Document:

exv10w6

EXHIBIT 10.6

Separation Agreement and Release of Claims

This Separation Agreement and Release of Claims (“Agreement”) is made by and between Jane
Batts, an Employee, and Tandy Brands Accessories, Inc., Employer (collectively, the “Parties”).

RECITALS:

WHEREAS, Employer is undergoing a reduction-in-force and restructuring that will result in the
elimination or consolidation of the functions of Employee’s position;

WHEREAS, Employer desires to provide Employee with separation benefits to assist him/her in
the transition resulting from the elimination of his/her position with Employer; and

WHEREAS, Employee agrees, in exchange for such separation benefits, to waive and release any
and all claims that s/he may have against Employer.

NOW, THEREFORE, in consideration of the mutual promises and releases contained herein, and for
other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties
agree as follows:

     1. Salary and Benefits Continuation. Upon the execution of this Agreement, the
Parties agree as follows:

	 	a.	 	Employee shall be laid off from employment with Employer effective January 19,
2008 (hereinafter the “Layoff Date”).
	 
	 	b.	 	Employee will be provided with his/her final paycheck, including any earned but
unused paid time off, within (6) days of termination date.
	 
	 	c.	 	In an effort to ease the transition into different employment, Employer agrees
to pay Employee 26 weeks of Employee’s current base salary, less FIT and FICA
withholding, as required by law, on regularly scheduled pay days commencing on the
first scheduled pay day after the end of the Revocation Period, as defined herein.
	 
	 	d.	 	Employee agrees that s/he will not apply or reapply for employment with
Employer, and understands that if s/he does, such application will be rejected pursuant
to this Agreement.
	 
	 	e.	 	Employee acknowledges that by signing this Agreement and accepting
the benefits provided herein, s/he is receiving benefits to which s/he would not
otherwise be entitled. Employee pledges that s/he has carefully read and fully
understands all the provisions of this Agreement, and that s/he is signing it
voluntarily because s/he wants to take advantage of Employer’s separation offer as
outlined in this Agreement.

					
	 	 	 	 	 
	Revised January 2009
	 	Page 1
	 	     /s/ JB      Employee Initials

 

 

	 	f.	 	Following the Layoff Date, Employee shall be entitled to any and all other
rights or benefits afforded to other terminated employees of Employer, including,
without limitation, the right to elect to continue, at Employee’s cost, coverage under
Employer’s health plan, in accordance with the health care continuation coverage
provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) and
applicable law. A separate notice of COBRA rights will be provided to Employee.
	 
	 	g.	 	The Parties understand that any vested rights Employee may have under
Employer’s health care program, life insurance program, employee stock purchase
program, employee investment plan, flexible benefit plan, and flexible spending account
are excluded from the scope of this Agreement, and are not terminated or released by
it.

     2. Release. Employee, on behalf of him/herself, his/her descendants, ancestors,
dependents, heirs, executors, administrators, successors, and assigns, and each of them, hereby
covenants not to sue and fully releases, acquits and discharges Employer, and its subsidiaries and
affiliates, past, present, future, and each of them, as well as its owners, trustees, directors,
officers, shareholders, agents, servants, employees, representatives, successors, and assigns,
related companies or entities, jointly and individually, and each of them (collectively referred to
as “Releasees”) with respect to and from any and all claims, wages, demands, assistance, support,
rights, liens, agreements, contracts, covenants, actions, suits, rights to appeal, entitlements and
notices, causes of action, obligations, debts, costs, expenses, interests, attorneys’ fees,
contributions, damages, judgments, orders and liabilities of whatever kind or nature in law,
equity, or otherwise, whether known or unknown, suspected or unsuspected, and whether or not
concealed or hidden, which Employee has at any time heretofore owned or held against said
Releasees, including, without limitation, those arising out of or in any way connected with his/her
employment relationship with Employer, or Employee’s layoff or any other transactions, occurrences,
acts or omissions, or any loss, damage, or injury whatever, known or unknown, suspected or
unsuspected, resulting from any of them, committed or omitted prior to the date of this Agreement,
and including, without limitation, claims for breach of contract, libel, slander, wrongful
discharge, intentional infliction of emotional harm, or other tort, or discrimination or harassment
based upon any federal, state, or municipal statute or local ordinance relating to discrimination
in employment. Employee does not waive his/her right to pursue claims for unemployment
compensation. The claims waived and discharged include, but are not limited to those arising under
the following:

