Document:

exv4w4

Exhibit 4.4

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of the 26th
day of August, 2010, by and among Bakers Footwear Group, Inc., a Missouri corporation (the
“Company”), and Steven Madden, Ltd., a Delaware corporation (the “Securityholder”).

W I T N E S S E T H:

     WHEREAS, pursuant to that certain Debenture and Stock Purchase Agreement dated as of August
26, 2010 (the “Purchase Agreement”), by and between the Securityholder and the Company, the
Securityholder has purchased 1,844,860 shares of common stock of the Company, par value $0.0001 per
share (the “Shares”).

     WHEREAS, as a condition to closing the transactions contemplated by the Purchase Agreement,
the parties agreed to execute and deliver this Agreement setting forth certain rights of the
Securityholder with respect to registration under the Securities Act of 1933, as amended, of the
Shares issued to the Securityholder.

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

     1. Certain Definitions. For purposes of this Agreement the following terms shall have the
following meanings:

          (a) “Act” means the U.S. Securities Act of 1933, as amended, or any successor statute, and the
rules and regulations of the Commission issued under the Act.

          (b) “Affiliate” means, with respect to any Person, any Person directly or indirectly
controlling, controlled by, or under common control with such Person.

          (c) “Business Day” means any day except Saturday, Sunday and any day that is a federal legal
holiday or a day on which banking institutions in the State of New York and Missouri are authorized
or required by law or other governmental action to close.

          (d) “Commission” means the U.S. Securities and Exchange Commission, or any other Federal
agency then administering the Act.

          (e) “Common Stock” shall mean shares of the Company’s Common Stock, $0.0001 par value per
share.

 

 

          (f) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor
statute, and the rules and regulations of the Commission issued under the Exchange Act.

          (g) “Free Writing Prospectus” shall have the meaning ascribed to such term in Rule 405 under
the Act.

          (h) “Holder” means (a) the Securityholder, and (b) any other person holding Registrable
Securities to whom the registration rights set forth in this Agreement have been transferred
pursuant to Section 8.

          (i) “Participating Holder” means any Holder of any Registrable Securities included in a
registration.

          (j) “Person” means any individual, corporation, partnership, limited liability company, trust
or any other incorporated or unincorporated entity or organization of any kind.

          (k) “Prospectus” means the prospectus included in any Registration Statement, as amended or
supplemented by any prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by any Registration Statement and all other amendments and
supplements to the prospectus.

          (l) “Register,” “registered” and “registration” refer to a registration effected by preparing
and filing a Registration Statement in compliance with the Act and the declaration or ordering of
effectiveness of such Registration Statement.

          (m) “Registrable Securities” means the Shares (and any stock or securities issued with respect
to such Shares by reason of a stock dividend, stock split, combination of shares, recapitalization,
reclassification, merger, consolidation, corporate reorganization or otherwise); provided, however,
that Registrable Securities shall cease to be Registrable Securities upon any sale pursuant to a
Registration Statement or Section 4(1) of the Act or Rule 144 (or any combination thereof).

          (n) “Registration Commencement Date” means the earlier of (i) May 1, 2012, and (ii) the date
of the end of employment of Peter A. Edison as the Chief Executive Officer of the Company.

          (o) “Registration Expenses” shall mean all reasonable and customary expenses of the Company
incident to performance of or compliance with this Agreement, including, without limitation: (i)
all Commission, stock exchange or Financial Industry Regulatory Authority registration and filing
fees; (ii) all fees and expenses incurred in connection with compliance with state securities or
“blue sky” laws (including reasonable fees and disbursements of counsel in connection with “blue
sky” qualification of any of the Registrable Securities and the preparation of a Blue Sky
Memorandum); (ii) all expenses of any Persons in preparing or assisting in preparing, word
processing, printing and distributing any Registration
Statement, Prospectus, certificates and other documents relating to the performance

- 2 -

 

of and
compliance with this Agreement; (iv) all fees and expenses incurred in connection with the listing,
if any, of any of the Registrable Securities on any securities exchange or exchanges or automated
quotation system; and (v) the fees and disbursements of counsel for the Company, the independent
public accountants of the Company and one counsel for the Holders of the Registrable Securities
included in such registration. Registration Expenses shall specifically exclude underwriting
discounts and commissions relating to the sale or disposition of Registrable Securities by the
Holders and transfer and income taxes, if any, relating to the sale or disposition of Registrable
Securities by the Holders.

          (p) “Registration Statement” means any registration statement of the Company and any other
entity required to be a registrant with respect to such registration statement pursuant to the
requirements of the Act, including any Prospectus, and all amendments and supplements to any such
registration statement, including post-effective amendments, and all exhibits and all material
incorporated by reference in any such registration statement.

          (q) “Rule 144” means Rule 144 under the Act (or any successor rule that may be adopted by the
Commission ).

          (r) “Rule 145” means Rule 145 under the Act (or any successor rule that may be adopted by the
Commission ).

          (s) “Rule 415” means Rule 415 under the Act (or any successor rule that may be adopted by the
Commission ).

          (t) “Rule 424” means Rule 424 under the Act (or any successor rule that may be adopted by the
Commission ).

          (u) “Shelf Registration” means a “shelf” registration statement on an appropriate form
pursuant to Rule 415.

          (v) “Underwritten Offering” means an offering in which securities of the Company are sold to
an underwriter for reoffering to the public pursuant to an effective Registration Statement under
the Act.

     2. Demand Registrations.

          (a) Requests for Registration. At any time on or after the Registration Commencement Date,
until the tenth anniversary of the Registration Commencement Date, as set forth in this Section 2,
the Holders of a majority of the Registrable Securities may in writing request registration under
the Act of all or part of their Registrable Securities. Each request for registration shall state
that it is being made pursuant to this Section 2 and shall specify the number of Registrable
Securities requested to be registered. Within ten days after such notice has been given, the
Company shall give written notice to all other Holders, if any, of such requested registration.
Each such Holder shall have the right, by giving written notice to the
Company within 30 days after the Company gives its notice, to elect to have included in such
registration such of its Registrable Securities as such Holder may request in such notice of

- 3 -

 

election. Upon a request for a Demand Registration, the Company shall use its reasonable best
efforts to effect as expeditiously as possible the registration, in accordance with Section 4, of
all Registrable Securities which the Company has been requested to so register; provided that the
Company shall within ninety (90) days of such request file with the Commission a Registration
Statement covering all securities to be included therein, unless the Company is otherwise permitted
hereunder to delay such filing. Each registration requested pursuant to this Section 2 is referred
to herein as a “Demand Registration.” If the Company notifies the Holders in writing, prior to a
request for a Demand Registration from the Holders, of the Company’s intent to register securities
with the Commission, and the Company effects a registration in accordance with Section 3, the
Holders’ request shall be governed by Section 3 and shall not constitute a Demand Registration.
The parties hereto acknowledge that the Company is a party to other registration rights agreements
and similar agreements, and that the Company shall be entitled to register under a Registration
Statement any other securities required to be registered pursuant to any other such agreements,
including pursuant to “piggy-back” rights granted prior to the date hereof.

          (b) Limitations on Demand Registrations.

(A) The Company shall be required to effect an unlimited number of Demand
Registrations; provided, however, the maximum number of Demand Registrations
that the Company shall be required to effect during any period(s) when the
Company is not then eligible to utilize Form S-3, or any successor form, to
register the Registrable Securities shall be limited to two;

(B) If the Board of Directors of the Company, acting in good faith,
determines that the registration and distribution of Registrable Securities
(or the use of the Registration Statement or related Prospectus) resulting
from a Demand Registration would (A) materially and adversely interfere with
any previously announced business combination transaction involving the
Company, or (B) result in the premature disclosure of any material pending
financing, acquisition, corporate reorganization or any other corporate
development or other events involving the Company or any of its subsidiaries
that the Company has a bona fide business purpose for preserving as
confidential; then, in either such event, the Company shall promptly give
the Holders written notice of such determination. The Company shall
thereupon have the right to delay the filing or the effectiveness (but not
the preparation) of the Registration Statement for the Demand Registration
for a reasonable period of time, but in no event more than 90 days after the
date that the request for a Demand Registration was made; provided, however,
that the Company shall not register any securities for its own account or
that of any other stockholder during such
ninety (90) day period, other than pursuant to a Registration Statement on
Form S-8; and provided further that in the event of such delay, the Holders
of a majority of the Registrable Securities to be

- 4 -

 

included in such Demand
Registration will be entitled to withdraw such request and, if such request
is withdrawn, such Demand Registration will not count as a Demand
Registration, and responsibility for Registration Expenses incurred by the
parties prior to such delay shall be allocated in accordance with Section
2(e). The Company may not exercise this right to delay a Demand
Registration more than once during any period of twelve consecutive months.

