	 	 	 	 
	 
	SECTION 21 Top-Heavy Requirements
	 	 	58	 
	21.01 Generally
	 	 	58	 
	21.02 Minimum Allocations
	 	 	58	 
	21.03 Determination of Top Heaviness
	 	 	58	 
	21.04 Calculation of Top-Heavy Ratios
	 	 	59	 
	21.05 Cumulative Accounts and Cumulative Accrued Benefits
	 	 	59	 
	21.06 Other Definitions
	 	 	60	 

iv

 

COLLECTIVE BRANDS

401(k) PROFIT SHARING PLAN

INTRODUCTION

     Effective April 1, 1996, Payless ShoeSource, Inc. withdrew from and ceased to be a
participating Employer in The May Department Stores Company Profit Sharing Plan (the “May Plan”),
and established the Payless ShoeSource, Inc. Profit Sharing Plan (the “Plan”). Effective January
1, 1997, a portion of the Plan covering Associates of Payless ShoeSource of Puerto Rico, Inc. was
spun off. As of August 1, 1997, Payless amended and restated the Plan, primarily to establish a
company matching contribution based on Members’ contributions effective January 1, 1998, to
institute automatic enrollment in before-tax contributions by Members, and to comply with certain
changes in the law. On June 1, 1998, Payless restructured its corporate organization into a
holding company structure with Payless ShoeSource, Inc., a Delaware corporation, as the parent
corporation and the named Company for this Plan. Effective March 20, 2000, the Company amended and
restated the Plan, primarily to include provisions for loans and the acceptance of rollover
contributions from other qualified plans, a change to daily valuation and other miscellaneous
changes.

     Effective January 1, 2002, the Company amended and restated the Plan to effect the adoption of
mandatory and certain permissive provisions of the Economic Growth and Tax Relief Reconciliation
Act of 2001 (“EGTRRA”). The EGTRRA amendments to the Plan are intended to be made in good faith
compliance with the requirements of EGTRRA and are to be construed in accordance with EGTRRA and
guidance issued thereunder. While the EGTRRA amendments are generally effective January 1, 2002,
some of the amendments are effective May 1, 2002, as indicated below. In addition, effective May
1, 2002, the Plan was amended to permit Full-Time Associates to participate in the Plan upon the
completion of 90 days of employment service with a participating Employer or other member of the
Group. Effective January 1, 2003 the Company again amended and restated the Plan to reflect the
terms of the final Treasury Regulations governing required minimum distributions. Effective March
28, 2005, the Company amended the Plan to reduce the limit for certain mandatory distributions as
described in IRS notice 2005-5. Other amendments made herein are effective on the dates as
specified. The Plan was further amended as specified to provide for a guaranteed minimum Company
Matching Contribution. Additional amendments were made effective January 1, 2006 to permit
Full-Time Associates to make elective contributions to the Plan after completing 60 days of
employment and to be eligible to receive the Company Matching Contribution after completing 180
days of employment. The hardship provisions of the Plan were also amended to expand the definition
of a “hardship”, consistent with Treasury regulations. The Plan was further amended effective
January 1, 2007 to provide for Part-Time Associates to be eligible to participate in the Plan upon
turning age 21 and completing a full year of employment and to remove the re-employment provision
specified under Section 2.02.

     The Plan is amended as of the dates indicated herein to change the eligibility requirements to
participate, change the definition of vesting service, and permit the plan administrator to limit
the future contributions a participant may invest in the company stock fund; and effective August
15, 2011, the Plan is restated in its entirety to read as follows:

1

 

SECTION 1

Definitions

     1.01 Accounts means the Company Accounts and Member Accounts established under Section 6.

     1.02 Administrative Delegate means one or more persons or institutions to which the Committee
has delegated certain administrative functions pursuant to a written agreement.

     1.03 After-Tax Contributions means Member Contributions which are not Before-Tax Contributions
and which are made by the Member in accordance with Section 4.01(a).

     1.04 Allocation Pay Amount means with respect to each eligible Member, (a) one (1) times the
amount of Pay as defined in Section 1.35 up to the Social Security Wage Base (“SSWB”) for the Plan
Year, plus (b) two (2) times the amount of such Pay in excess of the SSWB for the Plan Year.
Notwithstanding any provision of this Section 1.04 or of Section 3.04 to the contrary, in no event
shall the percentage of Members’ Pay to be allocated for any year below the SSWB be less than fifty
percent (50%) of the percentage of Pay allocated with respect to Members’ Pay in excess of the
SSWB, nor may the latter percentage of Pay (above the SSWB) exceed the former percentage of Pay
(below the SSWB) by more than 5.7% (or such other percentage as may be the maximum permitted
differential under Code Section 401(1) from time to time).

     In determining each eligible Member’s Allocation Pay Amount, only Pay received during the part
of the Plan Year the Member is eligible for the Company Contribution feature of the Plan, pursuant
to Section 2, shall be considered, and the SSWB to be applied for such Member shall be
proportionally prorated if such eligibility is for less than a full Plan Year.

     Notwithstanding the foregoing, with respect to any Plan Year for which applying the definition
of Allocation Pay Amount set forth above would cause the allocation made pursuant to Section 3.04
to violate the permitted disparity limitations of Treas. Reg. Section 1.401(l)-2, Allocation Pay
Amount shall be adjusted to permit Section 3.04 to operate in compliance with the limitations of
Treas. Reg. Section 1.401(l)-2.

     1.05 Associate means any person who is classified as an employee by an Employer and who
receives Pay from an Employer. The term Associate also may include, based upon the express written
determination of the Company or the Committee, a U.S. citizen employed, at the request of the
Company, by a member of the Group (defined in Section 1.21) to the extent such employee otherwise
qualifies for membership under Section 2, in which case such Group member shall be deemed to be an
“Employer” hereunder, as to such person or persons only. The term “Associate” shall not include (i)
any person covered under a collective bargaining agreement unless and until the Employer and the
collective bargaining representatives so agree, (ii) any non-resident alien, and (iii) any “Leased
Employee” (as defined in Code Section 414(n), without regard to Section 414(n)(2)(B)).

2

 

     1.06 Authorized Leave of Absence means any leave of absence authorized by the Employer under
rules established by the Employer.

     1.07 Before-Tax Contributions means contributions which the Member elects (in accordance with
Section 4.01(b)) to have the Employer make directly to the Plan on behalf of the Member, which
election shall constitute an election under Code Section 401(k)(2)(A). The “Member’s Before-Tax
Contributions” shall refer to Before-Tax Contributions made to the Plan by the Employer on behalf
of the Member.

     1.08 Beneficiary means the person or persons entitled under Section 9.02 to receive any
payments payable under this Plan on account of a Member’s death.

     1.09 Board means the Board of Directors of the Company.

     1.10 Code means the Internal Revenue Code of 1986, as amended from time to time.

     1.11 Committee means the Collective Brands Retirement and Investment Committee comprised of
three or more members as determined and appointed from time to time by the Board.

     1.12 Company means Collective Brands, Inc., a Delaware corporation, and any other organization
which may be a successor to it.

     1.13 Company Accounts means accounts reflecting the portion of each Member’s interest in the
Investment Funds which are attributable to Company Matching Contributions (“Company Matching
Accounts”) and to Company Profit Sharing Contributions (“Company Profit Sharing Accounts”) and to
any contributions made by an Employer under prior plans, as well as to any income and/or earnings
attributable to such Company Contributions and prior plan contributions.

     1.14 Company Matching Contributions means contributions made by the Company or an Employer,
based on a Member’s Before-Tax and/or After-Tax Contributions, pursuant to Section 3.02.

     1.15 Company Profit Sharing Contributions means discretionary contributions made by the
Company or an Employer, based on Net Profits, pursuant to Section 3.01.

     1.16 Effective Date originally meant April 1, 1996. However, the effective date of this
amendment and restatement of the Plan shall be August 15, 2011, unless otherwise specified herein.

     1.17 Employer means the Company and, if authorized by the Company to participate herein, any
subsidiary of the Company or any affiliated corporation, partnership or sole proprietorship which
elects to participate herein.

     1.18 ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to
time.

3

 

     1.19 Fiduciary means the Employer, the Trustee, each of the members of the Committee described
in Section 14, and any investment manager designated pursuant to Section 15.

     1.20 Fiscal Year means the Company’s Fiscal Year.

     1.21 Group means the Company and any other company which is related to the Company as a member
of a controlled group of corporations in accordance with Code Section 414(b), as a trade or
business under common control in accordance with Code Section 414(c) or as an affiliated service
group in accordance with Code Section 414(m) or the regulations under Code Section 414(o). For the
purposes of the Plan, for determining whether or not a person is an employee of the Group and the
period of employment of such person, each such other company shall be included in the “Group” only
for such period or periods during which such other company is a member with the Company of a
controlled group or under common control.

     1.22 Highly Compensated Employee means any Member who (a) was a “five percent owner” as
defined in Section 21.06(f)(2) at any time during either the determination year or the look-back
year; or (b) received compensation within the meaning of Code Section 415(c)(3) (including the
deferrals described in Code Section 415(c)(3)(D)) from the Employer in excess of $110,000 (as
adjusted pursuant to Code Section 415(d)) during the look-back year. For purposes of this Section
1.22, compensation within the meaning of Code Section 415(c)(3) shall mean the remuneration as
defined in Section 13.01(a).

     For purposes of this Section, the determination year shall be the Plan Year, and the look-back
year shall be the 12-month period immediately preceding the determination year. The determination
of who is a Highly Compensated Employee, including the determination of the compensation that is
considered, will be made in accordance with Code Section 414(q) and the regulations thereunder.

     1.23 Hour of Service means any hour for which an Associate (including a leased employee) is
directly or indirectly compensated, or entitled to compensation, by the Employer or by any member
of the Group, whether or not such Group member has adopted the Plan, for any of the following:

(a) the performance of duties during the applicable computation period;

(b) a period during which no duties are performed (irrespective of whether the employment
relationship has terminated) due to vacation, holiday, illness, incapacity (including
disability), layoff, jury duty, Military Service, or Authorized Leave of Absence;

(c) a period for which back pay is awarded or agreed to, provided that no Hour of Service
has been credited under subsection (a) or (b) with respect to the same period.

     Hours of Service and applicable computation periods shall be determined in accordance with the
requirements of 29 C.F.R. Section 2530.200b.

4

 

     1.24 Investment Fund means any fund for investment of contributions as described in Section
5.01.

     1.25 May Plan means The May Department Stores Company Profit Sharing Plan.

     1.26 Member means any person included in the membership of this Plan as provided in Section 2.
A person shall cease to be a Member when he

     (i) has ceased to be employed by the Employer, and

     (ii) has no undistributed account balances under the Plan.

     1.27 Member Accounts means the Member Before-Tax Accounts, the Member After-Tax Accounts and
the Member Rollover Contribution Accounts. To the extent an Associate makes a Rollover
Contribution pursuant to Section 11.02 and the Associate is otherwise eligible but has not yet
completed the participation requirements of Section 2.01, such contribution shall also be a Member
Account.

     1.28 Member After-Tax Accounts means the Member Accounts with respect to a Member’s After-Tax
Contributions.

     1.29 Member Before-Tax Accounts means the Member Accounts with respect to a Member’s
Before-Tax Contributions.

     1.30 Member Contributions means the Member’s Before-Tax Contributions and After-Tax
Contributions.

     1.31 Member Rollover Contribution Accounts means the Member Accounts with respect to an
Associate’s or Member’s Rollover Contributions.

     1.32 Military Service means effective December 13, 1996, any period of obligatory military
service with the Armed Forces of the United States of America, or voluntary service in lieu of such
obligatory service, provided that the Associate returns to active employment with the Employer
within the period during which the Employer would be required to re-employ the Associate under
Federal law. Notwithstanding any provision of this Plan to the contrary, contributions, benefits,
loan repayment and service credit with respect to qualified Military Service will be provided in
accordance with Code Section 414(u).

     1.33 Net Profits means the consolidated net profits of the Company for any given Fiscal Year,
determined by generally accepted accounting principles except that (i) no deduction or provision
shall be made for any federal, state or other taxes measured by net income, nor for any
contributions to the Trust or to any other pension or profit sharing plan, and (ii) there shall be
excluded any proceeds from life insurance of which the Company is beneficiary (whether paid in a
single sum or otherwise) and any gains or losses on the sale of capital assets. Such term shall
also mean any accumulated and undistributed Net Profits (as defined in the preceding sentence)
earned in prior Fiscal Years to the extent that such accumulated and undistributed Net Profits
constitute surplus of the Company and its subsidiaries available for contributions hereunder.

5

 

     1.34 Non-Highly Compensated Employee means any Employee who is not a Highly Compensated
Employee but who is eligible to participate in the Plan.

     1.35 Pay means the aggregate of (i) all regular pay, commissions, overtime pay, cash
incentives, prizes and cash awards, plus (ii) amounts which the Associate elects to have the
Employer contribute directly to the Plan on the Associate’s behalf in accordance with Section
4.01(b). Pay shall include any amounts not otherwise includable in the Member’s taxable income
pursuant to Code Section 125. Pay shall not include amounts for a pension, a retirement allowance,
a retainer or a fee under contract, deferred compensation (including amounts deferred under the
Deferred Compensation Plan of The May Department Stores Company and the Deferred Compensation Plan
of Payless ShoeSource, Inc.), severance pay, distributions from this Plan, amounts earned before an
individual becomes a Member, or items of extraordinary income including but not limited to amounts
resulting from the exercise of stock options, spinoff cash, spinoff stock and restricted stock
awards. Pay in excess of $245,000 shall be disregarded, although such amount shall be adjusted for
cost-of-living increases in accordance with Code Section 401(a)(17)(B).

     Pay shall not include any compensation paid after an individual’s termination of employment.
Notwithstanding the preceding, to the extent that the following amounts are otherwise included in
the definition of Pay and are paid no later than the later of the date which is 21/2 months after
termination of employment or the end of the Plan Year that includes the date of termination of
employment, such amounts paid after an Associate’s termination of employment shall be deemed Pay:
regular pay, including compensation for services during regular working hours, overtime, shift
differential, commissions, bonuses or other similar payments, and payment for unused accrued sick,
vacation or other leave, but only if the Associate would have been able to use the leave if
employment had continued. The rules described in this Section 1.35 with respect to post-employment
payments shall not apply to payments to an individual who does not currently perform services for
the Employer by reason of qualified military service, to the extent such payments do not exceed the
compensation such individual would have received from the Employer if he or she had continued to
perform services for the Employer.

     1.36 Pooled Investment Account means an account established pursuant to an administrative
services agreement between the Company and the Trustee.

     1.37 Plan means this Collective Brands 401(k) Profit Sharing Plan.

     1.38 Plan Year means a calendar year ending each December 31.

     1.39 Prior Plan means either The May Department Stores Company Profit Sharing Plan, the Volume
Shoe Corporation Profit Sharing Plan, or such other qualified plan as may be so designated by the
Committee.

     1.40 Qualified Domestic Relations Order means a “qualified domestic relations order” as that
term is defined in Code Section 414(p), provided that such order was entered on or after January 1,
1985.

6

 

     1.41 Retirement means a Member’s termination of employment on or after age 55 and after
completing at least five (5) Years of Service or attaining the fifth anniversary of participation,
as of which date the Member’s benefit shall be nonforfeitable.

     1.42 Rollover Contributions means contributions which the Associate or Member, as applicable,
elects to make in accordance with Section 11.02.

     1.43 Social Security Wage Base means, with respect to each Plan Year, the maximum amount of
wages which are subject to tax in such year under the Federal Old Age, Survivors and Disability
Insurance System.

     1.44 Total and Permanent Disability or Disability means the qualification for disability under
Title 11 of the Federal Social Security Act.

     1.45 Transferred Accounts means Member and Company Accounts transferred from the May Plan or
as applicable, the Collective Licensing International LLC 401(k) Plan (the “CLI Plan”).

     1.46 Trust Agreement means the agreement or agreements provided for in Section 15 as amended
from time to time.

     1.47 Trust Fund means all the assets of the Investment Funds and any other assets which are
held in one or more trusts by the Trustee or Trustees for the purposes of this Plan.

     1.48 Trustee means the corporation(s), person or persons which may at any time be acting as
Trustee or Trustees under the Trust Agreement.

     1.49 Unit means one of the units representing an interest in an Investment Fund as provided in
Section 6.03.

     1.50 Unit Value means the value of each Unit in an Investment Fund as of the Valuation Date as
determined pursuant to Section 6.04.

     1.51 Valuation Date means any day that the New York Stock Exchange is open for business or any
other date chosen by the Committee. Prior to March 31, 2000, Valuation Date means the last
business day of each calendar month and any other date chosen to perform a valuation.

     1.52 Vesting Service for purposes of determining a Member’s vested interest under Section 6.07
prior to January 1, 2012 is based on “elapsed time” and is to be determined in accordance with the
following definitions:

(a) “Employment Commencement Date” means the date upon which an Associate first performs an
Hour of Service.

(b) “Hour of Service” means an hour for which an Associate is paid or entitled to payment
for the performance of duties for the Employer or any other member of the Group.

7

 

(c) “Period of Service” means a period beginning on the Associate’s Employment Commencement
Date (or Reemployment Commencement Date, as the case may be) and ending on his Severance
from Service Date.

(d) “Severance from Service Date” means the earlier to occur of:

(i) the last date upon which an Associate terminates employment with the Employer or
any other member of the Group (either voluntarily or involuntarily), retires or
dies; or

(ii) the first anniversary of the date upon which the Associate was first absent
from service with the Employer (with or without pay) for any other reason (i.e.,
vacation, sickness, disability, leave of absence or layoff).

     Notwithstanding the foregoing, the Severance from Service Date of an Associate who is absent
from service with the Employer beyond the first anniversary of the first day of such absence on
account of maternity or paternity (as described in Code Sections 410(a)(5)(E) or 411(a)(6)(E))
shall be the second anniversary of the first day of such absence; and the period of time between
such first and second anniversaries shall not be treated as a Period of Service or as a Period of
Severance.

(e) “Period of Severance” means a period beginning on an Associate’s Severance from Service
Date and ending upon the Associate’s Reemployment Commencement Date.

(f) “Reemployment Commencement Date” means the first date, following a Severance from
Service Date, upon which the Associate performs an Hour of Service for the Employer or any
other member of the Group.

(g) “Service Spanning Rules.” In determining whether or not an Associate has completed a
twelve month Period of Service for purposes of vesting, the following Periods of Severance
shall be treated as Periods of Service:

(i) If an Associate terminates employment with the Employer (either voluntarily or
involuntarily) or retires, and then performs an Hour of Service within the twelve
month period beginning on the Severance from Service Date, such Period of Severance
shall be treated as a Period of Service; and

(ii) If an Associate terminates employment with the Employer (either voluntarily or
involuntarily) or retires during an absence from service of twelve months or less
for any reason other than a termination or retirement, and then performs an Hour of
Service within a period of twelve months from the date the Employee was first absent
from service, the Period of Severance shall be treated as a Period of Service.

     Effective with respect to each Associate who performs an Hour of Service on or after January
1, 2012, subject to Section 6.07(c), an Associate shall accrue one year of Vesting

8

 

Service for each Plan Year on or after January 1, 2012, during which he completes 1,000 Hours
of Service.

     1.53 Year of Service for purposes of determining eligibility under Section 2 means a year of
employment during which the Associate has been paid for not less than 1,000 Hours of Service for an
Employer or any other member of the Group. An Associate shall be credited with a year of
employment on each anniversary date of his commencement of employment with an Employer during which
he earns not less than 1,000 Hours of Service for an Employer or any other member of the Group.
Periods of temporary illness, temporary layoff, Military Service, and Authorized Leaves of Absence
shall not be deemed as breaking continuity of employment and shall be counted in determining Years
of Service. The term “Year of Service” shall also include an employment year during which, except
to the extent otherwise provided in Treasury Regulations, a “leased employee” within the meaning of
Code Section 414(n) has been paid for not less than 1,000 Hours of Service for the Employer even
though during such period the leased employee was not an Associate as defined in Section 1.05. The
term “Year of Service” shall include any period required to be included by the Family and Medical
Leave Act of 1993.

     The extent to which service with another organization, part or all of whose business
operations are acquired by the Company (or by an Employer), shall be credited as “Years of Service”
hereunder or as “Vesting Service” under Section 1.52 shall be determined by the Company or by the
Committee on a case-by-case basis.

9

 

SECTION 2

Membership

     2.01 Conditions of Eligibility.

(a) Each Associate who on August 14, 2011 was a Member of or is eligible to be a Member of
the Plan shall continue to be a Member of this Plan entitled to make Member Contributions
pursuant to Section 4 and eligible to share in Company Contributions pursuant to Section 3.

(b) On and after August 15, 2011, each other Associate shall be eligible to become a Member
of the Plan when the Associate attains age 21 and meets such other eligibility criteria for
Part-Time and Full-Time Associates as set forth below. Once determined eligible, membership
commences as of the first day of the month coincident with or following the date the
Associate has met the applicable eligibility requirements. Such Associate shall be
eligible:

(i) to make Member Contributions pursuant to Section 4;

(ii) to share in Company Matching Contributions pursuant to Section 3.02;

(iii) to share in Company Profit Sharing Contributions, if any, pursuant to Section
3.01.

     Effective January 1, 2006, a Full-Time Associate shall be eligible to make Member
Contributions pursuant to Section 4 as of the first day of the month coincident with or
following the date he has completed 60 days of employment with the Employer and attained age
21. Further, a Full-Time Associate shall be eligible to receive a Company Matching
Contribution coincident with or following the date he has completed 180 days of service with
the Company and satisfied the requirements of Section 3.03. For the purposes of the
preceding sentence, a “Full-Time Associate” is an Associate classified on the Employer’s
records as a Full-Time Associate. In many locations, this means the Associate is normally
scheduled to work 32 or more hours per week. However, the Associate’s classification on the
Employer’s records, and not the actual number of hours worked in any period, determines
Full-Time status. Effective January 1, 2007, a Part-Time Associate shall be eligible to
make Member Contributions pursuant to Section 4 as of the first day of the month coincident
with or following the date he has completed one full year of employment. Prior to the
effective date of January 1, 2007, Part-Time Associates must have completed one full Year of
Service to be eligible to make Member Contributions.

     Effective August 15, 2011, a Full-Time Associate or Part-Time Associate shall be
eligible to make Member Contributions pursuant to Section 4 as of the first day of the month
coincident with or following the date he becomes an Associate and has attained age 21. In
addition, a Full-Time Associate or Part-Time Associate shall be eligible to

10

 

receive a Company Matching Contribution if he satisfies the requirements of Section
3.03.

(c) After a Member’s latest employment or reemployment as an Associate, he shall be deemed
to have elected to make a three percent (3%) Before-Tax Contribution pursuant to Section
4.01(b), commencing with the first paycheck issued with respect to the first payroll period
beginning on or after the first day of the month coincident with or following the date the
Employer determines he met the foregoing eligibility requirements and, effective August 15,
2011, the date he has completed 180 days of such employment and attained age 21.
Notwithstanding this “deemed” election, an Associate or Member may elect pursuant to
procedures established by the Committee to not make, or to suspend making, said three
percent (3%) automatic Before-Tax Contribution, or pursuant to Section 4.01(a) or 4.01(b) to
make an After-Tax or a Before-Tax Contribution of an amount other than three percent (3%).

(d) Associates employed by the Company’s Puerto Rican Subsidiaries are not eligible for
membership hereunder. If any such Associate has Accounts in this Plan, such Accounts shall
continue to be revalued as of each succeeding Valuation Date pursuant to Section 6.04.

(e) Notwithstanding any other provisions of the Plan, any individual who is providing
services to the Employer in the capacity of, or who is designated by the Employer as an
independent contractor, and who is subsequently reclassified as an Associate by court or
similar action (whether retroactively or prospectively), shall not be eligible to
participate in the Plan, and shall be treated as a member of an excluded class. No such
excluded individual shall have any claim for benefits under the Plan for any period during
which he is excluded from participation.

     2.02 Re-Employment. A former or inactive Member who is reemployed by the Employer after his
prior termination of employment must satisfy the eligibility requirements in Section 2.01 in order
to become a Member of the Plan again.

11

 

SECTION 3

Company Contributions

     3.01 Amount of Company Profit Sharing Contribution. The Company or an Employer may contribute
to the Trust, as of the end of each Plan Year, a percentage of the Company’s Net Profits as a
Company Profit Sharing Contribution. The amount of such contribution, if any, shall be determined
by the Board of Directors in its discretion. Any such contribution shall be made as soon as
practicable after the close of the Company’s Fiscal Year. All such contributions advanced to the
Plan by the Company shall be reimbursed to the Company by the Employer. Notwithstanding the above,
prior to January 1, 2009, the amount of any “non-elective contribution” the Company or an Employer
determines to contribute for plan year 2008 may be contributed to the Trust as of January 1, 2009
or as soon as practicable after the close of the Company’s Fiscal Year. For this purpose, the term
“non-elective contribution” shall have such meaning as set forth in the CLI Plan in effect on
December 31, 2008. Eligibility for such “non-elective contribution” shall be determined based upon
the rules in effect under the CLI Plan on December 31, 2008.

     3.02 Amount of Company Matching Contribution. The Company shall, in its sole and absolute
discretion, contribute to the Trust, as of the end of each Plan Year, a total combined amount as to
this Plan and the Payless ShoeSource, Inc. Profit Sharing Plan for Puerto Rico Associates (“Puerto
Rico Plan”) equaling up to 21/2% of its Net Profits, in the form of a Company Matching Contribution.
Such Company Matching Contributions may be made by an Employer, rather than by the Company, as to
that Employer’s participating Associates. The total amount of such contribution shall be allocated
in proportion to the amount that each Member’s Contributions under Sections 4.01(a) and 4.01(b) for
such Plan Year, up to a total of 5% of such Member’s Pay for such Plan Year, bears to the total
amount of all Member Contributions up to 5% of such Members’ Pay for such Plan Year. Such Company
Matching Contribution shall be determined and paid to the Trustee as soon as practicable after the
close of each Fiscal Year. Notwithstanding the above, prior to January 1, 2009, the amount of any
“employer matching contribution” the Company or an Employer determines to contribute for Plan Year
2008 for any Member who was employed by Collective Licensing International LLC as of December 31,
2008, may be contributed to the Trust as of January 1, 2009 or as soon as practicable after the
close of the Company’s Fiscal Year. For this purpose, the term “employer matching contribution”
shall have such meaning as set forth in the Collective Licensing International LLC 401(k) Plan
(“CLI Plan”) in effect on December 31, 2008. Eligibility for such “employer matching contribution”
shall be determined based upon the rules in effect under the CLI Plan on December 31, 2008.
Notwithstanding any of the above, for Plan Year 2009, and pursuant to Section 3.03 below, any
Member whose employment terminates during the period beginning on January 1, 2009 and ending on
February 25, 2009 during the 2009 Plan Year by reason of Retirement, death or Disability, shall be
entitled to a minimum guaranteed Company Matching Contribution of $.25 per $1.00 of Member
Contributions up to 5% of Pay in accordance with the Plan terms then in effect.

     3.03 Allocation of Company Contributions. The Company Contributions shall be allocated only
to the Company Accounts of Members who are employed by the Employer on the last day of the Plan
Year and on behalf of Members whose employment has terminated during

12

 

the Plan Year by reason of Retirement, death or Disability. Company Profit Sharing
Contributions shall be credited to eligible Members’ Company Profit Sharing Contribution Accounts.
Company Profit Sharing Contributions allocated prior to or as of July 31, 1997 shall be fully
vested; Company Profit Sharing Contributions allocated thereafter shall be subject to the vesting
provisions of Section 6.07. Company Matching Contributions shall be subject to the vesting
provisions of Section 6.07 and to the withdrawal penalty provisions of Section 8.02(a). No Company
Matching Contribution shall be made with respect to a Member Before-Tax Contribution in excess of
the Code Section 402(g) and 414(v) limit, as revised from time to time.

     3.04 Profit Sharing Allocation Formula. The Company Profit Sharing Contribution, if any,
shall be allocated to all Members eligible to share in the contribution according to the ratio that
each Member’s Allocation Pay Amount for the Plan Year bears to the total Allocation Pay Amount for
all eligible Members for the Plan Year. For this purpose the term eligible Members includes
Members in both the Puerto Rico Plan and this Plan.

     3.05 Investment of the Company Contribution. The amounts allocated to each Member pursuant to
Section 3.03 shall be credited to his Company Accounts and invested in one or more of the
Investment Funds described in Section 5.01 and in the percentages designated by the Member in the
investment election filed pursuant to Section 5.02 effective at the time the amount is allocated.

     3.06 Return of Company Contributions.

(a) If, after the Company Contribution has been made and allocated, it should appear that,
through oversight or a mistake of fact or law, a Member (or an Associate who should have
been considered a Member) who should have been entitled to share in such contribution,
receives no allocation or receives an allocation which was less than he should have
received, the Company may, at its election and in lieu of reallocating such contribution,
make a special make-up contribution for the Company Account of such Member in an amount
sufficient to provide for him the same addition to his Company Account as he should have
received. Similarly, if a Member received an allocation which was more than he should have
received (or an Associate was inappropriately included in the Plan), the Company, at its
election, may reallocate such contribution, offset other Company contributions against such
allocation, or use such allocation to pay Plan expenses.

(b) Each contribution made to the Trust shall be made on the condition that it is currently
deductible by the Company or Employer under Code Section 404 for the taxable year with
respect to which the contribution is made. If a contribution subsequently is determined,
whether in whole or in part, not to be currently deductible as provided in the preceding
sentence, then, within one year of the date of disallowance of the deduction of such Company
Contribution, an amount equal to the disallowed deduction shall be returned to the Company
or Employer.

(c) Earnings attributable to a contribution that is returned pursuant to Subsection (a) or
(b)) above shall not be withdrawn, but losses attributable thereto shall reduce the amount
returned to the Company and/or Employer.

13

 

SECTION 4

Member Contributions

     4.01 Procedure for Making Contributions.

(a) After-Tax Contributions. Subject to the limitations set forth in Sections 4.02, 4.03
and 4.04, each Member may contribute to the Plan an amount (in whole percentage points)
equal to not less than 1% nor more than 15% (effective May 1, 2002, 75%) of his Pay as he
shall have designated pursuant to procedures established by the Company (which may establish
lower permissible After-Tax Contributions for Highly Compensated Employees); provided,
however, that any Before-Tax Contributions made on behalf of the Member shall reduce, by the
percentage which he elects to have contributed pursuant to Section 4.01(b)(i), the
percentage of Pay that the Member may contribute pursuant to this Section 4.01(a).

(b) Before-Tax Contributions.

(i) Subject to the limitations set forth below, each Member may elect that his
Employer shall contribute directly to the Trust Fund an amount equal to a whole
percentage of his Pay, not less than 1% nor greater than such percentage as may be
determined from time to time by the Company which amount shall be his Before-Tax
Contribution. The maximum Before-Tax Contribution by a Member determined to be a
Highly Compensated Employee under Section 4.02, for the Plan Year in question, may
be further restricted or limited by the Company or Committee from time to time.

(ii) Pursuant to Section 2.01(c), each eligible Member who has satisfied the
requirements of such section shall be deemed to have elected to make a three percent
(3%) Before-Tax Contribution, unless the Member elects otherwise in accordance with
procedures established by the Committee.

(c) Notwithstanding any election in accordance with Section 4.01(b), if the Committee at any
time determines that all or any portion of the Member’s Before-Tax Contributions should be
treated as After-Tax Contributions in order for the Before-Tax Contribution provisions of
the Plan to qualify as a “qualified cash or deferred arrangement” for purposes of Code
Section 401(k), or if the Actual Deferral Percentage standards set forth in Code Section
401(k)(3) are not met at the end of the Plan Year, then the Committee, in its sole and
absolute discretion,

(i) may, in accordance with Section 4.02 below, limit the amount which shall be
contributed by the Employer as Before-Tax Contributions after the date of such
determination on behalf of all or any portion of the Members and,

(ii) may, except with respect to situations in which Section 4.01(h) applies, (and
prior to March 15 of the calendar year following the Plan Year in which such
contributions are made) declare all or such portion of the Before-Tax

14

 

Contributions theretofore or thereafter made on behalf of all or a portion of the
Members to be After-Tax Contributions. Effective January 1, 1997, if Before-Tax
Contributions are made to another plan or plans, this Plan and such other plans must
be aggregated for purposes of Section 410(b) of the Code (other than the average
benefit percentage test).

(d) The Employer shall (i) deduct a Member’s After-Tax Contributions from the Pay of the
Member in such installments as the Employer may deem appropriate, (ii) contribute a Member’s
Before-Tax Contributions on behalf of the Member, and (iii) reduce the Pay that is paid to
the Member directly in cash by an amount equal to the Member’s Before-Tax Contributions in
such installments as the Employer shall deem appropriate. The amounts so deducted and so
contributed shall be paid by the Employer to the Trustee not later than 15 days following
the end of the month with respect to which such amounts are to be so deducted and
contributed or within such shorter period of time as may be designated under the Code, ERISA
or related regulations. The Employer may, from time to time, make estimated contribution
payments to the Trustee during each month.

(e) Effective with the first payroll period beginning in any calendar month, or as of such
other effective time as may be determined by the Committee, a Member may elect to change the
rate of his After-Tax Contributions to any other rate permitted by Subsection (a) of this
Section 4.01 and may elect to change the amount to be contributed by the Employer directly
to the Trust Fund as Before-Tax Contributions to an amount equal to an amount permitted by
Subsection (b) of this Section 4.01 with respect to such contributions to be made after the
effective date of the election, pursuant to procedures established by the Committee.

(f) Not later than 15 days prior to the beginning of a payroll period of a Member, or not
later than such other date as may be determined by the Committee, such Member may elect,
pursuant to procedures established by the Committee, (i) to suspend making After-Tax
Contributions and (ii) that the Employer should suspend making Before-Tax Contributions on
his behalf, all as of the beginning of such payroll period. Not later than 15 days prior to
the beginning of a payroll period of a Member, or not later than such other date as may be
determined by the Committee, such Member may elect (i) to resume making After-Tax
Contributions and, (ii) that the Employer shall resume making Before-Tax Contributions on
his behalf, by indicating any amount of contributions permitted under Subsection (a) and
designating an amount equal to any amount of Pay as Before-Tax Contributions that is
permitted under Subsection (b) hereof.

