Document:

EXHIBIT 4

EXHIBIT 4.2

DEMAND PROMISSORY NOTE

US$8,483.50

In consideration of receiving a loan of US$8,483.50, the undersigned CAPITAL MINERAL INVESTORS, INC., of 4745 Caughlin Parkway, Suite 200, Reno, Nevada, USA, 89509, does hereby PROMISE TO PAY to JERRY DIBBLE, of 2035 Blantyre Avenue, Coquitlam, BC, Canada, V3K 1X9, the sum of US$8,483.50, without interest, payable on demand.

The undersigned and each endorser hereof waives demand and presentment for payment, notice of dishonour, notice of nonpayment, protest and notice of this Promissory Note.

DATED at Vancouver, British Columbia, this 15th day of May, 2003.

	
/s/ "Ailin Wan"
	
/s/ "Jerry Dibble"

	
Ailin Wan
	
Jerry Dibble

	
Signature of Witness
	
Capital Mineral Investors, Inc.EXHIBIT 4

EXHIBIT 4.3

DEMAND PROMISSORY NOTE

US$42,857.23

In consideration of receiving a loan of US$42,857.23, the undersigned CAPITAL MINERAL INVESTORS, INC., of 4745 Caughlin Parkway, Suite 200, Reno, Nevada, USA, 89509, does hereby PROMISE TO PAY to PHIL DERRY, of Windy Edge, Gloster Hill, Amble, Northumberland, England, NE 650HJ, the sum of US$42,857.23, without interest, payable on demand.

The undersigned and each endorser hereof waives demand and presentment for payment, notice of dishonour, notice of nonpayment, protest and notice of this Promissory Note.

DATED at Vancouver, British Columbia, this 15th day of May, 2003.

	
/s/ "Ailin Wan"
	
/s/ "Jerry Dibble"

	
Ailin Wan
	
Jerry Dibble

	
Signature of Witness
	
Capital Mineral Investors, Inc.EXHIBIT 10

EXHIBIT 10.1

PROVINCE OF BRITISH COLUMBIA   Ministry of Energy Mines and Petroleum Resources

RECORD OF 4 POST CLAIM - MINERAL TENURE ACT

(Section 27)

	
Similkameen_______________________________
	
397339 __________________________________

	
Mining Division
	
Tenure No.

	
_____________________________________
	
October 6, 2002____________________________

	
Gold Commissioner
	
Date of Record

_____________________________________________________________________________________

APPLICATION TO RECORD A 4 POST CLAIM

I, Rod Husband, Name of Locator, of 3316 West 3rd Street, Vancouver, BC, V6R 1L4, (604) 736-5711, Client No. 112610, hereby apply for record of a 4 Post Claim for the location as outlined on the attached copy of mineral titles NTS map sheets M092H089, in the Similkameen Mining Division.

ACCESS

Describe how you gained access to the location, include reference to roads, trails, topographic features, permanent landmarks and a description of the legal post location.

29 kms along Hwy 97C from Jctn with Hwy 5A to Elkhart Lodge Turnoff - Parallel 97C for 2km along logging road to east edge of clearcut to LCP.  LCP located 1.5 km at 235 degrees from SW corner of Boulder Lake.

GPS Co-ordinates taken of posts:  Yes [  ]  No [x]  If yes, complete information chart on reverse.

TAG INFORMATION

I have securely fastened the metal identification tag embossed "LEGAL CORNER POST" to the legal corner post (or "witness post") and impressed this information on the tag:

TAG No. 244579 LEGAL CORNER POST

	
CLAIM NAME
	
HART

	
LOCATOR
	
Rod Husband

	
FMC No.
	
112610

	
DATE COMMENCED
	
October 6, 2002

	
TIME 
	
9:30 a.m.

	
DATE COMPLETED
	
October 6, 2002

	
TIME
	
10:00 a.m.

Number of Claim Units

N 5 S__ E __W 4

IDENTIFICATION POSTS NOT PLACED WERE:  1W, 2W, 3W, 4W, 4W1N, 4W2N, 4W3N, 4W4N, 4W5N, 1N, 2N, 3N, 4N, 5N, 5N1W, 5N2W and 5N4W because N and W of LCP - Ranch - marked Private Property Absolutely No Trespassing.

If a witness post was placed for the legal corner post:

Bearing from witness post to true position of legal corner post is _______degrees at a distance of ______ metres.

NOTE:  Legal Corner Post can be witnessed only if it was not feasible to place any posts.

ACKNOWLEGEMENT

I have complied with all the terms and conditions of the Mineral Tenure Act and Regulation pertaining to the location of 4 post claims and have attached a plan of the location on which the positions of the legal corner post and all other corner posts (and witness and identification post, if applicable) are indicated.  The tag information supplied above is the identical information that I impressed upon the tag affixed to the applicable post when I located this claim and this information is true and correct.

/s/ "Rod Husband"

Rod Husband

Signature of Locator

SEAL

RECEIVED

SUB-RECORDER

VANCOUVER, BC

OCT. 28, 2002

Recording StampEXHIBIT 10

EXHIBIT 10.2

Statement of Trustee

Rod Husband

3316 West Third Avenue

Vancouver, BC, V6R 1L4

Capital Mineral Investors, Inc.

2035 Blantyre Avenue

Coquitlam, BC, V3K 1X9

I, Rod Husband, hold in trust for Eagle River Mining Corp., a 100% undivided interest in one mineral claim, namely: HART (Tenure Number 397339), located in the Similkameen Mining Division.

I will deliver full title on demand to Capital Mineral Investors, Inc. for as long as the claims are in good standing with the Province of British Columbia.

Dated the 31st day of December, 2002

/s/ "Rod Husband"

Rod HusbandEXHIBIT 10

EXHIBIT 10.3

British Columbia

Ministry of Employment and Investment

Energy and Minerals Division

Mineral Titles Branch

Mineral Tenure Act

Section 57 and 58

	
BILL OF SALE ABSOLUTE
	 
	
INDICATE TYPE OF TITLE:
	
Mineral

	
MINING DIVISION
	
Similkameen

SELLER:

I, Rod Husband, of 3316 West Third Avenue, Vancouver, BC, Canada, V6R 1L4, (604) 736-5711, Client Number 112610.

PURCHASER:

Capital Mineral Investors, Inc., of 2035 Blantyre Avenue, Coquitlam, BC, Canada, V3K 1X9 (604) 937-5585.

For and in consideration of the sum of Ten Dollars ($10.00) paid to me, do hereby sell the interest as specified below in the following mineral titles:

	
Claim Name or Lease Type
	
Units (Hectares)
	
Tag Number
	
Tenure Number
	
Percentage of Title Being Sold

	
HART
	
20 (500 ha)
	
244578
	
397339
	
100%

I declare that I have good title to these tenures and every right to sell the same, in witness whereof, I have today signed my legal name.

December 31, 2002

	
/s/ "Rod Husband"
	
/s/"Steve Kenwood"

	
Rod Husband
	
WitnessExhibit 10.1

     Portions of this document including exhibits hereto indicated by an ++
                 have been omitted and filed separately with the
                Securities and Exchange Commission pursuant to a
             request for confidential treatment of such information.

                                LICENSE AGREEMENT

     This license agreement (this "Agreement") is made as of the 12th day of May
2003 among IP Holdings LLC, a Delaware limited liability company with offices at
103  Foulk  Road,  Wilmington  DE  ("Licensor"),   Candie's,  Inc.,  a  Delaware
corporation   with  offices  at  400  Columbus   Avenue,   Valhalla,   NY  10595
("Candie's"),  and Steven Madden,  Ltd, a Delaware  corporation  with offices at
52-16 Barnett Avenue,  Long Island City, NY 11104  ("Licensee")  (each a "Party"
and, collectively, the "Parties").

                                   WITNESSETH:

     WHEREAS,  Licensor  is the  exclusive  owner of, and has as a result of its
substantial use and promotion become identified with, the trade name,  trademark
and service mark  "CANDIE'S",  particularly  for footwear  and  accessories  and
products and services related  thereto,  and as a result of such substantial use
and  promotion  has  developed a reputation  for products and  accessories  that
represent a certain lifestyle, quality and distinctiveness; and

     WHEREAS, Licensee desires to acquire the right and license from Licensor to
use the trade name,  trademark  and  service  mark,  whether or not  registered,
consisting of CANDIE'S (the  "Licensed  Mark"),  in connection  with the design,
manufacture,  sale,  marketing,  distribution,  advertising and promotion of all
categories of women's and children's footwear (the "Articles"),  upon such terms
and subject to such conditions as set forth herein.

     NOW, THEREFORE, in consideration of the mutual representations,  warranties
and covenants hereinafter set forth, the Parties hereby agree as follows:

1.   GRANT AND USE OF LICENSE

1.1  General.  Licensor hereby grants to Licensee during the Term (as defined in
     Section 2) and subject to the terms and conditions of this  Agreement,  the
     exclusive right and license to use the Licensed Mark in connection with the
     design,  manufacture,  sale,  marketing,   distribution,   advertising  and
     promotion of Articles throughout the Territory (as defined in Section 1.3).

1.2  Reservation   of   Rights.    Licensor   reserves   all   rights   to   the
     --------------------------
     Licensed Mark except such as are specifically granted herein to Licensee.

<PAGE>

1.3  Territory. (a) The territory shall be the world (the "Territory"),  subject
     ---------                                             ---------
     to the terms,  conditions and limitations set forth in this Agreement.

     (b)  Licensor  represents  that  attached  hereto as  Exhibit A is a status
          report which sets forth in all material respects the registrations and
          applications   of  the   Licensed   Mark   throughout   the  world  in
          International Class 25 (footwear).

     (c)  Licensor  agrees that upon the  approval of any  Business  Development
          Plan (as defined  herein) of  Licensee  (which  approval  shall not be
          unreasonably withheld or delayed) that involves a country or region in
          which  Licensor is not the owner or has not applied for  registrations
          of the  Licensed  Mark in Class  25,  Licensor  will act  promptly  to
          investigate  the  availability  of the Licensed Mark in that region or
          country,  and will use commercially  reasonable efforts to procure the
          registration  of the Licensed  Mark therein.  A "Business  Development
          Plan" is defined as a document  in which  Licensee,  at its sole cost,
          sets forth with reasonable  specificity and in good faith,  the manner
          in which Licensee plans the sale, marketing, distribution, advertising
          and  promotion  of  Articles  in the  proposed  region or  country,  a
          proposed  level of Net  Sales  (as  defined  in  Section  5.2) for the
          proposed  region or country for each year in which  Licensee  plans to
          distribute  Articles  therein,  and the date that Licensee proposes to
          commence such sales. Notwithstanding anything in this Agreement to the
          contrary,  nothing  in the  Business  Development  Plan or  Licensor's
          acceptance  thereof  shall  release  Licensee  from  any or all of its
          obligations under this Agreement or require that Licensee proceed with
          the Business Development Plan.

1.4  Best  Efforts of Licensee.  Licensee  shall use its best efforts to exploit
     the rights herein  granted  throughout  the Territory and to sell:  (i) the
     maximum  quantity  of  Articles  consistent  with  the high  standards  and
     prestige  associated  with the Licensed  Mark;  and (ii) an amount at least
     equal to the Minimum Net Sales (as defined in Section 5.1) and as set forth
     in Exhibit B hereof.  For the purposes of this Agreement,  Licensee's "best
     efforts" shall be construed in the context of the corresponding  efforts of
     the highest  quality of footwear  manufacturers.  Notwithstanding  anything
     hereunder to the  contrary,  (x) Licensee  shall not be required to use its
     best efforts to exploit the rights herein  granted in any country or region
     unless and until Licensee shall have commenced marketing operations therein
     and (y)  Licensor  acknowledges  and agrees that (I) Licensee is engaged in
     the footwear business,  either directly or as licensee of other trademarks,
     and (II) Licensee may continue to expand its  operations  either through an
     expansion of its current  brands or via other brands that it creates and/or
     licenses ("Licensee Other Activities").

1.5  Purchases  by  Licensor,  Candie's  or  Business  Partners.  (a)  Licensor,
     Candie's   and  their   business   partners,   licensees   and   affiliates
     (collectively  "Candie's Store  Operators") will have the right at any time
     to sell, market, distribute, advertise and promote Articles within Candie's
     retail locations, outlets or stores.

                                       2
<PAGE>

     (b)  Licensee will sell Articles to Candie's Store Operators,  and Candie's
          Store Operators will purchase all of their  requirements  for Articles
          from  Licensee,  at prices  equal to ++  percent  (++%) lower than
          wholesale  prices.  Sales of Articles to Candie's Store Operators will
          not be included in the  calculation  of Minimum Net Sales and will not
          be  subject  to  payment  of  Royalties  (as   hereinafter   defined).
          Notwithstanding  the foregoing,  Candie's Store Operators may purchase
          up to ten  percent  (10%)  of their  requirements  for  Articles  from
          entities  other than  Licensee.  Except for sales at  existing  outlet
          stores only,  Candie's Store  Operators  shall not sell Articles at an
          initial  price less than the  initial  price  charged  by Macy's  with
          respect thereto.

