Document:

exv10w1p

 

Exhibit 10.1P

THERMOGENESIS CORP.

EMPLOYMENT AGREEMENT

for

John R. Chapman, Ph.D.

     THERMOGENESIS CORP. (“Employer”) and John R. Chapman, Ph.D. (“Employee”), agree as follows:

1. Employment. Employer employs Employee and Employee accepts employment with Employer on
the terms and conditions set forth in this Employment Agreement (“Agreement”).

2. Position; Scope of Employment. Employee shall have the position of Vice President,
Scientific Affairs for Employer, and shall have the duties and authority set forth below, and as
detailed on the position description attached as Exhibit “A”, which duties and authority
may be modified from time to time by Employer. As Vice President, Employee shall report directly
to Employer’s President of Operations.

     2.1. Entire Time and Effort. Employee shall devote Employee’s full working time,
attention, abilities, skill, labor and efforts to the performance of his employment. Employee
shall not, directly or indirectly, alone or as a member of a partnership or other organizational
entity, or as an officer of any corporation (other than any which are owned by or affiliated with
Employer) (i) be substantially engaged in or concerned with any other commercial duties or
pursuits, (ii) engage in any other business activity that will interfere with the performance of
Employee’s duties under this Agreement, except with the prior written consent of Employer, or (iii)
join the board of directors of any other corporation; provided, however, that Employee may
join the board of directors of no more than two unaffiliated corporations so long as such
corporations are not competitive to the current or future operations of Employer and those
corporations offer some synergistic prospects or other support for Employer’s goals.

     2.2. Rules and Regulations. Employee agrees to observe and comply with Employer’s
rules and regulations as provided by Employer and as may be amended from time to time by Employer
and will carry out and perform faithfully such orders, directions and policies of Employer. To the
extent any provision of this Agreement is contrary to an Employer rule or regulation, as such may
be amended from time to time, the terms of this Agreement shall control.

     2.3. Limitations Upon Authority to Bind Employer. Employee shall not engage in any of
the following actions on behalf of Employer without the prior approval of Employer: (i) borrow or
obtain credit in any amount or execute any guaranty, except for items purchased from vendors in the
ordinary course of Employer’s operations; (ii) expend funds for capital equipment in excess of
expenditures expressly budgeted by Employer, if applicable, or in the event not budgeted, not to
exceed the amounts set forth in subparagraph (iii); (iii) sell or transfer capital assets exceeding
Ten thousand Dollars ($10,000) in market value in any single transaction or exceeding Fifty
Thousand Dollars ($50,000) in the aggregate during any one fiscal year;
(iv) execute any lease for real or personal property; or (v) exercise any authority or control

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over the management of any employee welfare or pension benefit plan maintained by Employer or over
the disposition of the assets of any such plan.

3. Term. The term of this Agreement shall be for a period of three (3) years which shall
commence on March 16, 2006 and end on March 15, 2009 (subject to adjustment to an earlier start
date and termination date by mutual agreement); unless terminated earlier as provided below in
Section 5.

4. Compensation. Employer shall pay to or provide compensation to Employee as set forth in
this Section 4. All compensation of every description shall be subject to the customary
withholding tax and other employment taxes as required with respect to compensation paid to an
employee.

     4.1. Base Salary. Employer shall pay Employee a base salary of one hundred
seventy-five thousand ($175,000) per year commencing on March 16, 2006 (“Base Salary”). Employee’s
Base Salary shall be payable in accordance with Employer’s regular pay schedule, but not less
frequently than twice per month.

     4.2. Annual Review. On the date of Employer’s annual meeting of stockholders and on
each subsequent annual meeting of stockholders during the term of this Agreement, or at such other
time as Employer may establish in its discretion, Employer shall review the previous year’s
performance of Employee for the purpose of making reasonable increases to Employee’s Base Salary;
provided that Employer shall not be required to increase Employee’s Base Salary, but may do
so at its discretion.

     4.3. Cash/Stock Bonuses. In addition to the Base Salary provided for in sections 4.1
and 4.2, Employee is eligible to receive discretionary bonuses based on Employer performance and
Employee’s attainment of objectives periodically established by Employer. Such discretionary
bonuses may be paid in cash, through issuance of stock or grant of stock options, or any
combination thereof, subject to Board discretion. Annual bonuses that may be awarded to Employee
shall not exceed thirty-five percent (35%) of Employee’s Base Salary then in effect in any given
year. Cash bonus will be paid only when the Employer attains positive cash flow and net income.

     4.4. Vacation and Sick Leave. Employee shall be entitled to accrue up to three (3)
weeks vacation annually; provided, however, that vacation time may not accrue beyond two weeks of
accrued and unused time. Vacation pay shall not accrue beyond two (2) weeks at any given time.
Employee shall be entitled to sick leave in accordance with Employer’s sick leave policy, as
amended from time to time. At the end of each calendar year, subject to the limit on two weeks
accrued and unused vacation, all such unused and accrued vacation time shall be paid in cash.

     4.5. Other Fringe Benefits. Employee shall participate in all of Employer’s fringe
benefit programs in substantially the same manner and to substantially the same extent as other
similar employees of Employer, excluding only those benefits expressly modified by the terms
hereof.

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     4.6. Expenses. Employee shall be reimbursed for his reasonable business expenses;
subject to the presentation of evidence of such expenses in accordance with established policies
adopted by Employer from time to time.

     4.7. Compensation From Other Sources. Any proceeds that Employee shall receive by
virtue of qualifying for disability insurance, disability benefits, or health or accident insurance
shall belong to Employee. Employee shall not be paid Base Salary in any period in which he
receives benefits as determined and paid under Employer’s long-term disability policy. Benefits
paid to Employee under Employer’s short-term disability policy shall reduce, by the same amount,
Base Salary payable to Employee for such period.

5. Early Termination. Employee’s employment with Employer may be terminated prior to the
expiration of the term of this Agreement, upon any of the following events: (i) the mutual
agreement of Employer and Employee in writing; (ii) the disability of Employee, which shall, for
the purposes of this Agreement, mean Employee’s inability, for a period exceeding three (3) months
as determined by a qualified physician, and which qualifies Employee for benefits under Employer’s
long-term disability policy, to perform in the usual manner the material duties usually and
customarily pertaining to Employee’s long-term employment; (iii) Employee’s death; (iv) notice of
termination by Employer for cause; (v) Employer’s cessation of business; (vi) written notice of
termination by Employer without cause upon fourteen (14) days’ notice, subject to the provisions
for compensation upon early termination in Section 5.3(b); (vii) debarment by any federal agency
that would limit or prohibit Employee from serving in his capacity for Employer under this
Agreement, or (viii) upon a Change in Control (as defined below) of Employer (as defined in and
under the circumstances described in Section 5.4).

     5.1. Definition of Cause. For purposes of this Agreement, any of the following shall
constitute cause: (i) willful or habitual breach of Employee’s duties; (ii) fraud or intentional
material misrepresentation by Employee to Employer or any others; (iii) theft or conversion by
Employee; (iv) unauthorized disclosure or other use of Employer’s trade secrets, customer lists or
confidential information; (v) habitual misuse of alcohol or any nonprescribed drug or intoxicant;
(vi) debarment by any federal agency that would limit or prohibit Employee from serving in his
capacity for Employer under this Agreement, or (vii) willful violation of any other standards of
conduct as set forth in Employer’s employee manual.

