Document:

Exhibit 10.1

                              EMPLOYMENT AGREEMENT

     THIS AGREEMENT (the "Agreement"), made in New York, New York as of May 11,
2006, between Escala Group, Inc., a Delaware corporation (the "Company"), and
Matthew Walsh ("Executive").

     WHEREAS, the Company desires to employ Executive as its Chief Financial
Officer, and Executive desires to accept such employment on the terms and
conditions hereinafter set forth;

     NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and agreements
hereinafter set forth, the Company and Executive agree as follows:

     1.   Term.

          Unless earlier terminated in accordance with Section 4 hereof, the
term of this Agreement shall be the period commencing as of the date hereof and
ending on June 30, 2009 (the "Term").

     2.   Employment.

          (a)  Employment by the Company. Executive agrees to be employed by the
Company during the Term upon the terms and subject to the conditions set forth
in this Agreement. Executive shall serve as the Chief Financial Officer and
Executive Vice President of the Company and shall report to the President and
Chief Executive Officer of the Company.

          (b)  Performance of Duties. Throughout the Term, Executive shall
faithfully and diligently perform Executive's duties in conformity with the
directions of the Company and serve the Company to the best of Executive's
ability. Executive shall devote his full business time and best efforts to the
business and affairs of the Company. In his capacity as the Chief Financial
Officer of the Company, Executive shall have such duties and responsibilities as
are customary for Executive's position and any other duties or responsibilities
consistent with his position he may be assigned by the President and Chief
Executive Officer of the Company.

          (c)  Place of Performance. Executive shall be based at the Company's
offices in New York, New York. Executive recognizes that his duties will
require, at the Company's expense, travel to domestic and international
locations.

     3.   Compensation and Benefits.

          (a)  Base Salary. The Company agrees to pay to Executive a base salary
("Base Salary") at the annual rate of $350,000. Payments of the Base Salary
shall be payable in equal installments in accordance with the Company's standard
payroll practices.

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          (b)  Bonus for Fiscal Year 2006. The Company shall pay a bonus to
Executive of $30,493 for fiscal year 2006 (the "2006 Bonus"), payable promptly
following the July Meeting Date, but in no event later than July 31, 2006.

          (c)  Annual Performance Bonus for Fiscal Years 2007-2009. Executive
shall be eligible to receive an annual cash bonus (the "Performance Bonus") for
each of fiscal years 2007, 2008 and 2009. The Performance Bonus, if any, will be
based on the extent to which individual and Company-wide performance goals
established by the Company for each of fiscal years 2007, 2008 and 2009 have
been met. The target Performance Bonus shall be 60% of Base Salary (the "Target
Performance Bonus"). Each Performance Bonus, if any, shall be paid within thirty
days following the issuance of financial statements for the fiscal year in
respect of which such bonus is payable, provided that in no event shall the
Performance Bonus be paid later than the March 14 next occurring following the
end of such fiscal year. Except as provided in Sections 5(c)(iii) and 5(d)(iii),
Executive must be employed by the Company on the last day of the fiscal year to
be eligible for the Performance Bonus.

          (d)  Long-Term Incentive Award. Executive will be eligible to receive
a long-term incentive award pursuant to the Matthew Walsh Incentive Compensation
Program set forth on Annex A hereto.

          (e)  Benefits and Perquisites. Executive shall be entitled to
participate in, to the extent Executive is otherwise eligible under the terms
thereof, the benefit plans and programs, and receive the benefits and
perquisites, generally provided by the Company to executives of the Company,
including without limitation disability insurance and family medical insurance
(subject to applicable employee contributions). Executive shall be entitled to
receive twenty (20) days of annual paid vacation.

          (f)  Business Expenses. The Company agrees to reimburse Executive for
all reasonable and necessary travel, business entertainment and other business
expenses incurred by Executive in connection with the performance of his duties
under this Agreement. Such reimbursements shall be made by the Company on a
timely basis upon submission by Executive of vouchers in accordance with the
Company's standard procedures.

          (g)  Non-Accountable Expense Allowance. The Company shall pay to
Executive a non-accountable expense allowance equal to $12,000 per annum during
the Term, payable by July 31 of each year hereunder.

          (h)  Indemnification. The Company shall indemnify Executive, to the
fullest extent permitted by law, for any and all liabilities to which he may be
subject as a result of, in connection with or arising out of his employment by
the Company hereunder, as well as the costs and expenses (including reasonable
attorneys' fees) of any legal action brought or threatened to be brought against
him or the Company or any of its affiliates as a result of, in connection with
or arising out of such employment. Executive shall be entitled to the full
protection of any insurance policies which the Company may elect to maintain
generally for the benefit of its directors and officers.

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          (i)  No Other Compensation or Benefits; Payment. The compensation and
benefits specified in this Section 3 and in Section 5 of this Agreement shall be
in lieu of any and all other compensation and benefits. Payment of all
compensation and benefits to Executive specified in this Section 3 and in
Section 5 of this Agreement (i) shall be made in accordance with the relevant
Company policies in effect from time to time to the extent the same are
consistently applied, including normal payroll practices, and (ii) shall be
subject to all legally required and customary withholdings.

          (j)  Cessation of Employment. In the event Executive shall cease to be
employed by the Company for any reason, then Executive's compensation and
benefits shall cease on the date of such event, except as otherwise specifically
provided herein or in any applicable employee benefit plan or program or as
required by law.

     4.   Termination of Employment. Executive's employment hereunder may be
          terminated prior to the end of the Term under the following
          circumstances.

          (a)  Death. Executive's employment hereunder shall terminate upon
Executive's death.

          (b)  Executive Becoming Totally Disabled. The Company may terminate
Executive's employment hereunder at any time after Executive becomes "Totally
Disabled." For purposes of this Agreement, Executive shall be "Totally Disabled"
in the event Executive is unable to perform the duties and responsibilities
contemplated under this Agreement for a period of 120 consecutive days due to
physical or mental incapacity or impairment. During any period that Executive
fails to perform Executive's duties hereunder as a result of incapacity due to
physical or mental illness (the "Disability Period"), Executive shall continue
to receive the compensation and benefits provided by Section 3 of this Agreement
until Executive's employment hereunder is terminated; provided, however, that
the amount of base compensation and benefits received by Executive during the
Disability Period shall be reduced by the aggregate amounts, if any, payable to
Executive under any disability benefit plan or program provided to Executive by
the Company.

          (c)  Termination by the Company for Cause. The Company may terminate
Executive's employment hereunder for Cause at any time after providing written
notice to Executive. For purposes of this Agreement, the term "Cause" shall mean
any of the following: (i) Executive's willful and persistent neglect or failure
or refusal to perform his duties under this Agreement (other than as a result of
total or partial incapacity due to physical or mental illness); (ii) any act by
or omission of Executive constituting gross negligence or willful misconduct in
connection with the performance of his duties that could reasonably be expected
to materially injure the reputation, business or business relationships of the
Company or any of its affiliates; (iii) Executive's conviction (including
conviction on a nolo contendre plea) of a felony or any crime involving, in the
good faith judgment of the Company, fraud, dishonesty or moral turpitude; (iv)
any material violation of the Company's Code of Ethics, as may be amended from
time to time (the "Code of Ethics"); (v) the breach of an obligation set forth
in Section 6; or (vi) any other material breach of this Agreement; provided,
however, that a termination by the Company under Sections 4(c)(i) or 4(c)(vi)
for Cause shall be effective only if, within 14 days following delivery of a
written notice by the Company to Executive that the

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Company is terminating his employment for Cause which specifies in reasonable
detail the basis therefor, Executive has failed to cure the circumstances giving
rise to Cause.

          (d)  Termination by the Company Without Cause. The Company may
terminate Executive's employment hereunder at any time for any reason or no
reason by giving Executive thirty (30) days prior written notice of the
termination. Following any such notice, the Company may reduce or remove any and
all of Executive's duties, positions and titles with the Company.

