Document:

<PAGE>

                                                                    EXHIBIT 10.7

                          TRADEMARK SECURITY AGREEMENT

                  This TRADEMARK SECURITY AGREEMENT (this "Agreement"), dated as
of September 23, 2002 is made by IRON AGE CORPORATION, a Delaware corporation,
and FALCON SHOE MFG. CO., a Maine corporation (each a "Debtor" and collectively,
jointly and severally, the "Debtors"), in favor of FOOTHILL CAPITAL CORPORATION,
a California corporation, as the arranger and administrative agent for the
Lenders ("Secured Party").

                  RECITALS

                  A. Iron Age Holdings Corporation, a Delaware corporation, the
Debtors and the Lender Group have entered into that certain Loan and Security
Agreement, of even date herewith (as amended, restated, modified, renewed or
extended from time to time, the "Loan Agreement"), pursuant to which the Lender
Group has agreed to make certain financial accommodations to the Debtors, and
pursuant to which the Debtors have granted to Secured Party for the benefit of
the Lender Group security interests in (among other things) all or substantially
all of the general intangibles of the Debtors.

                  B. Pursuant to the Loan Agreement and as one of the conditions
precedent to the obligations of the Secured Party and the Lenders under the Loan
Agreement, each of the Debtors have agreed to execute and deliver this Agreement
to the Secured Party for filing with the PTO and with any other relevant
recording systems in any domestic jurisdiction, and as further evidence of and
to effectuate the Secured Party's existing security interests in the trademarks
and other general intangibles described herein.

                                   ASSIGNMENT

                  NOW, THEREFORE, for valuable consideration, the receipt and
adequacy of which are hereby acknowledged, each Debtor hereby agrees in favor of
the Secured Party as follows:

                  1. Definitions; Interpretation.

                           (a) Certain Defined Terms. As used in this Agreement,
the following terms shall have the following meanings:

                  "Debtor" and "Debtors" shall have the meaning ascribed to such
terms in the introductory paragraph of this Agreement.

                  "Event of Default" means any Event of Default under the Loan
Agreement.
<PAGE>
                  "Lender Group" means, individually and collectively, each of
the Lenders and Secured Party.

                  "Lenders" means, individually and collectively, each of the
financial institutions identified on the signature pages of the Loan Agreement,
and any other Person made a party thereto in accordance with the provisions of
Section 14 thereof (together with their respective successors and assigns).

                  "Proceeds" means whatever is receivable or received from or
upon the sale, lease, license, collection, use, exchange or other disposition,
whether voluntary or involuntary, of any Trademark Collateral, including
"proceeds" as defined in UCC Section 9-102(a)(64), all insurance proceeds, and
all proceeds of Proceeds. Proceeds shall include (i) any and all accounts,
chattel paper, instruments, general intangibles, cash and other proceeds,
payable to or for the account of any Debtor, from time to time in respect of any
of the Trademark Collateral, (ii) any and all proceeds of any insurance,
indemnity, warranty or guaranty payable to or for the account of any Debtor from
time to time with respect to any of the Trademark Collateral, (iii) any and all
claims and payments (in any form whatsoever) made or due and payable to any
Debtor from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Trademark
Collateral by any Person acting under color of governmental authority, and (iv)
any and all other amounts from time to time paid or payable under or in
connection with any of the Trademark Collateral or for or on account of any
damage or injury to or conversion of any Trademark Collateral by any Person.

                  "PTO" means the United States Patent and Trademark Office and
any successor thereto.

                  "Secured Obligations" shall mean, with respect to each Debtor,
all liabilities, obligations, or undertakings owing by such Debtor to the Lender
Group of any kind or description arising out of or outstanding under, advanced
or issued pursuant to, or evidenced by the Loan Agreement, any of the other Loan
Documents, or this Agreement, irrespective of whether for the payment of money,
whether direct or indirect, absolute or contingent, due or to become due,
voluntary or involuntary, whether now existing or hereafter arising, and
including all interest (including interest that accrues after the filing of a
case under the Bankruptcy Code) and any and all costs, fees (including attorneys
fees), and expenses which such Debtor is required to pay pursuant to any of the
foregoing, by law, or otherwise.

                  "Secured Party" shall have the meaning ascribed to such term
in the introductory paragraph of this Agreement.

                  "Trademark Collateral" has the meaning set forth in Section 2.

                  "Trademarks" has the meaning set forth in Section 2.

                  "UCC" means the Uniform Commercial Code as in effect from time
to time in the State of New York.

                  "United States" and "U.S." each mean the United States of
America.

                                      -2-
<PAGE>
                           (b) Terms Defined in UCC. Where applicable and except
as otherwise defined herein, terms used in this Agreement shall have the
meanings ascribed to them in the UCC.

                           (c) Interpretation. In this Agreement, except to the
extent the context otherwise requires:

                                    (i) Any reference to a Section or a Schedule
         is a reference to a section hereof, or a schedule hereto, respectively,
         and to a subsection or a clause is, unless otherwise stated, a
         reference to a subsection or a clause of the Section or subsection in
         which the reference appears.

                                    (ii) The words "hereof," "herein," "hereto,"
         "hereunder" and the like mean and refer to this Agreement as a whole
         and not merely to the specific Section, subsection, paragraph or clause
         in which the respective word appears.

                                    (iii) The meaning of defined terms shall be
         equally applicable to both the singular and plural forms of the terms
         defined.

                                    (iv) The words "including," "includes" and
         "include" shall be deemed to be followed by the words "without
         limitation."

                                    (v) References to agreements and other
         contractual instruments shall be deemed to include all subsequent
         amendments, restatements, supplements, refinancings, renewals,
         extensions, and other modifications thereto and thereof.

                                    (vi) References to statutes or regulations
         are to be construed as including all statutory and regulatory
         provisions consolidating, amending or replacing the statute or
         regulation referred to.

                                    (vii) Any captions and headings are for
         convenience of reference only and shall not affect the construction of
         this Agreement.

                                    (viii) Capitalized words not otherwise
         defined herein shall have the respective meanings assigned to them in
         the Loan Agreement.

                                    (ix) In the event of a direct conflict
         between the terms and provisions of this Agreement and the Loan
         Agreement, it is the intention of the parties hereto that both such
         documents shall be read together and construed, to the fullest extent
         possible, to be in concert with each other. In the event of any actual,
         irreconcilable conflict that cannot be resolved as aforesaid, the terms
         and provisions of the Loan Agreement shall control and govern;
         provided, however, that the inclusion herein of additional obligations
         on the part of any Debtor and supplemental rights and remedies in favor
         of the Secured Party for the benefit of the Lender Group (whether under
         New York law or applicable federal law), in each case in respect of the
         Trademark Collateral, shall not be deemed a conflict with the Loan
         Agreement.