     (c)  In the event that Candie's determines not to continue the operation of
          the Candie's  concept or outlet retail  locations  (either directly or
          through the Calderone Group), Candie's will so notify Licensee to such
          effect  and  grant  Licensee  the  right,   prior  to  conducting  any
          discussions  or  negotiations  with other  entities,  to make an offer
          pursuant to which Licensee would open and operate such  locations.  It
          is understood  that regardless of which party or entity is involved in
          a  possible  future  roll out of  retail  stores,  it will  work  with
          Licensee  in good faith to  establish  appropriate  pricing  and other
          policies   so  that  the   wholesale   and   retail   businesses   are
          complementary.

1.6  No  Publicity.  Neither  Party  shall  issue  any press  release  or public
     statement  related to the  existence  or subject  matter of this  Agreement
     without  the prior  written  consent of the other as to all aspects of such
     release or  statement,  except as may be  required  by law or pursuant to a
     court order,  in which event the Party  making the press  release or public
     statement  shall give the other Party a reasonable  opportunity  to comment
     thereon prior to the release.

1.7  $++  Payment.  In  addition  to  all  amounts  to  be  paid  hereunder,  as
     consideration  for entering  into this  Agreement  Licensee will pay $++ to
     Candie's  upon the  execution  of this  Agreement.  This  payment is not an
     advance on Royalties (as defined herein).

2.  TERM.
    ----

2.1  Initial  Term.  The  initial  term of this  Agreement  shall be the  period
     commencing as of the date hereof and continuing  through  December 31, 2009
     (the "Initial Term"),  unless sooner  terminated in accordance with Section
     10.

2.2  Year and Quarter.  (a) Each "Year" of the Initial Term shall be defined as:
     ---------------              ----

     the First Year                     5/12/03 -   12/31/04
     the Second Year                    1/1/05 --   12/31/05
     the Third Year                     1/1/06 --   12/31/06
     the Fourth Year                    1/1/07 --   12/31/07
     the Fifth Year                     1/1/08 --   12/31/08
     the Sixth Year                     1/1/09 --   12/31/09

                                       3
<PAGE>

     (b)  With the exception of the First Year (as defined in Section 2.2), each
          12 month period commencing January 1 and ending December 31 thereafter
          for which the license is in effect will be a "Year".  Commencing  with
          the shipment of Articles,  each  quarter of each Year  throughout  the
          Term (as defined in Section 2.3),  ending March 31, June 30, September
          30 and December 31, will be a "Quarter".

2.3  Renewal Term.  (a) Licensee  shall have the option to renew this  Agreement
     for four  additional  terms of three (3) years  (each,  a  "Renewal  Term",
     referred to together with the Initial Term, as applicable,  as the "Term"),
     if,  (i) as of June 1 of the last  Year in the  applicable  Term,  Licensee
     shall have delivered to Licensor  written notice of its intention to renew,
     and reasonable  forecasts of the business  projected to be achieved through
     the end of  that  Year  (ii) as of the  last  day of the  applicable  Term,
     Licensee  shall have achieved sales of Articles in an amount that equals or
     exceeds Minimum Net Sales for the applicable Term (as defined in Exhibit B)
     subject to such  reduction  in Minimum Net Sales as provided for in Section
     5.1(b);  and (iii)  Licensee has been at all times  throughout  the Initial
     Term in material  compliance  with the terms of this  Agreement or, if not,
     Licensee  shall have cured any breach within thirty (30) days of receipt of
     written notice thereof from Licensor.

     (b)  In the event of any Renewal Term,  Licensor and Licensee will agree in
          good faith on appropriate  and  reasonable  Minimum Net Sales for such
          Renewal Term taking into account various  factors,  including  without
          limitation,  the level of business achieved during the final two Years
          of the prior Term.

3.   MANUFACTURE OF ARTICLES; QUALITY CONTROL.
     ----------------------------------------

3.1  Production  of  Articles.  During each Year for which this  Agreement is in
     effect,   Licensee  shall,   at  its  own  expense,   manufacture  or  have
     manufactured, sell, market, distribute and promote Articles, along with any
     Packaging  Materials  (as  defined  in  Section  3.4)  used  in  connection
     therewith,  of a good quality that are at least comparable to similar items
     offered at comparable  prices for each respective  brand and of such style,
     appearance  and  distinctiveness  so as to protect and  enhance,  and in no
     manner  reflect  adversely  upon, the prestige of Licensor and the Licensed
     Mark and the goodwill pertaining thereto.

3.2  Dedicated Designer and Sales Staff. (a) Within 120 days of the execution of
     this  Agreement,  and continuing  throughout  the Term,  Licensee will have
     hired and shall maintain for Articles a sales  manager,  the Sales Employee
     (as defined below) or a comparable  replacement,  and a designer  (together
     the "Candie's Personnel") dedicated exclusively to the design, manufacture,
     sale,  marketing,  distribution  and  promotion  of Articles and such other
     employees  as may be  necessary  to carry out its  obligations  under  this
     Agreement.  Licensee  shall use reasonable  efforts  throughout the Term to
     ensure that Licensor and Candie's remain  satisfied with the performance of
     the Candie's  Personnel,  including  replacing  one or more of the Candie's
     Personnel if there is a reasonable basis for doing so.

                                       4
<PAGE>

     (b)  Licensee acknowledges and agrees that it and all employees involved in
          the  design  and sale of  Articles  must  understand  the  distinction
          between  Articles and other products  designed or sold by Licensee and
          shall be able to produce and sell  Articles  distinct from other lines
          of products in a manner that is consistent  with the reputation of the
          Licensed  Mark and  with  the  distribution  channels  in  which  such
          Articles are sold.

     (c)  Within 15 days of the date  hereof,  Licensee  will extend an offer of
          employment to Gerry Bonomi (the "Sales Employee"), on terms comparable
          to those pursuant to which he is currently employed by Candie's.

3.3  Contractors  and  Suppliers.  (a) All parts and  components of the Articles
     shall be manufactured,  sold,  distributed,  marketed,  promoted,  labeled,
     packaged  and,  if  applicable,  imported  into any  country  or  region by
     Licensee in all material respects in accordance with all applicable foreign
     and  United  States  laws,  rules and  regulations  and the  practices  and
     policies of Licensor  relating thereto that have been provided to Licensee,
     including  those with  respect to fair  remuneration  for work,  health and
     safety conditions in the work environment and social protection of workers.
     Licensee  agrees that upon  Licensor's  request it will  provide  notice to
     Licensor of the  location  and  ownership  of any factory or facility  that
     manufactures or fabricates Articles or components of Articles, and Licensee
     shall cease  producing  Articles at  factories  or  facilities  as to which
     Licensor shall reasonably  object,  or take all necessary steps to cure any
     issues  regarding  quality,  within  thirty  30 days  following  Licensee's
     receipt  of  such   notice.   Notwithstanding   the   foregoing,   Licensor
     acknowledges  and  agrees  that any  factory  or  facility  that  currently
     manufactures   or   fabricates   goods  for   Licensee  is  an   acceptable
     manufacturer.

     (b)  Licensee  further  agrees  that  it  will  make  aware  all  permitted
          contractors,  subcontractors  and suppliers  used in the  manufacture,
          sale, distribution,  marketing,  advertising and promotion of Articles
          that:  (i)  they  are  expected  to  adhere  to all of the  same  high
          standards  with  regard to  Articles  and the  Licensed  Mark to which
          Licensee is held;  (ii)  Licensor is the true and lawful owner of, and
          in some cases applicant for the  registration,  or registrant,  of the
          Licensed Mark; and (iii) Licensee's authority to use the Licensed Mark
          derives   solely  from  this   Agreement.   Licensee  shall  be  fully
          responsible  for  any  breach  of  this  Agreement  by  its  permitted
          contractors, subcontractors, suppliers, affiliates and similar parties
          hereunder.  Licensee shall use all  reasonable  efforts to protect the
          Licensed Mark from any misappropriation, misuse or unauthorized use by
          any  of  its  directors,  officers,  employees,  agents,  contractors,
          subcontractors,  suppliers or associates, and shall indemnify Licensor
          for any damages  incurred arising from the actions or omissions of any
          of the  directors,  officers  or  employees  of such  entities in such
          regard.

                                       5
<PAGE>

3.4  Display of Licensed Mark. With respect to all Articles,  Licensee shall use
     and display the Licensed Mark only in such form and manner as is consistent
     with the high standards and prestige  associated with the Licensed Mark and
     the high quality of the  Articles,  and Licensee  shall cause such legends,
     markings  and notices as may be required by law or as Licensor  requests to
     appear on all items used or intended  to be used by Licensee in  connection
     with the Articles or in connection with any materials in which the Articles
     are packaged,  including,  but not limited to tags, labels,  boxes and bags
     ("Packaging  Materials").  No Articles  bearing the Licensed  Mark shall be
     sold by  Licensee  under or in  conjunction  with any other  trade  name or
     trademark,  except that  Articles  may be shipped to  customers  with other
     products in a bulk package. Licensee may include on Packaging Materials and
     on  its  business   stationery  and  documentation  an  indication  of  the
     relationship between the Parties, but only in a form previously approved by
     Licensor.

3.5  Approvals by Licensor.  During each selling  season of each Year during the
     Term,  Licensee  shall submit to Licensor for its review in a timely manner
     for each selling  season prior to the production or fabrication of Articles
     or  Packaging  Materials,  as  applicable,  samples  of  all  Articles  and
     Packaging Materials and any and all items or components used or intended to
     be used by Licensee in  connection  with their design,  manufacture,  sale,
     distribution, marketing or advertising of Articles and Packaging Materials.
     If Licensor shall disapprove of any Articles or Packaging Materials, or any
     items used therein or components  thereof (which  disapproval  shall not be
     made  unreasonably),  Licensee  shall make such  corrections  or inclusions
     reasonably  identified by Licensor.  Articles and Packaging Materials shall
     be deemed to be approved by Licensor in the event Licensor does not provide
     notice of its  disapproval  within ten (10)  Business  Days  following  its
     actual receipt  thereof from Licensee.  For the purposes of this Agreement,
     "Business  Day"  means the days on which  banks in the City of New York are
     required to be open for business.

3.6  Complementary  Product.  During each selling season of each Year during the
     Term, and any Renewal Term, if  applicable,  Licensee shall provide at cost
     to Licensor  at  Licensor's  request,  the number of samples of Articles as
     Licensor shall reasonably request.

3.7  Designs,  Sketches  and  Ideas.  (a)  Licensee  shall  be the  owner of all
     sketches,  ideas, artwork, concepts and designs created by Licensee for use
     in connection with Articles  (together,  the "Designs"),  including without
     limitation  any and all patent,  trade secret,  trademark,  copyright,  and
     other  intellectual  property and proprietary  right,  title,  and interest
     therein.  The  copyright in each Design shall belong to Licensee.  Licensor
     agrees to execute, at Licensee's request,  any written documents reasonably
     prepared by Licensee,  and to provide such other cooperation and assistance
     that Licensee reasonably deems appropriate or necessary, to effectuate this
     result.  Once Designs have been used for the production of Articles bearing
     the Licensed Mark,  Licensee shall not use such Designs in connection  with
     any  other  products   without  the  prior  written  consent  of  Licensor.
     Notwithstanding  the foregoing,  Licensor  acknowledges and agrees that, in
     connection with Licensee Other Activities,  Licensee may create designs for
     other footwear that may in some respects  resemble the Designs used for the
     production  of the Articles  bearing the Licensed  Mark so long as Licensor
     uses its reasonable  efforts to produce  Articles that are distinctive from
     other products produced by Licensee.

                                       6
<PAGE>

     (b)  At any time and from time to time, Licensor may prepare and deliver to
          Licensee  sketches  and  ideas  that  it  desires  Licensee  to use in
          producing  Articles or Packaging  Materials.  Licensee  agrees that it
          shall in good  faith use its  reasonable  efforts  to  produce  sample
          Articles or sample Packaging Materials,  as applicable,  in compliance
          with such  sketches  and  ideas.  All  sketches  and  other  materials
          provided by Licensor  to Licensee  are owned by Licensor  and shall be
          used by Licensee  solely in  connection  with the  manufacture,  sale,
          marketing,  distribution,  advertising  and  promotion  of Articles or
          Packaging  Materials,  as applicable,  in accordance  with  Licensor's
          instructions.  Following its review or use of such materials, Licensee
          shall re-deliver them to Licensor, at Licensee's expense, and Licensee
          shall not use or permit the use of such materials thereafter except in
          connection with producing Articles.  If Licensee does not use any such
          sketches or other materials, Licensor may use and permit others to use
          them in any manner it desires  provided that such use by Licensor does
          not conflict with rights granted to Licensee under this Agreement.

3.8  Inspection.  Upon reasonable  notice,  Licensee shall permit  inspection by
     Licensor or its duly  authorized  representatives  during regular  business
     hours,  of Licensee's  premises or any other  facilities in which  samples,
     Articles,   components  of  Articles  or  Packaging   Materials  are  being
     manufactured  or  warehoused  at any time  (whether or not Licensee is then
     engaged in the production of Articles).

4.   DISTRIBUTION OF ARTICLES.
     ------------------------

4.1  On Time Shipment of Orders.  Licensee shall use reasonable  efforts to ship
     --------------------------
     all orders for Articles by the date promised.