          (e)  Termination by Executive for Good Reason. Executive may terminate
his employment hereunder for Good Reason at any time after providing written
notice to the Company. For purposes of this Agreement, the term "Good Reason"
shall mean any of the following: (i) the Company decreases or fails to pay the
compensation or benefits described in Section 3; (ii) Executive no longer holds
the office of Chief Financial Officer, or his functions and/or duties are
materially diminished; (iii) Executive's job site is relocated to a location
which is more than fifty (50) miles from New York, New York, unless the parties
mutually agree to such relocation or (iv) a Change in Control (as defined below)
occurs; provided, however, that a termination by Executive for Good Reason shall
be effective only if, within 14 days following delivery of a written notice by
Executive to the Company that Executive is terminating his employment for Good
Reason, the Company has failed to cure the circumstances giving rise to Good
Reason.

          (f)  Termination by Executive Without Good Reason. Executive may
terminate his employment hereunder at any time for any reason or no reason by
giving the Company ninety (90) days prior written notice of the termination.
Following any such notice, the Company may reduce or remove any and all of
Executive's duties, positions and titles with the Company, and any such
reduction or removal shall not constitute Good Reason.

          (g)  Change in Control. For purposes of this Agreement, "Change in
Control" of the Company shall be conclusively deemed to have occurred if any of
the following, and only if any of the following, shall have taken place:

               (i)  any "person" (as such term is used in Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended ("Exchange Act")),
other than Afinsa Bienes Tangibles, S.A. ("Afinsa"), any of Afinsa's affiliates,
any court-appointed administrator, trustee or person acting in similar capacity
on behalf of Afinsa, the Executive, any person with whom Executive is or was
acting in concert, or their respective designee(s) or affiliate(s) or any
combination thereof, is or becomes the "beneficial owner" (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing fifty percent (50%) or more of the combined voting power of
the Company's then outstanding securities;

               (ii) a merger or consolidation of the Company is consummated with
any other corporation, other than (i) a merger or consolidation with any of its
affiliates, (ii) a merger or consolidation which would result in the holders of
voting securities of the Company outstanding immediately prior thereto
continuing to hold more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately

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after such merger or consolidation, or (iii) a merger or consolidation effected
to implement a recapitalization of the Company (or similar transaction) in which
no "person" (as such term is used in Sections 13(d) and 14(d)(2) of the Exchange
Act) acquires more than 50% of the combined voting power of the Company's then
outstanding securities or a reverse takeover; or

               (iii) a complete liquidation of the Company occurs or a sale or
disposition by the Company of all or substantially all of the Company's assets
is consummated, provided that this provision shall not apply to a sale or
disposition of the Company's assets to an affiliate of the Company, if such
affiliate agrees to succeed to the Company's obligations under this Agreement.

     5.   Compensation Following Termination Prior to the End of the Term. In
the event that Executive's employment hereunder is terminated prior to the end
of the Term, Executive shall be entitled only to the following compensation and
benefits upon such termination:

          (a)  General. On any termination of Executive's employment, he shall
be entitled to:

               (i)  any accrued but unpaid Base Salary for services rendered
                    through the date of termination; provided, however, that in
                    the event Executive's employment is terminated pursuant to
                    Section 4(b), the amount of Base Salary received by
                    Executive during the Disability Period shall be reduced by
                    the aggregate amounts, if any, payable to Executive under
                    any disability benefit plan or program provided to Executive
                    by the Company;

               (ii) any Performance Bonus not yet paid for any fiscal year
                    ending prior to the date of termination of Executive's
                    employment (payable as and when such bonus would have been
                    paid had Executive's employment continued);

              (iii) any vacation accrued to the date of termination;

               (iv) any accrued but unpaid expenses through the date of
                    termination required to be reimbursed in accordance with
                    Sections 3(f) and 3(g) of this Agreement;

               (v)  receive any benefits to which he may be entitled upon
                    termination pursuant to the plans and programs referred to
                    in Section 3(e) hereof in accordance with the terms of such
                    plans and programs or as may be required by applicable law,
                    provided that in the event of any termination other than
                    pursuant to Sections 4(c) or 4(f) hereof, Executive shall be
                    entitled to receive medical benefits for the remainder of
                    the Term on the same basis that he had been

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                    receiving such benefits immediately prior to such
                    termination.

               (vi) any amounts payable in accordance with, and subject to, the
                    Matthew Walsh Incentive Compensation Program.

          (b)  Termination by the Company for Cause; Termination by Executive
Without Good Reason. In the event that Executive's employment is terminated
prior to the expiration of the Term by the Company for Cause pursuant to Section
4(c) or by Executive without Good Reason pursuant to Section 4(f), Executive
shall be entitled only to those items identified in Section 5(a).

          (c)  Termination by Reason of Death or Executive Becoming Totally
Disabled. In the event that Executive's employment is terminated prior to the
expiration of the Term by reason of Executive's death pursuant to Section 4(a)
or Executive becoming Totally Disabled pursuant to Section 4(b), Executive (or
his estate, as the case may be) shall be entitled only to the following, to be
paid as soon as practicable following the date of such termination:

               (i)  those items identified in Section 5(a);

               (ii) if such termination occurs prior to July 31, 2006, the 2006
                    Bonus;

              (iii) a prorated portion of the Target Performance Bonus for the
                    fiscal year in which Executive's employment terminated,
                    based on the number of days Executive was employed by the
                    Company in such fiscal year and

               (iv) A lump sum payment equal to twelve months of the Base Salary
                    (as determined pursuant to Section 3(a)).

          (d)  Termination by the Company Without Cause; Termination by
Executive for Good Reason. In the event that Executive's employment is
terminated prior to the expiration of the Term by the Company without Cause
pursuant to Section 4(d) or by Executive for Good Reason pursuant to Section
4(e), Executive shall be entitled only to the following, to be paid as soon as
practicable following the date of termination, but in no event prior to the time
such payment would not be subject to tax under Section 409A of the Internal
revenue Code of 1986, as amended:

               (i)  those items identified in Section 5(a);

               (ii) if such termination occurs prior to July 31, 2006, the 2006
                    Bonus;

              (iii) a prorated portion of the Target Performance Bonus for the
                    fiscal year in which Executive's employment terminated,
                    based on the number of days Executive was employed by the
                    Company in such fiscal year; and

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               (iv) a lump sum equal to the Base Salary (as determined pursuant
                    to Section 3(a)) for the lesser of (A) the remainder of the
                    Term, and (B) twelve months.

          (e)  Effect of Material Breach of Section 6 on Compensation and
Benefits Following Termination of Employment Pursuant to Section 5. If, at the
time of termination of Executive's employment for any reason prior to the
expiration of the Term or any time thereafter, Executive is in material breach
of any covenant contained in Section 6 hereof, Executive (or his estate, as
applicable) shall not be entitled to any payment (or if payments have commenced,
any continued payment) under Sections 5(c)(ii), 5(c)(iii), 5(d)(ii), 5(d)(iii)
or 5(d)(iv).

          (f)  No Further Liability; Release. Payment made and performance by
the Company in accordance with this Section 5 shall operate to fully discharge
and release the Company and its directors, officers, employees, affiliates,
stockholders, successors, assigns, agents and representatives from any further
obligation or liability with respect to Executive's employment and termination
of employment. Other than providing the compensation and benefits provided for
in accordance with this Section 5, the Company and its directors, officers,
employees, affiliates, stockholders, successors, assigns, agents and
representatives shall have no further obligation or liability to Executive or
any other person under this Agreement. The payment of any amounts pursuant to
this Section 5 (other than payments required by law) is expressly conditioned
upon the delivery by Executive to the Company of a release in form and substance
reasonably satisfactory to the Company of any and all claims Executive may have
against the Company and its directors, officers, employees, affiliates,
stockholders, successors, assigns, agents and representatives arising out of or
related to Executive's employment by the Company and the termination of such
employment.

     6.   Exclusive Employment; Noncompetition; Nonsolicitation; Nondisclosure
of Proprietary Information; Surrender of Records; Inventions and Patents; Code
of Ethics.