Title VII of the Civil Rights Act of 1964; Executive Order 11246; Equal Pay Act;
Vietnam Era Veteran Readjustment Assistance Act; Civil Rights Act of 1991; 42 U.S.C.
1981 (the 1866 Civil Rights Act); Americans with Disabilities Act; Employee
Retirement Income Security Act; Family and Medical Leave Act; Fair Labor Standards
Act; all laws, including the common laws of the State of Texas
regarding employment-related claims; disputed wages, including claims for any back
wages or overtime; wrongful discharge and/or breach of contract claims; and tort
claims, including invasion of privacy, defamation, fraud, and infliction of
emotional distress.

					
	 	 	 	 	 
	Revised January 2009
	 	Page 2
	 	     /s/ JB      Employee Initials

 

 

     3. Indemnity Regarding Assignment of Claims. Employee represents and warrants that
s/he has not heretofore assigned or transferred, or purported to assign or transfer, to any person,
entity, or individual whatsoever, any of the claims released as set forth in Paragraph 2, above.
Employee agrees to indemnify and hold harmless the Releasees (as defined in Paragraph 2, above)
against any claim, demand, debt, obligation, liability, cost, expense, right of action, or cause of
action based on, arising out of, or in assignment. Employee agrees that s/he will not bring any
legal action against the Releasees for any claim that occurred prior to signing this Agreement.
However, this stipulation does not prohibit Employee from filing a lawsuit for the sole purpose of
enforcing his/her rights under this Agreement, or from enforcing rights that may arise subsequent
to the signing of this Agreement. Employee agrees that if a claim s/he has waived or discharged
under this Paragraph 3 is prosecuted in his/her name, or on his/her behalf before any court or
administrative agency, s/he waives and agrees not to take any award of money or other damages from
such suit. Employee also agrees that if a claim waived or discharged under this Paragraph 3 is
prosecuted in his/her name, s/he will immediately request in writing that the claim on his/her
behalf be withdrawn. Employee also agrees that s/he waives on behalf of him/herself and his/her
attorneys all claims for attorneys’ fees and expenses, and court costs for any claim waived and
discharged under this Paragraph 3.

     4. Release, Waiver, and Covenant Not to Sue Under the ADEA. By signing this
Agreement, Employee consents to the following:

	 	a.	 	Release and Waiver of Rights: Employee irrevocably and unconditionally
releases Employer and the other Releasees, or any of them, from any and all claims,
complaints, liabilities, damages, causes of action, suits, rights, costs and expenses
(including attorneys’ fees) from any and all age discrimination, harassment, and/or
retaliation claims under the Age Discrimination in Employment Act (“ADEA”).
	 
	 	b.	 	Covenant Not to Sue: Employee agrees that s/he will not bring any
legal action against the Releasees for any claim under the ADEA that existed prior to
the time s/he signed this Agreement; however, this stipulation does not keep Employee
from filing a lawsuit for the sole purpose of enforcing his/her rights under this
Agreement, from enforcing or securing any rights that may arise subsequent to Employee
signing this Agreement, or from enforcing or securing any rights provided Employee
under the ADEA that may not be legally waived.

     5. Entire Agreement. This Agreement constitutes and contains the entire Agreement and
understanding concerning Employee’s employment and layoff, and the other subject matters addressed
herein between the Parties, and supersedes and replaces all prior negotiations and all prior
Agreements proposed or otherwise, whether written or oral, concerning the subject matter hereof.

     6. Governing Law. This Agreement shall be governed by and subject to the laws and
exclusive jurisdiction of the courts of the State of Texas. In the event that Employee
breaches any of the provisions of this Agreement, Employee agrees to pay Employer’s reasonable
costs of prosecuting such claims, including costs and attorneys’ fees.

					
	 	 	 	 	 
	Revised January 2009
	 	Page 3
	 	     /s/ JB      Employee Initials

 

 

     7. Severability. In the event that one or more of the provisions of this Agreement
shall for any reason be held to be illegal or unenforceable, this Agreement shall be revised only
to the extent necessary to make such provision(s) legal and enforceable.