                  2. Security Interest.

                                      -3-
<PAGE>
                           (a) Assignment and Grant of Security in respect of
the Secured Obligations. To secure the prompt payment and performance of the
Secured Obligations, each Debtor hereby grants, assigns, transfers and conveys
to the Secured Party for the benefit of the Lender Group a continuing, first
priority security interest in all of such Debtor's right, title and interest in
and to the following property, whether now existing or hereafter acquired or
arising and whether registered or unregistered (collectively, the "Trademark
Collateral"):

                                    (i) all common law, state and federal
         trademarks, service marks and trade names, corporate names, company
         names, business names, fictitious business names, trade styles, trade
         dress, logos, Internet domain names, other source or business
         identifiers, designs and general intangibles of like nature, now
         existing or hereafter adopted or acquired, together with and including
         all licenses therefor held by such Debtor, and all registrations and
         recordings thereof, and all applications filed or to be filed in
         connection therewith, including registrations and applications in the
         PTO, any State of the United States (but excluding each application to
         register any trademark, service mark, or other mark prior to the filing
         under applicable law of a verified and accepted Statement of Use (or
         the equivalent) for such trademark or service mark) and all extensions
         or renewals thereof, including without limitation any of the foregoing
         identified on Schedule A hereto and any and all variations thereof (as
         such schedule may be amended, modified or supplemented from time to
         time), and the right (but not the obligation) to register claims under
         any state or federal trademark law or regulation and to apply for,
         renew and extend any of the same, to sue or bring opposition or
         cancellation proceedings in the name of the applicable Debtor or in the
         name of the Secured Party or in the name of the Secured Party for past,
         present or future infringement or unconsented use thereof, and all
         rights arising therefrom throughout the world (collectively, the
         "Trademarks");

                                    (ii) all claims, causes of action and rights
         to sue for past, present or future infringement or unconsented use of
         any Trademarks and all rights arising therefrom and pertaining thereto;

                                    (iii) all general intangibles (as defined in
         the UCC) related to or arising out of any of the Trademarks and all the
         goodwill of the Debtors' business symbolized by the Trademarks or
         associated therewith; and

                                    (iv) all Proceeds of any and all of the
         foregoing.

                           (b) Continuing Security Interest. Each Debtor hereby
agrees that this Agreement shall create a continuing security interest in the
Trademark Collateral which shall remain in effect until terminated in accordance
with Section 18.

                           (c) Incorporation into Loan Agreement. This Agreement
shall be fully incorporated into the Loan Agreement and all understandings,
agreements and provisions contained in the Loan Agreement shall be fully
incorporated into this Agreement. Without limiting the foregoing, the Trademark
Collateral described in this Agreement shall constitute part of the Collateral
in the Loan Agreement.

                                      -4-
<PAGE>
                           (d) Licenses. Anything in the Loan Agreement or this
Agreement to the contrary notwithstanding, each Debtor may grant non-exclusive
licenses of the Trademark Collateral (subject to the security interest of the
Secured Party therein) in the ordinary course of business consistent with past
practice.

                  3. Further Assurances; Appointment of the Secured Party as
Attorney-in-Fact. Each Debtor at its expense shall execute and deliver, or cause
to be executed and delivered, to the Secured Party for the benefit of the Lender
Group any and all documents and instruments, in form and substance reasonably
satisfactory to the Secured Party, and take any and all action, which the
Secured Party, in the exercise of its Permitted Discretion, may request from
time to time, to perfect and continue the perfection or to maintain the priority
of, or provide notice of the security interest in, or maintain, preserve and
protect the Trademark Collateral held by the Secured Party for the benefit of
the Lender Group and to accomplish the purposes of this Agreement. Each Debtor
hereby irrevocably constitutes and appoints the Secured Party (and any of the
Secured Party's officers or employees or agents designated by the Secured Party)
as such Debtor's true and lawful attorney-in-fact with full power and authority
(i) if any Debtor refuses to execute and deliver, or fails timely to execute and
deliver, any of the documents it is requested to execute and deliver by the
Secured Party in accordance with the foregoing, the Secured Party shall have the
right, in the name of such Debtor, or in the name of the Secured Party or
otherwise, without notice to or assent by such Debtor, to sign the name of such
Debtor on all or any of such documents or instruments and perform all other acts
that the Secured Party in the exercise of its Permitted Discretion deems
necessary or advisable in order to perfect or continue the perfection of,
maintain the priority or enforceability of or provide notice of the security
interest in the Trademark Collateral held by the Secured Party for the benefit
of the Lender Group, and (ii) to execute any and all other documents and
instruments, and to perform any and all acts and things for and on behalf of
such Debtor, which the Secured Party, in the exercise of its Permitted
Discretion, may deem necessary or advisable to perfect or continue the
perfection of, maintain the priority or enforceability of, provide notice of the
security interest in the Trademark Collateral held by the Secured Party or
maintain, preserve and protect the Trademark Collateral and to accomplish the
purposes of this Agreement, including (A) after the occurrence and during the
continuance of any Event of Default, to defend, settle, adjust or institute any
action, suit or proceeding with respect to the Trademark Collateral, (B) after
the occurrence and during the continuance of any Event of Default, to assert or
retain any rights under any license agreement for any of the Trademark
Collateral, including any rights of such Debtor arising under Section 365(n) of
the Bankruptcy Code, and (C) after the occurrence and during the continuance of
any Event of Default, to execute any and all applications, documents, papers and
instruments for the Secured Party to use the Trademark Collateral, to grant or
issue any exclusive or non-exclusive license with respect to any Trademark
Collateral, and to assign, convey or otherwise transfer title in or dispose of
the Trademark Collateral. The power of attorney set forth in this Section 3,
being coupled with an interest, is irrevocable so long as this Agreement shall
not have terminated in accordance with Section 18.

                  4. Representations and Warranties. Each Debtor jointly and
severally represents and warrants to each member of the Lender Group, as
follows:

                           (a) No Other Trademarks. Schedule A sets forth a true
and correct list of all of the existing Trademarks that are registered, or for
which any application for registration

                                      -5-
<PAGE>
has been filed with the PTO or any corresponding or similar trademark office of
any other U.S. jurisdiction, and that are owned or held (whether pursuant to a
license or otherwise) and used by such Debtor.

