Document:

EX-10.2

Schedule 1.1

As used in the Agreement, the following terms shall have the following definitions:

“Acceptance” means a time draft issued under a Letter of Credit in connection with the
purchase by any Borrower of Inventory from a location outside of the continental United States,
which has been accepted by an Issuing Lender or an Underlying Issuer at the request of an Issuing
Lender, in each case, in such Issuing Lender’s or Underlying Issuer’s, as applicable, sole and
absolute discretion.

“Acceptance Disbursement” means a payment made by any Issuing Lender or any
Underlying Issuer pursuant to an Acceptance.

“Account” means an account (as that term is defined in the Code).

“Account Debtor” means any Person who is obligated on an Account, chattel paper, or a
general intangible.

“Accounting Changes” means (a) changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting
Standards Board of the American Institute of Certified Public Accountants (or successor thereto or
any agency with similar functions) or of any rule, regulation, pronouncement or opinion by the SEC,
(ii) changes in accounting principles concurred in by Parent’s certified public accountants; (iii)
purchase accounting adjustments under A.P.B. 16 or 17 and EITF 88-16, and the application of the
accounting principles set forth in FASB 109, including the establishment of reserves pursuant
thereto and any subsequent reversal (in whole or in part) of such reserves; and (iv) the reversal
of any reserves established as a result of purchase accounting adjustments.

“ACH Transactions” means any cash management or related services (including the
Automated Clearing House processing of electronic fund transfers through the direct Federal Reserve
Fedline system) provided by a Bank Product Provider for the account of Parent or its Subsidiaries.

“Acquired Indebtedness” means Indebtedness of a Person whose assets or Stock is
acquired by Parent or any of its Subsidiaries in a Permitted Acquisition; provided,
however, that such Indebtedness (a) is either Purchase Money Indebtedness or a Capital
Lease with respect to Equipment or mortgage financing with respect to Real Property, (b) was in
existence prior to the date of such Permitted Acquisition, and (c) was not incurred in connection
with, or in contemplation of, such Permitted Acquisition.

“Acquisition” means (a) the purchase or other acquisition by a Person or its
Subsidiaries of all or substantially all of the assets of (or any division or business line of) any
other Person, or (b) the purchase or other acquisition (whether by means of a merger (including any
reverse merger or short-form merger), consolidation, or otherwise) by a Person or its Subsidiaries
of all or substantially all of the Stock of any other Person.

“Additional Documents” has the meaning specified therefor in Section 5.12 of
the Agreement.

“Adjusted Letter of Credit Usage” means, as of the date of determination, the sum of
(a) the result of (i) 100% minus the applicable Inventory Advance Rate then in effect multiplied by
(ii) the undrawn amount of outstanding Qualified Import Letters of Credit issued for the purpose of
purchasing Eligible Inventory, plus (b) 100% of the undrawn amount of all other outstanding Letters
of Credit, plus (c) 100% of the amount of all outstanding Acceptances.

“Adjusted Revolver Usage” means, as of any date of determination, the sum of (a) the
amount of outstanding Advances, plus (b) the amount of the Adjusted Letter of Credit Usage.

“Administrative Borrower” has the meaning ascribed to such term in Section
17.13 of the Agreement.

“Advances” has the meaning specified therefor in Section 2.1(a) of the
Agreement.

“Affected Lender” has the meaning specified therefor in Section 2.13(b) of the
Agreement.

“Affiliate” means, as applied to any Person, any other Person who controls, is
controlled by, or is under common control with, such Person. For purposes of this definition,
“control” means the possession, directly or indirectly through one or more intermediaries, of the
power to direct the management and policies of a Person, whether through the ownership of Stock, by
contract, or otherwise; provided, however, that, for purposes of the definition of
Eligible Accounts and Section 6.12 of the Agreement: (a) any Person which owns directly or
indirectly 10% or more of the Stock having ordinary voting power for the election of directors or
other members of the governing body of a Person or 10% or more of the partnership or other
ownership interests of a Person (other than as a limited partner of such Person) shall be deemed an
Affiliate of such Person, (b) each director (or comparable manager) of a Person shall be deemed to
be an Affiliate of such Person, and (c) each partnership in which a Person is a general partner
shall be deemed an Affiliate of such Person.

“Agent” has the meaning specified therefor in the preamble to the Agreement.

“Agent-Related Persons” means Agent, together with its Affiliates, officers,
directors, employees, attorneys, and agents.

“Agent’s Account” means the Deposit Account of Agent identified on Schedule
A-1.

“Agent’s Liens” means the Liens granted by Parent or its Subsidiaries to Agent under
the Loan Documents.

“Agreement” means the Credit Agreement to which this Schedule 1.1 is attached.

“Alternative Currency” means (a) Canadian Dollars, or (b) Euros.

“Applicable Unused Line Fee” means, as of any date of determination, the applicable
amount set forth in the following table that corresponds to the most recent Average Daily Usage
calculation as determined by Agent (the “Average Daily Usage Calculation”);
provided, however, that for the period from the Closing Date through the testing
period ending September 30, 2009, the Applicable Unused Line Fee shall be at the margin in the row
styled “Level I”:

	 	 	 	 	 
	Level
	 	Average Daily Usage

	 	Applicable Unused Line Fee
	 
	 	 

	 	 
	I
	 	If the Average Daily Usage is less than

$75,000,000

	 	1.00 percentage points

	 
	 	 

	 	 
	II
	 	If the Average Daily Usage is greater than

or equal to $75,000,000 and less than

$150,000,000

	 	0.75 percentage points

	 
	 	 

	 	 
	III
	 	If the Average Daily Usage is greater than

or equal to $150,000,000

	 	0.50 percentage points

	 
	 	 

	 	 

The Applicable Unused Line Fee shall be based upon the most recent Average Daily Usage
Calculation, which will be calculated by Agent based on Average Daily Usage during the preceding
fiscal quarter. The Applicable Unused Line Fee shall be re-determined quarterly by Agent using such
methods in its reasonable discretion and any change to the Applicable Unused Line Fee based on the
Average Daily Usage as of the end of any fiscal quarter shall be effective as of the first day of
the immediately following fiscal quarter.

“Application Event” means the occurrence of (a) a failure by Borrowers to repay all of
the Obligations on the Maturity Date, or (b) an Event of Default and the election by Agent or the
Required Lenders to require that payments and proceeds of Collateral be applied pursuant to
Section 2.4(b)(ii) of the Agreement.

“Approved Increase” has the meaning specified therefor in Section 2.2(a).

“Assignee” has the meaning specified therefor in Section 13.1(a) of the
Agreement.

“Assignment and Acceptance” means an Assignment and Acceptance Agreement substantially
in the form of Exhibit A-1.

“Authorized Person” means any one of the individuals identified on Schedule
A-2, as such schedule is updated from time to time by written notice from Administrative
Borrower to Agent.

“Available Increase Amount” means, as of any date of determination, an amount equal to
the result of (a) $50,000,000 minus (b) the aggregate principal amount of increases to the
Commitments and the Maximum Revolver Amount previously made pursuant to Section 2.2 of the
Agreement.

“Availability” means, as of any date of determination, the amount that Borrowers are
entitled to borrow as Advances under Section 2.1 of the Agreement (after giving effect to
all then outstanding Obligations (other than Bank Product Obligations)).

“Average Daily Availability” means, for any measurement period, the average of the
amount of Excess Availability at the end of each day during such period.

“Average Daily Availability Calculation” has the meaning specified therefor in the
definition of Base Rate Margin.

“Average Daily Usage” means, for any measurement period, the average of the Daily
Balance of the Revolver Usage at the end of each day during such period.

“Average Daily Usage Calculation” has the meaning specified therefor in the definition
of Applicable Unused Line Fee.

“Bailee & Agent” means a Person that (a) acts as the Borrowers’ agent for the purpose
of taking possession of goods, including goods which are represented by bills of lading or other
documents of title, (b) provides carrier and other transportation services to the Borrowers, and
(c) that is reasonably satisfactory to Agent.

“Bailee and Agency Agreement” means a Bailee and Agency Agreement, in substantially
the form attached as Exhibit B-4 hereto, entered into by and among the Borrowers, a Bailee
& Agent, and Agent, the form and substance of which is satisfactory to Agent.

“Bank Product” means any financial accommodation extended to Parent or its
Subsidiaries by a Bank Product Provider (other than pursuant to the Agreement) including: (a)
credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH
Transactions, (f) cash management, including controlled disbursement, accounts or services, or (g)
transactions under Hedge Agreements.

“Bank Product Agreements” means those agreements entered into from time to time by
Parent or its Subsidiaries with a Bank Product Provider in connection with the obtaining of any of
the Bank Products.

“Bank Product Collateralization” means providing cash collateral (pursuant to
documentation reasonably satisfactory to Agent) to be held by Agent for the benefit of the Bank
Product Providers in an amount determined by Agent as sufficient to satisfy the reasonably
estimated credit exposure with respect to the then existing Bank Products that qualify as Bank
Product Obligations pursuant to the requirements of the proviso set forth in the definition of Bank
Product Obligations.

“Bank Product Obligations” means (a) all obligations, liabilities, reimbursement
obligations, fees, or expenses owing by Parent or its Subsidiaries to any Bank Product Provider
pursuant to or evidenced by a Bank Product Agreement and irrespective of whether for the payment of
money, whether direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, (b) all obligations of Borrowers to pay or reimburse an Underlying Issuer in
respect of Underlying Letters of Credit, and (c) all amounts that Parent or its Subsidiaries are
obligated to reimburse to Agent or any member of the Lender Group as a result of Agent or such
member of the Lender Group purchasing participations from, or executing guarantees or indemnities
or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided
by such Bank Product Provider to Parent or its Subsidiaries; provided, however, in
order for any item described in clauses (a), (b), or (c) above to constitute “Bank Product
Obligations”, (i) if the applicable Bank Product Provider is Wells Fargo, then, if requested by
Agent, Agent shall have received a Bank Product Provider Letter Agreement with respect to the
applicable Bank Product within 30 days after the provision of such Bank Product to Parent or its
Subsidiaries, or, if such Bank Product Agreement was entered into prior to the Closing Date or
prior to the date on which such Bank Product Provider or its Affiliate, as applicable, became a
Lender under the Credit Agreement, within 30 days after the Closing Date or 30 days after the date
on which such Bank Product Provider or its Affiliate, as applicable, first became a Lender under
the Credit Agreement, as applicable or (ii) if the applicable Bank Product Provider is any other
Person, Agent shall have received a Bank Product Provider Letter Agreement with respect to the
applicable Bank Product within 30 days after the provision of such Bank Product to Parent or its
Subsidiaries, or, if such Bank Product Agreement was entered into prior to the Closing Date or
prior to the date on which such Bank Product Provider or its Affiliate, as applicable, became a
Lender under the Credit Agreement, within 30 days after the Closing Date or 30 days after the date
on which such Bank Product Provider or its Affiliate, as applicable, first became a Lender under
the Credit Agreement, as applicable.

“Bank Product Provider” means any Lender or any of its Affiliates; provided,
however, that no such Person (other than Wells Fargo) shall constitute a Bank Product
Provider with respect to a Bank Product unless and until Agent shall have received a Bank Product
Provider Letter Agreement with such Person and with respect to the applicable Bank Product within
30 days after the provision of such Bank Product to Parent or its Subsidiaries, or, if such Bank
Product Agreement was entered into prior to the Closing Date or prior to the date on which such
Bank Product Provider or its Affiliate, as applicable, became a Lender under the Credit Agreement,
within 30 days after the Closing Date or 30 days after the date on which such Bank Product Provider
or its Affiliate, as applicable, first became a Lender under the Credit Agreement, as applicable.

“Bank Product Provider Letter Agreement” means a letter agreement in substantially the
form attached hereto as Exhibit B-2, in form and substance satisfactory to Agent, duly
executed by the applicable Bank Product Provider, the Administrative Borrower, and Agent.

“Bank Product Reserve” means, as of any date of determination, the amount of reserves
that Agent has established (based upon the Bank Product Providers’ reasonable determination of the
credit exposure of Parent and its Subsidiaries in respect of Bank Products that qualify as Bank
Product Obligations pursuant to the requirements of the proviso set forth in the definition of Bank
Product Obligations) in respect of Bank Products then provided or outstanding that qualify as Bank
Product Obligations pursuant to the requirements of the proviso set forth in the definition of Bank
Product Obligations.

“Bankruptcy Code” means title 11 of the United States Code, as in effect from time to
time.

“Base LIBOR Rate” means the rate per annum rate appearing on Bloomberg L.P.’s (the
"Service”) Page BBAM1/(Official BBA USD Dollar Libor Fixings) (or on any successor or
substitute page of such Service, or any successor to or substitute for such Service) 2 Business
Days prior to the commencement of the requested Interest Period, for a term and in an amount
comparable to the Interest Period and the amount of the LIBOR Rate Loan requested (whether as an
initial LIBOR Rate Loan or as a continuation of a LIBOR Rate Loan or as a conversion of a Base Rate
Loan to a LIBOR Rate Loan) by Borrowers in accordance with the Agreement, which determination shall
be conclusive in the absence of manifest error.

“Base Rate” means the greatest of (a) the Base LIBOR Rate (which rate shall be
calculated based upon an Interest Period of 3 months and shall be determined on a daily basis)
plus 1.00 percentage point, (b) the Federal Funds Rate plus 1/2%, and (c) the rate of
interest announced, from time to time, within Wells Fargo at its principal office in San Francisco
as its “prime rate”, with the understanding that the “prime rate” is one of Wells Fargo’s base
rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates
of interest are calculated for those loans making reference thereto and is evidenced by the
recording thereof after its announcement in such internal publications as Wells Fargo may
designate.

“Base Rate Loan” means each portion of the Advances that bears interest at a rate
determined by reference to the Base Rate.

“Base Rate Margin” means, as of any date of determination (with respect to any portion
of the outstanding Advances on such date that is a Base Rate Loan), the applicable margin set forth
in the following table that correspond to the most recent Average Daily Availability calculation
determined by Agent in its reasonable discretion (the “Average Daily Availability
Calculation”); provided, however, that for the period from the Closing Date
through September 30, 2009, the Base Rate Margin shall be at the margin in the row styled “Level
III”:

	 	 	 	 	 
	Level
	 	Average Daily Availability

	 	Base Rate Margin
	 
	 	 

	 	 
	I
	 	If the Average Daily Availability is less than

$75,000,000

	 	3.25 percentage points

	 
	 	 

	 	 
	II
	 	If the Average Daily Availability is greater

than or equal to $75,000,000 and less than

$150,000,000

	 	3.00 percentage points

	 
	 	 

	 	 
	III
	 	If the Average Daily Availability is greater

than or equal to $150,000,000

	 	2.75 percentage points

	 
	 	 

	 	 

The Base Rate Margin shall be based upon the most recent Average Daily Availability
Calculation, which will be calculated by Agent in its reasonable discretion based on Average Daily
Availability during the preceding fiscal quarter. The Base Rate Margin shall be re-determined
quarterly by Agent using such methods in its reasonable discretion and any change to the Base Rate
Margin based on the Average Daily Availability as of the end of any fiscal quarter shall be
effective as of the first day of the immediately following fiscal quarter.

“Benefit Plan” means a “defined benefit plan” (as defined in Section 3(35) of ERISA)
for which Parent or any of its Subsidiaries or ERISA Affiliates has been an “employer” (as defined
in Section 3(5) of ERISA) within the past six years.

“BOA” has the meaning specified therefor in the preamble to the Agreement.

“BOAS” has the meaning specified therefor in the preamble to the Agreement.

“Board of Directors” means the board of directors (or comparable managers) of Parent
or any committee thereof duly authorized to act on behalf of the board of directors (or comparable
managers).

“Borrower” and “Borrowers” have the respective meanings specified therefor in
the preamble to the Agreement.

“Borrowing” means a borrowing hereunder consisting of Advances made on the same day by
the Lenders (or Agent on behalf thereof), or by Swing Lender in the case of a Swing Loan, or by
Agent in the case of a Protective Advance.

“Borrowing Base” means, as of any date of determination, the result of:

(a) 85% of the amount of Eligible Accounts, less the amount, if any, of the Dilution Reserve,
plus

(b) the lowest of:

(i) the Seasonal Inventory Limit,

(ii) the sum of (y) 70% of the value (calculated at the lower of cost or market on
a basis consistent with Borrowers’ historical accounting practices) of Eligible Landed Inventory
plus (z) the lesser of (1) 70% of the value (calculated at the lower of cost or market on a basis
consistent with Borrowers’ historical accounting practices) of Eligible In-Transit Inventory and
(2) $25,000,000, and

(iii) the sum of (y) 85% times the most recently determined Net Liquidation
Percentage times the book value (calculated at the lower of cost or market on a basis consistent
with Borrowers’ historical accounting practices) of Borrowers’ Eligible Landed Inventory plus (z)
the lesser of (1) 85% times the most recently determined Net Liquidation Percentage times the book
value (calculated at the lower of cost or market on a basis consistent with Borrowers’ historical
accounting practices) of Borrowers’ Eligible In-Transit Inventory and (2) $25,000,000, minus

(c) the sum of (i) the Bank Product Reserve, and (ii) the aggregate amount of reserves, if
any, established by Agent under Section 2.1(c) of the Agreement.

“Borrowing Base Certificate” means a certificate in the form of Exhibit
B-1.

