Document:

Form of Fraternity Federal Savings and Loan Asso. Deferred Compensation Plan

 Exhibit 10.12 
 FORM OF 
 FRATERNITY FEDERAL SAVINGS AND LOAN ASSOCIATION 

DEFERRED COMPENSATION PLAN 
 Purpose 
 The purpose of this Fraternity Federal Savings and Loan
Association Deferred Compensation Plan (the “Plan”) is to provide deferred compensation to certain eligible employees of Fraternity Federal Savings and Loan Association (the “Association”). The Plan is intended to be unfunded for
tax purposes and to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended. 

Article 1 

Definitions 
 Whenever used in this Plan, the following words and phrases shall have the meanings specified: 
 Association means Fraternity Federal Savings and Loan Association. 

Board of Directors means the Board of Directors of the Association. 

Change in Control means a change in control of the Association or Fraternity Community Bancorp, Inc., as defined in
Section 409A of the Code and rules, regulations, and guidance of general application thereunder issued by the Department of the Treasury, including a change in ownership, change in effective control or change in ownership of a substantial
portion of assets, as defined for purposes of Section 409A of the Code. A Change in Control shall not include a conversion of the Association from the mutual to stock form of ownership. 

Code means the Internal Revenue Code of 1986, as amended, and rules, regulations and guidance of general application issued
thereunder by the Department of Treasury. 
 Deferred Compensation Account means the Association’s accounting of the
Participant’s accumulated deferred compensation plus accrued interest. 
 Effective Date means July 29, 2004,
as originally established, and as amended from time to time. 
 Participant means an employee of the Association who is
designated by the Board of Directors as eligible to participate in the Plan by the Board of Directors. 
 Plan Year means
the calendar year. 
 Section 409A means Section 409A of the Code and the Department of Treasury rules,
regulations or other authoritative guidance issued thereunder. 
 Separation from Service means a Participant’s
service (as an executive and/or independent contractor to the Association and any member of a controlled group, as defined in Section 414 of the Code), terminates for any reason, other than because of a leave of absence approved by the
Association or the Participant’s death. 
 Stock-Based Deferral Account means the portion of the Participant’s
benefit invested in stock pursuant to Section 3.1.3 of the Plan. 

 Stock Unit means a means a hypothetical share of stock of Fraternity Community
Bancorp, Inc. Each Stock Unit held in a Stock-Based Deferral Stock Account shall be deemed to have the same value, from time to time, as a share of stock of Fraternity Community Bancorp, Inc. 

Article 2 

Credits and Vesting 
 2.1 Credits. As of each month, the Association shall credit each Participant’s Deferred Compensation Account with an amount equal to $812.50 or such other amount as may be determined by
the Board of Directors from time to time. 
 2.2 Vesting of Credits. Each Participant’s vested (i.e.,
nonforfeitable) interest in his Deferred Compensation Account and Stock-Based Deferral Account shall be 100% at all times. 

Article 3 

Deferred Compensation Account 
 3.1 Establishing and Crediting. The Association shall establish a Deferred Compensation Account and Stock-Based Deferral Account on its books for each participating Participant and shall
credit to the Deferred Compensation Account and Stock-Based Deferral Account the following amounts: 
 3.1.1
Credits. The credits made on behalf of the Participant each month pursuant to Section 2.1 of the Plan. 
 3.1.2 Interest. Interest is to be accrued on the Deferred Compensation Account balance of each Participant (including the Deferred Compensation Account balance of a Participant who is
receiving installment payments pursuant to the Sections 4.1.2 of the Plan) based on the rate established by the Board of Directors from time to time or as earned by assets held in a trust established under the Plan. The interest shall be credited
beginning on the first business day of the Plan Year, compounded monthly, unless actually earned more frequently on assets held in a trust established under the Plan. Unless actually earned on assets held in a trust established under the Plan, the
interest rate will be determined as of the first business day of the Plan Year shall be the same rate used for the entirety of the Plan Year. The Board of the Directors may alter the interest crediting rate formula prospectively with respect to any
future Plan Year. 
 3.1.3 One Time Election. Notwithstanding anything in this Plan to the
contrary, each Participant may make a one-time election to transfer all or a portion of his Deferred Compensation Account balance to a Stock-Based Deferral Account under the Plan. All accrued balances transferred to the Stock-Based Deferral Account
will be subject to the terms and conditions of this Plan. All amounts subject to the election pursuant to this provision shall be held as Stock Units. With respect to all amounts for which an election is made, the Association shall establish
separate accounts under the trust entered into in connection with this Plan. All Stock Units credited to a Participant’s Stock-Based Deferral Account shall be credited with hypothetical cash dividends equal to the cash dividends that are
declared and paid on company stock, if any. On each record date, the Association shall determine the amount of cash dividends to be paid per share of stock. On the payment date of the dividend, the Association shall credit an equal amount of
hypothetical cash dividends to each Stock Unit. The hypothetical cash dividends shall be converted into Stock Units by reference to the reinvestment of the dividends by the trustee of the trust. 