     5.2. Damages. If Employer terminates Employee for cause, Employer shall be entitled
to damages and all other remedies to which Employer may otherwise be entitled.

     5.3. Compensation Upon Early Termination.

	 	(a)	 	If Employee resigns during the term of this Agreement (without mutual consent
of Employer), or if this Agreement is terminated by Employer for cause, Employee shall
be entitled to all accrued but unpaid Base Salary and vacation pay accrued
through the date of delivery of the notice of termination, and all non-vested
options shall be deemed canceled as of that date.

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	 	(b)	 	If Employee is terminated without cause, as defined in subsection (i) through
(vii) of Section 5 above, Employer shall pay to Employee as liquidated damages and in
lieu of any and all other claims which Employee may have against Employer the greater
of six (6) months of Employee’s salary excluding any amounts for benefits. Employer’s
payment pursuant to this subparagraph shall fully and completely discharge any and all
obligations of Employer to Employee arising out of or related to this Agreement and
shall constitute liquidated damages in lieu of any and all claims which Employee may
have against Employer not including any obligation under the workers’ compensation laws
including Employer’s liability provisions.

     Initials:
Employee                                Employer                     

	 	(c)	 	If Employee’s employment is terminated as a result of death or total
disability, Employee shall be entitled to accrued but unpaid Base Salary to date of
termination. The date of termination shall be deemed the date of death or, in the
event of disability, the date Employee qualified for total disability payments under
Employer’s long-term disability plan.
	 
	 	(d)	 	If Employee’s employment is terminated as a result of a Change in Control of
Employer, Employee shall be entitled to a lump-sum payment equal to three times
Employee’s Base Salary at the time. A “Change in Control” shall mean an event
involving one transaction or a related series of transactions in which one of the
following occurs: (i) Employer issues securities equal to 33% or more of Employer’s
issued and outstanding voting securities, determined as a single class, to any
individual, firm, partnership or other entity, including a “group” within the meaning
of Section 13(d)(3) of the Securities Exchange Act of 1934; (ii) Employer issues
securities equal to 33% or more of the issued and outstanding common stock of Employer
in connection with a merger, consolidation or other business combination; (iii)
Employer is acquired in a merger or other business combination transaction in which
Employer is not the surviving company; or (iv) all or substantially all of Employer’s
assets are sold or transferred.
	 
	 	(e)	 	Except as expressly provided in paragraph (d) above, all compensation
described in this Section 5.3 shall be due and payable in installments at least twice
monthly or at the time of the delivery of notice of termination, at Employer’s sole
discretion and election.

6. Confidential Information of Customers of Employer. Employee during the course of his
duties will be handling financial, accounting, statistical, marketing and personnel information of
customers of Employer. All such information is confidential and shall not be disclosed, directly
or indirectly, or used by Employee in any way, either during the term of this Agreement or at any
time thereafter except as required in the course of Employee’s employment with Employer.

7. Unfair Competition. During the term of this Agreement, Employee shall not, directly or
indirectly, whether as a partner, employee, creditor, stockholder, or otherwise, promote,

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participate, or engage in any activity or other business which is competitive in any way with
Employer’s business. The obligation of Employee not to compete with Employer shall not prohibit
Employee from owning or purchasing any corporate securities that are regularly traded on a
recognized stock exchange or on over-the-counter market. In order to protect the trade secrets of
Employer, after the term, or upon earlier termination of this Agreement, Employee shall not,
directly or indirectly, either as an employee, employer, consultants, agent, principal, partner,
stockholder, corporate officer, director, or any other individual or representative capacity,
engage or participate in any business that is in direct competition with the business of Employer
for a period of one (1) year from the date of the expiration of this Agreement in the areas related
to blood processing equipment or procedures.

8. Trade Secrets. Employee shall not disclose to any others, or take or use for Employee’s
own purposes or purposes of any others, during the term of this Agreement or at any time
thereafter, any of Employer’s trade secrets, including without limitation, confidential
information, customer lists, computer programs or computer software of Employer. Employee agrees
that these restrictions shall also apply to (i) trade secrets belonging to third parties in
Employer’s possession and (ii) trade secrets conceived, originated, discovered or developed by
Employee during the term of this Agreement. Information of Employer shall not be considered a
trade secret if it is lawfully known outside of Employer by anyone who does not have a duty to keep
such information confidential.

     8.1 Inventions; Ownership Rights. Employee agrees that all ideas, techniques,
inventions, systems, formulas, discoveries, technical information, programs, prototypes and similar
developments (“Developments”) developed, created, discovered, made, written or obtained by Employee
in the course of or as a result, directly or indirectly, of performance of his duties hereunder,
and all related industrial property, copyrights, patent rights, trade secrets and other forms of
protection thereof, shall be and remain the property of Employer. Employee agrees to execute or
cause to be executed such assignments and applications, registrations and other documents and to
take such other action as may be requested by Employer to enable Employer to protect its rights to
any such Developments. If Employer requires Employee’s assistance under this Section 8.1 after
termination of this Agreement, Employee shall be compensated for his time actually spent in
providing such assistance at an hourly rate equivalent to the prevailing rate for such services and
as agreed upon by the parties.

9. Arbitration. Any disputes regarding the rights or obligations of the parties under this
Agreement shall be conclusively determined by binding arbitration. Any controversy or claim
arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration
in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof.

10. Actions Contrary to Law. Nothing contained in this Agreement shall be construed to
require the commission of any act contrary to law, and whenever there is any conflict between any
provision of this Agreement and any statute, law, ordinance, or regulation, contrary to which the
parties have no legal right to contract, then the latter shall prevail; but in such event, the

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provisions of this Agreement so affected shall be curtailed and limited only to the extent
necessary to bring it within legal requirements.

11. Miscellaneous.

     11.1. Notices. All notices and demands of every kind shall be personally delivered or
sent by first class mail to the parties at the addresses appearing below or at such other addresses
as either party may designate in writing, delivered or mailed in accordance with the terms of this
Agreement. Any such notice or demand shall be effective immediately upon personal delivery or
three (3) days after deposit in the United States mail, as the case may be.

	 	 	 	 	 
	 

	 	EMPLOYER:
	 	THERMOGENESIS CORP.
	 

	 	 	 	2711 Citrus Road
	 

	 	 	 	Rancho Cordova, CA 95742
	 
	 	 	 	 
	 

	 	 	 	EMPLOYEE: John Chapman
	 

	 	 	 	1414 Sutterville Road, #16

	 

	 	 	 	Sacramento, CA 95822

     11.2. Attorneys’ Fees; Prejudgment Interest. If the services of an attorney are
required by any party to secure the performance hereof or otherwise upon the breach or default of
another party to this Agreement, or if any judicial remedy or arbitration is necessary to enforce
or interpret any provision of this Agreement or the rights and duties of any person in relation
thereto, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and other
expenses, in addition to any other relief to which such party may be entitled. Any award of
damages following judicial remedy or arbitration as a result of the breach of this Agreement or any
of its provisions shall include an award of prejudgment interest from the date of the breach at the
maximum amount of interest allowed by law.

