Document:

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EXHIBIT 10.2

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT AS TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES
LAWS OR (B) AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

THIS NOTE IS REGISTERED WITH THE AGENT PURSUANT TO SECTION 11.4(B) OF THE
PURCHASE AGREEMENT (AS DEFINED BELOW). TRANSFER OF ALL OR ANY PORTION OF THIS
NOTE IS PERMITTED SUBJECT TO THE PROVISIONS SET FORTH IN SUCH SECTION 11.4(B)
WHICH REQUIRE, AMONG OTHER THINGS, THAT NO TRANSFER IS EFFECTIVE UNTIL THE
TRANSFEREE IS REFLECTED AS SUCH ON THE REGISTRY MAINTAINED WITH THE AGENT
PURSUANT TO SUCH SECTION 11.4(B).

                                SECURED TERM NOTE
                                -----------------

                  FOR VALUE RECEIVED, RETAIL PRO, INC., a Delaware corporation
(f/k/a Island Pacific, Inc.) (the "COMPANY") hereby promises to pay to Valens
Offshore SPV II, Corp. c/o Laurus Master Fund, Ltd. (the "HOLDER") or its
registered assigns or successors in interest, the sum of TWO MILLION FIVE
HUNDRED THOUSAND dollars ($2,500,000), together with any accrued and unpaid
interest hereon, on February 29, 2009 (the "MATURITY DATE") if not sooner
indefeasibly paid in full.

                  Capitalized terms used herein without definition shall have
the meanings ascribed to such terms in that certain Securities Purchase
Agreement dated as of the date hereof (as amended, restated, modified and/or
supplemented from time to time, the "PURCHASE AGREEMENT") among the Company, the
Holder, each other Purchaser and LV Administrative Services, Inc., as
administrative and collateral agent for the Purchasers (the "AGENT" together
with the Purchasers, collectively, the "CREDITOR PARTIES").

                  The following terms shall apply to this Secured Term Note
(this "NOTE"):

                                   ARTICLE I
                         CONTRACT RATE AND AMORTIZATION

                  1.1 CONTRACT RATE. Subject to Sections 2.2 and 3.9, interest
payable on the outstanding principal amount of this Note (the "PRINCIPAL
AMOUNT") shall accrue at a rate per annum equal to the "prime rate" published in
The Wall Street Journal from time to time (the "PRIME RATE"), plus two percent
(2.0%) (the "CONTRACT RATE"). The Contract Rate shall be increased or decreased
as the case may be for each increase or decrease in the Prime Rate in an amount
equal to such increase or decrease in the Prime Rate; each change to be
effective as of the day of the change in the Prime Rate. The Contract Rate shall
not at any time be less than nine and one half percent (9.50%). Interest shall
be (i) calculated on the basis of a 360 day year, and (ii) payable monthly, in
arrears, ("Monthly Amount") commencing on March 1, 2008, on the first business
day of each consecutive calendar month thereafter through and including the
Maturity Date, and on the Maturity Date, whether by acceleration or otherwise.

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                  1.2 CONTRACT RATE PAYMENTS. The Contract Rate shall be
calculated on the last business day of each calendar month hereafter (other than
for increases or decreases in the Prime Rate which shall be calculated and
become effective in accordance with the terms of Section 1.1) until the Maturity
Date and shall be subject to adjustment as set forth herein.

                  1.3 PRINCIPAL PAYMENTS. Any outstanding Principal Amount
together with any accrued and unpaid interest and any and all other unpaid
amounts which are then owing by the Company to the Holder under this Note, the
Purchase Agreement and/or any other Related Agreement shall be due and payable
on the Maturity Date.

                  1.4 OPTIONAL REDEMPTION. The Company may prepay this Note at
any time, in whole or in part, without penalty or premium. If within six (6)
months of the date of issue of this Note, the Company prepays in full the
Principal Amount outstanding at such time together with accrued but unpaid
interest thereon and any and all other sums due, accrued or payable to the
Holder arising under this Note, the Purchase Agreement or any other Related
Agreement (collectively, the "REDEMPTION AMOUNT"), upon receipt in full of the
Redemption Amount in good funds, the Holder will rebate to Company fifty percent
(50%) of any fees it received from the Company on the date of issue of this
Note. The Company shall deliver to the Holder a written notice of redemption
(the "NOTICE OF REDEMPTION") specifying the date for such Optional Redemption
(the "REDEMPTION PAYMENT DATE"), which date shall be ten (10) business days
after the date of the Notice of Redemption (the "REDEMPTION PERIOD"). On the
Redemption Payment Date, the Redemption Amount must be paid in good funds to the
Holder. In the event the Company fails to pay the Redemption Amount on the
Redemption Payment Date as set forth herein, then such Redemption Notice will be
null and void. If any Notes issued pursuant to the Purchase Agreement, in
addition to this Note, are outstanding (collectively, the "OUTSTANDING NOTES")
and the Company pursuant to this Section 1.4 elects to make an Optional
Redemption, then the Company shall take the same action with respect to all
Outstanding Notes and make such payments to all holders of Outstanding Notes on
a pro rata basis based upon the Redemption Amount of each Outstanding Note.