4.2  Distinct  Distribution  Channels.  (a)  Articles  shall be  targeted to the
     upscale department store channel,  including Federated,  May Company, other
     department  and  specialty  stores of that level,  type and quality and any
     other store to which Candie's currently sells Articles,  including, without
     limitation,  JC Penney's. If there is any question as to whether a proposed
     customer  meets  the  standard  set forth  herein,  Licensee  shall  obtain
     Licensor's  approval (which approval shall not be unreasonably  withheld or
     delayed) prior to selling any products to such customer. ++ Notwithstanding
     the foregoing,  in the event that Licensee advises Licensor in writing that
     there has been a material change in Licensee Other  Activities prior to the
     end of the  First  Year,  Licensor  will use best  efforts  to  remove  any
     contractual  impediments  that may exist and,  if  successful,  will permit
     Licensee to commence  selling  Articles to the mid-tier as soon as possible
     thereafter. In no event may Licensee sell any Articles in the mass merchant
     channel described in Section 4.2 (d).

                                       7
<PAGE>

     (b)  Off Price  Articles (as defined in Section 4.3 hereof) of all Articles
          may be sold to T.J.  Maxx,  Marshalls,  Ross  Department  stores,  and
          department and specialty stores of a similar level,  type and quality.
          If there is any question as to whether a proposed  customer  meets the
          standard set forth herein,  Licensee shall obtain Licensor's  approval
          (which approval shall not be  unreasonably  withheld or delayed) prior
          to selling any products to such customer.

     (c)  At no time shall Licensee distribute Articles or Off Price Articles to
          any retail stores that may be described as "discount  mass  merchants"
          or "wholesale clubs".

     (d)  Licensor  may  consent  to sales of  Articles  outside  the  specified
          channels set forth herein,  from time to time and at any time, without
          limiting or waiving the provisions of this Section 4.2.

     (e)  Notwithstanding  the foregoing,  Licensee shall have the right to sell
          the  Articles  directly  to the  public  (i) in Steven  Madden  retail
          stores,  (ii) through  catalogs and (iii) on Licensee's  internet site
          (collectively, "Other Permitted Channels"). Sales of Articles in Other
          Permitted  Channels will be included in the computation of Minimum Net
          Sales based on wholesale pricing.

4.3  Off Price  Articles.  In the event that  Licensee  shall  produce Off Price
     Articles,  Licensor will permit such Articles to be distributed strictly in
     accordance  with this  Agreement,  so long as: (1) no  distribution  of Off
     Price  Articles is made earlier than thirty (30) days after the  conclusion
     of the "first run" retail selling season, and (ii) the total amount of such
     Off Price Articles sold in any Year does not exceed 25% of Net Sales in any
     given  Year.  Sales of Off Price  Articles  will be  subject  to payment of
     Royalties in accordance  with Section 5.2(b) hereof and will be included in
     the  calculation  of Minimum Net Sales  except in the event that such sales
     exceed 25% of total Net  Sales,  in which case such sales over 25% shall be
     deducted from Minimum Net Sales.  For the purposes of this Agreement,  "Off
     Price  Articles"  shall be defined as  Articles  offered by  Licensee  on a
     landed basis at prices thirty percent (30%) or more below wholesale.

4.4  Webstore.  Candie's will transfer to and Licensee will take over all rights
     and obligations  relating to the operation of the Candie's webstore located
     at www.candies.com (the "Webstore"), including all fulfillment therefor and
     maintenance thereof. Candie's will apply for and make available to Licensee
     full use of any URL or domain  names that are  necessary to operate the web
     site  and  store.  Candie's  acknowledges  and  agrees  that  Licensee  may
     discontinue the offering of any non footwear products in the Webstore,  but
     in the event that Licensee  determines to stop selling all products through
     the  Webstore  for a period of 30 days or more,  all rights to the Webstore
     shall  revert to  Licensor  and  Licensee  shall  cease  having  any rights
     relating thereto. The Parties shall work together in good faith to effect a
     smooth and expeditious transition.

                                       8
<PAGE>

4.5  Existing  Inventory and Backlog.  (a) It is  understood  that Candie's will
     retain  all  rights to and for,  and all  obligations  and  liabilities  in
     connection with, footwear orders in connection with Spring 2003,  including
     shipping,  invoicing,   collecting  payment,  markdowns,   chargebacks  and
     returns.

     (b)  Candie's hereby  transfers to Licensee its current backlog of unfilled
          orders for Fall 2003 as set forth on Exhibit C  attached  hereto  (the
          "Backlog").

     (c)  Candie's and Licensee  will work  together in good faith and use their
          collective  best efforts to minimize any  markdowns on the Spring 2003
          collection.  Notwithstanding  the  foregoing,  in the event  that,  in
          connection with Fall 2003 orders,  there are markdowns associated with
          the Spring 2003 orders, Candie's will be responsible for the amount of
          such  markdowns to the extent that they are  comparable  to historical
          markdowns that Candie's has experienced in prior years for that season
          and will indemnify Licensee therefor.

     (d)  Candie's  will work in good  faith  with  Licensee  to effect a smooth
          transition   of  the   footwear   business,   including   facilitating
          discussions  and the transfer of  information  to  factories,  agents,
          retailers and other business partners who are involved in the footwear
          business.  It is the goal of the  Parties  that  there be no  material
          detrimental  impact on the footwear business resulting solely from the
          transition of the business by Candie's to Licensee.

4.6  In-Store  Displays and  Showrooms.  In addition to  Licensee's  obligations
     ---------------------------------
     under Section 3.5, Licensee shall perform the following obligations:

     (a)  Licensee shall maintain at least one showroom in New York City, all or
          part of which will be dedicated  exclusively  to  featuring  Articles.
          Licensee shall bear all costs associated with the use, maintenance and
          update of all  in-store  fixtures and display  furniture  for Articles
          used in any showroom space dedicated to Articles.

     (b)  All aspects of displays  (whether  in-store or in a showroom) shall be
          subject to  consultation  between  the  Parties.  Prior to showing any
          Articles in any display or showroom,  Licensee shall obtain Licensor's
          approval (which shall not be unreasonably  withheld or delayed) of the
          proposed display of the Licensed Mark and Articles.

                                       9
<PAGE>

     (c)  Licensor shall be entitled to inspect Licensee's  in-store displays or
          showrooms periodically at Licensor's expense.  Licensee shall make any
          such reasonable changes, adjustments or improvements provided that the
          cost of any such changes,  adjustments and  improvements do not exceed
          $50,000.

4.7  Trade Shows.  Licensee will attend all significant industry trade shows for
     footwear and will assume all costs associated with attending and displaying
     Articles at such shows. It is agreed that: (i) for the purposes of a smooth
     transition,  the  FFANY  show in June  2003  will  take  place at  Candie's
     showroom,  which  will be made  available  to  Licensee  at no  cost;  (ii)
     thereafter,  Candie's  will give to Licensee its CANDIE'S  trade show booth
     and  thereafter  Licensee  will  be  responsible  for  and  pay  all  costs
     associated with the booth,  including but not limited to storage,  shipping
     and  maintenance  (prior to the that time Candie's will be responsible  for
     all storage charges);  and (iii) upon Candie's  presentation to Licensee of
     the invoice therefore, Licensee will reimburse Candie's for the cost of the
     space at the August 2003 WSA show.

4.8  Third Party  Distributors.  (a) Licensee may, provided it obtains the prior
     written  consent of Licensor,  sublicense the right to distribute  products
     outside the United  States to one or more  approved  distributors  (each an
     "Approved  Distributor").  In furtherance of the foregoing,  Licensee shall
     submit to  Licensor  for its  approval  (which  shall  not be  unreasonably
     withheld or delayed) (i) copies of any proposed distribution  agreement not
     less  than  10  days  prior  to the  submission  thereof  to  any  proposed
     distributor, and (ii) prior to the execution of any distribution agreement,
     copies  of  such  agreement  in  the  form  that  Licensee  and a  proposed
     distributor may propose to execute.

     (b)  Without  limiting  the  generality  of the  foregoing,  each  approved
          distribution  agreement shall include the following provisions,  among
          others,  to ensure that: (i) Licensor through Licensee retains control
          over the quality of any Products that may be manufactured  thereunder,
          (ii) upon the  termination of this Agreement for any reason,  Licensor
          has the right to  require  the  Approved  Distributor  to assign  such
          agreement to Licensor with respect to Articles only, (iii) the term of
          each such agreement is deemed to be terminated  automatically upon the
          termination  of this  Agreement  if for any reason  Licensor  does not
          exercise  its option to require  Licensee to assign such  agreement to
          Licensor  as  provided  herein,  (iv)  each  Approved  Distributor  is
          required to furnish  separately  to Licensee and Licensor  reports and
          statements of the type described in Section 9 hereof, and (v) Licensor
          and any  representative  of  Licensor  have the right to  inspect  any
          manufacturing  facilities  of each  Approved  Distributor  to  monitor
          compliance with the provisions of this Section.

     (c)  Licensee  hereby agrees that in the event that Licensee learns that an
          Approved Distributor has breached the material terms thereof, Licensee
          shall  immediately  notify  Licensor of such  breach and all  relevant
          facts relating thereto. If Licensor is so notified by Licensee,  or if
          Licensor  independently  becomes  aware of any such  breach,  Licensor
          shall  have the  right,  in its  reasonable  discretion,  to  instruct
          Licensee  to take any  action to remedy  such  breach  which  Licensor
          reasonably  deems  appropriate  under the terms of the  agreement  and
          applicable   law.   Licensee's   failure  to  comply  with  Licensor's
          reasonable  instructions  as provided above shall entitle  Licensor to
          cause  Licensee  to  terminate  the  distribution  agreement  with the
          Approved Distributor.

                                       10
<PAGE>

4.9  No Tie-ins.  Licensee  shall not offer or sell Articles in connection  with
     ----------
     any tie-in or promotional campaign relating to products other than Articles
     without the prior written consent of Licensor.

5.   NET SALES.

5.1  Minimum  Net  Sales.  (a) In  furtherance  of its  duties  and  obligations
     hereunder,  Licensee  shall use its best efforts to promote  diligently the
     manufacture,  sale,  marketing,  distribution  and promotion of Articles in
     accordance  with the terms of this  Agreement,  and  without  limiting  the
     generality of the foregoing, achieve Minimum Net Sales each Year during the
     Term in the amounts set forth in Exhibit B hereto ("Minimum Net Sales").

     (b)  Notwithstanding  the  foregoing,  in the event that Licensee  achieves
          Minimum  Net Sales in an amount  equal to at least ++% of the  amounts
          set forth in Exhibit B in any one Year during the Initial Term and ++%
          of the  amounts  set forth in  Exhibit B during  any other Year of the
          Initial Term,  Licensee  will not be in default of this  Agreement and
          Licensee's  right to exercise any renewal option will not be affected,
          so long as Licensee  pays Minimum  Royalties in the full amount as set
          forth in  Exhibit  B. This  provision  relating  to the  relief of the
          obligation  to achieve  Minimum Net Sales will not be available in any
          other Term.

5.2  Definition of "Net Sales".  For purposes of this  Agreement,  the term "Net
     Sales" shall mean the gross invoiced amount,  whether represented by United
     States dollars or other  consideration,  of Articles shipped by Licensee or
     any of its  Affiliates  (as  defined  in  Section  14.7)  to  customers  at
     wholesale  prices  (invoiced list prices) less actual (i)  markdowns,  (ii)
     allowances,  (iii) returns, (iv) trade discounts,  (v) new store discounts,
     (vi) coop  advertising  allowances,  and (vii) operating  chargebacks  ((i)
     through (vii)  together not to exceed twenty percent (20%) of aggregate Net
     Sales for any  Year).  No  deductions  shall be made for  other  discounts,
     special promotions, advertising, warehouse, distribution, or any other cost
     incurred by Licensee.  In computing Net Sales, Articles shall be considered
     finally "sold" when shipped or otherwise transferred.

6.   ROYALTIES.

6.1  Upfront Payment. Upon the execution of this Agreement, Licensee will pay to
     Licensor an advance on Royalties  in the amount  equal to  $200,000,  which
     amount will be credited  against  the  payment of the first  Royalties  due
     under this Agreement.

                                       11
<PAGE>

6.2  Minimum  Royalties.  Commencing on October 1, 2003, subject to Section 6.1,
     Licensee shall pay to Licensor on a quarterly  basis in equal  installments
     in the manner  provided for in Sections  6.5 and 14.5  hereof,  the minimum
     royalties as set forth in Exhibit B hereto (the " Minimum Royalties").

6.3  Percentage  Royalties.  (a) Commencing with the first shipment of Articles,
     ---------------------
     Licensee will pay to Licensor on a quarterly  basis in the manner  provided
     for in Section 6.5 below, a royalty equal to ++% of Net Sales
     ("Percentage Royalties").
     -----------------------

6.4  Calculation  of  Royalties.  All  payments  of Minimum  Royalties  for each
     ---------------------------
     Quarter will be credited against Percentage Royalties due for that Quarter.
     If at the end of any  Quarter,  the  amount  of  Percentage  Royalties  due
     exceeds the Minimum  Royalties paid,  Licensee shall pay to Licensor in the
     manner  provided  for in Sections 6.5 and 14.5 the  difference  between the
     Minimum Royalties paid and the Percentage  Royalties owed for that Quarter.
     Percentage  Royalties  payable  for each  Quarter  shall be computed on the
     basis of Articles shipped by Licensee during such Quarter.

