Document:

Exhibit 10.2

	
 

	
 

	
 

	
 

	
March 27,
  2008

	
 

Walter
Yetnikoff

East 90th Street

New York, NY 10128

                         Re:    Letter Agreement

Dear Walter:

          This
letter is to confirm that by resolution of the Board of Directors, dated March
24th, 2008, you have been appointed non-executive Chairman of the
Board of Directors of Steven Madden, Ltd., effective as of March 24, 2008 and
for a term ending March 31, 2009.

          Your
compensation for such service shall be $180,000.00 per annum, payable quarterly
in arrears.  In addition, you shall
receive 20,000 stock options as provided for in the Stock Option Agreement
enclosed herewith.

          You
shall be expected to devote as much time as is necessary to the performance of
your duties as Chairman.  The Company
shall reimburse you for any reasonable expenses associated with the performance
of your duties.  

          Your
signature on the bottom of this letter indicates your acceptance of this
position and these terms.  I look
forward to continuing to work with you.
Thank you very much.

	
 

	
 

	
 

	
 

	
 

	
 

	
Very truly
  yours,

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
/s/ EDWARD R. ROSENFELD

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Edward R.
  Rosenfeld

	
 

	
 

	
 

	
Interim
  Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
/s/ WALTER YETNIKOFF

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Walter
  YetnikoffExhibit
4.1

Form
of Warrant

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS
MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR THE COMPANY RECEIVES AN
OPINION OF COUNSEL FOR THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT
OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SUCH ACT.

	
 

	
 

	
 

	
Warrant No. _____

	
 

	
Number of Shares: _______ 

	
 

	
 

	
(subject to adjustment)

	
 

	
 

	
 

	
Date of Issuance: April __, 2008

	
 

	
 

VELOCITY
ASSET MANAGEMENT, INC.

Common
Stock Warrant

          Velocity
Asset Management, Inc. (the “Company”), for value received, hereby
certifies that __________ or its registered assigns (the “Registered Holder”),
is entitled, subject to the terms set forth below, to purchase from the
Company, at any time after the date hereof and on or before the Expiration Date
(as defined in Section 6 below), up to _______ shares (as adjusted from time to
time pursuant to the provisions of this Warrant) of common stock of the
Company, $.001 par value per share, at a per share Exercise Price equal to $_____
(subject to adjustment for stock splits, dividends and the like and as set
forth in Section 3 hereof). The shares purchasable upon exercise of this
Warrant and the exercise price per share, as adjusted from time to time
pursuant to the provisions of this Warrant, are hereinafter referred to as the
“Warrant Stock” and the “Exercise Price,” respectively.

          This
Warrant is issued pursuant to that certain Subscription Agreement dated
approximately concurrently herewith among the Company and the Registered Holder
(the “Subscription Agreement”). Any capitalized terms used herein, but
not defined herein, shall carry those definitions ascribed to them in the
Subscription Agreement.

          1.     Fully
Vested Shares. The shares of Warrant Stock are fully vested and exercisable
as of April __, 2008.

          2.     Exercise.

                    (a)     Method
of Exercise. 

                              (i)     This
Warrant may be exercised by the Registered Holder, in whole or in part, by
surrendering this Warrant, with the purchase/exercise form appended hereto as Exhibit A
duly executed by such Registered Holder or by such Registered Holder’s duly
authorized attorney, at the principal office of the Company, or at such other
office or agency as the Company may designate in writing prior to the date of
such exercise, accompanied by payment in full of the Exercise Price payable in
respect of the number of shares of Warrant Stock purchased upon such exercise.
The Exercise Price may be paid by cash, check, wire transfer or by the
surrender of promissory notes or other instruments representing indebtedness of
the Company to the Registered Holder.      

                              (ii)     In
lieu of exercising this Warrant in the manner provided above in
Section 2(a)(i), the Registered Holder may elect to receive shares
pursuant to a cashless exercise, equal to the value of this Warrant (or the
portion thereof being exercised) by surrender of this Warrant at the principal
office of the Company together with notice of such election on the
purchase/exercise form appended hereto as Exhibit A duly executed by
such Registered Holder or such Registered Holder’s duly authorized attorney, in
which event the Company shall issue to holder a number of shares of Common
Stock computed using the following formula:

X = Y (A - B)

        A

	
 

	
 

	
Where

	
X = The number of shares of Common Stock to be
  issued to the Registered Holder.