  
 2 

 3.2 Statement of Accounts. The Association shall provide to the Participant,
within one hundred twenty (120) days after the end of each Plan Year, a statement setting forth the Deferred Compensation Account balance as of the end of such Plan Year. 
 3.3 Accounting Device Only. The Deferred Compensation Account is solely a device for measuring amounts to be paid under this Plan. The Deferred Compensation Account is not a trust fund of
any kind. The Participant is a general unsecured creditor of the Association for the payment of benefits. The benefits represent the mere promise of the Association to pay the benefits. The Participant’s rights are not subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by the Participant’s creditors. 
 3.4 Utilization of a Trust. The Association may engage an independent trustee to maintain a Trust under this Plan and the Trustee shall inform the Association annually prior to the
commencement of each calendar year as to the manner in which the Trust assets shall be invested. The Association shall also provide the Trustee with a schedule specifying the amounts payable to Participants, and the time for making such payments.
All interest, dividends, or realized gain or losses on Trust assets will be taxed to the Association until distributed to Participants. 
 Article 4 
 Payment of Benefits 

4.1 Separation from Service Benefit. Upon a Separation from Service for any reason, the Association shall pay to the
Participant the benefit described in this Section 4.1 in lieu of any other benefit under the Plan. 
 4.1.1
Amount of Benefit. The benefit under this Section 4.1 is the Deferred Compensation Account balance and the Stock-Based Deferral Account balance at the Participant’s Separation from Service. 

4.1.2 Payment of Benefit. The Association shall pay the benefit credited under the Deferred Compensation
Account under this Section 4.1 to the Participant in weekly installments (calculated in the manner set forth below) and payable over a period of up to fifteen (15) years commencing with the week following the Participant’s Separation
from Service. The amount of each weekly installment payment shall be (i) calculated as of the first payment date (for the balance of the Plan Year in which the first payment date occurs) and (ii) recalculated as of the first business day
of each Plan Year beginning after the initial payment date (for the payments to be made in each month of that Plan Year), as a fixed amount consisting of principal and interest that amortizes the Participant’s Deferred Compensation Account as
of such date over the number of months then remaining in the distribution period. For purposes of the foregoing calculation, the interest rate in effect under Section 3.1.2 of the Plan on the applicable date (i.e., the initial payment date or,
with respect to each subsequent calculation, the first business day of the Plan Year) shall be used to determine the weekly payment for the applicable period (i.e., the balance of the initial Plan Year in which payments commence and each subsequent
Plan Year over the installment period). 
 4.2 Change in Control Benefit. The Association shall pay to the
Participant the benefit described in this Section 4.2 upon a Change in Control. 
 4.2.1 Amount of
Benefit. The benefit under this Section 4.2 is the Deferred Compensation Account balance and the Stock-Based Deferral Account balance at the Change in Control. 

  
 3 

 4.2.2 Payment of Benefit. The Association shall pay the
benefit credited under the Deferred Compensation Account and all shares credited under the Stock-Based Deferral Account under this Section 4.2 to the Participant in a lump sum as soon as practicable following the Change in Control. 

4.3 Distributions Regarding Stock-Based Deferral Account. Payment of Stock Units from the Stock-Based Deferral Account
shall be made only in whole shares of Fraternity Community Bancorp, Inc. stock equal to the number of whole Stock Units. Fractional shares shall be disregarded for distribution purposes. 

Article 5 

Claims and Review Procedures 
 5.1 Claims Procedure. The Association shall notify any person or entity that makes a claim against the Plan (the “Claimant”) in writing within ninety (90) days of
Claimant’s written application for benefits, of his eligibility or non-eligibility for benefits under the Plan. If the Association determines that the Claimant is not eligible for benefits or full benefits, the notice shall set forth
(1) the specific reasons for such denial, (2) specific reference to the provisions of the Plan on which the denial is based, (3) a description of any additional information or material necessary for the Claimant to perfect his claim
and a description of why it is needed and (4) an explanation of the Plan’s claims review procedure and other appropriate information as to the steps to be taken if the Claimant wishes to have the claim reviewed. If the Association
determines that there are special circumstances requiring additional time to make a decision, the Association shall notify the Claimant of the special circumstances and the date by which a decision is expected to be made, and may extend the time for
up to ninety (90) days. 
 5.2 Review Procedure. If the Claimant is determined by the Association not to be
eligible for benefit, or if the Claimant believes that he or she is entitled to greater or different benefits, the Claimant shall have the opportunity to have such claim reviewed by the Association by filing a petition for review with the
Association within sixty (60) days after receipt of the notice issued by the Association. The petition shall state the specific reasons which the Claimant believes entitle him to benefits or to greater or different benefits. Within sixty
(60) days after receipt by the Association of the petition, the Association shall afford the Claimant (and counsel, if any) an opportunity to present his or her position to the Association verbally or in writing, and the Claimant (or counsel)
shall have the right to review the pertinent documents. The Association shall notify the Claimant of its decision in writing within the 60-day period stating specifically the basis of its decision, written in a manner calculated to be understood by
the Claimant and the specific provisions of the Plan on which the decision is based. If, because of the need for a hearing, the 60-day period is not sufficient, the decision may be deferred for up to another sixty (60) days at the election of
the Association, but notice of this deferral shall be given to the Claimant. 
 Article 6 

Amendments and Termination 
 6.1 Termination. Although the Association anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that the Association will continue the Plan or
will not terminate the Plan at any time in the future. Accordingly, the Association reserves the right to discontinue its sponsorship of the Plan and/or to terminate the Plan at any time with respect to any or all of the Participants, by action of
its Board of Directors. The termination of the Plan shall not adversely affect any Participant’s or beneficiary’s right to receive the payment of any benefits under the Plan as of the date of termination, including the right of the
Participant or beneficiary to be paid Plan benefits accrued through the date of termination in accordance with the Plan terms and the Participant’s distribution elections in effect at the time of termination. 