                  1.5 MANDATORY PREPAYMENT. Reference is hereby made to that
certain Vendor Loan Agreement dated as of December 21, 2007 by and among the
Company, 3Q Holdings Limited ("3Q"), Island Pacific (UK) Limited and Applied
Retail Solutions, Inc. (the "3Q Loan Agreement") which, among other things, sets
for the certain agreements relating to the finance by the Company of $3,000,000
of the purchase price for assets of the Company acquired by 3Q, Island Pacific
(UK) Limited and Applied Retail Solutions, Inc. (collectively, the "Acquisition
Borrowers") pursuant to and Asset Purchase Agreement dated October 31, 2007 by
and among the parties thereto. Simultaneously upon receipt by the Company of
payment of any amounts due to Company under the 3Q Loan Agreement (each a "3Q
Loan Payment"), the Company shall prepay this Note plus any accrued and unpaid
interest, penalties and/or fees without penalty of any kind by the corresponding
amount of each such 3Q Loan Payment.

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                                   ARTICLE II
                                EVENTS OF DEFAULT

                  2.1 EVENTS OF DEFAULT. The occurrence of any of the following
events set forth in this Section 2.1 shall constitute an event of default
("EVENT OF DEFAULT") hereunder:

                        (a) FAILURE TO PAY. The Company fails to pay when due
any installment of principal, interest or other fees hereon in accordance
herewith, or the Company fails to pay any of the other Obligations (under and as
defined in the Master Security Agreement) when due, and, in any such case, such
failure shall continue for a period of three (3) days following the date upon
which any such payment was due;

                        (b) BREACH OF COVENANT. The Company or any of its
Subsidiaries breaches any covenant or any other term or condition of this Note
in any material respect and such breach, if subject to cure, continues for a
period of fifteen (15) days after the occurrence thereof; provided however, that
if by the nature of the breach it cannot be cured within fifteen (15) days and
in the commercially reasonable opinion of the Holder reasonable curative action
has been commenced with such fifteen (15) days, upon written notice to and
consent of Holder, the Company will have a commercially reasonable amount of
time to cure such breach before it shall be deemed an Event of Default.

                        (c) BREACH OF REPRESENTATIONS AND WARRANTIES. Any
representation, warranty or statement made or furnished by the Company or any of
its Subsidiaries in this Note, the Purchase Agreement or any other Related
Agreement shall at any time be false or misleading in any material respect on
the date as of which made or deemed made if such representation or warranty
expressly states that it is made as of a specific date.

                        (d) DEFAULT UNDER OTHER AGREEMENTS. The occurrence of
any default (or similar term) in the observance or performance of any other
agreement or condition relating to any indebtedness or contingent obligation of
the Company or any of its Subsidiaries (including, without limitation, the
Subordinated Debt (as defined below)) beyond the period of grace (if any), the
effect of which default is to cause, or permit the holder or holders of such
indebtedness or beneficiary or beneficiaries of such contingent obligation to
cause, such indebtedness to become due prior to its stated maturity or such
contingent obligation to become payable;

                        (e) MATERIAL ADVERSE EFFECT. Any change or the
occurrence of any event which could reasonably be expected to have a Material
Adverse Effect;

                        (f) BANKRUPTCY. The Company or any of its Subsidiaries
shall (i) apply for, consent to or suffer to exist the appointment of, or the
taking of possession by, a receiver, custodian, trustee or liquidator of itself
or of all or a substantial part of its property, (ii) make a general assignment
for the benefit of creditors, (iii) commence a voluntary case under the federal
bankruptcy laws (as now or hereafter in effect), (iv) be adjudicated a bankrupt
or insolvent, (v) file a petition seeking to take advantage of any other law
providing for the relief of debtors, (vi) acquiesce to, without challenge within
ten (10) days of the filing thereof, or failure to have dismissed, within thirty
(30) days, any petition filed against it in any involuntary case under such
bankruptcy laws, or (vii) take any action for the purpose of effecting any of
the foregoing;

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                        (g) JUDGMENTS. Attachments or levies in excess of
$250,000 in the aggregate are made upon the Company or any of its Subsidiary's
assets or a judgment is rendered against the Company's property involving a
liability of more than $250,000 which shall not have been vacated, discharged,
stayed or bonded within thirty (30) days from the entry thereof;

                        (h) INSOLVENCY. The Company or any of its Subsidiaries
shall admit in writing its inability, or be generally unable, to pay its debts
as they become due or cease operations of its present business;

                        (i) CHANGE OF CONTROL. A Change of Control (as defined
below) shall occur with respect to the Company, unless Holder shall have
expressly consented to such Change of Control in writing. A "Change of Control"
shall mean any event or circumstance as a result of which (i) any "Person" or
"group" (as such terms are defined in Sections 13(d) and 14(d) of the Exchange
Act, as in effect on the date hereof), other than the Holder, is or becomes the
"beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange
Act), directly or indirectly, of 35% or more on a fully diluted basis of the
then outstanding voting equity interest of the Company (other than a "Person" or
"group" that beneficially owns 35% or more of such outstanding voting equity
interests of the Company on the date hereof), (ii) the Board of Directors of the
Company shall cease to consist of a majority of the Company's board of directors
on the date hereof (or directors appointed by a majority of the board of
directors in effect immediately prior to such appointment) or (iii) the Company
or any of its Subsidiaries merges or consolidates with, or sells all or
substantially all of its assets to, any other person or entity;