	
 

	
 

	
Y = The number of shares of Common Stock being
  exercised under this Warrant.

	
 

	
 

	
A = The fair market value of one share of Common
  Stock (on the exercise date as calculated below)

	
 

	
 

	
B = The Exercise Price (as adjusted to the exercise
  date).

For purposes of this Section 2(a)(ii), the fair
market value of one share of Common Stock on the exercise date shall mean:

                   
                (A)     if
the Company’s Common Stock is traded on a national securities exchange, the
fair market value shall be deemed to be the average of the closing sale prices
over a five trading day period ending on the date of calculation; or

                   
                (B)     if
the Company’s Common Stock is actively traded over-the-counter, the fair market
value shall be deemed to be the average of the closing bid or sales price
(whichever is applicable) over the thirty (30) day period ending three days
before the date of calculation; or

                   
                (C)     if
neither (A) nor (B) is applicable, the fair market value shall be at the
highest price per share which the Company could obtain on the date of
calculation from a willing buyer (not a current employee or director) for
shares of Common Stock sold by the Company, from authorized but unissued
shares, as determined in good faith by the Board of Directors.

-2-

                    (b)     Effective
Time of Exercise. Each exercise of this Warrant shall be deemed to have
been effected immediately prior to the close of business on the day on which
this Warrant shall have been surrendered to the Company as provided in Section
2(a) above. At such time, the person or persons in whose name or names any
certificates for Warrant Stock shall be issuable upon such exercise as provided
in Section 2(c) below shall be deemed to have become the holder or holders of
record of the Warrant Stock represented by such certificates.

                    (c)     Delivery
to Holder. As soon as practicable after the exercise of this Warrant in
whole or in part, and in any event within 10 business days thereafter, the
Company at its expense will cause to be issued in the name of, and delivered
to, the Registered Holder, or as such Registered Holder (upon payment by such
Registered Holder of any applicable transfer taxes) may direct:

                
              (i)     a
certificate or certificates for the number of shares of Warrant Stock to which
such Registered Holder shall be entitled, and 

                 
             (ii)     in
case such exercise is in part only, a new warrant or warrants (dated the date
hereof) of like tenor, calling in the aggregate on the face or faces thereof
for the number of shares of Warrant Stock equal (giving effect to any
adjustment therein) to the number of such shares called for on the face of this
Warrant minus the number of such shares purchased by the Registered Holder upon
such exercise as provided in Section 2(a) above.

          3.     Adjustments.

                    (a)     Stock
Splits and Dividends. If the outstanding shares of the Company’s Common
Stock shall be subdivided into a greater number of shares or a dividend in
Common Stock shall be paid in respect of Common Stock, the Exercise Price in
effect immediately prior to such subdivision or at the record date of such
dividend shall simultaneously with the effectiveness of such subdivision or
immediately after the record date of such dividend be proportionately reduced.
If outstanding shares of Common Stock shall be combined into a smaller number
of shares, the Exercise Price in effect immediately prior to such combination
shall, simultaneously with the effectiveness of such combination, be
proportionately increased. When any adjustment is required to be made in the
Exercise Price, the number of shares of Warrant Stock purchasable upon the
exercise of this Warrant shall be changed to the number determined by dividing
(i) an amount equal to the number of shares issuable upon the exercise of
this Warrant immediately prior to such adjustment, multiplied by the Exercise
Price in effect immediately prior to such adjustment, by (ii) the Exercise
Price in effect immediately after such adjustment.

-3-

                    (b)     Merger
Sale, Reclassification, Etc.
In case of any (i) consolidation or merger (including a merger in
which the Company is the surviving entity), (ii) sale or other disposition of
all or substantially all of the Company’s assets or distribution of property to
shareholders (other than distributions payable out of earnings or retained
earnings), or reclassification, change or conversion of the outstanding
securities of the Company or of any reorganization of the Company (or any other
corporation the stock or securities of which are at the time receivable upon
the exercise of this Warrant) or any similar corporate reorganization on or
after the date hereof, then and in each such case the holder of this Warrant,
upon the exercise hereof at any time thereafter shall be entitled to receive,
in lieu of the stock or other securities and property receivable upon the
exercise hereof prior to such consolidation, merger, sale or other disposition,
reclassification, change, conversion or reorganization, the stock or other
securities or property to which such holder would have been entitled upon such
consummation if such holder had exercised this Warrant immediately prior
thereto, all subject to further adjustment as provided in Section 3(a) or 3(b);
and in each such case, the terms of this Section 3 shall be applicable to
the shares of stock or other securities properly receivable upon the exercise
of this Warrant after such consolidation, merger, sale or other disposition,
reclassification, change, conversion or reorganization.

