employmentagreement.htm


    

       

      
 

      


      


      November
21, 2007

      


      Sallie
DeMarsilis

      131 Blue
Hills Road

      North
Haven, CT  06473

      


      Dear
Sallie:

      


      We are
delighted to extend an offer of employment to you in accordance with the
following:

      


      
        	
                Ø  

              	
                You
      will assume a senior financial position reporting to Rick Cote, COO and
      you will transition to the position of Chief Financial Officer within a
      short, mutually agreeable time
frame.

              


      

      


      
        	
                Ø  

              	
                Your
      compensation will consist of a bi-weekly base salary of $16,346.15
      annualized to $425,000.  In addition to your base salary, you
      will be eligible to receive a bonus.  Your target bonus will be
      50 % of your base pay and the actual amount of the bonus will be dependent
      upon you, and the Company achieving certain
  objectives.

              


      

      


      
        	
                Ø  

              	
                You
      will receive a monthly car allowance of
$550.

              


      

      


      
        	
                Ø  

              	
                If
      you should decide to rent an apartment in the Paramus area, you will
      receive a monthly housing allowance of
$2,100.

              


      

      


      
        	
                Ø  

              	
                You
      will be entitled to 23 PTO days next year (this amounts to three weeks of
      vacation in addition to personal and sick
days)

              


      

      


      
        	
                Ø  

              	
                You
      will be entitled to participate in the Company’s Stock Option Plan and,
      subject to approval by the Compensation Committee of the Board of
      Directors, you will be granted 12,000 restricted shares with three year
      cliff vesting and you will be grated 10,000 options with three year
      gradual vesting.  You will also be eligible to participate in
      the LTI program next year.

              


      

      


      
        	
                Ø  

              	
                You
      are eligible to participate in the Company’s 401(k) and SERP
      plan.  The Company will match your SERP contributions up to 5%
      of your base pay.

              


      

      


      
        	
                Ø  

              	
                You
      shall be entitled to receive medical benefits offered by the Company to
      all its full time employees.  You will also be covered under our
      group life insurance, long-term disability insurance and you may
      participate in our flexible spending account plan.  Medical and
      life insurance require an employee contribution.  You shall be
      reimbursed for your business and travel expenses in accordance with
      Company policy.

              


      

      


      
        	
                Ø  

              	
                Your
      employment will at all times be subject to all of the Company’s policies
      and procedures applicable to its full-time employees as the same may be
      modified from time to time including, without limitation, the Company’s
      Code of Business Conduct and Ethics which is available on the Company’s
      website, www.movadogroupinc.com.

              


      

       

      
        
          
          

        

        
          
          

          
            

          

        

         

      

      
        	
                Ø  

              	
                While
      you are employed by the Company and for a period of six (6) months after
      such employment terminates, whether voluntarily or involuntarily for
      cause, or during any period that you may receive severance from the
      Company, you shall not directly or indirectly in any capacity, without the
      prior written consent of the Chief Executive Officer of the Company, which
      may be granted or withheld in the Company’s sole and absolute discretion,
      carry on or engage or participate in the watch or jewelry business, in any
      individual or representative capacity, as a principal, for your own
      account, jointly with others as a partner, joint venture, or shareholder
      of any firm, corporation, partnership, association, or other entity, or as
      a consultant, contractor, subcontractor or agent or employee of any
      person, firm, corporation, partnership, association or other
      entity.

              


      

      


      
        	
                Ø  

              	
                While
      you are employed by the Company and for a period of twelve (12) months
      after the termination of such employment, whether voluntarily or
      involuntarily, you shall not, directly or indirectly, alone or with
      others, in any capacity, without the prior written consent of the Company,
      which may be granted or withheld in the Company’s sole and absolute
      discretion, (a) employ, engage or retain any individual who is then an
      employee of the Company (or who had been an employee of the Company within
      six (6) months prior to the termination of your employment with the
      Company), or solicit, induce or persuade any such individual to terminate
      his or her employment relationship with the Company; or (b) request,
      induce, or advise any client of the Company (which you had reason to know
      was such a client or prospective client of the Company) to withdraw,
      curtail, or cancel any of its business with the
  Company.

              


      

      


      
        	
                Ø  

              	
                It
      is understood that this in no way shall be construed as an offer or an
      agreement for employment for any period of time and that if you accept
      employment it will be “at will” where wither you or we can terminate it
      any time with or without cause.

              


      

      


      


      This
offer is contingent upon your successful completion of our pre-employment
screening process.  Towards that objective, could you contact me as
soon as possible so we can begin this clearance process.

      


      Very
truly yours,

      


      


      


      


      /s/
Vivian D’Elia

      Vivian
D’Elia

      Sr. Vice
President, Human Resources

      


      


      


      


      Agreed to
by:  /s/
Sallie DeMarsilis_____________Date: 11/27/07_________

      Sallie DeMarsilis