                        (j) INDICTMENT; PROCEEDINGS. The indictment or
threatened indictment of the Company or any of its Subsidiaries or any executive
officer of the Company or any of its Subsidiaries under any criminal statute, or
commencement or threatened commencement of criminal or civil proceeding against
the Company or any of its Subsidiaries or any executive officer of the Company
or any of its Subsidiaries pursuant to which statute or proceeding penalties or
remedies sought or available include forfeiture of any of the property of the
Company or any of its Subsidiaries;

                        (k) THE PURCHASE AGREEMENT AND RELATED AGREEMENTS. (i)
An Event of Default shall occur under and as defined in the Purchase Agreement
or any other Related Agreement, (ii) the Company or any of its Subsidiaries
shall breach any term or provision of the Purchase Agreement or any other
Related Agreement in any material respect and such breach, if capable of cure,
continues unremedied for a period of fifteen (15) days after the occurrence
thereof (unless by the terms of any such agreement a longer period is
contemplated), (iii) the Company or any of its Subsidiaries attempts to
terminate, challenges the validity of, or its liability under, the Purchase
Agreement or any Related Agreement, (iv) any proceeding shall be brought to
challenge the validity, binding effect of the Purchase Agreement or any Related
Agreement or (v) the Purchase Agreement or any Related Agreement ceases to be a
valid, binding and enforceable obligation of the Company or any of its
Subsidiaries (to the extent such persons or entities are a party thereto);

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                        (l) STOP TRADE. An SEC stop trade ordershall be in
effect for five (5) consecutive days or five (5) days during a period of ten
(10) consecutive days, excluding in all cases a suspension of all trading on a
Principal Market, provided that the Company shall not have been able to cure
such trading suspension within thirty (30) days of the notice thereof or list
the Common Stock on another Principal Market within sixty (60) days of such
notice; or

 INTENTIONALLY OMITTED

                        (m) SUBORDINATED DEBT. The Company or any of its
Subsidiaries shall take or participate in any action which would be prohibited
under the provisions of any subordination agreement governing any indebtedness
for borrowed money of the Company or any of its Subsidiaries which has been or
may be subordinated in right of payment to the obligations hereunder
("SUBORDINATED DEBT") or wrongfully makes any payment on the Subordinated Debt
to a person or entity that was not entitled to receive such payments under the
provisions of any subordination agreement governing such Subordinated Debt.

                  2.2 DEFAULT INTEREST. Following the occurrence and during the
continuance of an Event of Default, the Company shall pay additional interest on
the outstanding principal balance of this Note in an amount equal to one and a
half percent (1.5%) per month, and all outstanding obligations under this Note,
the Purchase Agreement and each other Related Agreement, including unpaid
interest, shall continue to accrue interest at such additional interest rate
from the date of such Event of Default until the date such Event of Default is
cured or waived.

                  2.3 DEFAULT PAYMENT. Following the occurrence and during the
continuance of an Event of Default, the Agent may demand repayment in full of
all obligations and liabilities owing by the Company to the Holder under this
Note, the Purchase Agreement and/or any other Related Agreement and/or may
elect, in addition to all rights and remedies of the Agent under the Purchase
Agreement and the other Related Agreements and all obligations and liabilities
of the Company under the Purchase Agreement and the other Related Agreements, to
require the Company to make a Default Payment ("DEFAULT PAYMENT"). The Default
Payment shall be one hundred twenty five percent (125%) of the outstanding
principal amount of this Note, plus accrued but unpaid interest, all other fees
then remaining unpaid, and all other amounts payable hereunder. The Default
Payment shall be due and payable immediately on the date that the Agent has
demanded payment of the Default Payment pursuant to this Section 2.3. If in
respect to any Event of Default, the Company cures the Event of Default, the
Event of Default will be deemed to no longer exist any rights or remedies of
Holder pertaining to such Event of Default will be of no further force or
effect.

                                  ARTICLE III
                                  MISCELLANEOUS

                  3.1 CUMULATIVE REMEDIES. The remedies under this Note shall be
cumulative.

                  3.2 FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on
the part of the Holder hereof in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further

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exercise thereof or of any other right, power or privilege. All rights and
remedies existing hereunder are cumulative to, and not exclusive of, any rights
or remedies otherwise available.

                  3.3 NOTICES. Any notice herein required or permitted to be
given shall be given in writing in accordance with the terms of the Purchase
Agreement.

                  3.4 AMENDMENT PROVISION. The term "NOTE" and all references
thereto, as used throughout this instrument, shall mean this instrument as
originally executed, or if later amended or supplemented, then as so amended or
supplemented, and any successor instrument as such successor instrument may be
amended or supplemented.

                  3.5 ASSIGNABILITY. This Note shall be binding upon the Company
and its successors and assigns, and shall inure to the benefit of the Holder and
its successors and assigns, and may be assigned by the Holder in accordance with
the requirements of the Purchase Agreement. The Company may not assign any of
its obligations under this Note without the prior written consent of the Holder,
any such purported assignment without such consent being null and void.

                  3.6 COST OF COLLECTION. In case of the occurrence of an Event
of Default under this Note, the Company shall pay the Holder the Holder's
reasonable costs of collection, including reasonable attorneys' fees.