                    (c)     Adjustment
Certificate.  When any
adjustment is required to be made in the Warrant Stock or the Exercise Price
pursuant to this Section 3, the Company shall promptly mail to the Registered
Holder a certificate setting forth (i) a brief statement of the facts
requiring such adjustment, (ii) the Exercise Price after such adjustment
and (iii) the kind and amount of stock or other securities or property
into which this Warrant shall be exercisable after such adjustment.

          4.     Transfers.

                    (a)     Unregistered
Security.  Each holder of
this Warrant acknowledges that this Warrant and the Warrant Stock have not been
registered under the Securities Act of 1933, as amended (the “Securities Act”),
and agrees not to sell, pledge, distribute, offer for sale, transfer or
otherwise dispose of this Warrant or any Warrant Stock issued upon its exercise
in the absence of (i) an effective registration statement under the
Securities Act as to this Warrant or such Warrant Stock and registration or
qualification of this Warrant or such Warrant Stock under any applicable U.S.
federal or state securities law then in effect or (ii) an opinion of
counsel, reasonably satisfactory to the Company, that such registration and
qualification are not required.  Each
certificate or other instrument for Warrant Stock issued upon the exercise of
this Warrant shall bear a legend substantially to the foregoing effect.

                    (b)     Transferability.
 Subject to the provisions of Section 4(a)
hereof, this Warrant and all rights hereunder are transferable, in whole or in
part, to (i) any entity controlling, controlled by or under common control of
the Registered Holder, or (ii) to any other proposed transferee by surrendering
the Warrant with a properly executed assignment (in the form of Exhibit B
hereto) at the principal office of the Company.

                    (c)     Warrant
Register.  The Company
will maintain a register containing the names and addresses of the Registered
Holders of this Warrant.  Until any
transfer of this Warrant is made in the warrant register, the Company may treat
the Registered Holder of this Warrant as the absolute owner hereof for all
purposes; provided, however, that if this Warrant is properly
assigned in blank, the Company may (but shall not be required to) treat the
bearer hereof as the absolute owner hereof for all purposes, notwithstanding
any notice to the contrary.  Any
Registered Holder may change such Registered Holder’s address as shown on the
warrant register by written notice to the Company requesting such change.

-4-

          5.     No
Impairment.  The Company
will not, by amendment of its certificate of incorporation or through
reorganization, consolidation, merger, dissolution, sale of assets or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will (subject to Section 14 below) at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such action as may be necessary or appropriate in order to
protect the rights of the holder of this Warrant against impairment.

          6.     Termination.  This
Warrant (and the right to purchase
securities upon exercise hereof) shall terminate on April __, 2010 (the “Expiration
Date”).

          7.     Notices
of Certain Transactions.
In case:

                    (a)     the
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time deliverable upon the exercise of this Warrant) for
the purpose of entitling or enabling them to receive any dividend or other
distribution, or to receive any right to subscribe for or purchase any shares
of stock of any class or any other securities, or to receive any other right,
to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right, or

                    (b)     of
any capital reorganization of the Company, any reclassification of the capital
stock of the Company, any consolidation or merger of the Company, any
consolidation or merger of the Company with or into another corporation (other
than a consolidation or merger in which the Company is the surviving entity),
or any transfer of all or substantially all of the assets of the Company, or 

                    (c)     of
the voluntary or involuntary dissolution, liquidation or winding-up of the
Company,

then, and in each such case, the Company will mail or
cause to be mailed to the Registered Holder of this Warrant a notice
specifying, as the case may be, (i) the date on which a record is to be taken
for the purpose of such dividend, distribution or right, and stating the amount
and character of such dividend, distribution or right, or (ii) the effective
date on which such reorganization, reclassification, consolidation, merger,
transfer, dissolution, liquidation or winding-up is to take place, and the
time, if any is to be fixed, as of which the holders of record of Common Stock
(or such other stock or securities at the time deliverable upon such
reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding-up) are to be determined.