                           (b) Trademarks Subsisting. Each of the Trademarks
listed on Schedule A is subsisting and has not been adjudged invalid or
unenforceable, in whole or in part, and, to the best of such Debtor's knowledge,
each of the Trademarks set forth on Schedule A is valid and enforceable.

                           (c) Ownership of Trademark Collateral; No Violation.
(i) Such Debtor has rights in and good and defensible title to its interests in
the existing Trademark Collateral, (ii) with respect to the Trademark Collateral
shown on Schedule A hereto as owned by it, such Debtor is the sole and exclusive
owner thereof, free and clear of any Liens and rights of others (other than
Permitted Liens), including licenses, registered user agreements and covenants
by such Debtor not to sue third persons, and (iii) with respect to any
Trademarks for which such Debtor is either a licensor or a licensee pursuant to
a license or licensing agreement regarding such Trademark, each such license or
licensing agreement is in full force and effect, such Debtor is not in default
of any of its obligations thereunder and, other than (A) the parties to such
licenses or licensing agreements, or (B) in the case of any non-exclusive
license or license agreement entered into by such Debtor or any such licensor
regarding such Trademark, the parties to any other such non-exclusive licenses
or license agreements entered into by such Debtor or any such licensor with any
other Person, no other Person has any rights in or to any of the Trademark
Collateral. To the best of each Debtor's knowledge, the past, present and
contemplated future use of the Trademark Collateral by such Debtor has not, does
not and will not infringe upon or violate any right, privilege or license
agreement of or with any other Person.

                           (d) No Infringement. To each Debtor's knowledge, (i)
no material infringement or unauthorized use presently is being made of any of
the Trademark Collateral by any Person, and (ii) the past, present, and
contemplated future use of the Trademark Collateral by such Debtor has not, does
not and will not infringe upon or violate any right, privilege, or license
agreement of or with any other Person.

                           (e) Powers. Each Debtor has the unqualified right,
power and authority to pledge and to grant to the Secured Party a security
interest in all of its Trademark Collateral pursuant to this Agreement, and to
execute, deliver and perform its obligations in accordance with the terms of
this Agreement, without the consent or approval of any other Person except as
already obtained.

                  5. Covenants. Each Debtor covenants that so long as this
Agreement shall be in effect, each such Debtor shall:

                           (a) Compliance with Law. Comply, in all material
respects, with all applicable statutory and regulatory requirements in
connection with any and all of the Trademark Collateral and give such notice of
trademark, prosecute such material claims, and do all other acts and take all
other measures which, in such Debtor's reasonable business judgment, may be
necessary or desirable to preserve, protect and maintain such Trademark
Collateral and all of

                                      -6-
<PAGE>
such Debtor's rights therein, including diligently prosecute any material
trademark application pending as of the date of this Agreement or thereafter;

                           (b) Compliance with Agreement. Comply with each of
the terms and provisions of this Agreement, the Loan Agreement, and the other
Loan Documents, and not enter into any agreement (for example, a license
agreement) which is inconsistent with the obligations of such Debtor under this
Agreement without the Secured Party's prior written consent; and

                           (c) Lien Protection. Not permit the inclusion in any
contract to which such Debtor becomes a party of any provision that could or
might impair or prevent the creation of security interests in favor of the
Secured Party, for the benefit of the Lender Group, in such Debtor's rights and
interest in the Trademark and the Trademark Collateral, and each such Debtor
will promptly give the Secured Party written notice of the occurrence of any
event that could reasonably be expected to have a material adverse effect on any
of the Trademark or the Trademark Collateral, including any petition under the
Bankruptcy Code filed by or against any licensor of any of the Trademarks for
which such Debtor is a licensee.

                  6. Future Rights. For so long as any of the Secured
Obligations shall remain outstanding, or, if earlier, until the Secured Party
shall have released or terminated, in whole but not in part, its interest in the
Trademark Collateral, if and when any Debtor shall obtain rights to any new
Trademarks, or any reissue, renewal or extension of any Trademarks, the
provisions of Section 2 shall automatically apply thereto and the applicable
Debtor shall give to the Secured Party prompt notice thereof. Each Debtor shall
do all things reasonably deemed necessary or advisable by the Secured Party in
the exercise of its Permitted Discretion to ensure the validity, perfection,
priority and enforceability of the security interests of the Secured Party in
such future acquired Trademark Collateral. If any Debtor refuses to execute and
deliver, or fails timely to execute and deliver, any of the documents it is
requested to execute and deliver by the Secured Party in connection herewith,
each Debtor hereby authorizes the Secured Party to modify, amend or supplement
the Schedules hereto and to re-execute this Agreement from time to time on such
Debtor's behalf and as its attorney-in-fact to include any future Trademarks
which are or become Trademark Collateral and to cause such re-executed Agreement
or such modified, amended or supplemented Schedules to be filed with the PTO.

                  7. Duties of the Secured Party. Notwithstanding any provision
contained in this Agreement, neither the Secured Party nor any other member of
the Lender Group shall have a duty to exercise any of the rights, privileges or
powers afforded to it, nor be responsible to the Debtors or any other Person for
any failure to do so or delay in doing so. Except for the accounting for moneys
actually received by the Secured Party or any other member of the Lender Group
hereunder or in connection herewith, neither the Secured Party nor any other
member of the Lender Group shall have a duty or liability to exercise or
preserve any rights, privileges or powers pertaining to the Trademark
Collateral.

                  8. Events of Default. The occurrence of any "Event of Default"
under the Loan Agreement shall constitute an Event of Default hereunder.

                  9. Remedies. From and after the occurrence and during the
continuation of an Event of Default, the Secured Party shall have all rights and
remedies available to it under the

                                      -7-
<PAGE>
Loan Agreement, any other Loan Documents and applicable law (which rights and
remedies are cumulative) with respect to the security interests in any of the
Trademark Collateral or any other Collateral. Each Debtor hereby agrees that
such rights and remedies include the right of the Secured Party as a secured
party to sell or otherwise dispose of the Trademark Collateral after default,
pursuant to UCC Section 9-610. Each Debtor hereby agrees that the Secured Party
shall at all times have such royalty-free licenses, to the extent permitted by
law and the Loan Documents, for any Trademark Collateral that is reasonably
necessary to permit the exercise of any of the Secured Party's rights or
remedies upon or after the occurrence of (and during the continuance of) an
Event of Default with respect to (among other things) any tangible asset of such
Debtor in which the Secured Party has a security interest, including the Secured
Party's rights to sell inventory, tooling or packaging which is acquired by such
Debtor (or its successor, assignee or trustee in bankruptcy). In addition to and
without limiting any of the foregoing, upon the occurrence and during the
continuance of an Event of Default, the Secured Party shall have the right but
shall in no way be obligated to bring suit, or to take such other action as the
Secured Party deems necessary or advisable, in the name of any Debtor or the
Secured Party, to enforce or protect any of the Trademark Collateral, in which
event any such Debtor shall, at the request of the Secured Party, do any and all
lawful acts and execute any and all documents required by the Secured Party in
aid of such enforcement. To the extent that the Secured Party shall elect not to
bring suit to enforce such Trademark Collateral after the occurrence and during
the continuation of an Event of Default, the applicable Debtor agrees to use all
reasonable measures and its diligent efforts, whether by action, suit,
proceeding or otherwise, to prevent the infringement, misappropriation or
violations thereof by others and for that purpose agrees diligently to maintain
any action, suit or proceeding against any Person necessary to prevent such
infringement, misappropriation or violation.