     8. Enforceability. Before Employee takes any legal action to challenge the validity
or enforceability of this Agreement, for any reason, including, without limitation, any claim that
Employee did not knowingly or voluntarily enter into in this Agreement, Employee agrees that s/he
must first return to Employer the payment(s) received by Employee; provided, however, that this
Paragraph 8 shall not apply to the release and waiver and covenant not to sue under the ADEA.

     9. Return of Property. Employee agrees to return to Employer any and all property
belonging to Employer or the other Releasees, including, but not limited to: originals and all
copies of files, memoranda, records, software and related program passwords, computer printouts and
disks, door and file keys, laptop computers, cell phones, smart phones, Blackberry, electronic
cards, and all other property which Employee received or created in connection with his/her
employment with Employer. All such property must be returned to Employer upon Employee’s execution
of this Agreement. Employee agrees and guarantees that s/he has not kept any copies, electronic or
otherwise, of any of Employer’s property. Upon request by Employer, Employee will provide a sworn
certificate that s/he is in compliance with this Agreement, that s/he has returned all of
Employer’s property, and that s/he is not using any confidential information belonging to Employer.

     10. Confidential Information. During his/her employment with Employer, Employee was
provided with, and had access to, information regarding Employer’s methods of business, and was
also provided with, and had access to, other confidential information. Confidential information
includes, but is not limited to, customer lists, customer information, business plans, marketing
plans, cost information, sourcing information, compensation figures, product pricing information,
product design specification, future business plans, any and all documents, memoranda, records and
files, correspondence, notes, specifications, and plans, policies and procedures, computer
programs, software, and other proprietary data of whatever type or nature. Employee understands
that this confidential information is in the nature of a trade secret, and is the sole property of
Employer. Employee promises and agrees that s/he will not directly or indirectly, use for his/her
benefit, use to the injury of Employer, or divulge to persons other than authorized representatives
of Employer, any confidential information of the Employer. Upon execution of this Agreement, all
confidential information shall be left with or returned to Employer. Employee agrees that his/her
obligations under this Paragraph 10 shall outlast the execution of this Agreement.

     11. Nondisparagement. Employee agrees that s/he will not make any offensive remarks
or statements to anyone regarding Employer and/or any of the other Releasees, including, but not
limited to, statements or remarks regarding his/her employment with Employer or the termination of
that employment. Employee also agrees that s/he will instruct his/her
attorney and spouse (if married) to abide by the disparagement prohibition contained in this
Paragraph 11. Employee also agrees that s/he will not say or do anything that damages or

					
	 	 	 	 	 
	Revised January 2009
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	 	     /s/ JB      Employee Initials

 

 

impairs in any way the business organization, goodwill, or reputation of Employer or any of
the other Releasees.

     12. No Solicitation of Employees. Employee understands and agrees that s/he will not
solicit or hire, directly or indirectly, any individual employed by Employer, or who worked for
Employer during the previous six (6) months, for a period of one (1) year after execution of this
Agreement.

     13. Violation of Agreement. Employee understands and agrees that if s/he violates any
of the promises made in this Agreement, s/he will not receive any additional payments due under
this Agreement, must return any payments already received, and may be liable for additional
damages, including costs and attorneys’ fees.