     11.3. Choice of Law, Jurisdiction, Venue. This Agreement is drafted to be effective
in the State of California, and shall be construed in accordance with California law. The
exclusive jurisdiction and venue of any legal action by either party under this Agreement shall be
the County of Sacramento, California.

     11.4. Amendment, Waiver. No amendment or variation of the terms of this Agreement
shall be valid unless made in writing and signed by Employee and Employer. A waiver of any term or
condition of this Agreement shall not be construed as a general waiver by Employer. Failure of
either Employer or Employee to enforce any provision or provisions of this Agreement shall not
waive any enforcement of any continuing breach of the same provision or provisions or any breach of
any provision or provisions of this Agreement.

     11.5. Assignment; Succession. It is hereby agreed that Employee’s rights and
obligations under this Agreement are personal and not assignable. This Agreement contains the
entire agreement and understanding between the parties to it and shall be binding on and inure to
the benefit of the heirs, personal representatives, successors and assigns of the parties hereto.

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     11.6. Independent Covenants. All provisions herein concerning unfair competition and
confidentiality shall be deemed independent covenants and shall be enforceable without regard to
any breach by Employer unless such breach by Employer is willful and egregious.

     11.7. Entire Agreement. This document constitutes the entire agreement between the
parties, all oral agreements being merged herein, and supersedes all prior representations. There
are no representations, agreements, arrangements, or understandings, oral or written, between or
among the parties relating to the subject matter of this Agreement that are not fully expressed
herein.

     11.8. Severability. If any provision of this Agreement is held by a court of
competent jurisdiction to be invalid or unenforceable, the remainder of the Agreement which can be
given effect without the invalid provision shall continue in full force and effect and shall in no
way be impaired or invalidated.

     11.9. Captions. All captions of sections and paragraphs in this Agreement are for
reference only and shall not be considered in construing this Agreement.

[THIS SPACE WAS INTENTIONALLY LEFT BLANK.]

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	 	 	EMPLOYER:
	 
	 	 	 	 
	 	 	THERMOGENESIS CORP.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Philip H. Coelho 
	 

	 	 	 	 
	 

	 	 	 	Philip H. Coelho
	 

	 	 	 	Chairman & Chief Executive Officer
	 
	 	 	 	 
	 

	 	By:	 	/s/ Hubert Huckel 
	 

	 	 	 	 
	 

	 	 	 	Hubert Huckel, MD, Chairman, Compensation Committee
	 
	 	 	 	 
	 	 	EMPLOYEE:
	 
	 	 	 	 
	 

	 	By:	 	/s/ John Chapman 
	 

	 	 	 	 
	 

	 	 	 	John Chapman, an individual

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EXHIBIT “A”

EMPLOYEE POSITION DESCRIPTION

FUNCTION: Vice President for Scientific Affairs

Description of Office

The Vice President for Scientific Affairs is charged with: (1) identifying issues, developing
policies, and where appropriate, initiating actions necessary to promote the scientific
investigation of ThermoGenesis product development; (2) monitoring the emergence of new knowledge
and technology pertaining to product development areas of ThermoGenesis and promoting its
application to existing products and to the development of further product development
opportunities; and (3) monitoring and facilitating other departments of ThermoGenesis including
marketing, sales, regulatory, clinical, manufacturing and research and development to promote the
understanding of scientific concepts, procedures, findings, and new technologies.

Job Description / Key Responsibilities:

This individual will assume the top leadership role in the Scientific Affairs department with
oversight of the areas of all scientific activities, medical communications and medical
information, safety, and the scientific affairs for ThermoGenesis products.. The VP of Scientific
Affairs will provide strategic and operational direction of the company’s existing product
development activities as well as scientific guidance and oversight of publications, medical
information, medical education, product safety, and the scientific affairs staff.

Specific responsibilities include:

Direct the life science staff in the conduct of scientific investigations to identify new
opportunities for product development, to resolve technical issues with product performance, and to
characterize and validate product performance. Ensure studies are well designed and reports
generated are well documented and accurate.

Partner with the marketing, regulatory, research and research and development engineering to
optimize the strategic development of ThermoGenesis products in cell therapy and hospital wound
care.

Develop training programs to educate consumers of ThermoGenesis products. Support consumers by
identifying risk factors and early warning signs, resolve product performance issues related to
life sciences and educate the sales force on the scientific principals and use of the company’s
products.

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Hire, manage, and develop a diverse team of scientific professionals to achieve their highest
standards and their best performance to achieve project goals and individual performance standards
that further the Company’s core strategies.

Set and manage priorities and budgets so that milestones are met on time and within budget.

Provide scientific direction, review, and approval of all scientific communications, including
medical information, regulatory submissions, publications, product safety submissions,
publications, and marketing materials containing scientific or technical information.

Develop strong relationships with key opinion leaders, as appropriate, to achieve strategic
objectives.

Education:

This
position requires an individual with a Ph.D. in the life sciences or an M.D. degree.

10exv10w1

 

Exhibit 10.1

Execution version

LIMITED WAIVER AND TENTH AMENDMENT TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

     This LIMITED WAIVER AND TENTH AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is entered into as of this 13th day of July, 2006 among WILSONS
LEATHER HOLDINGS INC., a Minnesota corporation (“Borrower”), GENERAL ELECTRIC CAPITAL CORPORATION,
a Delaware corporation, as Lender, Term Lender, Swing Line Lender and as Agent (“Agent”), the
Credit Parties signatory hereto and the Lenders signatory hereto. Unless otherwise specified
herein, capitalized terms used in this Amendment shall have the meanings ascribed to them by the
Credit Agreement (as hereinafter defined).

RECITALS

     WHEREAS, Borrower, certain Credit Parties, Agent and Lenders have entered into that certain
Fourth Amended and Restated Credit Agreement dated as of April 23, 2002 (as amended, supplemented,
restated or otherwise modified from time to time, the “Credit Agreement”); and

     WHEREAS, Borrower, the Credit Parties signatories to the Credit Agreement, the Lenders and
Agent wish to waive and amend certain provisions of the Credit Agreement, as more fully set forth
herein.

     NOW THEREFORE, in consideration of the mutual covenants herein and other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

Section 1 Limited Waiver. The Agent and the Lenders hereby waive the provisions of Section
5.1 of the Credit Agreement to the extent, and solely to the extent, necessary to permit Credit
Parties to start a new line of wholesale business, including the design, development, manufacture
and marketing of exclusive licensed products, proprietary brands and private label brands of
leather and textile consumer products for sale through wholesale channels, including, but not
limited to, e-commerce, specialty retailers, retail distributors, mid-tier department stores,
premium department stores, specialty department stores, sports retailers, discount retailers and
mass retailers.

Section 2 Amendments to the Credit Agreement. Subject to the satisfaction of the
conditions precedent set forth in Section 4 hereof, the parties hereto hereby agree to amend the
Credit Agreement as follows:

     (a)       Section 1.19 of the Credit Agreement is hereby amended to include the following
new sentence at the end thereof:

          “It being understood and agreed that Eligible Inventory-Apparel shall not
include Eligible Inventory-Wholesale.”

 

 

     (b)   Section 1.20 of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

     “1.20 Eligible Inventory-Wholesale.