“Borrowing Base Excess” has the meaning specified therefor in Section
2.4(e)(i) of the Agreement.

“Business Day” means any day that is not a Saturday, Sunday, or other day on which
banks are authorized or required to close in the state of New York, except that, if a determination
of a Business Day shall relate to a LIBOR Rate Loan, the term “Business Day” also shall exclude any
day on which banks are closed for dealings in Dollar deposits in the London interbank market.

“Canadian Dollars” or “C$” means Canadian dollars.

“Capital Expenditures” means, with respect to any Person for any period, the aggregate
of all expenditures by such Person and its Subsidiaries during such period that are capital
expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or
financed.

“Capitalized Lease Obligation” means that portion of the obligations under a Capital
Lease that is required to be capitalized in accordance with GAAP.

“Capital Lease” means a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP.

“Cash Equivalents” means (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the
full faith and credit of the United States, in each case maturing within 1 year from the date of
acquisition thereof, (b) marketable direct obligations issued or fully guaranteed by any state of
the United States or any political subdivision of any such state or any public instrumentality
thereof maturing within 1 year from the date of acquisition thereof and, at the time of
acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Rating
Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more
than 270 days from the date of creation thereof and, at the time of acquisition, having a rating of
at least A-1 from S&P or at least P-1 from Moody’s, (d) certificates of deposit, time deposits,
overnight bank deposits or bankers’ acceptances maturing within 1 year from the date of acquisition
thereof issued by any bank organized under the laws of the United States or any state thereof or
the District of Columbia or any United States branch of a foreign bank having at the date of
acquisition thereof combined capital and surplus of not less than $250,000,000, (e) Deposit
Accounts maintained with (i) any bank that satisfies the criteria described in clause (d) above, or
(ii) any other bank organized under the laws of the United States or any state thereof so long as
the full amount maintained with any such other bank is insured by the Federal Deposit Insurance
Corporation, (f) repurchase obligations of any commercial bank satisfying the requirements of
clause (d) of this definition or recognized securities dealer having combined capital and surplus
of not less than $250,000,000, having a term of not more than seven days, with respect to
securities satisfying the criteria in clauses (a) or (d) above, (g) debt securities with maturities
of six months or less from the date of acquisition backed by standby letters of credit issued by
any commercial bank satisfying the criteria described in clause (d) above, and (h) Investments in
money market funds substantially all of whose assets are invested in the types of assets described
in clauses (a) through (g) above.

“CFC” means a controlled foreign corporation (as that term is defined in the IRC) and
any Subsidiary of a controlled foreign corporation.

“Change of Control” means that (a) Permitted Holders fail to own and control, directly
or indirectly, 51%, or more, of the Stock of Parent having the right to vote for the election of
members of the Board of Directors, (b) any “person” or “group” (within the meaning of Sections
13(d) and 14(d) of the Exchange Act), other than Permitted Holders, becomes the beneficial owner
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 20%, or more, of the
Stock of Parent having the right to vote for the election of members of the Board of Directors (c)
a majority of the members of the Board of Directors do not constitute Continuing Directors, or (d)
Parent fails to own and control, directly or indirectly, 100% of the Stock of each other Loan
Party.

“Closing Date” means the date of the making of the initial Advance (or other extension
of credit) hereunder.

“Code” means the New York Uniform Commercial Code, as in effect from time to time.

“Collateral” means all assets and interests in assets and proceeds thereof now owned
or hereafter acquired by Parent or its Subsidiaries in or upon which a Lien is granted by such
Person in favor of Agent or the Lenders under any of the Loan Documents.

“Collateral Access Agreement” means a landlord waiver, bailee letter, or
acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in
possession of, having a Lien upon, or having rights or interests in Parent’s or its Subsidiaries’
books and records, Equipment, or Inventory, in each case, in form and substance reasonably
satisfactory to Agent.

“Collections” means all cash, checks, notes, instruments, and other items of payment
(including insurance proceeds, cash proceeds of asset sales, rental proceeds, and tax refunds).

“Commitment” means, with respect to each Lender, its Commitment, and, with respect to
all Lenders, their Commitments, in each case as such Dollar amounts are set forth beside such
Lender’s name under the applicable heading on Schedule C-1 or in the Assignment and
Acceptance pursuant to which such Lender became a Lender hereunder, as such amounts may be reduced
or increased from time to time pursuant to assignments made in accordance with the provisions of
Section 13.1 of the Agreement.

“Compliance Certificate” means a certificate substantially in the form of Exhibit
C-1 delivered by the chief financial officer of Parent to Agent.

“Confidential Information” has the meaning specified therefor in Section
17.9(a) of the Agreement.

“Continuing Director” means (a) any member of the Board of Directors who was a
director (or comparable manager) of Parent on the Closing Date, and (b) any individual who becomes
a member of the Board of Directors after the Closing Date if such individual was approved,
appointed or nominated for election to the Board of Directors by either the Permitted Holders or a
majority of the Continuing Directors, but excluding any such individual originally proposed for
election in opposition to the Board of Directors in office at the Closing Date in an actual or
threatened election contest relating to the election of the directors (or comparable managers) of
Parent and whose initial assumption of office resulted from such contest or the settlement thereof.

“Control Agreement” means a control agreement, in form and substance reasonably
satisfactory to Agent, executed and delivered by Parent or one of its Subsidiaries, Agent, and the
applicable securities intermediary (with respect to a Securities Account) or bank (with respect to
a Deposit Account).

“Controlled Account Agreement” has the meaning specified therefor in the Security
Agreement.

“Copyright Security Agreement” has the meaning specified therefor in the Security
Agreement.

“Daily Balance” means, as of any date of determination and with respect to any
Obligation, the amount of such Obligation owed at the end of such day.

“Default” means an event, condition, or default that, with the giving of notice, the
passage of time, or both, would be an Event of Default.

“Defaulting Lender” means any Lender that fails to make any Advance (or other
extension of credit) that it is required to make hereunder on the date that it is required to do so
hereunder.

“Defaulting Lender Rate” means (a) for the first 3 days from and after the date the
relevant payment is due, the Base Rate, and (b) thereafter, the interest rate then applicable to
Advances that are Base Rate Loans (inclusive of the Base Rate Margin applicable thereto).

“DGCL” means the Delaware General Corporations Law as amended from time to time.

“Deposit Account” means any deposit account (as that term is defined in the Code).

“Designated Account” means the Deposit Account of Administrative Borrower identified
on Schedule D-1.

“Designated Account Bank” has the meaning specified therefor in Schedule D-1.

“Dilution” means, as of any date of determination, a percentage, based upon the
experience of a prior period of duration selected by Agent in its Permitted Discretion (which
period of duration shall not be less than 90 consecutive days), that is the result of
dividing the Dollar amount of (a) bad debt write-downs, discounts, advertising allowances, credits,
or other dilutive items with respect to Borrowers’ Accounts during such period (but, in any event,
only to the extent that such amounts are included in billings per clause (b) of this definition),
by (b) Borrowers’ billings with respect to Accounts during such period.

“Dilution Reserve” means, as of any date of determination, an amount sufficient to
reduce the advance rate against Eligible Accounts by 1 percentage point for each percentage point
by which Dilution is in excess of 5%.

“Dollars” or “$” means United States dollars.

“Dollar Equivalent” means, on any date of determination, (a) with respect to any
amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in any
Alternative Currency, the equivalent in Dollars of such amount, determined by the Agent using the
applicable Exchange Rate.

“Domestic Subsidiary” means any Subsidiary of Parent that is not a CFC..

“EBITDA” means, with respect to any fiscal period, Parent’s consolidated net earnings
(or loss), minus (a) the sum of (without duplication) (i) extraordinary gains, (ii) interest
income, and (iii) non-cash gains arising from asset dispositions not in the ordinary course of
business, in each case, for such period, plus (b) the sum of (without duplication) (i) non-cash
extraordinary losses, (ii) non-cash stock compensation expenses, (iii) non-cash losses arising from
asset dispositions not in the ordinary course of business, (iv) interest expense, (v) income taxes,
(vi) depreciation, and (vii) amortization (including deferred financing costs and intangibles), in
each case, for such period, in each case, determined on a consolidated basis in accordance with
GAAP. For the purposes of calculating EBITDA for any period of 4 consecutive fiscal quarters
(each, a “Reference Period”), if at any time during such Reference Period (and after the
Closing Date), Parent or any of its Subsidiaries shall have made a Permitted Acquisition, EBITDA
for such Reference Period shall be calculated after giving pro forma effect thereto (including pro
forma adjustments arising out of events which are directly attributable to such Permitted
Acquisition, are factually supportable, and are expected to have a continuing impact, in each case
to be mutually and reasonably agreed upon by Parent and Agent) or in such other manner acceptable
to Agent as if any such Permitted Acquisition or adjustment occurred on the first day of such
Reference Period.

“Ecko Lender License Agreement” means a license agreement among Agent, Ecko.Complex,
LLC, the Borrowers, Skechers International II, and Skechers S.A.R.L. on terms and conditions and
subject to documentation satisfactory to Agent.

“Ecko License Agreement” means that certain Trademark License Agreement, dated April
7, 2003, by and among Ecko.Complex, LLC, Skechers U.S.A., Inc. II, Skechers International II, and
Skechers S.A.R.L.

“Eligible Accounts” means those Accounts created by a Borrower in the ordinary course
of its business, that arise out of its sale of goods or rendition of services, that comply with
each of the representations and warranties respecting Eligible Accounts made in the Loan Documents,
and that are not excluded as ineligible by virtue of one or more of the excluding criteria set
forth below; provided, however, that such criteria may be revised from time to time
by Agent in Agent’s Permitted Discretion to address the results of any audit performed by Agent
from time to time after the Closing Date. In determining the amount to be included, Eligible
Accounts shall be calculated net of customer deposits and unapplied cash. Eligible Accounts shall
not include the following:

(a) Accounts that the Account Debtor has failed to pay within 90 days of original invoice date
or Accounts that the Account Debtor has failed to pay within 60 days of their original due date

(b) Accounts with selling terms of more than 60 days, other than up to $2,500,000 of
Borrowers’ Accounts outstanding at any one time with selling terms of more than 60 days but less
than 90 days,

(c) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts
owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above,

(d) Accounts with respect to which the Account Debtor is an Affiliate of a Borrower or an
employee of a Borrower or any Affiliate of a Borrower,

(e) Accounts arising in a transaction wherein goods are placed on consignment or are sold
pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other
terms by reason of which the payment by the Account Debtor may be conditional,

(f) Accounts that are not payable in Dollars,

(g) Accounts with respect to which the Account Debtor either (i) does not maintain its chief
executive office in the United States, or (ii) is not organized under the laws of the United States
or any state thereof, or (iii) is the government of any foreign country or sovereign state, or of
any state, province, municipality, or other political subdivision thereof, or of any department,
agency, public corporation, or other instrumentality thereof, unless (x) the Account is supported
by an irrevocable letter of credit reasonably satisfactory to Agent (as to form, substance, and
issuer or domestic confirming bank) that has been delivered to Agent and is drawable by Agent
either as the originally named beneficiary or by virtue of Agent having control (as defined in
Section 9-107 of the Code) over such letter of credit, (y) the Account is covered by credit
insurance in form, substance, and amount, and by an insurer, reasonably satisfactory to Agent or
(z) the Account is otherwise satisfactory to Agent, in its sole discretion,

(h) Accounts with respect to which the Account Debtor is either (i) the United States or any
department, agency, or instrumentality of the United States (exclusive, however, of Accounts with
respect to which such Borrower has complied, to the reasonable satisfaction of Agent, with the
Assignment of Claims Act, 31 USC §3727), or (ii) any state of the United States, but only to the
extent of the amount by which the aggregate amount of Borrowers’ Accounts that would be ineligible
pursuant to this clause (h) exceeds $2,500,000,

(i) Accounts with respect to which the Account Debtor is a creditor of a Borrower, has or has
asserted a right of setoff, or has disputed its obligation to pay all or any portion of the
Account, to the extent of such claim, right of setoff, or dispute,

(j) Accounts with respect to an Account Debtor whose total obligations owing to Borrowers
exceed 10% (such percentage, as applied to a particular Account Debtor, being subject to reduction
by Agent if the creditworthiness of such Account Debtor materially deteriorates) of all Eligible
Accounts, to the extent of the obligations owing by such Account Debtor in excess of such
percentage; provided, however, that, in each case, the amount of Eligible Accounts
that are excluded because they exceed the foregoing percentage shall be determined by Agent based
on all of the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the
foregoing concentration limit; provided, further, however, that the
foregoing percentage shall be increased to 15% (such percentage, as applied to a particular Account
Debtor, being subject to reduction by Agent if the creditworthiness of such Account Debtor
materially deteriorates) for each of (i) Famous Footwear, (ii) Kohl’s Corporation, (iii) J. C.
Penney Company, Inc., and (iv) Ross Stores, Inc.,

(k) Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding,
is not Solvent, has gone out of business, or as to which a Borrower has received notice of an
imminent Insolvency Proceeding or a material impairment of the financial condition of such Account
Debtor,

(l) Accounts, the collection of which, Agent, in its Permitted Discretion, believes to be
doubtful by reason of the Account Debtor’s financial condition,

(m) Accounts that are not subject to a valid and perfected first priority Agent’s Lien,

(n) Accounts with respect to which (i) the goods giving rise to such Account have not been
shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not
been performed and billed to the Account Debtor,

(o) Accounts with respect to which the Account Debtor is a Sanctioned Person or Sanctioned
Entity,

(p) Accounts that represent the right to receive progress payments or other advance billings
that are due prior to the completion of performance by the applicable Borrower of the subject
contract for goods or services,

(q) Accounts that are acquired in connection with a Permitted Acquisition or are Accounts of a
Person acquired in a Permitted Acquisition, until the completion of an appraisal and field
examination of such Accounts, in each case, reasonably satisfactory to Agent,

(r) Accounts that constitute debit memos,

(s) Accounts that represent the right to receive payment in connection with the sale of
Inventory for purposes of display or demonstration, or

(t) Accounts with respect to which a Borrower has agreed to grant the Account Debtor a
discount on the amount of the Account if the Account Debtor pays the discounted amount of the
Account within a certain time period, solely to the extent of the proposed discount with respect to
the applicable Account.

“Eligible In-Transit Inventory” means those items of Inventory that do not qualify as
Eligible Landed Inventory solely because they are not in a location set forth on Schedule
E-1 or in transit among such locations and they are the subject of a bill of lading or other
similar document of title, but as to which, in each case, (a) such Inventory currently is in
transit (whether by vessel, air, or land) to a location set forth on Schedule E-1 that is
the subject of a Collateral Access Agreement, (b) title to such Inventory has passed to the
applicable Borrower, (c) such Inventory is insured against types of loss, damage, hazards, and
risks, and in amounts, satisfactory to Agent in its Permitted Discretion, (d) such Inventory either
(i) is the subject of a negotiable bill of lading (x) that is consigned to Agent (either directly
or by means of endorsements), (y) that was issued by the carrier respecting the subject Inventory,
and (z) either (1) that is the subject of a telefacsimile copy that Agent has received from the
applicable Issuing Lender or Underlying Issuer, as applicable, which issued the Letter of Credit
and as to which Agent also has received a confirmation from such Person that such negotiable bill
of lading is in-transit by air-courier to Agent (or a customs broker that has executed in favor of
Agent a customs broker agreement that is reasonably satisfactory to Agent) or (2) that is in the
possession of Agent (or a customs broker that has executed in favor of Agent a customs broker
agreement that is reasonably satisfactory to Agent), (ii) is the subject of a negotiable cargo
receipt and is not the subject of a bill of lading (other than a negotiable bill of lading
consigned to, and in the possession of, a consolidator or Agent, or their respective agents) and
such negotiable cargo receipt (x) is consigned to Agent (either directly or by means of
endorsements), (y) was issued by a consolidator respecting the subject Inventory, and (z) either
(1) that is the subject of a telefacsimile copy that Agent has received from the applicable
Issuing Lender or Underlying Issuer, as applicable, which issued the Letter of Credit and as to
which Agent also has received a confirmation from such Person that such negotiable cargo receipt is
in-transit by air-courier to Agent (or a customs broker that has executed in favor of Agent a
customs broker agreement that is reasonably satisfactory to Agent) or (2) that is in the possession
of Agent (or a customs broker that has executed in favor of Agent a customs broker agreement that
is reasonably satisfactory to Agent), or (iii) so long as a satisfactory Bailee and Agency
Agreement is in full force and effect, (x) is the subject of a bill of lading (1) that is consigned
to Agent (either directly or by means of endorsements), (2) that was issued by the applicable
Bailee & Agent party to such Bailee and Agency Agreement as the carrier respecting the subject
Inventory, and (3) that is in the possession of Agent or such Bailee & Agent that is party to such
Bailee and Agency Agreement, (y) is in the possession of the Bailee & Agent that is party to such
Bailee and Agency Agreement, and (z) together with the applicable bill of lading, is subject to the
terms of such Bailee and Agency Agreement, which has been executed by the applicable Bailee & Agent
and the Borrowers and delivered to Agent, (e) Parent has provided a certificate to the Agent that
certifies that, to the Knowledge of the Parent, such Inventory (A) meets all of such Borrowers’
representations and warranties contained in the Loan Documents concerning Eligible In-Transit
Inventory and Eligible Landed Inventory, (B) that it is not excluded by any of the excluding
criteria in the definitions of Eligible In-Transit Inventory or Eligible Landed Inventory, other
than because (i) such Inventory is not in a location set forth on Schedule E-1 or in
transit among such locations or (ii) such Inventory is the subject of a bill of lading or other
document of title, and (C) that it knows of no reason why such Inventory would not be accepted by a
Borrower when it delivered to a Borrower or a customs broker on behalf of a Borrower, and that the
shipment as evidenced by the documents conforms to the related order documents and (f) the full
purchase price for such Inventory either (i) has been paid in full or (ii) is supported by a
Qualified Import Letter of Credit, and (g) if clause (f)(ii) applies, the Qualified Import Letter
of Credit has been drawn upon in full and the Issuing Bank or Underlying Issuer, as applicable, has
honored such drawing.