          (c) Underwriting Requirements. In connection with any Demand Registration involving an
Underwritten Offering, the Company shall (together with all Holders proposing to distribute their
securities through such Underwritten Offering) enter into an underwriting agreement in customary
form with the representative of the underwriter or underwriters of recognized national or regional
standing selected for such Underwritten Offering by the Holders of a majority of the Registrable
Securities proposed to be sold pursuant to such Demand Registration and reasonably acceptable to
the Company. If a Demand Registration is an Underwritten Offering and the representative of the
underwriters advises the Holders in writing that marketing or other customary factors, including,
but not limited to, the price at which such securities will be sold, require a limitation of the
number of Registrable Securities to be included in the registration and Underwritten Offering,
then, the number of shares of Common Stock that may be included in an Underwritten Offering shall
be allocated among all Holders and all other participants in such Registration Statement in
proportion, as nearly as practicable, to the respective amounts of securities requested to be
included in the registration by such Holders and participants; provided that in no event shall the
Registerable Securities of the Securityholder included in such Registration Statement be less than
50% of the Registrable Securities requested to be included therein. Also, in the event that the
underwriter requires a limitation of 10% or more in the number of Registrable Securities to be
included in the registration and Underwritten Offering in an offering that would otherwise be
pursuant to a Demand Registration, such registration of shares shall not constitute a Demand
Registration.

          (d) Expenses of Demand Registration. Except as provided in Section 2(e), all Registration
Expenses incurred in connection with a Demand Registration shall be borne by the Company.
Underwriting discounts and commissions relating to the sale or disposition of Registrable
Securities by the Holders and transfer taxes, if any, relating to the sale or disposition of
Registrable Securities by the Holders, all shall be borne by the Holders. The cost of preparing
all documents incorporated by reference or otherwise required to be prepared in the ordinary course
of the Company’s business shall be borne by the Company. Expenses to be borne by the Holders shall
be allocated to each Holder in the same proportion as the amount of Registrable Securities owned by
such Holder which are included in the Demand Registration bears to the amount of Registrable
Securities owned by all Holders which are included in the Demand Registration.

          (e) Withdrawal of Demand Registration. Holders of a majority of the Registrable Securities
proposed to be registered in a given Demand Registration may elect to withdraw such Demand
Registration at any time prior to registration by giving written notice thereof to the Company.
Any Demand Registration so withdrawn shall not constitute a Demand

- 5 -

 

Registration hereunder. The
Registration Expenses incurred in any withdrawn Demand Registration shall be borne solely by the
Holders, unless (i) the Holders agree to forfeit their right to a Demand Registration, in which
case all such Registration Expenses shall be borne by the Company, (ii) the Demand Registration was
withdrawn as a result of the election of the Company to delay the registration in accordance with
Section 2(b)(B), in which case all such Registration Expenses shall be borne by the Company and, in
addition, the Company shall pay all of the reasonable fees and disbursements of counsel to the
Holders incurred prior to such delay, or (iii) the Company continues to pursue such registration
with respect to securities to be sold for the Company’s own account or the account of others, in
which case all such Registration Expenses shall be borne by the Company.

     3. Piggyback Registrations.

          (a) Company Obligations. If the Company proposes to register any of its Common Stock under the
Act and the registration form to be used can be used to register the resale of the Common Stock
(other than a Registration Statement: (A) on Form S-8 or any successor form relating to securities
issuable pursuant to any benefit plan; (B) on Form S-4, or any successor form relating to an
exchange offer or relating to a transaction pursuant to Rule 145; or (C) on Form S-3 or any
successor form with respect to securities registered in connection with dividend reinvestment plans
or similar plans only), the Company shall each such time promptly give the Holders written notice
of such determination to effect such a registration not later than 30 days prior to the anticipated
date of initial filing with the Commission of the Registration Statement. Upon the written request
of any of the Holders given within 20 days after the date that the Company gives its notice, as
part of the registration to which such notice relates, the Company shall use its reasonable best
efforts to effect as expeditiously as possible the registration of all Registrable Securities that
the Holders have requested to be registered. The Company’s obligations under this Section 3(a)
shall commence on the Registration Commencement Date and shall terminate on the tenth anniversary
of the Registration Commencement Date.

          (b) Underwritten Offerings. If the registration of which the Company gives notice is for an
Underwritten Offering, then the Company shall so advise the Holders as a part of such written
notice. In such event, the right of the Holders to registration pursuant to this Section shall be
conditioned upon the Holders’ agreeing to participate in such Underwritten Offering upon the terms
and condition as shall be negotiated by the Company, and the inclusion of the Registrable
Securities in the Underwritten Offering to the extent provided herein. The Holders proposing to
distribute securities through such Underwritten Offering shall (together with the Company) enter
into an underwriting agreement in customary form with the underwriter or underwriters selected for
such Underwritten Offering by the Company. Notwithstanding any other provisions of this Section,
if the underwriter determines in writing, in its sole and absolute
discretion, that marketing or other customary factors, including the price at which such
securities will be sold, require a limitation of the number of shares to be underwritten, then the
underwriter may exclude some or all Registrable Securities from such registration and Underwritten
Offering in accordance with the provisions of this Section. The Company shall so advise the
Holders distributing securities through such Underwritten Offering, and the number of Registrable

- 6 -

 

Securities that may be included in the registration and Underwritten Offering on behalf of the
Holders shall be allocated among the Holders in proportion, as nearly as practicable, to the
respective amounts of Registrable Securities which the Holders requested to be included in the
registration; provided that in no event shall the Registerable Securities of the Securityholder to
be included in such Registration Statement be less than 50% of the Registrable Securities requested
to be included therein. If the Holders disapprove of the terms of any such Underwritten Offering,
then the Holders may elect to withdraw therefrom by giving written notice to the Company and the
underwriter. Any securities so excluded or withdrawn from such Underwritten Offering shall be
withdrawn from such registration.

          (c) Expenses of Piggyback Registrations. In the case of any registration effected pursuant to
this Section 3, all Registration Expenses incurred in connection therewith shall be borne by the
Company, except that Underwriting discounts and commissions relating to the sale or disposition of
Registrable Securities by the Holders and transfer taxes, if any, relating to the sale or
disposition of Registrable Securities by the Holders, all shall be borne by the Holders. The cost
of preparing all documents incorporated by reference or otherwise required to be prepared in the
ordinary course of the Company’s business shall be borne by the Company. Expenses to be borne by
the Holders shall be allocated to each Holder in the same proportion which the Registrable
Securities owned by such Holder which are included in the registration bears to the Registrable
Securities owned by all Holders which are included in the registration.

     4. Registration Procedures. If and whenever the Company shall be required to use its
reasonable best efforts to effect or cause the registration of any Registrable Securities under the
Act as provided in this Agreement, the Company shall as expeditiously as reasonably possible:

          (a) prepare and file with the Commission a Registration Statement with respect to such
Registrable Securities on any form for which the Company then qualifies or that counsel for the
Company shall deem appropriate, and which form shall be available for the sale of the Registrable
Securities in accordance with the methods of distribution thereof intended by the Holders
participating in such registration, and use its reasonable best efforts to cause such Registration
Statement to become and remain effective;

          (b) prepare and file with the Commission amendments and post-effective amendments to such
Registration Statement and such amendments and supplements to the Prospectus used in connection
therewith as may be necessary to maintain the effectiveness of such registration or as may be
required by the rules, regulations or instructions applicable to the registration form utilized by
the Company or by the Act for a Shelf Registration (if available) if requested by the Holders of a
majority of the Registrable Securities to be included in such registration, or otherwise necessary
to keep such Registration Statement effective to permit the
methods of distribution intended by the Holders participating in such registration for at
least 90 days and cause the Prospectus as so supplemented to be filed pursuant to Rule 424, and to
otherwise comply with the provisions of the Act with respect to the disposition of all securities
covered by such Registration Statement in the manner reasonably requested by the Holders of a
majority of the Registrable Securities to be included in such registration until the earlier of (x)

- 7 -

 

such time as all of the Registrable Securities have been disposed of in accordance with the
intended methods of disposition, and (y) the expiration of nine months after the effective date of
such Registration Statement (it being understood that the Company at its option may determine to
maintain such effectiveness for a longer period, whether pursuant to a Shelf Registration or
otherwise); provided, however, that a reasonable time before filing a Registration Statement or
Prospectus, or any amendments or supplements thereto (other than reports required to be filed by it
under the Exchange Act), the Company shall furnish to the Participating Holders, the managing
underwriter, if any, and their respective counsel for review and comment, copies of all documents
proposed to be filed;