                  10. Binding Effect. This Agreement shall be binding upon,
inure to the benefit of and be enforceable by each of the Debtors and the
Secured Party and their respective successors and assigns.

                  11. Notices. All notices and other communications hereunder
shall be in writing and shall be mailed, sent or delivered in accordance with
the Loan Agreement.

                  12. Governing Law. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York,
except to the extent the validity or perfection of the security interests
hereunder in respect of any Trademark Collateral are governed by federal law, in
which case such choice of New York law shall not be deemed to deprive the
Secured Party of such rights and remedies as may be available under federal law.

                  13. Entire Agreement; Amendment. This Agreement and the Loan
Agreement, together with the Schedules hereto and thereto, contain the entire
agreement of the parties with respect to the subject matter hereof and supersede
all prior drafts and communications relating to such subject matter. Neither
this Agreement nor any provision hereof may be modified, amended or waived
except by the written agreement of the parties as provided in the Loan
Agreement. Notwithstanding the foregoing, the Secured Party may reexecute this
Agreement or modify, amend or supplement the Schedules hereto as provided in
Section 6 hereof.

                                      -8-
<PAGE>
                  14. Severability. If one or more provisions contained in this
Agreement shall be invalid, illegal or unenforceable in any respect in any
jurisdiction or with respect to any party, such invalidity, illegality or
unenforceability in such jurisdiction or with respect to such party shall, to
the fullest extent permitted by applicable law, not invalidate or render illegal
or unenforceable any such provision in any other jurisdiction or with respect to
any other party, or any other provisions of this Agreement.

                  15. Counterparts. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute but one and the same agreement.

                  16. Loan Agreement. Each Debtor acknowledges that the rights
and remedies of the Secured Party held for the benefit of the Lender Group with
respect to the security interest in the Trademark Collateral granted hereby are
more fully set forth in the Loan Agreement and all such rights and remedies are
cumulative.

                  17. No Inconsistent Requirements. Each Debtor acknowledges
that this Agreement and the other Loan Documents may contain covenants and other
terms and provisions variously stated regarding the same or similar matters, and
each Debtor agrees that all such covenants, terms and provisions are cumulative
and all shall be performed and satisfied in accordance with their respective
terms.

                  18. Termination. Upon the payment and performance in full in
cash of the Secured Obligations, including the cash collateralization,
expiration, or cancellation of all Secured Obligations, if any, consisting of
letters of credit, and the full and final termination of any commitment to
extend any financial accommodations under the Loan Agreement, this Agreement
shall terminate, and the Secured Party shall execute and deliver such documents
and instruments and take such further action reasonably requested by the Debtors
and at the Debtors' expense, as shall be reasonably necessary to evidence
termination of the security interests granted by the Debtors to the Secured
Party for the benefit of the Lender Group.

                            [Signature page follows]

                                      -9-
<PAGE>
                  IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement, as of the date first above written.

                                          IRON AGE CORPORATION
                                          a Delaware corporation

                                          By: Bart R. Huchel
                                          Title: Authorized Signatory

                                          FALCON SHOE MFG. CO.,
                                          a Maine corporation

                                          By: Bart R. Huchel
                                          Title: Authorized Signatory

                                          FOOTHILL CAPITAL CORPORATION,
                                          a California corporation, as Agent

                                          By: Erik R. Sawyer
                                          Title: Authorized Signatory
<PAGE>
STATE OF Pennsylvania            )
                                 ) ss
COUNTY OF Allegheny              )

                  On September 23, 2002, before me, Rose Anna Alloway, Notary
Public, personally appeared Bart R. Huchel, personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

                  WITNESS my hand and official seal.

                                            Rose Anna Alloway
                                            -----------------
                                            Signature

[SEAL]

STATE OF                         )
                                 ) ss
COUNTY OF                        )

                  On _________ __, ____, before me, ____________________, Notary
Public, personally appeared ________________________, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the
entity(ies) upon behalf of which the person(s) acted, executed the instrument.

                  WITNESS my hand and official seal.

                                            __________________________________
                                            Signature

[SEAL]
<PAGE>
                                   SCHEDULE A
                       to the Trademark Security Agreement

                       Trademarks of Iron Age Corporation

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                                            Registration/        Registration/
   Type      Jurisdiction       Mark       Application Date      Application No.
--------------------------------------------------------------------------------
<S>          <C>                <C>        <C>                   <C>
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
</TABLE>

                  Trademarks of Falcon Shoe Mfg. Co.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                                            Registration/        Registration/
   Type      Jurisdiction       Mark       Application Date      Application No.
--------------------------------------------------------------------------------
<S>          <C>                <C>        <C>                   <C>
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
</TABLE>

                                      A-1<PAGE>

                                                                    EXHIBIT 10.8

                                    GUARANTEE
                               ("this Guarantee")

                  THIS GUARANTEE is dated as of September 23, 2002, and made by
Iron Age Canada Ltd. (the "CANADIAN SUBSIDIARY") in favour of Foothill Capital
Corporation, a California corporation ("FOOTHILL") as agent on behalf of the
Lender Group (in such capacity, the "AGENT").