6.5  Payment of Royalties. Minimum Royalties shall be accounted for on the basis
     --------------------
     of each Quarter,  and shall be paid in United  States  Dollars on the first
     day of each

     [++ represents confidential treatment request]

     Quarter.  Percentage  Royalties shall be accounted for on the basis of each
     Quarter, and shall be paid in United States Dollars within thirty (30) days
     following  the close of each  Quarter (or  portion  thereof in the event of
     prior termination of this Agreement for any reason).  All payments shall be
     in  accordance  with  this  Section  and  Section  14.5 of this  Agreement.
     Notwithstanding  the foregoing,  once the sum of the Minimum  Royalties and
     Percentage Royalties paid for a particular Year equals or exceeds the total
     Minimum Royalties payable for such Year, no further Minimum Royalties shall
     be payable for such Year.

6.6  Currency  Exchange.  Licensee  shall  calculate  Net Sales  and  Percentage
     Royalties  for any  Quarter in the first  instance  in the  currency of the
     country in which the relevant sales were made by Licensee  (unless  payment
     was made in United States Dollars), and then shall convert such amount into
     United States dollars,  using as the rate of exchange the average rate that
     has been in effect for the Quarter, as reported by the Bloomberg service or
     such other reporting  service as may be agreed to by the Parties.  Licensee
     shall state  clearly in any  statement  that  involves  the  conversion  of
     currency  the Net Sales stated in the local  currency and in United  States
     dollars and state clearly the exchange rate used.

7.   ADVERTISING AND MARKETING.
     -------------------------

                                       12
<PAGE>

7.1  Advertising  and  Promotional  Materials.  (a) Licensee  acknowledges  that
     Licensor's policy is to create and maintain a uniform concept and image for
     Articles  consistent  with the image and  prestige  of the  Licensed  Mark.
     Licensee  acknowledges and agrees that Licensor shall have complete control
     and approval over all aspects of any  advertisement  of Articles  (Licensor
     acknowledges  that  certain   retailers  may  advertise   Articles  through
     cooperative  advertising in a manner beyond Licensee's reasonable control).
     Notwithstanding  the foregoing,  Licensor  agrees to consult with Licensee,
     and consider in good faith all suggestions made by Licensee,  in connection
     with the advertisement of Articles and not to effect any fundamental change
     in the image of of the brand as it relates to Articles  without  Licensee's
     consent,  which will not be unreasonably  withheld.  In addition,  Licensor
     agrees to use its best  efforts to include  Articles in all  advertisements
     that are funded through the Advertising Royalties.

     (b)  Licensor shall develop and place national or institutional advertising
          for  Articles  through  its  advertising  department.  Licensee  shall
          cooperate with, and assist Licensor, as necessary (provided that it is
          not required to expend more than nominal  amounts),  in developing and
          placing  all  such  national  and/or  institutional   advertising  for
          Articles.

7.2  Advertising Royalties.  (a) In addition to amounts payable under Section 6,
     ---------------------
     Licensee shall pay minimum  advertising  royalties to Licensor for national
     and institutional  advertising of Articles equal to ++ percent (++%) of Net
     Sales or Minimum Net Sales,

                                       13
<PAGE>

     whichever is greater, for each Year (the "Advertising Royalties",  referred
     to collectively  with  Percentage  Royalties as  "Royalties").  Advertising
     Royalties  shall be paid to Licensor on the first day of each Quarter along
     with the Minimum  Royalties in accordance  with Section 6.5. If, at the end
     of any Quarter,  Licensee's  payments are less than the amounts required to
     be paid,  the difference  shall be paid to Licensor  thirty (30) days after
     the end of the Quarter along with the payment of Percentage  Royalties.  It
     is understood that Licensee remains obligated to pay Advertising  Royalties
     regardless  of  whether  or not  payment of such  amounts  would  result in
     payments  exceeding  the  Minimum  Royalties;  provided,  however,  that no
     Advertising  Royalties shall be payable on Net Sales to the extent that (A)
     the Net Sales are "first  cost  sales"  (sales that are factory to customer
     direct) and (B) such "first cost sales" do not exceed ten percent  (10%) of
     "landed sales".  Notwithstanding anything to the contrary contained in this
     Agreement,  Licensee shall be entitled to a deduction  against  Advertising
     Royalties for co-op advertising  actually authorized and spent by Licensee,
     which amount of such deduction shall not exceed 0.4% of Net Sales or 20% of
     Advertising  Royalties,  whichever is greater. In no event shall the amount
     of such deduction exceed $400,000 in any Year.

     (b)  All  Advertising  Royalties  shall be spent by Licensor on advertising
          that relates directly to Articles.

     (c)  At Candie's request,  Licensee will make a charitable  contribution of
          $50,000  per Year  for  each of the  initial  three  (3)  Years of the
          Initial  Term to The  Candie's  Foundation  for use in  promoting  its
          charitable  cause  ("The  Candie's  Foundation   Contribution").   The
          Candie's  Foundation  Contribution  shall  be  paid  to  The  Candie's
          Foundation c/o Candie's in equal installments on the first day of each
          Quarter  along  with the  Advertising  Royalties  in  accordance  with
          Section 6.5. It is understood that Licensee  remains  obligated to pay
          The  Candie's  Foundation  Contribution  regardless  of whether or not
          payment of such  amounts  would result in payments  exceeding  Minimum
          Royalties or Advertising Royalties.

8.   OWNERSHIP OF LICENSED MARK.
     --------------------------

8.1  Unauthorized  Uses.  Licensee  shall not use or  register,  or authorize or
     attempt to use or  register,  the  Licensed  Mark or any source  identifier
     confusingly similar thereto, including without limitation trademarks, trade
     names,  corporate  names,  or domain names,  in whole or in part.  Licensee
     shall not join any name or names with the Licensed Mark so as to form a new
     or composite  mark.  Licensee shall not use any name or names in connection
     with the Licensed Mark in any advertising,  publicity,  labeling, packaging
     or printed matter  otherwise than in connection with Articles in accordance
     with the terms and conditions of this Agreement.  Notwithstanding  anything
     hereinabove to the contrary, Licensee may use the name "Candie's" as a name
     of Licensee's division and/or subsidiary which  manufacturers  and/or sells
     the Articles provided that all documents  reflecting such name (other than,
     in the  case  of a  subsidiary,  its  Certificate  of  Incorporation)  also
     indicates "a division [or subsidiary] of Steven Madden, Ltd."

8.2  Licensor to Remain Owner.  Licensee acknowledges that Licensor is the owner
     of all  right,  title  and  interest  in and to the  Licensed  Mark  in the
     Territory  in any and all forms or  embodiment  thereof,  and in some cases
     applicant for the registration, or registrant, of the Licensed Mark, and is
     also the owner of the  goodwill  attached  or which shall  become  attached
     thereto in connection  with the business and goods in relation to which the
     same has been,  is or shall be used  (including  any  goodwill  arising  in
     connection with the  manufacture,  distribution  and sale of Articles).  As
     such,  all  goodwill  developed in the Licensed  Mark  resulting  from this
     Agreement inures solely to Licensor's  benefit.  Licensee shall not, at any
     time,  do or suffer to be done any act or thing which may in any way damage
     or  disparage,  blur or  tarnish,  or  otherwise  dilute  the fame of,  the
     Licensed Mark or its reputation, or adversely affect any rights of Licensor
     in and to the Licensed Mark or in and to any  registrations or applications
     thereof,  or which,  directly  or  indirectly,  may reduce the value of the
     Licensed Mark, or detract from its reputation and goodwill.

8.3  Confirmation of Ownership.  Licensor shall take reasonable steps to protect
     the Licensed Mark in the Territory.  At Licensor's request,  Licensee shall
     execute any documents  reasonably  required by Licensor in order to confirm
     Licensor's  rights in and to the  Licensed  Mark in the  Territory  and the
     respective  rights of Licensor  and  Licensee  pursuant to this  Agreement.
     Licensee shall  cooperate with Licensor in connection  with the recordal of
     this  Agreement,  in connection with any filing and prosecution by Licensor
     of  applications  in  Licensor's  name to register  the  Licensed  Mark for
     Articles in the Territory, and any derivations thereof, and the maintenance
     and renewal of such registrations as may issue.

8.4  Prohibition  Against Challenge.  Licensee shall never challenge  Licensor's
     ownership of or the validity of the Licensed  Mark,  or of any  application
     for  registration  thereof by Licensor,  or of any  trademark  registration
     therefor, or any rights of Licensor therein or which derive from marks that
     are confusingly similar to the Licensed Mark.

                                       14
<PAGE>

8.5  Notification to Licensor. In the event any Party learns of any infringement
     or imitation of the Licensed  Mark, it shall give prompt  written notice to
     the other Parties thereof.  Licensor thereupon shall take such action as it
     deems  advisable  for the  protection  of its rights in and to the relevant
     Licensed  Mark and  Licensee,  if  requested  to do so by  Licensor,  shall
     cooperate with Licensor in all respects including,  without limitation,  by
     being a  plaintiff  or  co-plaintiff  in any  related  legal  action and by
     causing its officers and  employees to provide  necessary  documents and to
     give testimony (provided that Licensee's  reasonable costs and expenses are
     paid or reimbursed by Licensor).  In no event,  however,  shall Licensor be
     required  to take  any  action  if it deems it  inadvisable  to do so,  and
     Licensee  shall  have no right  to take  any  action  with  respect  to the
     Licensed  Mark  without  Licensor's  prior  written  approval  (not  to  be
     unreasonably  withheld or delayed).  Licensor  shall have sole control over
     any action taken to protect the Licensed  Mark,  except as it may otherwise
     permit.  Licensor shall be responsible  for costs and expenses  incurred in
     connection  with any legal action  instituted to protect the Licensed Mark,
     except to the extent  that any such costs or  expenses  are  incurred  as a
     result of Licensee's breach of this Agreement.

9.   REPORTS; RECORDS; AUDITS.
     ------------------------

9.1  Quarterly Statements and Reports.  Licensee shall deliver to Licensor, in a
     format  acceptable  to Licensor,  within  thirty (30) days after the end of
     each Quarter (or portion thereof,  in the event of prior termination of the
     Term for any  reason),  a report,  certified to be complete and accurate by
     Licensee's Chief Financial  Officer,  broken down by each region or country
     in  the  Territory,   in  detail   reasonably   satisfactory  to  Licensor,
     reflecting:  (i) the gross  invoice  price  paid for  Articles  sold in the
     Quarter,  by customer,  (ii) the aggregate amount of returns,  markdowns or
     other deductions taken or made during such Quarter, (iii) the amount of Off
     Price Articles sold and first cost sales made during the Quarter;  (iv) the
     amount  of co-op  advertising;  and (v) Net Sales  and the  computation  of
     Royalties payable for such Quarter, together with such other information as
     Licensor may  reasonably  request from time to time.  In the event of sales
     outside the United States, reports must identify the country where products
     are sold and to the extent applicable,  Licensee must provide copies of all
     tax certificates or the equivalents  thereof supplied to or received by the
     applicable foreign government.

9.2  Annual Statements and Reports.  Licensee shall deliver to Licensor by April
     1 of each Year (or portion  thereof,  in the event of prior  termination of
     the Term for any reason) in detail  reasonably  satisfactory  to  Licensor,
     statements and a report certified to be complete and accurate by Licensee's
     Chief Financial Officer  reflecting for such Year the information  provided
     pursuant to Section 9.1, and such other and additional  relevant  financial
     information as may be regularly available to management  (including,  if so
     available,  open undelivered  orders). If such statement discloses that the
     amount of  Royalties  paid to  Licensor  during  the  period to which  such
     statement  relates is less than the amount  required to be paid to Licensor
     pursuant to this Agreement,  then,  within ten (10) Business Days after the
     delivery of such  statement,  Licensee  shall pay to Licensor the amount of
     such  deficiency.  Licensee  will  not be  permitted  to  make  retroactive
     adjustments  to  statements at any time  exceeding 12 months  following the
     date of the statement.

                                       15
<PAGE>

9.3  Books and Records; Audits. (a) Licensee shall prepare and maintain, in such
     manner as will allow accountants to perform an audit, complete and accurate
     books of account and records (specifically  including,  without limitation,
     the originals or copies of documents and supporting entries in the books of
     account)  covering  all  transactions  arising  out of or  relating to this
     Agreement.  Licensor and its duly authorized representatives shall have the
     right at any time and from time to time (but not more  often  than one time
     in each Year),  with reasonable  notice during regular  business hours, for
     the  duration  of this  Agreement  and for three (3) years  thereafter,  to
     inspect  and/or  audit said books of account  and  records  and examine all
     other  documents  and  material in the  possession  or under the control of
     Licensee with respect to the subject matter and the terms of this Agreement
     for  the  entire  Term,  including,  without  limitation,  detailed  sales,
     inventory,  manufacturing,  purchasing,  invoicing,  shipping  and transfer
     documents,  customer lists,  purchase and sales orders,  cost  information,
     pricing policies and the underlying financial statements kept in connection
     therewith.  All such books of account,  records and documents shall be kept
     available by Licensee for at least four (4) years following the termination
     or expiration of this  Agreement,  or such longer period as may be required
     by applicable tax laws.