“Eligible Inventory” means Eligible Landed Inventory or Eligible In-Transit Inventory.

“Eligible Landed Inventory” means Inventory consisting of first quality finished goods
held for sale in the ordinary course of a Borrower’s business, that complies with each of the
representations and warranties respecting Eligible Inventory made in the Loan Documents, and that
is not excluded as ineligible by virtue of one or more of the excluding criteria set forth below;
provided, however, that such criteria may be revised from time to time by Agent in
Agent’s Permitted Discretion to address the results of any audit or appraisal performed by Agent
from time to time after the Closing Date. In determining the amount to be so included, Inventory
shall be valued at the lower of cost or market on a basis consistent with Borrowers’ historical
accounting practices. An item of Inventory shall not be included in Eligible Inventory if:

(a) a Borrower does not have good, valid, and marketable title thereto,

(b) a Borrower does not have actual and exclusive possession thereof (either directly or
through a bailee or agent of a Borrower),

(c) it is not located at one of the locations in the continental United States set forth on
Schedule E-1 and is not in-transit from one such location to another such location,

(d) it is in-transit to or from a location of a Borrower (other than in-transit from one
location set forth on Schedule E-1 to another location set forth on Schedule E-1),

(e) it is located on real property leased by a Borrower (other than a retail store that is
owned or operated by a Loan Party) or in a contract warehouse, in each case, unless it is subject
to a Collateral Access Agreement executed by the lessor or warehouseman, as the case may be, and
unless it is segregated or otherwise separately identifiable from goods of others, if any, stored
on the premises,

(f) it is the subject of a bill of lading or other similar document of title,

(g) it is not subject to a valid and perfected first priority Agent’s Lien,

(h) it consists of goods returned or rejected by a Borrower’s customers (other than such goods
that are undamaged and resalable in the ordinary course of a Borrower’s business),

(i) it consists of goods that are discontinued, obsolete or slow moving, restrictive or custom
items, work-in-process, raw materials, or goods that constitute spare parts, packaging and shipping
materials, supplies used or consumed in a Borrower’s business, bill and hold goods, defective
goods, “seconds,” or Inventory acquired on consignment,

(j) it is subject to third party trademark, licensing or other proprietary rights, unless the
Agent is reasonably satisfied that such Inventory can be sold by the Agent on satisfactory terms
upon and after the occurrence of an Event of a Default,

(k) a Borrower does not have sufficient rights to be able to dispose of such Inventory in the
ordinary course of business, or

(l) it was acquired in connection with a Permitted Acquisition, until the completion of an
appraisal and field examination of such Inventory, in each case, reasonably satisfactory to Agent
(which appraisal and field examination may be conducted prior to the closing of such Permitted
Acquisition).

“Environmental Action” means any written complaint, summons, citation, notice,
directive, order, claim, litigation, investigation, judicial or administrative proceeding,
judgment, letter, or other written communication from any Governmental Authority, or any third
party involving violations of Environmental Laws or releases of Hazardous Materials (a) from any
assets, properties, or businesses of any Borrower, any Subsidiary of a Borrower, or any of their
predecessors in interest, (b) from adjoining properties or businesses, or (c) from or onto any
facilities which received Hazardous Materials generated by any Borrower, any Subsidiary of a
Borrower, or any of their predecessors in interest.

“Environmental Law” means any applicable federal, state, provincial, foreign or local
statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and
enforceable written policy, or rule of common law now or hereafter in effect and in each case as
amended, or any judicial or administrative interpretation thereof, including any judicial or
administrative order, consent decree or judgment, in each case, to the extent binding on Parent or
its Subsidiaries, relating to the environment, the effect of the environment on employee health, or
Hazardous Materials, in each case as amended from time to time.

“Environmental Liabilities” means all liabilities, monetary obligations, losses,
damages, punitive damages, consequential damages, treble damages, costs and expenses (including all
reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of
investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a
result of any claim or demand, or Remedial Action required, by any Governmental Authority or any
third party, and which relate to any Environmental Action.

“Environmental Lien” means any Lien in favor of any Governmental Authority for
Environmental Liabilities.

“Equipment” means equipment (as that term is defined in the Code).

“Equipment Loan” means any loan or loans the proceeds of which are used to purchase
Equipment.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute thereto.

“ERISA Affiliate” means (a) any Person subject to ERISA whose employees are treated as
employed by the same employer as the employees of Parent or its Subsidiaries under IRC Section
414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the
same employer as the employees of Parent or its Subsidiaries under IRC Section 414(c), (c) solely
for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA
that is a member of an affiliated service group of which Parent or any of its Subsidiaries is a
member under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412
of the IRC, any Person subject to ERISA that is a party to an arrangement with Parent or any of its
Subsidiaries and whose employees are aggregated with the employees of Parent or its Subsidiaries
under IRC Section 414(o).

“Euro” means the euro referred to in Council Regulation (EC) No. 1103/97 dated June
17, 1997, passed by the Council of the European Union, or, if different, the then lawful currency
of the member states of the European Union that participate in the third stage of Economic and
Monetary Union.

“Event of Default” has the meaning specified therefor in Section 8 of the
Agreement.

“Excess Availability” means, as of any date of determination, the amount equal to
Availability minus the aggregate amount, if any, of all trade payables of Parent and its
Subsidiaries aged in excess of historical levels with respect thereto and all book overdrafts of
the Loan Parties in excess of historical practices with respect thereto, in each case as determined
by Agent in its Permitted Discretion.

“Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to
time.

“Exchange Rate” means and refers to the nominal rate of exchange (vis-à-vis Dollars)
for a currency other than Dollars published in The Wall Street Journal (Eastern Edition) on the
date of determination (which shall be a Business Day on which The Wall Street Journal (Eastern
Edition) is published), expressed as the number of units of such other currency per one Dollar.

“Existing Acceptances” means the Acceptances described on Schedule E-2.

“Existing Credit Facility” means that certain Second Amended and Restated Loan and
Security Agreement, dated as of May 31, 2006 (as amended), by and among the Borrowers, The CIT
Group/Commercial Services, Inc., as agent for the lenders party thereto, Wachovia Capital Markets,
LLC, as lead arranger, and the other lenders party thereto.

“Existing Letters of Credit” means the letters of credit described on Schedule
E-3.

“Fee Letter” means that certain fee letter between Borrowers and Agent, in form and
substance reasonably satisfactory to Agent.

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal to, for each day during such period, the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of the quotations for
such day on such transactions received by Agent from three Federal funds brokers of recognized
standing selected by it.

“Financial Covenant Period” means a period which shall commence on any date (the
“Commencement Date”) on which Excess Availability is less than $50,000,000 and shall
continue until the day on which Excess Availability on each day during a period of 30 consecutive
days after the Commencement Date has been greater than or equal to $50,000,000.

“Fixed Charges” means, with respect to any fiscal period and with respect to Parent
determined on a consolidated basis in accordance with GAAP, the sum, without duplication, of (a)
Interest Expense paid or required to be paid in cash during such period, (b) principal payments in
respect of Indebtedness that are required to be paid during such period, (c) all federal, state,
and local income taxes paid or required to be paid in cash during such period, (d) Capital
Expenditures made or incurred during such period (other than Capital Expenditures financed with
proceeds of Indebtedness (other than Advances)), and (e) all Restricted Junior Payments paid
(whether in cash or other property, other than common Stock, and other than Restricted Junior
Payments permitted to be made pursuant to Section 6.9(a) of the Agreement) during such
period.

“Fixed Charge Coverage Ratio” means, with respect to Parent for any period, the ratio
of (i) EBITDA for such period, to (ii) Fixed Charges for such period.

“Flow of Funds Agreement” means a flow of funds agreement, in form and substance
reasonably satisfactory to Agent, executed and delivered by Borrowers and Agent.

“Foreclosed Borrower” has the meaning specified therefor in Section 2.14
of the Agreement.

“Foreign Lender” means any Lender or Participant that is not a United States person
within the meaning of IRC section 7701(a)(30).

“Foreign Subsidiary” means any Person that is both (a) a direct or indirect
Subsidiary of Parent and (b) a CFC.

“Funding Date” means the date on which a Borrowing occurs.

“Funding Losses” has the meaning specified therefor in Section 2.12(b)(ii) of
the Agreement.

“GAAP” means generally accepted accounting principles as in effect from time to time
in the United States, consistently applied.

“Governing Documents” means, with respect to any Person, the certificate or articles
of incorporation, by-laws, or other organizational documents of such Person.

“Governmental Authority” means any federal, state, local, or other governmental or
administrative body, instrumentality, board, department, or agency or any court, tribunal,
administrative hearing body, arbitration panel, commission, or other similar dispute-resolving
panel or body.

“Guarantors” means (a) each Domestic Subsidiary of Parent (other than (i) any Borrower
or (ii) at anytime prior to the date Yale is required to become a Guarantor pursuant to Section
5.11(b) of the Agreement, Yale) and (b) each other Person that becomes a guarantor after the
Closing Date pursuant to Section 5.11 of the Agreement, and “Guarantor” means any
one of them.

“Guaranty” means that certain general continuing guaranty executed and delivered by
each Guarantor in favor of Agent, for the benefit of the Lender Group and the Bank Product
Providers, in form and substance reasonably satisfactory to Agent.

“Hazardous Materials” means (a) substances that are defined or listed in, or otherwise
classified pursuant to, any applicable laws or regulations as “hazardous substances,” “hazardous
materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define,
list, or classify substances by reason of deleterious properties such as ignitability, corrosivity,
reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or
petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids,
produced waters, and other wastes associated with the exploration, development, or production of
crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any
radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil
or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per
million.

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

“Holdout Lender” has the meaning specified therefor in Section 14.2(a) of the
Agreement.

“Immaterial Subsidiary” means any non-operating Subsidiary of the Loan Parties that
does not hold or own assets with an aggregate net book value of greater than $1,000,000; and
“Immaterial Subsidiaries” means all of them; provided, however, that if any
Subsidiary that previously constituted an Immaterial Subsidiary ever either (a) holds or owns
assets with an aggregate net book value of greater than $1,000,000 or (b) becomes an operating
Subsidiary, then such Subsidiary shall immediately and automatically cease to be an Immaterial
Subsidiary and the Borrowers shall be required to comply with the provisions of Section
5.11 of the Agreement with respect to such Subsidiary.

“Increase Effective Date” has the meaning specified therefor in Section
2.2(a).

“Increase Joinder” has the meaning specified therefor in Section 2.2(c).

“Indebtedness” means (a) all obligations for borrowed money, (b) all obligations
evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other
obligations in respect of letters of credit, bankers acceptances, or other financial products, (c)
all obligations as a lessee under Capital Leases, (d) all obligations or liabilities of others
secured by a Lien on any asset of a Person, irrespective of whether such obligation or liability is
assumed, (e) all obligations to pay the deferred purchase price of assets (other than trade
payables incurred in the ordinary course of business and repayable in accordance with customary
trade practices), (f) all obligations owing under Hedge Agreements (which amount shall be
calculated based on the amount that would be payable by such Person if the Hedge Agreement were
terminated on the date of determination), (g) any Prohibited Preferred Stock, and (h) any
obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed,
endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that
constitutes Indebtedness under any of clauses (a) through (g) above. For purposes of this
definition, (i) the amount of any Indebtedness represented by a guaranty or other similar
instrument shall be the lesser of the principal amount of the obligations guaranteed and still
outstanding and the maximum amount for which the guaranteeing Person may be liable pursuant to the
terms of the instrument embodying such Indebtedness, and (ii) the amount of any Indebtedness
described in clause (d) above shall be the lower of the amount of the obligation and the fair
market value of the assets securing such obligation.

“Indemnified Liabilities” has the meaning specified therefor in Section 10.3
of the Agreement.

“Indemnified Person” has the meaning specified therefor in Section 10.3 of the
Agreement.

“Insolvency Proceeding” means any proceeding commenced by or against any Person under
any provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency
law, assignments for the benefit of creditors, formal or informal moratoria, compositions,
extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other
similar relief.

“Intercompany Subordination Agreement” means a subordination agreement executed and
delivered by Parent, each of the other Loan Parties, and Agent, the form and substance of which is
reasonably satisfactory to Agent.

“Interest Expense” means, for any period, the aggregate of the interest expense of
Parent for such period, determined on a consolidated basis in accordance with GAAP.

“Interest Period” means, with respect to each LIBOR Rate Loan, a period commencing on
the date of the making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the
conversion of a Base Rate Loan to a LIBOR Rate Loan) and ending 1, 2, or 3 months thereafter;
provided, however, that (a) interest shall accrue at the applicable rate based upon
the LIBOR Rate from and including the first day of each Interest Period to, but excluding, the day
on which any Interest Period expires, (b) any Interest Period that would end on a day that is not a
Business Day shall be extended to the next succeeding Business Day unless such Business Day falls
in another calendar month, in which case such Interest Period shall end on the next preceding
Business Day, (c) with respect to an Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day in the calendar
month at the end of such Interest Period), the Interest Period shall end on the last Business Day
of the calendar month that is 1, 2, or 3 months after the date on which the Interest Period began,
as applicable, and (d) Borrowers may not elect an Interest Period which will end after the Maturity
Date.

“Inventory” means inventory (as that term is defined in the Code).

“Inventory Advance Rate” means the lesser of (a) 70% and (b) the result of 85% times
the most recently determined Net Liquidation Percentage.

“Investment” means, with respect to any Person, any investment by such Person in any
other Person (including Affiliates) in the form of loans, guarantees, advances, capital
contributions (excluding (a) commission, travel, and similar advances to officers and employees of
such Person made in the ordinary course of business, and (b) bona fide Accounts arising in the
ordinary course of business consistent with past practice), or acquisitions of Indebtedness, Stock,
or all or substantially all of the assets of such other Person (or of any division or business line
of such other Person), and any other items that are or would be classified as investments on a
balance sheet prepared in accordance with GAAP.

“IRC” means the Internal Revenue Code of 1986, as in effect from time to time.

“Issuing Lender” means WFF, BOA, or any other Lender that, at the request of Borrowers
and with the consent of Agent, agrees, in such Lender’s sole discretion, to become an Issuing
Lender for the purpose of issuing Letters of Credit or Reimbursement Undertakings or accepting
Acceptances pursuant to Section 2.11 of the Agreement.

“Knowledge” means, the actual knowledge of the executive officers of Parent after
reasonable inquiry.

“Lender” and “Lenders” have the respective meanings set forth in the preamble
to the Agreement, and shall include any other Person made a party to the Agreement in accordance
with the provisions of Section 13.1 of the Agreement.

“Lender Group” means each of the Lenders (including each Issuing Lender) and Agent, or
any one or more of them.

“Lender Group Expenses” means all (a) out-of-pocket costs or expenses (including
taxes, and insurance premiums) required to be paid by Parent or its Subsidiaries under any of the
Loan Documents that are paid, advanced, or incurred by the Lender Group, (b) reasonable
out-of-pocket fees or charges paid or incurred by Agent in connection with the Lender Group’s
transactions with Parent or its Subsidiaries under any of the Loan Documents, including, all actual
fees or charges for photocopying, notarization, couriers and messengers, telecommunication, public
record searches (including tax lien, litigation, and UCC searches and including searches with the
patent and trademark office, the copyright office, or the department of motor vehicles), filing,
recording, publication, appraisal (including periodic collateral appraisals or business valuations
to the extent of the fees and charges (and up to the amount of any limitation) contained in the
Agreement or the Fee Letter), real estate surveys, real estate title policies and endorsements, and
environmental audits, (c) out-of-pocket costs and expenses incurred by Agent in the disbursement of
funds to Borrowers or other members of the Lender Group (by wire transfer or otherwise), (d)
out-of-pocket charges paid or incurred by Agent resulting from the dishonor of checks payable by or
to any Loan Party, (e) reasonable out-of-pocket costs and expenses paid or incurred by the Lender
Group to correct any default or enforce any provision of the Loan Documents, or during the
continuance of an Event of Default, in gaining possession of, maintaining, handling, preserving,
storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any
portion thereof, irrespective of whether a sale is consummated, (f) reasonable out-of-pocket audit
fees and expenses (including travel, meals, and lodging) of Agent related to any inspections or
audits to the extent of the fees and charges (and up to the amount of any limitation) contained in
the Agreement or the Fee Letter, (g) reasonable out-of-pocket costs and expenses of third party
claims or any other suit paid or incurred by the Lender Group in enforcing or defending the Loan
Documents or in connection with the transactions contemplated by the Loan Documents or the Lender
Group’s relationship with Parent or any of its Subsidiaries, (h) Agent’s reasonable out-of-pocket
costs and expenses (including reasonable attorneys fees) incurred in advising, structuring,
drafting, reviewing, administering (including travel, meals, and lodging), syndicating, or amending
the Loan Documents, and (i) Agent’s and each Lender’s reasonable out-of-pocket costs and expenses
(including reasonable attorneys, accountants, consultants, and other advisors fees and expenses)
incurred in terminating, enforcing (including attorneys, accountants, consultants, and other
advisors fees and expenses incurred in connection with a “workout,” a “restructuring,” or an
Insolvency Proceeding concerning Parent or any of its Subsidiaries or in exercising rights or
remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether suit
is brought, or in taking any Remedial Action concerning the Collateral.