               6.1  No Conflict; No Other Employment. During the period of
Executive's employment with the Company, Executive shall not: (i) engage in any
activity which conflicts or interferes with or derogates from the performance of
Executive's duties hereunder nor shall Executive engage in any other business
activity, whether or not such business activity is pursued for gain or profit
and including service as a director of any other company, except as approved in
advance in writing by the Company; provided, however, that Executive shall be
entitled to manage his personal investments and otherwise attend to personal
affairs, including charitable, social and political activities, in a manner that
does not unreasonably interfere with his responsibilities hereunder, or (ii)
accept or engage in any other employment, whether as an employee or consultant
or in any other capacity, and whether or not compensated therefor.

               6.2  Noncompetition; Nonsolicitation.

               (a)  Executive acknowledges and recognizes the highly competitive
nature of the Company's business and that access to the Company's confidential
records and proprietary information renders him special and unique within the
Company's industry. In

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consideration of the payment by the Company to Executive of amounts that may
hereafter be paid to Executive pursuant to this Agreement (including, without
limitation, pursuant to Sections 3 and 5 hereof) and other obligations
undertaken by the Company hereunder, Executive agrees that during (i) his
employment with the Company and (ii) the period beginning on the date of
termination of employment for any reason and ending one year after the date of
termination of employment (the "Covered Time"), Executive shall not, directly or
indirectly, engage (as owner, investor, partner, stockholder, employer,
employee, consultant, advisor, director or otherwise) in any Competing Business,
provided that the provisions of this Section 6.2(a) will not be deemed breached
merely because Executive owns less than 1% of the outstanding common stock of a
publicly-traded company. For purposes of this Agreement, "Competing Business"
shall mean (i) any business in which the Company is currently engaged anywhere
in the world, including but not limited to (A) the marketing, production and
sale of collectibles, including numismatic and philatelic material, by auction,
as merchant-dealer or otherwise, and (B) the marketing, production and sale of
third-party and owned material by auction; and (ii) any other business which the
Company engages in anywhere in the world during the Term.

               (b)  In further consideration of the payment by the Company to
Executive of amounts that may hereafter be paid to Executive pursuant to this
Agreement (including, without limitation, pursuant to Sections 3 and 5 hereof)
and other obligations undertaken by the Company hereunder, Executive agrees that
during his employment and the Covered Time, he shall not, directly or
indirectly, (i) solicit, encourage or attempt to solicit or encourage any of the
employees, agents, consultants or representatives of the Company or any of its
affiliates to terminate his, her, or its relationship with the Company or such
affiliate; (ii) solicit, encourage or attempt to solicit or encourage any of the
employees, agents, consultants or representatives of the Company or any of its
affiliates to become employees, agents, representatives or consultants of any
other person or entity; (iii) solicit or attempt to solicit any customer, vendor
or distributor of the Company or any of its affiliates with respect to any
product or service being furnished, made, sold or leased by the Company or such
affiliate; or (iv) persuade or seek to persuade any customer of the Company or
any affiliate to cease to do business or to reduce the amount of business which
any customer has customarily done or contemplates doing with the Company or such
affiliate, whether or not the relationship between the Company or its affiliate
and such customer was originally established in whole or in part through
Executive's efforts. For purposes of this Section 6.2(b) only, the terms
"customer," "vendor" and "distributor" shall mean a customer, vendor or
distributor who has done business with the Company or any of its affiliates
within twelve months preceding the termination of Executive's employment.

               (c)  During Executive's employment with the Company and during
the Covered Time, Executive agrees that upon the earlier of Executive's (i)
negotiating with any Competitor (as defined below) concerning the possible
employment of Executive by the Competitor, (ii) receiving an offer of employment
from a Competitor, or (iii) becoming employed by a Competitor, Executive will
(A) immediately provide notice to the Company of such circumstances and (B)
provide copies of Section 6 of this Agreement to the Competitor. Executive
further agrees that the Company may provide notice to a Competitor of
Executive's obligations under this Agreement, including without limitation
Executive's obligations pursuant to Section 6 hereof. For purposes of this
Agreement, "Competitor" shall mean any entity (other

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than the Company or any of its affiliates) that engages, directly or indirectly,
in any Competing Business.

               (d)  Executive understands that the provisions of this Section
6.2 may limit his ability to earn a livelihood in a business similar to the
business of the Company or its affiliates but nevertheless agrees and hereby
acknowledges that the consideration provided under this Agreement, including any
amounts or benefits provided under Sections 3 and 5 hereof and other obligations
undertaken by the Company hereunder, is sufficient to justify the restrictions
contained in such provisions. In consideration thereof and in light of
Executive's education, skills and abilities, Executive agrees that he will not
assert in any forum that such provisions prevent him from earning a living or
otherwise are void or unenforceable or should be held void or unenforceable.

               6.3  Proprietary Information. Executive acknowledges that during
the course of his employment with the Company he will necessarily have access to
and make use of proprietary information and confidential records of the Company
and its affiliates. Executive covenants that he shall not during the Term or at
any time thereafter, directly or indirectly, use for his own purpose or for the
benefit of any person or entity other than the Company, nor otherwise disclose,
any proprietary information to any individual or entity, unless such disclosure
has been authorized in writing by the Company or is otherwise required by law.
Executive acknowledges and understands that the term "proprietary information"
includes, but is not limited to: (a) the software products, programs,
applications, and processes utilized by the Company or any of its affiliates;
(b) the name and/or address of any customer or vendor of the Company or any of
its affiliates or any information concerning the transactions or relations of
any customer or vendor of the Company or any of its affiliates with the Company
or such affiliate or any of its or their partners, principals, directors,
officers or agents; (c) any information concerning any product, technology, or
procedure employed by the Company or any of its affiliates but not generally
known to its or their customers, vendors or competitors, or under development by
or being tested by the Company or any of its affiliates but not at the time
offered generally to customers or vendors; (d) any information relating to the
computer software, computer systems, pricing or marketing methods, sales
margins, cost of goods, cost of material, capital structure, operating results,
borrowing arrangements or business plans of the Company or any of its
affiliates; (e) any information which is generally regarded as confidential or
proprietary in any line of business engaged in by the Company or any of its
affiliates; (f) any business plans, budgets, advertising or marketing plans; (g)
any information contained in any of the written or oral policies and procedures
or manuals of the Company or any of its affiliates; (h) any information
belonging to customers or vendors of the Company or any of its affiliates or any
other person or entity which the Company or any of its affiliates has agreed to
hold in confidence; (i) any inventions, innovations or improvements covered by
this Agreement; and (j) all written, graphic and other material relating to any
of the foregoing. Executive acknowledges and understands that information that
is not novel or copyrighted or patented may nonetheless be proprietary
information. The term "proprietary information" shall not include information
generally available to and known by the public or information that is or becomes
available to Executive on a non-confidential basis from a source other than the
Company, any of its affiliates, or the directors, officers, employees, partners,
principals or agents of the Company or any of its affiliates (other than as a
result of a breach of any obligation of confidentiality).

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               6.4  Confidentiality and Surrender of Records. Executive shall
not during the Term or at any time thereafter (irrespective of the circumstances
under which Executive's employment by the Company terminates), except as
required by law, directly or indirectly publish, make known or in any fashion
disclose any confidential records to, or permit any inspection or copying of
confidential records by, any individual or entity other than in the course of
such individual's or entity's employment or retention by the Company. Upon
termination of employment for any reason or upon request by the Company,
Executive shall deliver promptly to the Company all property and records of the
Company or any of its affiliates, including, without limitation, all
confidential records. For purposes hereof, "confidential records" means all
correspondence, reports, memoranda, files, manuals, books, lists, financial,
operating or marketing records, magnetic tape, or electronic or other media or
equipment of any kind which may be in Executive's possession or under his
control or accessible to him which contain any proprietary information. All
property and records of the Company and any of its affiliates (including,
without limitation, all confidential records) shall be and remain the sole
property of the Company or such affiliate during the Term and thereafter.

               6.5  Inventions and Patents. All inventions, innovations or
 improvements (including policies, procedures, products, improvements, software,
ideas and discoveries, whether patent, copyright, trademark, service mark, or
otherwise) conceived or made by Executive, either alone or jointly with others,
in the course of his employment by the Company, belong to the Company. Executive
will promptly disclose in writing such inventions, innovations or improvements
to the Company and perform all actions reasonably requested by the Company to
establish and confirm such ownership by the Company, including, but not limited
to, cooperating with and assisting the Company in obtaining patents, copyrights,
trademarks, or service marks for the Company in the United States and in foreign
countries.