          8.     Reservation
of Stock.  The Company
will at all times have authorized, reserve and keep available, solely for the
issuance and delivery upon the exercise of this Warrant, such shares of Warrant
Stock and other stock, securities and property, as from time to time shall be
issuable upon the exercise of this Warrant.

          9.     Exchange
of Warrants.  Upon the
surrender by the Registered Holder of any Warrant or Warrants, properly
endorsed, to the Company at the principal office of the Company, the Company
will, subject to the provisions of Section 4 hereof, issue and deliver to or upon
the order of such Holder, at the Company’s expense, a new Warrant or Warrants
of like tenor, in the name of such Registered Holder or as such Registered
Holder (upon payment by such Registered Holder of any applicable transfer
taxes) may direct, calling in the aggregate on the face or faces thereof for
the number of shares of Common Stock called for on the face or faces of the
Warrant or Warrants so surrendered.

-5-

          10.     Replacement
of Warrants.  Upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and (in the case of loss, theft or
destruction) upon delivery of an indemnity agreement (with surety if reasonably
required) in an amount reasonably satisfactory to the Company, or (in the case
of mutilation) upon surrender and cancellation of this Warrant, the Company
will issue, in lieu thereof, a new Warrant of like tenor.

          11.     Notices.
Any notice required or permitted by this
Warrant shall be in writing and shall be deemed duly given upon receipt, when
delivered personally or by courier, overnight delivery service or confirmed
facsimile, or 48 hours after being deposited in the regular mail as certified
or registered mail (airmail if sent internationally) with postage prepaid,
addressed (a) if to the Registered Holder, to the address of the Registered
Holder most recently furnished in writing to the Company and (b) if to the
Company, to the address set forth on the signature page of this Warrant or as
subsequently modified by written notice to the Registered Holder.

          12.     No
Rights as Stockholder.
Until the exercise of this Warrant, the Registered Holder of this
Warrant shall not have or exercise any rights by virtue hereof as a stockholder
of the Company.

          13.     No
Fractional Shares.  No
fractional shares of Common Stock will be issued in connection with any
exercise hereunder.  In lieu of any
fractional shares which would otherwise be issuable, the Company shall pay cash
equal to the product of such fraction multiplied by the fair market value of
one share of Common Stock on the date of exercise, in accordance with Section
2(2)(ii).

          14.     Amendment
or Waiver.  Any term of
this Warrant may be amended or waived upon written consent of the Company and
the registered holders of at least 50% of the Common Stock issuable upon
exercise of the outstanding warrants purchased pursuant to the Purchase
Agreement.  By acceptance hereof, the
Registered Holder acknowledges that in the event the required consent is
obtained, any term of this Warrant may be amended or waived with or without the
consent of the Registered Holder; provided, however, that any
amendment hereof that would materially adversely affect the Registered Holder
in a manner different from the holders of the remaining warrants issued
pursuant to the Purchase Agreement shall also require the consent of Registered
Holder.

          15.     Headings.
The headings in this Warrant are for
purposes of reference only and shall not limit or otherwise affect the meaning
of any provision of this Warrant.

          16.     Governing
Law.  This Warrant and
all acts and transactions pursuant hereto and the rights and obligations of the
parties hereto shall be governed, construed and interpreted in accordance with
the laws of the State of New York, without giving effect to principles of
conflicts of law.

-6-

          17.     Representations and Covenants of the Holder.
This Warrant has been entered into by
the Company in reliance upon the following representations and covenants of the
Registered Holder:

                     (a)
     Investment
Purpose. The Registered Holder is acquiring the Warrant and the
Common Stock issuable upon exercise of the Warrant for its own account, not as
a nominee or agent and with no present intention of selling or otherwise
distributing any part thereof. 

                     (b)     Private Issue. The Registered Holder
understands, except as provided in the Registration Rights Agreement, (i) that neither the Warrant nor the Common
Stock issuable upon exercise of this Warrant is, nor will be, registered under
the Securities Act or qualified under applicable state securities laws on the
ground that the issuance contemplated by this Warrant will be exempt from the
registration and qualifications requirements thereof pursuant to Section 4(2)
of the Securities Act and any applicable state securities laws, and (ii) that
the Company’s reliance on such exemption is predicated on the representations
set forth in this Section 17.