     14. Voluntary Agreement. The Parties acknowledge that they have read the foregoing
Agreement, understand its contents, and accept and agree to the provisions it contains, and hereby
execute it voluntarily and knowingly, and with full understanding of its consequences. Employee
acknowledges in executing this Agreement that s/he is not relying, and has not relied on, any
guarantee or statement (except those contained in this Agreement) made by any of the Releasees or
any agent of the Releasees with regard to the subject matter or effect of this Agreement or
otherwise. This Agreement sets forth the entire Agreement between Employee and Employer, and takes
the place of any and all prior arrangements or understandings between Employee and Employer. This
Agreement is entered into in the State of Texas, and shall be interpreted in accordance with the
laws of the State of Texas and in Tarrant County, Texas. The waiver by Employer of a breach of any
provision of this Agreement by Employee shall not function or be construed as a waiver of any
subsequent breach by Employee. Employee agrees that the provisions contained in this Agreement are
fair and reasonable. Employee acknowledges that irreparable injury will result to Employer in the
event of Employee’s breach of any of the provisions herein. Accordingly, in addition to any other
rights or remedies available to Employer for breach of this Agreement by Employee, Employer shall
be entitled to enforcement by preliminary restraining order and injunction. Employee covenants and
agrees to keep this Agreement confidential, and promises not to disclose its existence or terms in
any form or fashion without the prior written consent of Employer, unless disclosure is legally
required. Employer agrees, however, that Employee may inform his/her spouse (if married), and also
his/her attorney, accountant, and CPA of the existence and terms of this Agreement as required for
legal and/or financial planning or advice.

     15. NOTICE TO EMPLOYEE. EMPLOYEE SHOULD CAREFULLY REVIEW AND UNDERSTAND THIS
AGREEMENT BEFORE SIGNING IT. THIS AGREEMENT
INCLUDES A RELEASE AND WAIVER OF LEGAL RIGHTS AND CLAIMS. EMPLOYER ADVISES EMPLOYEE TO
CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS AGREEMENT. BY SIGNING THIS AGREEMENT, EMPLOYEE
AGREES THAT S/HE FULLY UNDERSTANDS HIS/HER RIGHTS TO DISCUSS THIS AGREEMENT WITH AN ATTORNEY OF
HIS/HER CHOICE (AT HIS/HER EXPENSE), AND THAT S/HE HAD ADEQUATE OPPORTUNITY TO DO SO. EMPLOYEE MAY
ACT UPON THIS AGREEMENT ANYTIME PRIOR TO MARCH 11, 2009, WHICH WILL ALLOW EMPLOYEE MORE THAN 45
DAYS TO CONSIDER IT AFTER IT HAS BEEN

					
	 	 	 	 	 
	Revised January 2009
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	 	     /s/ JB      Employee Initials

 

 

DELIVERED TO EMPLOYEE. IF EMPLOYEE WISHES TO ACCEPT AND AGREE TO THESE TERMS, EMPLOYEE SHOULD
SIGN THE AGREEMENT IN THE PRESENCE OF A NOTARY PUBLIC, AND DELIVER IT TO CRAIG MACKEY PRIOR TO
MARCH 11. 2009. FOR A PERIOD OF 7 DAYS AFTER EMPLOYEE’S EXECUTION OF THIS AGREEMENT, EMPLOYEE MAY
REVOKE THIS AGREEMENT BY DELIVERING A WRITTEN NOTICE TO CRAIG MACKEY. THIS AGREEMENT WILL NOT
BECOME EFFECTIVE OR ENFORCEABLE (AND THE SALARY CONTINUATION PAYMENTS TO EMPLOYEE WILL NOT BEGIN
UNTIL THIS 7-DAY REVOCATION PERIOD HAS PASSED.

     16. Employee’s Representations. By signing this Agreement, Employee represents and
warrants that s/he:

	 	1.	 	Understands completely his/her right to review all
aspects of this Agreement with an attorney of his/her choice (at
his/her expense), and that s/he has had adequate opportunity to do so;
	 
	 	2.	 	Was given at least 45 days from the date s/he received
this Agreement to consider it, and understands s/he has 7 days after
signing it to revoke it (“Revocation Period”);
	 
	 	3.	 	Has been provided and has reviewed a list of
departmental employees, along with the job titles and ages of all
individuals eligible for Employer’s cash separation program; and
	 
	 	4.	 	Has been provided and has reviewed a list of the job
titles and ages of all individuals in the same department who were not
selected for Employer’s cash separation program. This list is set out
on Exhibit “A” attached hereto, and made a part of this Agreement for
all purposes.

PLEASE READ CAREFULLY. THIS AGREEMENT INCLUDES A RELEASE OF

KNOWN AND UNKNOWN CLAIMS.