(g) Contributions pursuant to this Section 4.01 shall be credited to Member Accounts.

(h) Notwithstanding any election in accordance with Subsection (b), the total amount of a
Member’s Before-Tax Contributions and other contributions made by the Member under Code
Section 401(k) to another plan qualified under Code Section 401(a) for any calendar year
shall not exceed $16,500 (as adjusted from time to time by the Secretary of the Treasury or
his delegate, pursuant to Code Section 415(d)). If any Member may reach the $16,500 limit
(as adjusted) the Committee can direct that all or any portion of

15

 

such Member’s Contributions during such year shall be After-Tax Contributions regardless of
such Member’s elections pursuant to Sections 4.01(a) and 4.01(b). Effective May 1, 2002,
all employees who are eligible to make elective deferrals under this Plan and who have
attained age 50 before the close of the Plan Year shall be eligible to make catch-up
contributions in accordance with, and subject to the limitations of, Section 414(v) of the
Code. Such catch-up contributions shall not be taken into account for purposes of the
provisions of the Plan implementing the required limitations of Sections 402(g) and 415 of
the Code. The Plan shall not be treated as failing to satisfy the provisions of the Plan
implementing the requirements of Sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416
of the Code, as applicable, by reason of the making of such catch-up contributions.

(i) The Committee shall provide each new Member a notice that explains the procedure for
making Before-Tax Contributions under Sections 4.01(b) and 2.01(c), including the Member’s
right to elect to make no Before-Tax Contribution from his or her Pay and the manner in
which the amount of such contributions may be changed. In addition, the Committee shall
provide an annual notice to each Member indicating his or her Before-Tax Contributions as a
percentage of Pay, describing the right to alter and the procedure for changing such
percentage, and explaining the timing for implementation of any such change.

     4.02 Limitations On And Distributions Of Before-Tax Contributions For Highly Compensated
Employees.

     The Committee is authorized to reduce to the extent necessary the maximum contributions under
Section 4.01(b) for Highly Compensated Employees prior to the close of the Plan Year if the
Committee reasonably believes that such reduction is necessary to prevent the Plan from failing
both tests in Code Section 401(k)(3). Such adjustments shall be made in accordance with rules
prescribed by the Committee. The Committee may implement rules limiting contributions under
Section 4.01(b) which may be made on behalf of some or all Highly Compensated Employees so that the
limits of Section 401(k)(3) or 401(m)(2) of the Code are satisfied. If for any Plan Year the Plan
satisfies neither of the tests set forth in Code Section 401(k)(3), the Trustee shall be directed
by the Committee to return to each Highly Compensated Employee his or her portion of the excess
contributions (plus the income or less the loss allocable to such excess contributions) for such
Plan Year within 12 months after the last day of such Plan Year. A Highly Compensated Employee
shall forfeit any Matching Contributions which were contributed on account of any portion of the
excess contributions even if such Matching Contributions are vested. Each Highly Compensated
Employee’s portion of the excess contributions for a Plan Year shall be determined under a two step
process. First, the aggregate amount of excess contributions shall be calculated. This shall be
done by reducing the actual deferral percentages of those Highly Compensated Employees with the
highest actual deferral percentages to the extent necessary but not below the next highest level of
actual deferral percentages. This process shall be repeated, to the extent necessary, until the
actual deferral percentage for the group of Highly Compensated Employees satisfies one of the tests
set forth in Code Section 401(k)(3). The aggregate amount of excess contributions shall be equal
to the sum of all such reductions. Second, the aggregate amount of excess contributions to be
returned shall be allocated by reducing the Before-Tax Contributions of those Highly Compensated
Employees

16

 

with the highest amount of Before-Tax Contributions to the extent necessary but not below the
next highest amount of Before-Tax Contributions. This process shall be repeated, to the extent
necessary, until all excess contributions to be returned shall be allocated among the Highly
Compensated Employees. The income or loss allocable to a Highly Compensated Employee’s portion of
the excess contribution will be determined under such reasonable method as the Committee shall
establish, provided the method does not discriminate in favor of Highly Compensated Employees, is
used consistently for all Members and for all corrective distributions under the Plan for the Plan
Year, and is used by the Plan for allocating income to Members’ accounts.

(a) Coordination With Distributions Of Elective Deferrals. If the Plan is required to
distribute both elective deferrals and excess contributions for a Plan Year, the Plan shall:

(i) calculate and distribute the elective deferrals before determining the excess
contributions to be distributed to Highly Compensated Employees;

(ii) calculate the actual deferral percentage including the amount of excess
elective deferrals distributed pursuant to (i) above; and

(iii) distribute excess contributions to Members by reducing the excess
contributions distributed to a Member by the amount of excess elective deferrals
distributed to such Member.

(b) Election To Make Additional Contributions. Notwithstanding the above, in accordance
with Treasury Regulation Section 1.401(k)-2(a)(6), the Company may elect, in lieu of all or
a portion of the corrective distribution described above in this Section, to make additional
qualified nonelective contributions or qualified matching contributions which are treated as
elective deferrals under the Plan and that, in combination with the elective deferrals,
satisfy the actual deferral percentage test. Any such additional qualified nonelective
contributions will be credited to a Member Before-Tax Account and shall be allocated to each
Member who is not a Highly Compensated Employee in an amount as determined by the Company
and will be contributed as a percentage of such Member’s Pay for the Plan Year. Any such
additional qualified matching contributions will be credited to a Member Before-Tax Account
and shall be allocated to each Member who is not a Highly Compensated Employee and will be
contributed as a percentage of the amount contributed by such Member under Section 4.01(b).

(c) Testing Year. The actual deferral percentage of Non-Highly Compensated Employees shall
be determined as of the Plan Year preceding the Plan Year for which the Plan must satisfy
one of the tests in Code Section 401(k)(3).

     4.03 Distributions of Excess Deferrals.

     If a Member’s elective deferrals for any calendar year exceed $16,500 (or such higher amount
prescribed under Section 402(g) of the Code), then the Member may file an election form prescribed
by the Committee with the Employer/Company designating in writing the amount of the Member’s Excess
Before-Tax Deferrals to be distributed from this Plan. Any such

17

 

election form must be filed with the Committee no later than the first March 1 following the
close of such calendar year in order for the Committee to act on it. If such an election form is
timely filed, the Trustee shall distribute to the Member the amount of such Excess Before-Tax
Deferrals which the Member has allocated to this Plan together with any income or less any loss
allocable to such amount on or before the first April 15 following the close of such calendar year.
In the case of a Highly Compensated Employee, any Matching Contributions which were contributed on
account of the Excess Before-Tax Deferrals being distributed will be forfeited, even if such
Matching Contributions are vested. For purposes of this Section 4.03, the income or loss allocable
to such Excess Before-Tax Deferrals will be determined under such reasonable method as the
Committee shall establish, provided the method does not discriminate in favor of Highly Compensated
Employees, is used consistently for all Members and for all corrective distributions under the Plan
for the Plan Year, and is used by the Plan for allocating income to Members’ accounts.

     4.04 Limitations On And Distributions Of After-Tax Employee Contributions And Matching
Contributions For Highly Compensated Employees.

     The Committee is authorized to reduce to the extent necessary the maximum amount of Employer
Matching Contributions under Section 3.02 and Member After-Tax Contributions contributed on behalf
of any Highly Compensated Employee prior to the close of the Plan Year if the Committee reasonably
believes that such adjustment is necessary to prevent the Plan from failing both tests in Code
Section 401(m)(2). Such reduction shall be made in accordance with rules prescribed by the
Committee. Notwithstanding anything herein to the contrary, the tests in Code Section 401(m)(2)
shall be treated as satisfied with respect to such Matching Contributions and After-Tax
Contributions to the Plan, or a portion of the Plan, if the Plan or such portion is a collectively
bargained plan that automatically satisfies Code Section 410(b), in accordance with Treasury
Regulation Sections 1.401(m)-1(b)(2) and 1.410(b)-2(b)(7). If for any Plan Year the Plan fails to
satisfy either of the tests set forth in Code Section 401(m)(2), the Trustee shall be directed by
the Committee to distribute to each Highly Compensated Employee his or her vested portion (and
forfeit the nonvested portion) of the excess aggregate contributions (plus the income or less the
losses allocable to such excess aggregate contributions) for such Plan Year, within 12 months after
the last day of such Plan Year. Each Highly Compensated Employee’s portion of the excess aggregate
contributions for a Plan Year shall be determined under a two step process. First, the aggregate
amount of excess aggregate contributions shall be calculated. This shall be done by reducing the
actual contribution percentages of those Highly Compensated Employees with the highest actual
contribution percentages to the extent necessary but not below the next highest level of actual
contribution percentages. This process shall be repeated, to the extent necessary, until the
actual contribution percentage for the group of Highly Compensated Employees satisfies one of the
tests set forth in Code Section 401(m)(2). The aggregate amount of excess aggregate contributions
shall be equal to the sum of all such reductions. Second, the aggregate amount of excess aggregate
contributions to be distributed or forfeited shall be allocated by first reducing any After-Tax
Contributions and then any Matching Contributions made by or on behalf of Highly Compensated
Employees with the highest total amount of After-Tax Contributions and Matching Contributions to
the extent necessary but not below the next highest total amount of After-Tax Contributions and
Matching Contributions. This process shall be repeated, to the extent necessary, until all excess
aggregate contributions to be distributed or forfeited shall be allocated among the Highly
Compensated Employees. A Highly Compensated

18

 

Employee whose After-Tax Contributions are determined to be excess aggregate contributions
shall forfeit any Matching Contributions which were contributed on account of such After-Tax
Contributions, even if such Matching Contributions are vested. The income or loss allocable to a
Highly Compensated Employee’s portion of the excess aggregate contributions will be determined
under such reasonable method as the Committee shall establish, provided the method does not
discriminate in favor of Highly Compensated Employees, is used consistently for all Members and for
all corrective distributions under the Plan for the Plan Year, and is used by the Plan for
allocating income to Members’ accounts.

(a) Election To Make Additional Contributions. Notwithstanding the above, in accordance
with Treasury Regulation Section 1.401(m)-2(a)(6), the Company may elect, in lieu of all or
a portion of the distribution described above, to either (i) make an additional qualified
nonelective contribution that, in combination with Matching Contributions and After-Tax
Contributions for the Plan Year, satisfies the actual contribution percentage test or (ii)
recharacterize elective contributions as Matching Contributions. Any such additional
qualified nonelective contributions will be credited to a Member Before-Tax Account and
shall be allocated to each Member who is not a Highly Compensated Employee in an amount as
determined by the Company and will be contributed as a percentage of such Member’s Pay for
the Plan Year.

(b) The actual contribution percentage of Non-Highly Compensated Employees shall be
determined as of the Plan Year preceding the Plan Year for which the Plan must satisfy one
of the tests in Code Section 401(m)(2).

4.05 Definitions and Special Rules.

(a) Repeal of Multiple Use Test. The Multiple use test described in Treasury Regulation
Section 1.401(m)-2 shall not apply for Plan Years beginning after December 31, 2001.

(b) Special Definitions. All terms used in this Section 4 shall have the meaning given such
terms in Code Sections 401(k) and 401(m) and the regulations thereunder.

(c) Special Rule For Early Participation. If the Company applies Code Section 410(b)(4)(B)
in determining whether the Plan satisfies Code Section 410(b) by excluding from
consideration eligible Associates who have not met minimum age and service requirements, the
Company may exclude from consideration all Non-Highly Compensated Employees who have not met
the minimum age and service requirements of Code Section 410(a)(1)(A) for purposes of
satisfying the tests in Code Sections 401(k)(3) and 401(m)(2).

(d) Highly Compensated Employee In Two Or More Qualified Plans. The actual contribution
percentage and the actual deferral percentage of a Highly Compensated Employee who is
eligible to participate in two or more qualified plans which have (i) cash or deferred
arrangements or (ii) Matching Contributions or After-Tax Contributions features maintained
by the Employer or a member of the Group, shall be calculated by treating all such cash or
deferred arrangements in which the Highly

19

 

Compensated Employee is eligible to participate as one cash or deferred arrangement for purposes of
calculating the actual deferral percentage for such Highly Compensated Employee and all such
features in which the Highly Compensated Employee is eligible to participate as one feature
for purposes of calculating the actual contribution percentage for such Highly Compensated
Employee with respect to years ending within the same calendar year.

(e) Plan Restructuring. The Plan may be aggregated with another plan or other plans or
disaggregated under Section 1.401(k)-1(b)(4) and Section 1.401(m)-1(b)(4) of the Treasury
Regulations for any Plan Year in order to pass the actual contribution percentage and actual
deferral percentage tests set forth in this Section.

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SECTION 5

Investment Provisions

     5.01 Investment Funds.

(a) There shall be established as part of the Trust Fund a reasonable range of investment
options. The Committee may from time to time, in its discretion, change, delete or add
Investment Funds available within the Trust Fund; provided that unless and until the Plan is
amended accordingly, the Plan shall continue to provide a Collective Brands Common Stock
Fund as an investment option.

(b) Income from and proceeds of sales of investments in each Investment Fund shall be
reinvested in the same Investment Fund. Any income or other taxes payable with respect to a
Fund shall be charged to such Fund.

(c) A Trustee may, from time to time, make temporary investments in short term obligations
of the United States Government, commercial paper, or other investments of a short term
nature, pending investment in an Investment Fund.

     5.02 Investment Direction.

(a) A Member may elect that his Member Contributions be invested in 1% increments totaling
100% in one or more of the Investment Funds. Such election must be made pursuant to
procedures prescribed by the Committee. Such election shall be effective until and unless a
Member makes a different election for any period, but only as provided for under Subsection
5.02(b) and Subsection 5.02(c). If the Member fails to file a timely initial investment
election, he shall be deemed to have elected to have 100% of his Member Contributions
invested in the qualified default investment arrangement as may be determined by the
Committee. Until such time as the Committee determines otherwise and so notifies Members, a
Member’s share of any Company Contributions, when allocated as of Plan Year-end, shall be
invested in the same Investment Funds in the same proportions as the Member has elected in
connection with investment of his Member Contributions at the time the Company Contribution
is contributed to the Trust. Notwithstanding the preceding, effective September 1, 2011,
the amount of future contributions that a Member may elect pursuant to this Subsection
5.02(a) to be invested in the Collective Brands Common Stock Fund shall be limited to 20% of
such contributions.

(b) A Member may change his election with respect to future Member and Company Contributions
effective pursuant to procedures prescribed by the Committee and may not change his election
in any other manner except as provided in Subsections 5.02(a) and 5.02(c).

(c) Subject to Section 5.02(a), effective as of the date determined by the Committee, and
pursuant to procedures prescribed by the Committee, a Member may elect to have any or all of
the value in any of the Investment Funds which are credited to his Member

21

 

and/or Company Accounts transferred and invested in any one or more of the Investment Funds.

(d) Notwithstanding this Section 5.02, effective March 20, 2000, during the black out period
as determined by the Committee and the Trustee established to change to daily valuation or a
change in recordkeepers, no investment transfers or changes may be made by a Member unless
provided in Section 6.06. Notwithstanding anything to the contrary, no loans, withdrawals
or distributions shall be made during any such blackout period except as provided by the
Committee.

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SECTION 6

Accounts

     6.01 Member Accounts. The Committee shall maintain or cause to be maintained for each Member
under each Investment Fund in which his Member Contributions are invested separate Member Accounts
which shall reflect the portion of his interest in such Investment Fund which is attributable to
his contributions. The Member’s After-Tax Contributions shall be credited to a separate Member
After-Tax Account. The Member’s Before-Tax Contributions shall be credited to a separate Member
Before-Tax Account. The Member’s or Associate’s Rollover Contributions shall be credited to a
separate Member Rollover Contribution Account.

     6.02 Company Accounts. The Committee shall maintain or cause to be maintained for each Member
under each Investment Fund in which his Company Contributions are invested separate Company
Accounts which shall reflect the portion of his interest in such Investment Fund which is
attributable to Company Contributions, as well as to contributions made by an Employer under prior
plans and to any income or earnings attributable to such Company Contributions and prior plan
contributions. The Member’s Company Matching Contributions shall be credited to a separate Company
Matching Contribution Account. The Member’s Company Profit Sharing Contribution, if any, shall be
credited to a separate Company Profit Sharing Contribution Account.

     6.03 Maintenance of Accounts. For the purposes of maintaining Accounts pursuant to this
Section 6, each Investment Fund shall be divided into Units, and the Interest of each Member in
such Investment Fund shall be evidenced by the number of Units in such Investment Fund credited to
his Accounts.

     6.04 Valuation of Accounts. As of each Valuation Date the Committee shall determine the value
of a Unit in each Account by dividing the current market value of all property in each such Account
as of such Valuation Date (after deducting any expenses or other amounts including withdrawals
properly chargeable against such Account) by the number of Units then outstanding to the credit of
all Members in each such Account.

     6.05 Member Statements. The Committee shall furnish or cause to be furnished to each Member a
statement of his Company and Member Accounts, at least once each year, or more frequently if
required by applicable law.

     6.06 Shares of Collective Brands, Inc. (“Collective Brands Stock”) in the Collective Brands
Common Stock Fund.

(a) Each Member (or beneficiary of a deceased Member) who has Accounts invested in the
Collective Brands Common Stock Fund shall, as a named fiduciary within the meaning of
Section 403(a)(1) of ERISA, have the right to direct the Trustee with respect to the vote of
the number of shares of Collective Brands Stock attributable to Units credited to him in the
Collective Brands Common Stock Fund as of the latest practicable Valuation Date prior to or
contemporaneous with the record date set by the Company for each meeting of shareowners of
the Company. For such purpose the Trustee shall furnish

23

 

to each such Member prior to each such meeting the proxy statement for such meeting,
together with a form to be returned to the Trustee on which may be set forth the Member’s
instructions as to the manner of voting such shares of stock. Upon receipt of such
instructions, the Trustee shall vote such shares in accordance therewith. If a Member’s
instructions are not received by the Trustee in a timely manner, the Trustee shall vote such
Member’s shares in the same proportion as the shares of Common Stock for which instructions
were actually timely received from Members. The Trustee shall not divulge the instructions
of any Member.

(b) Each Member (or beneficiary of a deceased Member) who has Accounts invested in the
Collective Brands Common Stock Fund shall, as a named fiduciary within the meaning of
Section 403(a)(1) of ERISA, have the right with respect to the number of shares of
Collective Brands Stock attributable to Units credited to him in the Collective Brands
Common Stock Fund as of the latest practicable Valuation Date, to direct the Trustee in
writing as to the manner in which to respond to a tender or exchange offer with respect to
Collective Brands Stock, and the Trustee shall respond in accordance with the instructions
so received. The Trustee shall utilize its best efforts to timely distribute or cause to be
distributed to each Member such information as will be distributed to shareowners of the
Company in connection with any such tender or exchange offer, together with a form
requesting instructions on whether or not such shares will be tendered or exchanged. If the
Trustee shall not receive timely direction from a Member as to the manner in which to
respond to such a tender or exchange offer, the Trustee shall not tender or exchange any
 shares of Collective Brands Stock with respect to which such Member has the right of
direction. Tenders as a result of a self-tender offer by the Company shall continue
notwithstanding any investment change blackout. The Trustee shall not divulge the
instructions of any member. The proceeds from the tender or exchange of shares attributable
to Units in Collective Brands Common Stock Investment Fund accounts of Members shall be
transferred to one of the Investment Funds described in Section 5.01 pursuant to a procedure
established by the Committee.

     6.07 Vesting in Member and Company Accounts.

(a) Vesting Schedule. Unless otherwise specified herein, a Member shall have a fully vested
interest at all times (i) in his Member Accounts and (ii) in his Company Profit Sharing
Contribution Account balance determined as of July 31, 1997. A Member who has completed at
least two full Years of Service as of August 1, 1997 also shall be fully vested at all times
(i) in his Company Matching Contribution Account and (ii) in his Company Profit Sharing
Contribution Account determined at any time after July 31, 1997. The Company Matching
Contribution Account of a Member who is not or was not credited with at least two Years of
Service as of August 1, 1997 and his Company Profit Sharing Contribution Account
attributable to Company Profit Sharing Contributions, if any, based on such Member’s
eligibility for such contributions after August 1, 1997, shall vest according to the
following schedule:

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	Vesting Service	 	Vested Interest
	Fewer than 2 years

	 	 	0	%
	2 years

	 	 	25	%
	3 years

	 	 	50	%
	4 years

	 	 	75	%
	5 years or more

	 	 	100	%

     Notwithstanding the foregoing, a Member’s interest in his Company Matching Contribution
Account and his Company Profit Sharing Contribution Account shall become fully vested if the
Member terminates employment on account of Retirement, death or Disability.

     A Member’s interest in any “non-elective contributions” or “employer matching
contributions” as defined in the CLI Plan which were attributed to Member’s Account for
services rendered through December 31, 2008, shall vest as follows:

	 	 	 	 	 
	Vesting Service	 	Vested Interest
	Fewer than 1 year

	 	 	0	%
	1 year

	 	 	25	%
	2 years

	 	 	50	%
	3 years

	 	 	75	%
	4 years or more

	 	 	100	%

     Notwithstanding the foregoing, a Member’s interest in any “non-elective contributions”
or “employer matching contributions” as described above, shall become fully vested if the
Member terminates employment on account of death or Disability.

(b) Cash-out Distributions to Partially Vested Members and Restoration of Forfeitures. If,
pursuant to Section 10.01, a partially-vested Member receives a cash-out distribution before
he incurs a Forfeiture Break in Service (as defined in Subsection (d) below), the cash-out
distribution will result in an immediate forfeiture of the nonvested portion(s) of the
Member’s Company Matching and Company Profit Sharing Contribution Account(s). See
Subsection (e) below. A partially-vested Member is a Member whose Vested Interest,
determined under Section 6.07(a), in either his Company Matching Contribution Account or his
Company Profit Sharing Contribution Account, or both, is less than 100%. A cash-out
distribution is a distribution of the entire vested portion of the Member’s Account(s).

(i) A partially-vested Member who is reemployed by an Employer after receiving a
cash-out distribution of the vested portion of his Account(s) shall have such
forfeited amount restored, unless the Member no longer has a right to restoration
under this subparagraph (i). The amount restored by the Plan Administrator shall be
the same dollar amount as the dollar amount of his

25

 

Account(s) on the Valuation Date immediately preceding the date of the cash-out
distribution, unadjusted for any gains or losses occurring subsequent to that
Valuation Date but reduced by the amount of the prior cash-out distribution.
Restoration of the Member’s Account balance(s) includes restoration of all Code
Section 411(d)(6) protected benefits with respect to the restored Account(s) in
accordance with applicable Treasury regulations. The Plan Administrator will not
restore a reemployed Member’s Account balance(s) under this subparagraph (i) if the
Member (1) has incurred a Forfeiture Break in Service (as defined in Subsection (d)
below), or (2) terminates employment with the Employer prior to the last day of the
Plan Year in which the Member was reemployed.

(ii) If restoration of the Member’s Account(s) is permitted under subparagraph (i)
above, the Plan Administrator will restore the Member’s Account(s) on the same day
as the date of allocation of the Company Contribution for the Plan Year during which
such Member was reemployed by an Employer. To restore the Member’s Account(s), the
Plan Administrator, to the extent necessary, will allocate to the Member’s
Account(s):

(A) first, the amount, if any, of Member forfeitures otherwise available for
allocation under Subsection (e) below;

(B) second, deductible Employer contributions for the Plan Year to the
extent made under a discretionary formula; and

(C) third, as otherwise permitted by law.

The Plan Administrator will not take into account any allocation under this Subsection (b) in
applying the limitation on allocations under Section 13.

(iii) The deemed cash-out rule applies to a 0% vested Member. A 0% vested Member is
a Member whose Account(s) derived from Employer contributions is (are) entirely
forfeitable at the time of his termination of employment. Under the deemed cash-out
rule, the Plan Administrator will treat the 0% vested Member as having received a
cash-out distribution on the date of the Member’s termination of employment or, if
the Member’s Account(s) is (are) entitled to an allocation of Employer contributions
for the Plan Year in which he terminates employment, on the last day of that Plan
Year.

(c) Determination of Vesting Service. For purposes of determining a Member’s Vested
Interest in his Company Contributions Account(s) under Subsection (a) above, a Member shall
be credited with that number of years of Vesting Service determined by adding together all
of the Associate’s Periods of Service, whether or not consecutive, prior to January 1, 2012
plus his years of Vesting Service completed on and after January 1, 2012 determined in
accordance with Section 1.52. Notwithstanding the foregoing, Vesting Service shall not
include any Period of Service or Hours of Service before the Plan Year in which an Associate
attains age eighteen (18). Only whole years of service shall be taken into account for
purposes of applying the schedule set forth in

26

 

Subsection (a) above, and, for purposes of determining a Member’s number of whole years of service,
non-successive Periods of Service prior to January 1, 2012 must be aggregated, with 365 days
of service being deemed to constitute one year. For purposes of determining a Member’s
Period of Service prior to January 1, 2012, the Service Spanning rules described in Section
1.52(g) shall apply.

(d) Forfeiture Break in Service. For purposes of this Section 6.07, prior to January 1,
2012, a “Break in Service” is a Period of Severance of at least 365 days. Effective January
1, 2012, a “Break in Service” is a Plan Year in which a person completes 500 or fewer Hours
of Service. A “Forfeiture Break in Service” occurs when a Member or former Member incurs 5
consecutive Breaks in Service.

(e) Forfeiture Occurs. A Member’s forfeiture, if any, of his Account balance(s) derived
from Company contributions occurs under the Plan on the earlier of:

(i) the last day of the last pay period ending within the Plan Year in which the
Member first incurs a Forfeiture Break in Service; or

(ii) the date the Member receives a cash-out distribution.

     The Plan Administrator shall determine the percentage of a Member’s Account(s)
forfeiture, if any, under this Subsection (e) solely by reference to the vesting schedule of
Section 6.07(a). As of the last day of each Plan Year, the total amount of forfeitures
which occurred during such Plan Year shall be calculated and such amount shall be applied
(i) to restore under (b) above any amounts previously forfeited from rehired Members’
Accounts, (ii) to pay Administrative Expenses under Section 7.01 and (iii) the balance, if
any, shall be added to and allocated with the Company Matching Contribution for that Plan
Year.

(f) Former May Plan Members. The provisions of this Subsection (f) apply to a Member who
previously was employed by the Employer, when it was part of the Group which included The
May Department Stores Company, and who at the termination of his employment had Company
Accounts in the May Plan which were forfeited as a result of termination of employment. If
such Member has not incurred five consecutive Breaks in Service as defined in Section
6.07(b) and (d), the value of the Member’s Company Account forfeited under the May Plan will
be restored under this Plan (in the manner described in Subsection (b) above) and will be
100% vested.

27

 

SECTION 7

Expenses

     7.01 Administrative Expenses. To the extent permitted by applicable law, the costs and expenses
for administering this Plan, consisting of Trustee fees and expenses, Investment Manager fees and
expenses, fees and expenses of outside experts, expenses of maintaining records under Section 6 of
the Plan, and all other administrative expenses of the Plan, shall be paid out of the Trust Fund
unless the Company elects to pay them with its own funds. Costs incident to the purchase and sale
of securities, such as brokerage fees, commissions and stock transfer fees, are not regarded as
administrative expenses and shall be borne by the appropriate Investment Fund as determined by the
Trustee or Committee.

28

 

SECTION 8

Withdrawals During Employment

     8.01 Withdrawals Prohibited Unless Specifically Authorized. No withdrawal from the Plan shall be
permitted prior to a Member’s termination of employment, except as provided in Section 8.02.

     8.02 Authorized Withdrawals.

(a) Prior to his termination of employment, a Member may elect to withdraw, in cash, any or
all of the value in his Member After-Tax Accounts. However, in the event a Member elects to
withdraw all or a portion of his After-Tax Contributions made after August 1, 1997, such
Member shall forfeit his right to fifty percent (50%) of the Company Matching Contribution,
if any, otherwise allocable in connection with his Member Contributions for the Plan Year in
which the withdrawal occurs.

(b) Prior to his termination of employment, a Member may elect to withdraw, in the event of
a “hardship”, an amount in cash up to (i) the total amount of the Before-Tax Contributions
made to the Trust on his behalf, or (ii) the value in his Member Before-Tax Account,
whichever is less. In any event the amount withdrawn may not be greater than the amount
determined by the Committee as being required to meet the immediate financial need created
by the “hardship” and not reasonably available from other resources of the Member, whichever
amount is less. The term “hardship” means a heavy financial hardship in light of immediate
and heavy financial needs as determined by the Committee in accordance with Internal Revenue
Service regulations. The amount of an immediate and heavy financial need may include any
amounts necessary to pay any federal, state or local taxes or penalties reasonably
anticipated to result from the distribution. The determination shall be made in a
nondiscriminatory manner. Hardship shall include but not be limited to the following:

(i) Expenses for (or necessary to obtain) medical care that would be deductible
under Code Sections 213(a) and (d) (determined without regard to whether the
expenses exceed any applicable threshold amount of adjusted gross income);

(ii) Purchase (excluding mortgage payments) of a principal residence for the Member;

(iii) Payment of tuition, related educational fees, and room and board expenses for
the next 12 months of post-secondary education for the Member, his or her spouse,
children, or dependents (as defined in Code Section 152);

(iv) The need to prevent the eviction of the Member from his or her principal
residence or foreclosure on the mortgage of the Member’s principal residence.

(v) (Effective January 1, 2006). Payments for burial or funeral expenses for a
Member’s deceased parent, spouse, children or dependents (as
defined in Section 152

29

 

of the Code and effective January 1, 2006), without regard to Section
152(d)(1)(B).

(vi) (Effective January 1, 2006). Expenses for the repair of damage to Member’s
principal residence that would qualify for the casualty deduction under Section 165
of the Code (determined without regard to whether the loss exceeds 10% of adjusted
gross income).

     The Committee may adopt written guidelines which identify additional circumstances
constituting hardship and which provide procedures to be followed in the administration of hardship
withdrawal requests, which guidelines are hereby incorporated herein.

     In addition, such hardship must be one which in the judgment of the Committee, based on the
Member’s representations, cannot be relieved (1) through reimbursement or compensation by insurance
or otherwise, (2) by reasonable liquidation of the Member’s assets to the extent such liquidation
would not itself cause an immediate and heavy financial need, (3) by cessation of Member
Contributions under the Plan, (4) by other distributions or loans from employee benefit plans,
including this Plan, maintained by the Company or any other employer or (5) by borrowing from
commercial sources on reasonable commercial terms. The Member shall be required to submit
documentation, to be determined by the Committee, with his hardship withdrawal request to enable
the Committee to make a judgment regarding the validity of such hardship withdrawal request. For
any Member who has attained age 591/2, the “hardship” requirement shall be deemed waived.

(c) A Member who was a Participant in or eligible to be a Participant in the Volume Shoe
Corporation Profit Sharing Plan (the “Volume Plan”) as of December 31, 1988 and who had an
account balance in the Volume Plan attributable to Employer Contributions made to the Volume
Plan before July 31, 1976 and which account became a Company Account under The May
Department Stores Company Profit Sharing Plan and which has been transferred to this Plan,
shall be entitled to withdraw the market value of such account balance determined (and
frozen) as of December 31, 1988.

(d) A Member who has attained age 59 1/2, and who was a Participant in or eligible to be a
Participant in the CLI Plan as of December 31, 2008, and who had an account balance in the
CLI Plan on such date, shall be eligible to withdraw any portion of his vested Transferred
Account.

(e) Associates with Member Rollover Contribution Accounts may elect to withdraw their Member
Rollover Contribution Accounts prior to termination of employment.

(f) A withdrawal election shall be made pursuant to application procedures established by
the Committee. Contribution totals and Account values shall be determined as of the
Valuation Date coinciding with or next following the filing of the withdrawal election. If
the Member Accounts from which withdrawal is made are in more than one Investment Fund, the
withdrawal shall be pro rata from each such Investment Fund except in the case the Member is
subject to Section 16 of the Securities Exchange Act of 1934 or has been designated as a
“Designated Insider,” in which case

30

 

such Member’s withdrawal will be taken first from such Member’s Investment Funds other than
the Collective Brands Common Stock Fund.

31

 

SECTION 9

Benefits Upon Retirement, Death, Disability or Termination of Employment

     9.01 Benefits. Upon a Member’s Retirement, death, Disability, or other termination of employment,
the value of his Member Accounts and of his vested Company Accounts shall be determined as of the
Valuation Date prior to the date the distribution is calculated. A temporary Authorized Leave of
Absence for Military Service or for other purposes approved by the Employer shall not, while any
such Authorized Leave of Absence is validly in effect, be regarded as a termination of employment.
Effective January 1, 2007, if a Member dies while performing qualified Military Service, then the
Member’s spouse or Beneficiary is entitled to any benefits (other than benefit accruals relating to
the period of qualified Military Service), and the rights and features accompanying such benefits,
that such Member would otherwise be entitled to under the terms of the Plan had the Member been
reemployed by the Employer and terminated employment with the Employer on account of death.

     Any person who is a Leased Employee (as defined in Code Section 414(n), without regard to
Section 414(n)(2)(B)) of any member of the Group shall be treated for all purposes of the Plan as
if he were employed by a member of the Group which has not adopted the Plan. Notwithstanding
anything to the contrary in the Plan, a transfer from the status of an employee of the Employer to
that of a Leased Employee shall not be considered a termination of employment under the Plan. An
individual who has such a transfer shall not have a termination of employment until he ceases to be
an employee of the Employer and all members of its Group and is no longer a Leased Employee.