     “Eligible Inventory-Wholesale” shall mean all of the
Inventory-Wholesale owned by the Borrower or the Wholesale Subsidiary (including,
without duplication, Eligible In-Transit Inventory that shall, merely upon delivery
to Borrower or Wholesale Subsidiary, otherwise satisfy all applicable criteria
(other than as set forth in clauses (b) and (c) of this Section 1.20)
required for an item to constitute Eligible Inventory-Wholesale) and reflected in
the most recent Borrowing Base Certificate delivered by Borrower to Agent, except
any Inventory-Wholesale to which any of the exclusionary criteria set forth below
applies. Agent shall have the right to establish, modify, or eliminate Reserves
against Eligible Inventory-Wholesale from time to time in its reasonable credit
judgment. In addition, Agent reserves the right, at any time and from time to time
after the Closing Date, to adjust any of the criteria set forth below, to establish
new criteria and to adjust advance rates with respect to Eligible
Inventory-Wholesale in its reasonable credit judgment, subject to the approval of
Requisite Lenders in the case of adjustments or new criteria or changes in advance
rates or the elimination of Reserves which have the effect of making more credit
available. Eligible Inventory-Wholesale shall not include any Inventory-Wholesale of
Borrower or Wholesale Subsidiary that:

     (a) is not owned by Borrower or Wholesale Subsidiary free and clear of all
Liens and rights of any other Person (including the rights of a purchaser that has
made progress payments and the rights of a surety that has issued a bond to assure
Borrower or Wholesale Subsidiary’s performance with respect to that
Inventory-Wholesale), except the Liens in favor of Agent, on behalf of itself and
Lenders;

     (b) (i) is not located on domestic premises owned, leased or rented by
Wholesale Subsidiary or Borrower set forth in Disclosure Schedule (3.2) or is not
located on other domestic premises set forth in Disclosure Schedule (3.2) —
Inventory-Wholesale or (ii) is stored at a leased location, unless Agent has
given its prior consent thereto and unless (x) a reasonably satisfactory landlord
waiver has been delivered to Agent, or (y) Reserves satisfactory to Agent have been
established with respect thereto, (iii) is stored with a bailee or warehouseman
unless a reasonably satisfactory, acknowledged bailee letter has been received by
Agent or Reserves reasonably satisfactory to Agent have been established with
respect thereto, (iv) is located at an owned location subject to a mortgage in favor
of a lender other than Agent, unless a reasonably satisfactory mortgagee waiver has
been delivered to Agent or (v) is located at any site if the aggregate book value of
Inventory-Wholesale at any such location is less than $50,000.

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     (c) is placed on consignment with any Person or is in transit, except for
Inventory-Wholesale in transit between domestic locations of Credit Parties to which
Agent’s Liens have been perfected at origin and destination;

     (d) is covered by a negotiable document of title, unless such document has been
delivered to Agent with all necessary endorsements, free and clear of all Liens
except those in favor of Agent and Lenders;

     (e) is excess, obsolete, unsalable, shopworn, seconds, damaged or unfit for
sale;

     (f) consists of display items or packing or shipping materials, manufacturing
supplies, work-in-process Inventory-Wholesale or replacement parts;

     (g) is not of a type held for sale in the ordinary course of Borrower’s or
Wholesale Subsidiary’s business (including repair, promotional, sample,
discontinued, closeout, special order and layaway items);

     (h) is not subject to a first priority lien in favor of Agent on behalf of
itself and Lenders subject to Permitted Encumbrances;

     (i) breaches any of the representations or warranties pertaining to
Inventory-Wholesale set forth in the Loan Documents;

     (j) consists of Hazardous Materials or goods that can be transported or sold
only with licenses that are not readily available;

     (k) is not covered by casualty insurance reasonably acceptable to Agent;

     (l) is subject to any licensing, patent, royalty, trademark, trade name or
copyright agreements with any third parties which would require any consent of any
third party for the sale or disposition of that Inventory-Wholesale (which consent
has not been obtained) or the payment of any monies to any third party upon such
sale or other disposition (to the extent of such monies) (provided,
however, that this clause (l) shall not be applicable prior to October 1,
2006); or

     (m) is otherwise unacceptable to Agent in its reasonable credit judgment.”

     (c)   Section 1.21 of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

     “1.21 Eligible In-Transit Inventory.

     “Eligible In-Transit Inventory-Retail” shall mean all of the
In-Transit Inventory owned by the Borrower and reflected on Borrower’s monthly
general

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ledger as In-Transit Inventory-Retail and reflected in the most recent
Borrowing Base Certificate as part of Eligible Inventory-Apparel and delivered by
Borrower to Agent, except any In-Transit Inventory-Retail to which any of the
exclusionary criteria set forth below applies. “Eligible In-Transit
Inventory-Wholesale” shall mean all of the In-Transit Inventory owned by the
Borrower or the Wholesale Subsidiary and reflected on Borrower’s or Wholesale
Subsidiary’s monthly general ledger as In-Transit Inventory-Wholesale and reflected
in the most recent Borrowing Base Certificate as part of Eligible
Inventory-Wholesale and delivered by Borrower to Agent, except any In-Transit
Inventory-Wholesale to which any of the exclusionary criteria set forth below
applies. Eligible In-Transit Inventory-Retail and Eligible In-Transit
Inventory-Wholesale shall not include any finished goods:

     (a) that are not in the possession of an Approved Shipper under contract with
Borrower or Wholesale Subsidiary and in which Borrower or Wholesale Subsidiary has
good title;

     (b) as to which Agent for the benefit of Lenders does not have a first priority
security interest through constructive possession by means of a bailee agreement
with an Approved Shipper;

     (c) which have not been accepted by Borrower or Wholesale Subsidiary (F.O.B.
shipping point) as conforming goods or as to which the L/C Issuer has not received
an inspection certificate signed by Borrower’s or Wholesale Subsidiary’s agent or
employee;

     (d) which are not fully insured against loss under insurance naming Agent as
loss payee for the benefit of Lenders;

     (e) as to which the purchase price has not been paid by a draw under a
corresponding Eligible Trade L/C or otherwise; and

     (f) as to which Borrower or Wholesale Subsidiary has not been named as
consignee on bills of lading or other Documents.

     (d)   Section 1.22 of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

     “1.22 Eligible Accounts.