               6.6  Enforcement. Executive acknowledges and agrees that, by
virtue of his position, his services and access to and use of confidential
records and proprietary information, any violation by him of any of the
undertakings contained in this Section 6 may cause the Company and/or its
affiliates immediate, substantial and irreparable injury for which it or they
have no adequate remedy at law. Accordingly, Executive agrees and consents to
the entry of an injunction or other equitable relief by a court of competent
jurisdiction restraining any violation or threatened violation of any
undertaking contained in this Section 6. Executive waives posting by the Company
or its affiliates of any bond otherwise necessary to secure such injunction or
other equitable relief. Rights and remedies provided for in this Section 6 are
cumulative and shall be in addition to rights and remedies otherwise available
to the parties hereunder or under any other agreement or applicable law.

               6.7  Code of Ethics. Nothing in this Section 6 is intended to
limit, modify or reduce Executive's obligations under the Company's Code of
Ethics. Executive's obligations under this Section 6 are in addition to, and not
in lieu of, Executive's obligations under the Code of Ethics. To the extent
there is any inconsistency between this Section 6 and the Code of Ethics which
would permit Executive to take any action or engage in any activity pursuant to
this Section 6 which he would be barred from taking or engaging in under the
Code of Ethics, the Code of Ethics shall control.

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     7.   Key Man Insurance. Executive recognizes and acknowledges that the
Company or its affiliates may seek and purchase one or more policies providing
key man life insurance with respect to Executive, the proceeds of which would be
payable to the Company or such affiliate. Executive hereby consents to the
Company or its affiliates seeking and purchasing such insurance and will provide
such information, undergo such medical examinations (at the Company's expense),
execute such documents, and otherwise take any and all actions reasonably
necessary or desirable in order for the Company or its affiliates to seek,
purchase, and maintain in full force and effect such policy or policies.

     8.   Assignment and Transfer.

          (a)  Company. This Agreement shall inure to the benefit of and be
enforceable by, and may be assigned by the Company without Executive's consent
to, any purchaser of all or substantially all of the Company's business or
assets, or to any successor to the Company or any assignee thereof (whether
direct or indirect, by purchase, merger, consolidation or otherwise).

          (b)  Executive. The parties hereto agree that Executive is obligated
under this Agreement to render personal services during the Term of a special,
unique, unusual, extraordinary and intellectual character, thereby giving this
Agreement special value. Executive's rights and obligations under this Agreement
shall not be transferable by Executive by assignment or otherwise, and any
purported assignment, transfer or delegation thereof shall be void; provided,
however, that if Executive shall die, all amounts then payable to Executive
hereunder shall be paid in accordance with the terms of this Agreement to
Executive's estate.

     9.   Miscellaneous.

          (a)  Other Obligations. Executive represents and warrants that neither
Executive's employment with the Company nor Executive's performance of
Executive's obligations hereunder will conflict with or violate or otherwise are
inconsistent with any other obligations, legal or otherwise, which Executive may
have. Executive covenants that he shall perform his duties hereunder in a
professional manner and not in conflict or violation, or otherwise inconsistent
with other obligations legal or otherwise, which Executive may have.

          (b)  Nondisclosure; Other Employers. Executive will not disclose to
the Company, use, or induce the Company to use, any proprietary information,
trade secrets or confidential business information of others. Executive
represents and warrants that Executive does not possess any property,
proprietary information, trade secrets and confidential business information
belonging to any prior employers.

          (c)  Cooperation. Following termination of employment with the Company
for any reason, Executive shall cooperate with the Company, as requested by the
Company, to effect a transition of Executive's responsibilities and to ensure
that the Company is aware of all matters being handled by Executive.

          (d)  Mitigation. Executive shall not be required to mitigate damages
or the amount of any payment provided to him under Section 5 of this Agreement
by seeking other employment or otherwise, nor shall the amount of any payments
provided to Executive under

                                       11

<PAGE>

Section 5 be reduced by any compensation earned by Executive as the result of
employment by another employer after the termination of Executive's employment
or otherwise.

          (e)  Protection of Reputation. During the Term and thereafter,
Executive and the Company mutually agree to take no action which is intended, or
would reasonably be expected, to harm the other or their reputation or which
would reasonably be expected to lead to unwanted or unfavorable publicity to the
other.

          (f)  Governing Law. This Agreement shall be governed by and construed
(both as to validity and performance) and enforced in accordance with the
internal laws of the State of New York applicable to agreements made and to be
performed wholly within such jurisdiction, without regard to the principles of
conflicts of law or where the parties are located at the time a dispute arises.

          (g)  Arbitration.

               (i)  General. Executive and the Company specifically, knowingly,
                    and voluntarily agree that they shall use final and binding
                    arbitration to resolve any dispute (an "Arbitrable Dispute")
                    between Executive, on the one hand, and the Company (or any
                    affiliate of the Company), on the other hand. This
                    arbitration agreement applies to all matters relating to
                    this Agreement and Executive's employment with and/or
                    termination of employment from the Company, including
                    without limitation disputes about the validity,
                    interpretation, or effect of this Agreement, or alleged
                    violations of it, any payments due hereunder and all claims
                    arising out of any alleged discrimination, harassment or
                    retaliation, including, but not limited to, those covered by
                    Title VII of the Civil Rights Act of 1964, as amended, the
                    Age Discrimination in Employment Act of 1967, as amended,
                    and the Americans With Disabilities Act or any other
                    federal, state or local law relating to discrimination in
                    employment.

               (ii) Injunctive Relief. Notwithstanding anything to the contrary
                    contained herein, the Company and any affiliate of the
                    Company (if applicable) shall have the right to seek
                    injunctive or other equitable relief from a court of
                    competent jurisdiction to enforce Section 6 of this
                    Agreement. For purposes of seeking enforcement of Section 6,
                    the Company and Executive hereby consent to the jurisdiction
                    of any state or federal court sitting in the City, County
                    and State of New York.

              (iii) The Arbitration. Any arbitration pursuant to this Section
                    9(g) will take place in New York, New York, under the

                                       12

<PAGE>

                    auspices of the American Arbitration Association, in
                    accordance with the National Rules for the Resolution of
                    Employment Disputes of the American Arbitration Association
                    then in effect, and before a panel of three arbitrators
                    selected in accordance with such rules. Judgment upon the
                    award rendered by the arbitrators may be entered in any
                    state or federal court sitting in the City, County and State
                    of New York.

               (iv) Fees and Expenses. In any arbitration pursuant to this
                    Section 9(g), except as otherwise required by law, each
                    party shall be responsible for the fees and expenses of its
                    own attorneys and witnesses, and the fees and expenses of
                    the arbitrators shall be divided equally between the
                    Company, on the one hand, and Executive, on the other hand.

               (v)  Exclusive Forum. Except as permitted by Section 9(g)(ii)
                    hereof, arbitration in the manner described in this Section
                    9(g) shall be the exclusive forum for any Arbitrable
                    Dispute. Except as permitted by Section 9(g)(ii), should
                    Executive or the Company attempt to resolve an Arbitrable
                    Dispute by any method other than arbitration pursuant to
                    this Section 9(g), the responding party shall be entitled to
                    recover from the initiating party all damages, expenses, and
                    attorneys' fees incurred as a result of that breach.

          (h)  Entire Agreement. This Agreement contains the entire agreement
and understanding between the parties hereto in respect of Executive's
employment and supersedes, cancels and annuls any prior or contemporaneous
written or oral agreements, understandings, commitments and practices between
them respecting Executive's employment, including all prior employment
agreements between the Company and Executive (including, without limitation, the
letter agreement between the Company and Executive dated April 3, 2006), which
agreement(s) hereby are terminated and shall be of no further force or effect.

          (i)  Amendment. This Agreement may be amended only by a writing which
makes express reference to this Agreement as the subject of such amendment and
which is signed by Executive and, on behalf of the Company, by its duly
authorized officer.