          (c) furnish to the Participating Holders and to any underwriter in connection with an
Underwritten Offering such number of conformed copies of such Registration Statement and of each
amendment and post-effective amendment thereto (in each case including all exhibits) and such
number of copies of any preliminary Prospectus, Prospectus or Prospectus supplement and such other
documents as the Participating Holders or underwriter may reasonably request in order to facilitate
the disposition of the Registrable Securities by the Participating Holders or underwriters (the
Company hereby consenting to the use (subject to the limitations set forth in Section 4(h) hereof)
of the Prospectus or any amendment or supplement thereto in connection with such disposition);

          (d) use its reasonable best efforts to register or qualify the sale of such Registrable
Securities covered by such Registration Statement under such other securities or “blue sky” laws of
such jurisdictions as the Participating Holders shall reasonably request, except that the Company
shall not for any such purpose be required to (i) qualify generally to do business as a foreign
corporation in any jurisdiction where, but for the requirements of this Section 4(d), it would not
be obligated to be so qualified, (ii) subject itself to taxation in any such jurisdiction, or (iii)
to consent to general service of process in any such jurisdiction;

          (e) enter into an underwriting agreement in customary form as reasonably requested by Holders;

          (f) cause the Company’s counsel and independent accountants to deliver to the underwriters
opinions and comfort letters in customary form as required by any underwriting agreement entered
into by the Holders and the Company;

          (g) participate in “road shows” and similar presentations as reasonably requested by the
underwriters;

          (h) notify the Participating Holders, at any time when a Prospectus relating thereto is
required to be delivered under the Act within the appropriate period mentioned in
Section 4(b) hereof, of the Company’s becoming aware that the Prospectus included in such
Registration Statement, as then in effect, includes an untrue statement of a material fact or omits
to state a material fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing, and, at the request of any
Participating Holder, prepare and furnish to such Participating Holder a reasonable number of
copies of an

- 8 -

 

amendment or supplement to such Registration Statement or related Prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such Registrable Securities, such
Prospectus shall not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing;

          (i) notify the Participating Holders as soon as reasonably possible:

(A) when the Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and, with respect to the Registration Statement or
any post-effective amendment, when the same has become effective;

(B) of any request by the Commission or any other Federal or state
governmental authority for additional information;

(C) of any request by the Commission or any other Federal or state
governmental authority for amendments or supplements to the Registration
Statement or the Prospectus;

(D) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or any order preventing the use
of a related Prospectus, or the initiation (or any overt threats) of any
proceedings for such purposes; and

(E) of the receipt by the Company of any written notification of the
suspension of the qualification of any of the Registrable Securities for
sale in any jurisdiction or the initiation (or overt threats) of any
proceeding for that purpose.

          (j) use its reasonable best efforts to cause all such Registrable Securities to be listed or
quoted on a national securities exchange or automated quotation system on which the class of
Registrable Securities being registered is then listed or quoted, if such Registrable Securities
are not already so listed or quoted;

          (k) in the event of the issuance of any stop order suspending the effectiveness of the
Registration Statement or of any order suspending or preventing the use of any related Prospectus
or suspending the qualification of any Registrable Securities included in the Registration
Statement for sale in any jurisdiction, use all commercially reasonable efforts promptly to obtain
its withdrawal.

     5. Obligations of Holders.

          (a) Each Holder shall furnish in writing to the Company such information regarding itself, the
Registrable Securities held by it and the intended method of disposition of the Registrable
Securities held by it, as shall be reasonably required to effect the registration

- 9 -

 

(including
registration under “blue sky” laws) of such Registrable Securities and shall execute such documents
in connection with such registration as the Company may be reasonably required to effect such
registration. At least seven (7) business days prior to the first anticipated filing date of any
Registration Statement, the Company shall notify each Holder of the information the Company
requires from such Holder if such Holder elects to have any of the Registrable Securities included
in the Registration Statement. Each Holder shall provide such information to the Company at least
two (2) business days prior to the first anticipated filing date of such Registration Statement if
such Holder elects to have any of the Registrable Securities included in the Registration
Statement. If a Holder fails to fulfill its obligations under the preceding sentence, the Company
shall not be required to include the Registrable Securities of a Holder in a Registration
Statement.

          (b) Each Holder, by its acceptance of the Registrable Securities, agrees to cooperate with the
Company as reasonably requested by the Company in connection with the preparation and filing of a
Registration Statement hereunder, unless such Holder has notified the Company in writing of its
election to exclude all of its Registrable Securities from such Registration Statement.

          (c) Each Holder shall, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 4(h) or 4(i)(C)-4(i)(E) hereof or the commencement of any
Black-Out Period (as defined herein), forthwith discontinue disposition of Registrable Securities
pursuant to the Prospectus or Registration Statement covering such Registrable Securities until
otherwise notified by the Company or until the Holders shall have received copies of the
supplemented or amended Prospectus contemplated by Section 4(h) or 4(i)(C)-4(i)(E) hereof, and, if
reasonably so directed by the Company, the Holders shall deliver to the Company (at the Company’s
expense) all copies, other than permanent file copies then in the Holders’ possession, of the
Prospectus covering such Registrable Securities current at the time of receipt of such notice.
Each Holder acknowledges and agrees that it will comply with any prospectus delivery requirements
of the Act as applicable to it in connection with sales of Registrable Securities.

     6. Lock-Up Period Agreement. In consideration for the Company agreeing to its obligations
under this Agreement, the Holders agree in connection with any underwritten registration of the
Company’s securities (other than pursuant to a Registration Statement (A) on Form S-8 or any
successor form relating to securities issuable pursuant to any benefit plan; (B) on Form S-4, or
any successor form relating to an exchange offer or relating to a transaction pursuant to Rule 145
under the Act; or (C) on Form S-3 or any successor form with respect to securities registered in
connection with dividend reinvestment plans and similar plans only) and provided that (A) all
officers and directors of the Company and all other persons with registration rights enter into
similar agreements, and (B) nothing contained herein shall prohibit any holder of
Registrable Securities from transferring any Common Stock to a trust established for estate
planning purposes so long as the trust executes a similar undertaking, that, upon the request of
the underwriters managing any underwritten offering of the Company’s securities, not to sell, make
any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any of the
Common Stock (other than those included in the registration) without the prior written

- 10 -

 

consent of
such underwriters for up to 180 days after the effective date of such registration, provided,
however, that such transfer restrictions shall not apply to any privately negotiated transaction
that complies with applicable securities laws and to which the managing underwriters do not
reasonably object.. Notwithstanding anything to the contrary set forth herein, the terms of this
Section 6 may not be amended or modified, directly or indirectly, without the express written
consent of each Holder of Registrable Securities detrimentally affected by such amendment or
modification and any such amendment or modification made without such Holder’s consent shall not be
applicable to that Holder.

     7. Rule 144 Reporting. With a view toward making available to the Holders the benefits of
certain rules and regulations of the Commission that may permit the sale of the Common Stock to the
public without registration, the Company agrees to use its reasonable best efforts to:

          (a) make and keep current public information available, within the meaning of Rule 144 or any
similar or analogous rule promulgated under the Act until the earlier of: (A) six months after such
date as all of the Registrable Securities may be resold without any volume limitation or (B) such
date as all of the Registrable Securities shall have been resold;

          (b) file with the Commission, in a timely manner, all reports and other documents required of
the Company under the Act and the Exchange Act; and

          (c) so long as any party hereto owns any Registrable Securities, furnish to such party
forthwith upon request, a written statement by the Company as to its compliance with the reporting
requirements of Rule 144, the Act and the Exchange Act; a copy of the most recent annual or
quarterly report of the Company; and such other reports and documents as such party may reasonably
request in availing itself of any rule or regulation of the Commission allowing it to sell any such
securities without registration.

     8. Transfer of Registration Rights. The provisions of this Agreement shall be binding upon
and inure to the benefit of the Holders and their respective successors and assigns. This Agreement
may not be assigned by any Holder (whether by operation of law or otherwise) without the prior
written consent of the Company, provided, however, that any Holder may transfer or assign, in whole
or from time to time in part, to one or more persons, which shall be an “accredited investor” as
defined in Rule 501(a) of Regulation D, as amended under the 1933 Act, and which shall agree in
writing to be bound by the terms and conditions of this Agreement, an executed counterpart of which
shall be furnished to the Company, its rights hereunder in connection with the transfer of
Registrable Securities by such Holder to such person, provided that such Holder complies with all
laws applicable thereto, provides written notice of assignment to the Company promptly after such
assignment is effected, and such transfer complies with any
transfer restrictions in the Purchase Agreement. This Agreement may not be assigned by the
Company (whether by operation of law or otherwise) without the prior written consent of the Holders
of a majority of Registrable Securities, provided, however, that the Company may assign its rights
and delegate its duties hereunder to any surviving or successor corporation in connection with a
merger or consolidation of the Company with another corporation, or a sale,

- 11 -

 

transfer or other
disposition of all or substantially all of the Company’s assets to another corporation, without the
prior written consent of the Holders of a majority of the Registrable Securities, after notice duly
given by the Company to each Holder.