“Lender Group Representatives” has the meaning specified therefor in Section
17.9 of the Agreement.

“Lender-Related Person” means, with respect to any Lender, such Lender, together with
such Lender’s Affiliates, officers, directors, employees, attorneys, and agents.

“Letter of Credit” means a letter of credit issued by an Issuing Lender or a letter of
credit issued by an Underlying Issuer, as the context requires.

“Letter of Credit Collateralization” means either (a) providing cash collateral
(pursuant to documentation reasonably satisfactory to Agent, including provisions that specify that
the Letter of Credit and Acceptance fee, and all usage charges set forth in the Agreement will
continue to accrue while the Letters of Credit or Acceptances, as applicable, are outstanding) to
be held by Agent for the benefit of those Lenders with a Commitment in an amount equal to the sum
of (i) 105% of the Letter of Credit Usage composed of Letters of Credit or Acceptances denominated
in Dollars and (ii) 115% of the balance of the Letter of Credit Usage, and, in each case, together
with an agreement to replenish such cash collateral as necessary to maintain at all times cash
collateral in accordance with the requirements set forth above, (b) causing the Underlying Letters
of Credit to be returned to the applicable Issuing Lender, or (c) providing Agent with a standby
letter of credit, in form and substance reasonably satisfactory to Agent, from a commercial bank
acceptable to Agent (in its sole discretion) in an amount equal to the sum of (i) 105% of the
Letter of Credit Usage composed of Letters of Credit denominated in Dollars and (ii) 115% of the
balance of Letter of Credit Usage (it being understood that the Letter of Credit fee and all usage
charges set forth in the Agreement will continue to accrue while the Letters of Credit or
Acceptances, as applicable, are outstanding and that any such fees that accrue must be an amount
that can be drawn under any such standby letter of credit) and together with an agreement to
provide additional cash collateral or standby letters of credit as necessary to maintain at all
times cash collateral in accordance with the requirements set forth above.

“Letter of Credit Disbursement” means a payment made by any Issuing Lender or any
Underlying Issuer pursuant to a Letter of Credit.

“Letter of Credit Usage” means, as of any date of determination, the sum of (a) the
aggregate undrawn amount of all outstanding Letters of Credit plus (b) the aggregate amount all
outstanding Acceptances.

“LIBOR Deadline” has the meaning specified therefor in Section 2.12(b)(i) of
the Agreement.

“LIBOR Notice” means a written notice in the form of Exhibit L-1.

“LIBOR Option” has the meaning specified therefor in Section 2.12(a) of the
Agreement.

“LIBOR Replacement Lender” has the meaning specified therefor in Section
2.12(d)(iii) of the Agreement.

“LIBOR Rate” means, for each Interest Period for each LIBOR Rate Loan, the rate per
annum determined by Agent by dividing (a) the Base LIBOR Rate for such Interest Period, by (b) 100%
minus the Reserve Percentage. The LIBOR Rate shall be adjusted on and as of the effective day of
any change in the Reserve Percentage.

“LIBOR Rate Loan” means each portion of an Advance that bears interest at a rate
determined by reference to the LIBOR Rate.

“LIBOR Rate Margin” means, as of any date of determination (with respect to any
portion of the outstanding Advances on such date that is a LIBOR Rate Loan), the applicable margin
set forth in the following table that correspond to the most recent Average Daily Availability
Calculation determined by Agent in its reasonable discretion; provided, however,
that for the period from the Closing Date through September 30, 2009, the LIBOR Rate Margin shall
be at the margin in the row styled “Level III”:

	 	 	 	 	 
	Level
	 	Average Daily Availability

	 	LIBOR Rate Margin
	 
	 	 

	 	 
	I
	 	If the Average Daily Availability is less

$75,000,000

	 	4.25 percentage points

	 
	 	 

	 	 
	II
	 	If the Average Daily Availability is greater

than or equal to $75,000,000 and less than

$150,000,000

	 	4.00 percentage points

	 
	 	 

	 	 
	III
	 	If the Average Daily Availability is greater

than or equal to $150,000,000

	 	3.75 percentage points

	 
	 	 

	 	 

The LIBOR Rate Margin shall be based upon the most recent Average Daily Availability
Calculation, which will be calculated by Agent in its reasonable discretion based on Average Daily
Availability during the preceding fiscal quarter. The LIBOR Rate Margin shall be re-determined
quarterly by Agent using such methods in its reasonable discretion and any change to the LIBOR Rate
Margin based on the Average Daily Availability as of the end of any fiscal quarter shall be
effective as of the first day of the immediately following fiscal quarter.

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge,
deposit arrangement, encumbrance, easement, lien (statutory or other), security interest, or other
security arrangement and any other preference, priority, or preferential arrangement of any kind or
nature whatsoever, including any conditional sale contract or other title retention agreement, the
interest of a lessor under a Capital Lease and any synthetic or other financing lease having
substantially the same economic effect as any of the foregoing.

“Loan Account” has the meaning specified therefor in Section 2.9 of the
Agreement.

“Loan Documents” means the Agreement, the Acceptances, the Bank Product Agreements,
any Borrowing Base Certificate, the Controlled Account Agreements, the Control Agreements, the
Copyright Security Agreement, the Fee Letter, the Flow of Funds Agreement, the Guaranty, the
Intercompany Subordination Agreement, the Letters of Credit, the Patent Security Agreement, the
Security Agreement, the Trademark Security Agreement, any note or notes executed by any Borrower in
connection with the Agreement and payable to any member of the Lender Group, any letter of credit
application entered into by any Borrower in connection with the Agreement, and any other agreement
entered into, now or in the future, by Parent or any of its Subsidiaries and any member of the
Lender Group in connection with the Agreement.

“Loan Party” means any Borrower or any Guarantor.

“Margin Stock” as defined in Regulation U of the Board of Governors of the Federal
Reserve System as in effect from time to time.

“Material Adverse Change” means (a) a material adverse change in the business,
operations, results of operations, assets, liabilities or condition (financial or otherwise) of
Parent and its Subsidiaries, taken as a whole, (b) a material impairment of Parent’s and its
Subsidiaries ability to perform their obligations under the Loan Documents to which they are
parties or of the Lender Group’s ability to enforce the Obligations or realize upon the Collateral,
or (c) a material impairment of the enforceability or priority of Agent’s Liens with respect to the
Collateral as a result of an action or failure to act on the part of Parent or its Subsidiaries.

“Material Contract” means, with respect to any Person, (a) each contract listed on
Schedule M-1 to the Agreement, (b) each contract or agreement to which such Person or any of its
Subsidiaries is a party involving aggregate consideration payable to or by such Person or such
Subsidiary of $5,000,000 or more (other than purchase orders in the ordinary course of the business
of such Person or such Subsidiary and other than contracts that by their terms may be terminated by
such Person or Subsidiary in the ordinary course of its business upon less than 60 days notice
without penalty or premium), and (c) all other contracts or agreements, the loss of which could
reasonably be expected to result in a Material Adverse Change.

“Maturity Date” has the meaning specified therefor in Section 3.3 of the
Agreement.

“Maximum Revolver Amount” means $250,000,000, as such amount may be increased in
accordance with Section 2.2 or decreased in accordance with Section 2.4(c).

“Moody’s” has the meaning specified therefor in the definition of Cash Equivalents.

“Net Cash Proceeds” means, with respect to any sale or disposition by Parent or any of
its Subsidiaries of assets, the amount of cash proceeds received (directly or indirectly) from time
to time (whether as initial consideration or through the payment of deferred consideration) by or
on behalf of Parent or its Subsidiaries, in connection therewith after deducting therefrom only (i)
the amount of any Indebtedness secured by any Permitted Lien on any asset (other than (A)
Indebtedness owing to Agent or any Lender under the Agreement or the other Loan Documents and (B)
Indebtedness assumed by the purchaser of such asset) which is required to be, and is, repaid in
connection with such sale or disposition, (ii) reasonable fees, commissions, and expenses related
thereto and required to be paid by Parent or such Subsidiary in connection with such sale or
disposition and (iii) taxes paid or payable to any taxing authorities by Parent or such Subsidiary
in connection with such sale or disposition, in each case to the extent, but only to the extent,
that the amounts so deducted are, at the time of receipt of such cash, actually paid or payable to
a Person that is not an Affiliate of Parent or any of its Subsidiaries, and are properly
attributable to such transaction.

“Net Liquidation Percentage” means the percentage of the book value of Borrowers’
Inventory that is estimated to be recoverable in an orderly liquidation of such Inventory net of
all associated costs and expenses of such liquidation, such percentage to be as determined from
time to time by an appraisal company selected by Agent.

“Non-LIBOR Lender” has the meaning specified therefor in Section 2.12(d)(iii)
of the Agreement.

“Obligations” means (a) all loans, Advances, debts, principal, interest (including any
interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether
allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding),
reimbursement or indemnification obligations with respect to Reimbursement Undertakings or with
respect to Letters of Credit or with respect to Acceptances, premiums, liabilities (including all
amounts charged to the Loan Account pursuant to the Agreement), obligations (including
indemnification obligations), fees (including the fees provided for in the Fee Letter), Lender
Group Expenses (including any fees or expenses that accrue after the commencement of an Insolvency
Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such
Insolvency Proceeding), guaranties, covenants, and duties of any kind and description owing by
Borrowers to the Lender Group pursuant to or evidenced by the Loan Documents and irrespective of
whether for the payment of money, whether direct or indirect, absolute or contingent, due or to
become due, now existing or hereafter arising, and including all interest not paid when due and all
other expenses or other amounts that Borrowers are required to pay or reimburse by the Loan
Documents or by law or otherwise in connection with the Loan Documents, and (b) all Bank Product
Obligations. Any reference in the Agreement or in the Loan Documents to the Obligations shall
include all or any portion thereof and any extensions, modifications, renewals, or alterations
thereof, both prior and subsequent to any Insolvency Proceeding.

“OFAC” means The Office of Foreign Assets Control of the U.S. Department of the
Treasury.

“Originating Lender” has the meaning specified therefor in Section 13.1(e) of
the Agreement.

“Overadvance” has the meaning specified therefor in Section 2.5 of the
Agreement.

“Parent” has the meaning specified therefor in the preamble to the Agreement.

“Participant” has the meaning specified therefor in Section 13.1(e) of the
Agreement.

“Participant Register” has the meaning set forth in Section 13.1(i) of the
Agreement.

“Patent Security Agreement” has the meaning specified therefor in the Security
Agreement.

“Patriot Act” has the meaning specified therefor in Section 4.18 of the
Agreement.

“Payoff Date” means the first date on which all of the Obligations are paid in full
and the Commitments of the Lenders are terminated.

“Permitted Acquisition” means any Acquisition so long as:

(a) no Default or Event of Default shall have occurred and be continuing or would result from
the consummation of the proposed Acquisition and the proposed Acquisition is consensual,

(b) no Indebtedness will be incurred, assumed, or would exist with respect to Parent or its
Subsidiaries as a result of such Acquisition, other than Indebtedness permitted under clause (g) or
(m) of the definition of Permitted Indebtedness and no Liens will be incurred, assumed, or would
exist with respect to the assets of Parent or its Subsidiaries as a result or such Acquisition
other than Permitted Liens,

(c) Borrowers have provided Agent with written confirmation, supported by reasonably detailed
calculations, that on a pro forma basis (including pro forma adjustments arising out of events
which are directly attributable to such proposed Acquisition, are factually supportable, and are
expected to have a continuing impact, in each case, determined as if the combination had been
accomplished at the beginning of the relevant period; such eliminations and inclusions to be
mutually and reasonably agreed upon by Borrowers and Agent) created by adding the historical
combined financial statements of Parent (including the combined financial statements of any other
Person or assets that were the subject of a prior Permitted Acquisition during the relevant period)
to the historical consolidated financial statements of the Person to be acquired (or the historical
financial statements related to the assets to be acquired) pursuant to the proposed Acquisition,
Parent and its Subsidiaries (i) would have been in compliance with the financial covenant (but only
if such financial covenant was required to be satisfied during such period as a result of the
commencement or existence of a Financial Covenant Period) set forth in Section 7.1 of the
Agreement for the 4 fiscal quarter period ended immediately prior to the proposed date of
consummation of such proposed Acquisition, (ii) are projected to be in compliance with the
financial covenant (but only if such financial covenant is projected to be required to be satisfied
during such period as a result of the commencement or existence of a Financial Covenant Period) set
forth in Section 7.1 of the Agreement for each 4 fiscal quarter period ended at the end of
each fiscal quarter during the four fiscal quarter period ended one year after the proposed date of
consummation of such proposed Acquisition, and (iii) projected to have Excess Availability plus
Qualified Cash in excess of $100,000,000 at all times during the 3 month period ended immediately
after the proposed date of consummation of such acquisition,

(d) Borrowers have provided Agent with their due diligence package relative to the proposed
Acquisition, including forecasted balance sheets, profit and loss statements, and cash flow
statements of the Person to be acquired, all prepared on a basis consistent with such Person’s
historical financial statements, together with appropriate supporting details and a statement of
underlying assumptions for the 1 year period following the date of the proposed Acquisition, on a
quarter by quarter basis), in form and substance (including as to scope and underlying assumptions)
reasonably satisfactory to Agent,

(e) Borrowers shall have Excess Availability plus Qualified Cash in an amount equal to or
greater than $100,000,000 immediately after giving effect to the consummation of the proposed
Acquisition (which shall include a pro forma accounting for the assets of the target company that
are eligible for inclusion in the Borrowing Base),

(f) Borrowers have provided Agent with written notice of the proposed Acquisition at least 15
days (or, in the case of a proposed Acquisition involving purchase consideration (including any
Acquired Indebtedness and any Indebtedness incurred in reliance on clause (m) of the definition of
Permitted Indebtedness) of $50,000,000 or more, 30 days) prior to the anticipated closing date of
the proposed Acquisition and, not later than 5 days (or, in the case of a proposed Acquisition
involving purchase consideration (including any Acquired Indebtedness and any Indebtedness incurred
in reliance on clause (m) of the definition of Permitted Indebtedness) of $50,000,000 or more, 15
days) prior to the anticipated closing date of the proposed Acquisition, copies of the acquisition
agreement and other material documents relative to the proposed Acquisition in substantially final
form, which agreement and documents must be reasonably acceptable to Agent,

(g) the assets being acquired (other than a de minimis amount of assets in relation to
Parent’s and its Subsidiaries’ total assets), or the Person whose Stock is being acquired, are
useful in or engaged in, as applicable, the business of Parent and its Subsidiaries or a business
reasonably related thereto,

(i) [intentionally omitted],

(j) the subject assets or Stock, as applicable, are being acquired directly by a Loan Party,
and, in connection therewith, the applicable Loan Party shall have complied with Section
5.11 or 5.12, as applicable, of the Agreement,

(k) the proposed Acquisition is not a merger with, or Acquisition by, an entity owned or
controlled by the Permitted Holders (other than Parent or a Subsidiary of Parent),

(l) the purchase consideration (including any Acquired Indebtedness and any Indebtedness
incurred in reliance on clause (m) of the definition of Permitted Indebtedness) payable in respect
of all Permitted Acquisitions (including the proposed Acquisition and including deferred payment
obligations) shall not exceed, when aggregated with the amount of Investments made pursuant to
clause (l) of the definition of Permitted Investments, $100,000,000 in the aggregate during the
term of the Agreement, and

(m) if a proposed Acquisition or series of related proposed Acquisitions involves purchase
consideration (including the amount of any Acquired Indebtedness and any Indebtedness incurred in
reliance on clause (m) of the definition of Permitted Indebtedness) of $50,000,000 or more, then,
if requested by Agent in its sole discretion, Agent shall have received an appraisal of Borrowers’
Inventory and Accounts by an appraiser reasonably satisfactory to Agent within the ninety day
period immediately preceding the anticipated closing date of the proposed Acquisition.

“Permitted Discretion” means a determination made in the exercise of reasonable (from
the perspective of a secured lender) business judgment.

“Permitted Dispositions” means:

(a) sales, abandonment, or other dispositions of Equipment or Inventory that is substantially
worn, damaged, obsolete or not used or useful in the ordinary course of business,

(b) sales of Inventory to buyers in the ordinary course of business,

(c) the use or transfer of money or Cash Equivalents in a manner that is not prohibited by the
terms of the Agreement or the other Loan Documents, including, in any event, forfeiture of deposits
in connection with proposed acquisitions that are not consummated,

(d) the licensing (a) on a non-exclusive basis, of patents, trademarks, copyrights, and other
intellectual property rights in the ordinary course of business or (b) on an exclusive basis, of
patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of
business so long as either (i) the patents, trademarks, copyrights, and other intellectual property
subject to such exclusive license are not owned by a Loan Party or the territory with respect to
which the exclusive license is granted does not include the United States or a territory within the
United States, or (ii) such exclusive license does not grant a right to use such patents,
trademarks, copyrights, and other intellectual property rights in connection with the manufacture,
design, distribution or sale of footwear of any kind.