          (j)  Severability. If any provision of this Agreement or the
application of any such provision to any party or circumstances shall be
determined by any court of competent jurisdiction or arbitration panel to be
invalid or unenforceable to any extent, the remainder of this Agreement, or the
application of such provision to such person or circumstances other than those
to which it is so determined to be invalid or unenforceable, shall not be
affected thereby, and each provision hereof shall be enforced to the fullest
extent permitted by law. If any provision of this Agreement, or any part
thereof, is held to be invalid or unenforceable because of the scope or duration
of or the area covered by such provision, the

                                       13

<PAGE>

parties hereto agree that the court or arbitration panel making such
determination shall reduce the scope, duration and/or area of such provision
(and shall substitute appropriate provisions for any such invalid or
unenforceable provisions) in order to make such provision enforceable to the
fullest extent permitted by law and/or shall delete specific words and phrases,
and such modified provision shall then be enforceable and shall be enforced. The
parties hereto recognize that if, in any judicial or arbitral proceeding, a
court or arbitration panel shall refuse to enforce any of the separate covenants
contained in this Agreement, then that invalid or unenforceable covenant
contained in this Agreement shall be deemed eliminated from these provisions to
the extent necessary to permit the remaining separate covenants to be enforced.
In the event that any court or arbitration panel determines that the time period
or the area, or both, are unreasonable and that any of the covenants is to that
extent invalid or unenforceable, the parties hereto agree that such covenants
will remain in full force and effect, first, for the greatest time period, and
second, in the greatest geographical area that would not render them
unenforceable.

          (k)  Construction. The headings and captions of this Agreement are
provided for convenience only and are intended to have no effect in construing
or interpreting this Agreement. The language in all parts of this Agreement
shall be in all cases construed according to its fair meaning and not strictly
for or against the Company or Executive. As used herein, the words "day" or
"days" shall mean a calendar day or days.

          (l)  Nonwaiver. Neither any course of dealing nor any failure or
neglect of either party hereto in any instance to exercise any right, power or
privilege hereunder or under law shall constitute a waiver of any other right,
power or privilege or of the same right, power or privilege in any other
instance. All waivers by either party hereto must be contained in a written
instrument signed by the party to be charged and, in the case of the Company, by
its duly authorized officer.

          (m)  Notices. Any notice required or permitted hereunder shall be in
writing and shall be sufficiently given if personally delivered or if sent by
registered or certified mail, postage prepaid, with return receipt requested,
addressed: (i) in the case of the Company, to Escala Group, Inc., 623 Fifth
Avenue, New York, New York 10022, attn.: General Counsel, with a copy to Kramer
Levin Naftalis & Frankel LLP, 1177 Avenue of the Americas, New York, New York
10036, attn.: Scott S. Rosenblum, Esq.; and (ii) in the case of Executive, to
Executive's last known address as reflected in the Company's records, or to such
other address as Executive shall designate by written notice to the Company. Any
notice given hereunder shall be deemed to have been given at the time of receipt
thereof by the person to whom such notice is given if personally delivered or at
the time of mailing if sent by registered or certified mail.

          (n)  Assistance in Proceedings, Etc. Executive shall, without
additional compensation, during and after the Term, upon reasonable notice,
furnish such information and proper assistance to the Company as may reasonably
be required by the Company in connection with any legal or quasi-legal
proceeding, including any external or internal investigation, involving the
Company or any of its affiliates.

          (o)  Survival. Cessation or termination of Executive's employment with
the Company shall not result in termination of this Agreement. The respective
obligations

                                       14

<PAGE>

of Executive and the Company as provided in Sections 5, 6, 8 and 9 of this
Agreement shall survive cessation or termination of Executive's employment
hereunder.

          (p)  Section 409A of the Code. The Company makes no representations
regarding the tax implications of the compensation and benefits to be paid to
Executive under this Agreement, including, without limitation, under Section
409A of the Code. Executive and the Company agree that in the event the Company
reasonably determines that the terms hereof would result in Executive being
subject to tax under Section 409A of the Code, Executive and the Company shall
negotiate in good faith to amend this Agreement to the extent necessary to
prevent the assessment of any such tax, including by delaying the payment dates
of any amounts hereunder.

          (q)  Effectiveness. This Agreement shall be of full force and effect
as of the date hereof, unless on or prior to July 31, 2006, the Board of
Directors of the Company, at a meeting duly convened, affirmatively rejects this
Agreement. The date of any such meeting is herein referred to as the "July
Meeting Date".

     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed on its behalf by an individual thereunto duly authorized and Executive
has duly executed this Agreement, all as of the date and year first written
above.

ESCALA GROUP, INC.                     EXECUTIVE:

By:
    -----------------------            -----------------------
    Name:                              Matthew Walsh
    Title:

                                       15

<PAGE>

                                     ANNEX A

                  Matthew Walsh Incentive Compensation Program
                  --------------------------------------------

     1.   Introduction
          ------------

     This Matthew Walsh Incentive Compensation Program (the "Program") is
established by Escala Group, Inc. (the "Company") to provide Matthew Walsh
("Executive") with "performance-based compensation" within the meaning of
Section 162(m)(4) of the Internal Revenue Code of 1986, as amended (the "Code").
The Program has been approved by a committee of the Company's Board of Directors
comprised solely of at least two independent directors (the "Committee") and is
subject to approval by the shareholders of the Company. The Company shall cause
the Program to be submitted for shareholder approval at the next meeting of the
Company's shareholders. In the event the Program is not approved at such
meeting, or in the event such meeting is not held prior to January 31, 2007,
Executive and the Company shall promptly thereafter negotiate in good faith for
a replacement award of similar economic value. Prior to any payment under the
Program, the Committee shall certify the amount of the Long-Term Incentive Award
(as defined below) to which Executive is entitled.

     This Program is an Annex to the employment agreement between Executive and
the Company, dated as of May 11, 2006 (the "Employment Agreement"), and the
provisions of the Employment Agreement, including without limitation, with
respect to arbitration of disputes, shall apply to this Program to the extent
not inconsistent with the terms of the Program.

     2.   Long-Term Incentive Award.
          --------------------------

          (a)  The Company will pay to Executive in shares of the Company's
common stock (the "Long-Term Incentive Award") an amount equal to 50% of the
Appreciation in Stock Price (as defined below) for 40,000 shares of common stock
of the Company. The "Appreciation in Stock Price" shall mean the appreciation,
if any, between (1) the closing price of the common stock of the Company on May
11, 2006, and (2) the Average Closing Price (as defined below) for the period
between June 1, 2009 and June 30, 2009. Any shares delivered to Executive shall
be registered and enable Executive to freely transact the shares so delivered.

          (b)  Payment of the Long-Term Incentive Award, if any, shall be made
on July 31, 2009; provided, however, that if necessary to comply with Section
409A(a)(2)(B)(i) of the Code, and applicable administrative guidance and
regulations, such payment shall be made on December 31, 2009. The number of
shares payable to Executive shall be based on the closing price of the Company's
common stock on June 30, 2009.

          (c)  Except as provided below, Executive must be employed by the
Company on June 30, 2009 to be eligible for the Long-Term Incentive Award.

     3.   Termination of Employment.
          --------------------------

          (a)  Subject to Sections 3(c) and 3(d) below, if Executive's
employment terminates for any reason other than by the Company for Cause or by
the Executive without Good Reason (as each such term is defined in the
Employment Agreement), Executive

<PAGE>

shall be entitled to payment of the Long-Term Incentive Award in accordance
with, and subject to, Section 2 of the Program, provided that in such a case the
Appreciation in Stock Price shall be the appreciation, if any, between (1) the
closing price of the common stock of the Company on May 11, 2006, and (2) the
Average Closing Price for the 30-day period preceding the date of termination of
employment. Payment of the Long-Term Incentive Award, if any, shall be made
thirty days following the date of termination of employment; provided, however,
if necessary to comply with Section 409A(a)(2)(B)(i) of the Code, and applicable
administrative guidance and regulations, such payment shall be made six months
following the date of termination of employment.

          (b)  If Executive's employment is terminated by the Company for Cause
or by Executive without Good Reason, Executive shall not be eligible to receive
the Long-Term Incentive Award.