     9.02 Beneficiary. Any benefits payable on account of a Member’s death shall be paid to such
Member’s spouse. If such Member has no spouse or if such Member’s spouse shall have consented to
the naming of another beneficiary, such benefits shall be paid to the person or persons
(including, without limitation, estates, trust, or other entities) last named as beneficiary by
such Member on an appropriate form filed with the Committee. A spouse’s consent shall acknowledge
the effect of the consent and be in writing, witnessed by a Plan representative or notary public.
A spouse’s consent shall be irrevocable. If no beneficiary has been so named or the Member has no
designated beneficiary, any payment to be made under this Plan on account of a Member’s death shall
be paid to such Member’s spouse, or, if he has no spouse, to such Member’s estate. Whenever
permitted by the Code or regulations thereunder, the Committee may waive the requirements that a
spouse’s consent be obtained. Such waiver may be on a case by case basis or by categories.

32

 

SECTION 10

Payment of Benefits

     10.01 Time of Payment.

(a) All amounts distributable to a Member or Beneficiary pursuant to Section 9 shall, unless
the Member makes an approved election pursuant to Section 10.01(b) or 10.01(c), be paid in a
lump sum payment to be made as soon as practicable after the Valuation Date as of which the
Account values are determined pursuant to Section 9.01; provided, however, that any
additional amounts which may be allocated to a Member’s Company Accounts resulting from a
Company Contribution in respect of the calendar year in which employment terminates shall be
paid as soon as practicable after such contribution.

     Notwithstanding any provision of this Section 10 to the contrary, if the present value
of the nonforfeitable accrued benefit of a Member, including Company Contributions, Member
Contributions, Rollover Contributions and earnings thereon (but excluding accumulated
deductible employee contributions, if any) exceeds $1,000, no partial or total distribution
shall be made unless the Member has consented thereto in writing in the manner required by
law.

(b) A Member who was a Member of the CLI Plan as of December 31, 2008, may elect that all
Transferred Accounts distributable to him pursuant to Section 9 shall be paid (i) in lump
sum or (ii) monthly, quarterly, semi-annual or annual installments over a period not to
exceed Member’s assumed life expectancy (or Member and Member’s Beneficiary’s assumed life
expectancies) beginning with the Valuation Date as of which the lump sum payment would
otherwise be made.

     A Member who was a Member of the May Plan as of June 30, 1990 may elect that all
Transferred Accounts distributable to him pursuant to Section 9 shall be paid in annual
installments over a period not to exceed ten years beginning with the Valuation Date as of
which the lump sum payment would otherwise be made. In the event of the death of a Member
prior to the expiration of such period, all amounts which have not been distributed to him
shall be paid in a lump sum to his designated Beneficiary or his estate if there is no
designated Beneficiary. Subject to the foregoing, each such installment shall be paid as of
a Valuation Date and, until all the Accounts of the Member have been fully distributed, they
shall continue to be revalued as of each succeeding Valuation Date pursuant to Section 6.04.

     Notwithstanding the above, a Member who as of December 31, 1988 was or was entitled to
be a Participant in the Volume Shoe Corporation Profit Sharing Plan may elect that all
Transferred Accounts distributable to him pursuant to Section 9 be paid in the form of equal
monthly installments over a period not to exceed 120 months. Such payments shall otherwise
be made in accordance with the foregoing portion of this Subsection 10.01(b).

33

 

(c) A Member who is entitled to receive a distribution in excess of $1,000 may elect to
defer such distribution to the required minimum distribution age, as determined by law from
time to time. An election to defer distribution shall conform to such requirements as to
form, content, manner, and timing as shall be determined by the Committee and which
requirements shall be applied in a manner which does not discriminate in favor of Members
who are Highly Compensated Employees. All Accounts of a Member who elects to defer his
distribution shall continue to be revalued as of each succeeding Valuation Date pursuant to
Section 6.04. A deferred distribution shall be paid when such Member attains the required
minimum distribution age or at such earlier or later time as shall be determined by the
Committee as permitted by law. In the event of the death of a Member prior to distribution
of the deferred amounts, all amounts shall be distributed in a lump sum to his designated
Beneficiary or to his estate if there is no designated Beneficiary. The value for payment
shall be determined as of the Valuation Date coincident with or next following such Member’s
birthday coincident with the Member’s required minimum distribution age or such other
payment date determined by the Committee.

     10.02 Form of Payment. All distributions shall be made in the form of cash, except that
distributions from the Collective Brands Common Stock Fund shall be made in the form of full shares
of Collective Brands Common Stock, as applicable (with payment in cash for a fraction of a share)
or in cash if elected by the Member or Beneficiary. The rights extended to a Member hereunder shall
also apply to any Beneficiary or alternate payee of such Member.

     10.03 Indirect Payment of Benefits. If any Member or Beneficiary has been adjudged to be legally,
physically or mentally incapable or incompetent, payment may be made to the legal guardian or other
legal representative of such Member or Beneficiary as determined by the Committee. Such payments
shall constitute a full discharge with respect thereto.

     10.04 Inability to Find Member. If a Member or Beneficiary or other person to whom a benefit
payment is due cannot be found during the three years subsequent to the date a distribution was
required to be made under this Plan, the Accounts shall be forfeited at the end of such three-year
period. The value of such Accounts as of the date the distribution was required to be made shall
be restored if such Member or Beneficiary or other person makes a claim.

     10.05 Required Minimum Distributions.

     Notwithstanding anything to the contrary contained in the Plan, the entire interest of a
Member will be distributed in accordance with Code Section 401(a)(9) and the regulations thereunder
beginning no later than the Member’s Required Beginning Date. The provisions of this Section will
apply for purposes of determining required minimum distributions for calendar years beginning with
the 2003 calendar year. Notwithstanding the other provisions of this Section, distributions may be
made under a designation made before January 1, 1984, in accordance with section 242(b)(2) of the
Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to
section 242(b)(2) of TEFRA.

(a) If the Member dies before distributions begin, the Member’s entire interest will be
distributed, or begin to be distributed, no later than as follows:

34

 

     (1) If the Member’s surviving spouse is the Member’s sole designated
beneficiary, then distributions to the surviving spouse will begin by December 31 of
the calendar year immediately following the calendar year in which the Member died,
or by December 31 of the calendar year in which the Member would have attained age
701/2, if later.

     (2) If the Member’s surviving spouse is not the Member’s sole designated
beneficiary, then distributions to the designated beneficiary will begin by December
31 of the calendar year immediately following the calendar year in which the Member
died.

     (3) If there is no designated beneficiary as of September 30 of the year
following the year of the Member’s death, the Member’s entire interest will be
distributed by December 31 of the calendar year containing the fifth anniversary of
the Member’s death.

     (4) If the Member’s surviving spouse is the Member’s sole designated
beneficiary and the surviving spouse dies after the Member but before distributions
to the surviving spouse begin, this subsection, other than subsection (a)(1), will
apply as if the surviving spouse were the Member.

For purposes of this subsection, unless subsection (a)(4) applies, distributions are
considered to begin on the Member’s Required Beginning Date. If subsection (a)(4) applies,
distributions are considered to begin on the date distributions are required to begin to the
surviving spouse under subsection (a) (1). To the extent the Plan provides for
distributions in the form of annuities, if distributions under an annuity purchased from an
insurance company irrevocably commence to the Member before the Member’s Required Beginning
Date (or to the Member’s surviving spouse before the date distributions are required to
begin to the surviving spouse under subsection (a)(1)), the date distributions are
considered to begin is the date distributions actually commence.

(b) Unless the Member’s interest is distributed in the form of an annuity purchased from an
insurance company or in a single sum on or before the Required Beginning Date, as of the
first distribution calendar year distributions will be made in accordance with subsections
(c) and (d). To the extent the Plan provides for distributions in the form of annuities, if
the Member’s interest is distributed in the form of an annuity purchased from an insurance
company, distributions thereunder will be made in accordance with the requirements of Code
Section 401(a)(9) and the Treasury regulations.

(c) During the Member’s lifetime, the minimum amount that will be distributed for each
distribution calendar year is the lesser of:

     (1) the quotient obtained by dividing the Member’s account balance by the
distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9
of the Treasury regulations, using the Member’s age as of the Member’s birthday in
the distribution calendar year; or

35

 

     (2) if the Member’s sole designated beneficiary for the distribution calendar
year is the Member’s spouse, the quotient obtained by dividing the Member’s account
balance by the number in the Joint and Last Survivor Table set forth in Section
1.401(a)(9)-9 of the Treasury regulations, using the Member’s and spouse’s attained
ages as of the Member’s and spouse’s birthdays in the distribution calendar year.

Required minimum distributions will be determined beginning with the first distribution
calendar year and up to and including the distribution calendar year that includes the
Member’s date of death.

(d) If the Member dies on or after the date distributions begin and there is a designated
beneficiary, the minimum amount that will be distributed for each distribution calendar year
after the year of the Member’s death is the quotient obtained by dividing the Member’s
account balance by the longer of the remaining life expectancy of the Member or the
remaining life expectancy of the Member’s designated Beneficiary, determined as follows:

     (1) The Member’s remaining life expectancy is calculated using the age of the
Member in the year of death, reduced by one for each subsequent year.

     (2) If the Member’s surviving spouse is the Member’s sole designated
beneficiary, the remaining life expectancy of the surviving spouse is calculated for
each distribution calendar year after the year of the Member’s death using the
surviving spouse’s age as of the spouse’s birthday in that year. For distribution
calendar years after the year of the surviving spouse’s death, the remaining life
expectancy of the surviving spouse is calculated using the age of the surviving
spouse as of the spouse’s birthday in the calendar year of the spouse’s death,
reduced by one for each subsequent calendar year.

     (3) If the Member’s surviving spouse is not the Member’s sole designated
beneficiary, the designated beneficiary’s remaining life expectancy is calculated
using the age of the beneficiary in the year following the year of the Member’s
death, reduced by one for each subsequent year.

If the Member dies on or after the date distributions begin and there is no designated
beneficiary as of September 30 of the year after the year of the Member’s death, the minimum
amount that will be distributed for each distribution calendar year after the year of the
Member’s death is the quotient obtained by dividing the Member’s account balance by the
Member’s remaining life expectancy calculated using the age of the Member in the year of
death, reduced by one for each subsequent year.

(e) If the Member dies before the date distributions begin and there is a designated
beneficiary, the minimum amount that will be distributed for each distribution calendar year
after the year of the Member’s death is the quotient obtained by dividing the Member’s
account balance by the remaining life expectancy of the Member’s designated beneficiary,
determined as provided in subsection (d). If the Member dies before the date

36

 

distributions begin and there is no designated beneficiary as of September 30 of the year
following the year of the Member’s death, distribution of the Member’s entire interest will
be completed by December 31 of the calendar year containing the fifth anniversary of the
Member’s death. If the Member dies before the date distributions begin, the Member’s
surviving spouse is the Member’s sole designated beneficiary, and the surviving spouse dies
before distributions are required to begin to the surviving spouse under subsection (a)(1),
this Section will apply as if the surviving spouse were the Member.

(f) The following definitions shall apply for purposes of this Section:

     (1) Designated beneficiary shall mean the individual who is designated as the
beneficiary under the terms of the Plan and is the designated beneficiary under Code
Section 401(a)(9) and Section 1.401(a)(9)-1, Q&A-4 of the Treasury regulations.

     (2) A distribution calendar year is a calendar year for which a minimum
distribution is required. For distributions beginning before the Member’s death,
the first distribution calendar year is the calendar year immediately preceding the
calendar year which contains the Member’s Required Beginning Date. For
distributions beginning after the Member’s death, the first distribution calendar
year is the calendar year in which distributions are required to begin under
subsection (a). The required minimum distribution for the Member’s first
distribution calendar year will be made on or before the Member’s Required Beginning
Date. The required minimum distribution for other distribution calendar years,
including the required minimum distribution for the distribution calendar year in
which the Member’s Required Beginning Date occurs, will be made on or before
December 31 of that distribution calendar year.

     (3) Life expectancy means an individual’s life expectancy as computed by use of
the Single Life Table in Section 1.401(a)(9)-9 of the Treasury regulations.

     (4) The Member’s account balance is the account balance as of the last
valuation date in the calendar year immediately preceding the distribution calendar
year (valuation calendar year) increased by the amount of any contributions made and
allocated or forfeitures allocated to the account balance as of dates in the
valuation calendar year after the valuation date and decreased by distributions made
in the valuation calendar year after the valuation date. The account balance for
the valuation calendar year includes any amounts rolled over or transferred to the
Plan either in the valuation calendar year or in the distribution calendar year if
distributed or transferred in the valuation calendar year.

     (5) Required Beginning Date means the first day of April following the calendar
year in which the Member attains age 701/2 or, if later, the calendar year in which
the Member retires. In the case of a Member who is a “five percent owner” as
defined in Section 21.06(f)(2), Required Beginning Date means the

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first day of April following the calendar year in which the Member attains age
701/2.

(g) 2009 RMDs. Notwithstanding anything to the contrary in this Section 10.05, a Member, a
Member’s surviving spouse or a Member’s sole designated beneficiary who would have been
required to receive required minimum distributions under this Section 10.05 for 2009 but for
the enactment of Code Section 401(a)(9)(H) (“2009 RMDs”), and who would have satisfied that
requirement by receiving distributions that are (i) equal to the 2009 RMDs or (ii) one or
more payments in a series of substantially equal distributions (that include the 2009 RMDs)
made at least annually and expected to last for the life (or life expectancy) of the Member,
the joint lives (or joint life expectancy) of the Member and the Member’s designated
beneficiary, or for a period of at least 10 years, will not receive those distributions for
2009 unless the Member or the Member’s designated beneficiary chooses to receive such
distributions. Members and designated beneficiaries described in the preceding sentence
will be given the opportunity to elect to receive the distributions described in the
preceding sentence. In addition, solely for purposes of applying the direct rollover
provisions of the Plan, 2009 RMDs will be treated as eligible rollover distributions.

     10.06 Commencement of Benefit Distribution to Beneficiary. Distributions to the Beneficiary
entitled under Section 9.02 to receive any payments payable under this Plan on account of a
Member’s death shall be made in a lump sum payment not later than December 31 of the calendar year
following the calendar year in which the Member died.

     10.07 Commencement of Benefit Distribution to Alternate Payee. Distributions to an alternate payee
entitled under Section 17.01 to receive any payments payable under this Plan pursuant to the terms
of a Qualified Domestic Relations Order shall be made in accordance with the terms of such
Qualified Domestic Relations Order and this Plan on or after the date on which the Member has
attained his “earliest retirement age” (as defined under Code Section 414(p)) under the Plan.
Notwithstanding the foregoing, distribution to an alternate payee may be made prior to the Member’s
attainment of his earliest retirement age if, but only if: (1) the Qualified Domestic Relations
Order specifies distribution at that time or permits an agreement between the Plan and the
alternate payee to authorize an earlier distribution; (2) the distribution is a single sum
distribution of the alternate payee’s entire benefit entitlement under the Plan; and (3) in the
event the present value of the alternate payee’s benefits under the Plan exceeds $1,000, the
alternate payee consents to any distribution occurring prior to the Member’s attainment of earliest
retirement age.

     Nothing in this Section 10.07 shall be construed to permit a Member to (1) receive a
distribution at a time not otherwise permitted under the Plan, (2) permit the alternate payee to
receive a form of payment not otherwise permitted under the Plan, or (3) cause his Plan accounts to
be valued or otherwise determined in a manner not otherwise permitted under the Plan.

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SECTION 11

Permitted Rollover of Plan Distributions

     11.01 Rollover to Other Plans. Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a Distributee’s election under this Section, a Distributee may elect, at the time
and pursuant to procedures prescribed by the Committee, to have any portion of an Eligible Rollover
Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a direct
rollover. Such distribution may commence no less than thirty (30) days nor more than ninety (90)
after any notice required under Treas. Reg. Section 1.411(a)-11(c) (or its successor) and
explanation of his right to rollover his distribution and tax explanation in accordance with
Internal Revenue Rules are given to a Member or other Distributee, provided that the Member has
been clearly informed that he has a right to a period of at least thirty (30) days after receiving
said notice to consider the decision as to whether to elect a distribution or, if applicable, a
distribution option, and the Member nevertheless affirmatively elects distribution preceding the
expiration of thirty (30) days. A portion of the distribution shall not fail to be an Eligible
Rollover Distribution merely because the portion consists of after-tax Member contributions which
are not includible in gross income. However, such portion may be transferred only to (i) an
individual retirement account or annuity described in Sections 408(a) or (b) of the Code, or (ii)
effective January 1, 2007, a qualified plan described in Section 401(a) of the Code or an annuity
contract described in Code Section 403(b) that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which is not so includible.

     11.02 Rollover from Other Plans. An Associate eligible to participate in the Plan, regardless of
whether he has satisfied the participation requirements of Section 2.01, may transfer to the Plan
an Eligible Rollover Distribution provided that such distribution is from an Eligible Retirement
Plan other than an individual retirement account described in Code Section 408(a) or an individual
retirement annuity described in Code Section 408(b); and, provided further, that this Plan shall
not accept the portion of any Eligible Rollover Distribution that is not includible in gross
income. If such transfer is not a direct transfer, such a transfer may be made only if the
following conditions are met:

(a) the transfer occurs on or before the 60th day following the Associate’s
receipt of the distribution from the Eligible Retirement Plan; and

(b) The amount transferred is equal to any portion of the distribution the Associate
received from the Eligible Retirement Plan, not in excess of the fair market value of all
property received in such a distribution reduced by employee contributions.

The Committee shall develop such procedures, and may require such information, from a Member
desiring to make such a transfer, as it deems necessary or desirable to determine that the
proposed transfer will meet the requirements of the Section. Upon approval by the Committee
or its Administrative Delegate, the amount transferred shall be deposited in the Trust Fund
and shall be credited to the Member’s account. Such rollover amount shall be one hundred
percent (100%) vested in the Member, shall share in the income

39

 

allocations in accordance with Section 5, but shall not share in the Company Profit Sharing
Contributions, the Company Matching Contributions or the forfeiture allocations. Upon
termination of employment, the total amount of the rollover contribution shall be
distributed in accordance with the terms of the Plan.

Upon such a transfer by an Associate who is otherwise eligible to participate in the Plan
but who has not yet completed the participation requirement of Section 2.01, his rollover
amount shall represent his sole interest in the Plan until he becomes a Member.

     11.03 Definitions. The following definitions shall apply for the purposes of this Section 11:

(a) Eligible Rollover Distribution. An Eligible Rollover Distribution is any distribution
of all or any portion of the balance to the credit of the distributee, except that an
Eligible Rollover Distribution does not include: any distribution that is one of a series of
substantially equal periodic payments (not less frequently than annually) made for the life
(or life expectancy) of the distributee or the joint lives (or joint life expectancies) of
the distributee and the distributee’s beneficiary or for a specified period of ten years or
more; any distribution to the extent such distribution is required under Code Section
401(a)(9); and any hardship distribution.

(b) Eligible Retirement Plan. An Eligible Retirement Plan is an individual retirement
account described in Code Section 408(a), an individual retirement annuity described in Code
Section 408(b), an annuity plan described in Code Section 403(a), an annuity contract
described in Code Section 403(b), an eligible plan described in Code Section 457(b)
maintained by a state, a political subdivision of a state, or any instrumentality of a state
or political subdivision of a state, a qualified trust described in Code Section 401(a),
which accepts or will make, as applicable, an Eligible Rollover Distribution, or to the
extent permitted by and in accordance with the applicable rules under Code Section 408A, a
Roth IRA described in Code Section 408A. This definition shall also apply to an Eligible
Rollover Distribution to a Member’s surviving spouse, or a former spouse who is an alternate
payee under a Qualified Domestic Relations Order.

(c) Distributee. A Distributee includes a Member or former Member. In addition, the Member
or former Member’s surviving spouse and the Member’s or former Member’s spouse or former
spouse who is the alternate payee under a Qualified Domestic Relations Order, as defined in
Code Section 414(p), are Distributees with regard to the interest of the spouse or former
spouse. Moreover, for purposes of Section 11.01, a designated non-spouse Beneficiary may be
a Distributee, but only with respect to an Eligible Retirement Plan that is an individual
retirement account described in Code Section 408(a), an individual retirement annuity
described in Code Section 408(b), or to the extent permitted by and in accordance with the
applicable rules under Code Section 408A, a Roth IRA described in Code Section 408A.

(d) Direct Transfer. A Direct Transfer is a payment by the Plan to the Eligible Retirement
Plan specified by the Distributee as described in Code Section 401(a)(31).

40

 

SECTION 12

Loans

     12.01 Availability of Loans. Loans shall be permitted under this Plan to Members who are employed
with the Employer on the date the loan is made (and subject to the terms of this Section 12, to an
interested party as defined in Section 3(14) of ERISA, even if such interested party is no longer
an Associate) pursuant to a uniform and non-discriminatory policy of the Committee. Any such loan
shall be subject to such conditions and limitations as the Committee deems necessary for
administrative convenience and to preserve the tax-qualified status of the Plan. Loans are
available to Associates who have a Member Rollover Contribution Account.

     12.02 Amount of Loans. No loan to any Associate, Member or Beneficiary may be made to the extent
that such loan, when added to the outstanding balance of all other loans to the Associate, Member
or Beneficiary, would exceed the lesser of (a) $50,000 reduced by the excess (if any) of the
highest outstanding balance of loans during the one-year period ending on the day before the loan
is made, over the outstanding balance of loans from the Plan on the date the loan is made, or (b)
one-half the present value of the nonforfeitable accrued benefit of the Member. For the purpose of
the above limitation, all loans from all plans of the Employer and other members of the Group are
aggregated. Furthermore, any loan shall by its terms require that repayment (principal and
interest) be amortized in level payments, not less frequently than quarterly, over a period not
extending beyond four and one-half years from the date of the loan. If such loan is used to
acquire a dwelling unit which within a reasonable time (determined at the time the loan is made)
will be used as the principal residence of the Member, the repayment period shall not extend beyond
twenty-nine and one-half years from the date of the loan. An assignment or pledge of any portion
of the Member’s interest in the Plan and a loan, pledge, or assignment with respect to any
insurance contract purchased under the Plan will be treated as a loan under this paragraph.

     12.03 Terms of Loans.

(a) Loans shall be made available to all Associates, Members and Beneficiaries on a
reasonably equivalent basis.

(b) Loans shall not be made available to Highly Compensated Employees in an amount greater
than the amount made available to other Employees.

(c) Loans must be adequately secured using not more than fifty percent (50%) of the Member’s
vested Account balance, and bear a reasonable interest rate as determined from time to time
by the Committee.

(d) An Associate or Member loan for less than $1,000 is not permitted; provided, however,
that if such Associate or Member also receives a loan from the Puerto Rico Plan, such
minimum amount limitation shall not apply.

(e) In the event of a default, foreclosure on the note and attachment of security will not
occur until a distributable event occurs under the Plan with respect to the Member.

41

 

(f) All loans shall be made pursuant to a written Member loan program incorporated herein by
reference.

(g) Loans are available from the following accounts, and will be withdrawn from the Members
accounts in the following hierarchy:

(a) Member Accounts

(b) Vested Company Accounts

(c) Member Rollover Contribution Accounts

(h) Loans will be taken and repaid from and to the Investment Funds on a pro rata basis,
except in the case the Member is subject to Section 16 of the Securities Exchange Act of
1934 or has been designated as a “Designated Insider,” in which case such Member’s loan will
be taken first from such Member’s Investment Funds other than the Collective Brands Common
Stock Fund.

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SECTION 13

Limit on Contributions to the Plan

     This Section 13 is intended to conform the Plan to the requirements of Code Section 415 and
limits the contributions that can be made by and for an individual under the Plan.

     13.01 Limit on Contributions. Notwithstanding any provision of the Plan to the contrary:

(a) The amounts allocated to a Member during the Limitation Year under the Plan and
allocated to the Member under any other defined contribution plan to which the Employer or
any other member of the Group has contributed shall be proportionately reduced, to the
extent necessary, so that the Annual Addition does not exceed the least of:

	 	(1)	 	$49,000; or

	 	(2)	 	100% of the Member’s remuneration from the Employer or any
member of the Group during the Limitation Year; or

	 	(3)	 	such other limits set forth in Code Section 415.

The amount set forth in subparagraph (1) above shall automatically be adjusted to reflect
adjustments made by applicable law. Remuneration for purposes of this Section and Sections 1.22
and 21.06(g) means remuneration as defined in Treasury Regulation Section 1.415(c)-2(d)(2), plus
amounts that would be reported as wages but for an election under Code Section 125(a), 132(f)(4),
402(e)(3), 402(h)(1)(B), 402(k) or 457(b), but not in excess of $245,000 (as adjusted in accordance
with Section 415(d) of the Code) for any Limitation Year, Plan Year or calendar year, as
applicable. Such amount shall not include any severance pay, whether paid before or after an
Associate’s termination of employment, or any other compensation paid after an individual’s
termination of employment. Notwithstanding the preceding sentence, to the extent that the
following amounts are otherwise included in the definition of remuneration and are paid no later
than the later of the date which is 21/2 months after termination of employment or the end of the
Limitation Year that includes the date of termination of employment, such amounts paid after an
Associate’s termination of employment shall be deemed remuneration: regular pay, including
compensation for services during regular working hours, overtime, shift differential, commissions,
bonuses or other similar payments; payment for unused accrued sick, vacation or other leave, but
only if the Associate would have been able to use the leave if employment had continued; and
payment received pursuant to a nonqualified deferred compensation plan sponsored by the Employer,
but only if the Associate would have received the payment if employment had continued and only to
the extent the payment is includible in the Associate’s gross income. The rules described in this
Section 13.01(a) with respect to post-employment payments shall not apply to payments to an
individual who does not currently perform services for the Employer by reason of qualified military
service, to the extent such payments do not exceed the compensation such individual would have
received from the Employer if he or she had continued to perform services for the Employer.

43

 

(b) For purposes of this Section, Limitation Year means the 12 month period commencing on
January 1 and ending on December 31.

(c) For purposes of this Section, Annual Additions means the sum for the Limitation Year of
Employer contributions, Employee contributions (determined without regard to any rollover
contributions as defined in Code Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3) and
457(e)(16), without regard to catch-up contributions under Code Section 414(v) and without
regard to Employee contributions to a simplified employee pension plan which are excludible
from gross income under Section 408(k)(6) of the Code) and reallocated forfeitures.

     13.02 Adjustment for Excessive Annual Additions.

(a) If, as a result of the allocation of forfeitures, a reasonable error in estimating a
Member’s Pay or other limited facts and circumstances, the Annual Additions under this Plan
would cause the maximum Annual Additions to be exceeded for any Member, the Committee shall
(1) return any Member Contributions credited for the Limitation Year to the extent that the
return would reduce the “excess amount” in the Member’s Accounts, (2) hold any “excess
amount” remaining after the return of any Member Contributions in a “Section 415 suspense
account”, (3) use the “Section 415 suspense account” in the next Limitation Year (and
succeeding Limitation Years if necessary) to reduce either Company Contributions for that
Member if that Member is covered by the Plan as of the end of the Limitation Year or if such
Member is not covered by the Plan at the end of the Limitation Year to reduce Company
Contributions for all Members in the Plan, before any Company Contributions or Member
Contributions which would constitute Annual Additions are made to the Plan for such
Limitation Year, (4) reduce Company Contributions for such Limitation Year by the amount of
the “Section 415 suspense account” allocated and reallocated during such Limitation Year.
For purposes of (3) above, the Plan may not distribute “excess amounts” to Members or former
Members.

(b) For purposes of this Section, “excess amount” for any Member for a Limitation Year shall
mean the excess, if any, of (1) the Annual Additions which would be credited to his account
under the terms of the Plan without regard to the limitations of Code Section 415 over (2)
the maximum Annual Additions determined pursuant to Section 13.01(a).

(c) For purposes of this Section, “Section 415 suspense account” shall mean an unallocated
account equal to the sum of “excess amount” for all Members in the Plan during the
Limitation Year. The “Section 415 suspense account” shall not share in any earnings or
losses of the Trust Fund.

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SECTION 14

Administration of the Plan

     14.01 Plan Administrator. The Company shall be the Plan Administrator of the Plan for purposes of
ERISA and shall be a “named fiduciary” as determined in ERISA Section 402(a)(2).

     14.02 Delegation of Authority.

(a) Authority to administer the Plan has been delegated to the Committee and the
Administrative Subcommittee, if any, in accordance with Sections 1.44 (Total and Permanent
Disability), 4.01 (Member Contributions), 6.01 (Member Accounts), 6.02 (Company Accounts),
6.05 (Member Statements), 8.02 (Authorized Withdrawals), 13.02 (Adjustment for Excessive
Annual Additions), 19.02 (Withdrawal of an Employer) and this Section 14.

(b) Authority with respect to the Investment Funds of the Plan has been delegated to the
Trustee in accordance with Sections 7.01 (Administrative Expenses), 5.01(c) (Investment
Funds), Section 15 (Management of the Trust Fund) and 6.06 (Shares of Collective Brands,
Inc. (Collective Brands Stock) in the Collective Brands Common Stock Fund).

(c) Authority to direct the investment of the Plan’s funds has been delegated to the
Investment Subcommittee, if any, in accordance with Sections 15.03(b), 15.03(c) and 15.03(d)
(Investments and Reinvestments).

(d) The Committee shall also have the authority and discretion to engage an Administrative
Delegate who shall perform, without discretionary authority or control, administrative
functions within the frame work of policies, interpretations, rules practices and procedures
made by the Committee or other Plan Fiduciary. Any action made or taken by the
Administrative Delegate may be appealed by an affected Member to the Committee in accordance
with the claims review procedure in Section 16.05. Any decisions which call for
interpretations of the Plan provisions not previously made by the Committee shall be made
only by the Committee. The Administrative Delegate shall not be considered a fiduciary with
respect to the services it provides.

     14.03 Committee and Subcommittees.

(a) The Committee may appoint two subcommittees (an “Administrative Subcommittee” and an
“Investment Subcommittee”), each Subcommittee to consist of at least three persons, who need
not be members of the Board. The Committee and each Subcommittee, if appointed, shall elect
from its members a Chairman and a Secretary, and may appoint one or more Assistant
Secretaries who may, but need not be, members of the Committee or such Subcommittee, and may
employ such agents, such legal counsel and such clerical, medical, accounting, actuarial and
other services as it may from time to time deem advisable to assist in the administration of
the Plan. The

45

 

Committee and each Subcommittee may, from time to time, appoint agents and delegate to such
agents such duties as it considers appropriate and to the extent that such duties have been
so delegated, the agent shall be exclusively responsible for the proper discharge of such
duties.

(b) The Administrative Subcommittee shall have the general responsibility for the
administration of the Plan and the carrying out of its provisions, and shall have general
powers with respect to Plan administration, including, but not limited to, the powers listed
in this Section 14.03. The Administrative Subcommittee shall have the discretionary
authority to interpret and construe the Plan, the power to establish rules for the
administration of the Plan and the transaction of its business, the power to remedy and
resolve inconsistencies and omissions, and the power to determine all questions which arise
in the administration, interpretation, or application of the Plan, including but not limited
to questions regarding the eligibility, status, Account value and any rights of any Member,
Beneficiary, and any other person hereunder.

(c) The Investment Subcommittee shall have the powers provided for in Section 15.03(b).

(d) The Committee and each Subcommittee shall act by a majority of its members and the
action of such majority expressed by a vote at a meeting, or in writing without a meeting,
shall constitute the action of the Committee or such Subcommittee. All decisions,
determinations, actions or interpretations with respect to the Plan by the Committee or
either Subcommittee and the individual committee or subcommittee members shall be in the
Committee’s, Subcommittee’s or individual member’s sole discretion. The decision,
determination, action or interpretation of the Committee or either Subcommittee and the
respective individual members of the Committee or Subcommittee in respect to all matters
within the scope of its authority shall be conclusive and binding on all persons. No member
of the Committee or either Subcommittee shall have any liability to any person for any
action or omission except each for his own individual willful misconduct. If a Subcommittee
is not appointed, the Committee shall exercise such Subcommittee’s authority and perform its
duties as described herein.

(e) Nothing in this Section 14 or in any other provision of the Plan shall be deemed to
relieve any person who is a fiduciary under the Plan for purposes of ERISA from any
responsibility or liability for any responsibility, obligation or duty which Part 4 of Title
I of ERISA shall impose upon such person with respect to this Plan.

     14.04 Accounts and Reports. The Committee shall maintain or cause to be maintained accounts
reflecting the fiscal transactions of the Plan and shall keep in convenient form such data as may
be necessary for the administration of the Plan. The Committee shall prepare annually a report
showing in reasonable detail the assets and liabilities of the Plan and setting forth a brief
account of the operation of the Plan for the preceding year.

46

 

     14.05 Non-Discrimination. Neither the Committee nor either Subcommittee shall exercise its
discretion in such a way as to result in discrimination in favor of officers, shareholders or
Highly Compensated Employees.

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SECTION 15

Management of the Trust Fund

     15.01 Use of the Trust Fund. All assets of the Plan shall be held as a Trust Fund in one or more
trusts and shall be used to provide the benefits of this Plan. No part of the corpus or income
shall be used for, or diverted to, purposes other than for the exclusive benefit of Members and
their Beneficiaries under this Plan and administrative expenses of this Plan.

     15.02 Trustees. The Trust Fund may, at the direction of the Company, be divided into one or more
separate trusts, each of which may have a separate Trustee appointed from time to time by the
Company and subject to removal by the Company. The Trustee or Trustees of each trust shall have
complete authority and discretion with respect to the investment and reinvestment of the assets of
each trust, subject, however, to (i) the provisions in the Trust Agreements between the Trustee or
Trustees and the Company, and (ii) the provisions of this Plan. Any or all of such separate trusts
shall be referred to collectively from time to time as the Trust Fund. Any division of the Trust
Fund into one or more separate trusts shall be at the direction of the Company.

     15.03 Investments and Reinvestments. The investment and reinvestment of the assets of the Trust
Fund shall be in accordance with the following:

(a) The Company shall have the authority to instruct the Trustee or Trustees to accept and
follow the instructions of any designated investment manager (within the meaning of ERISA
Section 3(38)) with respect to the investment and reinvestment of the assets constituting a
money market or stable value fund, a fixed income fund, a common stock fund, or any other
Investment Funds the Company may designate.