     (b)  If,  as a  result  of any  inspection  of any  statement  or  audit of
          Licensee's books and records or otherwise, it is determined (following
          any third party review as provided  below) at any time that Licensee's
          payments to Licensor  hereunder  were less than the amount that should
          have been paid with  respect to any such period by an amount  equal to
          five percent (5%) or more of the  appropriate  amount due with respect
          to the period in question,  Licensee shall reimburse  Licensor for all
          reasonable  costs and  expenses  of Licensor  and its  representatives
          incurred in connection  with any  inspection  and/or audit pursuant to
          which the  deficiency  was  discovered  and shall make within ten (10)
          Business  Days  following  Licensor's  demand  therefor,  all payments
          required to be made to eliminate any deficiency.

     (c)  If,  as a  result  of any  inspection  of any  statement  or  audit of
          Licensor's books and records or otherwise, it is determined (following
          any third party review as provided  below) at any time that the amount
          actually  expended by Licensor in connection with the advertisement of
          Articles as provided for herein is five percent (5%) or more less than
          the  amount  required  to have  been  expended  thereon  by  Licensor,
          Licensor  shall  reimburse  Licensee  for  all  reasonable  costs  and
          expenses of Licensee and its  representatives  incurred in  connection
          with any inspection  and/or audit pursuant to which the deficiency was
          discovered  and  shall,   within  ten  (10)  Business  Days  following
          Licensee's  demand  therefor,  pay  to  Licensee  the  amount  of  the
          shortfall.

                                       16
<PAGE>

     (d)  Licensor  shall  prepare  and  maintain,  in such manner as will allow
          accountants  to  perform  an audit,  complete  and  accurate  books of
          account and records (specifically including,  without limitation,  the
          originals or copies of documents and  supporting  entries in the books
          of account) covering all advertising transactions relating to Articles
          for which it has  utilized  Advertising  Royalties  arising  out of or
          relating  to  this   Agreement.   Licensee  and  its  duly  authorized
          representatives shall have the right at any time and from time to time
          (but not more often than one time every two  Years),  with  reasonable
          notice  during  regular  business  hours,  for  the  duration  of this
          Agreement and for three (3) years thereafter,  to inspect and/or audit
          said books of account and records and examine all other  documents and
          material  in the  possession  or under the  control of  Licensor  with
          respect to the subject  matter and the terms of this Agreement for the
          entire Term. All such books of account, records and documents shall be
          kept  available by Licensor for at least four (4) years  following the
          termination or expiration of this Agreement,  or such longer period as
          may be required by applicable tax laws.

     (e)  In the event a Party  disputes  the  results  of an audit,  the matter
          shall be submitted to a independent accounting firm mutually agreeable
          to the  Parties  for  resolution.  The  decision  of  the  independent
          accounting firm shall be binding upon the Parties hereto.  The Parties
          shall share the fees and expenses of the  independent  accounting firm
          equally.

9.4  Forecasting Information.  Licensee will provide to Licensor, on a quarterly
     basis  forecasts of sales for each Quarter of the applicable  Year, and, on
     an annual basis for the next Year,  in such form and detail  sufficient  to
     allow  Licensor to  reasonably  project for  budgeting  purposes  Royalties
     expected to be paid by Licensee.

10.  TERMINATION.
     -----------

10.1 Nonpayment of Financial Obligations.  Licensor may terminate this Agreement
     upon thirty (30) days'  written  notice if Licensee  defaults in any of its
     payment  obligations  set  forth in this  Agreement  and  fails to cure the
     default within such thirty (30) day period.

10.2 Failure to Achieve Minimum Net Sales. In the event that Licensee shall have
     failed to achieve Minimum Net Sales for each Year as set forth in Exhibit B
     hereto  and  modified  by  Section  5.1  (b)  hereof,  such  failure  shall
     constitute  a  material  default  hereunder  and  Licensor  may  cancel and
     terminate  this  Agreement  in whole  within ten (10) days of the date that
     Licensor learns of such failure.

                                       17
<PAGE>

10.3 Breach of  Agreement.  In addition  to the rights of Licensor  set forth in
     Sections 10.1 and 10.2,  either Party may terminate  this  Agreement if the
     other  Party  commits  any  other  material  breach  of the  terms  of this
     Agreement.  The Party claiming breach must provide thirty (30) days written
     notice to the  alleged  breaching  Party  setting  forth the  nature of the
     breach and the required  curative  actions.  If the alleged breaching Party
     fails to cure the  breach by the end of the  thirty  (30) day  period,  the
     Agreement  may  be  terminated  immediately  with  no  further  notice.  In
     addition,  Licensee shall have the right to terminate this Agreement in the
     event a court of competent  jurisdiction  enjoins  Licensee  from using the
     Licensed Mark in association with Articles in the United States. Such right
     to terminate this Agreement shall not preclude either Party from exercising
     any and all rights or remedies available to it at law or in equity.

10.4 Bankruptcy,   Insolvency.  In  the  event  Licensee  files  a  petition  in
     bankruptcy,  or is  adjudicated  a  bankrupt  or  insolvent,  or  makes  an
     assignment  for the benefit of creditors,  or files a petition or otherwise
     seeks  relief  under  or  pursuant  to  any   bankruptcy,   insolvency   or
     reorganization  statute or proceeding,  or if it discontinues  its business
     for a period of sixty (60) days or more,  or if a  custodian,  receiver  or
     trustee is  appointed  for it or a  substantial  portion of its business or
     assets for any reason, this Agreement shall terminate  immediately.  In the
     event  that  Licensee  defaults  on any  obligation  that is  secured  by a
     security  interest in any Articles and such default  results in foreclosure
     of the security interest thereon, such event to be deemed a material breach
     hereunder,  either Party shall have the right to terminate  this  Agreement
     immediately.

10.5 Assignment for Creditors.  (a) Neither  Licensee as debtor (the  "Debtor"),
     nor any assignee for the benefit of creditors, custodian, receiver, trustee
     in  bankruptcy,  sheriff  or any other  officer  of the  court or  official
     charged with taking over custody of  Licensee's  assets or business,  shall
     have the right to continue  this  Agreement or to exploit or in any way use
     the Licensed Mark.

     (b)  Notwithstanding  the provisions of this Section 10, in the event that,
          pursuant to the United  States  Bankruptcy  Code or any  amendment  or
          successor thereto (hereinafter  referred to as the "Bankruptcy Code"),
          a trustee in  bankruptcy of Licensee  (hereinafter  referred to as the
          "Trustee")  is  permitted  to assume this  Agreement  and does so and,
          thereafter,  desires to assign this Agreement to a third party,  which
          assignment  satisfies the  requirements  of the  Bankruptcy  Code, the
          Trustee or the Debtor,  as the case may be, shall  notify  Licensor of
          same in writing (hereinafter referred to as the "Notice").  The giving
          of the Notice shall be deemed to constitute  the grant of an option to
          Licensor to have this Agreement  assigned to it or to its designee for
          such  consideration,  or its equivalent in money, and upon such terms,
          as are specified in the Notice.  The aforesaid option may be exercised
          only by written notice given by Licensor to the Trustee or the Debtor,
          as the case may be, within fifteen (15) days after Licensor's  receipt
          of the Notice from such party or such shorter period of time as may be
          deemed  appropriate  by the  court in the  bankruptcy  proceeding.  If
          Licensor  fails to give its notice to such party  within the  exercise
          period,  such party may  complete  the  assignment  referred to in its
          Notice but only to the  entity  named in the Notice and upon the terms
          specified  therein.  Nothing  contained  herein  shall  be  deemed  to
          preclude or impair any rights that  Licensor may have as a creditor in
          any bankruptcy proceeding.

                                       18
<PAGE>

10.7 Reservation of Remedies  Rights.  Licensor has and hereby  reserves all the
     rights and remedies that it has or that are granted to by operation of law,
     to collect  monies  due,  earned or payable by  Licensee  pursuant  to this
     Agreement,  to be compensated  for damages for breach of this Agreement and
     to enjoin the unlawful or  unauthorized  use of the Licensed Mark,  without
     the necessity of proving actual  damages,  which  injunctive  relief may be
     sought prior to or in lieu of termination.

11.    RIGHTS UPON TERMINATION.
       -----------------------

11.1 Sell-Off; Termination of Production. (a) Upon the expiration or termination
     of this  Agreement,  Licensee  shall cease all  manufacture,  distribution,
     sale, advertising,  promotion and sourcing of Articles. Notwithstanding the
     foregoing,  current  work-in-process  for  which  raw  materials  have been
     received  and which are the subject of existing  confirmed  orders,  may be
     completed and sold off in accordance with this  Agreement,  except in cases
     of  termination  resulting  from  Licensee's  breach of the  provisions  of
     Section 3, in which case no defective Articles may be sold.

     (b)  All labels, tags, and other such items and Packaging Materials bearing
          the  Licensed  Mark that are not  required to complete  the  aforesaid
          current  work in process  shall be, at  Licensor's  option in its sole
          discretion,  sent or shipped to  Licensor  immediately  (at no cost to
          Licensor)  or  destroyed,   with  Licensee  providing  proof  of  such
          destruction  to  Licensor  in  the  form  of  a  sworn   statement  or
          certificate.

11.2 Inventory.  Within thirty (30) days following the expiration or termination
     of this  Agreement,  Licensee  shall  deliver to  Licensor  a complete  and
     accurate  schedule of Licensee's  inventory of finished  Articles,  related
     work-in-process   then  on  hand  and   confirmed   orders   (collectively,
     "Inventory").  Such schedule  shall be prepared as of the close of business
     on the date of such expiration or termination and shall reflect  Licensee's
     actual  documented  manufacturing  cost of each such item, such cost not to
     include any  allocation  of general and  administrative  costs,  design and
     development  costs and similar  items.  Licensor  thereupon  shall have the
     option  (the  "Option"),  exercisable  by notice in  writing  delivered  to
     Licensee  within ten (10) days  after  Licensor's  receipt of the  complete
     Inventory  schedule,  to purchase any or all of the  Inventory  (other than
     Inventory  needed to fill  existing  orders) at a price equal to Licensee's
     landed  cost plus a ten percent  (10%)  handling  charge.  In the event the
     Option is exercised by Licensor,  Licensee shall deliver to Licensor or its
     designee  the  Inventory  in  Licensee's  possession  subject to the Option
     within  twenty  (20) days  following  Licensor's  notice of exercise of the
     Option,  or with  respect  to that  part  of the  Inventory  that is not in
     Licensee's  possession,  within  twenty  (20)  days of  Licensee's  receipt
     thereof.  Licensor  shall pay Licensee for such  Inventory as it elected to
     purchase concurrently with its receipt thereof.

                                       19
<PAGE>

11.3 Sell-Off.  To the extent that Licensor does not exercise the Option for the
     Inventory,  Licensee  shall be  entitled,  for a period of four (4)  months
     following the  expiration or  termination  of this  Agreement,  to sell and
     dispose of such of the  Inventory  as  Licensor  did not elect to  purchase
     pursuant  to the  Option,  except  that,  if Licensor  has  terminated  the
     Agreement by reason of Licensee's  material  breach  thereof,  no defective
     Articles may be sold by  Licensee.  Such sales shall be made subject to all
     of the  provisions  of this  Agreement,  including  without  limitation  an
     accounting  therefor and the payment of  Percentage  Royalties  thereon but
     excluding  Advertising Royalties thereon. Such accounting and payment shall
     be due within  thirty (30) days  following  the earlier of the close of the
     four-month  period  during  which the  Inventory  was sold,  or the sale by
     Licensee of all of said Inventory.

11.4 Termination of Rights. Except as specifically provided in Sections 11.1 and
     11.3 hereof,  upon the  expiration or  termination of this Agreement all of
     the rights of Licensee under this Agreement shall  terminate  forthwith and
     shall revert immediately to Licensor, and Licensee no longer shall have the
     right to use the Licensed Mark, or any variation or simulation thereof, and
     shall then  discontinue  all use of the Licensed  Mark,  and promptly shall
     transfer to Licensor,  at no cost to Licensor,  all registrations,  filings
     and rights with regard to the Licensed Mark which it may have  possessed at
     any time. In addition,  Licensee thereupon shall deliver to Licensor, at no
     cost to Licensor,  all items such as sketches,  advertisements,  brochures,
     forms, and other materials in its possession  relating to or bearing on the
     Licensed Mark (other than those items to which  Licensee shall have title).
     From and after expiration or termination of this Agreement,  Licensee shall
     not use or permit others to use any such items or other  materials,  or any
     variations thereof, in connection with Articles or any other merchandise.

12.   REPRESENTATIONS, WARRANTIES AND COVENANTS.
      -----------------------------------------

12.1 As to Licensor.  Each of Licensor and Candie's hereby represents,  warrants
     --------------
     and covenants that:

     (a)  Licensor is the owner of the  Licensed  Mark in the United  States and
          has applied for or obtained  registrations of the Licensed Mark as set
          forth on Exhibit A;

     (b)  It has the  full  right,  power  and  authority  to  enter  into  this
          Agreement  and to perform  all of its  obligations  and all  necessary
          limited  liability company and corporate actions have been taken by it
          to render this  Agreement a legal,  valid and  binding  obligation  of
          Licensor and Candie's enforceable in accordance with its terms;

                                       20
<PAGE>

     (c)  Candie's is a corporation duly  incorporated,  validly existing and in
          good standing under the laws of the State of Delaware;

     (d)  Licensor  is a  limited  liability  company  duly  organized,  validly
          existing and in good standing under the laws of the State of Delaware.