(e) the granting of Permitted Liens,

(f) the sale or discount, in each case without recourse, of Accounts arising in the ordinary
course of business, but only in connection with the compromise or collection thereof,

(g) any involuntary loss, damage or destruction of property,

(h) any involuntary condemnation, seizure or taking, by exercise of the power of eminent
domain or otherwise, or confiscation or requisition of use of property,

(i) the leasing or subleasing of assets of Parent or its Subsidiaries in the ordinary course
of business,

(j) the sale or issuance of Stock (other than Prohibited Preferred Stock) of Parent,

(k) the lapse or abandonment of patents, trademarks and other intellectual property of Parent
and its Subsidiaries to the extent not economically desirable in the conduct of their business and
so long as such lapse or abandonment is not materially adverse to the interests of the Lenders,

(l) dispositions of assets acquired by Parent and its Subsidiaries pursuant to a Permitted
Acquisition consummated within 12 months of the date of the proposed Disposition (the “Subject
Permitted Acquisition”) so long as (i) the consideration received for the assets to be so
disposed is at least equal to the fair market value thereof, (ii) the assets to be so disposed are
not necessary or economically desirable in connection with the business of Parent and its
Subsidiaries, and (iii) the assets to be so disposed are readily identifiable as assets acquired
pursuant to the Subject Permitted Acquisition,

(m) (i) the making of a Permitted Investment or (ii) so long as no Default or Event of Default
has occurred and is continuing or would result thereform and so long as such disposition is made at
fair market value, the disposition of any Investment that constitutes a Permitted Investment
pursuant to clause (d), (h), (l), or (m) of the definition of Permitted Investment,

(n) the payment of Restricted Junior Payments but only to the extent that they are expressly
permitted pursuant to Section 6.9 of the Agreement,

(o) the termination of contracts, licenses, leases or subleases in the ordinary course of
business to the extent that they are not economically desirable in the conduct of the Loan Parties’
business (taken as a whole) and so long as the termination thereof is not materially adverse to
the interests of the Lenders.

(p) dispositions of Equipment substantially concurrently with the replacement thereof;

(q) closing of retail stores and dispositions of Inventory or Equipment in connection
therewith, so long as, if after giving effect to any proposed closure of a retail store by any Loan
Party or any series of related retail store closures by any of the Loan Parties, the aggregate
amount of retail stores closed by the Loan Parties in the immediately preceding twelve month period
would equal or exceed twenty retail stores, then the Borrowers shall provide Agent with not less
then 45 Business Days prior written notice before conducting such retail store closure or series of
related retail store closures;

(r) so long as no Default or Event of Default has occurred and is continuing or would result
therefrom, any disposition of Real Property,

(s) convey, sell, lease, license, assign, transfer, or otherwise dispose of patents,
trademarks, copyrights or other intellectual property of Parent or its Subsidiaries (including in
connection with the settlement or other resolution of claims, disputes, litigation, arbitration, or
other adverse proceedings) to the extent not necessary in the conduct of Parent’s and its
Subsidiaries’ business, taken as a whole, or

(t) dispositions of assets (other than Accounts, Stock of Subsidiaries of Parent, or Material
Contracts) not otherwise permitted in clauses (a) through (s) above so long as made
at fair market value and the aggregate fair market value of all assets disposed of in all such
dispositions since the Closing Date (including the proposed disposition) would not exceed
$5,000,000.

“Permitted Holder” means the Persons identified on Schedule P-1.

“Permitted Indebtedness” means:

(a) Indebtedness evidenced by the Agreement and the other Loan Documents, together with
Indebtedness owed to Underlying Issuers with respect to Underlying Letters of Credit,

(b) Indebtedness set forth on Schedule 4.19 (and specifically excluding from inclusion
pursuant to this clause (b) any Indebtedness referenced in Schedule 4.19 that is already
subject to any limitation or other condition pursuant to any other clause of this definition of
Permitted Indebtedness) and any Refinancing Indebtedness in respect of such Indebtedness,

(c) Permitted Purchase Money Indebtedness and any Refinancing Indebtedness in respect of such
Indebtedness,

(d) endorsement of instruments or other payment items for deposit,

(e) Indebtedness consisting of (i) unsecured guarantees incurred in the ordinary course of
business with respect to surety and appeal bonds, performance bonds, bid bonds, appeal bonds,
completion guarantee and similar obligations; (ii) unsecured guarantees arising with respect to
customary indemnification obligations to purchasers in connection with Permitted Dispositions; and
(iii) unsecured guarantees with respect to Indebtedness of Parent or one of its Subsidiaries, to
the extent that the Person that is obligated under such guaranty could have incurred such
underlying Indebtedness,

(f) [intentionally omitted],

(g) Acquired Indebtedness in an aggregate amount not to exceed, when aggregated with the sum
of (x) the amount of all other purchase consideration paid or payable in respect of Permitted
Acquisitions, (y) the amount of Indebtedness incurred in reliance on clause (m) of the definition
of Permitted Indebtedness, and (z) the amount of Investments made pursuant to clause (l) of the
definition of Permitted Investments, $100,000,000,

(h) Indebtedness incurred in the ordinary course of business under performance, surety,
statutory, and appeal bonds,

(i) Indebtedness owed to any Person providing property, casualty, liability, or other
insurance to Parent or any of its Subsidiaries, so long as the amount of such Indebtedness is not
in excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of,
such insurance for the year in which such Indebtedness is incurred and such Indebtedness is
outstanding only during such year,

(j) the incurrence by Parent or its Subsidiaries of Indebtedness under Hedge Agreements that
are incurred for the bona fide purpose of hedging the interest rate or foreign currency risk
associated with Parent’s and its Subsidiaries’ operations and not for speculative purposes,

(k) unsecured Indebtedness incurred in respect of netting services, overdraft protection, and
other like services, in each case, incurred in the ordinary course of business,

(l) unsecured Indebtedness of Parent owing to former employees, officers, or directors (or any
spouses, ex-spouses, or estates of any of the foregoing) incurred in connection with the repurchase
by Parent of the Stock of Parent that has been issued to such Persons, so long as (i) no Default or
Event of Default has occurred and is continuing or would result from the incurrence of such
Indebtedness, (ii) the aggregate amount of all such Indebtedness outstanding at any one time does
not exceed $500,000, and (iii) such Indebtedness is subordinated to the Obligations on terms and
conditions reasonably acceptable to Agent,

(m) unsecured Indebtedness owing to sellers of assets or Stock to a Loan Party that is
incurred by the applicable Loan Party in connection with the consummation of one or more Permitted
Acquisitions so long as (i) the aggregate principal amount at any one time outstanding for all such
unsecured Indebtedness, when aggregated with the sum of (A) the amount of all other purchase
consideration paid or payable in respect of Permitted Acquisitions, (B) the amount of Acquired
Indebtedness incurred in connection with Permitted Acquisitions since the Closing Date, and (C) the
amount of Investments made pursuant to clause (l) of the definition of Permitted Investments, does
not exceed $100,000,000, (ii) is subordinated to the Obligations on terms and conditions reasonably
acceptable to Agent, and (iii) is otherwise on terms and conditions (including all economic terms
and the absence of covenants) reasonably acceptable to Agent,

(n) contingent liabilities (i) in respect of any indemnification obligation, adjustment of
purchase price, non-compete, or similar obligation of Parent or the applicable Loan Party incurred
in connection with the consummation of one or more acquisitions or (ii) in respect of any
indemnification obligation under any prior credit agreements, loan agreements, or securities
offerings,

(o) Indebtedness composing Permitted Investments,

(p) Indebtedness secured solely by Real Property, so long as the aggregate principal amount of
such Indebtedness does not exceed $100,000,000 and any Refinancing Indebtedness in respect of such
Indebtedness,

(q) Indebtedness composing the Equipment Loan so long as the aggregate principal amount of
such Indebtedness does not exceed $80,000,000 and any Refinancing Indebtedness in respect of such
Indebtedness,

(r) Indebtedness of Foreign Subsidiaries in an aggregate principal amount not to exceed
$100,000,000 and any Refinancing Indebtedness in respect of such Indebtedness; provided,
however, that in no event shall any Loan Party be permitted to have any obligation in
respect of, or pledge any of their assets in support of, such Indebtedness, whether by guaranty or
otherwise,

(s) Subordinated Debt in an aggregate principal amount not to exceed $100,000,000 and any
Refinancing Indebtedness in respect of such Indebtedness,

(t) Unsecured Debt in an aggregate principal amount not to exceed $100,000,000 and any
Refinancing Indebtedness in respect of such Indebtedness, and

(u) Deferred compensation payable to employees, officers or directors under any deferred
compensation plans entered into in the ordinary course of business, so long as the amount of total
compensation payable to such employees, officers, or directors, after taking into account such
deferred compensation plan, is consistent with the historical practices of Parent and its
Subsidiaries;

provided, however, the foregoing to the contrary notwithstanding, in no event shall
the aggregate amount of Indebtedness pursuant to clauses (g), (m), (p), (q), (s), or (t) of this
definition of Permitted Indebtedness exceed $200,000,000.

“Permitted Intercompany Advances” means (a) loans made by a Loan Party to another Loan
Party, (b) capital contributions or loans made by a Subsidiary of Parent that is not a Loan Party
to another Subsidiary of Parent that is not a Loan Party, (c) capital contributions made by a Loan
Party to another Loan Party that is not a Foreign Subsidiary, (d) capital contributions or loans
made by a Subsidiary of Parent that is not a Loan Party to a Loan Party, provided,
however, that capital contributions by a Subsidiary of Parent that is not a Loan Party to a
Loan Party shall only be permitted so long as Agent retains its Lien on the same amount (and
percentage of all Stock issued by such Loan Party), without dilution, of the Stock of such Loan
Party as it had prior to such capital contribution, and (e) loans made by a Loan Party to a
Subsidiary of Parent that is not a Loan Party if (i) no Event of Default has occurred and is
continuing or would result therefrom, and (ii) Borrowers have Excess Availability plus Qualified
Cash of $100,000,000 or greater immediately after giving effect to each such loan.

“Permitted Investments” means:

(a) Investments in cash and Cash Equivalents,

(b) Investments in negotiable instruments deposited or to be deposited for collection in the
ordinary course of business,

(c) advances made in connection with purchases of goods or services in the ordinary course of
business,

(d) Investments received in settlement of amounts due to any Loan Party or any of its
Subsidiaries effected in the ordinary course of business or owing to any Loan Party or any of its
Subsidiaries as a result of Insolvency Proceedings involving an Account Debtor or upon the
foreclosure or enforcement of any Lien in favor of a Loan Party or its Subsidiaries,

(e) Investments owned by any Loan Party or any of its Subsidiaries on the Closing Date and set
forth on Schedule P-2,

(f) guarantees permitted under the definition of Permitted Indebtedness,

(g) Permitted Intercompany Advances,

(h) Stock or other securities acquired in connection with the satisfaction or enforcement of
Indebtedness or claims due or owing to a Loan Party or its Subsidiaries (in bankruptcy of customers
or suppliers or otherwise outside the ordinary course of business) or as security for any such
Indebtedness or claims,

(i) deposits of cash made in the ordinary course of business to secure performance of
operating leases,

(j) non-cash loans to employees, officers, and directors of Parent or any of its Subsidiaries
for the purpose of purchasing Stock in Parent so long as the proceeds of such loans are used in
their entirety to purchase such stock in Parent,

(k) Permitted Acquisitions,

(l) so long as immediately before and after giving effect to such Investment (i) no Event of
Default has occurred and is continuing or would result therefrom and (ii) Parent and its
Subsidiaries have Excess Availability plus Qualified Cash of not less than $100,000,000,
Investments by Parent or any of its Subsidiaries in Permitted Joint Ventures; provided,
however, the foregoing to the contrary notwithstanding, the amount of Investments pursuant
to this clause (l), when aggregated with the amount of purchase consideration (including any
Acquired Indebtedness and any Indebtedness incurred in reliance on clause (m) of the definition of
Permitted Indebtedness) paid or payable in respect of all Permitted Acquisitions (including
deferred payment obligations), shall not exceed $100,000,000 during the term of the Agreement, and

(m) so long as no Event of Default has occurred and is continuing or would result therefrom,
any other Investments in an aggregate amount not to exceed $10,000,000 at any one time outstanding;
provided that the amount of any Investment shall be the original cost of such
Investment plus the cost of all additions thereto, without any adjustments for increases or
decreases in value, or write-ups, write-downs or write-offs with respect to such Investment.

“Permitted Joint Ventures” means any joint venture between or among the Borrowers or
any of their Subsidiaries with third parties and designated as such by the Borrowers in writing to
Agent substantially concurrently with the creation or acquisition thereof provided that: (a) at no
time shall any creditor of any such entity have any claim against the Borrowers or any of their
Subsidiaries in respect of any Indebtedness or other obligation of such entity, except obligations
arising by operation of law, including joint and several liability for taxes, ERISA and similar
items; (b) none of the Borrowers or any of their Subsidiaries shall become a general partner of any
such entity; (c) no such entity shall own Stock in the Borrowers or any of their Subsidiaries; (d)
no investment shall be made in any such entity by the Borrowers or any of their Subsidiaries except
as expressly permitted under the Agreement. It is understood that notwithstanding anything to the
contrary in the Agreement, such entities shall not be required to guaranty the Obligations or
pledge their assets to secure same.

“Permitted Liens” means

(a) Liens held by Agent to secure the Obligations,

(b) Liens for unpaid taxes, assessments, or other governmental charges or levies that either
(i) are not yet delinquent, or (ii) do not have priority over Agent’s Liens and the underlying
taxes, assessments, or charges or levies are the subject of Permitted Protests,

(c) judgment Liens arising solely as a result of the existence of judgments, orders, or awards
that do not constitute an Event of Default under Section 8.3 of the Agreement,

(d) Liens set forth on Schedule P-3; provided, however, that to
qualify as a Permitted Lien, any such Lien described on Schedule P-3 shall only secure the
Indebtedness that it secures on the Closing Date and any Refinancing Indebtedness in respect
thereof,

(e) the interests of lessors under operating leases and licensors under license agreements,

(f) purchase money Liens or the interests of lessors under Capital Leases to the extent that
such Liens or interests secure Permitted Purchase Money Indebtedness and so long as (i) such Lien
attaches only to the asset purchased or acquired and the proceeds thereof, and (ii) such Lien only
secures the Indebtedness that was incurred to acquire the asset purchased or acquired or any
Refinancing Indebtedness in respect thereof,

(g) Liens arising by operation of law in favor of warehousemen, landlords, carriers,
mechanics, materialmen, laborers, or suppliers, and other similar statutory Liens, incurred in the
ordinary course of business and not in connection with the borrowing of money, and which Liens
either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted Protests,

(h) Liens on amounts deposited to secure Parent’s and its Subsidiaries obligations in
connection with worker’s compensation or other unemployment insurance,

(i) Liens on amounts deposited to secure Parent’s and its Subsidiaries obligations in
connection with the making or entering into of bids, tenders, or leases in the ordinary course of
business and not in connection with the borrowing of money,

(j) Liens on amounts deposited to secure Parent’s and its Subsidiaries reimbursement
obligations with respect to surety or appeal bonds in connection with Indebtedness permitted
pursuant to clause (h) of the definition of Permitted Indebtedness,

(k) with respect to any Real Property, easements, development concessions, rights of way,
encroachments, title defects and zoning restrictions that do not materially interfere with or
impair the use or operation thereof,

(l) licenses (a) on a non-exclusive basis, of patents, trademarks, copyrights, and other
intellectual property rights in the ordinary course of business or (b) on an exclusive basis, of
patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of
business so long as either (i) the patents, trademarks, copyrights, and other intellectual property
subject to such exclusive license are not owned by a Loan Party or the territory with respect to
which the exclusive license is granted does not include the United States or a territory within the
United States, or (ii) such exclusive license does not grant a right to use such patents,
trademarks, copyrights, and other intellectual property rights in connection with the manufacture,
design, distribution or sale of footwear of any kind.

(m) Liens that are replacements of Permitted Liens to the extent that the original
Indebtedness is the subject of permitted Refinancing Indebtedness and so long as the replacement
Liens only encumber those assets that secured the original Indebtedness,

(n) rights of setoff or bankers’ liens upon deposits of cash in favor of banks or other
depository institutions, solely to the extent incurred in connection with the maintenance of such
deposit accounts in the ordinary course of business,

(o) Liens granted in the ordinary course of business on the unearned portion of insurance
premiums securing the financing of insurance premiums to the extent the financing is permitted
under the definition of Permitted Indebtedness,

(p) Liens in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods,

(q) Liens resulting from the filing of a precautionary UCC-1 financing statements relating
solely to operating leases of personal property entered into in the ordinary course of business,

(r) Liens solely on any cash earnest money deposits made by Parent or any of its Subsidiaries
in connection with any letter of intent or purchase agreement with respect to a proposed
acquisition,

(s) Liens assumed by Parent or its Subsidiaries in connection with a Permitted Acquisition
that secure Acquired Indebtedness,

(t) Liens on the Real Property securing Indebtedness permitted pursuant to clause (p) of the
definition of Permitted Indebtedness,

(u) Liens on Equipment securing the Equipment Loan permitted pursuant to clause (q) of the
definition of Permitted Indebtedness,

(v) Liens on Accounts or Inventory owned by Foreign Subsidiaries, which Liens secure
Indebtedness permitted pursuant to clause (r) of the definition of Permitted Indebtedness,

(w) Liens on patents, trademarks, copyrights, or other intellectual property of Parent or its
Subsidiaries, which Liens arise pursuant to a Permitted Disposition permitted pursuant to clause
(s) of the definition of Permitted Dispositions, to the extent such patents, trademarks,
copyrights, or other intellectual property are not necessary in the conduct of Parent’s and its
Subsidiaries’ business, taken as a whole, and

(x) other Liens which do not secure Indebtedness for borrowed money or letters of credit and
as to which the aggregate amount of the obligations secured thereby does not exceed $100,000.