     9. Black-Out Period. Notwithstanding anything to contrary herein, for not more than thirty
(30) consecutive days or for a total of not more than 60 days in any 12-month period, the Company
may delay, suspend the use of, or withdraw any Registration Statement or qualification of
Registrable Securities if the Company in good faith determines that any such Registration
Statement, or the use thereof, would materially and adversely affect any material corporate event
or would otherwise require disclosure of nonpublic information which the Company determines, in its
reasonable judgment, is not in the best interests of the Company at such time, or, in the Company’s
discretion, if the Company determines that an event described in Section 4(h) has occurred (a
“Black-Out Period”); provided, that the Company shall promptly (a) notify the Holders in writing of
the existence of (but in no event, without the prior written consent of an Holder, shall the
Company disclose to such Holder any of the facts or circumstances regarding) a Black-Out Period,
(b) advise the Holders in writing to cease all sales under the Registration Statement until the end
of the Black-Out Period and (c) use commercially reasonable efforts to terminate a Black-Out Period
as promptly as practicable.

     10. Confidentiality. No Holder may use any confidential information received by it pursuant
to this Agreement or the Purchase Agreement (including notices pursuant to Sections 4(h) or 9
hereof) in violation of the Securities Exchange Act of 1934 or other applicable state or federal
securities law or reproduce, disclose, or disseminate such information to any other person (other
than his or her attorneys, agents and representatives having a need to know, and then only if they
expressly agree to be bound hereby), unless such information has been made available to the public
generally (other than by such recipient in violation hereof) or such recipient is required to
disclose such information by a governmental body or regulatory agency or by law in connection with
a transaction that is not otherwise prohibited hereby, and then only after reasonable notice to the
Company and it has been provided an opportunity to object to such disclosure, with the reasonable
cooperation and assistance of such Holder. Each Holder at the Company’s expense agrees to comply
with the Securities Act of 1933 and other applicable laws in connection with the offer or sale of
any Registrable Securities. The obligations in this Section 10 shall survive the expiration or
termination of this Agreement.

     11. General Indemnification.

          (a) In connection with any registration or qualification of the Registrable Securities under
this Agreement, (i) the Company shall indemnify and hold harmless each of the Holders, including
but not limited to each Person, if any, who controls a Holder within the meaning of Section 15 of
the Act, against all losses, claims, damages, liabilities and expenses
(including but not limited to reasonable expenses incurred in investigating, preparing and
defending against any claim) to which a Holder or such controlling person may become subject under
the Act, the Exchange Act or otherwise, insofar as the same arise out of or are based upon or are
caused by any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement, Prospectus (as amended or supplemented if the Company shall have

- 12 -

 

furnished
any amendments or supplements thereto) or Free Writing Prospectus furnished pursuant to this
Agreement or insofar as the same arise out of or are based upon or are caused by any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, except insofar as such losses, claims, damages,
liabilities or expenses are ultimately determined to have arisen out of or were based upon or were
caused by any untrue statement or alleged untrue statement or omission or alleged omission based
upon written information furnished to the Company by or on behalf of any Holder or any such control
person for inclusion in any Registration Statement, Prospectus (and any amendments or supplements
thereto) or Free Writing Prospectus, or to the extent that such information relates to such Holder
or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and
approved by such Holder for use in the Registration Statement, such Prospectus or such form of
Prospectus or in any amendment or supplement thereto, or in the case of an occurrence of a Black
Out Period or of an event of the type specified in Section 4(h), the use by such Holder of an
outdated or defective Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated or defective and prior to the receipt by such Holder of an amended or
supplemented Prospectus, but only if and to the extent that following the receipt of such amended
or supplemented Prospectus the misstatement or omission giving rise to such liability would have
been corrected, and (ii) each Holder, severally and not jointly, shall indemnify the Company, its
affiliates, any person who signed any Registration Statement, and their respective officers,
directors and control persons against all such losses, claims, damages, liabilities and expenses
(including but not limited to reasonable expenses incurred in investigating, preparing and
defending against any claim) insofar as the same are ultimately determined to have arisen out of or
were based upon or were caused by any such untrue statement or alleged untrue statement or any such
omission or alleged omission based upon written information furnished to the Company by or on
behalf of such Holder or any such control person for the inclusion in any Registration Statement,
Prospectus (and any amendments or supplements thereto) or Free Writing Prospectus, or to the extent
that such information relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and approved by such Holder for use in the Registration
Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto, or
in the case of an occurrence of a Black Out Period or of an event of the type specified in Section
4(h), the use by such Holder of an outdated or defective Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by
such Holder of an amended or supplemented Prospectus, but only if and to the extent that following
the receipt of such amended or supplemented Prospectus the misstatement or omission giving rise to
such liability would have been corrected.

          (b) Notice of, and Procedures for, Collecting Indemnification. Promptly upon receipt by a
party indemnified under this Agreement of notice of the commencement of any
action against such indemnified party in respect of which indemnity or reimbursement may be
sought against any indemnifying party under this Agreement, such indemnified party shall notify the
indemnifying party in writing of the commencement of such action, but the failure so to notify the
indemnifying party shall not relieve it of any liability which it may have to any indemnified party
under this Agreement unless such failure shall materially and adversely affect the defense of such
action. In case notice of commencement of any such action shall be given to

- 13 -

 

the indemnifying party
as above provided, the indemnifying party shall be entitled to participate in and, to the extent it
may wish, jointly with any other indemnifying party similarly notified, to assume the defense of
such action at its own expense, with counsel chosen by it and reasonably satisfactory to such
indemnified party. The indemnified party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of such counsel
(other than reasonable expenses incurred in investigating, preparing and defending against any
claim) shall be paid by the indemnified party unless (a) the indemnifying party agrees to pay the
same, (b) the indemnifying party fails to assume the defense of such action with counsel reasonably
satisfactory to the indemnified party (in which case the indemnifying party shall not have the
right to assume the defense of such action on behalf of such indemnified party), or (c) the named
parties to any such action (including any impleaded parties) have been advised by such counsel that
representation of such indemnified party and the indemnifying party by the same counsel would be
inappropriate under applicable standards of professional conduct (in which case the indemnifying
party shall not have the right to assume the defense of such action on behalf of such indemnified
party). In the event that either of the circumstances described in clauses (b) and (c) of the
sentence immediately preceding shall occur, the indemnified party shall have the right to select a
separate counsel and to assume such legal defense and otherwise to participate in the defense of
any such action, with the reasonable expenses and fees of such separate counsel and other
reasonable expenses related to such participation to be reimbursed by the indemnifying party as
incurred. No indemnifying party shall be liable for any settlement entered into without its
consent, which consent shall not be unreasonably withheld or delayed.

          (c) Contribution. If the indemnification provided for in this Section 11 is unavailable to an
indemnified party under paragraphs (a) and (b) hereof, other than as expressly set forth above, in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then an
indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims or damages (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company on the one
hand and the Holder(s) on the other hand from the offering of the Registrable Securities, and any
other securities included in the Registration Statement which gave rise to such losses, claims,
damages, liabilities or expenses, or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Company on the one hand
and the Holder(s) on the other in connection with the statements or omissions that resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand and the Holder(s) on
the other shall be deemed to be in the same proportion as the total
net proceeds from the offering (before deducting expenses) received by the Company bears to
the total net proceeds from the offering (before deducting expenses) received by the Holder(s), in
each case as set forth in the table on the cover page of the prospectus. The relative fault of the
Company on the one hand and the Holder(s) on the other hand shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the

- 14 -

 

Company or by the Holder(s) and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

     12. Notices. All notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective on the earliest of
(a) the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section prior to 6:30 p.m. (Central Time) on a Business Day, (b)
the next Business Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or via e-mail at the e-mail address specified in this Section
on a day that is not a Business Day or later than 6:30 p.m. (Central Time) on any Business Day, (c)
the Business Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) upon actual receipt by the party to whom such notice is required to be
given. The addresses and facsimile numbers for such notices and communications shall be as
follows:

     If to the Company:

Bakers Footwear Group, Inc.