                  WHEREAS:

A. Pursuant to the terms of a loan and security agreement as amended, restated,
supplemented or otherwise modified from time to time (the "LOAN AGREEMENT")
dated as of September 23, 2002 by and between Foothill, the lenders signatory
thereto (the "LENDERS"), Iron Age Holdings Corporation (the "PARENT") and its
wholly-owned subsidiaries, Iron Age Corporation ("IRON AGE") and Falcon Shoe
Mfg. Co. ("FALCON" and together with Iron Age, each a "BORROWER" and
collectively the "BORROWERS"). Foothill has agreed to act as a manager and a
administrative agent for the Lenders to the Borrowers;

B. The Canadian Subsidiary is a corporation incorporated under the laws of
Canada pursuant to the Canada Business Corporations Act with its chief executive
office located at 560 Bryne Drive, Unit 3, Barrie, Ontario, L4N 9P6. The
Canadian Subsidiary is a subsidiary of Iron Age and is a part of the Parent's
corporate and operational group which includes the Borrowers (the "IRON AGE
GROUP") and which receives services and support from the Parent. By virtue of it
being part of the Iron Age Group, the Canadian Subsidiary derives economic
benefit from the Advances to the Borrowers;

C. As a condition of and as security for the Advances, the Agent and the Lenders
require the Canadian Subsidiary to guarantee repayment of the Advances, interest
thereon calculated in accordance with the Loan Agreement and all other
Obligations (collectively the "DEBT") and to guarantee the observance, payment
and performance by the Borrowers of all the obligations, payments and otherwise
to the Agent, the Lenders and the Lender Group under the Loan Agreement, and the
Loan Documents (together with the Debt, collectively the "GUARANTEED
OBLIGATIONS");

D. The Parent is also a guarantor of the Guaranteed Obligations;

E. All capitalized terms used but not defined herein have the meaning ascribed
to such terms in the Loan Agreement.

                  FOR VALUABLE CONSIDERATION, the receipt and sufficiency of
which are hereby acknowledged, the Canadian Subsidiary hereby agrees with the
Agent and the Lenders as follows:

1. The Canadian Subsidiary irrevocably, absolutely and unconditionally
guarantees to the Agent and the Lenders the due payment by the Borrowers to the
Agent, the Lenders and
<PAGE>
                                      -2-

the Lender Group of the Guaranteed Obligations and the due performance by the
Borrowers of the Guaranteed Obligations.

2. This Guarantee is a continuing guarantee and is not limited by amount, time
or otherwise.

3. The Canadian Subsidiary hereby acknowledges that certain of the rights of
interest applicable as to the Guaranteed Obligations may be computed on the
basis of a year of 360 days or 365 days, as the case may be, and paid for the
actual number of days elapsed. For the purposes of the Interest Act (Canada),
whenever any interest is calculated using a rate based on a year of 360 days or
365 days, as the case may be, such rate determined pursuant to such calculation,
when expressed as an annual rate is equivalent to:

         (a)      the applicable rate based on a year of 360 days or 365 days,
                  as the case may be,

         (b)      multiplied by the actual number of days in a calendar year in
                  which the period for such interest is payable (or compounded),
                  and

         (c)      divided by 360 days or 365 days, as the case may be.

4. If any provision of this Guarantee would oblige the Canadian Subsidiary to
make any payment of interest or other amount payable to the Agent or any Lender
in an amount or calculated at a rate which would be prohibited by law or would
result in a receipt by the Agent or that Lender of "interest" at a "criminal
rate" (as such terms are construed under the Criminal Code (Canada)), then,
notwithstanding such provision, such amount or rate shall be deemed to have been
adjusted with retroactive effect to the maximum amount or rate of interest, as
the case may be, as would not be so prohibited by law or so result in a receipt
by the Agent or that Lender of "interest" at a "criminal rate", such adjustment
to be effected, to the extent necessary (but only to the extent necessary), as
follows:

                  (i)      first, by reducing the amount or rate of interest
                           required to be paid to the Agent or the affected
                           Lender; and

                  (ii)     thereafter, by reducing any fees, commissions,
                           premiums and other amounts required to be paid to the
                           Agent or the affected Lender which would constitute
                           interest for purposes of Section 347 of the Criminal
                           Code (Canada).

5. The liability of the Canadian Subsidiary hereunder shall bear interest from
the date written demand for payment is deemed to have been given by the Agent to
the Canadian Subsidiary at the Prime Interest Rate (defined below) plus 3% per
annum (the "INTEREST RATE"). "PRIME INTEREST RATE" as used in this Guarantee
shall mean the annual rate of interest announced from time to time by Canadian
Imperial Bank of Commerce as a reference rate then in effect for determining
interest rates on Canadian dollar commercial loans in Canada.

6. The Canadian Subsidiary will provide and grant forthwith to the Agent the
security described in the Loan Agreement, including, without limitation, a
general security
<PAGE>
                                      -3-

agreement as security for the obligations of the Canadian Subsidiary hereunder
to the Agent and the Lenders.

7. Without releasing, discharging, limiting or otherwise affecting in whole or
in part the obligations and liabilities of the Canadian Subsidiary hereunder and
without the consent of or notice to the Canadian Subsidiary, the Agent may as it
sees fit and regardless of whether the Canadian Subsidiary's risk is increased:

         (a)      grant time, renewals, extensions, indulgences, releases and
                  discharges to a Borrower or any other person or persons now or
                  hereafter liable to the Agent and the Lenders in respect of
                  the Guaranteed Obligations,

         (b)      take or refrain from taking security or collateral from a
                  Borrower or any other person or persons or from perfecting
                  such security or collateral in connection with the Guaranteed
                  Obligations,

         (c)      give up, modify, exchange, renew, release, discharge,
                  compromise, realize, enforce or otherwise deal with or do any
                  act or thing in respect of (with or without consideration) any
                  and all collateral, mortgages or other security given by a
                  Borrower or any other person or persons with respect to the
                  Guaranteed Obligations,

         (d)      accept compromises, settlements or arrangements from any of
                  the Borrowers or any other person or persons,

         (e)      exercise any right or remedy which it may have against a
                  Borrower or any other person or persons or with respect to any
                  security for the Guaranteed Obligations, including judicial
                  and non-judicial foreclosure,

         (f)      apply money at any time received from a Borrower or any person
                  or persons or from security upon such part of the Guaranteed
                  Obligations as the Agent may see fit or change any such
                  application in whole or in part from time to time as the Agent
                  may see fit,

         (g)      give credit or make advances to any Borrower, any Guarantor or
                  any other person, and discontinue, release, increase or
                  otherwise vary such credit, or

         (h)      otherwise deal with, or waive or modify its right to deal with
                  any of the Borrowers and any other person or persons and
                  securities as the Agent may see fit, and in no case shall the
                  Agent be responsible for nor the Canadian Subsidiary released
                  from its obligations hereunder by any neglect or omission of
                  the Agent with respect to any of the foregoing.