  
 4 

 6.2 Amendment. The Association may, at any time, amend or modify the Plan in
whole or in part, by action of its Board of Directors; provided, however, that no amendment or modification shall be effective to decrease or restrict the rights of a Participant in his Deferred Compensation Account in existence at the time the
amendment or modification is made, including the right to be paid Plan benefits accrued through the date of the amendment or modification in accordance with the Plan terms and the Participant’s distribution elections in effect at the time of
the amendment or modification. 
 Article 7 
 Miscellaneous 
 7.1 Binding Effect. This Plan shall bind each
participating Participant and the Association and their respective beneficiaries, survivors, executors, administrators and transferees. 
 7.2 No Guarantee of Service. This Plan is not a contract for service. It does not give a Participant the right to remain in the service of the Association, nor does it interfere with the
Association’s right to terminate or replace a Participant. It also does not require a Participant to remain in the service of the Association nor interfere with the Participant’s right to terminate service at any time. 

7.3 Non-Transferability. Benefits under this Plan cannot be sold, transferred, assigned, pledged, attached or encumbered in
any manner. 
 7.4 Tax Withholding. The Association shall withhold any taxes that are required to be withheld from
the benefits provided under this Plan. 
 7.5 Applicable Law. The Plan and all rights hereunder shall be governed
by the laws of Maryland, except to the extent preempted by federal law. 
 7.6 Reorganization. The Association
shall not merge or consolidate into or with another entity, or reorganize, or sell substantially all of its assets to another entity, firm, or person unless such succeeding or continuing entity, firm, or person agrees to assume and discharge the
obligations of the Association under this Plan. Upon the occurrence of such event, the term “Association” as used in this Plan shall be deemed to refer to the successor or survivor entity. 

7.7 Entire Agreement. This Plan constitutes the entire agreement between the Association and a participating Participant as
to the subject matter hereof. No rights are granted to a Participant by virtue of this Plan other than those specifically set forth herein. 
 7.8 Severability. If any provision of this Plan is held invalid, such invalidity shall not affect any other provision of this Plan not held invalid, and each such other provision shall
continue in full force and effect to the full extent consistent with law. If any provision of this Plan is held invalid in part, such invalidity shall not affect the remainder of the provision not held invalid, and the remainder of such provision
together with all other provisions of this Plan shall continue in full force and effect to the full extent consistent with law. 

  
 5 

 7.9 Administration. The Board of Directors shall have powers which are
necessary to administer this Plan, including but not limited to: 
 (a) Interpreting the provisions of the Plan; 

(b) Establishing and revising the method of accounting for the Plan; 

(c) Maintaining a record of benefit payments; and 
 (d) Establishing rules and prescribing any forms necessary or desirable to administer the Plan. 
 7.10 Prohibited Acceleration/Distribution Timing. This Section 7.10 shall take precedence over any other provision of the Plan to the contrary. No provision of this Plan shall be
followed if following the provision would result in the acceleration of the time or schedule of any payment from the Plan (i) as would require income tax to a Participant prior to the date on which the amount is distributable to or on behalf of
the Participant under Article 4 or (ii) which would result in penalties to the Participant under Section 409A. In addition, if the timing of any distribution election would result in any tax or other penalty (other than ordinarily payable
Federal, state or local income or payroll taxes), which tax or penalty can be avoided by payment of the distribution at a later time, then the distribution shall be made (or commence, as the case may be) on (or as soon as practicable after) the
first date on which such distributions can be made (or commence) without such tax or penalty. 
 7.11 Aggregation of
Employers. To the extent required under Section 409A, if the Association is a member of a controlled group of corporations or a group of trades or businesses under common control (as described in Section 414(b) or (c) of the
Code), all members of the group shall be treated as a single employer for purposes of whether there has occurred a Separation from Service and for any other purposes under the Plan as Section 409A shall require. 

7.12 Designation of Beneficiary(ies). Each Participant shall have the right to designate a beneficiary or beneficiaries
(including contingent beneficiaries) to receive any benefits payable upon the death of a Participant. No such designation shall be effective unless completed and submitted in accordance with rules and procedures established by the Association for
this purpose. In the absence of an effective beneficiary designation, the Participant’s designated beneficiary shall be assumed to be the Participant’s surviving spouse or, if none, the Participant’s estate. Beneficiaries shall
receive the Participant’s benefits in the same time and manner as the Participant would have received the benefits (or continued to have received the benefits) under Article 4 of the Plan. 

7.13 Savings Clause Relating to Compliance with Section 409A of the Code. Despite any contrary provision of this Plan,
if, when a Participant’s service terminates, the Participant is a “specified employee,” as defined in Section 409A, and if any payments under this Plan will result in additional tax or interest to the Participant because of
Section 409A, the Participant shall not be entitled to the payments until the earliest of (i) the date that is at least six months after termination of the Participant’s employment for reasons other than the Participant’s death,
(ii) the date of the Participant’s death, or (iii) any earlier date that does not result in additional tax or interest to the Participant under Section 409A. If any provision of this Plan would subject the Participant to
additional tax or interest under Section 409A, the Association shall reform the provision. However, the Association shall maintain to the maximum extent practicable the original intent of the applicable provision without subjecting the
Participant to additional tax or interest. 