     For the purposes of this Agreement “Eligible Accounts-Retail” shall
mean and include all Accounts reflected in the most recent Borrowing Base
Certificate delivered by Borrower to Agent as Eligible Accounts-Retail consisting of
credit card receivables owing by American Express or credit card issuers with
respect to VISA, Discover, Master Card and other nationally recognized credit cards,
subject to Reserves for set-offs imposed by Agent in its reasonable credit judgment.
For the purposes of this Agreement “Eligible Accounts-Wholesale” shall mean
and include all Accounts owned by Borrower or Wholesale Subsidiary

4

 

and reflected in the most recent Borrowing Base Certificate delivered by
Borrower to Agent as Eligible Accounts-Wholesale, except any Account to which any of
the exclusionary criteria set forth below applies. Agent shall have the right to
establish, modify, or eliminate Reserves against Eligible Accounts-Wholesale from
time to time in its reasonable credit judgment. In addition, Agent reserves the
right, at any time and from time to time after the Closing Date, to adjust any of
the criteria set forth below, to establish new criteria and to adjust advance rates
with respect to Eligible Accounts-Wholesale in its reasonable credit judgment,
subject to the approval of Requisite Lenders in the case of adjustments or new
criteria or changes in advance rates or the elimination of Reserves which have the
effect of making more credit available. Eligible Accounts-Wholesale shall not
include any Account of Borrower or Wholesale Subsidiary:

     (a) that does not arise from the sale of goods or the performance of services
by Borrower or Wholesale Subsidiary in the ordinary course of its business;

     (b) (i) upon which Borrower’s or Wholesale Subsidiary’s right to receive
payment is not absolute or is contingent upon the fulfillment of any condition
whatsoever or (ii) as to which Borrower or Wholesale Subsidiary is not able to bring
suit or otherwise enforce its remedies against the Account Debtor through judicial
process, or (iii) if the Account represents a progress billing consisting of an
invoice for goods sold or used or services rendered pursuant to a contract under
which the Account Debtor’s obligation to pay that invoice is subject to Borrower’s
or Wholesale Subsidiary ‘s completion of further performance under such contract or
is subject to the equitable lien of a surety bond issuer;

     (c) to the extent that any defense, counterclaim, setoff or dispute is asserted
as to such Account;

     (d) that is not a true and correct statement of bona fide indebtedness incurred
in the amount of the Account for merchandise sold to or services rendered and
accepted by the applicable Account Debtor;

     (e) with respect to which an invoice, reasonably acceptable to Agent in form
and substance, has not been sent to the applicable Account Debtor;

     (f) that (i) is not owned by Borrower or Wholesale Subsidiary, (ii) is not
subject to a first priority perfected Lien in favor of Agent on behalf of itself and
Lenders, or (iii) is subject to any other Lien (other than Permitted Encumbrances
set forth in clause (a) of definition of “Permitted Encumbrances”);

     (g) that arises from a sale to any director, officer, other employee or
Affiliate of any Credit Party, or to any entity that has any common officer with any
Credit Party;

5

 

     (h) that is the obligation of an Account Debtor that is the United States
government or a political subdivision thereof, or any state, county or municipality
or department, agency or instrumentality thereof unless Agent, in its sole
discretion, has agreed to the contrary in writing and Wholesale Subsidiary, if
necessary or desirable, has complied with respect to such obligation with the
Federal Assignment of Claims Act of 1940, or any applicable state, county or
municipal law restricting the assignment thereof with respect to such obligation.

     (i) that is the obligation of an Account Debtor located in a foreign country
other than Canada unless payment thereof is assured by a letter of credit assigned
and delivered to Agent, satisfactory to Agent in its reasonable credit judgment as
to form, amount and issuer;

     (j) to the extent Borrower, Wholesale Subsidiary or any Subsidiary thereof is
liable for goods sold or services rendered by the applicable Account Debtor to
Borrower, Wholesale Subsidiary or any Subsidiary thereof but only to the extent of
the potential offset;

     (k) that arises with respect to goods that are delivered on a bill-and-hold,
cash-on-delivery basis or placed on consignment, guaranteed sale or other terms by
reason of which the payment by the Account Debtor is or may be conditional;

     (l) that is not paid within the earlier of: sixty (60) days following its due
date or ninety (90) days following its original invoice date;

     (m) the Account Debtor obligated upon which Account suspends business, makes a
general assignment for the benefit of creditors or fails to pay its debts generally
as they come due;

     (n) a petition is filed by or against any Account Debtor obligated upon which
Account under any bankruptcy law or any other federal, state or foreign (including
any provincial) receivership, insolvency relief or other law or laws for the relief
of debtors;

     (o) that is the obligation of an Account Debtor if fifty percent (50%) or more
of the Dollar amount of all Accounts owing by that Account Debtor are ineligible
under the other criteria set forth in clauses (l), (m) or (n) of this Section 1.22;

     (p) as to which any of the representations or warranties in the Loan Documents
are untrue;

     (q) to the extent such Account is evidenced by a judgment, Instrument or
Chattel Paper;

6

 

     (r) to the extent such Account exceeds any credit limit established by Agent,
in its reasonable credit judgment, following prior notice of such limit by Agent to
Borrower; or

     (s) that is payable in any currency other than Dollars.”

     (e)   Section 1.23 of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

     “1.23 Eligible Trade L/Cs.

     For the purposes of this Agreement “Eligible Trade L/Cs-Retail” shall
mean and include all documentary letters of credit issued by an L/C Issuer for the
account of Borrower for payment of the purchase price of finished goods inventory
which will be Eligible In-Transit Inventory-Retail upon presentation of a draft
under that documentary letter of credit, subject to the further conditions contained
in Section 6.18 of this Agreement and subject to Reserves for set-offs
imposed by Agent in its reasonable credit judgment. For the purposes of this
Agreement “Eligible Trade L/Cs-Wholesale” shall mean and include all
documentary letters of credit issued by an L/C Issuer for the account of Borrower or
Wholesale Subsidiary for payment of the purchase price of finished goods inventory
which will be Eligible In-Transit Inventory-Wholesale upon presentation of a draft
under that documentary letter of credit, subject to the further conditions contained
in Section 6.18 of this Agreement and subject to Reserves for set-offs
imposed by Agent in its reasonable credit judgment.”

     (f)   Section 6.1 of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

     “6.1 Mergers, Subsidiaries, Etc. No Credit Party shall directly or
indirectly, by operation of law or otherwise, (a) form or acquire any Subsidiary, or
(b) merge with, consolidate with, acquire all or substantially all of the assets or
capital stock of, or otherwise combine with or acquire, any Person, except (i)
Bermans may be merged with and into Borrower or another Loan Party, (ii) one or more
Store Guarantors may be merged with any other Store Guarantor or any Loan Party so
long as such Loan Party is the survivor in any merger involving a Loan Party; (iii)
cash and financial assets may be transferred among the Loan Parties so long as no
Event of Default has occurred and is continuing; (iv) the Stock or fixed assets,
Trademarks and Trademark Licenses of Store Guarantors may be transferred to other
Store Guarantors or to any Loan Party; (v) the Credit Parties may form new
wholly-owned domestic Subsidiaries (other than the Wholesale Subsidiary as defined
below); provided that (x) the aggregate initial cash investment in
each such new domestic Subsidiary in the form of equity shall not exceed $300,000
and (y) the Credit Parties and each such new domestic Subsidiary shall execute and
deliver to Agent forms of the Loan Documents executed by or with respect to the Loan
Parties as of the Closing Date; (vi) the Credit Parties may form Joint Ventures to
own, lease or operate one or more

7

 

Stores in one or more domestic airports, as long as the investments therein are
permitted pursuant to Section 6.2(c)(vi) and (vii) a Credit Party may form a
new Subsidiary which is, directly or indirectly, wholly-owned by Ultimate Parent to
carry out the New Wholesale Business (“Wholesale Subsidiary”);
provided that (x) the investment in such Wholesale Subsidiary in the
form of equity and/or loans from Credit Parties shall not exceed $5,000,000 in the
aggregate at any time outstanding and (y) promptly after the formation of such
Wholesale Subsidiary (1) such Wholesale Subsidiary shall become a Loan Party under
the Credit Agreement, guaranty the Obligations and grant to Agent, for the benefit
of Agent and Lenders, a security interest in all or substantially all of the assets
of such Wholesale Subsidiary to secure the Obligations, (2) the applicable Credit
Party shall pledge to Agent, for the benefit of Agent and Lenders, all of the Stock
of such Wholesale Subsidiary to secure the Obligations, and (3) Borrower and
Wholesale Subsidiary shall deliver such other agreements, documents, opinions,
certificates and/or instruments as Agent reasonably request in connection with the
foregoing (the documentation for such guaranty, security and pledge shall be
substantially similar to the applicable Loan Documents previously executed with such
modifications as are reasonably requested by Agent).”