                  3.7 GOVERNING LAW, JURISDICTION AND WAIVER OF JURY TRIAL.

                        (a) THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

                        (b) THE COMPANY HEREBY CONSENTS AND AGREES THAT THE
STATE AND/OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK
SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES
BETWEEN THE COMPANY, ON THE ONE HAND, AND THE HOLDER AND/OR ANY OTHER CREDITOR
PARTY, ON THE OTHER HAND, PERTAINING TO THIS NOTE OR ANY OF THE OTHER RELATED
AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS NOTE OR ANY OF THE
RELATED AGREEMENTS; PROVIDED, THAT THE COMPANY ACKNOWLEDGES THAT ANY APPEALS
FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY
OF NEW YORK, STATE OF NEW YORK; AND FURTHER PROVIDED, THAT NOTHING IN THIS NOTE
SHALL BE DEEMED OR OPERATE TO PRECLUDE THE HOLDER AND/OR ANY OTHER CREDITOR
PARTY FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION
TO COLLECT THE OBLIGATIONS (AS DEFINED IN THE MASTER SECURITY AGREEMENT), TO
REALIZE ON THE COLLATERAL (AS DEFINED IN THE MASTER SECURITY AGREEMENT) OR ANY
OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT
ORDER IN FAVOR OF THE HOLDER AND/OR ANY OTHER CREDITOR PARTY. THE COMPANY

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EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR
SUIT COMMENCED IN ANY SUCH COURT, AND THE COMPANY HEREBY WAIVES ANY OBJECTION
WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR
FORUM NON CONVENIENS. THE COMPANY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS,
COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT
SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED
OR CERTIFIED MAIL ADDRESSED TO THE COMPANY AT THE ADDRESS SET FORTH IN THE
PURCHASE AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE
EARLIER OF THE COMPANY'S ACTUAL RECEIPT THEREOF OR THREE (3) BUSINESS DAYS AFTER
DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID.

                        (c) THE COMPANY DESIRES THAT ITS DISPUTES BE RESOLVED BY
A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST
COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND/OR OF ARBITRATION, THE
COMPANY HERETO WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR
OTHERWISE BETWEEN THE HOLDER AND/OR ANY OTHER CREDITOR PARTY, ON THE ONE HAND,
AND THE COMPANY, ON THE OTHER HAND, ARISING OUT OF, CONNECTED WITH, RELATED OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS
NOTE, ANY OTHER RELATED AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

                  3.8 SEVERABILITY. In the event that any provision of this Note
is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision of this
Note.

                  3.9 MAXIMUM PAYMENTS. Nothing contained herein shall be deemed
to establish or require the payment of a rate of interest or other charges in
excess of the maximum permitted by applicable law. In the event that the rate of
interest required to be paid or other charges hereunder exceed the maximum rate
permitted by such law, any payments in excess of such maximum rate shall be
credited against amounts owed by the Company to the Holder and thus refunded to
the Company.

                  3.10 SECURITY INTEREST. The Agent, for the ratable benefit of
the Creditor Parties, has been granted a security interest in certain assets of
the Company as more fully described in the Master Security Agreement and the
other Related Agreements.

                  3.11 CONSTRUCTION; COUNTERPARTS. Each party acknowledges that
its legal counsel participated in the preparation of this Note and, therefore,
stipulates that the rule of construction that ambiguities are to be resolved
against the drafting party shall not be applied in the interpretation of this
Note to favor any party against the other. This Note may be executed by the

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parties hereto in one or more counterparts, each of which shall be deemed an
original and all of which when taken together shall constitute one and the same
instrument. Any signature delivered by a party by facsimile or electronic
transmission shall be deemed to be an original signature hereto.

                  3.12 REGISTERED OBLIGATION. This Note shall be registered (and
such registration shall thereafter be maintained) as set forth in Section
11.4(b) of the Purchase Agreement. Notwithstanding any document, instrument or
agreement relating to this Note to the contrary, transfer of this Note (or the
right to any payments of principal or stated interest thereunder) may only be
effected by (i) surrender of this Note and either the reissuance by the Company
of this Note to the new holder or the issuance by the Company of a new
instrument to the new holder or (ii) registration of such holder as an assignee
in accordance with Section 11.4(b) of the Purchase Agreement.

       [Balance of page intentionally left blank; signature page follows]

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                  IN WITNESS WHEREOF, the Company has caused this Secured Term
Note to be signed in its name effective as of this 29th day of February, 2008.

                                        RETAIL PRO, INC.

                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

WITNESS:

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

                                       9<PAGE>

EXHIBIT 10.3

         THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF
         THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
         AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON
         STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED
         FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (A) AN EFFECTIVE
         REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT AND ANY
         APPLICABLE STATE SECURITIES LAWS OR (B) AN EXEMPTION FROM SUCH
         REGISTRATION REQUIREMENTS.

          Right to Purchase up to 15,000,000 Shares of Common Stock of
                                Retail Pro, Inc.
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. _________________                             Issue Date:  February 28, 2008

         Retail Pro, Inc., a corporation organized under the laws of the State
of Delaware (f/k/a Island Pacific, Inc.) (the "COMPANY"), hereby certifies that,
for value received, VALENS OFFSHORE SPV II, CORP., or assigns (the "HOLDER"), is
entitled, subject to the terms set forth below, to purchase from the Company (as
defined herein) from and after the Issue Date of this Warrant and at any time or
from time to time before 5:00 p.m., New York time, through the close of business
February 28, 2018 (the "EXPIRATION DATE"), up to 15,000,000 fully paid and
non-assessable shares of Common Stock (as hereinafter defined), $0.0001 par
value per share, at the applicable Exercise Price per share (as defined below).
The number and character of such shares of Common Stock and the applicable
Exercise Price per share are subject to adjustment as provided herein.