  
 6Distribution Agreement

 Exhibit 10.1 
 DISTRIBUTION AGREEMENT 
 This Agreement is made as of this 28th day of December, 2010, between

 PHOENIX FOOTWEAR GROUP INC., a company incorporated in the state of Delaware, with its principal place of business at 5840 El Camino
Real, Suite 106. CARLSBAD, CA. 
 (Hereinafter “LICENSOR”) and 
 CANADA SHOE (1998) CORP. #3148 20800 WESTMINSTER HWY. RICHMOND B.C Canada 

(Hereinafter “DISTRIBUTOR”) 
 WHEREAS: 
 (a) LICENSOR designs and develops quality footwear and related products
throughout the world under the LICENSOR name and owns or controls the rights to use and to authorize others to use the LICENSOR trademark, service mark, and trade name and other intellectual property rights in connection with the design,
manufacture, marketing, distribution, and/or sale of said products, together with the goodwill symbolized thereby and the business appertaining thereto; and 
 (b) DISTRIBUTOR wishes to have the right to distribute said products in the TERRITORY of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: 
 1. DEFINITIONS - As used herein: 
 1.1 “TERRITORY” shall mean
CANADA 
 1.2 “PRODUCTS” shall mean only TROTTERS AND SOFT WALK branded footwear and related products as LICENSOR in
consultation with DISTRIBUTOR may from time to time authorize DISTRIBUTOR in writing to sell in the TERRITORY. 

 1.3 “ FIRST COST” shall mean the total cost per unit as invoiced by the factory
that manufactures the footwear or related products, including additional amounts for unamortized tooling costs and agent commissions, if any. 
 1.4 “TRADEMARKS” shall mean the TROTTERS AND SOFT WALK trademark, together with all other trademarks, service marks, trade names, style or model names, logos, copyrights, construction and design
of sole units, designs and other intellectual property rights owned or controlled by LICENSOR. 
 2. APPOINTMENT -
Subject to the terms and conditions of this Agreement LICENSOR hereby appoints DISTRIBUTOR as its exclusive distributor of PRODUCTS in the TERRITORY for the term of this Agreement. While LICENSOR cannot guarantee that PRODUCTS will not enter the
TERRITORY through parallel channels, LICENSOR will make commercially reasonable efforts to ensure that none of their distributors or sales outlets sell into the TERRITORY. 
 3. TERM OF AGREEMENT 
 3.1 Unless sooner terminated by either party in
accordance with the provisions of this Agreement, the initial term of this Agreement shall be for a period 3 years starting on January 1, 2011 upon execution of this Agreement and ending on December 31, 2013 with an additional 3 years if
agreed upon by both parties. 
 4. OBLIGATIONS AND RIGHTS OF DISTRIBUTOR 

4.1 Best Efforts - During the term of this Agreement, DISTRIBUTOR shall use its best efforts to: 

4.1.1 Promote, develop the market for, sell and distribute PRODUCTS throughout the TERRITORY, 

4.1.2 Support and cooperate in the execution of global marketing plans and strategies, 

  
 - 2 -

 4.1.3 Select dealers and maintain facilities for the sale of PRODUCTS, and maintain a
business and sales organization adequate to work and develop the TERRITORY, 
 4.1.4 Confine retail and wholesale sales of
PRODUCTS in the TERRITORY to (a) persons who operate suitable retail locations, as determined by LICENSOR in its sole discretion, and (b) wholesalers who sell to persons who operate suitable retail operations, 

4.1.5 Will honor pricing and payment terms for existing TROTTER AND SOFT WALK accounts in Canada and 

4.1.6 Comply with all local laws, rules, regulations and other governmental requirements. 

4.2 Purchases - Except as may be agreed in writing by LICENSOR, DISTRIBUTOR shall purchase PRODUCTS exclusively from LICENSOR.

 4.3 Payments for PRODUCTS - During the term of this Agreement DISTRIBUTOR shall pay LICENSOR according to price lists
denominated in U.S. Dollars provided by LICENSOR to DISTRIBUTOR according to terms set by FACTORY. Prices shall be those set forth on price lists in effect when the order is placed. DISTRIBUTOR shall be responsible for all freight and duties from
the factory to final destination. 
 4.3.A Factory direct costs. The DISTRIBUTOR agrees to buy inventory from designated
factories on a seasonal basis based on a first cost price, plus a 20% royalty. 
 4.3 B The DISTRIBUTOR further agrees to
purchase during the season from PHOENIX FOOTWEAR GROUP’S US warehouse re-orders as needed and will pay a 20% royalty on these goods, plus an additional 15% to cover inbound freight and duties. All shipments would be F.O.B. OLD TOWN, MAINE.

 4.3 C The DISTRIBUTOR would also purchase samples from LICENSOR as necessary at first cost. 

  
 - 3 -

 4.3 D. Closing Inventory Purchase. The DISTRIBUTOR will purchase all current inventory
situated in Montreal at the PXG Canada Distribution centre from LICENSOR. The current inventory has been selected and is detailed on Schedule A to this agreement. The purchase price of this inventory equals landed cost plus 10% royalty. 

4.4 Terms and Conditions of Payment for PRODUCTS 
 4.4.1 The supply of PRODUCTS by LICENSOR shall be subject to LICENSOR’s standard terms and conditions of sale as promulgated from time to time by LICENSOR. Each order and acceptance of such order for
PRODUCTS shall constitute a separate contract between LICENSOR and DISTRIBUTOR subject to the terms and conditions thereof. 

4.4.2 Payment for PRODUCTS shall be by bank draft or wire transfer confirmed by a bank acceptable to LICENSOR or in accordance with
other payment terms as agreed in advance and in writing by LICENSOR. 
 4.5 Orders and Cancellations - All orders for
PRODUCTS shall be submitted on forms prescribed by and in accordance with such arrangements as are advised from time to time by LICENSOR. Unless agreed to in writing by LICENSOR orders received from DISTRIBUTOR shall not be subject to cancellation,
change or modifications by DISTRIBUTOR. 
 4.6 Records and Inspections - Complete and accurate books of account and
records of PRODUCTS purchased and sold by DISTRIBUTOR shall be maintained and retained at DISTRIBUTOR’s offices. These records shall be available for inspection by LICENSOR or its authorized representative, at any reasonable time while this
Agreement remains in effect and for a period of one (1) year thereafter. The right to inspect shall include the right to copy part or all of such accounts and records. 