8. The Canadian Subsidiary renounces all benefits of discussion and division.

9. This Guarantee will not be considered as wholly or partially satisfied by the
payment or liquidation at any time or times of any sum or sums of money for the
time being due or remaining unpaid to the Agent, the Lenders and the Lender
Group, and all dividends,
<PAGE>
                                      -4-

compositions, proceeds of security valued and payments received by the Agent and
the Lenders from the Borrowers or from others or from estates shall be regarded
for all purposes as payments in gross without any right on the part of the
Canadian Subsidiary to claim in reduction of the liability under this Guarantee
the benefit of any such dividends, compositions, proceeds or payments or any
securities held by the Agent and the Lenders or proceeds thereof. Nothing but
the performance and payment in full of the Guaranteed Obligations shall release
the Canadian Subsidiary of its liability under the Guarantee.

10. All monies, advances, renewals and credits in fact borrowed or obtained by
the Borrowers from the Agent and the Lenders under the Loan Agreement or any
other Loan Document or under any security held from time to time by the Agent
for the Guaranteed Obligations will be deemed to form part of the Guaranteed
Obligations, notwithstanding any lack or limitation of status or of power,
incapacity or disability of any of the Borrowers or of the directors, partners
or agents thereof, or that a Borrower may not be a legal or suable entity, or
any irregularity, defect or informality in the borrowing or obtaining of such
money, advances, renewals or credits, the whole whether known to the Agent or
any Lender or not, and any sum which may not be recoverable from the Canadian
Subsidiary as guarantor shall be recoverable from the Canadian Subsidiary as
sole or principal debtor in respect thereof and vice versa and shall be paid to
the Agent as aforesaid and the Canadian Subsidiary shall indemnify the Agent in
respect of the due payment of such amount.

11. This Guarantee is in addition to and not in substitution for any other
guarantee by any other person(s), at any time held by the Agent or any Lender,
and any present or future obligation to the Agent or any Lender incurred or
arising otherwise than under a guarantee provided by the Canadian Subsidiary or
of any other obligant, whether bound with or apart from the Borrowers.

12. The Canadian Subsidiary hereby expressly authorizes and consents to the
Agent, from time to time, without giving notice to the Canadian Subsidiary, and
without in any way discharging, limiting or lessening the liability of the
Canadian Subsidiary under this Guarantee, omitting or refraining from proving
its full claim or any claim or omitting or refraining from valuing any security
held by it, in the event of the bankruptcy, liquidation, winding-up or other
distribution of assets of any of Borrowers or of any surety or guarantor for the
Guaranteed Obligations or omitting or refraining from contesting or challenging
any disposition, conveyance or transfer of assets, if a Borrower or any surety
or guarantor for the Guaranteed Obligations shall make a bulk sale of its assets
within the bulk transfer provisions of any applicable legislation or any
composition with creditors or scheme of arrangement.

13. The Canadian Subsidiary will be bound by any account settled between the
Agent and the Borrowers, and if no such account has been so settled any account
stated by the Agent will be accepted by the Canadian Subsidiary as prima facie
evidence of the amount which at the date of the account so stated is due by the
Borrowers to the Agent and the Lenders or remains unpaid by Borrowers to the
Agent and the Lenders, in the absence of manifest error.

14. The Canadian Subsidiary will not at any time claim to be subrogated in any
manner to the rights and position of the Agent and will not claim the benefit of
any security at any time held by the Agent until the Agent has received payment
in full of all monies, interest
<PAGE>
                                      -5-

and other amounts due to the Agent and the Lenders under or relating to the
Guaranteed Obligations.

15. The Agent will not be bound to exhaust its recourse against the Borrowers or
any other person or persons or the security or other securities it may hold, or
any of them, before requiring payment by the Canadian Subsidiary, and the Agent
may enforce the various remedies available to it and may realize upon the
various securities or any part of such securities in such order as the Agent may
determine.

16. No suit based upon this Guarantee shall be instituted until demand for
payment has been made, and demand for payment shall be deemed to have been
effectively made upon the Canadian Subsidiary by delivery of written demand to
the Canadian Subsidiary at the address of the Canadian Subsidiary last known to
the Agent. Moreover, when demand for payment has been made, the Canadian
Subsidiary shall also be liable to the Agent and the Lenders for all reasonable
legal fees and disbursements (on a solicitor and his own client basis) incurred
by or on behalf of the Agent and the Lenders instituted on the basis of this
Guarantee.

17. This Guarantee shall not be discharged, limited or otherwise affected by
anything done, suffered or permitted by the Agent or any Lender in connection
with the Borrowers, the Guaranteed Obligations or any security held by or
granted to the Agent to secure payment of the Guaranteed Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations and
liabilities of the Canadian Subsidiary hereunder shall not be released, limited
or otherwise affected by:

         (a)      the insolvency or bankruptcy or ceasing to exist of a Borrower
                  or any other person or persons,

         (b)      the appointment of a receiver for the assets of a Borrower or
                  any other person or persons,

         (c)      any extension, other indulgence, renewal, settlement,
                  discharge, compromise, waiver, subordination or release in
                  respect of any Guaranteed Obligations, security, person or
                  otherwise,

         (d)      any modification or amendment of or supplement to the
                  Guaranteed Obligations, including any increase or decrease in
                  the principal, the rates of interest or other amounts payable
                  thereunder,

         (e)      any change in the name of a Borrower or in the reorganization,
                  merger or amalgamation of a Borrower,

         (f)      the acquisition of a Borrower's business by any person or a
                  change in control of a Borrower,

         (g)      any change whatsoever in the objects, capital structure,
                  constitution or constating documents of a Borrower,
<PAGE>
                                      -6-

         (h)      any defect in, omission from, failure to file or register or
                  defective filing or registration of any instrument under which
                  the Agent has taken any security or collateral for payment of
                  or performance or observance of any of the Guaranteed
                  Obligations or of any other person who is or may become liable
                  in respect of the Guaranteed Obligations, or

         (i)      any other circumstance which might otherwise constitute a
                  legal or equitable defence available to, or a complete or
                  partial discharge of, the Borrowers in respect of the
                  Guaranteed Obligations, or both,

but shall, notwithstanding the happening of any such event before or after the
execution of this Guarantee, continue to apply to the Guaranteed Obligations.

18. This Guarantee will be operative and binding upon the Canadian Subsidiary,
and possession of this instrument by the Agent or its successors or assigns will
be conclusive evidence against the Canadian Subsidiary that this Guarantee was
not delivered in escrow or pursuant to any agreement that it should not be
effective until any conditions precedent or subsequent had been complied with.