         As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:

                  (a) COMMON STOCK" means (i) the Company's Common Stock, par
         value $0.0001 per share; and (ii) any other securities into which or
         for which any of the securities described in the preceding clause (i)
         may be converted or exchanged pursuant to a plan of recapitalization,
         reorganization, merger, sale of assets or otherwise.

                  (b) "COMPANY" means Retail Pro, Inc. and any person or entity
         which shall succeed, or assume the obligations of, Retail Pro, Inc.
         hereunder.

                           (i) "EXERCISE PRICE" means a price of $0.01 per
share.

                  (c) "OTHER SECURITIES" means any stock (other than Common
         Stock) and other securities of the Company or any other person
         (corporate or otherwise) which the Holder at any time shall be entitled
         to receive, or shall have received, on the exercise of this Warrant, in
         lieu of or in addition to Common Stock, or which at any time shall be
         issuable or shall have been issued in exchange for or in replacement of
         Common Stock or Other Securities pursuant to Section 4 or otherwise.

<PAGE>

                  (d) "PURCHASE AGREEMENT" means the Securities Purchase
         Agreement dated as of the date hereof among the Company, the Holder,
         the other Purchasers (as defined therein) from time to time party
         thereto and LV Administrative Services, Inc., as administrative and
         collateral agent for the Purchasers (as defined therein), as amended,
         modified, restated and/or supplemented from time to time.

         1. EXERCISE OF WARRANT.

                  1.1 NUMBER OF SHARES ISSUABLE UPON EXERCISE. From and after
the date hereof through and including the Expiration Date, the Holder shall be
entitled to receive, upon exercise of this Warrant in whole or in part, by
delivery of an original or fax copy of an exercise notice in the form attached
hereto as EXHIBIT A (the "EXERCISE NOTICE"), shares of Common Stock of the
Company, subject to adjustment pursuant to Section 4.

                  1.2 FAIR MARKET VALUE. For purposes hereof, the "Fair Market
Value" of a share of Common Stock as of a particular date (the "DETERMINATION
DATE") shall mean:

                           (a) If the Company's Common Stock is traded on the
         American Stock Exchange or another national exchange or is quoted on
         the National or Capital Market of The Nasdaq Stock Market, Inc.
         ("NASDAQ"), then the closing or last sale price, respectively, reported
         for the last business day immediately preceding the Determination Date.

                           (b) If the Company's Common Stock is not traded on
         the American Stock Exchange or another national exchange or on the
         Nasdaq but is traded on the NASD Over The Counter Bulletin Board, then
         the mean of the average of the closing bid and asked prices reported
         for the last business day immediately preceding the Determination Date.

                           (c) Except as provided in clause (d) below, if the
         Company's Common Stock is not publicly traded, then as the Holder and
         the Company agree or in the absence of agreement by arbitration in
         accordance with the rules then in effect of the American Arbitration
         Association, before a single arbitrator to be chosen from a panel of
         persons qualified by education and training to pass on the matter to be
         decided.

                           (d) If the Determination Date is the date of a
         liquidation, dissolution or winding up, or any event deemed to be a
         liquidation, dissolution or winding up pursuant to the Company's
         charter, then all amounts to be payable per share to holders of the
         Common Stock pursuant to the charter in the event of such liquidation,
         dissolution or winding up, plus all other amounts to be payable per
         share in respect of the Common Stock in liquidation under the charter,
         assuming for the purposes of this clause (d) that all of the shares of
         Common Stock then issuable upon exercise of this Warrant are
         outstanding at the Determination Date.

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<PAGE>

                  1.3 COMPANY ACKNOWLEDGMENT. The Company will, at the time of
the exercise of this Warrant, upon the request of the Holder acknowledge in
writing its continuing obligation to afford to the Holder any rights to which
the Holder shall continue to be entitled after such exercise in accordance with
the provisions of this Warrant. If the Holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the Company
to afford to the Holder any such rights.

                  1.4 TRUSTEE FOR WARRANT HOLDERS. In the event that a bank or
trust company shall have been appointed as trustee for the Holder pursuant to
Subsection 3.2, such bank or trust company shall have all the powers and duties
of a warrant agent (as hereinafter described) and shall accept, in its own name
for the account of the Company or such successor person as may be entitled
thereto, all amounts otherwise payable to the Company or such successor, as the
case may be, on exercise of this Warrant pursuant to this Section 1.

         2. PROCEDURE FOR EXERCISE.

                  2.1 DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE. The
Company agrees that the shares of Common Stock purchased upon exercise of this
Warrant shall be deemed to be issued to the Holder as the record owner of such
shares as of the close of business on the date on which this Warrant shall have
been surrendered and payment made for such shares in accordance herewith. As
soon as practicable after the exercise of this Warrant in full or in part, and
in any event within three (3) business days thereafter, the Company at its
expense (including the payment by it of any applicable issue taxes) will cause
to be issued in the name of and delivered to the Holder, or as the Holder (upon
payment by the Holder of any applicable transfer taxes) may direct in compliance
with applicable securities laws, a certificate or certificates for the number of
duly and validly issued, fully paid and non-assessable shares of Common Stock
(or Other Securities) to which the Holder shall be entitled on such exercise,
plus, in lieu of any fractional share to which the Holder would otherwise be
entitled, cash equal to such fraction multiplied by the then Fair Market Value
of one full share, together with any other stock or other securities and
property (including cash, where applicable) to which the Holder is entitled upon
such exercise pursuant to Section 1 or otherwise.