(b) The Investment Subcommittee shall have the powers, with respect to investment and
reinvestment of the assets constituting the Investment Funds, to promulgate limitations,
restrictions, rules or guidelines with respect to the investment policies and classes of
investments in which the assets of the Investment Funds may be invested or reinvested by the
Trustee or Trustees, including any such investments made pursuant to the instructions of any
investment manager. In the event an investment manager designated pursuant to Section
15.03(a) resigns or otherwise is unable to act, the Investment Subcommittee shall have such
power and authority as otherwise would be exercisable by such Investment Manager.

(c) In the event that the assets of the Trust Fund shall be divided into one or more
separate trusts pursuant to the authority provided for in Section 15.02, then the powers of
the Investment Subcommittee as provided for in Section 15.03(b) may be exercised with
respect to one or more of such trusts within the discretion of the Investment Subcommittee.

(d) The powers of the Investment Subcommittee as provided in Section 15.03(b) may be
exercised at any time or from time to time by the Investment Subcommittee within the
discretion of the Investment Subcommittee and shall be pursuant to a written

48

 

agreement between the Investment Subcommittee and the Trustee or Trustees or, if an
investment manager has been appointed, between the Investment Subcommittee and the
investment manager.

(e) The Trust Agreement between the Company and the Trustee or Trustees implementing the
Plan shall contain provisions effectuating the provisions of this Section 15 of the Plan.

49

 

SECTION 16

Certain Rights and Obligations of Employers and Members

     16.01 Disclaimer of Employer Liability.

(a) No liability shall attach to any Employer with respect to a benefit or claim hereunder
and Members and their Beneficiaries, and all persons claiming under or through them, shall
have recourse only to the Trust Fund for payment of any benefit hereunder.

(b) The rights of the Members, their Beneficiaries and other persons are hereby expressly
limited and shall be only in accordance with the provisions of the Plan. Nothing contained
herein shall be deemed to give a Member any interest in any specific property of the Trust
or any interest other than a right to receive payments pursuant to the provisions of the
Plan.

     16.02 Employer-Associate Relationship. Neither the establishment of this Plan nor its communication
through a Summary Plan Description (or otherwise) shall be construed as conferring any legal or
other rights upon any Associate or any other person to continue in employment or as interfering
with or affecting in any manner the right of an Employer to discharge any Associate or otherwise
act with relation to him. Each Employer may take any action (including discharge) with respect to
any Associate or other person and may treat him without regard to the effect which such action or
treatment might have upon him as a Member of this Plan.

     16.03 Binding Effect. Each Member, by executing an enrollment form, beneficiary designation and
otherwise agreeing to participate in the Plan agrees for himself, his beneficiary(ies), heirs,
successors and assigns to be bound by all of the provisions of the Plan.

     16.04 Corporate Action. With respect to any action permitted or required by the Plan, the Company
may act through its appropriate officers.

     16.05 Claim and Appeal Procedure. A Member or Beneficiary or other person who believes that he is
being denied a benefit to which he is entitled (hereinafter referred to as “Claimant”) may file a
written request for such benefit with the Committee, setting forth his or her claim. The request
must be addressed to: The Committee, Collective Brands 401(k) Profit Sharing Plan, 3231 SE Sixth
Avenue, Topeka, KS 66607. Notwithstanding anything in the Plan to the contrary, a claim must be
filed within one year from the date such claim first accrues or the Claimant will be forever barred
from pursuing such claim. A claim by a Claimant shall be deemed to have accrued on the earlier of
(i) the date the Claimant’s benefits commence or (ii) the date the Claimant became aware, or should
have become aware, that his or her position regarding his or her entitlement to benefits is
different from the Plan’s or the Company’s position regarding the Claimant’s entitlement to
benefits.

(a) Claim Decision. Upon receipt of a claim, the Committee shall advise the Claimant that a
reply will be forthcoming within 90 days and shall in fact deliver such

50

 

reply in writing within such period. The Committee may, however, extend the reply period
for an additional 90 days for reasonable cause. If the reply period will be extended, the
Committee shall advise the Claimant in writing during the initial 90-day period indicating
the special circumstances requiring an extension and the date by which the benefit
determination is expected. If the claim is denied in whole or in part, the Committee will
render a written opinion using language calculated to be understood by the Claimant setting
forth:

(i) the specific reason or reasons for the denial;

(ii) specific references to pertinent Plan provisions on which the denial is based;

(iii) a description of any additional material or information necessary for the
Claimant to perfect the claim and an explanation why such material or such
information is necessary;

(iv) appropriate information as to the steps to be taken if the Claimant wishes to
submit the claim for review, including a statement of the Claimant’s right to bring
a civil action under Section 502(a) of ERISA following an adverse benefit
determination on review; and

(v) the time limits for requesting a review of the denial and for the actual review
of the denial.

(b) Request For Review. Within 60 days after the receipt by the Claimant of the written
opinion described above, the Claimant may request in writing that the committee, which shall
be comprised of up to three individuals (which may include members of the Committee)
appointed by the Company or by the Committee, review the determination of the Committee.
Such request must be addressed to: The Committee, Collective Brands 401(k) Profit Sharing
Plan, 3231 SE Sixth Avenue, Topeka, KS 66607. The Claimant or his or her duly authorized
representative may submit written comments, documents, records or other information relating
to the denied claim, which shall be considered in the review under this subsection without
regard to whether such information was submitted or considered in the initial benefit
determination.

     The Claimant or his or her duly authorized representative shall be provided, upon
request and free of charge, reasonable access to, and copies of, all documents, records and
other information which (i) was relied upon by the Committee in making its initial claims
decision, (ii) was submitted, considered or generated in the course of making the initial
claims decision, without regard to whether such instrument was actually relied upon in
making the decision or (iii) demonstrates compliance by the Committee with its
administrative processes and safeguards designed to ensure and to verify that benefit claims
determinations are made in accordance with governing Plan documents and that, where
appropriate, the Plan provisions have been applied consistently with respect to similarly
situated claimants. If the Claimant does not request a review of the

51

 

Committee’s determination by the committee within such 60-day period, he shall be
barred and estopped from challenging the Committee’s determination.

(c) Review Of Decision. Within a reasonable period of time, ordinarily not later than 60
days, after the committee’s receipt of a request for review, it will review the prior
determination. If special circumstances require that the sixty (60) day time period be
extended, the committee will so notify the Claimant within the initial sixty (60)-day period
indicating the special circumstances requiring an extension and the date by which the
committee expects to render its decision on review, which shall be as soon as possible but
not later than one hundred twenty (120) days after receipt of the request for review. In
the event that the committee extends the determination period on review due to a Claimant’s
failure to submit information necessary to decide a claim, the period for making the benefit
determination on review shall not take into account the period beginning on the date on
which notification of extension is sent to the Claimant and ending on the date on which the
Claimant responds to the request for additional information.

     The committee has discretionary authority to determine a Claimant’s eligibility for
benefits and to interpret the terms of the Plan. Benefits under the Plan will be paid only
if the committee decides in its discretion that the Claimant is entitled to such benefits.
The decision of the committee shall be final and non-reviewable, unless found to be
arbitrary and capricious by a court of competent review. Such decision will be binding upon
the Company and the Claimant.

     If the committee makes an adverse benefit determination on review, the committee will
render a written opinion, using language calculated to be understood by the Claimant,
setting forth:

(i) the specific reason or reasons for the denial;

(ii) the specific references to pertinent Plan provisions on which the denial is
based;

(iii) a statement that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information which (A) was relied upon by the committee in making its decision, (B)
was submitted, considered or generated in the course of the committee making its
decision, without regard to whether such instrument was actually relied upon by the
committee in making its decision or (C) demonstrates compliance by the committee
with its administrative processes and safeguards designed to ensure and to verify
that benefit claims determinations are made in accordance with governing Plan
documents, and that, where appropriate, the Plan provisions have been applied
consistently with respect to similarly situated claimants; and

(iv) a statement of the Claimant’s right to bring a civil action under Section
502(a) of ERISA following the adverse benefit determination on such review.

52

 

     16.06 Venue for Litigation. In light of the Plan Administrator’s substantial contacts with the
State of Kansas, the fact that the Plan Administrator resides in Kansas and the Company is
headquartered in Topeka, Kansas, and the Company’s establishment of, and the Plan Administrator’s
maintenance of, this Plan in Kansas, any cause of action brought by a Claimant, Associate, Member,
former Associate, former Member or any beneficiary of such an individual involving benefits under
the Plan shall be filed and conducted exclusively in the federal courts in the District of Kansas.

     No action at law or in equity shall be brought to recover under the Plan prior to the
expiration of 60 days after receipt by the Claimant of the written decision regarding the
Claimant’s request for review under the claims procedure, nor shall such action be brought at all
unless within three years from receipt by the Claimant of such written decision by the final claims
reviewer under the claims procedure.

     16.07 Acquisition Of Assets. If the Employer acquires the assets (through purchase, merger or
otherwise) of any other entity and hires persons who had been employed by such entity, the division
or other subgroup in which such persons are employed shall be excluded from the groups included in
the definition of “Associate” unless the Company communicates to such division or subgroup that
such division or subgroup is accruing benefits under the Plan.

53

 

SECTION 17

Non-Alienation of Benefits

     17.01 Provisions with Respect to Assignment and Levy. No benefit payable under this Plan shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
levy or charge, and any attempt so to anticipate, alienate, sell, transfer, assign, encumber, levy
upon or charge the same shall be void; nor shall any such benefit be in any manner liable for or
subject to the debts, contracts, liabilities, engagements or torts of the person entitled to such
benefit, except as specifically provided herein. Notwithstanding the foregoing, the creation,
assignment, or recognition of a right to any benefit payable to an alternate payee with respect to
a Qualified Domestic Relations Order shall not be treated as an assignment or alienation prohibited
by this Section. Any other provision of the Plan to the contrary notwithstanding, if a Qualified
Domestic Relations order requires the distribution of all or part of a Member’s benefits under the
Plan, the establishment or acknowledgment of the alternate payee’s right to benefits under the Plan
in accordance with the terms of such Qualified Domestic Relations Order shall in all events be
deemed to be consistent with the terms of the Plan.

     Notwithstanding the above a Member’s benefit will be offset against any amount he or she is
ordered or required to pay to the Plan pursuant to an order or requirement which arises under a
judgment of conviction for a crime involving the Plan, under a civil judgment entered by a court in
an action involving a fiduciary breach, or pursuant to a settlement agreement between the Member
and the Department of Labor or the Pension Benefit Guaranty Corporation. Any such offset shall be
made pursuant to Section 206(d) of ERISA.

     17.02 Alternate Application. If a Member or Beneficiary under this Plan becomes bankrupt or
attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit
under this Plan, except as specifically provided herein, or if any benefit shall, in the discretion
of the Committee, cease, and in that event the Committee may hold or apply the same or any part
thereof to or for the benefit of such Member or Beneficiary, his spouse, children or other
dependents, or any of them, or in such other manner and in such proportion as the Committee may
deem proper.

54

 

SECTION 18

Amendments

     18.01 Company’s Rights. The Company reserves the right at any time and from time to time in its
sole discretion to alter, amend, or modify, in whole or in part, any or all of the provisions of
this Plan, provided, however, no such alteration, amendment or modification shall be made which
shall decrease the accrued benefit of any Member. Anything in this Plan to the contrary
notwithstanding, the Company in its sole discretion may make any modifications or amendments,
additions or deletions in or to this Plan as to benefits or otherwise and retroactively if
necessary, and regardless of the effect thereof on the rights of any particular Member or
Beneficiary, which it deems appropriate and/or necessary in order to comply with or satisfy any
conditions of any law or regulation relating to the qualification of this Plan and the trust or
trusts created pursuant hereto and to keep this Plan and said trusts qualified under Code Section
401(a) and to have the trust or trusts declared exempt from taxation under Code Section 501(a).

     18.02 Procedure to Amend. This Plan may be amended by action of the Company’s Board of Directors
and evidenced by a written amendment signed by the Company’s Secretary or by any other person so
authorized by or pursuant to authority of the Board of Directors.

     18.03 Provision Against Diversion. No part of the assets of the Trust Fund shall, by reason of any
modification or amendment or otherwise, be used for, or diverted to, purposes other than for the
exclusive benefit of Members and their Beneficiaries under this Plan and administrative expenses of
this Plan.

55

 

SECTION 19

Termination

     19.01 Right to Terminate. The Company reserves the right to terminate this Plan, in whole or in
part, at any time and, if this Plan shall be terminated either in its entirety or with respect to
any Employer included hereunder, the provisions of Section 19.03 shall apply and the Accounts of
affected Members shall become (or remain) fully vested and nonforfeitable.

     19.02 Withdrawal of an Employer. If an Employer shall cease to be a participating Employer in this
Plan, the Trust Fund and the Accounts of the Members of the withdrawing Employer and their
Beneficiaries shall be revalued as if such withdrawal date were a Valuation Date. The Committee
shall then direct the Trustee either to distribute the Accounts of the Members of the withdrawing
Employer as of the date of such withdrawal on the same basis as if the Plan had been terminated
pursuant to Section 19.03 or to deposit in a trust established by the withdrawing Employer pursuant
to a plan substantially similar to this Plan assets equal in value to the assets of the Trust Fund
allocable to the Accounts of the Members of the withdrawing Employer.

     19.03 Distribution in Event of Termination of Trust. If this Plan is terminated at any time
including a partial termination as defined in Code Section 411(d)(3), or if contributions are
completely discontinued and the Company determines that the trust shall be terminated, in whole or
in part, the Trust Fund and all Accounts shall be revalued as if the termination date were a
Valuation Date and the affected Members’ Accounts shall be distributed in accordance with Section
10.

     19.04 Administration in Event of Continuance of Trust. If this Plan shall be terminated in whole or
in part or contributions completely discontinued but the Company determines that the trust shall be
continued pursuant to the terms of the Trust Agreement, the trust shall continue to be administered
as though the Plan were otherwise in effect. Upon the subsequent termination of the trust, in
whole or in part, the provisions of Section 19.03 shall apply.

     19.05 Merger, Consolidation or Transfer. In the case of any merger or consolidation with, or
transfer of Plan assets or liabilities to, any other plan, each Member shall be entitled to receive
a benefit immediately after the merger, consolidation or transfer (if the transferee plan then
terminated) which is equal to or greater than the benefit he would have been entitled to receive
immediately before the merger, consolidation or transfer (if the Plan had then terminated).

56

 

SECTION 20

Construction

     20.01 Applicable Law. The provisions of this Plan except as otherwise governed by ERISA shall be
construed, regulated, administered and enforced according to the laws of the State of Kansas and,
whenever possible, to be in conformity with the applicable requirements of ERISA and the Internal
Revenue Code.

     20.02 Gender and Number. Wherever applicable, the masculine pronoun as used herein shall include
the feminine pronoun and the singular pronoun shall include the plural.

57

 

SECTION 21

Top-Heavy Requirements

     21.01 Generally. For any Plan Year in which the Plan is a Top-Heavy Plan, the provisions of Section
21.02 shall automatically take effect in accordance with Code Section 416.

     21.02 Minimum Allocations.

(a) Minimum Employer Allocations and allocations of Plan forfeitures for a Member who is not
a Key Employee shall be required under the Plan for the Plan Year as set forth in Section
21.02(b) and (c).

(b) The amount of the minimum allocation shall be the lesser of the following, percentages
of Top-Heavy Compensation: (i) three percent (3%) or, (ii) the highest percentage at which
such allocations are made under the Plan for the Plan Year on behalf of a Key Employee. For
purposes of this paragraph (b), all defined contribution plans required to be included in an
Aggregation Group shall be treated as one plan. This paragraph (b) shall not apply if the
Plan is required to be included in an Aggregation Group and the Plan enables a defined
benefit plan required to be included in the Aggregation Group to meet the requirement of
Code Sections 401(a)(4) or 410. For purposes of this paragraph (b), the calculation of the
percentage at which allocations are made for a Key Employee shall be based only on his
Top-Heavy Compensation not in excess of $225,000, such amount to be adjusted periodically
for increases in the cost of living in accordance with Code Section 401(a)(17). The minimum
allocation described in this paragraph (b) shall be in addition to (and shall not be reduced
by) any Member Contributions under Section 4 (whether Before-Tax or After-Tax).

(c) For purposes of this Section 21.02, the term “Member” shall be deemed to refer to all
Members who have not separated from service at the end of the Plan Year including, without
limitation, individuals who declined to make contributions to the Plan.

     12.03 Determination of Top Heaviness.

(a) The determination of whether a plan is Top-Heavy shall be made in accordance with
paragraphs (b) through (d) of this Section 21.03.

(b) If the Plan is not required to be included in an Aggregated Group with other plans, then
it shall be Top-Heavy only if when considered by itself, it is a Top-Heavy Plan and it is
not included in a permissive Aggregation Group that is not a Top-Heavy Group.

(c) If the Plan is required to be included in an Aggregation Group with other plans, it
shall be Top-Heavy only if the Aggregation Group, including any permissively aggregated
plans, is Top-Heavy.

(d) If a plan is not a Top-Heavy Plan and is not required to be included in an Aggregation
Group, then it shall not be Top-Heavy even if it is permissively aggregated in an
Aggregation Group which is a Top-Heavy Group.

58

 

     21.04 Calculation of Top-Heavy Ratios. A plan shall be Top-Heavy and an Aggregation Group shall be
a Top-Heavy Group with respect to any Plan Year as of the Determination Date if the sum as of the
Determination Date of the Cumulative Accrued Benefits and the Cumulative Accounts of Employees who
are Key Employees for the Plan Year exceeds 60 percent (60%) of a similar sum determined for all
Employees, excluding former Key Employees.

     21.05 Cumulative Accounts and Cumulative Accrued Benefits.

(a) The Cumulative Accounts and Cumulative Accrued Benefits for any Employee shall be
determined in accordance with paragraphs (b) through (e) of this Section 21.05.

(b) Cumulative Account shall mean the sum of the amount of an Employee’s accounts under a
defined contribution plan (for an unaggregated plan) or under all defined contribution plans
included in an Aggregation Group (for aggregated plans) determined as of the most recent
plan Valuation Date within a 12-month period ending on the Determination Date, increased by
any allocations due after such Valuation Date and before the Determination Date.

(c) Cumulative Accrued Benefit means the sum of the present value of an Employee’s accrued
benefits under a defined benefit plan (for an unaggregated plan) or under all defined
benefit plans included in an Aggregation Group (for aggregated plans), determined under the
actuarial assumptions set forth in such plan or plans, as of the most recent plan Valuation
Date within a 12-month period ending on the Determination Date as if the Employee
voluntarily terminated service as of such Valuation Date.

(d) Accounts and benefits shall be calculated to include all amounts attributable to both
Matching Allocations and Employee contributions but excluding amounts attributable to
voluntary deductible Employee contributions.

(e) Accounts and benefits shall be increased by the aggregate distributions during the
one-year period ending on the Determination Date made with respect to an Employee under the
plan or plans as the case may be or under a terminated plan which, if it had not been
terminated, would have been required to be included in the Aggregation Group. In the case
of a distribution made for a reason other than severance from employment, death, or
disability, this provision shall be applied by substituting “five-year period” for “one-year
period.

(f) Rollovers and direct plan-to-plan transfers shall be handled as follows:

(i) If the transfer is initiated by the Employee and made from a plan maintained by
one Employer to a plan maintained by another Employer, the transferring plan
continues to count the amount transferred under the rules for counting
distributions. The receiving plan does not count the amount if accepted after
December 31, 1983, but does count it if accepted prior to December 31, 1983.

59

 

(ii) If the transfer is not initiated by the Employee or is made between plans
maintained by the Employers, the transferring plan shall no longer count the amount
transferred and the receiving plan shall count the amount transferred.

(iii) For purposes of this subsection (f), all Employers aggregated under the rules
of Code Sections 414(b), (c) and (m) shall be considered a single employer.

(g) The accrued benefits and accounts of any individual who has not performed services for
the Employer during the one-year period ending on the Determination Date shall not be taken
into account.

     21.06
Other Definitions.

(a) Solely for purposes of this Section 21, the definitions in paragraphs (b) through (g) of
this Section 21.06 shall apply, to be interpreted in accordance with the provisions of Code
Section 416 and the regulations thereunder.

(b) Aggregation Group means a plan or group of plans which included all plans maintained by
the Employer in which a Key Employee is a participant or which enables any plan in which a
Key Employee is a participant to meet the requirements of Code Section 401(a)(4) or Code
Section 410, as well as all other plans selected by the Company for permissive aggregation,
the inclusion of which would not prevent the group of plans from continuing to meet the
requirements of such Code sections.

(c) Determination Date means, with respect to any Plan Year, the last day of the preceding
Plan Year.

(d) Employee means any person employed by an Employer and shall also include any Beneficiary
of such persons, provided that the requirements of Section 21.02 shall not apply to any
person included in a unit of Employees covered by an agreement which the Secretary of Labor
finds to be a collective bargaining agreement between Employee representatives and one or
more Employers if there is evidence that retirement benefits were the subject of good faith
bargaining between such Employee representatives and such Employer or Employers.

(e) Employer means any corporation which is a member of the Group,

(f) Key Employee means any Employee or former Employee (including any deceased Employee) who
is, at any time during the Plan Year which includes the Determination Date, any one or more
of the following: (1) an officer of an Employer who has annual Pay of more $160,000 (as
adjusted under Code Section 416(i)(1)); (2) any person owning (or considered as owning
within the meaning of the Code Section 318) more than five percent of the outstanding stock
of an Employer or stock possessing more than five percent of the total combined voting power
of such stock; (3) a person who would be described in subsection (2) above if “one percent”
were substituted for “five percent” each place it appears in subsection (2) above, and who
has annual Pay of more than $150,000 (for purposes of determining ownership under this
subsection, Code

60

 

Section 318(a)(2)(C) shall be applied by substituting “five percent” for “50 percent” and
the rules of subsections (b), (c) and (m) of Code Section 414 shall not apply).

(g) Top-Heavy Compensation means the remuneration as defined in Section 13.01(a). Such
compensation shall be considered only if earned while a Member.

     IN WITNESS WHEREOF, the Company has caused this amended Plan to be executed by a duly
authorized officer this 10th day of August, 2011.

	 	 	 	 	 
	 	COLLECTIVE BRANDS, INC.

 	 
	 	By:  	/s/ Betty J. Click
 	 
	 	 	 	 
	 	 	 	 
	 

61exv4w2

Exhibit
4.2

COLLECTIVE
BRANDS PERFORMANCE + LIFESTYLE GROUP

EMPLOYEE SAVINGS & INVESTMENT PLAN

Amended and Restated

Effective as of October 1, 2011

 

 

RESTATEMENT OF THE

COLLECTIVE BRANDS PERFORMANCE + LIFESTYLE GROUP

EMPLOYEE SAVINGS & INVESTMENT PLAN

          WHEREAS, The Stride Rite Corporation (“Plan Sponsor”) previously adopted the Collective Brands
Performance + Lifestyle Group Employee Savings & Investment Plan (“Plan”); and

          WHEREAS, the Plan Sponsor retained the right to amend the Plan pursuant to Section 8.01
thereof; and

          WHEREAS, the Plan Sponsor desires to amend the Plan to add a company stock fund as an
investment option, to permit the Plan Sponsor to limit the future tax deferred contributions a
participant may invest in the company stock fund, and to clarify certain other provisions,
effective as of the dates indicated herein; and

          WHEREAS, the Plan Sponsor desires to amend the Plan in its entirety effective October 1, 2011;

          NOW, THEREFORE, effective October 1, 2011, except as otherwise provided, the Plan is amended
in its entirety to read as follows:

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I — THE PLAN
	 	 	1	 
	1.01. Creation of the Plan
	 	 	1	 
	1.02. Interpretation of Plan and Trust
	 	 	1	 
	1.03. Purposes of the Plan
	 	 	1	 
	1.04. Effective Dates
	 	 	2	 
	1.05. Transfers to Savings Plan II
	 	 	2	 
	1.06. Transfers from Savings Plan II
	 	 	2	 
	 
	ARTICLE II — DEFINITIONS
	 	 	4	 
	2.01. “Account”
	 	 	4	 
	2.02. “Affiliated Company”
	 	 	4	 
	2.03. “After-Tax Contributions”
	 	 	4	 
	2.04. “Agreement”
	 	 	4	 
	2.05. “Anniversary Date”
	 	 	4	 
	2.06. “Beneficiary”
	 	 	4	 
	2.07. “Board of Directors”
	 	 	5	 
	2.08. “Committee”
	 	 	5	 
	2.09. “Company”
	 	 	5	 
	2.10. “Compensation”
	 	 	5	 
	2.11. “Eligible Employee”
	 	 	6	 
	2.12. “Employee”
	 	 	6	 
	2.13. “Entry Date”
	 	 	7	 
	2.14. “Highly Compensated Employee”
	 	 	7	 
	2.15. “Hour of Service”
	 	 	7	 
	2.16. “Investment Fund” or “Investment Funds”
	 	 	8	 
	2.17. “Matching Contributions”
	 	 	8	 
	2.18. “Maternity/Paternity Leave of Absence”
	 	 	8	 
	2.19. “Normal Retirement Age”
	 	 	9	 
	2.20. “One-Year Break in Service”
	 	 	9	 
	2.21. “Participant”
	 	 	9	 
	2.22. “Plan”
	 	 	9	 
	2.23. “Plan Sponsor”
	 	 	9	 
	2.24. “Plan Year”
	 	 	9	 
	2.25. “Salary Reduction/Deduction Agreement”
	 	 	9	 
	2.26. “Tax Deferred Contributions”
	 	 	9	 
	2.27. “Total Compensation”
	 	 	10	 
	2.28. “Trust”
	 	 	10	 
	2.29. “Trust Agreement”
	 	 	10	 
	2.30. “Trustee”
	 	 	10	 
	2.31. “Valuation Date”
	 	 	10	 
	2.32. “Year of Eligibility Service”
	 	 	11	 
	2.33. “Year of Vesting Service”
	 	 	11	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE III — PARTICIPATION
	 	 	12	 
	3.01. Eligibility for Participation
	 	 	12	 
	3.02. Determination of Eligibility by Committee
	 	 	12	 
	3.03. Duration of Eligibility
	 	 	13	 
	3.04. Salary Reduction/Deduction Agreement
	 	 	13	 
	3.05. Military and Unpaid Leaves of Absence
	 	 	15	 
	 
	ARTICLE IV — CONTRIBUTIONS UNDER THE PLAN
	 	 	17	 
	4.01. Tax Deferred Contributions
	 	 	17	 
	4.02. After-Tax Contributions
	 	 	17	 
	4.03. Matching Contributions
	 	 	17	 
	4.04. Payment of Contributions
	 	 	17	 
	4.05. Reversion of Certain Contributions Made by the Company
	 	 	18	 
	4.06. Rollover Contributions
	 	 	18	 
	4.07. Catch-Up Contributions
	 	 	19	 
	 
	ARTICLE V — PARTICIPANT’S ACCOUNTS; ALLOCATION OF ASSETS AND CONTRIBUTIONS; PARTICIPANTS’ INVESTMENT ELECTIONS
	 	 	21	 
	5.01. Participants’ Accounts
	 	 	21	 
	5.02. Allocation of Tax Deferred Contributions
	 	 	21	 
	5.03. Allocation of After-Tax Contributions
	 	 	22	 
	5.04. Allocation of Matching Contributions
	 	 	22	 
	5.05. Allocation of Rollover Contributions
	 	 	22	 
	5.06. Valuation of Assets
	 	 	23	 
	5.07. Distributions and Forfeitures
	 	 	23	 
	5.08. Election of Investments
	 	 	24	 
	5.09. Shares of Collective Brands, Inc. (“Collective Brands Stock”) in the Collective Brands Common Stock Fund
	 	 	25	 
	 
	ARTICLE VI — LIMITATIONS ON CONTRIBUTIONS AND ALLOCATIONS
	 	 	28	 
	6.01. Contributions to be Deductible
	 	 	28	 
	6.02. Limitation on Tax Deferred Contributions
	 	 	28	 
	6.03. Return of Excess Deferrals
	 	 	32	 
	6.04. Limitation on Matching and After-Tax Contributions
	 	 	32	 
	6.05. Limitations on Allocations
	 	 	37	 
	 
	ARTICLE VII — PAYMENTS TO OR FOR THE ACCOUNT OF PARTICIPANTS OR TERMINATED PARTICIPANTS
	 	 	40	 
	7.01. Restrictions on Payments and Distributions
	 	 	40	 
	7.02. Retirement from Employment
	 	 	40	 
	7.03. Disability Retirement
	 	 	40	 
	7.04. Death Benefits
	 	 	41	 
	7.05. Termination of Employment Prior to Retirement or Death
	 	 	43	 
	7.06. Reemployment
	 	 	44	 
	7.07. Manner and Timing of Distributions
	 	 	44	 
	7.08. Withdrawals During Employment
	 	 	49	 
	7.09. Loans to Participants
	 	 	53	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	7.10. Payments to Incompetents
	 	 	55	 
	7.11. Discharge of Obligation to Make Payments
	 	 	56	 
	7.12. Direct Rollovers
	 	 	56	 
	7.13. Notification Of Eligibility To Receive And Consent To Vested Benefits
	 	 	58	 
	7.14. Written Explanation Of Rollover Treatment
	 	 	59	 
	 
	ARTICLE VIII — AMENDMENT AND TERMINATION
	 	 	60	 
	8.01. Right to Amend or Terminate
	 	 	60	 
	8.02. Amendment for Tax Exemption
	 	 	60	 
	8.03. Liquidation of Trust in Event of Termination
	 	 	60	 
	8.04. Termination of Plan and Trust
	 	 	61	 
	 
	ARTICLE IX — ADMINISTRATION OF THE PLAN
	 	 	62	 
	9.01. Named Fiduciaries
	 	 	62	 
	9.02. Appointment of Committee
	 	 	63	 
	9.03. Powers of Committee
	 	 	63	 
	9.04. Action by Committee
	 	 	64	 
	9.05. Discretionary Action
	 	 	64	 
	9.06. Evidence on Which Committee May Act
	 	 	65	 
	9.07. Employment of Agents
	 	 	65	 
	9.08. Compensation and Expense of Committee
	 	 	66	 
	9.09. Indemnification of Committee Members
	 	 	66	 
	9.10. Review of Domestic Relations Orders
	 	 	66	 
	 
	ARTICLE X — TRUST FUND
	 	 	68	 
	10.01. Trust Agreement
	 	 	68	 
	10.02. Combined Trust
	 	 	68	 
	10.03. Transfer from Other Plans
	 	 	68	 
	 
	ARTICLE XI — THE COMPANY
	 	 	69	 
	11.01. No Contract of Employment
	 	 	69	 
	11.02. No Contract to Maintain Plan
	 	 	69	 
	11.03. Liability of the Company
	 	 	69	 
	11.04. Action by the Company
	 	 	69	 
	11.05. Successor to Business of the Company
	 	 	70	 
	11.06. Dissolution of the Company
	 	 	70	 
	 
	ARTICLE XII — ADDITIONAL PARTICIPATING COMPANIES
	 	 	71	 
	12.01. Participation
	 	 	71	 
	12.02. Effective Date
	 	 	71	 
	12.03. Administration
	 	 	71	 
	12.04. Termination
	 	 	71	 
	 
	ARTICLE XIII — TOP-HEAVY PROVISIONS
	 	 	72	 
	13.01. General Rule
	 	 	72	 
	13.02. Minimum Contribution Provisions
	 	 	72	 
	13.03. Top-Heavy Plan Definition
	 	 	73	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	13.04. Former Key Employee
	 	 	75	 
	13.05. Key Employee
	 	 	76	 
	13.06. Non-Key Employee
	 	 	76	 
	13.07. Termination of Top-Heavy Status
	 	 	76	 
	 
	ARTICLE XIV — MISCELLANEOUS
	 	 	77	 
	14.01. Spendthrift Provision
	 	 	77	 
	14.02. Appointment of Person to Receive Payment
	 	 	77	 
	14.03. Construction
	 	 	78	 
	14.04. Impossibility of Performance
	 	 	78	 
	14.05. Definition of Words
	 	 	78	 
	14.06. Titles
	 	 	78	 
	14.07. Merger or Consolidation
	 	 	78	 
	14.08. Claims Procedure
	 	 	79	 
	14.09. Special Disability Provisions
	 	 	83	 
	14.10. Special Provisions for Certain Leased Employees
	 	 	85	 
	14.11. Execution of Plan
	 	 	86	 
	14.12. USERRA
	 	 	86	 
	14.13. Death During Qualified Military Service
	 	 	86	 
	14.14. Venue for Litigation
	 	 	86	 
	14.15. Acquisition Of Assets
	 	 	87	 
	14.16. Contribution On Behalf Of Affiliated Company
	 	 	87	 
	14.17. Separability Of Provisions
	 	 	87	 
	14.18. Service Of Process
	 	 	87	 
	 
	ARTICLE XV — MINIMUM DISTRIBUTION REQUIREMENTS
	 	 	88	 
	15.01. General Rules
	 	 	88	 
	15.02. Time and Manner of Distribution
	 	 	89	 
	15.03. Required Minimum Distributions During Participant’s Lifetime
	 	 	90	 
	15.04. Required Minimum Distributions After Participant’s Death
	 	 	91	 
	15.05. Definitions
	 	 	93	 
	15.06. 2009 RMDs
	 	 	94	 
	 
	APPENDIX A
	 	 	96	 
	 
	EXHIBIT A
	 	 	97	 

iv

 

COLLECTIVE BRANDS PERFORMANCE + LIFESTYLE GROUP

EMPLOYEE SAVINGS & INVESTMENT PLAN

Amended and Restated as of October 1, 2011

ARTICLE I — THE PLAN

     1.01. Creation of the Plan. There has been hereby established a profit-sharing plan
known as the “COLLECTIVE BRANDS PERFORMANCE + LIFESTYLE GROUP EMPLOYEE SAVINGS & INVESTMENT PLAN”
(the “Plan”).