     (e)  Licensor  has not  entered  into,  and shall not enter into during the
          Term,  any other  agreement,  contract,  understanding  or  commitment
          (collectively, "Contract"), and is not subject to any order, decree or
          ruling,  which would prohibit Licensor from performing its obligations
          under this  Agreement,  and is not a party to any Contract  that would
          otherwise  be violated by  Licensor's  entering  into this  Agreement,
          including  any  agreement,  contract,   understanding  or  commitment,
          pursuant  to which  Licensor  grants  with  respect to the  Articles a
          license for a trademark to a third party which is confusingly  similar
          to the Licensed Mark;.

     (f)  Licensor is not aware of any claim or assertion that the Licensed Mark
          with  respect  to  Articles  infringes  upon or  interferes  with  any
          trademark right of any third party in the United States;

     (g)  Licensor  has not granted any option,  right,  privilege or license to
          any third party which conflicts with the rights and privileges granted
          to Licensee hereby;

     (h)  All required consents of third parties to the execution,  delivery and
          performance  of this  Agreement by Licensor and  Candie's,  including,
          without  limitation,  the consent of the Trustee and the holder of the
          Notes, have been obtained;

     (i)  Effective  with  the  execution  of this  Agreement,  Candie's  has no
          license or other right in or to the Licensed  Mark with respect to the
          Articles;

     (j)  Licensor is the sole owner of the Licensed Mark, free and clear of any
          and all  liens,  claims,  security  interests  and other  encumbrances
          except for the  security  interest of  Wilmington  Trust  Company,  as
          trustee (the "Trustee"), and factor therein;

     (k)  Licensor and Candie's  shall comply in all material  respects with all
          applicable laws, rules and regulations;

12.2 As to Licensee.  Licensee hereby  represents,  warrants and covenants that:
     --------------

     (a)  It has the  full  right,  power  and  authority  to  enter  into  this
          Agreement  and to perform  all of its  obligations  and all  necessary
          corporate  actions  have been taken by it to render  this  Agreement a
          legal,  valid  and  binding  obligation  of  Licensee  enforceable  in
          accordance with its terms;

                                       21
<PAGE>

     (b)  It is a corporation  duly  incorporated,  validly existing and in good
          standing under the laws of the State of Delaware; and

     (c)  All necessary corporate resolutions have been effected by it to render
          this  Agreement  a valid,  legal and  binding  obligation  of Licensee
          enforceable in accordance  with its terms,  which  obligation does not
          cause the violation of any agreement to which Licensee is a party.

     (d)  Licensee  has not  entered  into,  and shall not enter into during the
          Term, any other Contract,  and is not subject to any order,  decree or
          ruling,  which would prohibit Licensor from performing its obligations
          under this  Agreement,  and is not a party to any Contract  that would
          otherwise be violated by Licensee's entering into this Agreement;

     (e)  Licensee  shall comply in all material  respects  with all  applicable
          laws, rules and regulations

12.3 Disclaimers of Warranties.  EXCEPT FOR THE  REPRESENTATIONS  AND WARRANTIES
     EXPRESSLY  STATED HEREIN,  NEITHER LICENSEE NOR LICENSOR NOR CANDIE'S MAKES
     ANY OTHER  REPRESENTATIONS  OR  WARRANTIES  OF ANY KIND,  WHETHER  EXPRESS,
     IMPLIED OR STATUTORY (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES
     ARISING FROM TRADE USAGE, COURSE OF DEALING,  OR COURSE OF PERFORMANCE,  OR
     THE  IMPLIED  WARRANTIES  OF TITLE,  NON-INFRINGEMENT,  MERCHANTABILITY  OR
     FITNESS FOR A  PARTICULAR  USE OR  PURPOSE),  AND  LICENSEE,  LICENSOR  AND
     CANDIE'S HEREBY EXPRESSLY DISCLAIM ALL SUCH REPRESENTATIONS AND WARRANTIES.

12.4.No  Consequential  Damages.  LICENSOR  AND  CANDIES,  AND THEIR  RESPECTIVE
     AFFILIATES,  SHALL NOT BE LIABLE TO LICENSEE OR TO ANY OTHER  INDIVIDUAL OR
     ENTITY FOR ANY INDIRECT, SPECIAL, PUNITIVE,  EXEMPLARY,  CONSEQUENTIAL,  OR
     INCIDENTAL LOSS OR DAMAGE OF ANY KIND OR NATURE, RELATING TO OR ARISING OUT
     OF THIS AGREEMENT OR THE USE OF THE LICENSED TRADEMARKS,  INCLUDING BUT NOT
     LIMITED TO ANY LOSS OF REVENUES, ANTICIPATED PROFITS OR SAVINGS, OR LOSS BY
     REASON OF SHUTDOWN IN OPERATION  OR FOR  INCREASED  EXPENSES OF  OPERATION,
     EVEN IF LICENSOR,  CANDIES, OR ANY OF THEIR AFFILIATES HAVE BEEN ADVISED OF
     THE  POSSIBILITY  OF SUCH  LOSSES OR  DAMAGES.  THIS  SUBSECTION  SHALL NOT
     RELIEVE LICENSOR,  CANDIE'S, OR THEIR AFFILIATES FROM LIABILITY FOR DAMAGES
     THAT RESULT FROM (i) THEIR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT;  OR (ii)
     WRONGFUL  TERMINATION  OF THIS  AGREEMENT,  OR (iii) A BREACH OF ANY OF THE
     PROVISIONS OF SECTION 12.1.

                                       22
<PAGE>

12.5.Independent  Limitations.  Each of the above  disclaimers or limitations is
     ------------------------
     intended to be  independent of each other.  This is intended,  for example,
     where a remedy is found to have failed of its essential purpose.

13.   HOLD HARMLESS.
      -------------

13.1 Licensee's  Indemnification;  Insurance.  (a) Licensee shall  indemnify and
     hold  harmless  Licensor and each of its  directors,  officers,  employees,
     contractors, agents and affiliates ("Licensor Affiliates") from any and all
     claims,  suits,   judgments,   losses,  damages  and  expenses,   including
     reasonable attorneys' fees (collectively, "Losses"), of any kind whatsoever
     that  arise  in any  way  from:  (i)  Licensee's  material  breach  of this
     Agreement;  and  (ii)  the  manufacture,  sale,  distribution,  production,
     promotion,  or transportation  of Articles,  except to the extent that such
     Losses are caused by Licensor's negligence, willful misconduct or breach of
     this Agreement. Licensee shall have the right to defend any action or claim
     with respect to which Licensor or Licensor  Affiliates shall be entitled to
     indemnification hereunder.

     (b)  Throughout  the  Term  Licensee  shall  maintain  products   liability
          insurance,  or insurance  providing  protection  against claims of the
          nature commonly  provided  against by such insurance,  in either case,
          providing coverage against claims on the basis currently in effect, in
          an amount not less than three million  dollars  ($3,000,000),  with an
          aggregate  limit of not less than  ($5,000,000).  Such policy shall be
          written to include Licensor as an additional insured and shall provide
          for thirty (30) days prior written notice of termination,  non-renewal
          or material reduction in coverage to Licensor.  Licensee shall deliver
          to  Licensor  a  certificate   evidencing  such  continuing  insurance
          coverage of Licensor  within thirty (30) days  following the execution
          hereof.  Insurance  will not be deemed to limit the amount or scope of
          the indemnification provisions of this Agreement.

13.2 Licensor's  Indemnification.  Licensor  shall  defend,  indemnify  and hold
     Licensee  and  each of its  directors,  officers,  employees,  contractors,
     agents and  affiliates,  harmless  from and  against any Losses of any kind
     whatsoever  that arise in any way from (i) any  actual or  alleged  patent,
     trademark,  trade dress or copyright infringement resulting from the use of
     the  Licensed  Mark by  Licensee  as  permitted  or  authorized  under this
     Agreement;  (ii) Licensor's  material breach of this Agreement,  including,
     without  limitation,  a  breach  of  the  representations,  warranties  and
     covenants  set forth in Section  12.1  hereof;  (iii) the  advertising  and
     promotion of Articles;  and (iv) the operation of the Webstore prior to the
     date  hereof,  and to the  extent  that  such  Losses  are  not  caused  by
     Licensee's  negligence,  willful  misconduct  or breach of this  Agreement.
     Licensor shall have the right to defend any action or claim with respect to
     which Licensee or Licensee  Affiliates shall be entitled to indemnification
     hereunder.

                                       23
<PAGE>

13.3 Notice of Claim. A Party seeking indemnification under this Agreement shall
     promptly notify the indemnifying  party of the subject matter,  parties and
     other material information relating to such claim.

14.    MISCELLANEOUS.
       -------------

14.1 Governing Law; Forum.  This Agreement shall be interpreted and construed in
     accordance  with the laws of the State of New York,  without  regard to its
     internal  conflict of laws  principles.  In connection  with any litigation
     relating hereto,  the Parties shall subject  themselves  exclusively to the
     jurisdiction of the federal and state courts sitting within the City of New
     York.

14.2 Binding  Effect.  The rights and  obligations  set forth in this  Agreement
     ---------------
     shall  be  binding  upon  and  shall  inure  to the  benefit  of the  legal
     successors and permitted assigns of the Parties.

14.3 No  Partnership.  Nothing in this Agreement  shall be construed to create a
     ---------------
     partnership  or joint  venture among the Parties.  Nothing  herein shall be
     construed to appoint Licensee as an agent for Licensor in
     other arrangements outside of this Agreement.

14.4 Licensor's Sole Discretion. Unless specifically stated otherwise herein, it
     is understood and agreed that where this  Agreement  provides that Licensor
     shall approve of any matter,  such approval or  disapproval  shall be based
     solely on Licensor's subjective standards and determined in accordance with
     Licensor's good faith discretion.

14.5 Manner of Payment.  All amounts payable to Licensor by Licensee pursuant to
     this  Agreement  shall be paid by wire transfer in United States Dollars by
     Licensee to Licensor in  accordance  with the  reasonable  instructions  of
     Licensor. Checks should be made payable as follows: "IP Holdings LLC" or to
     such payee as Licensor  shall  designate  at any time by written  notice to
     Licensee.

14.6 Interest.  If Licensee  fails to make any payment  due  hereunder  and such
     failure  continues  unremedied  for a period of thirty (30) days  following
     receipt of written  notice of default,  the unpaid balance shall be subject
     to  interest  charges  per  month  equal to 1%.  If  Licensor  or  Licensee
     undertakes  legal action to collect any amount due under this  Agreement or
     obtain any other relief hereunder and is successful,  the other Party shall
     pay  the  successful   Party's  reasonable   collection  costs,   including
     attorneys' fees.

                                       24
<PAGE>

14.7 Assignment.  Licensee  shall  not  assign  any of  its  rights  under  this
     Agreement,  including  the right to  distribute  Articles or to appoint any
     manager or agent in connection  therewith,  to any other Person without the
     prior  written  consent of  Licensor  (not to be  unreasonably  withheld or
     delayed, it being acknowledged and agreed that it shall be unreasonable for
     Licensor  to seek to obtain any  additional  monies or other  consideration
     beyond that provided  herein as a condition to the delivery of its consent)
     and in compliance with the terms  specifically set forth in this Agreement.
     For the purposes of this Agreement,  an assignment  shall be deemed to have
     occurred if (i) Licensee sells, or otherwise disposes of, substantially all
     of its  business  or assets to  another  Person;  (ii)  Licensee  merges or
     consolidates  with or into another Person or consummates  any other form of
     corporate  reorganization;  or (iii) if capital stock of Licensee is issued
     or if issued and outstanding capital stock of Licensee is sold or otherwise
     transferred, with the effect that one or more Persons who are not currently
     stockholders  of  Licensee  hold  beneficial  ownership  of more than fifty
     percent  (50%) of the issued and  outstanding  capital  stock of  Licensee.
     Notwithstanding  anything  hereinabove  to the  contrary,  (a) Licensee may
     assign  its  rights  under  this  Agreement  to a  wholly-owned  subsidiary
     thereof;  and  (b)  Licensor  agrees  that  Licensee  may  subcontract  the
     manufacture  of Articles,  or any portion  thereof,  provided that Licensee
     obtains from any and all  subcontractors an agreement to the effect that no
     use of the Licensed Mark will be made for any purpose other than  supplying
     Articles solely to Licensee.