  
 - 4 -

 4.7 Appointment of Manager - DISTRIBUTOR shall nominate as manager of the LICENSOR
business an individual acceptable to LICENSOR. This manager shall be dedicated to the LICENSOR business, speak English to an acceptable commercial standard and have full responsibility for the marketing, sales and performance goals set forth herein.

 4.8 Performance, Goals and Minimum Purchases - DISTRIBUTOR shall use its best efforts to sell sufficient quantities of
LICENSOR PRODUCTS to maintain a level of performance to be agreed annually by DISTRIBUTOR and LICENSOR. As an absolute minimum DISTRIBUTOR must each year purchase from LICENSOR footwear that are equal to or exceed the amounts indicated on Exhibit A,
attached hereto and made a part hereof. This requirement is subject to there being no government quotas which prevent the import of PRODUCTS into the TERRITORY in sufficient quantities to meet these minimum goals. 

4.9 Attendance at Sales Meetings - At least one officer or representative of DISTRIBUTOR shall participate at DISTRIBUTOR’s
expense in up to two (2) sales meetings per year as arranged by LICENSOR, the time and place of such meetings to be decided and advised by LICENSOR 
 4.10 Confidentiality Obligations 
 4.10.1 Both during and after the term of
this Agreement, DISTRIBUTOR shall take all reasonable and practicable steps to maintain in the strictest confidence all Proprietary Information and other confidential information provided to DISTRIBUTOR by or through LICENSOR and/or its affiliated
companies. The term “Proprietary Information” includes without limitation the following items: product, materials, and components research; designs; drawings; blueprints; specifications; sample requests; prototypes; models;
development samples; confirmation samples; test results; inventions; discoveries; trade secrets; know-how; patent, design, copyright, and trademark applications; product briefs; patterns; molds; screens; lasts; manufacturing methods and processes;
market research reports; marketing plans and forecasts; customer lists; program sheets; style lists; and price schedules. This confidentiality requirement extends to all forms and materials in which Proprietary Information may be contained,
including without limitation all draft and final originals, copies, memoranda; notes; reports; writings; drawings; blueprints; graphs; charts; film; fiche; photographs; tapes; discs; and other documentary electronic, or magnetic data compilations.
This requirement shall not apply with respect to information which comes into the public domain other than by disclosure by DISTRIBUTOR. 

  
 - 5 -

 4.11 Advertising and Promotion 

4.11.1 Subject to the approvals set forth in Paragraph 4.12.2 below, LICENSOR grants DISTRIBUTOR permission to reproduce the TRADEMARKS
on its advertising, promotional and marketing materials, provided that all such advertising, promotional and marketing materials used by DISTRIBUTOR must conform to all advertising and trademark use guidelines provided by LICENSOR. 

4.11.2 During each calendar year of this Agreement, DISTRIBUTOR agrees to spend on advertising and promotions in the TERRITORY a sum
equal to not less than two percent (2%) of its total net invoiced sales of PRODUCTS. As a guideline, at least two thirds of this expenditure shall be in the form of media (print, radio and/or television) advertising 

4.12 Territorial Limits - DISTRIBUTOR shall not, during the Term of this Agreement, advertise, promote or market PRODUCTS, nor
maintain agents, branch office or distribution facilities to sell PRODUCTS outside the TERRITORY. Except at the specific written request of LICENSOR, DISTRIBUTOR shall not solicit orders for PRODUCTS from persons or companies outside the TERRITORY.

  
 - 6 -

 4.13 Returns - DISTRIBUTOR agrees to accept defective product returns from its
customers. LICENSOR shall be responsible for defective product returns deemed of substandard quality or not made to proper size and fit standards as agreed on by both parties. 
 4.14 Product Liability Insurance. LICENSOR shall obtain product liability insurance in the TERRITORY in an amount which is commercially reasonable given the quantity of PRODUCTS to be distributed
under this Agreement and the potential for monetary recovery, and shall name DISTRIBUTOR and any successors thereof as additional insured’s under such policy. 
 5. LICENSOR RETAIL OPERATIONS - This Agreement does not authorize DISTRIBUTOR to operate itself or grant to others the right to operate LICENSOR retail stores (i.e., those bearing the name of
LICENSOR as part of the store name or in which the store appears to be owned or controlled by LICENSOR). The operation of any such LICENSOR retail sales operations shall require advance written authorization by LICENSOR. The operation of any
LICENSOR retail store by any third party must be subject to separate agreement between LICENSOR and DISTRIBUTOR. 
 6. USE
PHOENIX FOOTWEAR GROUP AS COMPANY OR TRADING NAME - The name LICENSOR shall not be used as the trading or company name of DISTRIBUTOR without the written consent of LICENSOR. Nothing contained herein, however, shall be construed to preclude
DISTRIBUTOR from representing itself on its letterhead and other stationery, etc as LICENSOR’s exclusive distributor in the TERRITORY, or from using the LICENSOR trademark and logo on its stationery and advertising, provided that the trading
company name of the DISTRIBUTOR also appears on such stationery and advertising and provided further that such is done in a manner approved by LICENSOR. 
 7. TRADEMARKS 
 7.1 DISTRIBUTOR acknowledges that the TRADEMARKS and other
intellectual property have substantial goodwill. 