     The Plan is amended and restated to add a company stock fund as an investment option, to
permit the Company to limit the future tax deferred contributions a participant may invest in the
company stock fund, and to clarify certain other provisions.

     1.02. Interpretation of Plan and Trust. The Plan and Trust are established for the
exclusive benefit of the Eligible Employees and their Beneficiaries. So far as possible, this
Agreement shall be interpreted in a manner consistent with this intent and with the intent of the
Company that the Trust established hereunder shall continue to be a profit sharing plan and to
satisfy those provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”) and of
the Internal Revenue Code of 1986 (the “Code”) relating to exempt employees’ trusts, as either of
them may from time to time be amended. Except as otherwise provided in Section 4.05 hereof, under
no circumstances shall any property, whether corpus or income of the Trust hereunder, or any funds
contributed to the Trust, ever revert to or be used or enjoyed by the Company or be used for any
purpose other than for the exclusive benefit of the Eligible Employees or their Beneficiaries.

     1.03. Purposes of the Plan. The primary purpose of the Plan is to provide Eligible
Employees with an opportunity to accumulate savings by means of salary adjustment arrangements and
to assist them in obtaining additional security for their retirement. In order to

 

 

encourage Eligible Employees to save through salary adjustment, the Company will make a
contribution to the Plan which is designed primarily to provide additional funds to be available to
the Employee upon retirement, death, or total and permanent disability. Although the primary
purpose of the Plan is to provide a means for long-range savings, in certain circumstances the Plan
permits withdrawals of contributions during employment.

     1.04. Effective Dates. The effective date of the Plan as restated in its entirety herein
is October 1, 2011, except as otherwise expressly provided herein (the “Effective Date”).

     The provisions of this restated Plan shall apply to Participants of the Plan who are credited
with at least one (1) Hour of Service on or after the Effective Date. Except as otherwise
expressly provided herein, the rights of Participants who are not credited with any Hours of
Service on or after the Effective Date shall be governed by the provisions of the Plan as in effect
prior to the Effective Date.

     1.05. Transfers to Savings Plan II. Any Accounts maintained for an individual who was a
Participant in the Plan prior to January 1, 1995 and who as of January 1, 1995, became covered
under The Stride Rite Corporation Employee Savings and Investment Plan II, formerly The Stride Rite
Corporation Retail Employee Savings and Investment Plan (the “Savings Plan II”), were transferred
to the Savings Plan II in June, 2000. As a result of such transfer, the rights of any individual
who was a Participant in the Plan prior to January 1, 1995 but who became a participant in the
Savings Plan II commencing January 1, 1995 shall be governed by the provisions of the Savings Plan
II.

     1.06. Transfers from Savings Plan II. Effective as of January 1, 2007, or as soon as
practicable thereafter, all assets in The Stride Rite Corporation Employee Savings and Investment
Plan II (‘Plan II’) shall be transferred to and merged with this Plan and all

2

 

participants in Plan II on December 31, 2006 shall be automatically enrolled in this Plan on
January 1, 2007. As a result of such transfer, the rights of all participants in Plan II shall
henceforth be governed by the provisions of this Plan. All references to “Former Saucony
Employees” in Exhibit A to the Plan shall be read to include participants in Plan II who were
formerly participants in the Saucony, Inc. 401(k) Plan. All accounts transferred from Plan II
shall be maintained in accounts of the same type in this Plan.

3

 

ARTICLE II — DEFINITIONS

     Whenever used in this Agreement, unless the context clearly indicates otherwise, the following
words shall have the following meanings:

     2.01. “Account” means each of the bookkeeping accounts maintained to reflect a Participant’s
interest under the Plan and his share of the Trust. A Participant may have several Accounts to
reflect his interest attributable to various types of contributions under the Plan as more fully
described in Section 5.01.

     2.02. “Affiliated Company” means a corporation which, together with the Company, is a member
of a controlled group of corporations (as defined in Section 414(b) of the Code), (b) a trade or
business (whether or not incorporated) which is under common control (as defined in Section 414(c)
of the Code) with the Company, (c) a corporation, partnership, or other entity which, together with
the Company, is a member of an affiliated service group (as defined in Section 414(m) of the Code),
or (d) any entity required to be aggregated with the Company under Section 414(o) of the Code. For
purposes of determining whether an Employee has met the eligibility requirements of Section 3.01,
all periods of employment with the Company and with an Affiliated Company shall be recognized.

     2.03. “After-Tax Contributions” means the contributions made by a Participant pursuant to Section 4.02.

     2.04. “Agreement” means this Agreement, as amended from time to time.

     2.05. “Anniversary Date” means December 31 in each year.

     2.06. “Beneficiary” means the person or persons designated by a Participant, pursuant to the
provisions of Section 7.04 of this Agreement, to receive distribution of such Participant’s share
upon his death, and includes a co-beneficiary or a contingent beneficiary. The term

4

 

     “Beneficiary” also includes a Participant’s surviving spouse if such spouse is deemed to be such
Participant’s Beneficiary pursuant to Section 7.04.

     2.07. “Board of Directors” means the board of directors of the Company in office from time to
time.

     2.08. “Committee” means the administrative committee constituted under Article IX of this
Agreement in office from time to time.

     2.09. “Company” means The Stride Rite Corporation, and also means any successor to all or a
major portion of its business which adopts this Plan pursuant to Section 11.05.

     2.10. “Compensation” for any Employee for any period means base salary, commissions, bonuses,
unused accrued sick leave pay, vacation leave pay or payment for other leave, which a terminating
employee would have been able to use if his or her employment had continued, short-term disability
payments paid directly by the Company, overtime paid by the Company to the Employee during the
period, and amounts which would have been paid to an Employee as Compensation but for an election
by such Employee under Sections 125, 132(f)(4) or 401(k) of the Code; provided, however that
“Compensation” shall not include moving allowances, expense reimbursement, payments under any sick
leave or disability plan sponsored by the Company under which payments are not made directly by the
Company, payments from or contributions to any other benefits program sponsored by the Company,
extra compensation of any other nature, payments made by the Company to an Employee that do not
constitute income from within the United States for purposes of the Code, or pay paid after an
individual’s termination of employment unless the pay is paid within 21/2 months after termination of
employment, subject to the following provisions of this Section. Notwithstanding the preceding
sentence, to the extent that the following amounts are otherwise included in the definition of

5

 

Compensation and are paid no later than the later of the date which is 21/2 months after termination
of employment or the end of the Plan Year that includes the date of termination of employment, such
amounts paid after an Employee’s termination of employment shall be deemed Compensation: regular
pay, including compensation for services during regular working hours, overtime, shift
differential, commissions, bonuses or other similar payments, and payment for unused accrued sick,
vacation or other leave, but only if the Employee would have been able to use the leave if
employment had continued. The exclusions described in this Section 2.10 with respect to
post-employment payments shall not apply to payments to an individual who does not currently
perform services for the Company by reason of qualified military service under Code Section
414(u)(1), to the extent such payments do not exceed the compensation such individual would have
received from the Company if he or she had continued to perform services for the Company.

     Compensation in excess of $245,000 shall be disregarded, although such amount shall be
adjusted for cost-of-living increases in accordance with Code Section 401(a)(17)(B).

     2.11. “Eligible Employee” means any Employee other than an Employee covered by a collective
bargaining agreement as to which retirement benefits have been a subject of good faith bargaining,
unless the collective bargaining agreement specifically provides for participation in this Plan.
An individual will not be an Eligible Employee with respect to service performed while he is
classified on the Company’s records as being in a category of employment that disqualifies him or
her from being an “Eligible Employee”, as described above in this Section 2.11, even if that
classification is later retroactively changed.

     2.12. “Employee” means any person who is classified by the Company as being employed by the
Company as a common law employee at the time such individual’s services are

6

 

rendered to the Company, has Federal income tax withheld by the Company and receives a Form W-2 from the Company.

     2.13. “Entry Date” means the first day of each calendar month.

     2.14. “Highly Compensated Employee” means (i) any Employee who was, at any time in the
preceding year or the current year, a five percent (5%) owner, as defined in Code Section
416(i)(1), or (ii) any Employee who, in the preceding year received compensation (as defined in
Section 6.05) from the Company in excess of $110,000 (as adjusted pursuant to Section 415(d) of the
Code). The determination of who is a Highly Compensated Employee will be made in accordance with
Code Section 414(q) and the regulations thereunder.

     2.15. “Hour of Service” means:

          (a) Each hour for which an Employee is directly or indirectly paid or entitled to payment by
the Company or an Affiliated Company for the performance of duties. These hours shall be credited
to the Employee for the Plan Year(s) in which the duties are performed; and

          (b) Each hour for which an Employee is directly or indirectly paid or entitled to payment by
the Company or an Affiliated Company on account of a period of time during which no duties are
performed (irrespective of whether the employment relationship has terminated) due to vacation,
holiday, illness, incapacity (including disability), layoff, jury duty or other similar reason.
These hours shall be calculated and credited pursuant to Section 2530.200b-2(b) and (c) of the
Department of Labor Regulations which are incorporated herein by reference;

          (c) Each hour for which an Employee would have been credited with an Hour of Service but for a
Maternity/Paternity Leave of Absence. No more than 501 Hours of Service

7

 

will be credited under this paragraph for any single continuous period. Such Hours shall be
credited in the Plan Year during which such absence begins if such credit is necessary to avoid a
One-Year Break in Service for such year; otherwise, such Hours shall be credited in the immediately
following Plan Year;

          (d) Each hour for which back pay, irrespective of mitigation of damages, has been either
awarded or agreed to by the Company or an Affiliated Company. The same hours shall not be credited
under both paragraph (a) or paragraph (b), as the case may be, and under this paragraph (d). These
hours shall be credited to the Employee for the Plan Year(s) to which the award or agreement
pertains rather than the Plan Year in which the award, agreement, or payment is made; and

          (e) Each hour credited pursuant to Section 3.05.

     2.16. “Investment Fund” or “Investment Funds” means one or more of the funds established by
the Committee for the investment of Plan assets, as more fully described in Section 5.08.
Effective October 1, 2011, unless and until the Plan is amended accordingly, the Plan shall provide
a Collective Brands Common Stock Fund as an investment option.

     2.17. “Matching Contributions” means the contributions made by the Company pursuant to Section
4.03.

     2.18. “Maternity/Paternity Leave of Absence” means a period of absence from the Company or an
Affiliated Company that begins on or after January 1, 1985 for any of the following reasons:

          (a) the Employee’s pregnancy;

          (b) birth of the Employee’s child;

8

 

          (c) placement of a child with the Employee in connection with the adoption of such child by
the Employee; or

          (d) the caring for such child for a period beginning immediately following such birth or
placement;

provided, however, that in order for an Employee’s absence to qualify as a Maternity/Paternity
Leave of Absence, the Committee may require the Employee to furnish such information (in such form
and at such time as it may reasonably require) establishing that the absence from work is an
absence described hereunder.

     2.19. “Normal Retirement Age” means age sixty-five.

     2.20. “One-Year Break in Service” means a Plan Year in which an Employee has not completed more than 500 Hours of Service.

     2.21. “Participant” means an Employee who participates in the Plan in accordance with Article III of the Plan.

     2.22. “Plan” means the “COLLECTIVE BRANDS PERFORMANCE + LIFESTYLE GROUP EMPLOYEE SAVINGS &
INVESTMENT PLAN” as set forth herein, together with any and all amendments hereto.

     2.23. “Plan Sponsor” means The Stride Rite Corporation.

     2.24. “Plan Year” means the calendar year.

     2.25. “Salary Reduction/Deduction Agreement” means the agreement entered into between the
Company and an Employee pursuant to the provisions of Section 3.04.

     2.26. “Tax Deferred Contributions” means the contributions made by the Company pursuant to
Section 4.01 of the Plan in consideration of a Participant’s agreement to reduce his salary by a
comparable amount pursuant to a Salary Reduction/Deduction Agreement.

9

 

     2.27. “Total Compensation” means, in the case of each Employee and for each Plan Year, all
compensation received by the Employee from the Company during the Plan Year, including base pay,
bonuses and overtime pay, plus any amounts that would have been received by the Employee as Total
Compensation during the Plan Year but for an election under Sections 125, 132(f)(4) or 401(k) of
the Code; provided, however, that “Total Compensation” does not include any contributions under
this Plan or any other employee benefit plan, fund, program or arrangement, whether now or
hereafter established, any moving or other expense reimbursements, imputed compensation, or
property received by the Employee. In no event shall an Employee’s Total Compensation for any Plan
Year beginning after December 31, 2010, exceed, for purposes of this Plan, $245,000 (subject to
cost-of-living adjustments made by the Secretary of Treasury or his delegate under Section
401(a)(17)(B) of the Code).

     2.28. “Trust” means the sum of the assets held in the trusts established pursuant to the Plan
plus all contributions made hereunder and held by the Trustee in a trust or trusts created pursuant
hereto, increased by any gains, profits, or income thereon and decreased by any losses thereon, by
any expenses properly incurred in the administration of the Plan and Trust, and by any payments
made thereon under the Plan.

     2.29. “Trust Agreement” means each agreement entered into by the Company and one or more
Trustees to govern the Trust, as the same may be amended from time to time.

     2.30. “Trustee” means one or more individuals or banks, trust companies or other financial
institutions who are designated to hold and manage the Trust or any parties thereof.

     2.31. “Valuation Date” means each date that the New York Stock Exchange is open, or such other
date or dates as the Committee may designate in its own discretion.

10

 

     2.32. “Year of Eligibility Service” means (i) the twelve-consecutive-month period beginning on
the Employee’s employment commencement date but only if such Employee is credited with 1,000 or
more Hours of Service during such period, or (ii) if the Employee is not credited with 1,000 or
more Hours of Service in the period described in (i), each Plan Year commencing after his
employment commencement date during which he has completed 1,000 or more Hours of Service.

     2.33. “Year of Vesting Service” for any Employee means each Plan Year during which the
Employee has completed 1,000 or more Hours of Service.

11

 

ARTICLE III — PARTICIPATION

     3.01. Eligibility for Participation. Each Eligible Employee who was a Participant on
September 30, 2011 shall continue to be a Participant on October 1, 2011. Each other Employee,
including each future Employee, shall be eligible to become a Participant on the Entry Date
coincident with or next following the latest of (i) his attainment of age 21 and his completion of
six consecutive months of employment with the Company and (ii) the date he becomes an Eligible
Employee. Notwithstanding the preceding, effective January 1, 2011, an individual who has
completed 1,000 or more Hours of Service as of the end of a twelve-consecutive-month period that
begins on his or her employment commencement date or reemployment commencement date, if applicable
(or any annual anniversary thereof) shall be deemed to have satisfied as of the end of such period
the service required under this Section for eligibility to become a Participant.

     Notwithstanding any other provisions of the Plan, any individual who is providing services to
the Company in the capacity of, or who is designated by the Company as an independent contractor,
and who is subsequently reclassified as an Employee by court or similar action (whether
retroactively or prospectively), shall not be eligible to participate in the Plan, and shall be
treated as a member of an excluded class. No such excluded individual shall have any claim for
benefits under the Plan for any period during which he or she is excluded from participation.

     3.02. Determination of Eligibility by Committee. The determination of an Employee’s
eligibility for participation under the Plan shall be made by the Committee from the Company’s
records, and the Committee’s decisions on these matters shall be conclusive and binding upon all
persons.

12

 

     3.03. Duration of Eligibility. A Participant shall continue as an active Participant
until the earlier of (i) his termination of employment with the Company and (ii) the date he ceases
to be an Eligible Employee, and shall cease to be an active Participant entitled to share in
contributions hereunder upon such date. To the extent a former Participant’s Accounts have not
been fully distributed, such former Participant shall be treated as a Participant for purposes of
applying the provisions of the Plan to such Accounts. A former Participant shall be eligible to
become an active Participant under the Plan on the Entry Date coincident with or next following the
date he again becomes an Eligible Employee.

     3.04. Salary Reduction/Deduction Agreement. Each Eligible Employee who has satisfied the
eligibility requirements of Section 3.01 and who is not an active Participant may elect to become a
Participant by entering into a Salary Reduction/Deduction Agreement with the Company. In
accordance with procedures established by the Committee, a Salary Reduction/Deduction Agreement may
be entered into, suspended, changed or resumed in writing, through a voice response system, by
electronic means, or through any other procedures prescribed by the Committee. The terms of any
such Salary Reduction/Deduction Agreement shall:

          (a) provide that such Participant agrees either (i) to accept a pre-tax reduction in cash
Compensation from the Company, in an amount equal to any whole number percentage of his
Compensation from one percent (1%) to eighteen percent (18%) of his Compensation, in consideration
of the Company’s agreement to contribute such amount into the Trust on his behalf and/or (ii) to
have a portion of his cash Compensation deducted by the Company on an after-tax basis in an amount
equal to any whole number percentage of his Compensation from two percent (2%) to six percent (6%)
of his Compensation; provided, the sum of the salary reduction and

13

 

deduction percentages shall not exceed twenty percent (20%); and provided further, that the amount
of pre-tax reduction under this Plan and all other plans maintained by the Company shall not exceed
$16,500 (as adjusted under Section 402(g) of the Code or such greater dollar amount as may be
established by the Secretary of the Treasury under Section 402(g) of the Code) in any calendar
year;

          (b) specify the percentage of such Participant’s Compensation reduced and to be paid by the
Company on a pre-tax basis and/or to be deducted and to be paid by the Company on an after-tax
basis on such Participant’s behalf into the Trust;

          (c) specify the portion of such Participant’s salary reduction and/or deduction to be
allocated among the Investment Funds in accordance with Section 5.08;

          (d) designate a Beneficiary or Beneficiaries to receive any payment or distribution which may
be due upon such Participant’s death in accordance with Section 7.04; and

          (e) set forth such other or additional information as, in the opinion of the Committee, is
desirable or necessary in the operation of the Plan.

     Each Participant who enters into a Salary Reduction/Deduction Agreement may elect to change
the percentage rate of his salary reduction or deduction effective only as of any Entry Date, and
each Participant may elect to completely suspend his salary reduction or deduction only as of the
first day of any regular pay period. Each such change or suspension shall be filed with the
Committee, in writing, through a voice response system, by electronic means or through any other
procedure prescribed by the Committee, at least fifteen (15) days (or such shorter period as the
Committee allows) prior thereto. No change in the percentage of a Participant’s salary reduction
or deduction shall be made at any other time by the Participant and the salary

14

 

reduction or deduction percentage in force at any time shall continue in force unless and until
changed in accordance with the provisions of the preceding sentences.

     The participation of a former active Participant or an Eligible Employee who has satisfied the
eligibility requirements of Section 3.01 shall commence on the first Entry Date which is not less
than thirty (30) days (or such shorter period as the Committee allows) after the completion of such
Salary Reduction/Deduction Agreement. In the case of an Eligible Employee becoming eligible for
participation for the first time or upon reemployment by the Company, (i) the Committee shall
notify such Eligible Employee of his eligibility in advance of the Entry Date on which such
Eligible Employee is first eligible and forward to such Employee a Salary Reduction/Deduction
Agreement, and (ii) such Eligible Employee shall become a Participant on such Entry Date if such
Eligible Employee enters into said agreement with the Company at least thirty (30) days (or such
shorter period as the Committee allows) prior to such Entry Date. In all cases, the initiative for
applying for participation rests with the individual Eligible Employee.

     3.05. Military and Unpaid Leaves of Absence. Except as otherwise specifically provided,
an Employee who leaves the Company to enter the armed services of the United States of America and
who returns to its employ under conditions which entitle such Employee to reemployment under
applicable Federal laws, or an Employee who, with the approval of the Company and without pay, is
absent from work on account of sickness, temporary disability, temporary layoff, jury duty,
vacation, or for any other similar reason shall be credited by the Committee with the number of
Hours of Service obtained by multiplying the number of hours in such Employee’s regular work week
immediately prior to the date such absence began by the duration (in weeks) of the absence (or on
such basis as is required by Federal law in connection with service in the armed forces). For
purposes of granting leaves of absence and determining

15

 

the number of credited hours, Employees in similar circumstances shall be treated alike in
accordance with the standards set forth by the Company and in this Plan. Nothing herein contained
shall restrain the Company’s right to terminate the employment of any Employee, whether or not
during a leave of absence. If any Employee shall fail to return from any such absence as required
by the Company in accordance with the Plan and applicable Federal law regarding service in the
armed forces, such Employee shall retroactively lose all credit for those Hours of Service
previously credited to such Employee under this Section 3.05, and his employment shall be deemed
terminated as of the commencement of his absence unless the Company shall determine that his
employment is terminated as of a later date, except to the extent prohibited under Federal law.

16

 

ARTICLE IV — CONTRIBUTIONS UNDER THE PLAN

     4.01. Tax Deferred Contributions. For each pay period, the Company shall contribute to
the Trust on behalf of each Participant who has entered into a Salary Reduction/Deduction Agreement
the amount, if any, which has been specified as a pre-tax contribution in said Salary
Reduction/Deduction Agreement. Notwithstanding anything elsewhere herein to the contrary, Tax
Deferred Contributions shall be subject to the limitations described in Article VI of the Plan.

     4.02. After-Tax Contributions. Except as otherwise provided herein, each Participant
may, but shall not be required to, contribute to the Trust such amount or amounts in cash as he may
choose, subject to the limitations in Sections 3.04 and 6.04. The Participant’s After-Tax
Contributions, if any, under this Section 4.02 shall be payable in cash to the Company at such time
or times and in such manner as the Company shall determine. Contributions to the Plan pursuant to
this Section 4.02 are not intended to be deductible for Federal income tax purposes.

     4.03. Matching Contributions. Effective April 1, 2009, or as soon thereafter as
administratively feasible, the Company shall contribute to the Trust under the Plan for each
Participant who makes Tax Deferred Contributions an amount equal to one hundred percent (100%) of
the amount of the first 3% of a Participant’s Tax Deferred Contributions and fifty percent (50%) of
the next 3% of a Participant’s Tax Deferred Contributions. Matching Contributions shall be made on
a regular basis during the Plan Year.

     4.04. Payment of Contributions.

          (a) The Tax Deferred Contributions made by the Company on behalf of each Participant, and the
After-Tax Contributions made by each Participant, with respect to each month shall be paid into the
Trust by the Company as soon as possible, but in no event later than the fifteenth (15th) business
day of the month following such month or such later date permitted

17

 

by law and deposited in the Investment Funds in the proportions designated by the election of such
Participant under Section 5.08 of the Plan.

          (b) The Matching Contributions made by the Company on behalf of each Participant with respect
to each calendar month shall be made within the time required by law in order for the Company to
obtain a deduction of the amount of such payment for Federal income tax purposes for such Plan Year
(including extensions thereof), as determined under the applicable provisions of the Code and
deposited in the Investment Funds in the proportions designated by the election of such Participant
under Section 5.08 of the Plan.

     4.05. Reversion of Certain Contributions Made by the Company. All Tax Deferred and
Matching Contributions made pursuant to Sections 4.01 and 4.03 shall be made upon the condition
that such contributions are fully deductible for Federal income tax purposes. In the event that
any such deduction is disallowed in whole or in part, then the Company may direct the Trustee to
return the full amount attributable to such contributions (to the extent disallowed) to the Company
at any time within the twelve-month period commencing on the date of disallowance. In the event
that the Company shall make Tax Deferred and Matching Contributions pursuant to Sections 4.01 or
4.03 on the basis of a mistake of fact, the Company may direct the Trustee to return the full
amount attributable to such contributions to the Company at any time within the twelve-month period
commencing on the date of contribution.

     4.06. Rollover Contributions.

          (a) Any Eligible Employee may make a Rollover Contribution of all or any part of a
distribution (including spousal death benefits) from (i) a qualified plan described in Section
401(a) or 403(a) of the Code, including after-tax employee contributions, (ii) an annuity contract
described in Section 403(b) of the Code, including after-tax employee contributions, (iii)

18

 

an eligible plan under Section 457(b) of the Code which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political subdivision of a
state, including any after-tax contributions, or (iv) an individual retirement account or annuity
described in Section 408(a) or 408(b) of the Code that is eligible to be rolled-over and would
otherwise be includible in gross income.

          (b) Contributions and transfers under this Section 4.06 shall be paid to the Trustee in cash
and shall be credited to a separate book account maintained for such individual under the Plan,
which account shall be known as his “Rollover Account.” An Eligible Employee’s Rollover Account
shall be nonforfeitable at all times.

          (c) Contributions made by an Eligible Employee pursuant to this Section 4.06 shall be
disregarded in applying the limitations set forth in Article VI.

          (d) After the receipt of any Rollover Contribution made by an Eligible Employee and after the
Account balances of the Participants have been adjusted as provided in Section 5.06, the Committee
shall credit such Rollover Contribution to such Eligible Employee’s Rollover Account as of the
Valuation Date coincident with or next following the receipt of such Rollover Contribution.

          (e) Any Eligible Employee for whom a Rollover Account is established under the Plan will be
deemed to be a Participant for purposes of applying the Plan to such Rollover Account, and shall
not otherwise be eligible to become a Participant unless and until he has satisfied the
requirements of Article III.

     4.07. Catch-Up Contributions. All Participants who have attained age 50 before the close
of the Plan Year shall be eligible to make catch-up contributions in accordance with, and subject
to the limitations of, Section 414(v) of the Code. Such catch-up contributions shall not

19

 

be taken into account for purposes of the provisions of the Plan implementing the required
limitations of Sections 402(g) and 415 of the Code. The Plan shall not be treated as failing to
satisfy the provisions of the Plan implementing the requirements of Section 401(k)(3), 401(k)(11),
401(k)(12), 410(b) or 416 of the Code, as applicable, by reason of the making of such catch-up
contributions.

20

 

ARTICLE V — PARTICIPANT’S ACCOUNTS; ALLOCATION OF ASSETS AND

CONTRIBUTIONS; PARTICIPANTS’ INVESTMENT ELECTIONS

     5.01. Participants’ Accounts. The Committee shall maintain the following Accounts for
each Participant under the Plan: (a) a Tax Deferred Account to which Tax Deferred Contributions
made by the Company for the benefit of such Participant shall be credited; (b) a Company Account to
which Matching Contributions contributed with respect to Plan Years beginning before January 1,
2007 for the benefit of such Participant shall be credited; (c) a Company Account II to which
Matching Contributions contributed with respect to Plan Years beginning on or after January 1, 2007
shall be credited; (d) a Voluntary Account to which After-Tax Contributions made by such
Participant shall be credited; and (e) a Rollover Account to which Rollover Contributions made by
an Eligible Employee pursuant to Section 4.06 shall be credited. The rights of each Participant to
the amounts allocated to his Tax Deferred, Company Account II, Voluntary and Rollover Accounts
shall be fully vested and nonforfeitable at all times.

     5.02. Allocation of Tax Deferred Contributions. At the time of payment of any Tax
Deferred Contributions to the Trust, the Company shall deliver to the Committee a schedule showing
the name of each Participant and the amount of Tax Deferred Contributions made on his behalf. The
schedule shall also contain such other information as the Committee may reasonably require for the
proper administration of the Plan. Upon receiving all such schedules with respect to a calendar
month or other period ending on a Valuation Date and after the Account balances of the Participants
have been adjusted as provided in Section 5.06, the Committee shall credit to the Tax Deferred
Account of each Participant listed on such schedules the amount of Tax Deferred Contributions made
to the Trust on his behalf as shown therein.

21

 

     5.03. Allocation of After-Tax Contributions. At the time of payment of any After-Tax
Contributions made to the Trust, the Company shall deliver to the Committee a schedule showing the
name of each Participant and the amount of such After-Tax Contributions made by such Participant.
The schedule shall also contain such other information as the Committee may reasonably require for
the proper administration of the Plan. Upon receiving such schedule with respect to a calendar
month or other period ending on a Valuation Date and after the Account balances of the Participants
have been adjusted as provided in Section 5.06, the Committee shall credit to the Voluntary Account
of each Participant listed on such schedule the amount of such After-Tax Contribution made to the
Trust by such Participant as shown therein.

     5.04. Allocation of Matching Contributions. At the time of payment of any Matching
Contributions made to the Trust, the Company shall deliver to the Committee a schedule showing the
name of each Participant and the amount of such Matching Contributions made on his behalf. The
schedule shall also contain such other information as the Committee may reasonably require for the
proper administration of the Plan. Upon receiving such schedule with respect to a calendar month
or other period ending on a Valuation Date and after the Account balances of the Participants have
been adjusted as provided in Section 5.06, the Committee shall credit to the Company Account II of
each Participant listed on such schedule the amount of such Matching Contribution made to the Trust
on his behalf as shown therein.

     5.05. Allocation of Rollover Contributions. After the receipt of any Rollover
Contribution made by an Eligible Employee and after the Account balances of the Participants have
been adjusted as provided in Section 5.06, the Committee shall credit such Rollover Contribution to
such Participant’s Rollover Account as of the investment date of such Rollover Contribution.

22

 

     5.06. Valuation of Assets. The Investment Funds shall be valued by the Trustee, no less
frequently than as of each Valuation Date, according to such methods as the Trustee may reasonably
select in order to determine the fair market value of the assets of each such Investment Fund.
Each Account maintained under the direction of the Committee shall be adjusted, no less frequently
than as of each Valuation Date, to reflect the effect of income collected and accrued, realized and
unrealized profit and losses, expenses, distributions and all other transactions during the
applicable period. All expenses of the Trust which are allocable to a Participant Account or
Investment Fund shall be charged to such Account or Investment Fund. All such expenses allocable
to an Investment Fund shall be charged against all Participant Accounts in the same proportion as
the amount credited to such Participant Account and invested in such Investment Fund bears to the
total amount invested in such Investment Fund. All such expenses allocable to a Participant
Account will be charged against the interest of such Account invested in each Investment Fund in
the same proportion as each such interest bears to the total value of the Account. Such valuations
and adjustments of the Participants’ Accounts shall be made so as to preserve for each Account of
each Participant its beneficial interest in each of the Investment Funds. The value of a
Participant Account as of any Valuation Date shall be the sum of the interests of the Participant
Account invested in each Investment Fund as of the Valuation Date for each such Investment Fund
which is coincident with or immediately preceding the Valuation Date as of which the Participant
Account is being valued.

     5.07. Distributions and Forfeitures. Whenever the Trustee shall make any distribution to
or in behalf of a Participant in accordance with the provisions of Article VI, Article VII or
Article VIII, and whenever a Participant shall forfeit all or any portion of the amount standing to
the credit of his Account in accordance with the provisions of Section 6.04 or 7.05, such

23

 

Participant’s Accounts shall be charged with the amount of such distribution or forfeiture. For
this purpose, distributions shall also include in-service withdrawals or loans. The Accounts of
any Participant shall continue to be maintained under the Plan and shall continue to share in the
allocation of income, gain, losses, appreciation, and depreciation of assets pursuant to Section
5.06 until such Accounts have been fully distributed.

     5.08. Election of Investments. Each Participant shall, as of the date on which such
Participant first becomes a Participant pursuant to Article III, designate in accordance with the
procedures established by the Committee the portion of each of such Participant’s Tax Deferred
Account, Voluntary Account, Company Account, Company Account II and Rollover Account to be invested
in the Investment Funds available under the Trust. Each Participant may, as of any Entry Date, by
use of the investment direction system maintained for such purposes by the Committee or its agent,
elect to change such Participant’s investment election with respect to future contributions
credited to any of such Participant’s aforementioned Accounts as well as amounts already credited
to such Accounts to any other investment allocation permitted by the preceding sentence.
Notwithstanding the preceding, effective October 1, 2011, the amount of future contributions that a
Participant may elect to be invested in the Collective Brands Common Stock Fund shall be limited to
20% of such contributions. Any investment election made hereunder shall continue to be effective
until properly revoked by the Participant. Any redemption fees or other terms of restriction
imposed from time to time by any Investment Fund shall apply to or limit a Participant’s request to
transfer amounts from one fund to one or more other funds. To the extent there is no investment
election in effect with respect to a Participant, the Trustee shall invest amounts contributed to
such aforementioned Accounts in respect of such Participant in such Investment Fund as the
Committee shall determine on a uniform and

24

 

consistent basis. Neither the Company nor the Committee shall have any liability for any losses
that are the direct and necessary result of investment instructions given by a Participant, his
Beneficiary, or an alternate payee under a qualified domestic relations order. The Plan is
intended to constitute a plan described in Section 404(c) of ERISA and the regulations issued
thereunder. For purposes of this Section 5.08, (a) a terminated Participant shall be considered to
be a Participant of the Plan to the extent his Account balances under the Plan have not been
distributed, (b) an Employee who has not yet satisfied the eligibility requirements of Article III
shall be considered to be a Participant of the Plan to the extent he has elected to make a Rollover
Contribution pursuant to Section 4.06, (c) while any balance remains in the Account of a
Participant after his death, the Beneficiary of such Participant shall direct the investment of the
Accounts to the same extent as if the Beneficiary were the Participant, and (d) to the extent
required by a qualified domestic relations order, an alternate payee shall direct the investment of
that portion of the Participant’s Accounts subject to the order to the same extent as if such
alternate payee were the Participant.

     5.09. Shares of Collective Brands, Inc. (“Collective Brands Stock”) in the Collective
Brands Common Stock Fund. This Section 5.09 is effective October 1, 2011.

          (a) Each Participant (or beneficiary of a deceased Participant) who has Accounts invested in
the Collective Brands Common Stock Fund shall, as a named fiduciary within the meaning of Section
403(a)(1) of ERISA, have the right to direct the Trustee with respect to the vote of the number of
shares of Collective Brands Stock attributable to units credited to him in the Collective Brands
Common Stock Fund as of the latest practicable Valuation Date prior to or contemporaneous with the
record date set by Collective Brands, Inc. for each meeting of shareowners of Collective Brands,
Inc. For such purpose the Trustee shall

25

 

furnish to each such Participant prior to each such meeting the proxy statement for such meeting,
together with a form to be returned to the Trustee on which may be set forth the Participant’s
instructions as to the manner of voting such shares of stock. Upon receipt of such instructions,
the Trustee shall vote such shares in accordance therewith. If a Participant’s instructions are
not received by the Trustee in a timely manner, the Trustee shall vote such Participant’s shares in
the same proportion as the shares of Common Stock for which instructions were actually timely
received from Participants. The Trustee shall not divulge the instructions of any Participant.