“Permitted Preferred Stock” means and refers to any Preferred Stock issued by Parent
(and not by one or more of its Subsidiaries) that is not Prohibited Preferred Stock.

“Permitted Protest” means the right of Parent or any of its Subsidiaries to protest
any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes or
taxes that are the subject of a United States federal tax lien), or rental payment, provided that
(a) a reserve with respect to such obligation is established on Parent’s or its Subsidiaries’ books
and records in such amount as is required under GAAP, (b) any such protest is instituted promptly
and prosecuted diligently by Parent or its Subsidiary, as applicable, in good faith, and (c) while
any such protest is pending, there will be no impairment of the enforceability, validity, or
priority of any of Agent’s Liens.

“Permitted Purchase Money Indebtedness” means, as of any date of determination,
Purchase Money Indebtedness incurred after the Closing Date in an aggregate principal amount
outstanding at any one time not in excess of $5,000,000.

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

“Post-Increase Revolver Lenders” has the meaning specified therefor in Section
2.2(e) of the Agreement.

“Pre-Increase Revolver Lenders” has the meaning specified therefor in Section
2.2(e) of the Agreement.

“Preferred Stock” means, as applied to the Stock of any Person, the Stock of any class
or classes (however designated) that is preferred with respect to the payment of dividends, or as
to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over shares of Stock of any other class of such Person.

“Prohibited Preferred Stock” means any Preferred Stock that by its terms is
mandatorily redeemable or subject to any other payment obligation (including any obligation to pay
dividends, other than dividends of shares of Preferred Stock of the same class and series payable
in kind or dividends of shares of common stock) on or before a date that is less than 1 year after
the Maturity Date, or, on or before the date that is less than 1 year after the Maturity Date, is
redeemable at the option of the holder thereof for cash or assets or securities (other than
distributions in kind of shares of Preferred Stock of the same class and series or of shares of
common stock).

“Projections” means Parent’s forecasted (a) balance sheets, (b) profit and loss
statements, and (c) cash flow statements, all prepared on a basis consistent with Parent’s
historical financial statements, together with appropriate supporting details and a statement of
underlying assumptions.

“Pro Rata Share” means, as of any date of determination:

(a) with respect to a Lender’s obligation to make Advances and right to receive payments of
principal, interest, fees, costs, and expenses with respect thereto, (i) prior to the Commitments
being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s
Commitment, by (z) the aggregate Commitments of all Lenders, and (ii) from and after the time that
the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y)
the outstanding principal amount of such Lender’s Advances by (z) the outstanding principal amount
of all Advances,

(b) with respect to a Lender’s obligation to participate in Letters of Credit or Reimbursement
Undertakings or Acceptances, to reimburse an Issuing Lender, and right to receive payments of fees
with respect thereto, (i) prior to the Commitments being terminated or reduced to zero, the
percentage obtained by dividing (y) such Lender’s Commitment, by (z) the aggregate Commitments of
all Lenders, and (ii) from and after the time that the Commitments have been terminated or reduced
to zero, the percentage obtained by dividing (y) the outstanding principal amount of such Lender’s
Advances by (z) the outstanding principal amount of all Advances; provided,
however, that if all of the Advances have been repaid in full and Letters of Credit or
Acceptances remain outstanding, Pro Rata Share under this clause shall be determined based upon
subclause (i) of this clause as if the Commitments had not been terminated or reduced to zero and
based upon the Commitments as they existed immediately prior to their termination or reduction to
zero, and

(c) with respect to all other matters as to a particular Lender (including the indemnification
obligations arising under Section 15.7 of the Agreement), (i) prior to the Commitments
being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s
Commitment, by (z) the aggregate amount of Commitments of all Lenders, and (ii) from and after the
time that the Commitments have been terminated or reduced to zero, the percentage obtained by
dividing (y) the outstanding principal amount of such Lender’s Advances, by (z) the outstanding
principal amount of all Advances; provided, however, that if all of the Advances
have been repaid in full and Letters of Credit or Acceptances remain outstanding, Pro Rata Share
under this clause shall be determined based upon subclause (i) of this clause as if the Commitments
had not been terminated or reduced to zero and based upon the Commitments as they existed
immediately prior to their termination or reduction to zero.

“Protective Advances” has the meaning specified therefor in Section 2.3(d)(i)
of the Agreement.

“Purchase Money Indebtedness” means Indebtedness (other than the Obligations, but
including Capitalized Lease Obligations), incurred at the time of, or within 30 days after, the
acquisition of any fixed assets for the purpose of financing all or any part of the acquisition
cost thereof.

“Qualified Cash” means, as of any date of determination, the amount of unrestricted
cash and Cash Equivalents of Parent and its Subsidiaries that is in Deposit Accounts or in
Securities Accounts, or any combination thereof, and which such Deposit Account or Securities
Account is the subject of a Control Agreement and is maintained by a branch office of the bank or
securities intermediary located within the United States.

“Qualified Import Letter of Credit” means a Letter of Credit that (a) is a commercial
letter of credit issued to facilitate the purchase by any Borrower of Eligible Inventory, (b) is in
form and substance reasonably acceptable to Agent, and (c) is only drawable by the beneficiary
thereof by the presentation of, among other documents, either (i) a negotiable bill of lading that
is consigned to Agent (either directly or by means of endorsements) and that was issued by the
carrier respecting the subject Eligible Inventory, (ii) a negotiable cargo receipt that is
consigned to Agent (either directly or by means of endorsements) and that was issued by a
consolidator respecting the subject Eligible Inventory; provided, however, that, no
bill of lading shall have been issued by the carrier (other than a bill of lading consigned to the
consolidator or to Agent), or (iii) so long as a satisfactory Bailee and Agency Agreement is in
full force and effect, a bill of lading that is consigned to Agent (either directly or by means of
endorsements) and that was issued by the applicable Bailee & Agent party to such Bailee and Agency
Agreement as the carrier respecting the subject Inventory.

“Real Property” means any estates or interests in real property now owned or hereafter
acquired by Parent or its Subsidiaries and the improvements thereto.

“Record” means information that is inscribed on a tangible medium or that is stored in
an electronic or other medium and is retrievable in perceivable form.

“Refinancing Indebtedness” means refinancings, renewals, or extensions of Indebtedness
so long as:

(a) such refinancings, renewals, or extensions do not result in an increase in the principal
amount of the Indebtedness so refinanced, renewed, or extended,

(b) such refinancings, renewals, or extensions do not result in a shortening of the average
weighted maturity (measured as of the refinancing, renewal, or extension) of the Indebtedness so
refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a whole, are
less favorable to the Lender Group than those that were applicable to the refinanced, renewed, or
extended Indebtedness nor are they or could they reasonably be expected to be materially adverse to
the interests of the Lenders,

(c) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of
payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension
must include subordination terms and conditions that are at least as favorable to the Lender Group
as those that were applicable to the refinanced, renewed, or extended Indebtedness, and

(d) the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person
that is liable on account of the Obligations other than those Persons which were obligated with
respect to the Indebtedness that was refinanced, renewed, or extended.

“Register” has the meaning set forth in Section 13.1(h) of the Agreement.

“Registered Loan” has the meaning set forth in Section 13.1(h) of the
Agreement.

“Reimbursement Undertaking” has the meaning specified therefor in Section
2.11(a) of the Agreement.

“Related Fund” means, with respect to any Lender that is an investment fund, any other
investment fund that invests in commercial loans and that is managed or advised by the same
investment advisor as such Lender or by an Affiliate of such investment advisor.

“Remedial Action” means all actions taken to (a) clean up, remove, remediate, contain,
treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or
outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials
so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor
or outdoor environment, (c) restore or reclaim natural resources or the environment, (d) perform
any pre-remedial studies, investigations, or post-remedial operation and maintenance activities, or
(e) conduct any other actions with respect to Hazardous Materials required by Environmental Laws.

“Replacement Lender” has the meaning specified therefor in Section 2.13(b) of
the Agreement.

“Report” has the meaning specified therefor in Section 15.16 of the Agreement.

“Required Lenders” means, at any time, Lenders whose aggregate Pro Rata Shares
(calculated under clause (c) of the definition of Pro Rata Shares) exceed 50%.

“Reserve Percentage” means, on any day, for any Lender, the maximum percentage
prescribed by the Board of Governors of the Federal Reserve System (or any successor Governmental
Authority) for determining the reserve requirements (including any basic, supplemental, marginal,
or emergency reserves) that are in effect on such date with respect to eurocurrency funding
(currently referred to as “eurocurrency liabilities”) of that Lender, but so long as such Lender is
not required or directed under applicable regulations to maintain such reserves, the Reserve
Percentage shall be zero.

“Restricted Junior Payment” means to (a) declare or pay any dividend or make any other
payment or distribution on account of Stock issued by Parent (including any payment in connection
with any merger or consolidation involving Parent) or to the direct or indirect holders of Stock
issued by Parent in their capacity as such (other than dividends or distributions payable in Stock
(other than Prohibited Preferred Stock) issued by Parent), or (b) purchase, redeem, or otherwise
acquire or retire for value (including in connection with any merger or consolidation involving
Parent) any Stock issued by Parent.

“Revolver Usage” means, as of any date of determination, the sum of (a) the amount of
outstanding Advances, plus (b) the amount of the Letter of Credit Usage.

“Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of
the government of a country, (c) an organization directly or indirectly controlled by a country or
its government, (d) a Person resident in or determined to be resident in a country, in each case,
that is subject to a country sanctions program administered and enforced by OFAC.

“Sanctioned Person” means a person named on the list of Specially Designated Nationals
maintained by OFAC.

“S&P” has the meaning specified therefor in the definition of Cash Equivalents.

“Seasonal Inventory Limit” means, for any calendar year period, (a) beginning on May 1
of such calendar year and continuing through July 31 of such calendar year, $150,000,000 and (b) at
any other time during such calendar year, $125,000,000.

“SEC” means the United States Securities and Exchange Commission and any successor
thereto.

“Securities Account” means a securities account (as that term is defined in the Code).

“Securities Act” means the Securities Act of 1933, as amended from time to time, and
any successor statute.

“Security Agreement” means a security agreement, in form and substance reasonably
satisfactory to Agent, executed and delivered by Borrowers and Guarantors to Agent.

“Settlement” has the meaning specified therefor in Section 2.3(e)(i) of the
Agreement.

“Settlement Date” has the meaning specified therefor in Section 2.3(e)(i) of
the Agreement.

“Solvent” means, with respect to any Person on a particular date, that, at fair
valuations, the sum of such Person’s assets is greater than all of such Person’s debts.

“Stock” means all shares, options, warrants, interests, participations, or other
equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting,
including common stock, preferred stock, or any other “equity security” (as such term is defined in
Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act).

“Subordinated Debt” means unsecured Indebtedness of Parent or its Subsidiaries that is
on terms and conditions (including payment terms (including no principal or other amortization
payments prior to maturity), interest rates, covenants, remedies, defaults and other material
terms) satisfactory to the Agent (including a maturity date no earlier than the date that is six
months after the Maturity Date) and which has been expressly subordinated in right of payment to
all Obligations of the Loan Parties under the Loan Documents by the execution and delivery of a
subordination agreement, in form and substance satisfactory to the Agent.

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

“Swing Lender” means WFF or any other Lender that, at the request of Borrowers and
with the consent of Agent agrees, in such Lender’s sole discretion, to become the Swing Lender
under Section 2.3(b) of the Agreement.

“Swing Loan” has the meaning specified therefor in Section 2.3(b) of the
Agreement.

“Taxes” means any taxes, levies, imposts, duties, fees, assessments or other charges
of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision or
taxing authority thereof or therein with respect to such payments and all interest, penalties or
similar liabilities with respect thereto; provided, however, that Taxes shall
exclude (i) any tax imposed on the net income or net profits of any Lender or any Participant
(including any branch profits taxes), in each case imposed by the jurisdiction (or by any political
subdivision or taxing authority thereof) in which such Lender or such Participant is organized or
the jurisdiction (or by any political subdivision or taxing authority thereof) in which such
Lender’s or such Participant’s principal office, branch office or permanent establishment is
located in each case as a result of a present or former connection between such Lender or such
Participant and the jurisdiction or taxing authority imposing the tax (other than any such
connection arising solely from such Lender or such Participant having executed, delivered or
performed its obligations or received payment under, or enforced its rights or remedies under the
Agreement or any other Loan Document); (ii) taxes resulting from a Lender’s or a Participant’s
failure to comply with the requirements of Section 16(c) or (d) of the Agreement,
and (iii) any United States federal withholding taxes that would be imposed on amounts payable to a
Foreign Lender based upon the applicable withholding rate in effect at the time such Foreign Lender
becomes a party to the Agreement (or designates a new lending office), except that Taxes
shall include (A) any amount that such Foreign Lender (or its assignor, if any) was previously
entitled to receive pursuant to Section 16(a) of the Agreement, if any, with respect to
such withholding tax at the time such Foreign Lender becomes a party to the Agreement (or
designates a new lending office), and (B) additional United States federal withholding taxes that
may be imposed after the time such Foreign Lender becomes a party to the Agreement (or designates a
new lending office), as a result of a change in law, rule, regulation, order or other decision with
respect to any of the foregoing by any Governmental Authority.

“Tax Lender” has the meaning specified therefor in Section 14.2(a) of the
Agreement.

“Trademark Security Agreement” has the meaning specified therefor in the Security
Agreement.

“Underlying Acceptance” means an Acceptance that has been accepted by an Underlying
Issuer.

“Underlying Issuer” means Wells Fargo or one of its Affiliates and, in the case of a
proposed Qualified Import Letter of Credit, Wells Fargo or one of its Affiliates that has agreed,
in writing, to hold documents of title as agent for Agent.

“Underlying Letter of Credit” means a Letter of Credit that has been issued by an
Underlying Issuer.

“United States” means the United States of America.

“Unsecured Debt” means unsecured Indebtedness of Parent or its Subsidiaries that is on
terms and conditions (including payment terms (including no principal or other amortization
payments prior to maturity), interest rates, covenants, remedies, defaults and other material
terms) satisfactory to the Agent (including a maturity date no earlier than the date that is six
months after the Maturity Date).

“Voidable Transfer” has the meaning specified therefor in Section 17.8 of the
Agreement.

“Wells Fargo” means Wells Fargo Bank, National Association, a national banking
association.

“WFF” means Wells Fargo Foothill, LLC, a Delaware limited liability company.

“Yale” means Yale Investments, LLC, a Delaware limited liability company.

“Yale Loan Agreement” means that certain Loan Agreement, dated December 21, 2000,
between Yale and Mony Life Insurance Company, a New York corporation.

“Yale Loan Documents” means (a) the Yale Loan Agreement, (b) that certain promissory
note, dated December 21, 2000, issued by Yale in favor of Mony Life Insurance Company, a New York
corporation, in the original principal amount of $7,850,000, and (c) that certain Deed of Trust,
Assignment of Rents, Security Agreement, and Fixture Filing, dated December 21, 2000, by Yale in
favor of Mony Life insurance Company.

“Yale Real Property” mean the Real Property and improvements owned by Yale and
described in greater detail on Schedule Y-1 attached hereto.

“Zoo York Lender License Agreement” means a license agreement among Agent, Zoo York,
LLC, the Borrowers, Skechers International II, and Skechers S.A.R.L. on terms and conditions and
subject to documentation satisfactory to Agent.

“Zoo York License Agreement” means that certain Trademark License Agreement, dated
December 5, 2005, by and among Zoo York, LLC, Skechers U.S.A., Inc. II, Skechers International II,
and Skechers S.A.R.L.rele-bonds_ex101.htm

    
      

      

    

    Exhibit
10.1

     

    

    BONDS.COM
GROUP, INC.

    

    

    

    

    

    SECURED
CONVERTIBLE NOTE AND WARRANT

    PURCHASE
AGREEMENT

    

    

    

    

    

    June
30, 2009

    

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    BONDS.COM HOLDINGS,
INC.

    

    SECURED CONVERTIBLE NOTE AND
WARRANT

    PURCHASE
AGREEMENT

    

    This
Secured Convertible Note and Warrant Purchase Agreement (the “Agreement”) is made
as of June 30, 2009 (the “Initial Closing
Date”) by and between Bonds.com Group, Inc., a Delaware corporation
(the “Company”)
and each of the entities or persons listed on Exhibit A
attached to this Agreement (each a “Purchaser” and
together the “Purchasers”).