  
 - 7 -

 7.2 This Agreement does not constitute and shall not be construed as a license of the
TRADEMARKS or other intellectual property. DISTRIBUTOR acknowledges that it does not claim any ownership rights in the TRADEMARKS and other intellectual property and that it shall not acquire or claim any ownership rights therein by reason of this
Agreement, or as a result of use, or for any other reason. DISTRIBUTOR will not at any time do, or knowingly permit others to do, any act or thing which would in any way impair the rights of LICENSOR in and to the TRADEMARKS or which may affect the
validity of the TRADEMARKS or which may dilute or depreciate the value of the TRADEMARKS or their reputation. DISTRIBUTOR agrees that any rights in the TRADEMARKS which may arise by virtue of DISTRIBUTOR activities pursuant to this Agreement or by
operation of law shall vest in and, at the written request of LICENSOR, shall be assigned to PHOENIX FOOTWEAR GROUP absolutely and without charge. 
 7.3 DISTRIBUTOR shall not affix any other trademark or logo onto the PRODUCTS or any packaging for the PRODUCTS. 
 7.4 DISTRIBUTOR undertakes not to copy, produce, make, modify or manufacture or assist any person to copy, produce, make or manufacture goods similar to PRODUCTS or any part thereof for use, sale or any
other purpose. 
 7.5 DISTRIBUTOR acknowledges the sole right of LICENSOR to file and prosecute any trademark or other
application relating to the TRADEMARKS as LICENSOR may deem advisable including any such applications arising from or made necessary by the activities of the DISTRIBUTOR under this Agreement. DISTRIBUTOR will, when requested by LICENSOR, cooperate
with LICENSOR in connection with any such applications, including applications to record the DISTRIBUTOR as a registered or permitted user under new or existing trademark registrations or applications. The expenses of preparing and prosecuting any
applications or registrations and the filing of any registered user agreements shall be borne by LICENSOR. 

  
 - 8 -

 7.6 DISTRIBUTOR shall, upon the expiration of ninety (90) days from the termination of
this Agreement, cease and desist from all use of the TRADEMARKS and other intellectual property in any way and shall deliver up to LICENSOR or destroy in a manner approved by LICENSOR, all material, signage, documents and papers upon which the
TRADEMARKS appear. 
 7.7 DISTRIBUTOR shall comply with LICENSOR’s guidelines on proper usage of the TRADEMARKS and with
all applicable laws with respect to printing and placement of proper notice of the TRADEMARKS on PRODUCTS, and on all packaging and advertising, marketing or promotional material. All such materials shall indicate that the TRADEMARKS are owned or
controlled by LICENSOR, and have been applied by or under license from LICENSOR as is appropriate in each case. 
 7.8
DISTRIBUTOR shall: 
 7.8.1 make regular checks within the TERRITORY to see if there is any infringement or other violation of
the TRADEMARKS or any other rights of LICENSOR, including any unauthorized use of the TRADEMARKS within the TERRITORY (hereinafter referred to as “illegal acts”), 
 7.8.2 Promptly inform LICENSOR in writing of all illegal acts of which it becomes aware. 
 7.8.3 On request, provide LICENSOR with as much information as DISTRIBUTOR can reasonably obtain about all such illegal acts. 
 7.8.4 Upon learning of any “illegal acts”, LICENSOR shall be entitled, at its discretion, to take such action as it considers necessary or appropriate to enforce LICENSORS rights, including
without limitation action to suppress or eliminate the illegal acts. LICENSOR shall also be entitled to seek recovery for all damages resulting there from, including damages which might otherwise be due to DISTRIBUTOR by operation of law or
otherwise. DISTRIBUTOR shall have no authority to enforce the rights of LICENSOR in and to the TRADEMARKS and other intellectual property, nor shall DISTRIBUTOR have any control over action taken by LICENSOR to enforce such rights. 

  
 - 9 -

 7.8.5 DISTRIBUTOR shall, at the request of LICENSOR, make available to LICENSOR free of
charge all information and particulars in its possession which will assist LICENSOR to deal with illegal acts and will, at LICENSORS request and expense, join in any action necessary to suppress and prevent any illegal acts or the continuation
thereof. 
 7.8.6 LICENSOR shall be entitled to all damages, costs and other sums which may be due or recoverable as a result
of any illegal acts. 
 8. SPECIAL RIGHTS OF TERMINATION 

8.1 If either party shall actually or effectively cease to conduct its business; or shall make any involuntary assignment of either its
assets or its business for the benefit of creditors; or if a trustee or receiver or administrator is appointed to administer or conduct its business affairs; or if any insolvency, bankruptcy or similar proceedings are commenced by itself or against
it, then the other party may terminate this Agreement with immediate effect upon written notice to the other party. 
 8.2 If
DISTRIBUTOR fails to remit to LICENSOR within sixty (60) days from the time specified as the due date any sum payable to LICENSOR under the terms of this Agreement, including payment for PRODUCTS (or to a neutral party agreed by LICENSOR in the
case of any disputed sums), LICENSOR may terminate this Agreement by providing thirty (30) days written notice to DISTRIBUTOR. 