          (c)  The payment of any amounts pursuant to Section 3(a) hereof is
expressly conditioned upon the delivery by Executive to the Company of a release
in form and substance reasonably satisfactory to the Company of any and all
claims Executive may have against the Company and its directors, officers,
employees, affiliates, stockholders, successors, assigns, agents and
representatives arising out of or related to Executive's employment by the
Company and the termination of such employment.

          (d)  If, at the time of termination of Executive's employment for any
reason or any time thereafter, Executive is in material breach of any covenant
contained in Section 6 of the Employment Agreement, Executive (or his estate, as
applicable) shall not be entitled to any payment under Section 3(a) hereof.

     4.   Average Closing Price.
          ----------------------

     For purposes of the Program, "Average Closing Price" with respect to a
specified period of time shall mean the average of closing prices of the
Company's common stock as reported in the Wall Street Journal for those dates
during the specified period on which the national stock exchanges are open for
business.

     5.   Equitable Adjustment.
          ---------------------

     In the event of any change in the outstanding shares of Company's common
stock, through declaration of stock or other dividends or distributions with
respect to such shares, through restructuring, recapitalization or other similar
event or through stock splits, change in par value, combination or exchange of
shares, or the like, then the number or kind of shsares covered by the Program
shall be adjusted proportionately, as necessary to reflect equitably such
changes.Exhibit 4.1

                                 AMENDMENT NO. 2

     AMENDMENT NO. 2, dated as of July 28, 2006 (this "Amendment"), by and among
Revlon Consumer Products Corporation (the "Company"), Citicorp USA, Inc., as
administrative agent for the Term Loan Lenders (in such capacity, the "Term Loan
Administrative Agent"), and Citicorp USA, Inc., as administrative agent for the
Multi-Currency Lenders (in such capacity, the "Multi-Currency Administrative
Agent" and, together with the Term Loan Administrative Agent, the
"Administrative Agents").

                              W I T N E S S E T H:

     WHEREAS, the Company and the Administrative Agents are parties to that
certain Credit Agreement, dated as of July 9, 2004 (as amended by Amendment No.
1 thereto dated as of February 15, 2006, the "Credit Agreement"), among the
Company and the Local Borrowing Subsidiaries, as borrowers, the Lenders and
Issuing Lenders party thereto, the Term Loan Administrative Agent, the
Multi-Currency Administrative Agent and Citicorp USA, Inc., as collateral agent
for the Secured Parties; and

     WHEREAS, the Company has requested that the Administrative Agents, on
behalf of the Lenders, enter into this Amendment to amend the Credit Agreement
as set forth herein;

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

     1. Defined Terms. Capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to such terms in the Credit Agreement.

     2. Amendments. Effective as of the Effective Date (as defined below) and
subject to the terms and conditions set forth herein, the Credit Agreement is
hereby amended as follows:

     (a) Section 1.1 of the Credit Agreement is hereby amended by inserting the
following definitions among the existing definitions set forth in such section
in alphabetical order:

          "Additional Term Loan" and "Additional Term Loans" shall have the
     meanings assigned to such terms in Section 2.1(b).

          "Additional Term Loan Commitment" shall mean, with respect to each
     Additional Term Loan Lender, the obligation of such Additional Term Loan
     Lender to make Additional Term Loans to the Company on the Amendment No. 2
     Effective Date, in an aggregate principal amount not to exceed the amount
     set forth opposite such Additional Term Loan Lender's name on Schedule IIA;
     collectively, as to all such Additional Term Loan Lenders, the "Additional
     Term Loan Commitments".

<PAGE>

          "Additional Term Loan Facility" shall mean the Additional Term Loan
     Commitments and the provisions herein related to the Additional Term Loans.

          "Additional Term Loan Lender" shall mean each bank or other financial
     institution from time to time party hereto which holds an Additional Term
     Loan Commitment or an Additional Term Loan; collectively, the "Additional
     Term Loan Lenders".

          "Additional Term Loan Percentage" shall mean, at any date with respect
     to each Additional Term Loan Lender, the percentage which the aggregate
     outstanding principal amount of such Additional Term Loan Lender's
     Additional Term Loans at such date constitutes of the aggregate outstanding
     principal amount of Additional Term Loans of all Additional Term Loan
     Lenders at such date.

          "Aggregate Additional Term Loan Commitment" shall mean, at any time,
     the aggregate amount of the Additional Term Loan Commitments of all
     Additional Term Loan Lenders then in effect. The original amount of the
     Aggregate Additional Term Loan Commitment is $100,000,000.

          "Aggregate Original Term Loan Commitment" shall mean, at any time, the
     aggregate amount of the Original Term Loan Commitments of all Original Term
     Loan Lenders then in effect. The original amount of the Aggregate Original
     Term Loan Commitment is $800,000,000.

          "Amendment No. 2" shall mean the Amendment No. 2, dated as of July 28,
     2006, by and among the Company, the Term Loan Administrative Agent and the
     Multi-Currency Administrative Agent, to this Agreement.

          "Amendment No. 2 Effective Date" shall mean the Effective Date (as
     defined in Amendment No. 2).

          "Original Term Loan" and "Original Term Loans" shall have the meanings
     assigned to such terms in Section 2.1(a).

          "Original Term Loan Commitment" shall mean, with respect to each
     Original Term Loan Lender, the obligation of such Original Term Loan Lender
     to make Original Term Loans to the Company on the Closing Date, in an
     aggregate principal amount not to exceed the amount set forth opposite such
     Original Term Loan Lender's name on Schedule II; collectively, as to all
     such Original Term Loan Lenders, the "Original Term Loan Commitments".

          "Original Term Loan Facility" shall mean the Original Term Loan
     Commitments and the provisions herein related to the Original Term Loans.

          "Original Term Loan Lender" shall mean each bank or other financial
     institution from time to time party hereto which holds an Original Term
     Loan Commitment or an Original Term Loan; collectively, the "Original Term
     Loan Lenders".

                                       2
<PAGE>

          "Original Term Loan Percentage" shall mean, at any date with respect
     to each Original Term Loan Lender, the percentage which the aggregate
     outstanding principal amount of such Original Term Loan Lender's Original
     Term Loans at such date constitutes of the aggregate outstanding principal
     amount of Original Term Loans of all Original Term Loan Lenders at such
     date.

     (b) Section 1.1 of the Credit Agreement is hereby amended by amending and
restating the definitions of "Aggregate Term Loan Commitment", "Term Loan
Commitment", "Term Loan Facility", "Term Loan" and "Term Loan Percentage" in
their entirety as follows, respectively:

          "Aggregate Term Loan Commitment" shall mean, at any time, the
     aggregate amount of the Aggregate Original Term Loan Commitments and the
     Aggregate Additional Term Loan Commitments then in effect.

          "Term Loan Commitment" shall mean, with respect to any Term Loan
     Lender, the Original Term Loan Commitments and the Additional Term Loan
     Commitments of such Term Loan Lender.

          "Term Loan Facility" shall mean each of the Original Term Loan
     Facility and the Additional Term Loan Facility.

          "Term Loan" shall mean any Original Term Loan or any Additional Term
     Loan; collectively, the "Term Loans".

          "Term Loan Percentage" shall mean, at any date with respect to each
     Term Loan Lender, the percentage which the aggregate outstanding principal
     amount of such Term Loan Lender's Term Loans at such date constitutes of
     the aggregate outstanding principal amount of Term Loans of all Term Loan
     Lenders at such date.

     (c) The definition of "EBITDA" in Section 1.1 of the Credit Agreement is
hereby amended by (i) replacing the word "and" at the end of clause (b)(xv)
thereof with ",", (ii) adding the word "and" at the end of clause (b)(xvi)
thereof and (iii) adding the following as a new clause (b)(xvii) thereof:

          "(xvii) non-recurring restructuring charges and returns charges in an
     aggregate amount with respect to all charges under this clause (xvii) not
     to exceed $25,000,000 during the term of this Agreement in respect of
     organizational realignments and related costs and returns costs due to
     retail space reconfigurations and/or product discontinuances (specifically
     identified and itemized by the Company at the time taken, whether or not
     characterized as a non-recurring or restructuring charge in accordance with
     GAAP)".