     

    RECITALS

    

    Subject
to the terms and conditions set forth in this Agreement and pursuant to Sections
4(2) and 4(6) of the Securities Act of 1933, as amended (the "Securities Act"), and
Rule 506 promulgated thereunder, the Company desires to issue and sell to each
Purchaser, and each Purchaser, severally and not jointly, desires to purchase
from the Company, Units (as defined below) of securities of the Company, as more
fully described in this Agreement. As used herein, each "Unit" shall consist of
(i) a secured convertible note of the Company, in substantially the form set
forth on Exhibit
B hereto, in the principal amount of $25,000 (each a “Note” and together,
the “Notes”),
and (ii) a warrant, in substantially the form attached hereto as Exhibit
C hereof, to acquire 16,667 shares of Common Stock at an exercise price
of $0.46875 per share.    The Units, the Notes, the Warrants
and the shares of Common Stock to be issued pursuant to the Notes and Warrants
are referred to herein as the “Securities”.

     

    AGREEMENT

    

    In
consideration of the mutual promises contained herein and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties to
this Agreement agree as follows:

     

    1.           Purchase
and Sale of Units.

     

    (a)           Purchase of
Units.

     

    (i)           Units.  Subject
to the satisfaction (or waiver) of the conditions set forth in Sections 1(f) and
1(g) below, the Company shall issue and sell to each Buyer, and each Buyer
agrees to purchase from the Company on the applicable Closing Date (as defined
below), the number of Units set forth opposite such Purchaser’s name on Exhibit
A hereto.

     

    (ii)          Closing.  The
date and time of the Closing shall be 10:00 a.m., Eastern Standard Time, on June
30, 2009 (or such later date as is mutually agreed to by the Company and
Purchaser) (the “Closing
Date”).

     

    (iii)         Purchase
Price.  The purchase price for each Unit (the "Purchase Price")
shall be Twenty-Five Thousand Dollars ($25,000).

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (b)           Form of Payment.  On the
Closing Date, subject to the satisfaction of the conditions to closing, each
Purchaser shall deliver by wire transfer to an account designated by the
Company, no later than the close of business on the Closing Date the aggregate
Purchase Price for the Units.

     

    (c)           Location of
Closing.  Each Closing shall take place at the offices of Rele
& Becker LLC, 555 Eighth Avenue, Suite 1703, New York, New York
10018.  Alternatively, the Closing can take place by the exchange of
final executed closing documents between legal counsel for the Company and
Purchaser.

     

    (d)           Deliverables of Company at
Closing. On the applicable Closing Date, the Company shall deliver to
each Purchaser (i) a Note in the principal amount set forth opposite such
Purchaser’s name on Exhibit
A hereto, (ii) a Warrant for the number of shares set forth opposite such
Purchaser’s name on Exhibit
A hereto, (iii) an executed copy of this Agreement, (iv) an executed copy
of the Security Agreement in substantially the form set forth on Exhibit
D hereto (the “Security
Agreement”).

     

    (e)           Deliverables of Purchaser at
Closing.  On the applicable Closing Date, the Purchaser shall
deliver to the Company: (i) an executed copy of this Agreement and the Security
Agreement, and (ii) the applicable consideration provided for in Section 1(d)
hereof.

     

    (f)           Fractional
Units.  Other then with respect to the conversion of the
Converted Indebtedness by the Converting Holders in the Closing, no fractional
Units shall be sold by the Company.

     

    (g)           
Use of
Proceeds. The proceeds from the sale of the Units will be for general
working capital of the Company.

     

    2.           
Representations
and Warranties of the Company.  The Company
hereby represents and warrants to each Purchaser as follows:

     

    (a)           Organization and
Qualification.  The Company and its Subsidiaries (as set forth
on Schedule
2(a) hereto) are entities duly organized and validly existing and, to the
extent legally applicable, in good standing under the laws of the State of
Delaware and have the requisite power and authorization to own their properties
and to carry on their business as now being conducted.  Each of the
Company and its Subsidiaries is duly qualified as a foreign entity to do
business and to the extent legally applicable, is in good standing in every
jurisdiction in which its ownership of property or the nature of the business
conducted by it makes such qualification necessary, except to the extent that
the failure to be so qualified or be in good standing would not reasonably be
expected to have a Material Adverse Effect (as defined below).  As
used in this Agreement, "Material Adverse Effect" means any material adverse
effect on the business, properties, assets, operations, results of operations,
or condition (financial or otherwise) of the Company and its Subsidiaries, taken
as a whole, or on the transactions contemplated hereby or the other Transaction
Documents (as defined below) or the other instruments to be entered into in
connection herewith or therewith, or on the authority or ability of the Company
to perform its obligations under the Transaction Documents

     

    
      
         

      

      
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    (b)           Authorization; Enforcement;
Validity.  The Company has the requisite corporate power and
authority to enter into and perform its obligations under this Agreement, the
Security Agreement, the Notes, the Warrants and each of the other agreements
entered into by the parties hereto in connection with the transactions
contemplated by this Agreement (collectively, the "Transaction
Documents") and to issue the Securities in accordance with the terms
hereof and thereof.  The execution and delivery of the Transaction
Documents by the Company and the consummation by the Company of the transactions
contemplated hereby and thereby, including, without limitation, the issuance of
the Units, the Notes, the Warrants, and the reservation for issuance and the
issuance of the shares (the “Underlying Shares”)
upon conversion of the Notes and exercise of the Warrants, have been duly
authorized by the Company's Board of Directors and no further filing, consent,
or authorization is required by the Company, its Board of Directors or its
stockholders.  This Agreement and the other Transaction Documents have
been duly executed and delivered by the Company, and constitute the legal, valid
and binding obligations of the Company, enforceable against the Company in
accordance with their respective terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of applicable creditors' rights and
remedies.

     

    (c)           Issuance of
Securities.  The
Securities are duly authorized and, when issued and paid for in accordance with
the applicable Transaction Documents, will be duly and validly issued, fully
paid and nonassessable, free and clear of all liens imposed by the Company other
than restrictions on transfer provided for in the Transaction Documents. The
Underlying Shares, when issued in accordance with the terms of the Transaction
Documents, will be validly issued, fully paid and nonassessable, free and clear
of all liens imposed by the Company other than restrictions on transfer provided
for in the Transaction Documents. The Company has reserved from its duly
authorized capital stock a number of shares of Common Stock for issuance of the
Underlying Shares at least sufficient to permit the exercise of all existing
Warrants and conversion of all existing Notes.

     

    (d)           No
Conflicts.  The
execution, delivery and performance of the Transaction Documents by the Company
and the consummation by the Company of the transactions contemplated hereby and
thereby (including, without limitation, the issuance of the Securities) will not
(i) result in a violation of any certificate of incorporation, certificate of
formation, any certificate of designations or other constituent documents of the
Company or any of its Subsidiaries, any capital stock of the Company or any of
its Subsidiaries or bylaws of the Company or any of its Subsidiaries or (ii)
conflict with, or constitute a default or breach (or an event which with notice
or lapse of time or both would become a default or breach) in any respect under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or
any of its Subsidiaries is a party, or (iii) result in a violation of any law,
rule, regulation, order, judgment or decree (including foreign, federal and
state securities laws and regulations) applicable to the Company or any of its
Subsidiaries or by which any property or asset of the Company or any of its
Subsidiaries is bound or affected, except in the case of clauses (ii) and (iii)
above, to the extent that such violations conflict, default or right would not
reasonably be expected to have a Material Adverse Effect.

     

    
      
         

      

      
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    (e)           Consents.  Neither the Company nor any
of its Subsidiaries is required to obtain any consent, authorization or order
of, or make any filing or registration with, any court, governmental agency or
any regulatory or self-regulatory agency or any other Person (as defined below)
in order for it to execute, deliver or perform any of its obligations under or
contemplated by the Transaction Documents, in each case in accordance with the
terms hereof or thereof.  "Person" means an individual, a limited
liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency
thereof.

     

    (f)           Capitalization. The Company has not issued any capital
stock since its most recently filed periodic report under the Exchange Act,
other than capital stock issued: (i) pursuant to the terms hereof, (ii) by the
Company and reported by the Company pursuant to a Current Report filed on Form
8K under the Securities and Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder (the “Exchange
Act”), (iii) pursuant to
the exercise of employee stock options under the Company’s stock option plans
and/or the issuance of shares of Common Stock to employees pursuant to the
Company’s employee stock purchase plans or (iv) upon the conversion or exercise
of securities of the Company outstanding as of the date of the most recently
filed periodic report under the Exchange Act. No Person has any right of first
refusal, preemptive right, right of participation, or any similar right to
participate in the transactions contemplated by the Transaction
Documents.

     

    (g)          SEC Reports;
Financial Statements. The
Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years
preceding the date hereof (or such shorter period as the Company was required by
law or regulation to file such material) (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein, being
collectively referred to herein as the “SEC
Reports”) on a timely basis
or has received a valid extension of such time of filing and has filed any such
SEC Reports prior to the expiration of any such extension. As of their
respective dates, except as disclosed in Schedule
2(g), the SEC Reports
complied in all material respects with the requirements of the Securities Act
and the Exchange Act, as applicable, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading. Except as disclosed in Schedule
2(g), the financial
statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations
of the Commission with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with United States
generally accepted accounting principles applied on a consistent basis during
the periods involved (“GAAP”), except as may be otherwise specified in such
financial statements or the notes thereto and except that unaudited financial
statements may not contain all footnotes required by GAAP, and fairly present in
all material respects the financial position of the Company and its consolidated
Subsidiaries as of and for the dates thereof and the results of operations and
cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit
adjustments.

     

    (h)          Material
Changes. Except as set
forth on Schedule
2(h) or elsewhere on the
schedules hereto, since the date of the latest audited financial statements

     

    
      
         

      

      
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    included within the SEC Reports, except
as specifically disclosed in a subsequent SEC Report filed prior to the date
hereof: (i) there has been no event, occurrence or development that has had or
that could reasonably be expected to result in a Material Adverse Effect, (ii)
the Company has not incurred any liabilities (contingent or otherwise) other
than (A) trade payables and accrued expenses incurred in the ordinary course of
business consistent with past practice and (B) liabilities not required to be
reflected in the Company’s financial statements pursuant to GAAP or disclosed in
filings made with the Commission, (iii) the Company has not altered its method
of accounting, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock and (v) the Company has not issued any equity securities to any officer,
director or Affiliate, except pursuant to existing Company stock option plans.
Except as set forth on Schedule
2(h), the Company does not
have pending before the Commission any request for confidential treatment of
information. Except for the issuance of the Securities contemplated by this
Agreement or as set forth on Schedule
2(h) or elsewhere on the
Schedules hereto, no event, liability or development has occurred or exists with
respect to the Company or its Subsidiaries or their respective business,
properties, operations or financial condition, that would be required to be
disclosed by the Company under applicable securities laws at the time this
representation is made or deemed made that has not been publicly disclosed at
least 1 trading day prior to the date that this representation is
made.

     

    (i)           Litigation. Except as disclosed within the SEC
Reports or in Schedule
2(i), there is no action,
suit, inquiry, notice of violation, proceeding or investigation pending or, to
the knowledge of the Company, threatened against or affecting the Company, any
Subsidiary or any of their respective properties before or by any court,
arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or
challenges the legality, validity or enforceability of any of the Transaction
Documents or the Securities or (ii) could, if there were an unfavorable
decision, have or reasonably be expected to result in a Material Adverse
Effect.

     

    (j)           Labor
Relations. No material
labor dispute exists or, to the knowledge of the Company, is imminent with
respect to any of the employees of the Company which could reasonably be
expected to result in a Material Adverse Effect. None of the Company’s or its
Subsidiaries’ employees is a member of a union that relates to such employee’s
relationship with the Company or such Subsidiary, and neither the Company nor
any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that their relationships with their
employees are good.

     

    (k)          Compliance. Neither the Company nor any
Subsidiary: (i) is in default under or in violation of (and no event has
occurred that has not been waived that, with notice or lapse of time or both,
would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under
or that it is in violation of, any indenture, loan or credit agreement or any
other agreement or instrument to which it is a party or by which it or any of
its properties is bound (whether or not such default or violation has been
waived), (ii) is in violation of any order of any court, arbitrator or
governmental body or (iii) is or has been in violation of any statute,

     

    
      
         

      

      
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    rule or regulation of any governmental
authority, including without limitation all foreign, federal, state and local
laws applicable to its business and all such laws that affect the environment,
except in each case as could not have or reasonably be expected to result in a
Material Adverse Effect.

     

    (l)           Regulatory
Permits. To the Company’s
knowledge, the Company and the Subsidiaries possess all certificates,
authorizations and permits issued by the appropriate federal, state, local or
foreign regulatory authorities necessary to conduct their respective businesses
as described in the SEC Reports, except where the failure to possess such
permits could not reasonably be expected to result in a Material Adverse Effect
(“Material
Permits”), and neither the
Company nor any Subsidiary has received any notice of proceedings relating to
the revocation or modification of any Material Permit.

     

    (m)         Title to
Assets. The Company and the
Subsidiaries have good and marketable title in fee simple to all real property
owned by them and good and marketable title in all personal property owned by
them that is material to the business of the Company and the Subsidiaries, in
each case free and clear of all security interests, liens, claims, charge
or encumbrances (“Liens”), except for (i) liens for
current taxes not yet due, (ii) minor imperfections of title, if any, not
material in amount and not materially detracting from the value or impairing the
use of the property subject thereto or impairing the operations of the Company
or (iii) Permitted Liens (as defined below).

     

    (n)          Patents and
Trademarks. The Company and
the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets,
inventions, copyrights, licenses and other intellectual property rights and
similar rights as described in the SEC Reports as necessary or material for use
in connection with their respective businesses and which the failure to so have
could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). Neither
the Company nor any Subsidiary has received a notice (written or otherwise) that
any of the Intellectual Property Rights used by the Company or any Subsidiary
violates or infringes upon the rights of any third party. To the knowledge of
the Company, all such Intellectual Property Rights are enforceable and there is
no existing infringement by any third party of any of the Intellectual Property
Rights. The Company and its Subsidiaries have taken reasonable security measures
to protect the secrecy, confidentiality and value of all of their intellectual
properties, except where failure to do so could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect.

     

    (o)          Intentionally
Omitted.

     

    (p)          Private
Placement. Assuming the
accuracy of the Purchasers’ representations and warranties set forth in Section
3 hereof, no registration under the Securities Act is required for the offer and
sale of the Securities by the Company to the Purchasers as contemplated
hereby.

     

    (q)          Transactions With Affiliates
and Employees. Other than as described in SEC Reports, and except as set
forth on Schedule
2(q), none of the officers, directors, employees and/or affiliates of
Company or the Subsidiaries is a party to any transaction with Company or any
Subsidiary (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or 

     

    
      
         

      

      
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    otherwise
requiring payments to or from any officer, director employee or such affiliate
or, to the knowledge of Company, any entity in which any officer, director, or
any such employee has a substantial interest or is an officer, director,
trustee, partner or affiliate other than (a) for payment of salary or
consulting fees for services rendered, (b) reimbursement for expenses
incurred on behalf of Company and (c) for other employee benefits,
including stock option agreements under any stock option plan of Company, which
in the aggregate (for the total amount in (a), (b) and (c) combined) does not
exceed the amount of $25,000 for any officer, director, employee or
affiliate.

     

    (r)           Registration
Rights. Except as provided
herein or as set forth in Schedule
2(r), no Person has any
right to cause the Company to effect the registration under the Securities Act
of any securities of the Company.

     

    (s)           No General
Solicitation. Neither the
Company nor any person acting on behalf of the Company has offered or sold any
of the Securities by any form of general solicitation or general advertising.
The Company has offered the Securities for sale only to the Purchasers and
certain other “accredited investors” within the meaning of Rule 501 under the
Securities Act.

     

    (t)           Disclosure. All disclosure furnished by or on
behalf of the Company to the Purchasers regarding the Company, its business and
the transactions contemplated hereby, including the Schedules to this Agreement,
is true and correct and does not contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements
made therein, in light of the circumstances under which they were made, not
misleading.

     

    

    3.           
Representations
and Warranties of the Purchasers.  Each Purchaser
hereby represents, warrants and covenants to the Company that:

     

    (a)           Authorization. Such Purchaser has full
power and authority to enter into this Agreement.  This
Agreement,  when executed and delivered by the Purchaser, will
constitute a valid and legally binding obligation of the Purchaser, enforceable
in accordance with its terms, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and any other
laws of general application affecting enforcement of creditors’ rights
generally, and as limited by laws relating to the availability of a specific
performance, injunctive relief, or other equitable remedies.

     

    (b)          Purchase Entirely for Own
Account.  This Agreement is made with the Purchaser in reliance
upon the Purchaser’s representation to the Company, which by the Purchaser’s
execution of this Agreement, the Purchaser hereby confirms, that the Securities
to be acquired by the Purchaser will be acquired for investment for the
Purchaser’s own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that the Purchaser has no
present intention of selling, granting any participation in, or otherwise
distributing the same.  By executing this Agreement, the Purchaser
further represents that the Purchaser does not presently have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of
the Securities. The Purchaser has not been formed for the specific purpose of
acquiring any of the Securities.

     

    
      
         

      

      
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    (c)           Knowledge.  The
Purchaser is aware of the Company’s business affairs and financial condition and
has acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Securities. The Purchaser has had the
opportunity to review and read the SEC Reports, including without limitation the
“Risk Factors” set forth therein, and hereby acknowledge that they understand
the disclosures made in such SEC Reports and the existence of such “Risk
Factors”.