          (b) Each Participant (or beneficiary of a deceased Participant) who has Accounts invested in
the Collective Brands Common Stock Fund shall, as a named fiduciary within the meaning of Section
403(a)(1) of ERISA, have the right with respect to the number of shares of Collective Brands Stock
attributable to units credited to him in the Collective Brands Common Stock Fund as of the latest
practicable Valuation Date, to direct the Trustee in writing as to the manner in which to respond
to a tender or exchange offer with respect to Collective Brands Stock, and the Trustee shall
respond in accordance with the instructions so received. The Trustee shall utilize its best
efforts to timely distribute or cause to be distributed to each Participant such information as
will be distributed to shareowners of Collective Brands, Inc. in connection with any such tender or
exchange offer, together with a form requesting instructions on whether or not such shares will be
tendered or exchanged. If the Trustee shall not receive timely direction from a Participant as to
the manner in which to respond to such a tender or exchange offer, the Trustee shall not tender or
exchange any shares of Collective Brands Stock with respect to which such Participant has the right
of direction. Tenders as a result of a self-tender offer by Collective Brands, Inc. shall continue
notwithstanding any investment change blackout. The Trustee shall not divulge the instructions of
any Participant. The proceeds from

26

 

the tender or exchange of shares attributable to units in Common Stock Investment Fund accounts of
Participants shall be transferred to one of the Investment Funds pursuant to a procedure
established by the Committee.

27

 

ARTICLE VI — LIMITATIONS ON CONTRIBUTIONS AND ALLOCATIONS

     6.01. Contributions to be Deductible. Tax Deferred Contributions (exclusive of catch-up
contributions made pursuant to Section 4.07) and Matching Contributions under the Plan with respect
to a Plan Year shall not exceed that amount which, when added to the contributions made by the
Company for that Plan Year to all other qualified pension or profit sharing plans maintained by the
Company, equals the maximum amount allowable as a deduction by the Company pursuant to Section 404
of the Code with respect to such Plan Year.

     6.02. Limitation on Tax Deferred Contributions. This Section 6.02 is applicable with
respect to the Plan Year beginning on January 1, 2009. Except for the Plan Year beginning on
January 1, 2009, for Plan Years beginning on or after January 1, 2007, the Plan shall meet the
provisions of a safe harbor 401(k) plan as provided in Section 401(k)(12) of the Code.

          (a) At any time during the Plan Year, the Company may suspend or reduce the amount of Tax
Deferred Contributions (exclusive of catch-up contributions made pursuant to Section 4.07),
including without limitation, setting a dollar limit as set forth on Appendix A of the Plan, which
shall be a part of the Plan, with respect to any Participant or group of Participants if the
Committee determines that such action is necessary to cause the test in either (i) or (ii) below to
be met with respect to Tax Deferred Contributions for such Plan Year. Such adjustments shall be
made in accordance with rules prescribed by the Committee.

          (i) The Actual Deferral Percentage for the Eligible Employees who are considered Highly
Compensated Employees is not more than the Actual Deferral Percentage for all other Eligible
Employees multiplied by 1.25; or

          (ii) The excess of the Actual Deferral Percentage for the Eligible Employees who are
considered Highly Compensated Employees over the Actual Deferral Percentage for all other
Eligible Employees is not more than two (2) percentage points,

28

 

and the Actual Deferral Percentage for the Eligible Employees who are considered Highly
Compensated Employees is not more than the Actual Deferral Percentage for all other Eligible
Employees multiplied by two (2).

     For the purposes of this subsection (a), “Actual Deferral Percentage” for a specified group of
Eligible Employees for a Plan Year shall be the average of the ratios (calculated separately for
each Eligible Employee in such group) of (A) the amount of the Tax Deferred Contributions
(exclusive of catch-up contributions made pursuant to Section 4.07) credited on behalf of the
Eligible Employee for such Plan Year plus any qualified nonelective contributions and qualified
matching contributions which the Company elects to treat as elective deferrals in accordance with
Section 6.02(d) to (B) the Eligible Employee’s compensation, as defined in Code Section 414(s), for
the portion of such Plan Year while the individual is an Eligible Employee.

          (b) The Company may implement rules limiting contributions under Section 4.01 which may be
made on behalf of some or all Highly Compensated Employees so that the limits of Section 401(k)(3)
or 401(m)(2) of the Code are satisfied. If for any Plan Year the Plan satisfies neither of the
tests set forth in Code Section 401(k)(3), the Trustee shall be directed by the Committee to return
to each Highly Compensated Employee his or her portion of the excess contributions (plus the income
or less the loss allocable to such excess contributions, as determined in accordance with Code
Section 401(k) and applicable Treasury Regulations) for such Plan Year within 12 months after the
last day of such Plan Year. A Highly Compensated Employee shall forfeit any Matching Contributions
which were contributed on account of any portion of the excess contributions even if such Matching
Contributions are vested and such forfeited amounts shall be applied in accordance with Section
7.05. Each Highly Compensated

29

 

Employee’s portion of the excess contributions for a Plan Year shall be determined under a two-step
process. First, the aggregate amount of excess contributions shall be calculated. This shall be
done by reducing the actual deferral percentages of those Highly Compensated Employees with the
highest actual deferral percentages to the extent necessary but not below the next highest level of
actual deferral percentages. This process shall be repeated, to the extent necessary, until the
actual deferral percentage for the group of Highly Compensated Employees satisfies one of the tests
set forth in Code Section 401(k)(3). The aggregate amount of excess contributions shall be equal
to the sum of all such reductions. Second, the aggregate amount of excess contributions to be
returned shall be allocated by reducing the pre-tax contributions of those Highly Compensated
Employees with the highest amount of pre-tax contributions to the extent necessary but not below
the next highest amount of pre-tax contributions. This process shall be repeated, to the extent
necessary, until all excess contributions to be returned shall be allocated among the Highly
Compensated Employees. The income or loss allocable to a Highly Compensated Employee’s portion of
the excess contribution will be determined under such reasonable method as the Committee shall
establish, provided the method does not discriminate in favor of Highly Compensated Employees, is
used consistently for all Participants and for all corrective distributions under the Plan for the
Plan Year, and is used by the Plan for allocating income to Participants’ Accounts.

          (c) Coordination With Distributions Of Elective Deferrals. If the Plan is required to
distribute both elective deferrals and excess contributions for a Plan Year, the Plan shall:

          (i) calculate and distribute the elective deferrals before determining the excess
contributions to be distributed to Highly Compensated Employees;

30

 

          (ii) calculate the actual deferral percentage including the amount of excess elective
deferrals distributed pursuant to (i) above; and

          (iii) distribute excess contributions to Participants by reducing the excess
contributions distributed to a Participant by the amount of excess elective deferrals
distributed to such Participant.

          (d) Election To Make Additional Company Contributions. Notwithstanding the above, in
accordance with Treasury Regulation Section 1.401(k)-2(a)(6), the Company may elect, in lieu of all
or a portion of the corrective distribution described in this Section 6.02 above, to make
additional qualified nonelective contributions or qualified matching contributions which are
treated as elective deferrals under the Plan and that, in combination with the elective deferrals,
satisfy the actual deferral percentage test. Any such additional qualified nonelective
contributions will be credited to a Participant’s Tax Deferred Account and shall be allocated to
each Participant who is not a Highly Compensated Employee in an amount as determined by the Company
and will be contributed as a percentage of such Participant’s Compensation for the Plan Year. Any
such additional qualified matching contributions will be credited to the Participant’s Tax Deferred
Account and shall be allocated to each Participant who is not a Highly Compensated Employee and
will be contributed as a percentage of the amount contributed by such Participant under Section
4.01.

          (e) Testing Year. The actual deferral percentage of Employees who are not Highly
Compensated Employees shall be determined as of the Plan Year for which the Plan must satisfy one
of the tests in Code Section 401(k)(3).

          (f) Definitions. All terms used in this Section 6.02 shall have the meanings given
such terms in Code Sections 401(k) and 401(m) and the regulations thereunder.

31

 

          (g) The Committee shall determine each Plan Year whether the limitation set forth in
subsection (a) above is met and its determination shall be final and binding on all persons.

     6.03.
Return of Excess Deferrals. If, during any calendar year, more than the maximum
permissible dollar amount under Section 3.04(a) of the Plan is allocated pursuant to one or more
cash or deferred arrangements to a Participant’s Accounts under this Plan and any other plan
described in Sections 401(k), 408(k), or 403(b) of the Code, the following provisions shall apply:

          (a) no later than March 1 of the next succeeding calendar year, the Participant may, but is
not required to, allocate all or part of such contributions in excess of the maximum permissible
dollar amount (“excess deferrals”) to this Plan. To be effective, such allocation must be in
writing, state that excess deferrals have been made on behalf of such Participant for the preceding
calendar year, and be submitted to the Committee; and

          (b) to the extent a Participant allocates excess deferrals in a timely manner to this Plan
pursuant to (a) above, the Committee shall direct the Trustee to return such excess deferrals, as
adjusted for income or losses in accordance with Code Section 402(g) and the applicable Treasury
Regulations thereunder, to the Company for distribution to the Participant no later than the
April 15 following such allocation. No Participant shall be permitted to have elective deferrals
made under this Plan, or any other qualified plan maintained by the Company during any taxable
year, in excess of the dollar limitation contained in Section 402(g) of the Code in effect for such
taxable year, except to the extent permitted under Section 4.07 of this Plan and Section 414(v) of
the Code, if applicable.

     6.04. Limitation on Matching and After-Tax Contributions. Effective January 1, 2010 the
Plan satisfies Code Section 401(m)(2) with respect to Matching Contributions by complying

32

 

with the provisions of Code Section 401(m)(11) and the rules of the Internal Revenue Service
promulgated thereunder. The limitations set forth in this Section 6.04 shall continue to apply,
however, to After-Tax Contributions effective January 1, 2010.

          (a) The tests set forth in Code Section 401(m)(2) and the provisions in this Section 6.04 for
purposes of the Plan satisfying such tests shall be applied under this Section with respect to
“401(m) Contributions” as defined herein. At any time during the Plan Year, the Company may
suspend or reduce the amount of 401(m) Contributions with respect to any Participant or group of
Participants if the Committee determines that such action is necessary to cause the test in either
(i) or (ii) below to be met with respect to 401(m) Contributions for such Plan Year. Such
adjustments shall be made in accordance with rules prescribed by the Committee. The term “401(m)
Contributions” shall mean After-tax Contributions and, with respect to the Plan Year beginning on
January 1, 2009 only, shall also include Matching Contributions.

          (i) The Actual Contribution Percentage for the Eligible Employees who are considered
Highly Compensated Employees is not more
than the Actual Contribution Percentage for all other Eligible Employees for the prior Plan
Year multiplied by 1.25; or

          (ii) The excess of the Actual Contribution Percentage for the Eligible Employees who
are considered Highly Compensated Employees over the Actual Contribution Percentage for all
other Eligible Employees for the prior Plan Year is not more than two (2) percentage points,
and the Actual Contribution Percentage for the Eligible Employees who are considered Highly
Compensated Employees is not more

33

 

than the Actual Contribution Percentage for all other
Eligible Employees for the prior Plan Year multiplied by two (2).

     For the purposes of this subsection (a), “Actual Contribution Percentage” for a specified
group of Eligible Employees for a Plan Year shall be the average of the ratios (calculated
separately for each Eligible Employee in such group) of (A) the amount of 401(m) Contributions
credited to the Eligible Employee’s applicable account on behalf of the Eligible Employee for such
Plan Year plus any qualified nonelective contributions and elective deferrals which the Company
elects to treat as matching contributions in accordance with Section 6.04(c) to (B) the Eligible
Employee’s compensation, as defined in Code Section 414(s), for the portion of such Plan Year while
the individual is an Eligible Employee.

          (b) Notwithstanding anything herein to the contrary, the tests in Code Section 401(m)(2) shall
be treated as satisfied with respect to such 401(m) Contributions to the Plan, or a portion of the
Plan, if the Plan or such portion is a collectively bargained plan that automatically satisfies
Code Section 410(b), in accordance with Treasury Regulation Sections 1.401(m)-1(b)(2) and
1.410(b)-2(b)(7). If for any Plan Year the Plan fails to satisfy either of the tests set forth in
Code Section 401(m)(2), the Trustee shall be directed by the Committee to distribute to each Highly
Compensated Employee his or her vested portion (and forfeit the nonvested portion) of the excess
aggregate contributions (plus the income or less the losses allocable to such excess aggregate
contributions, as determined in accordance with Code Section 401(m) and applicable Treasury
Regulations) for such Plan Year within 12 months after the last day of such Plan Year. Each Highly
Compensated Employee’s portion of the excess aggregate contributions for a Plan Year shall be
determined under a two-step process. First, the aggregate amount of excess aggregate contributions
shall be calculated. This shall be done by reducing the actual

34

 

contribution percentages of those Highly Compensated Employees with the highest actual contribution
percentages to the extent necessary but not below the next highest level of actual contribution
percentages. This process shall be repeated, to the extent necessary, until the actual
contribution percentage for the group of Highly Compensated Employees satisfies one of the tests
set forth in Code Section 401(m)(2). The aggregate amount of excess aggregate contributions shall
be equal to the sum of all such reductions. Second, the aggregate amount of excess aggregate
contributions to be distributed or forfeited shall be allocated by first reducing any After-Tax
Contributions, and then with respect to any Matching Contributions included as 401(m)
Contributions, made by or on behalf of Highly Compensated Employees with the highest total amount
of 401(m) Contributions to the extent necessary but not below the next highest total amount of
401(m) Contributions. This process shall be repeated, to the extent necessary, until all excess
aggregate contributions to be distributed or forfeited shall be allocated among the Highly
Compensated Employees. The income or loss allocable to a Highly Compensated Employee’s portion of
the excess aggregate contributions will be determined under such reasonable method as the Committee
shall establish, provided the method does not discriminate in favor of Highly Compensated
Employees, is used consistently for all Participants and for all corrective distributions under the
Plan for the Plan Year, and is used by the Plan for allocating income to Participants’ Accounts.

          (c) Election To Make Additional Company Contributions. Notwithstanding the above, in
accordance with Treasury Regulation Section 1.401(m)-2(a)(6), the Company may elect, in lieu of all
or a portion of the distribution described above, to either (i) make an additional qualified
nonelective contribution that, in combination with 401(m) Contributions for the Plan Year,
satisfies the actual contribution percentage test or (ii) recharacterize elective

35

 

contributions as matching contributions. Any such additional qualified nonelective contributions
will be credited to a Participant’s Tax Deferred Account and shall be allocated to each Participant
who is not a Highly Compensated Employee in an amount as determined by the Company and will be
contributed as a percentage of such Participant’s Compensation for the Plan Year.

          (d) Testing Year. The actual contribution percentage of Employees who are not Highly
Compensated Employees shall be determined as of the Plan Year preceding the Plan Year for which the
Plan must satisfy one of the tests in Code Section 401(m)(2). Notwithstanding the preceding, with
respect to the Plan Year beginning on January 1, 2009 only, the actual contribution percentage of
Employees who are not Highly Compensated Employees shall be determined as of the Plan Year for
which the Plan must satisfy one of the tests in Code Section 401(m)(2).

          (e) Definitions. All terms used in this Section 6.04 shall have the meanings given
such terms in Code Sections 401(k) and 401(m) and the regulations thereunder.

          (i) Special Rule For Early Participation. If the Company applies Code Section
410(b)(4)(B) in determining whether the Plan satisfies Code Section 410(b) by excluding from
consideration Eligible Employees who have not met minimum age and service requirements, the
Company may exclude from consideration all Employees who are not Highly Compensated
Employees and who have not met the minimum age and service requirements of Code Section
410(a)(1)(A) for purposes of satisfying the tests in Code Sections 401(k)(3) and 401(m)(2),
as applicable.

          (ii) Highly Compensated Employee In Two Or More Qualified Plans. To the extent
required by the Code and applicable regulations, the actual contribution

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percentage and the actual deferral percentage of a Highly Compensated Employee who is
eligible to participate in two or more qualified plans which have

          (A) cash or deferred arrangements or

          (B) matching contributions or after-tax contributions features maintained by the Company or an Affiliated Company, shall be calculated by treating

          (C) all such cash or deferred arrangements in which the Highly Compensated
Employee is eligible to participate as one cash or deferred arrangement for purposes
of calculating the actual deferral percentage, as applicable, for such Highly
Compensated Employee and

          (D) all such features in which the Highly Compensated Employee is eligible to
participate as one feature for purposes of calculating the actual contribution
percentage for such Highly Compensated Employee.

          (iii) Plan Restructuring. The Plan may be aggregated with another plan or
other plans or disaggregated under Section 1.401(k)-1(b)(4) and Section 1.401(m)-1(b)(4) of
the Treasury Regulations for any Plan Year in order to pass the actual contribution
percentage and actual deferral percentage tests, as applicable, set forth in Sections 6.02
and 6.04.

     6.05. Limitations on Allocations. Notwithstanding anything hereinabove to the contrary,
the “annual additions” credited to the Accounts of any Participant for any Plan Year pursuant to
Section 5.02 (dealing with Tax Deferred Contributions), Section 5.03 (dealing with After-Tax
Contributions), Section 5.04 (dealing with Matching Contributions, including forfeitures), and this
Section 6.05, except to the extent permitted under Section 414(v) of the Code, shall be reduced to
the extent that such amounts would cause the sum of all such

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contributions credited to the Accounts of such Participant under the Plan for such Limitation Year
to exceed the lesser of (i) $49,000 (as adjusted pursuant to Section 415(d) of the Code), or (ii)
one hundred percent (100%) of such Participant’s compensation within the meaning of Code Section
415(c)(3). Compensation within the meaning of Code Section 415(c)(3) shall mean the amount as
defined in Treasury Regulation Section 1.415(c)-2(d)(4) (e.g., amounts reported in Box 1 of Form
W-2, plus amounts that would have been received and includible in gross income but for an election
under Code Section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b)), but not in excess
of $245,000 (as adjusted in accordance with Section 401(a)(17)(B) of the Code) for any Limitation
Year. Such amount shall not include any severance pay, whether paid before or after an Eligible
Employee’s termination of employment. In addition, such amount shall not include other
compensation paid after an individual’s termination of employment. Notwithstanding the preceding
sentence, to the extent that the following amounts are otherwise included in the definition of
compensation and are paid no later than the later of the date which is 21/2 months after termination
of employment or the end of the Limitation Year that includes the date of termination of
employment, such amounts paid after an Eligible Employee’s termination of employment shall be
deemed as such compensation: regular pay, including compensation for services during regular
working hours, overtime, shift differential, commissions, bonuses or other similar payments, and
payment for unused accrued sick, vacation or other leave, but only if the Eligible Employee would
have been able to use the leave if employment had continued. The exclusions described in this
Section 6.05 with respect to post-employment payments shall not apply to payments to an individual
who does not currently perform services for the Company by reason of qualified military service
under Code Section 414(u)(1), to the extent such payments do not exceed the compensation such
individual would

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have received from the Company if he or she had continued to perform services for the Company. The
compensation limit in (ii) shall not apply to any contribution for medical benefits after
separation from service (within the meaning of Section 401(h) or Section 419A(f)(2) of the Code)
which is otherwise treated as an annual addition.

     For purposes of this Section, Limitation Year means the Plan Year.

     Code Section 415 and the regulations thereunder are incorporated herein by reference.
Notwithstanding the foregoing, excess annual additions will be corrected through the Employee Plans
Compliance Resolution System (EPCRS) as outlined under Revenue Procedure 2008-50. The ability to
return excess annual additions under the prior Section 415 regulations shall only be permitted for
limitation years beginning before July 1, 2007.

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ARTICLE VII — PAYMENTS TO OR FOR THE ACCOUNT OF PARTICIPANTS OR TERMINATED PARTICIPANTS

     7.01. Restrictions on Payments and Distributions. No money or other property of the
Trust shall be paid out or distributed by the Trustee except (a) for the purchase or other
acquisition of appropriate investments, (b) for defraying the expenses, including taxes, if any, of
administering the Trust as elsewhere herein provided, (c) for the purpose of making distributions
to or for the account of Participants at the written direction of the Committee in accordance with
the rules set forth below, (d) for the return of Company contributions pursuant to Section 4.05,
(e) for the purpose of complying with the limitations described in Article VI or (f) for the
purpose of complying with the terms of a qualified domestic relations order (as described in
Section 414(p) of the Code). All benefits payable under the Plan shall be paid or provided for
solely from the Trust, and the Company assumes no liability or responsibility therefor.

     7.02. Retirement from Employment. Subject to the provisions of Section 7.07, upon
termination of a Participant’s employment with the Company at or after his Normal Retirement Age,
the Committee shall direct the Trustee to distribute to the Participant the full amount standing to
the credit of such Participant’s Accounts. The Participant shall become fully vested in his
Accounts on the date he attains his Normal Retirement Age.

     7.03. Disability Retirement. If a physician acceptable to the Committee shall certify to
the Committee, on the basis of such medical evidence as it may reasonably require, that a
Participant is totally incapable of performing his assigned duties with the Company and is
therefore unable to continue in the employ of the Company by reason of the sickness or disability
of such Participant which is causing such total incapacity, the Committee shall direct the Trustee
to apply the full amount then standing to the credit of such Participant’s Accounts, exclusive of
any amount in the Accounts used as security for a loan outstanding to the Participant pursuant to

40

 

Section 7.09, for his benefit as provided in Section 7.07. The Committee’s determination as to
whether a Participant has become sick or disabled so as to be unable to continue in the employ of
the Company shall be conclusive and binding on all persons.

     7.04. Death Benefits.

          (a) Upon the death of any Participant who has a surviving spouse, the Committee shall direct
the Trustee to distribute the full amount standing to the credit of such Participant’s Accounts to
the Participant’s surviving spouse, unless the exception provided by paragraph (b) of this Section
7.04 applies.

          (b) The requirement of subsection (a) of this Section 7.04 shall not apply if (i) the
Participant elects to designate a Beneficiary other than his spouse and (A) his spouse consents in
writing or in any other method in accordance with applicable law to such election, (B) such
election designates a Beneficiary which may not be changed without the consent of the spouse (or
the consent of the spouse expressly permits designations by the Participant without any requirement
of further consent by the spouse), and (C) the spouse’s consent acknowledges the effect of such
election and is witnessed by a Plan representative or a notary public, or (ii) if it is established
to the satisfaction of the Committee that the consent of the surviving spouse could not have been
obtained because there is no spouse, because the spouse cannot be located, or because of other
circumstances prescribed by regulations under Section 417(a)(2) of the Code.

     A former spouse shall be treated as a surviving spouse to the extent benefits must be paid to
such former spouse upon the Participant’s death pursuant to a qualified domestic relations order
(as defined in Section 414(p) of the Code), except that no consent shall be required from such
former spouse with respect to the designation of a Beneficiary to receive benefits not subject to
said order.

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          (c) If, and only if, a Participant is permitted under this Section 7.04 to designate a
Beneficiary other than his surviving spouse, then such Participant’s Accounts shall be distributed
in accordance with this subsection (c). Such a Participant shall have the right to designate one
or more Beneficiaries, including contingent Beneficiaries, entitled to receive the amount payable
in behalf of such Participant under the provisions of this Plan in the event of death. Such
designation shall be made in writing in such manner as the Committee shall determine. A
Participant may change such designation from time to time, and may revoke such designation,
provided, however, that any subsequent designation must meet the requirements of this Section 7.04.
Upon the death of any Participant, the Committee shall direct the Trustee to distribute, for the
benefit of such Participant’s Beneficiaries and subject to the provisions of Section 7.07, the full
amount standing to the credit of the Participant’s Accounts. If a Participant dies without having
designated a Beneficiary, or if none of the designated Beneficiaries survives the Participant, or
if the Committee is in doubt as to the effective status of a Beneficiary designation, payment of
any sum that would otherwise have been payable to such Beneficiary will be made to the first
surviving class of the following classes of successive preference Beneficiaries, all members of
each class to share equally: the Participant’s (i) surviving spouse; (ii) surviving issue
(including adopted children and stepchildren) by right of representation; (iii) surviving parents;
(iv) brothers and sisters or their issue by right of representation; and (v) executors and
administrators. If a Beneficiary entitled to receive any amount payable in behalf of a Participant
dies before receiving the entire amount to which such Beneficiary is entitled, the undistributed
balance, together with any income or loss accumulated thereon, shall be distributed to such
Beneficiary’s estate in accordance with Section 7.07.

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     7.05. Termination of Employment Prior to Retirement or Death.

          (a) If any Participant’s employment with the Company and all Affiliated Companies terminates
under circumstances other than by reason of retirement, disability or death, as provided for under
Sections 7.02 through 7.04, he shall be entitled to a vested benefit equal to the sum of (i) 100%
of the amount standing to the credit of his Tax Deferred, Voluntary, Company Account II and
Rollover Accounts, plus (ii) if the Participant has at least three (3) Years of Vesting Service,
100% of the amount standing to his Company Account.

          (b) The determination of the amount to which such terminated Participant is entitled in
accordance with the foregoing rules shall be made by the Committee and communicated to the Trustee.

          (c) Any amount standing to the credit of a Participant’s Company Account to which he is not
entitled at the time of his termination of employment shall be forfeited by him upon the earlier of
(i) the payment of the full amount to which such Participant is entitled under the Plan or (ii)
five (5) consecutive One-Year Breaks in Service by the Participant. For purposes of the preceding
sentence, a terminated Participant who is not entitled to receive any amount under the Plan shall
be deemed to have received the entire amount to which he is entitled on the date his employment
terminates and shall forfeit his entire Company Account as of that date. All such forfeited
amounts shall first be applied as described in Section 7.06(b) and then toward the Matching
Contributions required to be made under Section 4.03 for the first pay period ending after the date
of the forfeiture.

          (d) Effective January 1, 2002, a Participant’s Tax Deferred Contributions, After-Tax
Contributions, catch-up contributions, Matching Contributions, and earnings attributable to these
contributions shall be distributed on account of the Participant’s severance

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from service. However, such a distribution shall be subject to the other provisions of the Plan
regarding distributions, other than provisions that require a separation from service before such
amounts may be distributed.

     7.06. Reemployment. If a terminated Participant is reemployed by the Company, he shall
be eligible to become an active Participant upon reemployment pursuant to Section 3.03.

     If such a reemployed Participant was not 100% vested under Section 7.05(a) at the time of his
prior termination, the following special provisions shall apply:

          (a) If such a terminated Participant is reemployed after five (5) consecutive One-Year Breaks
in Service, he shall have no rights with respect to any amounts previously forfeited from his
Company Account.

          (b) If such a terminated Participant is reemployed before the date described in (a) above, the
full amount, if any, which was forfeited from his Company Account as a result of his prior
termination shall be restored to his Company Account as of the date of reemployment. Such
restoration shall be made first from amounts forfeited pursuant to Section 7.05(c) and then, to the
extent necessary, from a special Company contribution to be made for the purpose of such
restoration.

     7.07. Manner and Timing of Distributions.

          (a) Whenever a Participant’s Accounts become distributable pursuant to the provisions of
Section 7.02, 7.03, 7.04 or 7.05, distribution of said Accounts shall be made by the payment or
commencement of payments of the amount distributable under such one of the following options as the
Participant elects pursuant to paragraph (b) of this Section; subject, however to the requirements
of Section 7.07(d) below; and provided, however, that Option B will only be available to
Participants whose Accounts become distributable pursuant to the

44

 

provisions of Section 7.02 or 7.03 or upon termination of employment after both completing ten (10)
Years of Vesting Service and attaining age fifty-five (55):

Option A: One lump sum payment in cash.

Option B: Payments, in cash, in quarterly installments, over a period of five (5),
ten (10) or fifteen (15) years, the aggregate amount to be paid under this option
having first been segregated into a separate account for such Participant. The amount
of each payment hereunder shall be equal to the total amount in the account remaining
to be distributed under this Option B divided by the number of payments remaining to be
made under this Option B, inclusive of the current payment.

          (b) A Participant who is eligible under subsection (a) above to elect a distribution pursuant
to Option B may elect the form of distribution of his Accounts under either of the options set
forth in subsection (a) above by filing a written election with the Committee within sixty (60)
days of the time his Accounts become payable. In the event that a Participant has not timely filed
such an election, distribution of his Accounts shall be made to such Participant in one lump sum
payment pursuant to Option A. The value of a Participant’s Accounts shall be determined as of the
distribution date.

          (c) Notwithstanding the provisions of paragraph (b) above, the following provisions shall
apply:

          (i) Effective March 28, 2005, if the aggregate benefit payable to a Participant exceeds
$1,000 but is less than or equal to $5,000, if the Participant does not elect to have such
distribution paid directly to an eligible retirement plan specified by the Participant in a
direct rollover in accordance with Section 7.12, or to receive a

45

 

distribution directly in one lump sum payment in cash pursuant to Option A, then the
Committee will pay the distribution in a direct rollover to an individual retirement plan
designated by the Committee. For this purpose, the value of the aggregate benefit payable
to a Participant shall be determined by excluding the portion of the aggregate benefit
payable that is attributable to Rollover Contributions (and earnings allocable thereto)
within the meaning of Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii) and 457(e)(16)
of the Code.

          (ii) Effective March 28, 2005, if the aggregate benefit payable to a Participant does
not exceed $1,000, the Committee shall direct the Trustee to distribute such benefit to the
Participant in one lump sum payment in cash pursuant to Option A. For this purpose, the
value of the aggregate benefit payable to a Participant shall be determined by including the
portion of the aggregate benefit payable that is attributable to Rollover Contributions (and
earnings allocable thereto) within the meaning of Sections 402(c), 403(a)(4), 403(b)(8),
408(d)(3)A)(ii) and 457(e)(16) of the Code.

          (d) Notwithstanding any provision to the contrary, in order to comply with Sections 401(a)(9),
411(a)(11), and 414(p) of the Code, the following provisions shall apply:

          (i) If the sum of a Participant’s aggregate Account balances to be distributed upon
termination of employment is greater than $5,000 (excluding Rollover Contributions and
earnings allocable thereto), such Accounts shall not be distributed in whole or in part
until the Participant’s Required Beginning Date or until the Participant dies, whichever is
earlier, unless the Participant requests such earlier distribution prior to such
distribution date. If the amount standing to the credit of the Participant’s Account

46

 

under the Plan does not exceed $5,000, the Account shall be distributed in accordance with
the provisions of paragraph (c) of this Section.

          (ii) In no event shall distribution of benefits to a Participant be made (or commenced)
later than the April 1 of the calendar year following the calendar year in which such
Participant (A) attains age seventy and one-half (70-1/2), or (B) in the case of a
Participant who is not a “five-percent owner” (within the meaning of Section 416(i)(1)(B)(i)
of the Code), terminates employment with the Company, whichever is later (the Participant’s
“Required Beginning Date”).

          (iii) If a Participant dies before his entire interest has been distributed to him as
provided in this Article VII, his entire interest shall be distributed to his Beneficiary no
later than December 31 of the calendar year containing the fifth anniversary of the
Participant’s death; provided, however, that this requirement shall not apply if
distributions have commenced pursuant to Option B of Section 7.07 in which event
distributions shall continue for the remainder of the period under such option.

          (iv) If, and to the extent, any portion of a Participant’s Accounts is payable to a
former spouse pursuant to a qualified domestic relations order within the meaning of
Sections 401(a)(13)(B) and 414(p) of the Code, the provisions of said order shall govern the
distribution thereof.

          (e) In the case of a distribution to a Participant, the period of years selected under
Option B shall be such that the requirements set forth in both (i) and (ii) below are satisfied at
the time distribution to such Participant is to commence.

          (i) If someone other than the Participant’s spouse is designated as his Beneficiary,
then the period of years over which installment payments are to be paid shall

47

 

be such that any period of years remaining as of the calendar year in which the Participant
attains age seventy and one-half (70-1/2) or any subsequent calendar year shall meet the
minimum distribution incidental benefit requirement which shall be determined in accordance
with regulations promulgated under Section 401(a)(9) of the Code.

          (ii) No form of payment may be elected which would provide for payments to any
Participant during any period longer than the life expectancy of the Participant or the
joint life and last survivor expectancies of the Participant and his Beneficiary,
actuarially determined at the commencement of such payment.

          (f) In no event shall the distribution of a Participant’s Accounts, unless the Participant or
Beneficiary otherwise consents in writing, begin later than the sixtieth (60th) day after the close
of the Plan Year in which the latest of the following events occurs:

          (i) the Participant’s sixty-fifth (65th) birthday;

          (ii) the tenth (10th) anniversary of the date on which the Participant first became a
Participant; or

          (iii) the Participant’s termination of employment with the Company;

provided, notwithstanding any other provision of the Plan,

          (iv) except for benefits payable pursuant to Section 7.07(c) or Article XV, the Company
may require that a Participant file a claim for benefits before benefits will commence; or

          (v) if the amount of the payment required to commence on the date determined under this
Section 7.07(f) cannot be ascertained by such date, or if it is not possible to make such
payment on such date because the Company has been unable to

48

 

locate a Participant after making reasonable efforts to do so, such payment may be postponed
as long as it is made, retroactive to such date, no later than sixty (60) days after the
earliest date on which the amount of such benefit can be ascertained or the date on which
the Participant is located, whichever is applicable.

          (g) All lump sum distributions shall be made in the form of cash, except that effective
October 1, 2011 distributions from the Collective Brands Common Stock Fund shall be made in the
form of full shares of Collective Brands Common Stock, as applicable (with payment in cash for a
fraction of a share) or in cash if elected by the Participant or Beneficiary. The rights extended
to a Participant hereunder shall also apply to any Beneficiary or alternate payee of such
Participant.