     (g)   Clause (c) of Section 6.2 of the Credit Agreement is hereby amended and
restated to read in its entirety as follows:

     ”(c) each Credit Party may (i) maintain its existing investments in its
Subsidiaries as of the Closing Date, (ii) make unlimited investments in Borrower,
(iii) make investments in new Subsidiaries as permitted under Section 6.1
hereof, (iv) upon prior written notice to Agent, maintain equity investments in
Store Guarantors necessary to maintain them as Solvent in an aggregate amount not to
exceed $1,000,000, (v) make intercompany loans as permitted under Section
6.3 hereof, (vi) make and permit to exist investments described in Section
6.1(vi) as long as (A) at the time such investment is made no Event of Default
shall have occurred and be continuing or would result after giving effect thereto
and Borrower shall have excess Borrowing Availability of at least $10,000,000 after
giving effect thereto and (B) the aggregate amount of all such investments (1)
existing on the Closing Date does not exceed $1,000,000 and (2) made after the
Closing Date does not exceed $2,000,000, and (vii) make other investments not
exceeding $500,000 in the aggregate at any time outstanding.”

     (h)   Clause (i) of Section 6.3 of the Credit Agreement is hereby amended and
restated to read in its entirety as follows:

     ”(i) loans by any Loan Party in the ordinary course of business, to Store
Guarantors and loans by Store Guarantors to any Loan Party in the ordinary course of
business to the extent permitted by Sections 6.1 and 6.2 hereof,”

     (i)   The following definitions set forth in Schedule A to Credit Agreement are hereby
amended and restated to read in their entirety as follows:

8

 

     “Borrowing Base” shall mean, as of any date of determination, the sum
of:

     (a) the difference of (A) (i) 85% of the book value of Eligible
Inventory-Apparel (the “Eligible Inventory-Apparel Advance Rate”);
provided, that in no event shall the Eligible Inventory-Apparel Advance Rate
exceed the product of (i) .85 multiplied by (ii) the then applicable NOLV of
Inventory-Apparel (provided that, solely for the purposes of this definition of
“Borrowing Base”, at all times on and after (x) August 17 but prior to October 1 of
each year, the NOLV of Inventory-Apparel shall be increased by an amount equal to
the product of (a) the number of full calendar weeks completed since the then most
recent August 17 multiplied by (b) one-sixth of the difference between the NOLV of
Inventory-Apparel as of October 1 and the NOLV of Inventory-Apparel as of August 17
and (y) December 17 of any year but prior to February 1 of the next year, the NOLV
of Inventory-Apparel shall be decreased by an amount equal to the product of (a) the
number of full calendar weeks completed since the then most recent December 17
multiplied by (b) one-sixth of the difference between the NOLV of Inventory-Apparel
as of December 17 and the NOLV of Inventory-Apparel as of February 1) minus
(B) the book value of Eligible In-Transit Inventory-Retail which is in excess of (i)
40% of the book value of all Eligible Inventory-Apparel during the period from and
including the first day of the Fiscal Month of July to and including December 15 of
each year, and (ii) 25% of the book value of all Eligible Inventory-Apparel during
the period from and including December 16 of each year to but excluding the first
day of the Fiscal Month of July of the next year; plus

     (b) the lesser of (i) $10,000,000 or (ii) 50% of the book value of Eligible
Inventory-Wholesale at all times; plus

     (c) the lesser of (i) $2,000,000 or (ii) 50% of the book value of Eligible
In-Transit Inventory-Wholesale at all times; plus

     (d) 85% of the book value of Eligible Accounts-Retail at all times;
plus

     (e) the lesser of (i) $5,000,000 or (ii) 85% of the book value of Eligible
Accounts-Wholesale at all times; plus

     (f) 85% of the face amount of all then outstanding and undrawn Eligible Trade
L/Cs-Retail at all times (the “Eligible Trade L/C-Retail Advance Rate”);
provided, that (i) in no event shall the Eligible Trade L/C-Retail Advance
Rate exceed 85% of the NOLV of the Inventory-Apparel, which shall exist upon a draw
on the applicable Eligible Trade L/C-Retail; plus

     (g) 85% of the face amount of all then outstanding and undrawn Eligible Trade
L/Cs-Wholesale at all times (the “Eligible Trade L/C-Wholesale Advance
Rate”); provided, that in no event shall the Eligible Trade L/C-

9

 

Wholesale Advance Rate exceed 50% of the book value of the Eligible
Inventory-Wholesale, which shall exist upon a draw on the applicable Eligible Trade
L/C-Wholesale;

     less the Minimum Excess Availability Reserve less the Peninsula Reserve and in
each case less any additional Reserve established by Agent at such time.”

     “Eligible Accounts” shall mean the Eligible Accounts-Retail and
Eligible Accounts-Wholesale.

     “Eligible In-Transit Inventory” shall mean Eligible In-Transit
Inventory-Retail and Eligible In-Transit Inventory-Wholesale.

     “Eligible Inventory” shall mean Eligible Inventory-Apparel and Eligible
Inventory-Wholesale as set forth in Section 1.19 and Section 1.20
hereof.

     “Eligible Trade L/Cs” shall mean Eligible Trade L/Cs-Retail and
Eligible Trade L/Cs-Wholesale.

     “Net Orderly Liquidation Value” or “NOLV” shall mean the
appraised orderly liquidation value (expressed as a percentage) of Inventory-Apparel
and Inventory-Wholesale, as applicable (without duplication as to any Reserves) less
reasonable liquidation expenses (to the extent not reflected in the applicable
appraisals) as determined in accordance with the then most recent appraisal
delivered to the Agent pursuant to subsection (g) of Schedule H
hereto or, until the first such appraisal is delivered, in accordance with the most
recent appraisal delivered to Agent prior to the Closing Date.

     (j)   Schedule A to Credit Agreement is hereby amended by adding the following new
definitions thereto in alphabetical order:

     “Eligible Accounts-Retail” shall have the meaning assigned to it in
Section 1.22 hereof.

     “Eligible Accounts-Wholesale” shall have the meaning assigned to it in
Section 1.22 hereof.

     “Eligible In-Transit Inventory-Retail” shall have the meaning assigned
to it in Section 1.21 hereof.

     “Eligible In-Transit Inventory-Wholesale” shall have the meaning
assigned to it in Section 1.21 hereof.

     “Eligible Inventory-Wholesale” shall have the meaning assigned to it in
Section 1.20 hereof.

     “Eligible Trade L/Cs-Retail” shall have the meaning assigned to it in
Section 1.23 hereof.

10

 

     “Eligible Trade L/Cs-Wholesale” shall have the meaning assigned to it
in Section 1.23 hereof.