                
     (c)     Disposition of Holder’s Rights. In no
event will the Registered Holder make a disposition of the Warrant or the
Common Stock issuable upon exercise of the Warrant in the absence of
(i) an effective registration statement under the Securities Act as to
this Warrant or such Warrant Stock and registration or qualification of this
Warrant or such Warrant Stock under any applicable U.S. federal or state
securities law then in effect or (ii) an opinion of counsel, reasonably
satisfactory to the Company, that such registration and qualification are not
required. Notwithstanding the foregoing,
the restrictions imposed upon the transferability of any of its rights to
acquire Common Stock or Common Stock issuable on the exercise of such rights do
not apply to transfers from the beneficial owner of any of the aforementioned
securities to its nominee or from such nominee to its beneficial owner, and
shall terminate as to any particular share of Common Stock when (1) such
security shall have been effectively registered under the Securities Act and
sold by the holder thereof in accordance with such registration or (2) such
security shall have been sold without registration in compliance with Rule 144
under the Securities Act, or (3) a letter shall have been issued to the
Registered Holder at its request by the staff of the Securities and Exchange
Commission (the “SEC”) or a ruling shall have been issued to the
Registered Holder at its request by the SEC stating that no action shall be
recommended by such staff or taken by SEC, as the case may be, if such security
is transferred without registration under the Securities Act in accordance with
the conditions set forth in such letter or ruling and such letter or ruling
specifies that no subsequent restrictions on transfer are required. Whenever
the restrictions imposed hereunder shall terminate, as hereinabove provided,
the Registered Holder or holder of a share of Common Stock then outstanding as
to which such restrictions have terminated shall be entitled to receive from
the Company, without expense to such holder, one or more new certificates for
the Warrant or for such shares of Common Stock not bearing any restrictive
legend.

                     (d)     Financial Risk. The Registered Holder
has such business and financial experience as is required to give it the capacity to protect its own
interests in connection with its
investment.

-7-

                     (e)     Accredited Investor. The Registered
Holder is an “accredited investor” as defined by Rule 501 of Regulation D under the Securities Act, as presently in
effect.

          18.     Representations and Warranties of the Company.
This Warrant has been entered into by
the Registered Holder in reliance upon the following representations and
covenants of the Company:

                     (a)     Authorization. The Warrant has been
duly executed and delivered by the Company and constitutes a legal, valid and
binding obligation of the Company enforceable in accordance with its terms,
subject to laws of general application relating to bankruptcy, insolvency and
the relief of debtors and rules of law governing specific performance,
injunctive relief or other equitable remedies.

                     (b)     Valid Issuance. The Warrant Stock is
duly authorized and reserved for issuance, and when issued, sold and delivered
in accordance with the terms of this Warrant will be duly and validly issued,
fully paid and nonassessable.

                     (c)     No Conflict. The execution and delivery
of this Warrant do not, and the consummation of the transactions contemplated
hereby will not, conflict with, or result in any violation of, breach or
default (with or without notice or lapse of time, or both), or give rise to a
right of termination, cancellation or acceleration of any obligation or to a
loss of a material benefit, under, any provision of the Certificate of Incorporation
or Bylaws of the Company or any material agreement attached as an exhibit to
the Company’s SEC Documents (as defined in the Purchase Agreement), or any
judgment, order, decree, statute, law, ordinance, rule, listing requirement or
regulation applicable to the Company, its properties or assets, which conflict,
violation, default or right would have a material adverse effect on the
business, properties, prospects, financial condition or operations of the
Company.

          19.     Counterparts. This Warrant may be
executed in counterparts, and each such counterpart shall be deemed an original
for all purposes.

[Signature
Pages Follow]

-8-

          IN
WITNESS WHEREOF, the parties have executed this Common Stock Warrant as of the
date first above written.

	
 

	
 

	
 

	
 

	
VELOCITY ASSET MANAGEMENT, INC.

	
 

	
 

	
 

	
By   ___________________________________

	
 

	
 

	
 

	
 

	
Name:   ________________________________

	
 

	
 

	
               (print)

	
 

	
Title:   _________________________________

	
 

	
 

	
 

	
 

	
Address: 

	
Velocity Asset Management Inc.

  1800 Route 34 North

  Building 4, Suite 404A

  Wall, NJ 07719

  Attention: Chief Financial Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Fax Number: 

	
  (732) 556-2365

-9-

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