					
	 	 	 	 	 
	Revised January 2009
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	 	     /s/ JB      Employee Initials

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	EMPLOYEE	 	 	 	TANDY BRANDS ACCESSORIES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Jane Batts	 	 	 	By:	 	/s/ Craig Mackey	 	 
	 	 	 	 	 	 	 	 	 
	JANE BATTS	 	 	 	 	 	CRAIG MACKEY

Chief Financial Officer	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	1-28-09
	 	 
	 	Date:
	 	2/3/09
	 	 

	 	 	 
	STATE OF TEXAS 

COUNTY OF TARRANT

	 	§

§

§

SWORN TO AND SUBSCRIBED before me, the undersigned Notary Public, by

in person
28, on this Jan day of 28, 2009.

	 	 	 	 	 
	 	 	 
	 	/s/ RF Lafave
 	 
	 	NOTARY PUBLIC in and for 	 
	 	The State of Texas

 	 
	 

My Commission Expires:

 

SEAL

					
	 	 	 	 	 
	Revised January 2009
	 	Page 7
	 	     /s/ JB      Employee Initialsexv10w7

EXHIBIT 4.4 AND 10.7

AMENDMENT NO. 1 TO CREDIT AGREEMENT

This Amendment No. 1 to Credit Agreement (“Amendment”) is dated April 28, 2009,
effective as of March 31, 2009 (“Effective Date”) between Tandy Brands Accessories, Inc., a
Delaware corporation (“Borrower”) and Comerica Bank, a Texas banking association (“Bank”).

Borrower and Bank entered into a Credit Agreement dated as of February 12, 2008 (“Credit
Agreement”) providing terms and conditions governing certain loans and other credit accommodations
extended by Bank to Borrower (“Indebtedness”). Borrower and Bank have agreed to amend the terms of
the Credit Agreement as provided in this Amendment.

Accordingly, Borrower and Bank agree as follows:

1. Capitalized Terms. In this Amendment, capitalized terms that are used without separate
definition shall have the meanings given to them in the Credit Agreement.

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

(a) The following term, which is defined in the Defined Terms Addendum attached to the
Credit Agreement, is given the following amended definition:

“Revolving Credit Commitment” shall mean TWENTY SEVEN MILLION FIVE HUNDRED THOUSAND
DOLLARS ($27,500,000).

(b) Section 1.8 of the Loan Terms, Conditions and Procedures Addendum attached to the Credit
Agreement is amended to read in its entirety as follows:

     “1.8 Unused Commitment Fee. Borrower shall pay to Bank an unused
commitment fee in an amount equal to the product of (a) 0.50% multiplied by (b) the
difference between (i) the Revolving Credit Commitment and (ii) the aggregate
outstanding principal balance of all Revolving Loans. Such fee shall be computed on
a daily basis and shall be payable quarterly in arrears as of the end of each of
Borrower’s fiscal quarters. Bank shall invoice Borrower for such fees, which
invoice shall be due and payable within fifteen (15) days after receipt.”

(c) Section 4.3(g) of the Credit Agreement is amended to read in its entirety as follows:

     “(g) within thirty (30) days after and as of the end of each calendar month, a
Compliance Certificate dated as of the end of such month;”

(d) The following subsection (k) is hereby added to Section 5.4 of the Credit Agreement
immediately following existing subsection (j):

     “(k) Borrower’s obligations with respect to “Earn-Out Payments” under the
Asset Purchase Agreement dated as of April 23, 2009 between Borrower and Chambers
Belt Company.”

(e) Section 1.1 of the Financial Covenants Addendum attached to the Credit Agreement is
amended to read in its entirety as follows:

 

 

     “1.1 Tangible Net Worth. Maintain a Tangible Net Worth as of the end
of each of Borrower’s fiscal quarters, to be tested as of the end of each such
fiscal quarter, not less the amount set forth below during the corresponding period
set forth below:

	 	(a)	 	Thirty Three Million Five Hundred
Thousand Dollars ($33,500,000) as of March 31, 2009;
	 
	 	(b)	 	as of the end of each fiscal
quarter thereafter, the sum of:

	 	(i)	 	the amount of Tangible Net Worth that was required to be
maintained as of the end of the immediately preceding fiscal
quarter, plus
	 
	 	(ii)	 	fifty percent (50%) of the Net Income (if positive), for
the fiscal quarter ended as of the date of determination,
plus one hundred percent of the Fixed Asset Gain/Loss (if
positive), for the fiscal quarter ended as of the date of
determination; plus
	 
	 	(iii)	 	one hundred percent (100%) of the Net Cash Proceeds
from the issuance of any equity ownership interests during
the fiscal quarter ended as of the date of determination.”