     “Inventory-Wholesale” shall mean all product manufactured or purchased
for sale through wholesale channels and all product sold through wholesale channels.

     “New Wholesale Business” shall mean a new line of wholesale business
including the design, development, manufacture and marketing of exclusive licensed
products, proprietary brands and private label brands of leather and textile
consumer products for sale through wholesale channels, including, but not limited
to, e-commerce, specialty retailers, retail distributors, mid-tier department
stores, premium department stores, specialty department stores, sports retailers,
discount retailers and mass retailers.

     “Non-Core Business” shall mean any retail or wholesale business other
than the retail leather apparel and accessories business, the retail luggage and
accessories business, the New Wholesale Business and the wholesale business
consisting of selling goods against firm purchase orders.

     “Wholesale Subsidiary” shall have the meaning assigned to it in
Section 6.1 hereof.

     (k)   Exhibit 4.1(b) (Form of Borrowing Base Certificate) to the Credit Agreement is
hereby amended and restated to read in its entirety as set forth on Exhibit 4.1(b) (Form of
Borrowing Base Certificate) attached hereto.

Section 3 Representations and Warranties. Borrower and the Credit Parties who are party
hereto represent and warrant that:

     (a) the execution, delivery and performance by Borrower and such Credit Parties of this
Amendment have been duly authorized by all necessary corporate action and this Amendment is a
legal, valid and binding obligation of Borrower and such Credit Parties enforceable against
Borrower and such Credit Parties in accordance with its terms, except as the enforcement thereof
may be subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization,
moratorium or similar law affecting creditors’ rights generally and (ii) general principles of
equity (regardless of whether such enforcement is sought in a proceeding in equity or at law);

     (b) each of the representations and warranties contained in the Credit Agreement is true and
correct in all material respects on and as of the date hereof as if made on the date hereof, except
to the extent that such representations and warranties expressly relate to an earlier date;

     (c) neither the execution, delivery and performance of this Amendment nor the consummation of
the transactions contemplated hereby does or shall contravene, result in a breach of, or violate
(i) any provision of Borrower’s or Credit Parties’ certificate or articles of incorporation or
bylaws, (ii) any law or regulation, or any order or decree of any court or government
instrumentality or (iii) indenture, mortgage, deed of trust, lease, agreement or other

11

 

instrument to which Borrower, the Credit Parties or any of their Subsidiaries is a party or by
which Borrower, the Credit Parties or any of their Subsidiaries or any of their property is bound,
except in any such case to the extent such conflict or breach has been waived by a written waiver
document a copy of which has been delivered to Agent on or before the date hereof; and

     (d) no Default or Event of Default will exist or result after giving effect hereto.

Section 4 Conditions to Effectiveness. This Amendment will be effective only upon
execution and delivery of this Amendment by Borrower, the Credit Parties that are listed on the
signature pages hereto, the Agent and each Lender.

Section 5 Reference to and Effect Upon the Credit Agreement.

     (e) Except as specifically set forth herein, the Credit Agreement and the other Loan Documents
shall remain in full force and effect and are hereby ratified and confirmed.

     (f) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver
of any right, power or remedy of Agent or any Lender under the Credit Agreement or any Loan
Document, nor constitute a waiver of any provision of the Credit Agreement or any Loan Document,
except as specifically set forth herein. Upon the effectiveness of this Amendment, each reference
in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar
import shall mean and refer to the Credit Agreement as amended hereby.

Section 6 Waiver and Release.

     In consideration of the foregoing, each of Borrower and each Credit Party hereby waives,
releases and covenants not to sue Agent or any Lender with respect to, any and all claims it may
have against Agent or any Lender, whether known or unknown, arising in tort, by contract or
otherwise prior to the date hereof relating to one or more Loan Documents.

Section 7 Costs and Expenses.

     As provided in Section 11.3 of the Credit Agreement, Borrower agrees to reimburse
Agent for all fees, costs and expenses, including the fees, costs and expenses of counsel or other
advisors for advice, assistance, or other representation in connection with this Amendment.

Section 8 Governing Law.

     THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF ILLINOIS.

Section 9 Headings.

     Section headings in this Amendment are included herein for convenience of reference only and
shall not constitute a part of this Amendment for any other purposes.

12

 

Section 10 Counterparts.

     This Amendment may be executed in any number of counterparts, each of which when so executed
shall be deemed an original but all such counterparts shall constitute one and the same instrument.

Section 11 Confidentiality.

     The matters set forth herein are subject to Section 11.18 of the Credit Agreement, which is
incorporated herein by reference.

[signature page follows]

13

 

     IN WITNESS WHEREOF, this Amendment has been duly executed as of the date first written above.

	 	 	 	 	 
	 	BORROWER:

WILSONS LEATHER HOLDINGS INC.

 	 
	 	By:  	/s/ Stacy A. Kruse
 	 
	 	Title: Chief Financial Officer and Treasurer 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	LENDERS:

GENERAL ELECTRIC CAPITAL 

CORPORATION, as Agent, Lender, Term Lender 

and Swing Line Lender 

 	 
	 	By:  	/s/ Kristina M. Miller
 	 
	 	Title: Duly Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	LASALLE RETAIL FINANCE, a division of 

LaSalle Business Credit, as agent for Standard 

Federal Bank National Association, as Lender

 	 
	 	By:  	/s/ Matthew Potter
 	 
	 	Title: Vice President 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	THE CIT GROUP/BUSINESS CREDIT, INC., as 

Lender and Documentation Agent

 	 
	 	By:  	/s/ Steven Schuit
 	 
	 	Title: Vice President 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	WELLS FARGO RETAIL FINANCE LLC, as 

Lender and Syndication Agent

 	 
	 	By:  	/s/ Cory Loftus
 	 
	 	Title: V.P. Account Executive 	 
	 	 	 	 
	 

[Signature Page to Limited Waiver and Tenth Amendment]

 

 

     The undersigned are executing this Amendment in their capacity as Credit Parties:

	 	 	 	 	 
	 	Wilsons The Leather Experts Inc. 

 	 
	 	By:  	/s/ Stacy A. Kruse
 	 
	 	 	Stacy A. Kruse 	 
	 	Title: 	Chief Financial Officer and Treasurer 	 
	 

	 	 	 	 	 
	 	Wilsons Center, Inc.

 	 
	 	By:  	/s/ Stacy A. Kruse
 	 
	 	 	Stacy A. Kruse 	 
	 	Title: 	Chief Financial Officer and Treasurer 	 
	 

	 	 	 	 	 
	 	Rosedale Wilsons, Inc.

 	 
	 	By:  	/s/ Stacy A. Kruse
 	 
	 	 	Stacy A. Kruse 	 
	 	Title: 	Chief Financial Officer and Treasurer 	 
	 

	 	 	 	 	 
	 	River Hills Wilsons, Inc.

 	 
	 	By:  	/s/ Stacy A. Kruse
 	 
	 	 	Stacy A. Kruse 	 
	 	Title: 	Chief Financial Officer and Treasurer 	 
	 

	 	 	 	 	 
	 	Bermans The Leather Experts Inc.