14.8 Confidentiality. (a) Subject to the ownership provisions of subsection 3.7,
     the  Parties  acknowledge  and agree that all  information  relating to the
     business and operations of the Parties and Licensee's manufacturers learned
     during or prior to the term of this Agreement, the information set forth in
     this  Agreement  and  the  negotiations  relating  thereto   (collectively,
     "Confidential Information"),  are the valuable and confidential property of
     the Party who provides such  information or provides  access  thereto.  The
     Parties acknowledge the need to preserve the confidentiality and secrecy of
     such  information,  and agree  that no Party  shall use or  disclose  same,
     except as expressly permitted in this Agreement,  and each Party shall take
     all  necessary  steps to ensure that its  directors,  officers,  employees,
     agents,  contractors,  subcontractors  and suppliers  shall preserve in all
     respects  such  confidentiality  and  secrecy.   Accordingly,   each  Party
     receiving  the  other  Party's  Confidential  Information  (the  "Receiving
     Party")  shall  permanently  hold,  and cause its  personnel to hold,  such
     Confidential  Information in strict  confidence,  except that the Receiving
     Party may: (i) disclose the Confidential Information that is required to be
     disclosed by governmental agencies,  regulatory authorities, or pursuant to
     court order,  but only to the extent such disclosure is required by law and
     only if the Receiving  Party  provides  prompt prior written  notice to the
     Party disclosing the  Confidential  Information to the Receiving Party (the
     "Disclosing  Party")  of the  disclosure,  and (ii) use and  duplicate  the
     Confidential  Information  only to the  extent  necessary  to  perform  its
     obligations  and  exercise  its  rights  under  this  Agreement.  Except as
     specifically  permitted by this  Agreement,  the Receiving  Party shall not
     duplicate  or use, or permit the  duplication  or use of, the  Confidential
     Information of the Disclosing Party or disclose or permit the disclosure of
     such Confidential Information to any person or entity.

                                       25
<PAGE>

     (b)  The term  "Confidential  Information"  means any and all technical and
          non-technical information of or related to a Party, including, without
          limitation,   patent,  trade  secret,  and  proprietary   information,
          drawings,   inventions,   know-how,   products,   designs,   financial
          information,    procurement   requirements,    suppliers,   customers,
          prospective  customers,   cost  information,   pricing  policies,  and
          business  and  marketing  plans  and  information,  in  whatever  form
          disclosed or made available.  The Confidential  Information of a Party
          represents trade secrets and proprietary property of the Party and has
          great commercial value to the Party.

     (c)  Confidential  Information  does  not  include  items  that  were:  (i)
          possessed  by the  Receiving  Party  prior to receipt or  availability
          pursuant to this  Agreement,  other than through  prior  disclosure or
          availability  by the Disclosing  Party,  as evidenced by the Receiving
          Party's  contemporaneous  written  records  maintained in the ordinary
          course of business,  (ii)  independently  developed  by the  Receiving
          Party  without  the  benefit  of  disclosure  or  availability  by the
          Disclosing    Party,   as   evidenced   by   the   Receiving   Party's
          contemporaneous  written records  maintained in the ordinary course of
          business,  (iii)  published or  available to the general  public other
          than through a breach of this  Agreement or breach by a third party of
          its  confidentiality  obligations  to the  Disclosing  Party,  or (iv)
          obtained by the Receiving  Party from a third party with a valid right
          to disclose or make available such Confidential Information,  provided
          that such third party is not under a confidentiality obligation to the
          Disclosing Party.

     (d)  The specific terms and conditions of this  Agreement,  including,  but
          not limited to, those related to  compensation,  shall be confidential
          and shall not be  disclosed  or made  available by either Party to any
          other person or entity  except to the extent  required by law or legal
          requirement.

     (e)  The Receiving  Party shall deliver to the Disclosing  Party or, at the
          Disclosing   Party's   option,   destroy  any  and  all   Confidential
          Information,  and shall  deliver  to the  Disclosing  Party or, at the
          Disclosing  Party's  option,   destroy  any  and  all  copies  of  the
          Confidential Information in the possession or control of the Receiving
          Party,  upon the expiration or termination of this Agreement or at the
          Disclosing Party's request.

     (f)  The  provisions  of  this  Section  14.8  supersede  and  replace  the
          provisions of that certain Confidentiality  Agreement, dated April 22,
          2003, between Candie's and Licensee.

14.9 Force Majeure.  Neither Party shall be responsible  for failure or delay in
     performing any of its obligations under this Agreement due to force majeure
     causes beyond its control  including,  but not limited to, armed conflicts,
     strikes, acts of God, embargoes, boycotts, restrictions on export, shipping
     or delivery,  strikes,  accidents,  governmental orders,  fires, delays, or
     failure of transportation and floods. If deliveries of Articles are delayed
     because  of any such  cause,  they  shall  be made as soon as  practicable.
     Notwithstanding  any  other  provision  of  this  Agreement,  Licensor  may
     terminate  this  Agreement if an event of force majeure  continues for more
     than one hundred twenty (120) days.

                                       26
<PAGE>

14.10Severability.  If any  portion of this  Agreement  is held to be invalid or
     unenforceable,  the  remaining  provisions  shall not be affected and shall
     remain in full force and effect. In the event that any portion or clause of
     this  Agreement  is  rendered  invalid,  that  portion  or clause  shall be
     stricken herefrom,  and the remainder of the Agreement shall remain in full
     force and effect.

14.11Modification  or Waiver.  This  Agreement  may be modified or a requirement
     thereof waived only by a writing  signed by all Parties.  The waiver of any
     requirement  set forth in this  Agreement  shall not constitute a permanent
     waiver of that requirement or a waiver of any other provision hereof.

14.12Notices.   (a)  All  notices,   requests,   waivers,   consents  and  other
     communications (collectively,  "Notices") hereunder shall be in writing and
     shall be personally delivered, mailed by overnight mail, overnight courier,
     certified U.S. Mail,  postage  prepaid,  return receipt  requested or faxed
     (with  confirmation  of receipt) to the  addresses  first named above.  All
     Notices  sent  to  Licensee  shall  be  directed  to the  attention  of its
     President and copies of all such Notices  shall be sent to Certilman  Balin
     Adler & Hyman, LLP, 90 Merrick Avenue,  East Meadow,  New York 11554, Attn:
     Brian K.  Ziegler,  Esq. All notices sent to Licensor  shall be sent to the
     attention of Candie's, Inc., CEO, and IP Holdings, LLC

     (b)  All Notices shall be deemed received when given if delivered in person
          or sent by fax or e-mail,  receipt  within  forty  eight (48) hours if
          sent  by  courier,  and  within  five  (5)  business  days  if sent by
          registered or certified mail.

14.13Other  Merchandise.  Nothing herein  contained  shall be construed to limit
     Licensor in any way from  entering into  agreements  with third parties for
     use  of the  Licensed  Mark  on or in  connection  with  items  other  than
     Articles.  Licensor  agrees  to  include  in any such  agreements  standard
     provisions protecting the integrity of the Licensed Mark.

14.14Execution in  Counterparts.  This Agreement may be executed in counterparts
     by the Parties with each such counterpart then being considered one and the
     same and both of which shall constitute one and the same agreement.

14.15Headings.  The  headings  and  captions  used  in  this  Agreement  are for
     convenience  only and shall not be deemed to limit,  amplify  or modify the
     terms of this Agreement nor affect the meaning thereof.

14.16Entire  Agreement.  This  Agreement  embodies  the entire  agreement of the
     Parties with respect to the subject  matter hereof and there are no further
     agreements or understandings among the Parties with respect to such subject
     matter.

                                       27
<PAGE>

14.17Certain Definitions.  For the purposes of this Agreement,  (a) "Affiliate,"
     whether  capitalized or not, means, with respect to a specified person, any
     person which directly or indirectly  controls  (either  individually  or in
     common with another  person),  is controlled by, or is under common control
     with the  specified  person,  for as long as such  relationship  remains in
     effect; and (b) "Person," whether capitalized or not, means any individual,
     sole  proprietorship,  joint venture,  partnership,  corporation,  company,
     firm,  bank,   association,   cooperative,   trust,   estate,   government,
     governmental agency, regulatory authority, or other entity of any nature.

14.18Assumed  Liabilities.  Except as expressly  provided for in this Agreement,
     in no event shall any Party assume or agree to pay or perform, or incur any
     liability or obligation under this Agreement,  or otherwise,  in respect of
     any liability of obligation of the other.

                                       28
<PAGE>

IN WITNESS  WHEREOF,  this  Agreement has been duly executed and delivered as of
the date first above written.

CANDIES, INC.                               STEVEN MADDEN, LTD.

By:  /s/ Neil Cole                           By:  /s/ Jamieson Karson
    ---------------                              ---------------------
     Name:    Neil Cole                           Name: Jamieson Karson
     Title:   Chief Executive Office              Title: Chief Executive Officer

IP HOLDINGS, LLC

By:  /s/ Beth L. Peoples
   ---------------------
     Name:  Beth L. Peoples
     Title:   Secretary

                                       29
<PAGE>

                                    EXHIBIT A

                             Trademark Status Report

<PAGE>

Client:  IP HOLDINGS LLC
<TABLE>
<CAPTION>

                                c/o Candie's Inc.
                         400 Columbus Avenue, 2nd Floor
                            Valhalla, New York 10595

ID   Country              Mark                     Classes      App. #        App. Dt.   Reg. #        Reg. Dt.    Allow Dt.     ITU
<S>  <C>                  <C>                      <C>          <C>           <C>        <C>           <C>         <C>           <C>