2815 Scott Avenue

St. Louis, Missouri 63103

Facsimile No.: (314) 641-0390

Attention: Peter A. Edison

     With a copy to:

Bryan Cave LLP

One Metropolitan Square

211 North Broadway, Suite 3600

St. Louis, Missouri 63102

Facsimile No.: (314) 552-8295

Attention: J. Mark Klamer, Esq.

                    William L. Cole, Esq.

     If to a Holder:

          To the address, facsimile number or e-mail address set forth under the Holder’s name on the
signature page hereto;

     or such other address, facsimile number or e-mail as may be designated in writing hereafter,
in the same manner, by such Person.

     13. Amendment and Waiver. Subject to the last sentence of Section 15 and except as otherwise
expressly provided herein, the provisions of this Agreement may be amended or waived only upon the
prior written consent of the Company and the Holders of a majority of the Registrable Securities.

- 15 -

 

     14. Counterparts. This Agreement may be executed in two or more counterparts, all of which
taken together shall constitute one instrument.

     15. Binding on Successors and Assigns. Except as set forth in Section 8, no party may assign
any of its rights or delegate any of its duties under this Agreement without the prior consent of
the other party. This Agreement shall be binding upon, inure to the benefit of and be enforceable
by and against the parties hereto and their respective successors and permitted assigns in
accordance with the terms hereof. Additional persons may join in this Agreement as Holders to the
extent provided in the Purchase Agreement.

     16. Headings. The headings in the sections and subsections of this Agreement are inserted for
convenience only and in no way alter, amend, modify, limit or restrict the contractual obligations
of the parties.

     17. Severability. Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such provision will be
ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

     18. Entire Agreement; Law Governing. All prior negotiations and agreements between the
parties hereto are superseded by this Agreement, and there are no representations, warranties,
understandings or agreements other than those expressly set forth herein, except as modified in
writing concurrently herewith or subsequent hereto. This Agreement shall be governed by and
construed and interpreted according to the internal laws of the State of New York, determined
without reference to conflicts of law principles.

* * *

- 16 -

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	BAKERS FOOTWEAR GROUP, INC.:
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Peter A. Edison	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Peter A. Edison	 	 
	 	 	Title: Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	STEVEN MADDEN, LTD.:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Arvind Dharia	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Arvind Dharia	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:	 	 
	 
	 	 	 	 	 	 
	 	 	52-16 Barnett Avenue	 	 
	 	 	Long Island City, New York 11104	 	 
	 	 	Facsimile: 718-308-8201	 	 
	 	 	Attn: Arvind Dharia	 	 
	 	 	email: arvinddharia@stevemadden.com	 	 

[Signature page to the Registration Rights Agreement]exv4w5

Exhibit 4.5

SUBORDINATION AGREEMENT

Preliminary Statement

     This Subordination Agreement (this “Agreement”) is made as of August 26, 2010 by and among
Bakers Footwear Group, Inc. (the “Company”), Steven Madden, Ltd. (the “Subordinated Creditor”) and
Bank of America, N. A. (the “Senior Lender”) (the Subordinated Creditor and the Senior Lender,
collectively, the “Creditors”). The Company and the Senior Lender are parties to that certain
Second Amended and Restated Loan and Security Agreement dated as of August 31, 2006 (as amended,
restated, modified and/or supplemented from time to time, the “Loan Agreement”). Capitalized terms
used herein and not otherwise defined shall have the same meanings ascribed to them in the Loan
Agreement.

     Concurrently herewith, the Company and the Subordinated Creditor have entered into a Debenture
and Stock Purchase Agreement, pursuant to which the Company, subject to the terms and conditions
set forth therein, has agreed to sell to the Subordinated Creditor a debenture in the principal
amount of $5,000,000 (the “Subordinated Debenture”) and 1,844,860 shares of common stock, a copy of
which is attached hereto as Exhibit 1 (the “Purchase Agreement”).

     The Company has requested that the Senior Lender consent to, and the Senior Lender has agreed
to consent to, the Company borrowing under the Subordinated Debenture contingent upon, among other
things, the execution and delivery by the Subordinated Creditor and the Company of this Agreement.

     NOW THEREFORE, FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby
acknowledged, and in consideration of the willingness of the Senior Lender to consent to the
Company borrowing under the Subordinated Debenture, the Company and the Subordinated Creditor,
jointly and severally, agree with the Senior Lender as follows:

1. Subordination of Debt. The Subordinated Creditor hereby subordinates the Indebtedness
of the Company evidenced by the Subordinated Debenture (the “Subordinated Indebtedness”), to any
and all Indebtedness now or hereafter owing by the Company to the Senior Lender, including, without
limitation, the Liabilities under the Loan Agreement, whether direct or indirect, absolute or
contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated,
including principal, interest, charges, fees, costs, indemnities and reasonable expenses, however
evidenced, and whether as principal, surety, endorser, guarantor or otherwise, whether now existing
or hereafter arising, whether arising before, during or after the initial or any renewal term of
the Loan Agreement and whether arising before, during or after the commencement of any Insolvency
Proceeding with respect to the Company (and including the payment of any principal, interest, fees,
cost, expenses and other amounts (including default rate interest) which would accrue and become
due but for the commencement of such Insolvency Proceeding whether or not such amounts are allowed
or allowable in whole or in part in any such Insolvency Proceeding (collectively, the “Senior
Indebtedness”) and agrees that the Subordinated Indebtedness shall be junior in right of payment
and in exercise of remedies to the Senior Indebtedness.

2. Encumbrances. Each Creditor hereby acknowledges that the other has been granted
Encumbrances upon assets of the Company to secure the Senior Indebtedness and the Subordinated
Indebtedness, respectively. Notwithstanding the foregoing, except as set forth in the Purchase
Agreement as in effect on the date hereof, Subordinated Creditor will not obtain, ask for or
require any guaranty of the Subordinated Indebtedness and will not obtain, ask for, or require any
lien on any assets of the Company as security for the Subordinated Indebtedness.

1

 

3. Payments.

	 	(a)	 	Subject to Section 3(b) below, until such time as the Senior
Indebtedness is Paid in Full (as hereinafter defined), the Subordinated Creditor shall
be entitled to receive and retain only (i) those regularly scheduled payments (without
acceleration) of principal and interest on the Subordinated Indebtedness (the
“Scheduled Subordinated Indebtedness Payments”), to the extent and in the manner set
forth in the Purchase Agreement as in effect on the date hereof, and (ii) so long as
the Payment Conditions (as hereinafter defined) are satisfied, prepayments of the
Subordinated Indebtedness. “Paid in Full” or “Payment in Full” shall mean, with
respect to the Senior Indebtedness, that: (a) all of the Senior Indebtedness (other
than contingent indemnification obligations for which no underlying claim has been
asserted) has been indefeasibly paid, performed or discharged in full in cash, (b) no
Person has any further right to obtain any loans, letters of credit or other extensions
of credit under the documents relating to the Senior Indebtedness and (c) any and all
letters of credit or similar instruments issued under such documents have been expired
or cancelled and returned (or backed by stand-by letters of credit or cash
collateralized) in accordance with the terms of such documents.
	 
	 	(b)	 	Notwithstanding the provisions of Section 3(a) above, the Company and
the Subordinated Creditor covenant to and agree with the Senior Lender that upon the
occurrence of a default or Event of Default under the Loan Agreement (collectively, a
“Default”), and so long as, in the case of a default, such default remains uncured (or
such default and any resulting Event of Default have not been waived by the Senior
Lender), and in the case of an Event of Default, such Event of Default has not been
waived by the Senior Lender, the Subordinated Creditor’s right to receive and retain
the Scheduled Subordinated Indebtedness Payments and any prepayments (and any other
payments) under the Subordinated Debenture shall immediately cease. Subject to Section
3(c) below, the Subordinated Creditor agrees not to demand, accept or receive any
payment or prepayment in respect of the Subordinated Indebtedness after the occurrence
of a Default which remains uncured or which the Senior Lender has not waived, as
applicable, including, without limitation, any payment received through the exercise of
any right of setoff, counterclaim, cross-claim or otherwise, or any collateral
therefor, provided that the Subordinated Creditor may exercise those remedies set forth
in Section 11 below. Without limiting the foregoing, the Company agrees that,
subject to Section 3(c) below, no amount shall be paid in respect of the Subordinated
Indebtedness, whether in cash, property, securities or otherwise, by the Company to the
Subordinated Creditor after the occurrence of a Default which remains uncured or which
the Senior Lender has not waived, as applicable, without the prior written consent of
the Senior Lender.
	 
