PHOENIX FOOTWEAR GROUP INC
REVOLVING PROMISSORY NOTE
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<TYPE>EX-10.2
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<FILENAME>dex102.htm
<DESCRIPTION>REVOLVING PROMISSORY NOTE
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.2 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>REVOLVING NOTE </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>$20,000,000</B></FONT></TD>
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<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>June&nbsp;10, 2008</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>FOR VALUE RECEIVED</B>, the undersigned, <B>PHOENIX FOOTWEAR GROUP, INC., </B>a Delaware
corporation (&#147;Phoenix Footwear&#148;), <B>PENOBSCOT SHOE COMPANY</B>, a Maine corporation (&#147;Penobscot&#148;), <B>H.S. TRASK&nbsp;&amp; CO.</B>, a Montana corporation (&#147;Trask&#148;), <B>CHAMBERS BELT COMPANY</B>, a Delaware corporation
(&#147;Chambers&#148;), and <B>PHOENIX DELAWARE ACQUISITION, INC.</B>, a Delaware corporation (&#147;Phoenix Acquisition&#148;; Phoenix Footwear, Penobscot, Trask, Chambers and Phoenix Acquisition are sometimes individually referred to in this
Agreement as a &#147;Company&#148; and collectively as the &#147;Companies&#148;), hereby jointly and severally promise to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (&#147;Wells Fargo&#148;), acting through its WELLS FARGO BUSINESS
CREDIT operating division, on the Termination Date described in the Credit and Security Agreement dated June&nbsp;10, 2008 (as amended from time to time, the &#147;Agreement&#148;) and entered into by and among Companies and Wells Fargo, at Wells
Fargo&#146;s office at 245 S. Los Robles Avenue, Suite 700, Pasadena, California 91101, or at any other place designated at any time by the holder, in lawful money of the United States of America and in immediately available funds, the principal sum
of Twenty Million Dollars ($20,000,000) or the aggregate unpaid principal amount of all Advances made by Wells Fargo to Companies under the terms of the Agreement, together with interest on the principal amount computed on the basis of actual days
elapsed in a 360-day year, from the date of this Revolving Note until this Revolving Note is fully paid at the rate from time to time in effect under the terms of the Agreement. Principal and interest accruing on the unpaid principal balance amount
of this Revolving Note shall be due and payable as provided in the Agreement. This Revolving Note may be prepaid only in accordance with the Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">This Revolving Note is the Revolving Note referred to in the Agreement, and is subject to the terms of the Agreement, which provides, among other things, for the acceleration of this Revolving Note. This Revolving
Note is secured, among other things, by the Agreement and the Security Documents as defined in the Agreement, and by any other security agreements, mortgages, deeds of trust, assignments or other instruments or agreements that may subsequently be
given for good and valuable consideration as security for this Revolving Note. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Companies shall jointly and severally pay all costs of
collection, including reasonable attorneys&#146; fees and legal expenses if this Revolving Note is not paid when due, whether or not legal proceedings are commenced. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Presentment or other demand for payment, notice of dishonor and protest are expressly waived. Any person included as one of the Companies that is an accommodation party, co-maker, guarantor or other surety and each
endorser of this Revolving Note hereby (i)&nbsp;waives all suretyship defenses, (ii)&nbsp;consents to any and all future releases of other Companies and other guarantors, releases of Collateral and amendments, modifications, extensions, renewals,
restatements and supplements of Loan Documents, and (iii)&nbsp;agrees to make payment and that Wells Fargo may realize upon Collateral granted by the person without prior action by Wells Fargo against any other Company or any Collateral granted by
any other Company. Each Company acknowledges that it is jointly and severally liable for all of the Indebtedness and other obligations, covenants, and agreements now existing or hereafter arising under the Loan Documents. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">[signatures on next page] </FONT></P>

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<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>PHOENIX FOOTWEAR GROUP, INC.</B></FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
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<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>PENOBSCOT SHOE COMPANY</B></FONT></TD></TR>
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<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>H.S. TRASK &amp; CO.</B></FONT></TD></TR>
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<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>CHAMBERS BELT COMPANY</B></FONT></TD></TR>
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<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>PHOENIX DELAWARE ACQUISITION, INC.</B></FONT></TD></TR>
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