     (d) Section 2.1 of the Credit Agreement is hereby amended by amending and
restating such section in its entirety as follows:

          "Section 2.1 Term Loan Commitments. (a) Subject to the terms and
     conditions of this Agreement, each Original Term Loan Lender severally made
     term loans in Dollars (individually, an "Original Term Loan"; collectively,
     the "Original Term Loans") to the Company under the Original Term Loan
     Commitments on the Closing Date in an amount equal to such Original Term
     Loan Lender's Original Term Loan Commitment.

                                       3
<PAGE>

          (b) Subject to the terms and conditions of this Agreement, each
     Additional Term Loan Lender severally agrees to make term loans in Dollars
     (individually, an "Additional Term Loan"; collectively, the "Additional
     Term Loans") to the Company under the Additional Term Loan Commitments,
     which Additional Term Loans shall be made in a single drawing on the
     Amendment No. 2 Effective Date; provided, however, that the aggregate
     outstanding amount of the Additional Term Loans made by any Additional Term
     Loan Lender shall not exceed such Additional Term Loan Lender's Additional
     Term Loan Commitment.

          (c) The Term Loans may from time to time be (a) Eurodollar Loans, (b)
     Alternate Base Rate Loans or (c) a combination thereof, as determined by
     the Company and notified to the Term Loan Administrative Agent in
     accordance with Section 2.3 and 7.7. Amounts borrowed under this Section
     2.1 and repaid or prepaid may not be reborrowed. All optional and mandatory
     prepayments of the Term Loans pursuant to this Agreement shall be applied
     pro rata between the Original Term Loans and the Additional Term Loans."

     (e) Section 2.3 of the Credit Agreement is hereby amended by (i)
renumbering the existing paragraph (b) thereof as paragraph (c) and (ii) adding
as a new paragraph (b) thereof the following:

          "(b) The Company may request a borrowing under the Additional Term
     Loan Commitments on the Amendment No. 2 Effective Date, subject to Section
     2.1, by submitting an irrevocable Notice of Borrowing to the Term Loan
     Administrative Agent, which notice shall specify (i) the aggregate
     principal amount to be borrowed, (ii) the Amendment No. 2 Effective Date,
     (iii) whether the Additional Term Loans to be borrowed are to be Eurodollar
     Loans or Alternate Base Rate Loans or a combination thereof and, if a
     combination, the respective aggregate amount of each type of borrowing and
     (iv) if the Additional Term Loans to be borrowed are Eurodollar Loans, the
     length of the Interest Period or Interest Periods applicable thereto. Any
     such Notice of Borrowing must be received by the Term Loan Administrative
     Agent prior to 11:00 a.m., New York City time, three Working Days prior to
     the requested borrowing date, in the case of Eurodollar Loans, and one
     Business Day prior to the requested borrowing date, in the case of
     Alternate Base Rate Loans. Upon receipt of any such notice, the Term Loan
     Administrative Agent will promptly notify each Additional Term Loan Lender
     thereof. Each Additional Term Loan Lender will make available to the Term
     Loan Administrative Agent in immediately available funds at the office of
     the Term Loan Administrative Agent specified in Section 14.2 (or at such
     other location as the Term Loan Administrative Agent may direct), by 1:00
     P.M., New York City time, on the Amendment No. 2 Effective Date an amount
     equal to the Additional Term Loan Percentage of such Additional Term Loan
     Lender multiplied by the aggregate principal amount of the Additional Term
     Loans requested to be made on the Amendment No. 2 Effective Date in
     Dollars, in funds immediately available to the Term Loan Administrative
     Agent. The proceeds of the Additional Term Loans received by the Term Loan
     Administrative Agent hereunder on the applicable borrowing date shall
     promptly be made available to the Company by the Term Loan Administrative
     Agent's crediting the account of the Company designated to the Term Loan
     Administrative Agent with the aggregate amount actually received by the
     Term Loan Administrative Agent from the Additional Term Loan Lenders and in
     like funds as received by the Term Loan Administrative Agent."

                                       4
<PAGE>

     (f) Section 2.4(a) of the Credit Agreement is hereby amended by (i)
amending all references therein of "Term Loans" to "Original Term Loans", (ii)
amending all references therein of "Term Loan Lender" to "Original Term Loan
Lender" and (iii) amending all references therein of "Term Loan Percentage" to
"Original Term Loan Percentage"."

     (g) Section 2.4 of the Credit Agreement is hereby amended by (i)
renumbering the existing paragraph (b) thereof as paragraph (c) and (ii) adding
as a new paragraph (b) thereof the following:

          "(b) The Additional Term Loans of each Additional Term Loan Lender
     shall mature in 16 consecutive quarterly installments, each of which shall
     be in an amount equal to such Additional Term Loan Lender's Additional Term
     Loan Percentage multiplied by the amount set forth below opposite such
     installment (as such amounts may be reduced from time to time in accordance
     with Section 7.2(b) or 7.4(d)):

                            Installment        Principal Amount
                            -----------        ----------------

                         October 15, 2006        $252,525.25

                         January 15, 2007        $252,525.25

                           April 15, 2007        $252,525.25

                            July 15, 2007        $252,525.25

                         October 15, 2007        $252,525.25

                         January 15, 2008        $252,525.25

                           April 15, 2008        $252,525.25

                            July 15, 2008        $252,525.25

                         October 15, 2008        $252,525.25

                         January 15, 2009        $252,525.25

                           April 15, 2009        $252,525.25

                            July 15, 2009        $252,525.25

                                       5
<PAGE>

                            Installment        Principal Amount
                            -----------        ----------------

                         October 15, 2009        $252,525.25

                         January 15, 2010        $252,525.25

                           April 15, 2010        $252,525.25

                    Term Loan Maturity Date    $96,212,121.25"

     (h) Section 2.5 of the Credit Agreement is hereby amended by (i) amending
all references therein of "Term Loans" to "Original Term Loans" and (ii) adding
at the end of such section the following: "The proceeds of the Additional Term
Loans hereunder shall be used by the Company for general corporate purposes not
prohibited hereunder."

     (i) Section 7.3(g) of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

          "(g) Upon the borrowing of Term Loans pursuant to Section 2.1, the
     Term Loan Commitment of each Term Loan Lender shall be automatically and
     permanently reduced in the amount of the Term Loan made by each Term Loan
     Lender pursuant to such borrowing. The Aggregate Original Term Loan
     Commitment, if any, shall terminate on the Closing Date after the funding
     of the Original Term Loans. The Aggregate Additional Term Loan Commitment,
     if any, shall terminate on the Amendment No. 2 Effective Date after the
     funding of the Additional Term Loans."

     (j) Section 11.1(a) of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

          "(a) Senior Secured Leverage Ratio. Permit the Senior Secured Leverage
     Ratio of the Company and its Subsidiaries for the period of four
     consecutive fiscal quarters of the Company ending during any period set
     forth below to be more than the amount set forth opposite such period:

                                                     Senior Secured
                          Period                     Leverage Ratio
                          ------                     ---------------

                 December 31, 2004 through            5.50 to 1.00
                 June 30, 2007

                 September 30, 2007 and each          5.00 to 1.00"
                 fiscal quarter thereafter

     (k) Article XII of the Credit Agreement is hereby amended by (i) adding
"or" at the end of clause (s) thereof and (ii) adding the following as a new
clause (t) thereof:

                                       6
<PAGE>

          "(t) Additional Equity Offerings. (i) The aggregate commitments by the
     M&FH Lenders to provide the M&FH Loans to the Company (whether such
     commitments are funded or unfunded) shall be less than $87,000,000 at any
     time during the period from the Amendment No. 2 Effective Date to the date
     on which Revlon shall have consummated one or more Equity Offerings after
     the Amendment No. 2 Effective Date generating at least $75,000,000 in gross
     proceeds and made Capital Contributions to the Company in an amount equal
     to the Net Proceeds in respect thereof (provided that no such Equity
     Offering shall be required hereunder), or (ii) the Company shall fail to
     apply any Capital Contributions referred to in clause (i) above promptly
     after its receipt thereof to repurchase, repay, defease or redeem any
     Subordinated Notes or other Indebtedness for borrowed money of the Company
     scheduled to mature prior to the Term Loan Maturity Date, including,
     without limitation, repayment of outstanding Multi-Currency Loans without
     any corresponding permanent reduction in the Aggregate Multi-Currency
     Commitment;"

     (l) The Annex C attached to this Amendment is hereby added to the Credit
Agreement as a new Schedule IIA thereto.