                  2.2      EXERCISE.

                           (a) Payment may be made either (i) in cash by wire
         transfer of immediately available funds or by certified or official
         bank check payable to the order of the Company equal to the applicable
         aggregate Exercise Price, (ii) by delivery of this Warrant, or shares
         of Common Stock and/or Common Stock receivable upon exercise of this
         Warrant in accordance with the formula set forth in subsection (b)
         below, or (iii) by a combination of any of the foregoing methods, for
         the number of shares of Common Stock specified in such Exercise Notice
         (as such exercise number shall be adjusted to reflect any adjustment in
         the total number of shares of Common Stock issuable to the Holder per
         the terms of this Warrant) and the Holder shall thereupon be entitled
         to receive the number of duly authorized, validly issued, fully-paid
         and non-assessable shares of Common Stock (or Other Securities)
         determined as provided herein.

                                       3
<PAGE>

                           (b) Notwithstanding any provisions herein to the
         contrary, if the Fair Market Value of one share of Common Stock is
         greater than the Exercise Price (at the date of calculation as set
         forth below), in lieu of exercising this Warrant for cash, the Holder
         may elect to receive shares equal to the value (as determined below) of
         this Warrant (or the portion thereof being exercised) by surrender of
         this Warrant at the principal office of the Company together with the
         properly endorsed Exercise Notice in which event the Company shall
         issue to the Holder a number of shares of Common Stock computed using
         the following formula:

         X=                  Y(A-B)
                             ------
                               A

         Where X =           the number of shares of Common Stock to be
                             issued to the Holder

         Y =                 the number of shares of Common Stock purchasable
                             under this Warrant or, if only a portion of this
                             Warrant is being exercised, the portion of this
                             Warrant being exercised (at the date of such
                             calculation)

         A =                 the Fair Market Value of one share of the Company's
                             Common Stock (at the date of such calculation)

         B =                 the Exercise Price per share (as adjusted to the
                             date of such calculation)

         3. EFFECT OF REORGANIZATION, ETC.; ADJUSTMENT OF EXERCISE PRICE.

                  3.1 REORGANIZATION, CONSOLIDATION, MERGER, ETC. If there
occurs any capital reorganization or any reclassification of the Common Stock of
the Company, the consolidation or merger of the Company with or into another
person (other than a merger or consolidation of the Company in which the Company
is the continuing entity and which does not result in any reorganization or
reclassification of its outstanding Common Stock) or the sale or conveyance of
all or substantially all of the assets of the Company to another person, then,
as a condition precedent to any such reorganization, reclassification,
consolidation, merger, sale or conveyance, the Holder will be entitled to
receive upon surrender of this Warrant to the Company (x) to the extent there
are cash proceeds resulting from the consummation of such reorganization,
reclassification, consolidation, merger, sale or conveyance, in exchange for
such Warrant, cash in an amount equal to the cash proceeds that would have been
payable to the Holder had the Holder exercised such Warrant immediately prior to
the consummation of such reorganization, reclassification, consolidation,
merger, sale or conveyance, less the aggregate Exercise Price payable upon
exercise of this Warrant, and (y) to the extent that the Holder would be
entitled to receive Common stock (or Other Securities) (in addition to or in
lieu of cash in connection with any such reorganization, reclassification,
consolidation, merger, sale or conveyance), the same kind and amounts of
securities or other assets, or both, that are issuable or distributable to the
holders of outstanding Common Stock (or Other Securities) of the Company with
respect to their Common Stock (or Other Securities) upon such reorganization,
reclassification, consolidation, merger, sale or conveyance, as would have been
deliverable to the Holder had the Holder exercised such Warrant immediately
prior to the consummation of such reorganization, reclassification,
consolidation, merger, sale or conveyance less an amount of such securities
having a value equal to the aggregate Exercise Price payable upon exercise of
this Warrant.

                                       4
<PAGE>

                  3.2 DISSOLUTION. In the event of any dissolution of the
Company following the transfer of all or substantially all of its properties or
assets, the Company, concurrently with any distributions made to holders of its
Common Stock, shall at its expense deliver or cause to be delivered to the
Holder the stock and other securities and property (including cash, where
applicable) receivable by the Holder pursuant to Section 3.1, or, if the Holder
shall so instruct the Company, to a bank or trust company specified by the
Holder and having its principal office in New York, NY as trustee for the Holder
(the "TRUSTEE").

                  3.3 CONTINUATION OF TERMS. Upon any reorganization,
consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this Section 3, this Warrant shall continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and other
securities and property receivable on the exercise of this Warrant after the
consummation of such reorganization, consolidation or merger or the effective
date of dissolution following any such transfer, as the case may be, and shall
be binding upon the issuer of any such stock or other securities, including, in
the case of any such transfer, the person acquiring all or substantially all of
the properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in Section 4. In the
event this Warrant does not continue in full force and effect after the
consummation of the transactions described in this Section 3, then the Company's
securities and property (including cash, where applicable) receivable by the
Holder will be delivered to the Holder or the Trustee as contemplated by Section
3.2.