     

    (d)          Restricted
Securities.  The Purchaser understands that the Securities have
not been, and will not be, registered under the Securities Act, by reason of a
specific exemption from the registration provisions of the Securities Act which
depends upon, among other things, the bona fide nature of the investment intent
and the accuracy of the Purchaser’s representations as expressed
herein.  The Purchaser understands that the Securities are “restricted
securities” under applicable U.S. federal, state and province securities laws
and that, pursuant to these laws, the Purchaser must hold the Securities indefinitely unless they
are registered with the Securities and Exchange Commission and qualified by
state authorities, or an exemption from such registration and qualification
requirements is available.  Other than as set forth herein, the
Purchaser acknowledges that the Company has no obligation to register or qualify
the Securities for resale.  The Purchaser further acknowledges that if
an exemption from registration or qualification is available, it may be
conditioned on various requirements including, but not limited to, the time and
manner of sale, the holding period for the Securities, and on requirements
relating to the Company which are outside of the Purchaser’s control, and which
the Company is under no obligation and may not be able to satisfy.

     

    (e)           General Solicitation.
Such Purchaser is not purchasing the Securities as a result of any
advertisement, article, notice or other communication regarding the Securities
published in any newspaper, magazine or similar media or broadcast over
television or radio or presented at any seminar or any other general
solicitation or general advertisement.

     

    (f)           Short Sales and
Confidentiality Prior To The Date Hereof. Other than consummating the
transactions contemplated hereunder, such Purchaser has not directly or
indirectly, nor has any person or entity acting on behalf of or pursuant to any
understanding with such Purchaser, executed any purchases or sales, including
“short sales" as defined in Rule 200 of Regulation SHO under the Exchange Act,
of the securities of the Company (“Stock Transactions”)
during the period commencing from the time that such Purchaser first received a
term sheet (written or oral) from the Company or any other person or entity
representing the Company setting forth the material terms of the transactions
contemplated hereunder until the date hereof (“Discussion Time”). The Purchaser
further agrees not to engage in any Stock Transactions until the Company files a
Current Report on Form 8K under the Exchange Act which annexes copies of the
Transaction Documents thereto.  The Company covenants to file such
Current Report on Form 8K under the Exchange Act within five trading days of the
Initial Closing.

     

    (g)          Accredited
Investor.  The Purchaser is
an accredited investor as defined in Rule 501(a) of Regulation D promulgated
under the Securities Act.

     

    
      
         

      

      
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    4.           
Covenants.
For so long as the Notes remain outstanding,

     

    (a)           Maintaining Properties,
Assets.  The Company shall reasonably maintain in good repair,
working order and condition its properties and other assets, and those of any
Subsidiary, and from time to time make all reasonably necessary repairs,
renewals and replacements thereto.

     

    (b)          Liens.  Company
shall not, and shall not permit any of its Subsidiaries to, create, incur or
suffer to exist any Lien upon any of its or its Subsidiaries’ assets or
properties, except for
(i) Liens created by operation of law such as materialmen’s liens,
mechanic’s liens and other similar liens; (ii) deposits, pledges or Liens
securing obligations incurred in respect of workers’ compensation, unemployment
insurance or other forms of governmental insurance or benefits;
(iii)  Liens imposed by any governmental authority for taxes,
assessments or charges not yet due or that are being contested in good faith by
appropriate proceedings with the establishment of adequate reserves on the
balance sheet of Company; (iv) Liens securing indebtedness to commercial banks
and other institutional lenders; (v) Liens that are subordinate in all respects
to the Liens held by the Purchasers; (vi) Liens in existence as of the date hereof
or (vii) Liens arising from or pursuant to the Converted Indebtedness, (viii)
Liens approved by the holders of a majority of the principal amount of
indebtedness outstanding under the Notes  and (ix) the first priority
security interest in the domain name Bonds.com held by Valhalla Investment
Partners pursuant to a Amended and Restated Secured Note in the principal amount
of 400,000 (the “Applicable
Indebtedness”) dated on or
about May 1, 2009 (collectively, the “Permitted
Liens”).

     

    (c)           Extraordinary
Actions.    Unless otherwise
approved by the holders of a majority of the principal amount of indebtedness
outstanding under the Notes, the Company shall not nor shall it permit any
Subsidiary to: (i) acquire,
sell or otherwise transfer any material assets or rights of the Company or a
Subsidiary or enter into any contract or agreement relating to the sale of
assets which is not consummated pursuant to an arms length transaction, (ii)
enter into any contract, agreement or transaction (including any transfer or
sale of Intellectual Property Rights) with any officer, director, stockholder or
affiliate of the Company or a Subsidiary other than transactions pursuant to
arms length terms (as determined in the sole discretion of the Board), (iii)
other then repayment of the Applicable Indebtedness or any other indebtedness
outstanding as of the date hereof, directly or indirectly pay or declare any
dividend or make any distribution upon, redeem, retire or repurchase or
otherwise acquire, any shares of capital stock or other securities of the
Company or a Subsidiary, or (iv) materially change the Company’s line of
business as currently conducted.

     

    5.           
Other
Agreements of the Parties.

     

    (a)           Transfer
Restrictions.

     

    (i)         The
Securities may only be disposed of in compliance with state and federal
securities laws.  In connection with any transfer of Securities other
than pursuant to an effective registration statement or Rule 144, to the Company
or to an affiliate of a Purchaser, the Company may require the transferor
thereof 

     

    
      
         

      

      
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    to
provide to the Company an opinion of counsel selected by the transferor and
reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such
transfer does not require registration of such transferred Securities under the
Securities Act.  As a condition of transfer, any such transferee shall
agree in writing to be bound by the terms of this Agreement.

     

    (ii)         The
Purchasers agree to the imprinting, so long as is required by this Section 5(a),
of a legend on any of the Securities in the following form:

     

    [NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE]
[CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY.

     

    (b)           Removal of Legend.
Certificates evidencing the Underlying Shares shall not contain any legend
(including the legend set forth in Section 4(a) hereof): (i) while a
registration statement covering the resale of such security is effective under
the Securities Act, or (ii) following any sale of such Underlying Shares
pursuant to Rule 144, or (iii) if such Underlying Shares are eligible for sale
under Rule 144, without the requirement for the Company to be in compliance with
the current public information required under Rule 144 as to such Underlying
Shares and without volume or manner-of-sale restrictions, or (iv) if such legend
is not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the staff of the
Commission).  The Company agrees that at such time as such legend is
no longer required under this Section 4(b), it will, no later than three trading
days following the delivery by a Purchaser to the Company or the Company’s
transfer agent of a certificate representing Underlying Shares, as applicable,
issued with a restrictive legend (such third trading day, the "Legend Removal
Date"), along with an acceptable legal opinion and broker representation letter,
deliver or cause to be delivered to such Purchaser a certificate representing
such shares that is free from all restrictive and other legends.  The
Company may not make any notation on its records or give instructions to the
Company’s transfer agent that enlarge the restrictions on transfer set forth in
this Section.

     

    
      
         

      

      
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    (c)            Compliance with Securities
Act.  Each Purchaser, severally and not jointly with the other
Purchasers, agrees that such Purchaser will sell any Securities pursuant to
either the registration requirements of the Securities Act, including any
applicable prospectus delivery requirements, or an exemption therefrom, and that
if Securities are sold pursuant to a registration statement, they will be sold
in compliance with the plan of distribution set forth therein, and acknowledges
that the removal of the restrictive legend from certificates representing
Securities as set forth in Section 4(b) is predicated upon the Company's
reliance upon this understanding.

     

    (d)            Furnishing of
Information.  Until the earliest of the time that no Purchaser
owns Securities, the Company covenants to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the
Exchange Act even if the Company is not then subject to the reporting
requirements of the Exchange Act.    As long as any
Purchaser owns Securities, if the Company is not required to file reports
pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and
make publicly available in accordance with Rule 144(c) such information as is
required for the Purchasers to sell the Securities under Rule
144.  The Company further covenants that it will take such further
action as any holder of Securities may reasonably request, to the extent
required from time to time to enable such Person to sell such Securities without
registration under the Securities Act within the requirements of the exemption
provided by Rule 144.

     

    (e)             Disclosure;
Publicity.  No Purchaser shall issue any other press release or
other public disclosure with respect to the transactions contemplated hereby,
and neither the Company nor any Purchaser shall issue any such press release or
otherwise make any such public statement without the prior consent of the
Company.

     

    (f)              Reservation of
Securities.  The Company shall maintain a reserve from its duly
authorized shares of Common Stock for issuance pursuant to the Transaction
Documents in such amount as may then be required to fulfill its obligations in
full under the Transaction Documents.   If, on any date, the
number of authorized but unissued (and otherwise unreserved) shares of Common
Stock is less than the number of Underlying Shares issuable upon the conversion
and exercise of all Securities outstanding on such date, then the Board of
Directors shall use commercially reasonable efforts to amend the Company's
certificate or articles of incorporation to sufficiently increase the number of
authorized but unissued shares of Common Stock.

     

    (g)             Form D and Blue
Sky. If required, Company shall file a Form D with respect to the
issuance of the Notes and Warrants (or the issuance of the Underlying Shares) as
required under Regulation D under the Securities Act and, upon written
request, provide a copy thereof to Purchasers promptly after such filing. The
Company shall take such action as the Company shall reasonably determine is
necessary in order to obtain an exemption for or to qualify the Notes and
Warrants for sale to Purchasers pursuant to the terms hereof (or the Underlying
Shares upon conversion of this Notes or exercise of the Warrants) under
applicable securities or “Blue Sky” laws of the states of the United States, and
shall provide evidence of any such action so taken to Purchasers promptly after
such filing.  However, the Company shall not be
required to execute any general consent to service of process in order to obtain
such blue sky clearance, except in a jurisdiction where the Company is already
subject to such process.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    6.           
Piggyback
Registration Rights in
Company.  If, at any time, there is not an effective
registration statement covering the resale all of the Underlying Shares, and
Company shall determine to prepare and file with the Securities and Exchange
Commission (the “Commission”) a
registration statement relating to an offering for its own account or the
account of others under the Securities Act, of any of its equity securities
(other than on Form S-4 or
Form S-8 (each as promulgated under the Securities Act) or their then
equivalents relating to equity securities to be issued solely in connection with
any acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans), then Company
shall send to Purchasers a written notice of such determination and, if within
ten (10) days after receipt by Purchasers of such notice, Company shall receive
a request in writing from Purchasers, Company shall include in such registration
statement all or any part of such Registrable Securities holders requests to be
registered at no cost to Holders
(other than underwriting discounts, fees and
commissions).  Holders (or their designee(s)) shall also be
provided with such other rights, and Company shall have such obligations, as
customarily accompany investor piggyback registration rights, including, without
limitation, the right of Holders to customary indemnification by Company,
Company’s obligation to prepare and file with the Commission such amendments and
supplements to such registration statement as may be necessary to keep such
registration statement effective until the disposition of all securities covered
by such registration statement, the obligation of Company to register and
qualify the securities covered by such registration statement under applicable
state securities and blue sky laws, the obligation of Company to cause the
securities covered by such registration statement to be listed or quoted on the
Trading Market on which Company’s securities are then listed or quoted and the
obligation of Company to cause to be provided customary legal opinions and
comfort letters of its independent certified accountants if requested in
connection with a sale pursuant to such registration statement).  Notwithstanding the
foregoing, if a registration involves an underwritten offering, and the lead
managing underwriter shall advise Company that the amount of securities to be
included in the offering exceeds the amount which can be sold in the offering,
the number of securities owned by Holders to be included in the offering shall
be eliminated or reduced as required by the managing underwriter.  Notwithstanding anything
contained herein to the contrary, securities shall cease to be Registrable
Securities when (a) a Registration Statement covering such Registrable
Securities has been declared effective by the Commission and it has been
disposed of pursuant to such effective Registration Statement or (b) such
Registrable Securities may be sold pursuant to Rule 144 under the Securities Act
without volume restriction.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    7.           
Miscellaneous.

     

    (a)           
Successors
and Assigns.  The terms and
conditions of this Agreement shall inure to the benefit of and be binding upon
the respective successors and assigns of the parties.  Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

     

    (b)           
Governing
Law.  This Agreement
and all acts and transactions pursuant hereto and the rights and obligations of
the parties hereto shall be governed, construed and interpreted in accordance
with the laws of the State of Florida, without giving effect to principles of
conflicts of law.  Each party agrees that all legal proceedings
concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other Transaction Documents (whether
brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced exclusively in
the state and federal courts sitting in Palm Beach County,
Florida.  Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in Palm Beach County,
Florida for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with
respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is improper or is an inconvenient
venue for such proceeding.  Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any other manner permitted by
law.   If either party shall commence an action or proceeding to
enforce any provisions of the Transaction Documents, then the prevailing party
in such action or proceeding shall be reimbursed by the other party for its
reasonable attorneys' fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or
proceeding.

     

    (c)           
Counterparts.  This Agreement
may be executed in two or more counter­parts, each of which shall be deemed
an original and all of which together shall constitute one
instrument.

     

    (d)           
Titles
and Subtitles.  The titles and
subtitles used in this Agreement are used for convenience only and are not
to be considered in construing or interpreting this Agreement.

     

    (e)           
Notices.  Any notice
required or permitted by this Agreement shall be in writing and shall be deemed
sufficient upon receipt, when delivered personally or by courier, overnight
delivery service, or 48 hours after being deposited in the U.S. mail as
certified or registered mail with postage prepaid and return receipt requested,
if such notice is addressed to the party
to be notified at such party’s address as set forth below or as subsequently
modified by written notice.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (f)           
Replacement
of Securities. If any certificate or instrument evidencing any Securities
is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be
issued in exchange and substitution for and upon cancellation thereof (in the
case of mutilation), or in lieu of and substitution therefor, a new certificate
or instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction.  The applicant for a new
certificate or instrument under such circumstances shall also pay any reasonable
third-party costs (including customary indemnity) associated with the issuance
of such replacement Securities.

     

    (g)           Amendments
and Waivers.  Any term of this
Agreement may be amended or waived only with the written consent of the Company
and the holders of a majority of the outstanding principal amount of the Notes.
Any amendment or waiver effected in accordance with this Section 7(g) shall
be binding upon each Holder and each transferee of the Securities, each future
holder of all such Securities, and the Company.

     

    (h)           Severability.  If one or more
provisions of this Agreement are held to be unenforceable
under applicable law, the parties agree to renegotiate such provision in good
faith, in order to maintain the economic position enjoyed by each party as close
as possible to that under the provision rendered unenforceable.  In
the event that the parties cannot reach a mutually agreeable and enforceable
replacement for such provision, then (i) such provision shall be excluded
from this Agreement, (ii) the balance of the Agreement shall be interpreted
as if such provision were so excluded and (iii) the balance of the
Agreement shall be enforceable in accordance with its terms.

     

    (i)           
Entire
Agreement.  This Agreement,
and the documents referred to herein constitute the entire agreement between the
parties hereto pertaining to the subject matter hereof, and any and all other
written or oral agreements existing between the parties hereto are expressly
canceled.

     

    (j)           
Survival
of Representations, Warranties and Covenants. The representations and
warranties contained in Sections 2 hereof shall survive until such time as the
later of: (i) the date on which all the Notes have been converted or satisfied
and (ii) the date on which all the Warrants have been exercised in full or
expired.

     

    (k)           Exculpation
Among Purchasers.  Each Holder
acknowledges that it is not relying upon any person, firm or corporation, other
than the Company and its officers and directors, in making its investment or
decision to invest in the Company.  Each Holder agrees that no Holder
nor the respective controlling persons, officers, directors, partners, agents,
or employees of any Holder shall be liable for any action heretofore or
hereafter taken or omitted to be taken by any of them in connection with the
Securities.

     

    

     

    

    [Signature
Pages Follow]

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    The
parties have executed this Secured Convertible Note and Warrant Purchase Agreement as of
the date first written above.

     

    

    
      	 
      	 
      	
              COMPANY:

            
	 
      	 
      	 
      
	 
      	 
      	
              BONDS.COM
      GROUP, INC.

            
	 
      	 
      	 
      
	 
      	 
      	
              By.

            	 
      
	 
      	 
      	
              Name:

            	 
      
	 
      	 
      	
              Title:

            	 
      

    

    

    

    
      	 
      	 
      	
              Address:

            
	 
      	 
      	
              Facsimile
      Number:

            

    

    

    

     

    
 

    SIGNATURE
PAGE TO SECURED CONVERTIBLE NOTE AND WARRANT

    PURCHASE
AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	 
      	 
      	
                PURCHASERS:

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                (Purchaser)

              
	 
      	 
      	 
      
	 
      	 
      	
                By.

              	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                Name:

              	 
      
	 
      	 
      	 
      	
                (print)

              
	 
      	 
      	
                Title:

              	 
      

      

    

    

    

    
      	 
      	 
      	
              Address:

            
	 
      	 
      	
              Facsimile
      Number:

            

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibits

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Exhibit A

                              	
                                Schedule
      of Purchasers

                              
	 
      	 
      
	
                                Exhibit B

                              	
                                Form
      of Secured Convertible Promissory Note

                              
	 
      	 
      
	
                                Exhibit
      C

                              	
                                Form
      of Common Stock Warrant

                              
	 
      	 
      
	
                                Exhibit
      D

                              	
                                Form
      of Security
Agreement

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    
      	
              Purchaser
      Name & Address

            	
              Number
      of Units

            	
              Principal
      Amount of Note

            	
              Number
      of shares of Common Stock exercisable under Warrant

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