 	 
	 	By:  	/s/ Stacy A. Kruse
 	 
	 	 	Stacy A. Kruse 	 
	 	Title: 	Chief Financial Officer and Treasurer 	 
	 

[Signature Page to Limited Waiver and Tenth Amendment]

 

 

Disclosure Schedule 3.2 — Inventory-Wholesale

The locations at which Inventory-Wholesale will be located prior to shipment to customers are as
follows:

Wilsons Leather Distribution Center

7401 Boone Avenue N.

Brooklyn Park, MN 55428

(location leased by Bermans The Leather Experts, Inc. from IRET Properties, a North Dakota limited
partnership, pursuant to Lease dated as of June 21, 2002)

xpedx Warehouse

7011 S. 188th Street

Kent, WA 98032

(location utilized pursuant to Warehousing Agreement between Wilsons Leather Holdings Inc. and
xpedx, a division of International Paper Company, dated March 8, 2006)

[Sch.3.2 — Inventory-Wholesale]

 

 

Exhibit 4.1(b) (Form of Borrowing Base Certificate)

Wilsons Leather

Borrowing Base Certificate

As of x/x/xx

	 	 	 	 	 	 	 	 	 
	Credit Card Receivables per x/x/xx Sales Audit System
	 	 	 	 	 	$	—	 
	Advance Rate
	 	 	 	 	 	 	85.0	%
	 
	 	 	 	 	 	 	 
	Total Credit Card Receivables Availability
	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 
	Wholesale Accounts Receivable
	 	 	 	 	 	$	—	 
	Less: Ineligibles
	 	 	 	 	 	 	—	 
	Eligible Wholesale Accounts Receivable
	 	 	 	 	 	$	—	 
	Advance Rate
	 	 	 	 	 	 	85.0	%
	 
	 	 	 	 	 	 	 
	Total Wholesale Accounts Receivables Availability
	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 
	Inventory per the x/x/xx External Stock Ledger

	 	 	 	 	 	$	—	 
	E-commerce Inventory per the x/x/xx Stock Ledger
	 	 	 	 	 	 	—	 
	Merchandise In-transit — Wires
	 	 	 	 	 	 	—	 
	Merchandise In-transit — LC’s
	 	 	 	 	 	 	—	 
	Merchandise In-transit — Domestic Freight
	 	 	 	 	 	 	—	 
	Merchandise In-transit — Prepaid
	 	 	 	 	 	 	—	 
	Total Inventory
	 	 	 	 	 	$	—	 
	Less Ineligibles
	 	 	 	 	 	 	 	 
	Merchandise In-transit — Unfunded LC’s
	 	$	—	 	 	 	 	 
	Layaway Inventory
	 	 	—	 	 	 	 	 
	Liquidation Store Inventory
	 	 	—	 	 	 	 	 
	Book to Physical Adjustment Reserve
	 	 	—	 	 	 	 	 
	Discontinued Product Lines
	 	 	—	 	 	 	 	 
	Locations < $50,000
	 	 	—	 	 	 	 	 
	Inventory Not Located in 48 Contiguous States
	 	 	—	 	 	 	 	 
	Inventory at E-commerce Location (No Landlord Waiver)
	 	 	—	 	 	 	 	 
	Total Ineligibles
	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 
	Eligible Inventory
	 	 	 	 	 	$	—	 
	Advance Rate through June 2006
	 	 	 	 	 	 	67.7	%
	 
	 	 	 	 	 	 	 
	Inventory Availability
	 	 	 	 	 	$	—	 
	Less Reserves:
	 	 	 	 	 	 	 	 
	Landed Costs of In-transit
	 	$	—	 	 	 	 	 
	Gift Certificates
	 	 	—	 	 	 	 	 
	Credit Memos
	 	 	—	 	 	 	 	 
	Gift Cards
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Total Reserves
	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 
	Total Inventory Availability
	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 
	Import LC Inventory
	 	 	 	 	 	$	—	 
	Less: Import Payments
	 	 	 	 	 	 	—	 
	Plus: New Import LC Issuances
	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 

[Exh.4.1(b)-1]

 

 

	 	 	 	 	 	 	 	 	 
	Net Import LC Inventory
	 	 	 	 	 	$	—	 
	Advance Rate through June 2006
	 	 	 	 	 	 	58.4	%
	 
	 	 	 	 	 	 	 
	Available Import LC Inventory
	 	 	 	 	 	$	—	 
	Less: Landed Costs
	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 
	Total Eligible Import LC Inventory
	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 
	Wholesale Inventory
	 	 	 	 	 	$	—	 
	Less: Ineligibles
	 	 	 	 	 	 	—	 
	Eligible Wholesale Inventory
	 	 	 	 	 	$	—	 
	Advance Rate
	 	 	 	 	 	 	50.0	%
	 
	 	 	 	 	 	 	 
	Total Wholesale Inventory Availability
	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 
	Total Wilsons Availability
	 	 	 	 	 	$	—	 
	Less:
	 	 	 	 	 	 	 	 
	Revolver Outstanding
	 	 	—	 	 	 	 	 
	Import LC’s
	 	 	—	 	 	 	 	 
	Stand-by LC’s
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Excess Availability Reserve
	 	 	10,000,000	 	 	 	 	 
	Peninsula Reserve
	 	 	—	 	 	 	 	 
	Other
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Total Outstanding
	 	 	 	 	 	 	10,000,000	 
	 
	 	 	 	 	 	 	 
	Excess Availability
	 	 	 	 	 	$	(10,000,000	)
	 
	 	 	 	 	 	 	 	 
	Total Wilsons Inventory
	 	$	—	 	 	 	 	 
	Less:
	 	 	 	 	 	 	 	 
	Book to Physical Adjustment Reserve
	 	 	—	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total On-Hand Inventory
	 	$	—	 	 	 	 	 
	Net OLV — Wilsons Inventory through June 2006
	 	 	79.6	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	Wilsons GOB Value
	 	 	 	 	 	$	—	 
	Documentary L/C’s and Wholesale Inventory
	 	$	—	 	 	 	 	 
	Net OLV — L/C Inventory through June 2006
	 	 	68.7	%	 	 	 	 
	 
	 	 	 	 	 	 	 
	L/C Inventory GOB Value
	 	 	 	 	 	 	—	 
	Accounts Receivable GOB Value
	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 
	Total GOB Value of Collateral
	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 
	Actual Revolver and L/C GOB Ratio
	 	 	 	 	 	#DIV/0!
	Maximum Revolver and L/C GOB Ratio
	 	 	 	 	 	 	85.0	%
	In Compliance?
	 	 	 	 	 	#DIV/0!
	 
	 	 	 	 	 	 	 	 
	Actual Revolver, L/C, and Term B GOB Ratio
	 	 	 	 	 	#DIV/0!
	Maximum Revolver, L/C, and Term B GOB Ratio
	 	 	 	 	 	 	92.5	%
	In Compliance?
	 	 	 	 	 	#DIV/0!

 

 

     Wilsons Leather Holdings Inc. hereby certifies that the foregoing accurately reflects its Borrowing
Availability as of the date hereof in accordance with the Fourth Amended and Restated Credit
Agreement dated as of April 23, 2002, among it, General Electric Capital Corporation and the other
parties thereto.

Date: ________________________

WILSONS LEATHER HOLDINGS INC.

By:__________________________

Its:__________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]