         4. EXTRAORDINARY EVENTS REGARDING COMMON STOCK. In the event that the
Company shall (a) issue additional shares of the Common Stock as a dividend or
other distribution on outstanding Common Stock or any preferred stock issued by
the Company, (b) subdivide its outstanding shares of Common Stock, (c) combine
its outstanding shares of the Common Stock into a smaller number of shares of
the Common Stock, then, in each such event, the number of shares of Common Stock
that the Holder shall thereafter, on the exercise hereof as provided in Section
1, be entitled to receive shall be adjusted to a number determined by
multiplying the number of shares of Common Stock that would otherwise (but for
the provisions of this Section 4) be issuable on such exercise by a fraction of
which (a) the numerator is the number of issued and outstanding shares of Common
Stock immediately after such Event, and (b) the denominator is the number of
issued and outstanding shares of Common Stock immediately prior to such Event.

         5. CERTIFICATE AS TO ADJUSTMENTS. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of this Warrant, the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or readjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or Other

                                       5
<PAGE>

Securities) outstanding or deemed to be outstanding, and (c) the Exercise Price
and the number of shares of Common Stock to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith
mail a copy of each such certificate to the Holder and any warrant agent of the
Company (appointed pursuant to Section 11 hereof).

         6. RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF WARRANT. The
Company will at all times reserve and keep available, solely for issuance and
delivery on the exercise of this Warrant, shares of Common Stock (or Other
Securities) from time to time issuable on the exercise of this Warrant.

         7. ASSIGNMENT; EXCHANGE OF WARRANT. Subject to compliance with
applicable securities laws, this Warrant, and the rights evidenced hereby, may
be transferred by any registered holder hereof (a "TRANSFEROR") in whole or in
part. On the surrender for exchange of this Warrant, with the Transferor's
endorsement in the form of EXHIBIT B attached hereto (the "TRANSFEROR
ENDORSEMENT FORM") and together with evidence reasonably satisfactory to the
Company demonstrating compliance with applicable securities laws, which shall
include, without limitation, a legal opinion from the Transferor's counsel (at
the Company's expense) that provides that such transfer is exempt from the
registration requirements of applicable securities laws, the Company at its
expense (but with payment by the Transferor of any applicable transfer taxes)
will issue and deliver to or on the order of the Transferor thereof a new
Warrant of like tenor, in the name of the Transferor and/or the transferee(s)
specified in such Transferor Endorsement Form (each a "TRANSFEREE"), calling in
the aggregate on the face or faces thereof for the number of shares of Common
Stock called for on the face or faces of this Warrant so surrendered by the
Transferor.

         8. REPLACEMENT OF WARRANT. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction of this
Warrant, on delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of this Warrant, the Company at its
expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

         9. MAXIMUM EXERCISE. Notwithstanding anything herein to the contrary,
in no event shall the Holder be entitled to exercise any portion of this Warrant
in excess of that portion of this Warrant upon exercise of which the sum of (1)
the number of shares of Common Stock beneficially owned by the Holder and its
Affiliates (other than shares of Common Stock which may be deemed beneficially
owned through the ownership of the unexercised portion of this Warrant or the
unexercised or unconverted portion of any other security of the Holder subject
to a limitation on conversion analogous to the limitations contained herein) and
(2) the number of shares of Common Stock issuable upon the exercise of the
portion of this Warrant with respect to which the determination of this proviso
is being made, would result in beneficial ownership by the Holder and its
Affiliates of any amount greater than 9.99% of the then outstanding shares of
Common Stock (whether or not, at the time of such exercise, the Holder and its
Affiliates beneficially own more than 9.99% of the then outstanding shares of
Common Stock). As used herein, the term "AFFILIATE" means any person or entity
that, directly or indirectly through one or more intermediaries, controls or is

                                       6
<PAGE>

controlled by or is under common control with a person or entity, as such terms
are used in and construed under Rule 144 under the Securities Act of 1933, as
amended. For purposes of the second preceding sentence, beneficial ownership
shall be determined in accordance with Section 13(d) of the Securities Exchange
Act of 1934, as amended, and Regulations 13D-G thereunder, except as otherwise
provided in clause (1) of such sentence. For any reason at any time, upon
written or oral request of the Holder, the Company shall within one (1) business
day confirm orally and in writing to the Holder the number of shares of Common
Stock outstanding as of any given date. The limitations set forth herein (x)
shall automatically become null and void following notice to the Company upon
the occurrence and during the continuance of an Event of Default (as defined in
the Security Agreement)(as defined in the Note referred to in the Purchase
Agreement) and (y) may be waived by the Holder upon provision of no less than
sixty-one (61) days prior written notice to the Company; provided, however,
that, such written notice of waiver shall only be effective if delivered at a
time when no indebtedness (including, without limitation, principal, interest,
fees and charges) of the Company of which the Holder or any of its Affiliates
was, at any time, the owner, directly or indirectly is outstanding.

         10. WARRANT AGENT. The Company may, by written notice to the Holder of
this Warrant, appoint an agent for the purpose of issuing Common Stock (or Other
Securities) on the exercise of this Warrant pursuant to Section 1, exchanging
this Warrant pursuant to Section 7, and replacing this Warrant pursuant to
Section 8, or any of the foregoing, and thereafter any such issuance, exchange
or replacement, as the case may be, shall be made at such office by such agent.

         11. TRANSFER ON THE COMPANY'S BOOKS. Until this Warrant is transferred
on the books of the Company, the Company may treat the registered holder hereof
as the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.