     3. Conditions to Effectiveness of this Amendment. This Amendment shall
become effective as of the date the following conditions precedent have been
satisfied (the "Effective Date"):

     (a) The Administrative Agents shall have received (i) this Amendment, duly
executed and delivered by the Company and the Administrative Agents, (ii) the
Consent and Affirmation, in the form attached hereto as Annex A, duly executed
and delivered by each of the Guarantors, and (iii) Lender Consents, in the form
attached hereto as Annex B (the "Lender Consent"), duly executed and delivered
by Lenders constituting the Required Lenders.

     (b) The Administrative Agents shall have received written commitments duly
executed by existing Lenders (or their Affiliates or Related Funds) or other
Eligible Assignees in an aggregate amount equal to the amount of the proposed
Aggregate Additional Term Loan Commitments and, in the case of each such
Eligible Assignee that is not an existing Lender, an assumption agreement in
form and substance satisfactory to the Administrative Agents and duly executed
by the Company, the Administrative Agents and such Eligible Assignee.

     (c) The Administrative Agents shall have received certified copies of
resolutions of the Board of Directors of the Company and each Guarantor
approving the execution, delivery and performance of this Amendment and the
other documents to be executed in connection herewith.

     (d) The Administrative Agents shall have received a favorable opinion of
Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel for the Company and each
Guarantor, addressed to the Administrative Agents, the Collateral Agent, the
Lenders and the Issuing Lenders and in form and substance reasonably
satisfactory to the Administrative Agents.

     (e) The Administrative Agents shall have received from the applicable title
insurance company bring-down endorsements to each of the title insurance
policies issued pursuant to the terms of the Credit Agreement insuring the
continued first priority Lien of the Collateral Agent for the benefit of the
Multi-Currency Secured Parties (as defined in the Pledge and Security Agreement)
and the continued second priority Lien of the Collateral Agent for the benefit
of the Term Loan Secured Parties (as defined in the Pledge and Security
Agreement) on each of the Mortgaged Properties pursuant to the Mortgages,
subject only to Customary Permitted Liens, and otherwise in form and substance
reasonably satisfactory to the Administrative Agents.

                                       7
<PAGE>

     (f) The Administrative Agents shall have received a solvency certificate
from the Chief Financial Officer of the Company, in form and substance
reasonably satisfactory to the Administrative Agents.

     (g) The Term Loan Administrative Agent shall have received a duly executed
Notice of Borrowing from the Company.

     (h) The Administrative Agents shall have received (i) all accrued and
unpaid interest on the Term Loans (immediately prior to giving effect to this
Amendment), together with any amounts payable pursuant to Section 7.11 of the
Credit Agreement and (ii) all fees and expenses (including reasonable fees and
expenses of counsel) due and payable on or before the Effective Date, to the
extent such fees and expenses have been invoiced at least one Business Day prior
to the Effective Date.

     (i) (i) The Term Loan Administrative Agent shall have received from the
Company, for the ratable benefit of the Term Loan Lenders that have delivered a
Lender Consent on or prior to 12:00 noon (New York time) on July 21, 2006, an
amendment fee equal to 0.125% of each such Term Loan Lender's Term Loan
Percentage of the aggregate principal amount of Term Loans outstanding on the
Effective Date (immediately prior to giving effect to this Amendment) and (ii)
the Multi-Currency Administrative Agent shall have received from the Company,
for the ratable benefit of the Multi-Currency Lenders that have delivered a
Lender Consent on or prior to 12:00 noon (New York time) on July 21, 2006, an
amendment fee equal to 0.125% of each such Multi-Currency Lender's
Multi-Currency Percentage of the Aggregate Multi-Currency Commitment on the
Effective Date; provided, that, in the case of clauses (i) and (ii), the
Additional Term Loans are made by the Additional Term Loan Lenders on the
Effective Date.

     (j) Prior to and after giving effect to this Amendment, each of the
representations and warranties made by any Loan Party in or pursuant to the Loan
Documents shall be true and correct in all material respects on and as of the
date hereof, as if made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date, in which
case such representations and warranties shall be true and correct in all
material respects as of such earlier date.

     (k) No Default or Event of Default shall have occurred and be continuing on
the date hereof prior to or after giving effect to this Amendment.

                                       8
<PAGE>

     4. Representations and Warranties. The Company hereby represents and
warrants to the Administrative Agents and the Lenders, on and as of the date
hereof, both prior to and after giving effect to this Amendment, that:

     (a) (i) The Company has taken all necessary action to authorize the
execution, delivery and performance of this Amendment, (ii) this Amendment has
been duly executed and delivered by the Company and (iii) this Amendment is the
legal, valid and binding obligation of the Company, enforceable against it in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors' rights generally and by general equitable principles.

     (b) Each of the representations and warranties made by any Loan Party in or
pursuant to the Loan Documents is true and correct in all material respects on
and as of the date hereof, as if made on and as of such date, except to the
extent such representations and warranties expressly relate to an earlier date,
in which case such representations and warranties are true and correct in all
material respects as of such earlier date.

     (c) No Default or Event of Default has occurred and is continuing.

     5. Continuing Effect. Except as expressly set forth in this Amendment, all
of the terms and provisions of the Credit Agreement are and shall remain in full
force and effect and the Company shall continue to be bound by all of such terms
and provisions. This Amendment is limited to the specific provisions of the
Credit Agreement specified herein and shall not constitute an amendment of, or
an indication of the Administrative Agents' or the Lenders' willingness to amend
or waive, any other provisions of the Credit Agreement or the same provisions
for any other date or purpose.

     6. Expenses. The Company agrees to pay and reimburse each Administrative
Agent for all its reasonable out-of-pocket costs and expenses incurred in
connection with the negotiation, preparation, execution and delivery of this
Amendment, and all other documents prepared in connection herewith, and the
transactions contemplated hereby, including, without limitation, reasonable fees
and disbursements and other charges of counsel to the Administrative Agents.

     7. Choice of Law. This Amendment and the rights and obligations of the
parties hereto shall be governed by, and construed and interpreted in accordance
with, the laws of the State of New York.

     8. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties and separate counterparts, each of which
when so executed and delivered, shall be deemed an original, and all of which,
when taken together, shall constitute one and the same instrument. Delivery of
an executed counterpart of a signature page to this Amendment by facsimile or
e-mail shall be effective as delivery of a manually executed counterpart of this
Amendment.

     9. Integration. This Amendment, together with the other Loan Documents,
incorporates all negotiations of the parties hereto with respect to the subject
matter hereof and is the final expression and agreement of the parties hereto
with respect to the subject matter hereof.

                                       9
<PAGE>

     10. Severability. In case any provision in this Amendment shall be invalid,
illegal or unenforceable, such provision shall be severable from the remainder
of this Amendment and the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

     11. Loan Document. This Amendment is a Loan Document.

     12. Waiver of Jury Trial. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT AND ANY
OTHER LOAN DOCUMENT.

                            [SIGNATURE PAGES FOLLOW]

                                       10
<PAGE>

     IN WITNESS WHEREOF, the parties have entered into this Amendment as of the
date first above written.

                                        REVLON CONSUMER PRODUCTS CORPORATION

                                        By:    /s/ Robert K. Kretzman
                                               ---------------------------------
                                        Name:  Robert K. Kretzman
                                        Title: Executive Vice President, General
                                               Counsel & Chief Legal Officer

<PAGE>

                                        CITICORP USA, INC., as Term Loan
                                        Administrative Agent and Multi-Currency
                                        Administrative Agent

                                        By:    /s/ William Washburn
                                               ---------------------------------
                                        Name:  William Washburn
                                        Title: Director/Vice President

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