3. Representations. Borrower represents and agrees that:

(a) Except as expressly modified in this Amendment, (i) the representations and warranties
set forth in the Credit Agreement and in each related document, agreement, and instrument
remain true and correct in all respects, except to the extent that they expressly speak as
of a specific prior date, and (ii) the covenants set forth in the Credit Agreement continue
to be satisfied in all respects, and are legal, valid and binding obligations with the same
force and effect as if entirely restated in this Amendment.

(b) When executed, this Amendment will be a duly authorized, legal, valid, and binding
obligation of Borrower enforceable in accordance with its terms.

(c) the Certificate of Incorporation, Bylaws and resolutions of Borrower certified by the
Assistant Secretary of Borrower and delivered to Bank on or about February 12, 2008, remain
in full force and effect, have not been amended, repealed or rescinded in any respect and
may continue to be relied upon by Bank until written notice to the contrary is received by
Bank, and Borrower continues to be in good standing under the laws of the State of Delaware.

(d) There is no default continuing under the Credit Agreement, or any related document,
agreement, or instrument, and no event has occurred or condition exists that is or, with the
giving of notice or lapse of time or both, would be such a default.

     4. Conditions Precedent. The effectiveness of this Amendment is subject to Bank’s receipt
of all of the following:

(a) this Amendment and such other agreements and instruments reasonably requested by Bank
pursuant hereto (including such documents as are necessary to create and perfect Bank’s
interest in the Collateral), each duly executed by Borrower;

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(b) payment to Bank of an amendment fee in the amount of $100,000; and

(c) such other documents and completion of such other matters as Bank may reasonably deem
necessary or appropriate, including those items set forth on the Documentation Checklist
attached hereto as Exhibit “A”; provided however, solely as to item 18 on Exhibit “A”
(Warehouse Agreement), Borrower shall only be required to use commercially reasonable
efforts to obtain the signature of UPS Supply Chain Solutions, Inc. (“UPS”), and Borrower’s
inability to obtain such signature will not cause this Amendment to be ineffective.

5. Acknowledgment of Change in Chief Executive Officer: The Borrower has informed Bank
that, effective October 1, 2008, J.S.B. Jenkins was replaced by N. Roderick McGreachy, III as chief
executive officer of Borrower. The Bank acknowledges that the replacement of J.S.B. Jenkins as
chief executive officer of the Borrower does not constitute an Event of Default under Section
6.1(g)(i) of the Credit Agreement.

6. No Other Changes. Except as specifically provided in this Amendment, this Amendment
does not vary the terms and provisions of any note, mortgage, security agreement, or other
document, instrument, or agreement evidencing, securing or relating to the Indebtedness or the
Credit Agreement (“Loan Documents”). This Amendment shall not impair the rights, remedies, and
security given in and by the Loan Documents. The terms of this Amendment shall control any
conflict between its terms and those of the Credit Agreement.

7. Ratification. Except for the modifications under this Amendment, the parties ratify and
confirm the Credit Agreement and the Loan Documents and agree that they remain in full force and
effect.

8. Further Modification; No Reliance. This Amendment may be altered or modified only by
written instrument duly executed by Borrower and Bank. In executing this Amendment, Borrower is
not relying on any promise or commitment of Bank that is not in writing signed by Bank. This
Amendment shall not be more strictly construed against one of the parties as compared to the other.

9. Confirmation of Lien Upon Collateral. Borrower acknowledges and agrees that
Indebtedness and the individual advances under the Indebtedness are secured by the Collateral (as
defined in the Credit Agreement) and that the Loan Documents constitute valid, legal, and binding
agreements and obligations of Borrower. The Collateral is and shall remain subject to and
encumbered by the lien, charge, and encumbrance of any applicable Loan Document, and nothing herein
contained shall affect or be construed to affect the lien or encumbrance created by any applicable
Loan Document respecting the Collateral, or its priority over other liens or encumbrances.