	 	(c)	 	Notwithstanding the foregoing provisions of Section 3(b), the Company may
resume and the Subordinated Creditor may accept Scheduled Subordinated Indebtedness
Payments (including any Scheduled Subordinated Indebtedness Payments which accrue
during any such time when the payment of such Scheduled Subordinated Indebtedness
Payments is prohibited pursuant to Section 3(b) above) and prepayments of the
Subordinated Indebtedness, provided that the Company may only make and the
Subordinated Creditor may only accept any payments which accrue during any such time
when the payment of such Scheduled Subordinated Indebtedness Payments is prohibited
pursuant to Section 3(b) above if the Payment Conditions are met. No Default shall be
deemed to have been

2

 

	 	 	 	cured or waived for purposes of this Section 3(c) unless and until the Company and
the Subordinated Creditor shall have received a written waiver or notice of cure
thereof from the Senior Lender. The Company and/or the Senior Lender shall give the
Subordinated Creditor prompt notice of the occurrence of any Default and of any
cure, waiver or other termination thereof as provided in Section 16(a)
hereof.
	 
	 	(d)	 	In the event that notwithstanding the provisions of the Loan Agreement and this
Agreement, the Company shall make any payment to the Subordinated Creditor on account
of the Subordinated Indebtedness not expressly authorized hereby, such payment shall be
held in trust by the Subordinated Creditor, for the benefit of the Senior Lender, and
shall be paid over immediately (without necessity of demand) to the Senior Lender for
application in accordance with the Loan Agreement to the payment of all Senior
Indebtedness remaining due and payable until the same shall have been Paid in Full,
after giving effect to any concurrent payment or distribution to the holders of such
Senior Indebtedness. In the event of the failure of the Subordinated Creditor to
endorse any instrument for the payment of money so received by the Subordinated
Creditor on account of the Subordinated Indebtedness, the Senior Lender is irrevocably
appointed attorney-in-fact for the Subordinated Creditor with full power to make such
endorsement and with full power of substitution.
	 
	 	(e)	 	For the purposes of this Section 3, “Payment Conditions” shall mean (a) (i) no
Default exists or would arise from the making of such payment or prepayment, and (ii)
after giving effect to such payment or prepayment, Availability on a pro forma basis
for the 12 months following such payments is equal to or greater than $3,500,000, or
(b) the Senior Indebtedness has been Paid in Full.

4. INTENTIONALLY OMITTED.

5. Bankruptcy, Insolvency, etc.

	 	(a)	 	In the event of an insolvency, bankruptcy, receivership, liquidation,
reorganization or other similar proceedings relative to the Company or to its assets,
or in the event of any proceedings for voluntary liquidation, dissolution or other
winding up of the Company, whether or not involving insolvency or bankruptcy (any such
proceeding referenced above being referred to herein as an “Insolvency Proceeding”), so
long as any Senior Indebtedness is outstanding and has not been Paid in Full, the
Senior Lender shall be entitled in any such Insolvency Proceedings to receive Payment
in Full in cash of all Senior Indebtedness before the Subordinated Creditor is entitled
in such Insolvency Proceedings to receive any payment on account of the Subordinated
Indebtedness, other than any payment consisting solely of any securities of the Company
issued in connection with an Insolvency Proceeding, the payment of which securities is
junior or otherwise subordinated, at least to the same extent provided in this
Agreement, to the payment of any and all of the Senior Indebtedness (collectively,
“Subordinated Securities”), and to that end in any such Insolvency Proceedings, so long
as any Senior Indebtedness remains outstanding, any payment or distribution of any kind
or character, whether in cash or in other property (other than Subordinated
Securities), to which the Subordinated Creditor would be entitled on account of the
Subordinated Indebtedness but for the provisions hereof, shall be delivered to the
Senior Lender to the extent necessary to make payment

3

 

	 	 	 	in full in cash of all Senior Indebtedness remaining unpaid, after giving effect to
any concurrent payment or distribution to the holders of Senior Indebtedness.
	 
	 	(b)	 	Upon the commencement of an Insolvency Proceeding, the Subordinated Creditor
shall be deemed, as security for the Senior Indebtedness and in order to effectuate the
subordination set forth above, to have assigned the Subordinated Indebtedness to the
Senior Lender and granted to the Senior Lender as of the date of the commencement of
such Insolvency Proceeding the right to collect all payments and distributions of any
kind and description (other than Subordinated Securities), whether in cash or other
property, paid or payable in respect of any claims or demands of the Subordinated
Creditor against the Company arising from the Subordinated Indebtedness. Upon the
commencement of an Insolvency Proceeding, the Subordinated Creditor shall also be
deemed to have granted to the Senior Lender the full right (but not the obligation), in
its own name or in its name as attorney in fact for the Subordinated Creditor, to
collect and enforce claims and demands of the Subordinated Creditor arising from the
Subordinated Indebtedness by suit, proof of claim in bankruptcy or other liquidation,
reorganization or Insolvency Proceedings or otherwise. The Subordinated Creditor by
its execution of this Agreement also hereby grants to the Senior Lender the exclusive
right to vote any and all claims of the Subordinated Creditor in any Insolvency
Proceedings involving the Company with respect to the election of a trustee or similar
official. The Subordinated Creditor shall be entitled to (i) vote any and all claims
of the Subordinated Creditor in any such Insolvency Proceeding with respect to any
proposed plan of reorganization of the Company, and (ii) object to any proposed plan of
reorganization of the Company to which the Subordinated Creditor would have the right
to object in any Insolvency Proceeding; provided that, in each case, the
Subordinated Creditor will not be entitled to exercise any such right if the result
thereof could reasonably be expected to materially and adversely affect the rights and
remedies of the Senior Lender under this Agreement, the Loan Agreement or any other
Loan Document or the ability of the Senior Lender to exercise the same.

6. INTENTIONALLY OMITTED.

7. Obligations Absolute. The provisions of this Agreement are for the purpose of defining
the relative rights of the Senior Lender on the one hand and the Subordinated Creditor on the other
hand with respect to the enforcement of rights and remedies and priority of payment of the Senior
Indebtedness and the Subordinated Indebtedness. Nothing herein shall impair, as between the
Company and the Subordinated Creditor, the obligations of the Company, which are unconditional and
absolute, to pay to the holder thereof the principal and interest thereon and any other liabilities
encompassed in the Subordinated Indebtedness, all in accordance with their respective terms,
subject to the prior payment in full in cash of the Senior Indebtedness.

8. Subordination Not Affected. Without the necessity of any reservation of rights against
or any notice to or further assent by the Subordinated Creditor, (i) any demand for payment of any
Senior Indebtedness made by the Senior Lender may be rescinded in whole or in part by the Senior
Lender, (ii) the Senior Lender may exercise or refrain from exercising any rights and/or remedies
against the Company and others, if any, liable under the Senior Indebtedness, and (iii) the Senior
Indebtedness and any agreement or instrument evidencing, securing, or otherwise relating to the
Senior Indebtedness (including without limitation, the Loan Agreement and the other Loan
Documents), or any collateral security therefor or guaranty thereof or other right of any nature
with respect thereto, may be amended,

4

 

extended, modified, continued, accelerated, compromised, waived, surrendered or released by the
Senior Lender, in any manner the Senior Lender deems in its best interests, all without impairing,
abridging, releasing or affecting in any manner the subordination of the Subordinated Indebtedness
to the Senior Indebtedness provided for herein. Without limiting the foregoing, the Subordinated
Creditor waives any and all notice of the creation, amendment, restatement, extension,
acceleration, compromise, continuation, waiver, surrender, release or modification of any nature of
the Senior Indebtedness, the Loan Agreement or the other Loan Documents, and notice of or proof of
reliance by the Senior Lender upon the subordination provided for herein. The Senior Indebtedness
shall conclusively be deemed to have been created, contracted and incurred in reliance upon the
provisions of this Agreement.

9. Warranties, Representations, Covenants and Acknowledgments of the Subordinated Creditor.

	 	(a)	 	The Subordinated Creditor represents to the Senior Lender that all Indebtedness
of the Company to the Subordinated Creditor is evidenced by the Subordinated Debenture
and the other instruments executed and delivered in connection therewith. The
Subordinated Creditor further represents that said Indebtedness has not heretofore been
assigned, pledged to, or subordinated in favor of, any other Person, except for (i)
that certain Subordination Agreement dated as of the date hereof by and between the
Company, the Subordinated Creditor and Private Equity Management Group, Inc. and (ii)
that certain Subordination Agreement dated as of the date hereof by and between the
Company, the Subordinated Creditor and the holders of certain Subordinated Convertible
Debentures due June 30, 2012 and dated June 26, 2007 in the aggregate face amount of
$4,000,000.
	 