  
 - 10 -

 8.3 LICENSOR may terminate this Agreement with immediate effect upon written notice to
DISTRIBUTOR in the event that: 
 8.3.1 DISTRIBUTOR violates the territorial limits prescribed herein; or 

8.3.2 DISTRIBUTOR fails to meet the purchase minimums set out in Paragraph 4.8; 

8.3.3 The control of DISTRIBUTOR shall pass from the present shareholders to other persons whom LICENSOR shall in its absolute
discretion regard as unsuitable; or 
 8.3.4 DISTRIBUTOR or any of its directors or officers acts in manner which in the
opinion of LICENSOR is likely to bring LICENSOR into disrepute. 
 9. TERMINATION ON DEFAULT - In addition to the special
rights of termination provided in the preceding paragraph, in the event that LICENSOR or DISTRIBUTOR shall fail to perform any of their obligations to the other party under this Agreement, and such non-performance is not cured within thirty
(30) days after written notice of said non-performance being given by the other party, then the other party may give written notice to the other party of its intention to terminate this Agreement with immediate effect. If such non-performance
has been cured within said thirty (30) day period, however, it shall not be deemed a breach of this Agreement. 
 10.
RIGHTS AND DUTIES UPON EXPIRATION OR TERMINATION OF AGREEMENT 
 10.1 In the event of the expiration or termination
of this Agreement for any reason: 
 10.1.1 DISTRIBUTOR shall immediately cease holding itself out to third parties as being
associated with LICENSOR. 

  
 - 11 -

 10.1.2 DISTRIBUTOR shall return all Proprietary Information and other confidential
information previously received from LICENSOR, in whatsoever form contained, which is in DISTRIBUTOR’s possession or control, including all originals, copies, reprints, translations and samples thereof, within twenty (20) days after
receipt of a written request from LICENSOR. In addition, DISTRIBUTOR shall provide LICENSOR within twenty (20) days with a list of all trade customers who have purchased PRODUCTS from DISTRIBUTOR within the previous 12 months, including the
addresses of such customers. 
 10.1.3 Outstanding unpaid invoices between LICENSOR and DISTRIBUTOR shall become immediately
payable. 
 10.1.4 DISTRIBUTOR shall have no further rights to use the TRADEMARKS or any of LICENSORS intellectual property
rights and in particular but without prejudice to the generality of the foregoing shall cease to use the TRADEMARK on its letterheads, packaging or elsewhere. 
 10.1.5 DISTRIBUTOR shall immediately cease purchasing, selling, advertising, and/or distributing any PRODUCTS, except as provided for herein. DISTRIBUTOR shall not be entitled to delivery of any then
outstanding LICENSOR orders, whether or not such orders have been accepted by LICENSOR. 
 10.1.6 DISTRIBUTOR shall for 120
(one hundred and twenty) days following the termination date have the right to fulfill from its inventory any orders outstanding for PRODUCTS at the date of termination. DISTRIBUTOR shall furnish LICENSOR with a list of all outstanding orders within
twenty days of the termination date. 
 10.1.7 As to any remaining inventory, LICENSOR shall have the option to buy the whole
or any part of said inventory from DISTRIBUTOR at DISTRIBUTOR purchase cost (including duties, taxes and delivery charges) or wholesale market value, whichever is lower. 
 10.1.8 If LICENSOR fails to exercise the option set forth in subparagraph 10.1.7 above by the end of the one hundred and twenty (120) day sell-off period provided in subparagraph 10.1.6 above,
DISTRIBUTOR shall be free to sell any remaining inventory. 

  
 - 12 -

 10.2 LICENSOR or its designated representatives shall have the right during the one hundred
and twenty (120) day period prior to the expiration of the term of this Agreement or its termination to advertise PRODUCTS, approach customers and to take orders for the delivery of PRODUCTS in the TERRITORY after the expiration date.

 10.3 Termination of this Agreement shall not prejudice any rights of either party which have arisen on or before the date of
termination, and which are intended to have continuing effect. 
 11. INDEMNITY 

11.1 LICENSOR shall indemnify and hold DISTRIBUTOR harmless from any and all claims, actions and demands made or brought by any third
party that the DISTRIBUTOR use of the TRADEMARKS infringes or otherwise violates any rights of such third party, provided that such claim or demand does not arise as a result of any action by DISTRIBUTOR which is not expressly or implicitly
permitted by this Agreement. DISTRIBUTOR shall inform LICENSOR immediately of any such claim and make no admission in relation thereto. DISTRIBUTOR will pay over to LICENSOR any costs or sums which DISTRIBUTOR receives or may be entitled to receive
as a result of such suit less any costs, disbursements and other legitimate direct expenses incurred and paid by DISTRIBUTOR. LICENSOR shall, at its own expense, be entitled to conduct and or settle all negotiations and litigation so arising and
DISTRIBUTOR agrees to be bound by any settlement or agreement reached by LICENSOR in such matter. DISTRIBUTOR shall assist LICENSOR in preparation of the defense of any such claim, action or demand by providing whatever information or assistance
from its staff as may reasonably be required. 
 11.2 DISTRIBUTOR shall indemnify and hold LICENSOR harmless from any and all
claims, actions, demands, damages and costs in connection with and arising out of DISTRIBUTOR activities under this Agreement. DISTRIBUTOR shall vigorously defend any legal action brought against it in connection with its activities under this
Agreement and engage counsel approved by LICENSOR. 