10. Successors and Assigns. This Amendment shall inure to the benefit of and be binding
upon the parties and their respective successors and assigns.

11. Governing Law. The parties agree that the terms and provisions of this Amendment shall
be governed by and construed in accordance with the internal laws of the State of Michigan, without
regard to principles of conflicts of law.

12. No Defenses. Borrower acknowledges, confirms, and warrants to Bank that as of the date
hereof Borrower has absolutely no defenses, claims, rights of set-off, or counterclaims against
Bank under, arising out of, or in connection with, this Amendment, the Credit Agreement, the Loan
Documents and/or the individual advances under the Indebtedness, or against any of the indebtedness
evidenced or secured thereby.

-3-

 

13. Expenses. Borrower upon request shall promptly pay all out-of-pocket fees, costs,
charges, expenses, and disbursements of Bank, including, without limitation, reasonable attorneys’
fees and legal expenses, incurred in connection with the preparation, execution, and delivery of
this Amendment, and the other documents contemplated by this Amendment.

14. Counterparts. This Amendment may be executed in one or more counterparts, and by
separate parties on separate counterparts, all of which shall constitute one and the same
agreement.

[end of amendment — signature page follows]

-4-

 

     This Amendment No. 1 to Credit Agreement is executed and delivered as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	Comerica Bank	 	 	 	TANDY BRANDS ACCESSORIES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven Colwick
	 	 	 	By:
	 	/s/ Craig Mackey	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name: Steven Colwick
	 	 	 	 	 	Name: Craig Mackey	 	 
	 

	 	Title: Vice President — Texas Division
	 	 	 	 	 	Title: Chief Financial Officer	 	 

Acknowledgement and Consent of Guarantors

     Each of the undersigned has guaranteed the payment and performance of the Indebtedness by
Borrower pursuant to a Guaranty dated as of February 12, 2008 (“Guaranty”). Each of the
undersigned acknowledges and consents to the execution, delivery and performance of the foregoing
Amendment No. 1 to Credit Agreement and the $27,500,000 Master Revolving Note dated as of [March
31, 2009] from Borrower to Bank, and agrees that its guaranty remains in full force and effect.
Each of the undersigned further represents that (a) it is in compliance with all of the terms and
conditions of its Guaranty; and (b) the organizational documents and resolutions of each of the
undersigned certified by an authorized officer of the undersigned and delivered to Bank on or about
February 12, 2008, remain in full force and effect, have not been amended, repealed or rescinded in
any respect and may continue to be relied upon by Bank until written notice to the contrary is
received by Bank, and each of the undersigned continues to be in good standing under the laws of
the state of its incorporation or formation.

	 	 	 	 	 	 	 	 	 
	ACCESSORY DESIGN GROUP, INC.
	 	 	 	TBAC MANAGEMENT COMPANY L.P.	 	 
	TBAC — PRINCE GARDNER, INC.
	 	 	 	 	 	 	 	 
	AMITY/ROLFS, INC.
	 	 	 	By:	 	TBAC General Management Company	 	 
	TBAC GENERAL MANAGEMENT COMPANY
	 	 	 	Its:	 	General Partner	 	 
	TBAC INVESTMENTS, INC.
	 	 	 	 	 	 	 	 
	TBAC INVESTMENT TRUST
	 	 	 	By:	 	/s/ Craig Mackey	 	 
	 	 	 	 	 	 	 	 	 
	TANDY BRANDS ACCESSORIES HANDBAGS, INC.
	 	 	 	 	 	Craig Mackey	 	 
	STAGG INDUSTRIES, INC.
	 	 	 	Its:	 	Vice President	 	 
	TBAC — TOREL, INC.
	 	 	 	 	 	 	 	 
	TBAC — ACQUISITION, INC.
	 	 	 	 	 	 	 	 
	SUPERIOR MERCHANDISE COMPANY
	 	 	 	 	 	 	 	 
	TBAC MASS MERCHANT QUALITY CONTROL, INC.
	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	By:  	
/s/ Craig Mackey
 	 	 
	 	Craig Mackey, as Vice President of each of the above                                                                                                                     	 	 

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