	 	(b)	 	The Subordinated Creditor hereby covenants and agrees that it will not amend or
permit amendment of the terms of the Subordinated Debenture or any other agreement,
document or instrument hereafter evidencing any Subordinated Indebtedness, without the
prior written consent of the Senior Lender, if such amendment would: (i) increase the
principal amount of the Subordinated Indebtedness; (ii) increase the rate of interest
accruing on the Subordinated Indebtedness; (iii) accelerate in any manner the dates
upon which any principal or interest payment on the Subordinated Indebtedness is due
(other than with respect to the forgiveness of any of the Subordinated Indebtedness);
(iv) take any additional collateral for the Subordinated Indebtedness; or (v) add or
change in a manner adverse to the Company or the Senior Lender any covenant, agreement
or event of default under the Purchase Agreement or the Subordinated Debenture.
Notwithstanding anything to the contrary contained herein, the Subordinated Creditor
shall, at any time without the prior written consent of or notice to the Senior Lender,
be entitled to forgive part or all of the Subordinated Indebtedness.
	 
	 	(c)	 	The execution, delivery and performance of this Agreement has been duly
authorized by all necessary corporate, partnership or other action on the part of the
Subordinated Creditor, and this Agreement constitutes a valid and binding obligation of
the Subordinated Creditor, enforceable against it in accordance with its terms.
	 
	 	(d)	 	The Subordinated Creditor covenants and agrees that it will not assign, pledge,
sell, transfer or otherwise dispose of any of the Subordinated Indebtedness or
interests therein, whether through assignment or participation or otherwise, except to
a Person who first becomes a party hereto and accepts without qualification all
obligations of the Subordinated Creditor hereunder.

5

 

	 	(e)	 	The Subordinated Creditor acknowledges and agrees that this Agreement is a
“subordination agreement” within the meaning of Section 510(a) of the United States
Bankruptcy Code, 11 U.S.C. §510(a).

10. Validity and Enforceability of Encumbrances Securing Senior Indebtedness; Cooperation with
Senior Lender.

	 	(a)	 	(i) the Subordinated Creditor will not in any Insolvency Proceeding or other
event described in Section 5 or otherwise, challenge, oppose or contest (or
join in any challenge, opposition or contest by any third party, or encourage any third
party to challenge, oppose or contest) the Senior Indebtedness or the perfection,
superiority, priority, validity or enforceability of any security interest or lien
granted to the Senior Lender pursuant to the Loan Agreement, the Security Documents or
other Loan Documents, nor will the Subordinated Creditor challenge the validity or
enforceability of such Loan Agreement, Security Documents or other Loan Documents, or
any provision thereof, and (ii) the Senior Lender will not in any Insolvency Proceeding
or other event described in Section 5 or otherwise, challenge, oppose or
contest (or join in any challenge, opposition or contest by any third party, or
encourage any third party to challenge, oppose or contest) the Subordinated
Indebtedness or the perfection, superiority, priority, validity or enforceability of
any security interest or lien granted to the Subordinated Creditor pursuant to the
Purchase Agreement, or any documents executed in connection therewith, nor will the
Senior Lender challenge the validity or enforceability of the Purchase Agreement,
Subordinated Debenture, or any documents executed in connection therewith, or any
provision thereof. Each party hereby acknowledges that the provisions of this
Agreement are intended to be enforceable at all times, whether before or after any
Insolvency Proceeding or other event described in Section 5 of this Agreement.
The Subordinated Creditor hereby waives any right to require the Senior Lender to
marshal the Collateral.
	 
	 	(b)	 	Without limiting the foregoing, the Subordinated Creditor will not challenge or
oppose (or join with any party challenging or opposing) or take any action whatsoever
to impair the exercise by the Senior Lender of the rights and remedies granted to the
Senior Lender in the Loan Documents; provided, however, that the Subordinated
Creditor shall have the right, but not the obligation, to cure a Default under the
Senior Indebtedness at any time during the period provided for the Company to cure such
Default under the Loan Documents; provided further, however, that the failure
by the Senior Lender to give the Subordinated Creditor notice of such Default as
provided in Section 16(a) hereof shall not affect or limit the Senior Lender’s rights
hereunder or under the Loan Agreement. In the event that such Default shall be so
cured, the rights of the Senior Lender in respect of such Default shall cease until the
occurrence of any other Default.

11. Limitations on Remedies.

	 	(a)	 	Upon the occurrence of any default or event of default (a “Subordinated
Default”) in respect of the Subordinated Indebtedness, the Subordinated Creditor shall
not exercise any Enforcement Action for a period (the “Standstill Period”), commencing
on the date of receipt by the Senior Lender from the Subordinated Creditor of written
notice (a “Default Notice”) of such Subordinated Default and ending on the earlier to
occur of (i) 120 days after receipt by Senior Lender of such Default Notice and (ii) an
Insolvency

6

 

	 	 	 	Proceeding; provided that in the event that as of any day during such 120
day period the Subordinated Default that was the subject of the Default Notice shall
no longer be continuing, then the Standstill Period shall be deemed not to have
commenced, and provided further that such 120 day period shall be
tolled (x) for any period during which the Senior Lender or the Subordinated
Creditor are stayed by an Insolvency Proceeding or an order issued by a court of
competent jurisdiction from taking any Enforcement Action and (y) for any period
during which the Subordinated Creditor has otherwise agreed to forbear from
exercising its rights with respect to such Subordinated Default. As used in this
Agreement, the term “Enforcement Action” shall mean (a) the acceleration of all or
any portion of the Senior Indebtedness or Subordinated Indebtedness, as applicable,
(b) the commencement of or joinder in any involuntary proceeding against the Company
or any of its Subsidiaries under any bankruptcy, reorganization, readjustment of
debt, arrangement of debt, receivership, liquidation or insolvency law or statute or
any federal or state government, (c) the commencement of any action or proceeding
against the Company or any of its Subsidiaries to enforce payment of all or any part
of the Senior Indebtedness or Subordinated Indebtedness, as applicable or the taking
of any other actions against the Company or its Subsidiaries permitted under the
Loan Documents or the Purchase Agreement, as applicable, and/or under applicable
law, and/or the reduction of such claims to a judgment against the Company, (d) any
action by any Creditor to foreclose on the Encumbrance of such Person in any
Collateral, (e) any action by any Creditor to take possession of, or sell or
otherwise realize upon, or to exercise any other rights or remedies with respect to,
any Collateral, including any disposition after the occurrence of a default of any
Collateral by the Company with the consent of, or at the direction of, such
Creditor, or (f) the taking of any other actions by a Creditor against any
Collateral, including (other than for purposes of perfection) the taking of control
or possession of, or the exercise of any right of setoff with respect to, any
Collateral.
	 
	 	(b)	 	Notwithstanding the provisions of Section 11(a) above, during any
Standstill Period, the Subordinated Creditor shall accept any cure of the applicable
Subordinated Default(s) proffered by the Senior Lender which restores the Subordinated
Creditor to the position it would have been but for such default or event of default.
	 
	 	(c)	 	Nothing contained in this Section 11 shall limit or impair the obligations and
agreements of the Subordinated Creditors set forth in any other Section of this
Agreement.

12. Assignments and Appointments. The Subordinated Creditor, for itself and its successors
and assigns, hereby irrevocably authorizes and directs the Senior Lender, and any trustee or debtor
in possession in bankruptcy, receiver, custodian or assignee for the benefit of creditors of the
Company, whether in voluntary or involuntary liquidation, dissolution or reorganization, on his or
its behalf, to take such action as may be necessary or appropriate to effectuate the subordination
provided for in this Agreement and irrevocably appoints the Senior Lender and any such trustee,
receiver, custodian or assignee, attorney-in-fact for such purpose with full powers of substitution
and revocation.

13. No Impairment. No right of the Senior Lender to enforce subordination as herein
provided shall at any time or in any way be affected or impaired by any failure to act on the part
of the Company, or by any non-compliance by the Company with any of the terms, provisions and
covenants of the agreement, documents and instruments evidencing the Subordinated Indebtedness,
regardless of any knowledge

7

 

thereof that the Senior Lender may have or be otherwise charged with, or by any action which the
Senior Lender may take or refrain from taking with respect to the Senior Indebtedness or the
Subordinated Indebtedness.

14. Further Assurances. In order to carry out the terms and intent of this Agreement more
effectively, each Creditor will take all actions and execute all further documents and instruments
reasonably necessary or convenient to preserve for the other party the benefits of this Agreement.