  
 - 13 -

 12. MISCELLANEOUS 

12.1 The terms of this Agreement are binding upon and shall endure solely for the benefit of LICENSOR and DISTRIBUTOR. 

12.2 This Agreement is non-assignable in whole or in part by DISTRIBUTOR without the written consent of LICENSOR. Transfer of the
ownership of the assets or the shares of DISTRIBUTOR from the shareholders at the date of execution of this Agreement shall, for the purposes of this paragraph, be considered an assignment by DISTRIBUTOR requiring LICENSOR’s written consent.
DISTRIBUTOR shall at LICENSOR’s request provide LICENSOR such information as it shall reasonably require to verify the ownership and control of DISTRIBUTOR. 
 12.3 LICENSOR and DISTRIBUTOR shall each execute and deliver all such instruments and do such acts as may be necessary or reasonably required by the other party to evidence or give effect to this
Agreement or its terms. 
 12.4 LICENSOR and DISTRIBUTOR have entered into this contract as independent contractors only. This
Agreement does not constitute DISTRIBUTOR as the agent or legal representative of LICENSOR nor does it constitute LICENSOR as the legal representative of DISTRIBUTOR. Neither party shall have any right or authority to assume or create any obligation
or responsibility, express or implied, on behalf of or in the name of the other, or to bind the other in any manner. Furthermore, whenever DISTRIBUTOR describes its relationship to LICENSOR it shall make it clear that it is a distributor and not an
agent or representative and that it has no authority to make contracts or incur obligations binding on LICENSOR. 
 12.5 Failure
of a party to enforce one or more of the provisions of this Agreement or to exercise any option or other rights hereunder or to require at any time performance of any of the obligations hereof shall not be construed to be a waiver of such provisions
by such party or in any way to affect the validity of this Agreement or such party’s right thereafter to enforce each and every provision of this Agreement, nor to preclude such party from taking any other action at any time which it would
legally be entitled to take. 

  
 - 14 -

 12.6 The provisions of this Agreement apply separately to each and every country included in
the definition of TERRITORY. At its option, LICENSOR may elect to terminate this Agreement for any country if DISTRIBUTOR fails to meet the requirements of this Agreement for such country, in which case the provisions of this Agreement relating to
post-termination obligations shall apply for the terminated country and the other provisions of this Agreement shall continue to apply for the non-terminated countries. 
 13. NOTICES/REPORTS - All notices and requests for written approval provided for herein, shall be submitted by facsimile transmission, courier or airmail as appropriate. Additionally, all formal
notices to LICENSOR, annual accounts, audit certificates etc. shall be sent by certified or registered mail, return receipt requested, or by hand delivery to the LICENSOR at the address noted on the first page of this Agreement. All notices to
DISTRIBUTOR shall be sent to the address noted on the first page of this Agreement. Either party to this Agreement may provide the other party with written notices of changes of address to be thereafter used for the purpose of this Agreement.

 14. ENFORCEABILITY - If any provision of this Agreement is held void by a final judgment or decree of any court,
commission or other judicial or quasi-judicial body of competent jurisdiction, this Agreement as a whole shall remain in force and effect in all other respects as if said provisions had not been included in this Agreement, unless said judgment of
invalidity affects the contract as a whole. 
 15. FORCE MAJEURE - No party shall be liable for the failure to carry out
its obligations hereunder in the event that it is prevented from doing so by war, unavailability of shipping vessels, insurrection, governmental action prohibiting importation of goods or any other similar causes beyond the control of the party.

  
 - 15 -

 16. GOVERNING LAW/JURISDICTION 

16.1 The parties agree that the internal laws of the USA shall govern the validity, construction and interpretation of this Agreement.

 16.2 DISTRIBUTOR hereby submits to the exclusive jurisdiction of the Courts of the USA and undertakes that it will not
commence in any other jurisdiction any action or proceedings in relation to any claim, dispute or difference which may arise hereunder or in connection with the enforcement of any judgment rendered in relation thereto. The Distributor hereby agrees
that for the purpose of any proceedings in the United States courts, service of any and all process or other documents on Distributor shall be validly effected by registered air mail to (or at LICENSOR’s sole discretion by leaving the same at)
the address for DISTRIBUTOR referred to herein. 
 16.3 The parties agree that LICENSOR may additionally or alternatively at its
sole discretion commence proceedings against DISTRIBUTOR in any Court or other tribunal in the TERRITORY and in such event DISTRIBUTOR shall submit to the jurisdiction of such Court or other tribunal. 

17. ATTORNEY’S FEES - In case suit or action is instituted in connection with any of the terms, covenants or conditions of
this Agreement, the prevailing party in such litigation shall be fully reimbursed by the losing party for such costs and disbursements and reasonable attorney’s fees as are incurred by the prevailing party in both trial and appellate courts.

 18. ENTIRE AGREEMENT - The signatures of the parties set forth below is their acknowledgment that this Agreement sets
forth their entire understanding and agreement and supersedes with effect from the commencement of this Agreement, as provided in Paragraph 3.1 above, any and all prior understandings, contracts or agreements between DISTRIBUTOR and LICENSOR
with respect to the subject matter of this Agreement. There are no representations or promises between the parties hereto except as set forth herein. No provision of this Agreement may be waived, changed, terminated, modified or discharged, orally
or otherwise, except by subsequent written agreement signed by the other party against whom such waiver, change, termination, modification or discharge is sought to be enforced. 

  
 - 16 -

 AUTHORIZATION -The undersigned represent that they are authorized to sign this Agreement on behalf of
the parties hereto. The parties each represent that no provision of this Agreement will violate any other agreement that a party may have with any other person or company. Each party has relied upon said representations in entering into this
Agreement. 
 By: Mogens Jessen 
  

	
	 /s/ Mogens Jensen

 

 Title: President Canada Shoe (1998) Corp. 

 
  
 By: Jim
Riedman 
  

	
	 /s/ Jim Riedman

 

 Title: C.E.O. Phoenix Footwear Group 

  
 - 17 -

 EXHIBIT A: MINIMUM PAIRS TO BE PURCHASED BY CANADA SHOE CORP 

 

											
	 2011:
	  	 	20,000	  	 	 	pairs	  	  	
				
	 2012:
	  	 	26,000	  	 	 	pairs	  	  	
				
	 2013:
	  	 	32,000	  	 	 	pairs	  	  	

  
 - 18 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]