     7.08. Withdrawals During Employment.

          (a) Upon proper notice given to the Committee at least thirty (30) days in advance of a
Valuation Date (or such shorter period as the Committee allows), a Participant may at any time
during his employment with the Company withdraw all or any portion of the amount (determined as of
such Valuation Date) standing to the credit of his Voluntary Account and/or Rollover Account,
excluding any outstanding loan amounts with respect to such Accounts. For purposes of this Section
7.08(a), all amounts attributable to After-Tax Contributions made on or after January 1, 1987 shall
be treated as a separate contract for purposes of Section 72 of the Code.

          (b) Upon proper notice given to the Committee at least thirty (30) days (or such shorter
period as the Committee allows) prior to a Valuation Date and if the Participant has withdrawn the
full amount, if any, available for withdrawal from his Voluntary and Rollover Accounts as provided
in subsection (a) above, a Participant who has made either Tax Deferred or

49

 

After-Tax Contributions to the Plan for a period of at least sixty (60) months (whether or not
continuous) may at any time during such Participant’s employment withdraw all or any portion of the
amount (determined as of such Valuation Date) standing to the credit of the Participant’s Company
Account.

          (c) A Participant who has attained age fifty-nine and one-half (59-1/2) shall be entitled to
withdraw all or any portion of his vested Accounts. The amount to be withdrawn for any in-service
withdrawal pursuant to this Section 7.08(c) shall be charged against the Participants’ Accounts in
the following order: his Voluntary Account; his Rollover Account; his vested Company Account; his
Company Account II; his Tax Deferred Account.

          (d) Upon proper notice to the Committee at least thirty (30) days (or such shorter period as
the Committee allows) prior to a Valuation Date, and if the Participant has withdrawn the full
amount, if any, available for withdrawal from his Voluntary, Rollover and Company Accounts as
provided in subsections (a) and (b) above, the Participant may at any time during his employment
with the Company withdraw all or any portion of the vested amount (determined as of such Valuation
Date) standing to the credit of his Tax Deferred and Company Accounts, excluding any outstanding
loan amounts with respect to such Accounts, but only in order to meet a “Financial Hardship;”
provided, however, that any amount in a Participant’s Tax Deferred Account in excess of the sum of
his Tax Deferred Contributions and the earnings credited to his Tax Deferred Account as of
December 31, 1988 (to the extent such contributions and earnings have not been previously
withdrawn) shall not be available for withdrawal. The determination that the Participant is faced
with a Financial Hardship and of the amount required to meet such Financial Hardship which is not
reasonably available from other resources of the Participant shall be made by the Committee in
accordance with uniform and non-discriminatory

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standards and policies which shall be adopted by the Committee and consistently applied to each
application for a withdrawal pursuant to this Section 7.08(d). For purposes of this Section
7.08(c), “Financial Hardship” shall mean an immediate and heavy financial need which such
Participant is not able to meet from any other reasonably available resources. In determining that
such Participant is not able to meet such Financial Hardship from any other sources, the Committee
may reasonably rely upon the written certification of the Participant given in accordance with the
regulations under Section 401(k). Subject to the foregoing and the requirements of Section 401(k)
of the Code and any regulations thereunder, the term “Financial Hardship” shall mean and include
the following:

          (i) the purchase (excluding mortgage payments) of a principal residence of the
Participant;

          (ii) the payment of tuition, related educational fees, and room and board expenses, for
up to the next 12 months of post-secondary education for the Participant, his spouse,
children or dependents (as defined below); or

          (iii) medical expenses described in Section 213(d) of the Code which are incurred by
the Participant, his spouse or any dependent (as defined in Section 152 of the Code, without
regard to Section 152(b)(1), (b)(2) and (d)(1)(B)), and which are not covered by insurance;
or

          (iv) the need to prevent an eviction or mortgage foreclosure on the Participant’s
principal residence; or

          (v) the payment for burial or funeral expenses for the Participant’s deceased parent,
spouse, children or dependents (as defined in Section 152 of the Code, without regard to
Section 152(d)(1)(B)); or

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          (vi) the payment of expenses for the repair of damage to the Participant’s principal
residence that would qualify for the casualty deduction under Section 162 of the Code
(determined without regard to whether the loss exceeds any applicable threshold amount of
adjusted gross income).

     No more than one withdrawal may be made pursuant to this Section 7.08(d) within any Plan Year,
provided, however, that up to four withdrawals may be made in a twelve-month period if each is
determined by the Committee to be in respect of a “Financial Hardship” described in (ii) above.
Any withdrawal made pursuant to this Section 7.08(d) shall be charged against a Participant’s
Accounts in the following order: his Tax Deferred Account; his Company Account.

     The amount of any withdrawal made pursuant to this Section 7.08(d) shall include any amounts
necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to
result from the distribution.

          (e) Subject to such restrictions as may be applicable to the particular Investment Funds, in
the event of an in-service withdrawal of less than the entire balance in a Participant’s Account,
amounts shall be withdrawn from the Investment Funds pro rata in proportion to the interest of such
Account in each Investment Fund. In the case the Participant is subject to Section 16 of the
Securities Exchange Act of 1934 or has been designated as a “Designated Insider,” such
Participant’s withdrawal will be taken first from such Participant ‘s Investment Funds other than
the Collective Brands Common Stock Fund.

          (f) All withdrawals under this Section 7.08 shall be made as soon as practicable after the
Valuation Date next following timely receipt by the Committee of the Participant’s written notice.
No more than one withdrawal may be made pursuant to Sections

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7.08(a), (b) and (c) within any Plan Year. No withdrawal shall be made pursuant to this Section
7.08 for less than the lesser of (i) $500 or (ii) the maximum amount available for withdrawal.

     7.09. Loans to Participants. Upon proper application of a Participant submitted to the
Committee at least thirty (30) days (or such shorter period as the Committee allows) prior to a
Valuation Date, the Committee may direct the Trustee to lend to such Participant such amount or
amounts from his Accounts, up to the total aggregate value of such Accounts as of such Valuation
Date, as the Committee may determine proper, provided that the aggregate amount of all outstanding
loans, including accrued interest, from the Plan and any other qualified plan maintained by the
Company or an Affiliated Company to a Participant shall not exceed the lesser of:

          (i) $50,000, reduced by the excess, if any, of the highest outstanding balance of any
other loan to the Participant from the Plan or any other plan maintained by the Company
during the preceding 12-month period over the outstanding balance of such loans on the date
on which such loan is to be made; or

          (ii) fifty percent (50%) of the total aggregate value of the vested amount of said
Participant’s Accounts under the Plan and all other plans maintained by an Affiliated
Company.

Notwithstanding the foregoing, the minimum amount which may be loaned to a Participant under this
Section 7.09 shall be $500, and a Participant may not have more than one loan outstanding under
this Section 7.09 at any given time. A Participant’s Accounts may be charged with a reasonable
loan administrative fee.

     Loans shall be made available to all Participants on a reasonably equivalent basis, except
that the Committee may make reasonable distinctions based upon credit-worthiness, other

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obligations of the Participant and other factors that may adversely affect the ability to assure
repayment. The decision as to whether a loan shall or shall not be made in any case shall rest
solely within the discretion of the Committee, such discretion to be exercised consistently with
the provisions of Section 9.05 and with such procedures as the Committee may establish pursuant to
this Section 7.09. Loans approved under this Section 7.09 shall be made as soon as reasonably
practicable after the Valuation Date next following timely receipt by the Committee of the
Participant’s written application.

     Each such loan shall be made at such reasonable rate of interest as the Committee may
determine, shall be subject to such other terms and conditions as the Committee may deem proper,
and shall be evidenced by the promissory note of the Participant and secured by fifty percent (50%)
of the Participant’s vested interest in the Plan. Each such loan shall be repaid by payroll
deduction (unless prohibited by applicable state law) or by such other means as may be authorized
by the Committee, shall be amortized over the term of the loan in level payments made not less
frequently than quarterly, and shall be repaid within five (5) years unless such loan is used to
acquire a dwelling unit which within a reasonable period of time is to be used (determined at the
time the loan is made) as the principal residence of the Participant in which case the repayment
period shall not exceed twenty (20) years. Notwithstanding the foregoing, a Participant may prepay
the entire outstanding balance of a loan as of the last day of any calendar month.

     Each such loan shall be deemed to be an investment made at the direction of such Participant
and shall be credited to a separate investment Account for the borrowing Participant. The amount
of the loan shall be charged against the Participant’s Accounts in the following

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order: his Tax Deferred Account; his Rollover Account; his Company Account; his Voluntary Account.

     Subject to such restrictions as may be applicable to the particular Investment Funds, in the
event of a loan of less than the entire balance of a Participant’s Account, the loan amounts shall
be withdrawn from the Investment Funds pro rata in proportion to the interest of such Account in
each of such Investment Funds. In the case the Participant is subject to Section 16 of the
Securities Exchange Act of 1934 or has been designated as a “Designated Insider,” such
Participant’s loan will be taken first from such Participant’s Investment Funds other than the
Collective Brands Common Stock Fund. All interest and loan repayments shall be credited to the
appropriate Accounts of such Participant and shall be reinvested in the Investment Funds in
accordance with the most recent investment election of such Participant with respect to
contributions credited to such Accounts. All expenses incurred by the Committee and the Trustee,
including reasonable attorneys’ fees and court costs, as a result of a default by a Participant
shall be charged against the Participant’s Accounts.

     If any loan under this Section 7.09 is in default, as determined in accordance with the
procedures established by the Committee, when any part or all of the amount standing to the credit
of a Participant’s Accounts is to be distributed to such Participant or his Beneficiary, the
Committee shall direct the Trustee to apply the amount of such distribution in payment of the
entire outstanding loan principal, whether or not then due, and any interest theretofore accrued,
before distributing the balance, if any, to the Participant or his Beneficiary.

     7.10. Payments to Incompetents. If any person entitled to receive any benefits hereunder
is a minor, or is in the judgment of the Committee, legally, physically, or mentally incapable of
personally receiving and receipting for any distribution, the Committee may instruct

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the Trustee to make distribution to such other person, persons or institutions who, in the judgment
of the Committee, are then maintaining or have custody of such distributee. As a condition to the
issuance of such instruction for the distribution to such other person or institution, the
Committee may require such person or institution to exhibit or to secure an order, decree or
judgment of a court of competent jurisdiction with respect to the incapacity of the person who
would otherwise be entitled to receive the benefits.

     7.11. Discharge of Obligation to Make Payments. Whenever the Trustee is required to make
any payment or payments to any person in accordance with the provisions of this Article VII or
Article VIII, the Committee shall notify the Trustee in writing of such person’s last known address
as it appears in the Committee’s records; and the obligations of the Trustee and the Committee to
make such payment or payments shall be fully discharged by mailing the same to the address
specified by the Committee.

     7.12. Direct Rollovers. Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a distributee’s election under this Section, a distributee may elect, at the
time and in the manner prescribed by the Committee, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the distributee in a direct
rollover.

     Definitions. Whenever used in this Section, the following words shall have the
following meanings:

          (a) Eligible rollover distribution: Eligible rollover distribution shall have the
meaning prescribed by Section 402(f) of the Code. For purposes of this Section 7.12 of the Plan,
any amount that is distributed on account of hardship shall not be an “eligible rollover

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distribution” and the distributee may not elect to have any portion of such a distribution paid
directly to an “eligible retirement plan.”

     A portion of a distribution shall not fail to be an eligible rollover distribution merely
because the portion consists of after-tax employee contributions which are not includible in gross
income. However, such portion may be transferred only to (i) an individual retirement account or
annuity described in Sections 408(a) or (b) of the Code; or (ii) a qualified trust or to an annuity
contract described in Code Section 403(b), if such trust or contract provides for separate
accounting for amounts so transferred (including interest thereon), including separately accounting
for the portion of such distribution which is includible in gross income and the portion of such
distribution which is not so includible.

          (b) Eligible retirement plan: Eligible retirement plan shall have the meaning
prescribed by Section 402(f) of the Code. For purposes of this Section 7.12 of the Plan, an
“eligible retirement plan” shall also mean an annuity contract described in Section 403(b) of the
Code and an eligible plan under Section 457(b) of the Code which is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for amounts transferred into such
plan from this Plan. The definition of “eligible retirement plan” shall also apply in the case of
a distribution to a surviving spouse or to a spouse or former spouse who is the alternate payee
under a qualified domestic relations order, as defined in Section 414(p) of the Code. Effective on
and after January 1, 2008, “an eligible retirement plan” shall also mean, to the extent permitted
by Section 408A of the Code, a Roth IRA described in such Section.

          (c) Distributee: A distributee includes an employee or former employee. In addition,
the employee’s or former employee’s surviving spouse and the employee’s or former

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employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations
order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of
the spouse or former spouse. Moreover, effective January 1, 2010, a designated non-spouse
beneficiary may be a distributee, but only with respect to an eligible retirement plan that is an
individual retirement account or annuity described in Section 408(a) or (b) of the Code or to a
Roth IRA described in Section 408A of the Code.

          (d) Direct rollover: A direct rollover is a payment by the Plan to the eligible
retirement plan specified by the distributee.

     Notwithstanding the foregoing, a distribution may commence less than 30 days after the notice
required under Section 1.411(a)-11(c) of the Income Tax Regulations and the notice described in
Section 7.14 are given to a Participant, provided that:

          (a) the Committee clearly informs the Participant that the Participant has a right to a period
of at least 30 days after receiving the notices to consider the decision of whether or not to elect
a distribution (and, if applicable, a particular distribution Option) and whether or not to elect a
direct rollover, and

          (b) the Participant, after receiving the notices, affirmatively elects a distribution before
the 30 day period has elapsed.

     7.13. Notification Of Eligibility To Receive And Consent To Vested Benefits.

          (a) Notice. In the event that the aggregate vested Account balance of a Participant
to be distributed pursuant to Section 7.03 or 7.05 exceeds $5,000 (excluding Rollover Contributions
and earnings thereon), such Participant shall receive from the Company, during the period beginning
not more than 180 days before the Valuation Date as of which distribution is made, a written
notification. The notification shall disclose:

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          (i) the material features and the relative values of his or her benefits under the
optional forms of benefit available under the Plan;

          (ii) the value of his or her benefits under the Plan; and

          (iii) his or her right to defer receipt of vested benefits.

          (b) Consent. The Participant’s consent to the distribution of the vested portion of
his or her Accounts must be:

          (i) in writing;

          (ii) made after the Participant receives the written notice described in the preceding
sentence; and

          (iii) made within 180 days before the Valuation Date as of which distribution to the
Participant is to be made.

     7.14. Written Explanation Of Rollover Treatment. The Company shall, when making an
eligible rollover distribution, provide a written explanation to the recipient of such distribution
of his or her right to roll over such distribution to an eligible retirement plan and, if
applicable, his or her right to the special ten year averaging and capital gains tax treatment in
the Code. Such written explanation will be provided to the recipient in accordance with rules
prescribed by the Internal Revenue Service.

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ARTICLE VIII — AMENDMENT AND TERMINATION

     8.01. Right to Amend or Terminate. The Company reserves the right at any time and from
time to time to amend this Plan, or discontinue or terminate the Plan by delivering to the
Committee and the Trustee a copy of an amendment or appropriate Board of Directors’ resolution of
discontinuance or termination certified by an officer of the Company; provided, however, that
except as provided in Section 8.02, the Company shall have no power to amend or terminate this Plan
in such manner as would cause or permit (a) any of the Trust assets to be diverted to purposes
other than for the exclusive benefit of the Employees of the Company or their Beneficiaries; (b)
any reduction in the amount theretofore credited to any Participant; (c) any portion of the Trust
assets to revert to or become the property of the Company; (d) the rights and responsibilities of
the Committee or the Trustee to be increased without their written consent, and/or (e) the
elimination of an optional form of benefit with respect to amounts credited to a Participant’s
Accounts before the amendment unless such elimination is permitted pursuant to the regulations
under Code Section 411(d)(6). Notwithstanding the foregoing, subject to Sections 9.04, 9.05, 9.06
and 9.07, the Company hereby delegates to the Committee the power to amend Appendix A of the Plan.

     8.02. Amendment for Tax Exemption. The Company reserves the right to amend this Plan and
the Trust in such manner as may be necessary or advisable so that said Trust may continue to
qualify as an exempt employees’ trust under the provisions of the Code as now in force or as it may
hereafter be changed or amended; and any such amendment may be made retroactively.

     8.03. Liquidation of Trust in Event of Termination. In the event of termination or
partial termination (within the meaning of Section 411(d)(3) of the Code) of this Plan and the
Trust, or complete discontinuance of contributions thereto by the Company, the rights of all

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Participants (or in the case of a partial termination, the rights of Participants affected thereby)
to amounts theretofore credited to all their Accounts shall be fully vested and nonforfeitable. In
the event of such termination or discontinuance, the Trustee shall, subject to the direction of the
Committee, hold the assets of the Trust in accordance with the provisions of the Plan and
distribute such assets from time to time to Participants entitled thereto in accordance with such
provisions.

     8.04. Termination of Plan and Trust. This Plan and the Trust shall in any event
terminate whenever all property held by the Trustee shall have been distributed in accordance with
the terms hereof.

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ARTICLE IX — ADMINISTRATION OF THE PLAN

     9.01. Named Fiduciaries. The named fiduciaries with respect to the Plan shall be the
Company, the Committee and the Trustee. The Company shall be the “plan administrator” of the Plan
for all purposes of ERISA. The responsibilities of the named fiduciaries shall be allocated as
provided herein, and each such fiduciary shall have only those responsibilities and obligations
that are specifically imposed upon it by this Trust Agreement or by applicable law. It is intended
that each of the named fiduciaries shall be responsible for the proper exercise of its own powers,
duties, responsibilities, and obligations under the Plan and shall not be responsible for any act
or omission of any other fiduciary. The Company and the Committee, as named fiduciaries, shall be
entitled to delegate all or any part of their fiduciary responsibilities, and obligations to any
other person or entity. In the event of any such delegation, (a) the named fiduciary shall not be
liable for any act or omission of the person to whom the responsibility has been delegated as long
as the selection and retention of such person is prudent and (b) the person to whom the fiduciary
powers and obligations are delegated shall be responsible only for the proper exercise of the
powers, duties, responsibilities, and obligations that have been specifically delegated to him.
The responsibilities of the named fiduciaries are:

          (i) The Company shall have the sole responsibility to appoint and remove (in accordance
with the Trust Agreement) the Trustee and successor Trustee, to appoint and remove or
replace the members of the Committee as herein provided, and shall have such other powers
and do such other things as are herein specifically provided.

          (ii) The Trustee shall, except as otherwise specifically provided in this Agreement,
have the sole responsibility for the investment and control of the assets of the Plan and
Trust in accordance with the terms hereof.

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          (iii) The Committee shall have the sole responsibility for the general administration
of the Plan and for carrying out its provisions. In addition, the Committee shall have such
powers and responsibilities as are herein specifically provided.

The Committee shall conduct its business in accordance with the terms of this Article IX.

     9.02. Appointment of Committee. The Company shall appoint a Committee of three or more
persons, any or all of whom may be officers or employees of the Company or any other individuals,
to be known as the “Collective Brands Retirement & Investment Committee.” The members of the
Committee shall serve at the pleasure of and may be removed by the Company. Vacancies in the
Committee arising by resignation, death, removal, or otherwise shall be filled by the Company. The
number of members of the Committee shall be as designated by the Company from time to time. The
Trustee shall accept and may rely upon a certification by the Company as to the number and identity
of the individuals comprising the Committee from time to time.

     9.03. Powers of Committee. The Committee shall have all the discretionary powers and
authority necessary in order to carry out its duties and responsibilities in connection with the
administration of the Plan and, subject to the Trust Agreement, the Trust as herein provided, and
the Committee may make such rules and regulations as it may deem necessary or desirable to carry
out the provisions of the Plan and, subject to the Trust Agreement, the Trust. The Committee shall
determine any question arising in the administration, interpretation, and application of the Plan
and Trust, including any question submitted by the Trustee on a matter necessary for them properly
to discharge their duties, and including without limitation all questions concerning eligibility,
elections, contributions, designation and benefits under the Plan. The Committee shall construe
all terms of the Plan, including any uncertain terms, and shall

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make all factual determinations and determine all questions concerning administration of the Plan.
The decision of the Committee shall be conclusive and binding on all persons. The Committee may
make any corrections necessary under the Plan to retain the qualified status of the Plan under
Section 401(a) of the Code. Such corrections shall include, but are not limited to, any
corrections described in the Internal Revenue Service’s Employee Plans Compliance Resolution System
and any similar program. Any determination made by the Committee under the Plan or in connection
with the administration or interpretation shall be given deference in the event it is subject to
judicial review and shall be overturned only if it is arbitrary and capricious.

     9.04. Action by Committee. The Committee shall act by a majority of its members at the
time in office and such action may be taken by vote at a meeting or in writing without a meeting.
The Committee may by such majority action authorize any one or more of its members to execute any
direction or document or take any other action on behalf of the Committee, and in such event any
one of the members of the Committee may certify in writing to the Trustee or any other person the
taking of such action and the name or names of the members of the Committee so authorized,
including himself. The execution of any direction, document, or certificate on behalf of the
Committee by any of its members shall constitute his certification of his authority with respect
thereto, and the Trustee or other person shall be protected in accepting and relying upon any such
direction, document, or certificate and is released from inquiry into the authority of any of the
members of the Committee. Notwithstanding anything to the contrary elsewhere herein, no member of
the Committee shall take any action as a member of the Committee with respect to any matter
concerning himself as a Participant of the Plan.

     9.05. Discretionary Action. Wherever under the provisions of this Agreement the
Committee is given any discretionary power or authority, such power or authority shall not be

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exercised in such manner as to cause any discrimination in favor of or against any Employee or
class of Employees.

     9.06. Evidence on Which Committee May Act. In taking any action or determining any fact
or question which may arise under this Plan and Trust, the Committee may, with respect to the
affairs of the Company or its Employees, rely upon any statement by the Company with respect
thereto. In the event that any dispute may arise regarding the payment of any sums or regarding
any act to be performed by the Committee or the Trustee, the Committee may in its sole discretion
direct that such payment be retained or postpone or direct the postponement of the performance of
such act until actual adjudication of such dispute shall have been made in a court of competent
jurisdiction, or until the Company, the Committee, and/or the Trustee shall have been indemnified
against loss to the satisfaction of the Committee; provided, however, that in the event of any such
dispute, the Committee may rely upon and act in accordance with any directions received from the
Company.

     9.07. Employment of Agents. The Committee may employ agents, including, but not limited
to, custodians, accountants, consultants, or attorneys, to exercise and perform such of the powers
and duties of the Committee hereunder as the Committee may delegate to them, and otherwise to
render such services to the Committee as the Committee may determine, and the Committee may enter
into agreements setting forth the terms and conditions of such service. The Committee may appoint
an independent public accountant to audit the Plan. The compensation of such agents shall be an
expense chargeable in accordance with Section 9.08. The Committee shall be fully protected in
delegating any such power or duty to or in acting upon the advice of any such agent, in whole or in
part, and except as may be required by Federal law, shall not be

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liable for any act or omission of any such agent, the Committee’s only duty being to use reasonable
care in the selection and retention of any such agent.

     9.08. Compensation and Expense of Committee. The members of the Committee shall serve
without compensation for services as such. The reasonable expenses of the Committee shall be paid
by the Trust; provided, the Company in its sole discretion may elect to pay any of such expenses.
To the extent any expenses which are paid out of the Trust are properly allocable to an Investment
Fund, they shall be so allocated and charged. Such expenses shall include any expenses incident to
the functioning of the Trust, including, but not limited to, attorneys’ fees and the compensation
of other agents, accounting and clerical charges, expenses, if any, of being bonded as required by
ERISA, recordkeeping fees, consultants’ fees, Plan investment costs and other costs of
administering the Trust.

     9.09. Indemnification of Committee Members. The Company shall indemnify and hold
harmless each member of the Committee from and against any and all claims, losses, damages,
expenses (including reasonable attorneys’ fees approved by the Company), and liability (including
any reasonable amounts paid in settlement with the Company’s approval), arising from any act or
omission of such member, except when the same is judicially determined to be due to the willful
misconduct of such member.

     9.10. Review of Domestic Relations Orders. The Committee shall determine whether any
domestic relations order received by the Plan is “qualified” within the meaning of Section 414(p)
of the Code. Upon receipt of a domestic relations order, the Committee (a) shall promptly notify
the Participant and each alternate payee under said order of the receipt by the Committee of said
order and its procedures for determining the qualified status of said order, and (b) shall direct
the Trustee to separately account for any amounts payable to an alternate payee

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pursuant to said order. Within a reasonable time thereafter, the Committee shall determine whether
such order is a qualified domestic relations order and shall notify the Participant and each
alternate payee of such determination.

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ARTICLE X — TRUST FUND

     10.01. Trust Agreement. The Company shall enter into a Trust Agreement with such Trustee
as it may determine, creating a Trust for the purpose of providing benefits under the Plan, in such
form and containing such provisions as the Company may deem appropriate. All contributions made by
the Company under the Plan shall be held, managed and invested by the Trustee in accordance with
the provisions of the Trust Agreement for the purposes contemplated by the Plan.

     10.02. Combined Trust. The Trust established pursuant to Section 10.01 may be utilized
for the purpose of providing benefits under one or more other qualified plans maintained by the
Company, and all references to the Trust under this Agreement shall refer to the portion of such
combined Trust consisting of the assets of this Plan. In such event, the Trustee shall maintain
adequate records to establish at all times the equitable share of the assets of the combined Trust
allocable to this Plan. Such assets shall be used solely to provide benefits under, and expenses
and other charges properly allocable to the Plan, and shall not be used for the payment of benefits
under, or expenses or other charges properly allocable to, any other plan.

     10.03. Transfer from Other Plans. With the approval of the Trustee, the Company may have
assets of any other plan maintained by it or another employer which satisfies the requirements of
Section 401(a) of the Code transferred to the Trust and consolidated with assets of this Plan. Any
such transfer shall be accompanied by the transfer of such existing records and information as
determined by the Trustee to be necessary for the proper administration of the Plan.

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ARTICLE XI — THE COMPANY

     11.01. No Contract of Employment. Neither this Plan nor the Trust shall be construed as
creating any contract of employment between the Company and any Participant, Employee, or other
person, and nothing herein contained shall give any person the right to be retained in the employ
of the Company or otherwise restrain the Company’s right to deal with its employees, including
Participants and Employees, and their hiring, discharge, layoff, compensation, and all other
conditions of employment in all respects as though this Trust did not exist.

     11.02. No Contract to Maintain Plan. The Company by the creation of the Plan does not
enter into any agreement to maintain the Plan or to make any future contributions thereto or
reimbursement of expenses incurred hereunder. Each contribution by the Company shall be voluntary,
and the Company reserves the right to suspend payment of its contributions hereunder, and no party
hereto or Participant or any other person shall have any cause or right of action against the
Company by reason of any failure by the Company to make contributions to the Trust, or by reason of
any action by the Company in terminating the Plan and Trust.

     11.03. Liability of the Company. Subject to its agreement to indemnify the members of
the Committee as provided in Section 9.09, neither the Company nor any person acting in behalf of
the Company shall be liable for any act or omission on the part of any member of the Committee, or
on the part of the Trustee, or for any act performed or the failure to perform any act by any
person with respect to the Plan, or the Trust, the Company’s only duty being to use reasonable care
in the selection and retention of the Trustee and the members of the Committee.

     11.04. Action by the Company. Whenever under the terms of this Plan the Company is
permitted or required to take any action, such action shall be taken by the Board of Directors, or
any duly authorized committee thereof, or by any officer of the Company thereunto duly authorized,
by the Board of Directors or otherwise. In such event, any such officer may certify

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to the Committee or the Trustee or any other person the taking of such action and the name or names
of the officers so authorized, including himself or herself. The execution of any direction,
document, or certificate on behalf of the Company by any of its officers shall constitute a
certification of the authority of such officer with respect thereto, and the Committee, the
Trustee, or other person shall be protected in accepting and relying upon any such direction,
document, or certificate and are released from inquiry into the authority of any officer of the
Company.

     11.05. Successor to Business of the Company. Unless this Plan and the Trust be sooner
terminated, a successor to the business of the Company, by whatever form or manner resulting, may
continue the Plan and Trust by executing an appropriate supplementary agreement and such successor
shall ipso facto succeed to all the rights, powers, and duties of the Company
hereunder. The employment of any Employee who has continued in the employ of such successor shall
not be deemed to have been terminated or severed for any purposes hereunder.

     11.06. Dissolution of the Company. If the Company is dissolved by reason of bankruptcy
or insolvency or otherwise, without any provision being made for the continuation of this Plan and
the Trust by a successor to the business of the Company, the Plan and the Trust shall terminate,
and the Trustee shall proceed in the same manner as though the Plan and the Trust were being
terminated by the Company as provided in Section 8.03.

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ARTICLE XII — ADDITIONAL PARTICIPATING COMPANIES

     12.01. Participation. Any subsidiary or affiliate of the Company may, with the consent
of the Company, become a participating employer by action of the board of directors of such
subsidiary or affiliate adopting the Plan and Trust Agreement as a Plan and Trust Agreement for the
benefit of its employees. Any such additional participating employer is hereinafter referred to in
this Article XII as a “Participating Subsidiary.”

     12.02. Effective Date. The participation of any Participating Subsidiary shall take
effect as of the date of its action to adopt the Plan and Trust Agreement or such other date as it
may specify with the Company’s approval.

     12.03. Administration. Each Participating Subsidiary shall be deemed the “Company” and
shall have and exercise all the rights, powers, and duties thereof with respect to the Plan as
applied to itself and its employees and that part of the Trust which represents Accounts of
Participants employed by it. Subject to Section 12.04, each Participating Subsidiary hereby
authorizes The Stride Rite Corporation to exercise on its behalf all such rights, powers, and
duties, including amendment or termination of the Plan, appointment of the Trustee and the members
of the Committee, and serving as the “plan administrator” of the Plan for purposes of ERISA. Each
participating employer, including the Company and each Participating Subsidiary, shall make
contributions hereunder on behalf of its employees in accordance with Article IV.

     12.04. Termination. If the Plan shall be terminated by any one Participating Subsidiary,
the Trust shall be valued and the Accounts of all Participants adjusted pursuant to Section 5.06
and assets representing the Accounts of all Participants employed by such Participating Subsidiary
shall be segregated into a separate trust and held subject to the provisions of the Plan, and all
rights, powers, and duties of the Company with respect to such separate trust shall be exercised by
such Participating Subsidiary.

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ARTICLE XIII — TOP-HEAVY PROVISIONS

     13.01. General Rule. For any Plan Year for which this Plan is a “top-heavy plan” as
defined in Section 13.03 below, any other provisions of this Plan to the contrary notwithstanding,
this Plan shall be subject to the minimum contribution provisions set by Section 13.02.

     13.02. Minimum Contribution Provisions. Each Participant who is a non-key employee (as
defined in Section 13.06 below) and who is an Employee as of the last day of such Plan Year shall
be entitled to a minimum contribution equal to the lesser of (a) three percent (3%) of such
Participant’s compensation for such Plan Year, or (b) the percentage at which contributions are
made for the key employee (as defined in Section 13.05 below) for whom such percentage is the
highest for such Plan Year; provided, if such Participant is also a non-key employee covered under
a top-heavy defined benefit plan maintained by the Company or an Affiliated Company, such
Participant shall be entitled to a minimum benefit under such defined benefit plan instead of the
minimum contribution described in this Section 13.02. For purposes of this Section 13.02,
“compensation” shall be determined within the meaning of Section 415 of the Code as described in
Section 6.05; provided, however, compensation means compensation during the Plan Year or such other
consecutive 12-month period over which compensation is otherwise determined under the Plan (the
determination period). Effective for purposes of determining whether the Plan satisfies the
minimum benefit requirements of Section 416(c) of the Code for Plan Years beginning after
December 31, 2001 in which the Plan is determined to be top-heavy, additional Matching
Contributions shall be taken into account for purposes of satisfying the minimum contribution
requirements of Section 416(c)(2) of the Code and the Plan. The preceding sentence shall apply
with respect to additional Matching Contributions under the Plan or, if the Plan provides that the
minimum contribution requirement shall be met in another plan, such other plan. Additional
Matching Contributions that are used to satisfy the minimum contribution

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requirements shall be
treated as matching contributions for purposes of the actual contribution percentage test and other
requirements of Section 401(m) of the Code.

     13.03. Top-Heavy Plan Definition. This Plan shall be a “top-heavy plan” for any Plan
Year if, as of the determination date (as defined in Section 13.03(a) below), the sum of all
Accounts under the Plan for Participants (including former Participants) who are Key Employees (as
defined in Section 13.05 below) exceeds sixty percent (60%) of the sum of all Accounts under the
Plan for all Participants (excluding the Accounts of Former Key Employees) unless the Plan is part
of an aggregation group or if this Plan is part of an aggregation group (as defined in Section
13.03(b) below) which for such Plan Year is a “top-heavy group” (as defined in Section 13.03(c)
below). Solely for purposes of this Section 13.03, a Participant’s Account shall include any
distribution made in the five (5) year period (one (1) year period effective January 1, 2002)
ending on the determination date, and any contribution due but unpaid as of the determination date.

          (a) “Determination date” means for any Plan Year the last day of the immediately preceding
Plan Year; provided, the determination date for the first Plan Year shall be the last day of such
first Plan Year. If two or more plans are being aggregated, they shall be aggregated by adding
together the results for each plan as of the determination dates for such plans that fall within
the same calendar year.

          (b) “Aggregation group” means the group of plans, if any, that includes the group of plans
that are required to be aggregated and, if the Committee so elects, the group of plans that are
permitted to be aggregated.