15. Waivers, etc. No action which the Senior Lender, or the Company with the consent of
the Senior Lender, may take or refrain from taking with respect to any Senior Indebtedness, or any
promissory note or notes representing the same, or any collateral therefor, including any waiver or
release thereof (or any waiver of any provision thereof or default of any agreement or agreements
(including guaranties) in connection therewith, shall affect this Agreement or the rights of the
Senior Lender or the obligations of the Subordinated Creditor hereunder. No waiver shall be deemed
to be made by the Senior Lender of any of its rights hereunder unless the same shall be in writing
and then only with respect to the specific instance involved, and shall in no way impair or offset
the rights of the Senior Lender or the obligations of the Subordinated Creditor in any other
respect or at any other time.

16. Notices.

	 	(a)	 	By the Senior Lender to the Subordinated Creditor. The Senior Lender shall
provide the Subordinated Creditor with notice of any Default simultaneously with giving
notice to the Company, provided that any failure by the Senior Lender to give such
notice shall not affect or limit the Senior Lender’s rights hereunder.
	 
	 	(b)	 	By the Subordinated Creditor to the Senior Lender. The Subordinated Creditor
shall provide the Senior Lender with notice of any Subordinated Default relating to any
Subordinated Indebtedness simultaneously with giving notice to the Company.
	 
	 	(c)	 	By the Company to the Senior Lender. The Company shall provide the Senior
Lender with copies of all notices of any Subordinated Default received by it from the
Subordinated Creditor immediately upon its receipt thereof.
	 
	 	(d)	 	By the Company to the Subordinated Creditor. The Company shall provide the
Subordinated Creditor with copies of all notices of any Default given by it to the
Senior Lender or received by it from the Senior Lender immediately upon its delivery or
receipt thereof.
	 
	 	(e)	 	Method. Except as otherwise provided herein, all demands or notices hereunder
shall be in writing and shall be deemed to have been sufficiently given or served for
all purposes hereof if personally delivered or mailed or transmitted by telecopy or
email if the sender on the same day sends a confirming copy of such communication by a
recognized overnight delivery services (charges prepaid), recognized overnight delivery
services (charges prepaid) or first class mail, postage prepaid, to them at their
respective addresses as set forth on the signature pages hereto and incorporated herein
by reference, or at such other address as the party to whom such notice is directed may
have designated in writing to the other party hereto. A notice shall be deemed to have
been given upon the earlier to occur of (i) three (3) days after the date on which it
is deposited in the U.S. mails or (ii) receipt by the party to whom such notice is
directed.

8

 

17. Miscellaneous. This Agreement shall be binding upon and shall inure to the benefit of
the Creditors and their respective heirs, legal representatives, successors and assigns (including
without limitation any transferee or refinancing lender of any Senior Indebtedness). The Senior
Lender may assign this Agreement or its rights thereunder without the consent of the Subordinated
Creditor or the Company. This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so executed and delivered
shall be an original, but all of the counterparts shall together constitute and the same
instrument.

18. Governing Law, Jurisdiction, Waiver of Jury Trial. This Agreement, including the
validity hereof and the rights and obligations of the parties hereunder, shall be construed in
accordance with and governed by the internal laws of the Commonwealth of Massachusetts (without
regard to conflicts of law principles). The Subordinated Creditor, to the extent that the
Subordinated Creditor may lawfully do so, hereby consents to service of process, and to be sued, in
the Commonwealth of Massachusetts and consents to the jurisdiction of the courts of the
Commonwealth of Massachusetts and the United States District Court for the District of
Massachusetts, as well as to the jurisdiction of all courts to which an appeal may be taken from
such courts, for the purpose of any suit, action or other proceeding arising out of any of the
Subordinated Creditor’s obligations hereunder or with respect to the transactions contemplated
hereby, and expressly waives any and all objections as to venue in any such courts. The
Subordinated Creditor further agrees that a summons and complaint commencing an action or
proceeding in any of such courts shall be properly served and confer personal jurisdiction if
served personally or by certified mail at the address set forth below under the signature of the
Subordinated Creditor or as otherwise provided under the laws of the Commonwealth of Massachusetts.
EACH OF THE COMPANY AND THE SUBORDINATED CREDITOR IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY
IN ANY SUIT, ACTION, OR OTHER PROCEEDING HEREAFTER INSTITUTED BY OR AGAINST IT IN RESPECT OF ITS
OBLIGATIONS HEREUNDER OR THE TRANSACTIONS CONTEMPLATED HEREBY.

19. Acknowledgment by Company. The Company covenants and agrees not to make any
distribution or payment to the Subordinated Creditor in violation of the terms of this Agreement.

20. Acknowledgement and Consent of Senior Lender. By execution hereof, and to the extent
required by the Loan Agreement, the Senior Lender hereby consents to the Company’s issuance of debt
under the Subordinated Debenture and to the entry into the Purchase Agreement, the Subordinated
Debenture, the Collateral Assignment of Lease entered into in connection with the Subordinated
Debenture and the transactions contemplated by the Purchase Agreement.

21. Legends. The Subordinated Creditor covenants and agrees that until all of the Senior
Indebtedness is Paid in Full in cash, the Subordinated Debenture and each promissory note or other
instrument evidencing the Subordinated Indebtedness and each security agreement relating to the
Subordinated Indebtedness shall bear at all times, in a conspicuous manner, the following legend:

     “THIS SUBORDINATED DEBENTURE AND THE INDEBTEDNESS EVIDENCED HEREBY ARE SUBORDINATE, IN THE
MANNER AND TO THE EXTENT SET FORTH IN (I) THAT SUBORDINATION AGREEMENT DATED AS OF AUGUST 26, 2010,
BY AND AMONG BAKERS FOOTWEAR GROUP, INC., STEVEN MADDEN, LTD., AND BANK OF AMERICA, N.A. (“BA”),
(II) THAT SUBORDINATION AGREEMENT DATED AS OF AUGUST 26, 2010, BY AND AMONG BAKERS FOOTWEAR GROUP,
INC., STEVEN MADDEN, LTD., AND PRIVATE EQUITY MANAGEMENT GROUP, INC. (“PEMG”), AND (III) THAT
SUBORDINATION AGREEMENT DATED AS OF AUGUST 26, 2010, BY AND AMONG BAKERS FOOTWEAR

9

 

GROUP, INC., STEVEN MADDEN, LTD., AND THE HOLDERS OF CERTAIN SUBORDINATED CONVERTIBLE
DEBENTURES DUE JUNE 30, 2012 AND DATED JUNE 26, 2007 IN THE AGGREGATE FACE AMOUNT OF $4,000,000
(THE “DEBENTURE HOLDERS”; TOGETHER WITH BA AND PEMG, THE “SENIOR LENDERS”) (AS AMENDED,
SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, COLLECTIVELY, THE “SUBORDINATION
AGREEMENTS”), TO ALL INDEBTEDNESS OWED BY THE MAKER OF THIS SUBORDINATED DEBENTURE TO THE SENIOR
LENDERS, AND THE HOLDER OF THIS SUBORDINATED DEBENTURE, BY ITS ACCEPTANCE HEREOF, SHALL BE BOUND BY
THE PROVISIONS OF THE SUBORDINATION AGREEMENTS.”

10

 

This Agreement is executed as a sealed instrument as of as of the date first written above.

	 	 	 	 	 
	COMPANY

BAKERS FOOTWEAR GROUP, INC.

 	 	 
	By:  	/s/
Peter Edison	 	 
	 	Name:  	Peter Edison 	 	 
	 	Title:  	Chief Executive Officer	 	 
	 	Address: 	 2815 Scott Avenue

St. Louis, Missouri 63103	 	 
	 	Telephone: 	314-621-0699 	 	 
	 	Telecopier: 	314-641-0390 	 	 
	 

	 	 	 	 	 
	SUBORDINATED CREDITOR

STEVEN MADDEN, LTD.

 	 	 
	By:  	/s/
Arvind Dharia	 	 
	 	Name:  	Arvind Dharia 	 	 
	 	Title:  	Chief Financial Officer	 	 
	 	Address: 	52-16 Barnett Avenue

Long Island City, New York 11104	 	 
	 	Telephone: 	718-446-1800	 	 
	 	
Telecopier: 	718-308-8201 	 	 
	 

[Signature Page to Subordination Agreement (Bank of America, N. A.)]

 

 

	 	 	 	 	 
	SENIOR LENDER

BANK OF AMERICA, N. A.

 	 	 
	By:  	/s/
David Storer	 	 
	 	Name:  	David Storer 	 	 
	 	Title:  	Vice President	 	 
	 	Address:	100 Federal Street, 9th Floor

Boston, Massachusetts 02110	 	 
	 	Telephone: 	617-434-1359	 	 
	 	Telecopier: 	617-434-4339 	 	 
	 

[Signature Page to Subordination Agreement (Bank of America, N. A.)]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]