         12. RIGHTS OF SHAREHOLDERS. No Holder shall be entitled to vote or
receive dividends or be deemed the holder of the shares of Common Stock or any
other securities of the Company which may at any time be issuable upon exercise
of this Warrant for any purpose (the "WARRANT SHARES"), nor shall anything
contained herein be construed to confer upon the Holder, as such, any of the
rights of a shareholder of the Company or any right to vote for the election of
directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action (whether upon the
recapitalization, issuance of shares, reclassification of shares, change of
nominal value, consolidation, merger, conveyance or otherwise) or to receive
notice of meetings, or to receive dividends or subscription rights or otherwise,
in each case, until the earlier to occur of (x) the date of actual delivery to
Holder (or its designee) of the Warrant Shares issuable upon the exercise hereof
or (y) the third business day following the date such Warrant Shares first
become deliverable to Holder, as provided herein.

         13. NOTICES, ETC. All notices and other communications from the Company
to the Holder shall be mailed by first class registered or certified mail,
postage prepaid, at such address as may have been furnished to the Company in
writing by the Holder from time to time.

         14. MISCELLANEOUS. This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination

                                       7
<PAGE>

is sought. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS. ANY ACTION BROUGHT CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS
WARRANT SHALL BE BROUGHT ONLY IN THE STATE COURTS OF NEW YORK OR IN THE FEDERAL
COURTS LOCATED IN THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT THE HOLDER MAY
CHOOSE TO WAIVE THIS PROVISION AND BRING AN ACTION OUTSIDE THE STATE OF NEW
YORK. The individuals executing this Warrant on behalf of the Company agree to
submit to the jurisdiction of such courts and waive trial by jury. The
prevailing party shall be entitled to recover from the other party its
reasonable attorneys' fees and costs. In the event that any provision of this
Warrant is invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision
of this Warrant. The headings in this Warrant are for purposes of reference
only, and shall not limit or otherwise affect any of the terms hereof. The
invalidity or unenforceability of any provision hereof shall in no way affect
the validity or enforceability of any other provision hereof. The Company
acknowledges that legal counsel participated in the preparation of this Warrant
and, therefore, stipulates that the rule of construction that ambiguities are to
be resolved against the drafting party shall not be applied in the
interpretation of this Warrant to favor any party against the other party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

                                       8
<PAGE>

         IN WITNESS WHEREOF, the Company has executed this Warrant as of the
date first written above.

WITNESS:                                      RETAIL PRO, INC.

                                              By:
---------------------------                       ------------------------------
                                                  Name:
                                                  Title:

                                                               SIGNATURE PAGE TO
                                                   COMMON STOCK PURCHASE WARRANT

<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION

                   (To Be Signed Only On Exercise Of Warrant)

To:      Retail Pro, Inc.
         _____________________
         _____________________
         Attention:

         The undersigned, pursuant to the provisions set forth in the attached
Warrant (No.____) (the "WARRANT"), hereby irrevocably elects to purchase (check
applicable box):

____     ________ shares of the common stock covered by the Warrant; or

____     the maximum number of shares of common stock covered by the Warrant
         pursuant to the cashless exercise procedure set forth in Section 2 of
         the Warrant.

         The undersigned herewith makes payment of the full Exercise Price for
such shares at the price per share provided for in the Warrant, which is
$___________. Such payment takes the form of (check applicable box or boxes):

____     $__________ in lawful money of the United States; and/or

____     the cancellation of such portion of the Warrant as is exercisable for a
         total of _______ shares of Common Stock (using a Fair Market Value of
         $_______ per share for purposes of this calculation); and/or

____     the cancellation of such number of shares of Common Stock as is
         necessary, in accordance with the formula set forth in Section 2.2 of
         the Warrant, to exercise this Warrant with respect to the maximum
         number of shares of Common Stock purchasable pursuant to the cashless
         exercise procedure set forth in Section 2 of the Warrant.

         The undersigned requests that the certificates for such shares be
issued in the name of, and delivered to_________________________________________
whose address is_______________________________________________________________.

         The undersigned represents and warrants that all offers and sales by
the undersigned of the securities issuable upon exercise of the Warrant shall be
made pursuant to registration of the Common Stock under the Securities Act of
1933, as amended (the "SECURITIES ACT") or pursuant to an exemption from
registration under the Securities Act.

Dated: ________________________     ____________________________________________
                                    (Signature must conform to name of holder as
                                    specified on the face of the Warrant)
                                    Address:

<PAGE>

                                    EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT

                   (To Be Signed Only On Transfer Of Warrant)

         For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading "Transferees" the
right represented by the within Warrant to purchase the percentage and number of
shares of Common Stock of Retail Pro, Inc. into which the within Warrant relates
specified under the headings "Percentage Transferred" and "Number Transferred,"
respectively, opposite the name(s) of such person(s) and appoints each such
person Attorney to transfer its respective right on the books of Retail Pro,
Inc. with full power of substitution in the premises.

                                             PERCENTAGE               NUMBER
   TRANSFEREES            ADDRESS            TRANSFERRED            TRANSFERRED
   -----------            -------            -----------            -----------

Dated: ________________________     ____________________________________________
                                    (Signature must conform to name of holder as
                                    specified on the face of the Warrant)

                                    Address: ___________________________________
                                             ___________________________________

                                    SIGNED IN THE PRESENCE OF:

                                    ____________________________________________
                                    (Name)

ACCEPTED AND AGREED:
[TRANSFEREE]

_______________________________
           (Name)

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