19. The Canadian Subsidiary hereby waives notice of its acceptance of this
Guarantee, notice of transactions or obligations contracted or incurred by the
Borrowers, notice of default of the Borrowers and demand for payment upon the
Borrowers and the Canadian Subsidiary (except as required by Section 16 of this
Guarantee).

20. Taxes and Other Taxes

         (a)      Any and all payments to the Agent and the Lenders shall be
                  made free and clear of and without deduction or withholding
                  for any and all present or future taxes, levies, imposts,
                  deductions, charges or withholdings, and liabilities with
                  respect thereto (as such taxes, levies, imposts, deductions,
                  charges, withholdings and liabilities being hereinafter
                  referred to as "TAXES") imposed by the government of Canada
                  (or any political subdivision or taxing authority thereof or
                  therein), unless such Taxes are required by law or the
                  administration thereof to be deducted or withheld. If the
                  Canadian Subsidiary shall be required by law or the
                  administration thereof to deduct or withhold any such Taxes
                  from or in respect of any amount payable hereunder, then:

                  (i)      the amount payable shall be increased as may be
                           necessary so that after making all required
                           deductions or withholdings (including deductions or
                           withholdings applicable to additional amounts paid
                           under this paragraph), the Agent and the Lenders
                           shall receive an amount equal to the sum they would
                           have received if no such deduction or withholding had
                           been made, and

                  (ii)     the Canadian Subsidiary forthwith shall pay the full
                           amount deducted or withheld to the relevant taxation
                           or other authority in accordance with applicable law.
<PAGE>
                                      -7-

         (b)      The Canadian Subsidiary agrees to pay forthwith any present or
                  future stamp or documentary taxes or any other excise or
                  property taxes, charges or similar levies (all such taxes,
                  charges and levies being herein referred to as "OTHER TAXES")
                  imposed by the government of Canada (or any political
                  subdivision or taxing authority thereof or therein) which
                  arise from any payment made by the Canadian Subsidiary
                  hereunder or from the execution, delivery or registration of,
                  or otherwise with respect to this Guarantee.

         (c)      The Canadian Subsidiary agrees to indemnify the Agent and the
                  Lenders for the full amount of Taxes or Other Taxes not
                  deducted or withheld and paid by the Canadian Subsidiary in
                  accordance with subparagraph 20(a) or (b) hereof to the
                  relevant taxation or other authority and any Taxes or Other
                  Taxes imposed by any jurisdiction on the amounts payable by
                  the Canadian Subsidiary under this paragraph 20 paid by the
                  Agent or any Lender and any liability (including penalties,
                  interest and expenses) arising therefrom or with respect
                  thereto, whether or not any such Taxes or Other Taxes were
                  correctly or legally asserted. Payment under this
                  indemnification shall be made within 15 days from the date the
                  Agent or any Lender makes written demand therefor. A
                  certificate as to the amount of such Taxes or Other Taxes and
                  evidence of payment thereof submitted to the Canadian
                  Subsidiary by the Agent or any Lender shall be prima facie
                  evidence of the amount due from the Canadian Subsidiary to
                  such Person.

         (d)      The Canadian Subsidiary shall, upon the request of the Agent,
                  furnish to the Agent the original or a certified copy of a
                  receipt evidencing any payment of Taxes or Other Taxes made by
                  the Canadian Subsidiary as soon as such receipt becomes
                  available, together with a certificate of an officer of the
                  Canadian Subsidiary, which certificate indicates the amount of
                  Taxes or Other Taxes, as the case may be, withheld by the
                  Canadian Subsidiary in respect of payments made hereunder.

         (e)      Without prejudice to the survival of any other agreement or
                  obligation of the Canadian Subsidiary hereunder, the
                  obligations of the Canadian Subsidiary under this paragraph 20
                  shall survive the termination of this Guarantee and the
                  payment of the Guaranteed Obligations.

21. This Guarantee covers all agreements between the parties hereto concerning
the subject matter hereof, and none of the parties shall be bound by any
representation or promise made by any person relative thereto which is not
expressly embodied herein.

22. This Guarantee is governed by and shall be construed in accordance with the
laws of Ontario and the laws of Canada applicable therein, and the Canadian
Subsidiary attorns to the non-exclusive jurisdiction of the courts of Ontario in
respect of all disputes which may arise under this Guarantee, and irrevocably
agrees that such actions and proceedings may be heard and determined in such
courts, agrees to be bound by any judgement thereof and irrevocably waives, to
the fullest extent possible, the defence of forum non conveniens, provided,
however, that any party may serve legal process in any manner permitted by law
and that nothing herein shall limit
<PAGE>
                                      -8-

any party's right to bring proceedings against the other party or the property
or assets of such party in the courts of any other jurisdiction.

23. The Canadian Subsidiary hereby acknowledges the financial condition of each
of the Borrowers and for so long as any part of the Guaranteed Obligations or
any related amounts due, owing or accrued to the Agent and the Lenders remains
unpaid or outstanding, the Canadian Subsidiary assumes all responsibility for
being and keeping itself informed of the financial condition of each of the
Borrowers and of all circumstances bearing upon the nature, scope and extent of
the risk which the Canadian Subsidiary assumes and incurs under this Guarantee.

24. The Canadian Subsidiary represents and warrants to the Agent and the
Lenders, and acknowledges that they are relying upon such representations and
warranties, that:

         (a)      the Canadian Subsidiary has full power and capacity to enter
                  into this Guarantee and to carry out the obligations
                  contemplated herein,

         (b)      this Guarantee has been approved by all necessary corporate
                  action on the part of the Canadian Subsidiary, and, when
                  executed and delivered, will constitute a legal, valid and
                  binding obligation of the Canadian Subsidiary, enforceable by
                  the Agent in accordance with the terms of this Guarantee,
                  subject to applicable bankruptcy, insolvency and other laws
                  affecting the enforcement of creditor rights generally,

         (c)      the Notice, Certificate of Officer, Directors Resolution and
                  Shareholders Resolutions of the Canadian Subsidiary in
                  connection with the Guarantee have been properly executed in
                  accordance with the constating documents of the Canadian
                  Subsidiary,

         (d)      the execution of this Guarantee will not contravene any
                  material provision of any material law, regulation, order or
                  permit applicable to the Canadian Subsidiary, or result in a
                  breach of or constitute a default under or require any consent
                  under any material agreement or instrument to which the
                  Canadian Subsidiary is a party or by which the Canadian
                  Subsidiary is bound,

         (e)      Iron Age is the registered holder of all of the issued and
                  outstanding shares of the Canadian Subsidiary,

         (f)      the Canadian Subsidiary is duly licensed and registered to
                  carry on business in the jurisdictions in which it carries on
                  business,

         (g)      the Canadian Subsidiary is not an insolvent person (as defined
                  in the Bankruptcy and Insolvency Act of Canada) at the time of
                  giving this Guarantee,

         (h)      the giving of this Guarantee is not being made with the intent
                  to hinder, delay or defraud either present or future creditors
                  of the Canadian Subsidiary, and
<PAGE>
                                      -9-

         (i)      the chief executive office (within the meaning prescribed in
                  the Personal Property Security Act (Ontario)) of the Canadian
                  Subsidiary is 560 Bryne Drive, Unit 3, Barrie, Ontario, L4N
                  9P6.