366  Argentina            CANDIE'S (STYLIZED)      3            2.166.369     7/30/1998  1.760.011     11/1/1999                 No
367  Argentina            CANDIE'S (STYLIZED)      25           2133774       2/26/1998  1.863.393     3/13/2002                 No
5080 Argentina            CANDIE'S (STYLIZED)      9            2.243.721     9/29/1999  1.832.147     6/4/2001                  No
4971 Aruba                CANDIE'S (STYLIZED)      3            990416.13     4/16/1999  20341         2/8/2000                  No
5081 Australia            CANDIE'S (STYLIZED)      9, 18        806603        9/9/1999   806603        9/9/1999                  No
4581 Bahamas              CANDIE'S (STYLIZED)      3            21588         4/21/1999  21588         11/22/2001                No
369  Bahrain              CANDIE'S (STYLIZED)      3            597/99        4/18/1999  25468         4/18/1999                 No
368  Benelux              CANDIE'S (STYLIZED)      25           627430        11/23/1978 355784        11/23/1978                No
4580 Bermuda              CANDIE'S (STYLIZED)      3            30640         4/23/1999  30,640        7/10/2000                 No
370  Bolivia              CANDIE'S (STYLIZED)      25           06139         5/11/1998                                          No
371  Brazil               CANDIE'S (STYLIZED)      3            820.836.141   8/12/1998  820.836.141   4/3/2001                  No
372  Brazil               CANDIE'S (STYLIZED)      25           820030929     8/22/1997                                          No
5189 Brazil               CANDIE'S (STYLIZED)      9            821.699.547   10/7/1999                                          No
4600 British Virgin
       Islands            CANDIE'S (STYLIZED)      3            3362          5/10/1999  3362          5/10/1999                 No
373  Brunei Darussalam    CANDIE'S (STYLIZED)      25           28885         1/22/1998                                          No
374  Canada               CANDIE'S (STYLIZED)      3            885605        7/24/1998  518,832       10/28/1999                Yes
421  Canada               CANDIE'S (BLOCK)         3, 8, 9, 11, 555917        1/21/1986  364,035       1/5/1990                  No
                                                   14, 20, 21,
                                                   25, 26
5226 Canada               CANDIE'S (STYLIZED)      18,25        1,028,541     9/9/1999                                           No
375  Chile                CANDIE'S (STYLIZED)      3            428849        10/2/1998  536.398       3/15/1999                 No
4595 Chile                CANDIE'S (BLOCK)         25           244.639       6/28/1993  413.992       10/5/1993                 No
376  China (People's
       Republic of)       CANDIE'S (STYLIZED)      25           9800109583    9/25/1998  1746943       4/14/2002                 No
5091 China (People's
       Republic of)       CANDIE'S (STYLIZED)      18           9900114550    9/24/1999  1532896       3/7/2001                  No
424  Colombia             CANDIE'S (BLOCK)         25           97001972      1/17/1997  230515        7/26/2000                 No
425  Czech Republic       CANDIE'S (STYLIZED)      18           00118665      1/20/1997  224,795       1/20/1997                 No
5657 Czech Republic       CANDIE'S (STYLIZED)      3, 9, 14     147605        10/6/1999  230869        2/21/2001                 No
5176 Dominican Republic   CANDIE'S (STYLIZED)      3            P12.08(44337) 10/21/1999 0108902       12/15/1999                No
380  European Union       CANDIE'S (STYLIZED)      3, 14, 18,25 673533        11/12/1997 673533        11/12/1997                No
5097 European Union       CANDIE'S (STYLIZED)      9            1312396       9/17/1999  1312396       9/17/1999                 No
383  Hong Kong            CANDIE'S (STYLIZED)      25           659/98        1/20/1998  2381/2001     1/20/1998                 No
5065 Hong Kong            CANDIE'S (STYLIZED)      3            12458/99      9/10/1999  12970/2000    9/10/1999                 No
5066 Hong Kong            CANDIE'S (STYLIZED)      9            12459/99      9/10/1999  6252/2000     9/10/1999                 No
5845 Hong Kong            CANDIE'S (STYLIZED)      25           1428/81       8/19/1980  1428/81       8/19/1980                 No
5844 Hong Kong            CANDIE'S (BLOCK)         25           1427/81       8/19/1980  1427/81       8/19/1980                 No
426  Hungary              CANDIE'S (BLOCK)         25                         3/17/1981  122912        10/23/1981                No
5061 Hungary              CANDIE'S (STYLIZED)      3            M99 04248     9/10/1999  162 940       12/12/2000                No
385  Indonesia            CANDIE'S (STYLIZED)      25           D97 12511     6/26/1997  414386        4/6/1998                  No
5060 Indonesia            CANDIE'S (STYLIZED)      18           D99 16131     9/13/1999  463177        9/13/1999                 No
386  Israel               CANDIE'S (STYLIZED)      25           118178        2/27/1998  118178        2/27/1998                 No
387  Israel               CANDIE'S (STYLIZED)      3            120941        7/14/1998  120941        7/14/1998                 No
427  Israel               CANDIE'S (BLOCK)         25           52851         9/10/1981  52851         12/30/1984                No
5124 Israel               CANDIE'S (STYLIZED)      18           130733        9/13/1999  130733        9/13/1999                 No
428  Italy                CANDIE'S (BLOCK)         25           MI98C002013   3/3/1998   830250        1/10/2001                 No
442  Italy                CANDIE'S (BLOCK)         25           MI2002C00544  5/28/2002  412,504       3/10/1986                 No
                                                                4
388  Japan                CANDIE'S (STYLIZED)      3            H10-066189    8/15/1998  4564334       4/26/2002                 No
429  Japan                CANDIE'S (BLOCK)         25           61-20983      3/5/1986   2664130       5/31/1994                 No
450  Japan                CANDIE'S WITH KATAKANA   25           62-39206      4/10/1987  2250909       7/30/1990                 No
5125 Japan                CANDIE'S (STYLIZED)      9, 18, 25    11-83482      9/14/1999  4544696       2/22/2002                 No
390  Kuwait               CANDIE'S (STYLIZED)      3            42916         4/18/1999  39260         4/18/1999                 No
431  Kuwait               CANDIE'S (BLOCK)         25           43166         5/19/1999  39780         5/19/1999                 No
391  Lebanon              CANDIE'S (STYLIZED)      3            96-01-0151619 11/9/1998                                          No
393  Macao                CANDIE'S (STYLIZED)      25           003046        1/21/1998  N/003046      7/3/1998                  No
392  Malaysia             CANDIE'S (STYLIZED)      25           96-12835      10/22/1996                                         No
5072 Malaysia             CANDIE'S (STYLIZED)      3            99/08990      9/14/1999  99008990      9/14/1999                 No
5073 Malaysia             CANDIE'S (STYLIZED)      9            99/08989      9/14/1999  99008989      9/14/1999                 No
394  Mexico               CANDIE'S (STYLIZED)      25           322842        2/17/1998  690270        2/17/1998                 No
395  Mexico               CANDIE'S (STYLIZED)      3            343669        8/14/1998  591155        10/27/1998                No
419  Mexico               CANDIE'S (STYLIZED)      25           362602        2/3/1999   690294        2/31/999                  No
4664 Mexico               CANDIE'S (STYLIZED)      9            374233        5/6/1999   690299        5/6/1999                  No
4739 Mexico               CANDIE'S (STYLIZED)      18           375654        5/18/1999                                          No
1563 Netherlands Antilles CANDIE'S (STYLIZED)      3                          4/19/1999  2745          8/13/2001                 No
5056 New Zealand          CANDIE'S (STYLIZED)      9            316007        9/9/1999   316007        9/9/1999                  No
5057 New Zealand          CANDIE'S (STYLIZED)      14           316008        9/9/1999   316008        9/9/1999                  No
5058 New Zealand          CANDIE'S (STYLIZED)      25           316010        9/9/1999   316010        9/9/1999                  No
5059 New Zealand          CANDIE'S (STYLIZED)      18           316009        9/9/1999   316009        9/911999                  No
5291 New Zealand          CANDIE'S (BLOCK)         25           133157        6/27/1980  133157        6/27/1980                 No
396  Norway               CANDIE'S (STYLIZED)      25           9800772       1/27/1998  204519        9/7/2000                  No
5170 Oman                 CANDIE'S (STYLIZED)      3            21266         11/16/1999                                         No
397  Panama               CANDIE'S (STYLIZED)      3            098581        1/28/1999  98,581        1/28/1999                 No
398  Peru                 CANDIE'S (STYLIZED)      25           057202        2/19/1998  73664         6/20/2001                 No
399  Philippines          CANDIE'S (STYLIZED)      3            4-1998-05814  8/4/1998                                           No
400  Philippines          CANDIE'S (STYLIZED)      25           43019         10/30/1980                                         No
432  Philippines          CANDIE'S (BLOCK)         25           43932         2/6/1981                                           No
6400 Philippines          CANDIE'S (STYLIZED)      9            4-2000-05452  7/3/2000                                           No
5117 Poland               CANDIE'S (STYLIZED)      3            Z-207090      9/10/1999                                          No
5121 Qatar                CANDIE'S (STYLIZED)      3            21494         10/10/1999                                         No
452  Russian Federation   CANDIE'S                 25           122194        5/17/1990  93556         1/28/1991                 No
402  Saudi Arabia         CANDIE'S (STYLIZED)      25           44202         6/6/1998   504/28        11/3/1999                 No
403  Saudi Arabia         CANDIE'S (STYLIZED)      3            47366         12/27/1998 546/12        12/27/1998                No
5190 Saudi Arabia         CANDIE'S (STYLIZED)      18           61109         11/22/1999 594/36        11/1/2001                 No
404  Singapore            CANDIE'S (STYLIZED)      25           6353/97       5/30/1997  T97/06353H    5/30/1997                 No
405  Singapore            CANDIE'S (STYLIZED)      3            S/7923/98     8/6/1998                                           No
5090 Singapore            CANDIE'S (STYLIZED)      9            T99/10191G    9/15/1999  T99/10191G    9/15/1999                 No
434  Slovak Republic      CANDIE'S (STYLIZED)      18,25        POZ 0339-1997 1/30/1997  186734        8/13/1999                 No
401  South Africa         CANDIE'S (STYLIZED)      25                         10/3/1980  80/6494       10/3/1980                 No
389  South Korea          CANDIE'S (STYLIZED)      25           84-14399      9/21/1984  125267        4/22/1986                 No
5094 South Korea          CANDIE`S (STYLIZED)      18           40-1999-35583 9/21/1999  487195        2/7/2001                  No
406  Spain                CANDIE'S (STYLIZED)      25           2.057.367/7   11/12/1996 2.057.367     11/12/1996                No
407  Sweden               CANDIE'S (STYLIZED)      25           97-06186      7/1/1997   341 330       10/20/2000                No
408  Switzerland          CANDIE'S (STYLIZED)      25           00297/1998    1/16/1998  452.201       1/16/1998                 No
377  Taiwan               CANDIE'S (STYLIZED)      25                                    145325        12/15/1980                No
378  Taiwan               CANDIE'S (STYLIZED)      25                                    146223        1/1/1981                  No
422  Taiwan               CANDIE'S (BLOCK)         25                                    145324        12/16/1980                No
423  Taiwan               CANDIE'S (BLOCK)         25                                    146222        1/1/1981                  No
409  Thailand             CANDIE'S (STYLIZED)      25           345313        10/2/1997                                          No
5254 Turkey               CANDIE'S (STYLIZED)      3, 9, 25     99/17216      10/20/1999 99/017216     10/20/1999                No
410  United Arab Emirates CANDIE'S (STYLIZED)      3            30602         3/31/1999  23551         2/5/2000                  No
5145 United Arab Emirates CANDIE'S (STYLIZED)      25           33464         10/25/1999 24545         10/25/1999                No
435  United Kingdom       CANDIE'S (BLOCK)         25           2103900       6/28/1996  2103900       6/28/1996                 No
5512 United Kingdom       CANDIE'S (STYLIZED)      18           2226952       3/23/2000  2226952       3/23/2000                 No
5998 United Kingdom       CRAYONS                  25           1112830       4/18/1979  1112830       4/18/1979                 No
414  United States        CANDIE'S (STYLIZED)      25           73213391      4/27/1979  1206758       8/31/1982                 No
415  United States        CANDIE'S (STYLIZED)      3            73335241      11/2/1981  1255032       10/25/1983                No
416  United States        CANDIE'S (STYLIZED)      9            73335244      11/2/1981  1217393       11/23/1982                No
420  United States        CANDIE'S (STYLIZED)      25           73335242      11/2/1981  1240430       5/31/1983                 No
436  United Stales        CANDIE'S (BLOCK)         25           73155005      1/11/1978  1157373       6/9/1981                  No
437  United States        CANDIE'S (STYLIZED)      18,25        73206403      3/7/1979   1154885       5/19/1981                 No
438  United States        CANDIE'S (BLOCK)         16           73312796      6/1/1981   1197875       6/15/1982                 No
440  United States        CANDIE'S (BLOCK)         7, 9, 11, 20 73554188      8/19/1985  1429009       2/17/1987                 No
443  United States        CANDIE'S (BLOCK)         25           73306783      4/21/1981  1199658       6/29/1982                 No
444  United States        CANDIE'S (BLOCK)         18           73541329      6/4/1985   1378107       1/14/1986                 No
445  United States        CANDIE'S (BLOCK)         25           73423155      4/25/1983  1291227       8/21/1994                 No
6308 United.States        CANDIE'S DREAMS          25           76270565      6/13/2001                            8/13/2002     Yes
6430 United States        CANDIE'S (STYLIZED)      9, 21        76289740      7/24/2001                                          Yes
6609 United States        CANDIE'S STREET & DESIGN 25           76301264      8/16/2001  2652693       11/19/2002  2/5/2002      Yes
411  Uruguay              CANDIE'S (STYLIZED)      2, 3, 6, 7,  167453        7/9/1979   236750        4/17/1980                 No
                                                   8, 16, 17,
                                                   18, 20, 21,
                                                   22, 23, 24,
                                                   25, 26
417  Venezuela            CANDIE'S (STYLIZED)      3            98-014717     8/6/1998                                           No
441  Venezuela            CANDIE'S (BLOCK)         25           12103-97      6/11/1997                                          No
5183 Vietnam.             CANDIE'S (STYLIZED)      3, 18, 25    N993613       11/23/1999 36292         11/23/1999                No

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

<PAGE>

                                    EXHIBIT B

                         Minimum Net Sales and Royalties

Year Minimum Net Sales*                 Minimum  Royalties**

1                 --                                          --
2                 ++                                          ++
3                 ++                                          ++
4                 ++                                          ++
5                 ++                                          ++
6                 ++                                          ++

*/ Is subject to the Minimum Net Sales relief provisions set forth in Section
5.1(b).

**
Includes Percentage and Advertising Royalties (subject to the provisions of
Section 7) but not The Candie's Foundation contribution.

<PAGE>

                                    EXHIBIT C

                                     Backlog

<PAGE>

<TABLE>
<CAPTION>

                                  Candie's Inc.
             Candie's Total-All Years-Open Orders Excl (Past Cancel)
                         Gross Landed Sales By Customer
                   (Candie's Women & Kids, Bong Women & Kids)

Total Customers                  Revenue           Cost             Gross Profit      GP%             Units
---------------                  -------           ----             ------------      ---             -----
<S>                             <C>                <C>              <C>               <C>             <C>

                                 ++                ++               ++                ++              ++
Third Party Customers            ++                ++               ++                ++              ++
++                               ++                ++               ++                ++              ++

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                  Candie's Inc.
             Candie's Kids-All Years-Open Orders Excl (Past Cancel)
                         Gross Landed Sales By Customer
                   (Candie's Women & Kids, Bong Women & Kids)

Total Customers                  Revenue           Cost             Gross Profit      GP%             Units
---------------                  -------           ----             ------------      ---             -----
<S>                             <C>                <C>              <C>               <C>             <C>
                                 ++                ++               ++                ++              ++
Third Party Customers            ++                ++               ++                ++              ++
++                               ++                ++               ++                ++              ++

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                               Candie's First Cost
                                Sales By Division
                            Candie's Women-All Agents
                                    All Years

Open All Fall         Sell                                Gross            Billable
Candies Women   Pairs Price Factory Cost Sales $  Cost $  Profit Royalty $ Commission Agent Commission  FC Revenue  Net Earned
-------------   ----- ----- ------------ -------  ------  ------ --------- ---------- ----------------  ----------  ----------
<S>             <C>   <C>   <C>          <C>      <C>     <C>    <C>       <C>        <C>               <C>         <C>
++              ++    ++    ++           ++       ++      ++     ++        ++         ++                ++          ++
Total Customers ++    ++    ++           ++       ++      ++     ++        ++         ++                ++          ++

</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                               Candie's First Cost
                                Sales By Division
                            Kids Candie's -All Agents
                                    All Years

Open All Fall         Sell                                Gross            Billable
Kids Women      Pairs Price Factory Cost Sales $  Cost $  Profit Royalty $ Commission Agent Commission  FC Revenue  Net Earned
----------      ----- ----- ------------ -------  ------  ------ --------- ---------- ----------------  ----------  ----------
<S>             <C>   <C>   <C>          <C>      <C>     <C>    <C>       <C>        <C>               <C>         <C>
++              ++    ++    ++           ++       ++      ++     ++        ++         ++                ++          ++
Total Customers ++    ++    ++           ++       ++      ++     ++        ++         ++                ++          ++

</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]