          (i) The group of plans that are required to be aggregated (the “required aggregation
group”) includes:

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          (A) each plan (including any terminated plan maintained within the five (5)
year period (one (1) year period effective January 1, 2002) ending on the
determination date) of the Company and of any Affiliated Company in which a Key
Employee is a member, and

          (B) each other plan (including any terminated plan maintained within the five
(5) year period (one (1) year period effective January 1, 2002) ending on the
determination date) of the Company and any Affiliated Company which enables a plan
in which a Key Employee is a member to meet the requirements of either Section
401(a)(4) or Section 410 of the Code.

          (ii) The plans that are permitted to be aggregated (the “permissive aggregation group”)
include any plan that is not part of the “required aggregation group” that the Committee
certifies as constituting a plan within the “permissive aggregation group.” Such plans may
be added to the “permissive aggregation group” only if, after the addition, the “aggregation
group” as a whole continues to meet the requirements of both Section 401(a)(4) and Section
410 of the Code.

          (c) “Top-heavy group” means the “aggregation group” if, as of the applicable determination
date, the sum of the present value of the accrued benefits for Key Employees under all defined
benefit plans included in the “aggregation group” plus the aggregate of the Accounts of Key
Employees under all defined contribution plans included in the “aggregation group” exceeds sixty
percent (60%) of the sum of the present value of the accrued benefits for all Key Employees and
Non-Key Employees under all such defined benefit plans plus the aggregate Accounts for all Key
Employees and Non-Key Employees under such defined contribution plans. Solely for purposes of this
subsection (c), the accrued benefits of Non-Key Employees

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shall be determined under (i) the method, if any, that uniformly applies for accrual purposes under
all defined benefit plans maintained by the Company and any Affiliated Company, or (ii) if there is
no such method, as if such benefit accrued not more rapidly than the slowest accrual rate permitted
under Section 411(b)(1)(C) of the Code.

     For purposes of determining whether the Plan is a top-heavy plan under Section 416(g) of the
Code for Plan Years beginning after December 31, 2001, the present values of accrued benefits and
the amounts of account balances of a Participant as of the determination date shall be increased by
the distributions made with respect to the Participant under the Plan and any plan aggregated with
the Plan under Section 416(g)(2) of the Code during the one year period ending on the determination
date. The preceding sentence shall also apply to distributions under a terminated plan which, had
it not been terminated, would have been aggregated with the Plan under Section 416(g)(2)(A)(i) of
the Code. In the case of a distribution made for a reason other than severance from employment,
death, or disability, this provision shall be applied by substituting “five (5) year period” for
“one year period.” The accrued benefits and accounts of any individual who has not performed
services for the employer during the one year period ending on the determination date shall not be
taken into account.

          (d) In determining whether this Plan constitutes a “top-heavy plan,” the Committee shall
follow the rules set forth in Section 416 of the Code and regulations pertaining thereto.

     13.04. Former Key Employee. The term “Former Key Employee” means any person presently or
formerly employed by an Affiliated Company (and the Beneficiaries of such person) who during the
Plan Year is not classified as a Key Employee but who was classified as a Key Employee in a
previous Plan Year; provided, however, that a person who has not performed any

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services for an Affiliated Company at any time during the one-year period ending on the
determination date (and the Beneficiaries of any such person) shall not be considered a Former Key
Employee.

     13.05. Key Employee. The term “Key Employee” means any person presently or formerly
employed by an Affiliated Company (and the Beneficiaries of such person) who is a “key employee” as
that term is defined in Section 416(i) of the Code and the regulations thereunder; provided,
however, that a person who has not performed any services for an Affiliated Company at any time
during the one-year period ending on the determination date (and the Beneficiaries of any such
person) shall not be considered a Key Employee.

     13.06. Non-Key Employee. The term “Non-Key Employee” means any person presently or
formerly employed by an Affiliated Company (and the Beneficiaries of such person) who is not a Key
Employee or a Former Key Employee; provided, however, that a person who has not performed any
services for an Affiliated Company at any time during the one-year period ending on the
determination date (and the Beneficiaries of any such person) shall not be considered a Non-Key
Employee.

     13.07. Termination of Top-Heavy Status. If the Plan has been deemed to be top-heavy for
one or more Plan Years and thereafter ceases to be top-heavy, the provisions of this Article XIII
shall cease to apply to the Plan effective as of the day following the determination date on which
it is determined to no longer be top-heavy.

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ARTICLE XIV — MISCELLANEOUS

     14.01. Spendthrift Provision. To the maximum extent permitted by law, it is a condition
of the Plan, to which all rights of each Participant shall be subject, that no beneficial right or
interest of any Participant in the Plan or in the Trust shall be assignable or transferable in
whole or in part, either directly or indirectly, by operation of law or otherwise, including but
not by way of limitation, execution, levy, garnishment, attachment, pledge, bankruptcy, alienation,
transfer, encumbrance, mortgage, or in any other manner, but excluding devolution by death or
acquisition by a guardian or committee of a mental incompetent, and no rights or interest of any
Participant in the Plan or in the Trust shall be liable for or subject to any obligation or
liability of such Participant except (a) as provided by Section 401(a)(13)(C) of the Code with
respect to judgments, orders, and decrees issued, and settlement agreements entered into, on and
after August 5, 1997, and (b) obligations of a Participant under a qualified domestic relations
order (as described in Section 414(p) of the Code) or obligations to the Trust pursuant to Section
7.09.

     14.02. Appointment of Person to Receive Payment. Upon the appointment by a court having
jurisdiction of a legal representative for a Participant or Beneficiary, following a judicial
determination that such Participant or Beneficiary is of unsound mind, any payment or distribution
hereunder shall thereafter be made to such legal representative. In the event any amount shall
become payable hereunder to any person (or the Beneficiary or estate of such person), and if after
written notice from the Trustee mailed to such person’s last known address as shown on the
Committee’s records, such person or personal representative shall not have presented himself to the
Trustee or notified the Trustee in writing of his address within one (1) year after the mailing of
such notice, then the Committee may in its discretion appoint one or more of the spouse and blood
relatives of such person to receive such amount, including any

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amount thereafter becoming due to such person (or estate), in the proportions determined by them.
Any action of the Committee hereunder shall be binding and conclusive upon all persons.

     14.03. Construction. In any question of interpretation or other matter of doubt, the
Trustee, the Committee, and the Company may rely upon the opinion of counsel for the Company or any
other attorney at law designated by the Company with the approval of the Trustee. The provisions
of this Agreement shall be construed, administered, and enforced according to the laws of the
United States and, to the extent permitted by such laws, by the laws of the Commonwealth of
Massachusetts. All contributions to the Trust shall be deemed to be made in the Commonwealth of
Massachusetts.

     14.04. Impossibility of Performance. In case it becomes impossible for the Company, the
Committee, or the Trustee to perform any act under this Plan and Trust, that act shall be performed
which in the judgment of the Committee will most nearly carry out the intent and purpose of this
Plan and Trust. All parties to this Agreement or in any way interested in this Plan and Trust
shall be bound by any acts performed under such condition.

     14.05. Definition of Words. Feminine or neuter pronouns shall be substituted for those
of the masculine form, and the plural shall be substituted for the singular, in any place or places
herein where the context may require such substitution or substitutions.

     14.06. Titles. The titles of articles and sections are included only for convenience and
shall not be construed as a part of this Agreement or in any respect affecting or modifying its
provisions.

     14.07. Merger or Consolidation. In the event that this Plan is merged with or
consolidated with any other plan, or the assets or liabilities accrued under this Plan are
transferred to any other plan, each Participant’s benefit under such other plan shall be at least
as

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great immediately after such merger, consolidation, or transfer (if such plan were then to
terminate) as the benefit to which such Participant would have been entitled under this Plan
immediately before such merger, consolidation, or transfer (if the Plan were then to terminate).

     14.08.
Claims Procedure.

          (a) If a Participant, Beneficiary, alternate payee, or their authorized representative
(hereinafter the “Claimant”) asserts a right to a benefit under the Plan which has not been
received, the Claimant must file a claim for such benefit with the Committee on forms provided by
the Committee.

     Upon receipt of a claim, the Committee shall advise the Claimant that a reply will be
forthcoming within 90 days and shall in fact deliver such reply in writing within such period. If
special circumstances apply, the 90-day period may be extended by an additional 90 days; provided,
written notice of the extension is provided to the Claimant during the initial 90-day period and
such notice indicates the special circumstances requiring an extension of time and the date by
which the Committee expects to render its decision on the claim.

     If the Committee wholly or partially denies the claim, the Committee shall provide written
notice to the Claimant within the time limitations of the immediately preceding paragraph. Such
notice shall set forth:

          (i) the specific reasons for the denial of the claim;

          (ii) specific reference to pertinent provisions of the Plan on which the denial is
based;

          (iii) a description of any additional material or information necessary to perfect the
claim and an explanation of why such material or information is necessary;

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          (iv) a description of the Plan’s claims review procedures, and the time limitations
applicable to such procedures; and

          (v) appropriate information as to the steps to be taken if the Claimant wishes to
submit the claim for review, including a statement of the Claimant’s right to bring a civil
action under Section 502(a) of ERISA if the claim denial is appealed to the Committee and
the Committee fully or partially denies the claim.

          (b) A Claimant whose application for benefits is denied may request a full and fair review of
the decision denying the claim by filing, in accordance with such procedures as the Committee may
establish, a written appeal which sets forth the documents, records and other information relating
to the claim within 60 days after receipt by the Claimant of the notice of the denial from the
Committee. In connection with such appeal and upon request by the Claimant, a Claimant may review
(or receive free copies of) all documents, records or other information relevant to the Claimant’s
claim for benefit, all in accordance with such procedures as the Committee may establish. If a
Claimant fails to file an appeal within such 60-day period, he shall have no further right to
appeal.

          (c) A decision on the appeal by the Committee shall include a review by the Committee that
takes into account all comments, documents, records and other information submitted by the Claimant
relating to the claim, without regard to whether such information was submitted or considered in
the initial claim determination. The Committee shall render its decision on the appeal not later
than 60 days after the receipt by the Committee of the appeal. If special circumstances apply, the
60-day period may be extended by an additional 60 days; provided, written notice of the extension
is provided to the Claimant during the initial 60-day period and such notice indicates the special
circumstances requiring an extension of time and the

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date by which the Committee expects to render its decision on the claim on appeal. In the event
that the Committee extends the determination period on appeal due to a Claimant’s failure to submit
information necessary to decide a claim, the period for making the benefit determination on appeal
shall not take into account the period beginning on the date on which notification of extension is
sent to the Claimant and ending on the date on which the Claimant responds to the request for
additional information.

     The Committee has discretionary authority to determine a Claimant’s eligibility for benefits
and to interpret the terms of the Plan. Benefits under the Plan will be paid only if the Committee
decides in its discretion that the Claimant is entitled to such benefits. The decision of the
Committee shall be final and non-reviewable, unless found to be arbitrary and capricious by a court
of competent review. Such decision will be binding upon the Company and the Claimant.

     If the Committee wholly or partly denies the claim on appeal, the Committee shall provide
written notice to the Claimant within the time limitations described above. Such notice shall set
forth:

          (i) the specific reasons for the denial of the claim;

          (ii) specific reference to pertinent provisions of the Plan on which the denial is
based;

          (iii) a statement of the Claimant’s right to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other information relevant
to the Claimant’s claim for benefits; and

          (iv) a statement of the Claimant’s right to bring a civil action under Section 502(a)
of ERISA.

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          (d) In no event may a claim for benefits be filed by a Claimant more than 120 days after the
applicable “Notice Date,” as defined in (i) through (iv) below.

          (i) In any case where benefits are paid to the Claimant as a lump sum, the Notice Date
shall be the date of payment of the lump sum.

          (ii) In any case where benefits are paid to the Claimant in the form of an annuity or
in installments, the Notice Date shall be the date of the first payment.

          (iii) In any case where the Committee (prior to the filing of a claim for benefits
under this Section 14.08) determines that an individual is not entitled to benefits from the
Plan and the Committee provides written notice to such individual of its determination, the
Notice Date shall be the date of the individual’s receipt of such notice.

          (iv) In any case where the Committee provides an individual, in connection with a
distributable event under the Plan, a written statement of his or her vested account balance
as of a specific date, the Notice Date shall be the latest date of the individual’s receipt
of such notice.

          (e) In no event may any legal proceeding regarding entitlement to benefits or any aspect of
benefits under the Plan be commenced later than the earliest of (i) two (2) years after the
applicable Notice Date; or (ii) one (1) year after the date a claimant receives a decision from the
Committee regarding his appeal; or (iii) the latest date otherwise prescribed by applicable law.
In addition, no action at law or in equity shall be brought to recover under the Plan prior to the
expiration of 60 days after receipt by the Claimant of the written decision regarding the
Claimant’s request for review under the claims procedure.

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     14.09. Special Disability Provisions.

          (a) Notwithstanding anything herein, if a Claimant is denied a benefit because he or she is
determined not to be disabled and he or she makes a claim pursuant to such denial, the provisions
of this Section 14.09 shall apply. Upon receipt of a claim, the reply period shall be forty-five
(45) days. If, prior to the end of such 45-day period, the claims reviewer determines that, due to
matters beyond the control of the Plan, a decision cannot be rendered, the period for making the
determination may be extended for up to thirty (30) days, and the claims reviewer shall notify the
Claimant, prior to the expiration of such 45-day period, of the circumstances requiring an
extension and the date by which the Plan expects to render a decision. If, prior to the end of the
first 30-day extension period, the claims reviewer determines that, due to matters beyond the
control of the Plan, a decision cannot be rendered within that extension period, the period for
making the determination may be extended for up to an additional thirty (30) days, and the claims
reviewer shall notify the Claimant, prior to the expiration of the first 30-day extension period,
of the circumstances requiring the extension and the date by which the Plan expects to render a
decision. In the case of any extension described in this paragraph, the notice of extension shall
specifically explain the standards on which entitlement to a benefit is based, the unresolved
issues that prevent a decision on the claim and the additional information needed to resolve those
issues, and the Claimant shall be afforded forty-five (45) days within which to provide the
specified information. If information is requested, the period for making the benefit
determination shall be tolled from the date on which notification of an extension is sent to the
Claimant until the date on which the Claimant responds to the request for information.

          (b) Within one hundred eighty (180) days after receiving the written notice of an adverse
disposition of the claim, the Claimant may request in writing, and shall be entitled to,

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a review of the benefit determination. In deciding an appeal of any adverse benefit
determination that is based in whole or in part on a medical judgment, the Plan shall consult with
a health care professional who has appropriate training and experience in the field of medicine
involved in the medical judgment. Such health care professional shall be an individual who is
neither an individual who was consulted in connection with the adverse benefit determination that
is the subject of the appeal nor the subordinate of any such individual. The medical or vocational
experts whose advice was obtained on behalf of the Plan in connection with the Claimant’s adverse
benefit determination will be identified to the Claimant. If the Claimant does not request a
review within one hundred eighty (180) days after receiving written notice of the original’s
disposition of the claim, the Claimant shall be deemed to have accepted the original written
disposition.

          (c) A decision on review shall be rendered in writing by the Plan within a reasonable period
of time, but ordinarily not later than forty-five (45) days after receipt of the Claimant’s request
for review by the Plan, unless the Plan determines that special circumstances require an extension
of time for processing the claim. If the Plan determines that an extension of time for processing
is required, written notice of the extension shall be furnished to the Claimant prior to the
termination of the initial forty-five (45) day period. In no event shall such extension exceed a
period of forty-five (45) days from the end of the initial period. The extension notice shall
indicate the special circumstances requiring an extension of time and the date by which the Plan
expects to render the determination on review. In the event the extension is due to a Claimant’s
failure to submit information necessary to decide the claim, the Claimant shall be afforded
forty-five (45) days within which to provide the specified information, and the period for making
the benefit determination on review shall be tolled from the date on which

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notification of the extension is sent to the Claimant until the date on which the Claimant responds
to the request for additional information.

          (d) In the case of an adverse benefit determination on review, in addition to the information
described above, the notice shall state: “You and your Plan may have other voluntary alternative
dispute resolution options, such as mediation. One way to find out what may be available is to
contact your local U.S. Department of Labor Office and your State insurance regulatory agency.”

     14.10. Special Provisions for Certain Leased Employees. A “leased employee” shall
receive credit for Hours of Service for the entire period during which he is a leased employee of
the Company as if he were an Employee of the Company; provided, however, a leased employee shall
not be an Employee eligible to participate in the Plan as long as he remains a leased employee.
For purpose of this Section 14.10, the term leased employee means any person (a) who is not an
Employee of the Company or an Affiliated Company and (b) who pursuant to an agreement between the
Company or an Affiliated Company and any other person (a “leasing organization”) has performed
services for the Company or an Affiliated Company on a substantially full-time basis for a period
of at least one (1) year and such services are performed under the primary direction or control by
the Company. Notwithstanding the foregoing, if leased employees constitute less than twenty
percent (20%) of the Company’s or Affiliated Company’s non-highly compensated workforce within the
meaning of Section 414(n)(5) of the Code, a person who is covered by a money purchase pension plan
maintained by the leasing organization which provides a non- integrated employer contribution rate
of at least ten percent (10%) of compensation, immediate participation, and full vesting shall not
be considered a leased employee. In the case of a leased employee or an Employee, Years of Vesting
Service shall be

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determined by taking into account any period for which the individual would have been a leased
employee but for the fact that he or she had not performed services for the Company or an
Affiliated Company on a substantially full-time basis for a period of at least one year. A
transfer from the status of an employee of the Company to that of a leased employee shall not be
considered a termination of employment under the Plan. An individual who has such a transfer shall
not have a termination of employment until he or she ceases to be an employee of the Company and
all Affiliated Companies and is no longer a leased employee.

     14.11. Execution of Plan. This Plan may be executed in any number of counterparts and
each fully executed counterpart shall be deemed an original.

     14.12. USERRA. Notwithstanding any provision of this Plan to the contrary,
contributions, benefits, and service credit with respect to qualified military service shall be
provided in accordance with Section 414(u) of the Code.

     14.13. Death During Qualified Military Service. Effective January 1, 2007, if a
Participant dies while performing qualified military service (as defined in Code Section 414(u)),
the Participant’s spouse or beneficiary is entitled to any benefits (other than benefit accruals
relating to the period of qualified military service), and the rights and features accompanying
those benefits, that would have been provided under the Plan had the Participant been reemployed by
the Company or an Affiliated Company and separated from service on account of death.

     14.14. Venue for Litigation. Any cause of action brought by a Claimant, Eligible
Employee, Participant, former Eligible Employee, former Participant or any beneficiary of such an
individual involving benefits under the Plan shall be filed and conducted exclusively in the
federal courts in the District of Kansas.

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     14.15. Acquisition Of Assets. If the Plan Sponsor acquires the assets (through purchase,
merger or otherwise) of any other entity and hires persons who had been employed by such entity,
the division or other subgroup in which such persons are employed shall be excluded from the groups
included in the definition of “Eligible Employee” unless the Plan Sponsor communicates to such
division or subgroup that such division or subgroup is accruing benefits under the Plan.

     14.16. Contribution On Behalf Of Affiliated Company. If an Affiliated Company
contributes to the Plan and the contribution is accepted by the Plan with the consent of the Plan
Sponsor, the Affiliated Company will be deemed to have adopted the Plan with the consent of the
Plan Sponsor with respect to the category of employees on behalf of whom the contribution was made.

     14.17. Separability Of Provisions. If any provision of this Plan shall be for any reason
invalid or unenforceable, the remaining provisions shall nevertheless be carried into effect.

     14.18. Service Of Process. The Company or the Committee shall constitute the Plan’s
agent for service of process.

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ARTICLE XV — MINIMUM DISTRIBUTION REQUIREMENTS

     15.01. General Rules.

          (a) Effective Date. The provisions of this Article XV will apply for purposes of
determining required minimum distributions for calendar years beginning with the 2002 calendar
year.

          (b) Coordination with Minimum Distribution Requirements Previously in Effect.
Required minimum distributions for 2002 under this Article XV will be determined as follows. If
the total amount of 2002 required minimum distributions under the Plan made to the distributee
prior to the adoption date of this Article XV equals or exceeds the required minimum distributions
determined under this Article XV, then no additional distributions will be required to be made for
2002 on or after such date to the distributee. If the total amount of 2002 required minimum
distributions under the Plan made to the distributee prior to the adoption date of this Article XV
is less than the amount determined under this Article XV, then required minimum distributions for
2002 on and after such date will be determined so that the total amount of required minimum
distributions for 2002 made to the distributee will be the amount determined under this Article XV.

          (c) Precedence. The requirements of this Article XV will take precedence over any
inconsistent provisions of the Plan.

          (d) Requirements of Treasury Regulations Incorporated. All distributions required
under this Article XV will be determined and made in accordance with the Treasury regulations under
Section 401(a)(9) of the Code.

          (e) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this
Article XV, distributions may be made under a designation made before January 1, 1984, in
accordance with Section 242(b)(2) of the Tax Equity and Fiscal

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Responsibility Act (“TEFRA”) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

     15.02. Time and Manner of Distribution.

     (a) Required Beginning Date. The Participant’s entire interest will be distributed,
or begin to be distributed, to the Participant no later than the Participant’s Required Beginning
Date.

     (b) Death of Participant Before Distributions Begin. If the Participant dies before
distributions begin, the Participant’s entire interest will be distributed, or begin to be
distributed, no later than as follows:

          (i) If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, then distributions to the surviving spouse will begin by December 31 of the
calendar year immediately following the calendar year in which the Participant died, or by
December 31 of the calendar year in which the Participant would have attained age 701/2, if
later.

          (ii) If the Participant’s surviving spouse is not the Participant’s sole Designated
Beneficiary, then distributions to the Designated Beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the Participant died.

          (iii) If there is no Designated Beneficiary as of September 30 of the year following
the year of the Participant’s death, the Participant’s entire interest will be distributed
by December 31 of the calendar year containing the fifth anniversary of the Participant’s
death.

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          (iv) If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary and the surviving spouse dies after the Participant but before distributions to
the surviving spouse begin, this Section 15.02(b), other than Section 15.02(b)(i), will
apply as if the surviving spouse were the Participant.

     For purposes of this Section 15.02(b) and Section 15.04, unless Section 15.02(b)(iv) applies,
distributions are considered to begin on the Participant’s Required Beginning Date. If Section
15.02(b)(iv) applies, distributions are considered to begin on the date distributions are required
to begin to the surviving spouse under Section 15.02(b)(i). If distributions under an annuity
purchased from an insurance company irrevocably commence to the Participant before the
Participant’s Required Beginning Date (or to the Participant’s surviving spouse before the date
distributions are required to begin to the surviving spouse under Section 15.02(b)(i)), the date
distributions are considered to begin is the date distributions actually commence.

          (c) Forms of Distribution. Unless the Participant’s interest is distributed in the
form of an annuity purchased from an insurance company or in a single sum on or before the Required
Beginning Date, as of the first Distribution Calendar Year distributions will be made in accordance
with Sections 15.03 and 15.04 of this Article XV. If the Participant’s interest is distributed in
the form of an annuity purchased from an insurance company, distributions thereunder will be made
in accordance with the requirements of Section 401(a)(9) of the Code and the Treasury regulations.

     15.03. Required Minimum Distributions During Participant’s Lifetime.

          (a) Amount of Required Minimum Distribution for each Distribution Calendar Year.
During the Participant’s lifetime, the minimum amount that will be distributed for each
Distribution Calendar Year is the lesser of:

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          (i) the quotient obtained by dividing the Participant’s Account balance by the
distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the
Treasury regulations, using the Participant’s age as of the Participant’s birthday in the
Distribution Calendar Year; or

          (ii) if the Participant’s sole Designated Beneficiary for the Distribution Calendar
Year is the Participant’s spouse, the quotient obtained by dividing the Participant’s
Account balance by the number in the Joint and Last Survivor Table set forth in Section
1.401(a)(9)-9 of the Treasury regulations, using the Participant’s and spouse’s attained
ages as of the Participant’s and spouse’s birthdays in the Distribution Calendar Year.

          (b) Lifetime Required Minimum Distributions Continue Through Year of Participant’s
Death. Required minimum distributions will be determined under this Section 15.03 beginning
with the first Distribution Calendar Year and up to and including the Distribution Calendar Year
that includes the Participant’s date of death.

     15.04. Required Minimum Distributions After Participant’s Death.

          (a) Death On or After Date Distributions Begin.

          (i) Participant Survived by Designated Beneficiary. If the Participant dies on or
after the date distributions begin and there is a Designated Beneficiary, the minimum amount
that will be distributed for each Distribution Calendar Year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s Account balance
by the longer of the remaining Life Expectancy of the Participant or the remaining Life
Expectancy of the Participant’s Designated Beneficiary, determined as follows:

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          (A) The Participant’s remaining Life Expectancy is calculated using the age of
the Participant in the year of death, reduced by one for each subsequent year.

          (B) If the Participant’s surviving spouse is the Participant’s sole Designated
Beneficiary, the remaining Life Expectancy of the surviving spouse is calculated for
each Distribution Calendar Year after the year of the Participant’s death using the
surviving spouse’s age as of the spouse’s birthday in that year. For Distribution
Calendar Years after the year of the surviving spouse’s death, the remaining Life
Expectancy of the surviving spouse is calculated using the age of the surviving
spouse as of the spouse’s birthday in the calendar year of the spouse’s death,
reduced by one for each subsequent calendar year.

          (C) If the Participant’s surviving spouse is not the Participant’s sole
Designated Beneficiary, the Designated Beneficiary’s remaining Life Expectancy is
calculated using the age of the beneficiary in the year following the year of the
Participant’s death, reduced by one for each subsequent year.

          (ii) No Designated Beneficiary. If the Participant dies on or after the date
distributions begin and there is no Designated Beneficiary as of September 30 of the year
after the year of the Participant’s death, the minimum amount that will be distributed for
each Distribution Calendar Year after the year of the Participant’s death is the quotient
obtained by dividing the Participant’s Account balance by the Participant’s remaining Life
Expectancy calculated using the age of the Participant in the year of death, reduced by one
for each subsequent year.

          (b) Death Before Date Distributions Begin.

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          (i) Participant Survived by Designated Beneficiary. If the Participant dies
before the date distributions begin and there is a Designated Beneficiary, the minimum
amount that will be distributed for each Distribution Calendar Year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s Account balance
by the remaining Life Expectancy of the Participant’s Designated Beneficiary, determined as
provided in Section 15.04(a).

          (ii) No Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no Designated Beneficiary as of September 30 of the year
following the year of the Participant’s death, distribution of the Participant’s entire
interest will be completed by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death.

          (iii) Death of Surviving Spouse Before Distributions to Surviving Spouse Are
Required to Begin. If the Participant dies before the date distributions begin, the
Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, and the
surviving spouse dies before distributions are required to begin to the surviving spouse
under Section 15.02(b)(i), this Section 15.04(b) will apply as if the surviving spouse were
the Participant.

     15.05. Definitions.

          (a) Designated Beneficiary. The individual who is designated as the “Beneficiary”
under Section 7.04 of the Plan and is the Designated Beneficiary under Section 401(a)(9) of the
Code and Section 1.401(a)(9)-4, of the Treasury regulations.

          (b) Distribution Calendar Year. A calendar year for which a minimum distribution is
required. For distributions beginning before the Participant’s death, the first

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Distribution Calendar Year is the calendar year immediately preceding the calendar year which
contains the Participant’s Required Beginning Date. For distributions beginning after the
Participant’s death, the first Distribution Calendar Year is the calendar year in which
distributions are required to begin under Section 15.02(b). The required minimum distribution for
the Participant’s first Distribution Calendar Year will be made on or before the Participant’s
Required Beginning Date. The required minimum distribution for other Distribution Calendar Years,
including the required minimum distribution for the Distribution Calendar Year in which the
Participant’s Required Beginning Date occurs, will be made on or before December 31 of that
Distribution Calendar Year.

          (c) Life Expectancy. Life Expectancy as computed by use of the Single Life Table in
Section 1.401(a)(9)-9 of the Treasury regulations.

          (d) Participant’s Account Balance. The Account balance as of the last valuation date
in the calendar year immediately preceding the Distribution Calendar Year (valuation calendar year)
increased by the amount of any contributions made and allocated or forfeitures allocated to the
Account balance as of dates in the valuation calendar year after the valuation date and decreased
by distributions made in the valuation calendar year after the valuation date. The Account balance
for the valuation calendar year includes any amounts rolled over or transferred to the Plan either
in the valuation calendar year or in the Distribution Calendar Year if distributed or transferred
in the valuation calendar year.

          (e) Required Beginning Date. The date specified in Section 7.07(d)(ii) of the Plan.

     15.06. 2009 RMDs. Notwithstanding anything to the contrary in this Article XV, a
Participant, a Participant’s surviving spouse or a Participant’s sole designated beneficiary who

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would have been required to receive required minimum distributions under this Article XV for 2009
but for the enactment of Code Section 401(a)(9)(H) (“2009 RMDs”), and who would have satisfied that
requirement by receiving distributions that are (a) equal to the 2009 RMDs or (b) one or more
payments in a series of substantially equal distributions (that include the 2009 RMDs) made at
least annually and expected to last for the life (or life expectancy) of the Participant, the joint
lives (or joint life expectancy) of the Participant and the Participant’s designated beneficiary,
or for a period of at least 10 years, will not receive those distributions for 2009 unless the
Participant or the Participant’s designated beneficiary chooses to receive such distributions.
Participants and designated beneficiaries described in the preceding sentence will be given the
opportunity to elect to receive the distributions described in the preceding sentence. In
addition, notwithstanding Section 7.14, and solely for purposes of applying the direct rollover
provisions of the Plan, 2009 RMDs will be treated as eligible rollover distributions.

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COLLECTIVE BRANDS PERFORMANCE + LIFESTYLE GROUP

EMPLOYEE SAVINGS & INVESTMENT PLAN

APPENDIX A

Limitation on Tax Deferred Contributions

     The amount of Tax Deferred Contributions made by the Company during the Plan Year commencing
on January 1, _____ on behalf of a Participant who is a Highly Compensated Employee shall not
exceed $_________.

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EXHIBIT A

COLLECTIVE BRANDS PERFORMANCE + LIFESTYLE GROUP

EMPLOYEE SAVINGS & INVESTMENT PLAN

Applicable to Certain Individuals

Who Were Participants in the

Saucony, Inc. 401(k) Plan (“Saucony Plan”)

as of September 16, 2005 and December 31, 2005

     The provisions of this Exhibit A shall apply to those individuals covered herein and shall be
made part of the Collective Brands Performance + Lifestyle Group Employee Savings & Investment Plan
(the “Plan”), as amended and restated effective January 1, 2001, and as subsequently amended, with
respect to such individuals.

     1. All individuals who were eligible to participate in the Saucony Plan (“Former Saucony
Employees”) on September 16, 2005 shall not be eligible to participate in this Plan until January
1, 2006 and then only to the extent provided herein.

     2. All Former Saucony Employees who are employed in one of the “Specified Groups” (as defined
below) on December 31, 2005 shall be eligible to participate in this Plan effective January 1,
2006, subject to the terms and conditions of this Plan. For this purpose, the “Specified Groups”
include the following:

	 	A.	 	All Lexington, Massachusetts Based Associates

	 	B.	 	All Field Sales Associates

	 	C.	 	All Distribution Associates

	 	D.	 	All Richmond Customer Service Employees

	 	E.	 	All Regional Retail Vice Presidents

	 	F.	 	All Retail District Managers

	 	G.	 	All Peabody, Massachusetts Based Employees
(including Customer Service)

	 	H.	 	All Peabody, Massachusetts Based Distribution
Employees

	 	I.	 	All Western Massachusetts Based Distribution
Employees

	 	J.	 	All Sales Teams

	 	K.	 	All Union Employees

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     3. For eligibility and vesting purposes, Former Saucony Employees shall receive service under
the Plan from their date of hire by Saucony, Inc.

     4. All Former Saucony Employees shall remain vested in the vested portion of their Accounts
attributable to Matching Contributions and Employer Profit Sharing Contributions (if applicable).

     5. All Former Saucony Employees shall continue to vest in the unvested portion of their
Accounts attributable to Matching Contributions and Employer Profit Sharing Contributions (if
applicable) contributed to their Accounts on or prior to December 31, 2005 in accordance with the
vesting schedule specified in the Saucony Plan (i.e., a three-year graded vesting schedule).

     6. All Former Saucony Employees (other than union employees covered by the Teamsters Local 25
collective bargaining agreement at the Peabody Warehouse (the “Peabody Union Employees”)) shall
vest in the portion of their Accounts attributable to Matching Contributions contributed to their
Company Account on or after January 1, 2006 in accordance with the vesting schedule specified in
Section 7.05 of this Plan.

     7. All Peabody Union Employees shall vest in the portion of their Accounts attributable to
Matching Contributions contributed to their Company Account on or after January 1, 2006 in
accordance with the vesting schedule specified in the Saucony Plan (i.e., a three-year graded
vesting schedule).

     8. Notwithstanding the foregoing, in the event that a Former Saucony Employee’s employment is
terminated in connection with a reduction in force related to the merger of Saucony, Inc. and The
Stride Rite Corporation, such a Former Saucony Employee shall become 100% vested in all of his
Accounts.

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     9. If a withdrawal under the Plan by a Former Saucony Employee is made with respect to an
account subject to a graded vesting schedule and such account was not 100% vested at the time of
such withdrawal, then the Company shall separately record the portion of such account that was not
vested at the time of the withdrawal, and the vested amount of such portion from time to time shall
equal an amount (“X”) determined by the following formula:

     X = P(AB + (R X D)) — (R X D)

     For purposes of applying such formula: “P” is the vested percentage at the relevant time;
“AB” is the account balance at the relevant time; “D” is the amount previously withdrawn by the
Participant; and “R” is the ratio of the account balance at the relevant time to the account
balance after the withdrawal.

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     IN WITNESS WHEREOF the Company, by its duly authorized officer, has caused these presents to
be signed and its corporate seal affixed, this 21st day of July, 2011.

	 	 	 	 	 
	 	THE STRIDE RITE CORPORATION

 	 
	 	By:  	/s/ Sally J. Burk
 	 
	 	 	Name:  	Sally Burk 	 
	 	 	Title:  	Vice President 	 
	 

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