25. The Agent may assign its rights under this Guarantee without notice to the
Canadian Subsidiary, provided that the assignee has also obtained the rights and
obligations of the Agent under the Loan Agreement.

26. This Guarantee enures to the benefit of the Agent and its respective
successors and assigns and is binding on the Canadian Subsidiary and its
respective successors and assigns.

27. This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and
delivered, shall be deemed to be an original, and all of which, when taken
together, shall constitute but one and the same Agreement. Delivery of an
executed counterpart of this Agreement by facsimile transmission shall be
equally as effective as delivery of an original executed counterpart of this
Agreement. Any party delivering an executed counterpart of this Agreement by
facsimile transmission also shall deliver an original executed counterpart of
this Agreement but the failure to deliver an original executed counterpart shall
not affect the validity, enforceability, and binding effect of this Agreement.

28. In the event that the Agent obtains any judgement in Canadian dollars in
respect of any liability of the Canadian Subsidiary in U.S. dollars, the Agent
and the Canadian Subsidiary agree that the rate of exchange to be used to
determine the amount of the judgement shall be the rate of exchange quoted by
the bankers of the Agent as the rate at which the Agent could purchase U.S.
dollars with Canadian dollars at noon on the banking day preceding the date on
which the judgement is rendered. If the amount of U.S. dollars purchased by the
Agent is less than the amount of U.S. dollars originally due to it, the Canadian
Subsidiary agrees, as a separate obligation, to indemnify the Agent and the
Lenders against such loss, and if the amount so purchased exceeds the sum
originally due to the Agent and the Lenders, the Agent agrees to promptly remit
such excess to the Canadian Subsidiary.

29. If any provision herein is determined to be void, voidable or unenforceable,
in whole or in part, such determination shall not affect or impair or be deemed
to affect or impair the validity of any other provision hereof and all the
provisions hereof are hereby declared to be separate, severable and distinct.

30. The Agent's rights or remedies hereunder shall not be exhausted by the
exercise of any such rights or remedies or by any action or by any number of
successive actions against the Canadian Subsidiary in respect of the Canadian
Subsidiary's obligations hereunder.

31. Upon the bankruptcy, liquidation, winding-up or other distribution of assets
of any of the Borrowers or any surety or guarantor for the Guaranteed
Obligations, or in the event that any of the Borrowers or any surety or
guarantor for the Guaranteed Obligations shall make a bulk sale of its assets
within the bulk transfer provisions of any applicable legislation or any
composition with creditors or scheme of arrangement, the Agent shall have the
right to prove and rank for the full amount of the Guaranteed Obligations,
including in its claim all sums paid by
<PAGE>
                                      -10-

the Canadian Subsidiary to the Agent and the Lenders under this Guarantee, and
to receive all dividends or other payments in respect of such claim (and in the
case of any bulk sales, the Agent shall have the right to challenge any such
sales), until all of the Guaranteed Obligations has been paid in full, and the
Canadian Subsidiary hereby assigns and transfers to the Agent until such time as
all of the Guaranteed Obligations has been paid in full all of its rights to
prove and rank for such sums paid by the Canadian Subsidiary to the Agent and
the Lenders and to receive the full amount of all dividends and payments in
respect thereto.

32. The Canadian Subsidiary shall continue to be liable, up to the limit of the
liability under this Guarantee, less any payments made by the Canadian
Subsidiary to the Agent and the Lenders, for any balance which may be owing to
the Agent and the Lenders by the Borrowers after payment of such dividends or
other payments to the Agent and the Lenders. In the event of the valuation by
the Agent of any of its security and/or retention thereof by the Agent, such
valuation and/or retention shall not, as between the Agent and the Canadian
Subsidiary, be considered as payment or satisfaction or reduction of the
Guaranteed Obligations or any part thereof.

33. The Canadian Subsidiary will not engage in any fundamental corporate change
including, without limitation, any amalgamation, continuation, reorganization,
arrangement, reduction in capital, liquidation, dissolution or winding-up,
except as permitted under the Loan Agreement.

34. No failure or delay on the part of the Agent to exercise any right provided
for in or contemplated by this Guarantee shall operate as a waiver thereof
unless made in writing and signed by the Agent and, in that event, such waiver
shall operate only as a waiver of the right expressly referred to therein.

35. This Guarantee may not be amended, altered or qualified except by a
memorandum in writing signed by all of the parties hereto and any amendment,
alteration or qualification hereof shall be null and void and shall not be
binding upon any party who has not signed such memorandum.

36. The Canadian Subsidiary shall and will, from time to time and at all times
hereafter upon every reasonable written request so to do, cause such meetings to
be held, resolutions passed and by-laws enacted, exercise its vote and
influence, make, do, execute and deliver, or cause to be made, done, executed
and delivered, all such further papers, acts, deeds, assurances and things as
may be necessary or desirable in the opinion of the Agent or its counsel, acting
reasonably, for implementing and carrying out more effectually the true intent
and meaning of this Guarantee.

37. Time shall be strictly of the essence of this Guarantee and of every part
thereof and no extension or variation of this Guarantee shall operate as a
waiver of this provision.

38. The Canadian Subsidiary hereby acknowledges receipt of a fully signed copy
of this Guarantee.
<PAGE>
                                      -11-

39. The parties acknowledge that they have required that this Agreement and all
related documents be prepared in English. Les parties reconnaissent avoir exige
que la presente convention et tons les documents connexes soient rediges en
anglais.

                  IN WITNESS WHEREOF the Canadian Subsidiary has executed, and
delivered this Guarantee as of the date given above.

IRON AGE CANADA LTD.                )
by its authorized signatories:      )
                                    )
Bart R. Huchel___________________   )
Authorized Signatory                )
                                    )
William J. Mills_________________   )
Authorized Signatory                )

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]