Document:

kl05058_ex10-2.htm

    
      

    

     

    Exhibit
      10.2

     

     

     

     

     

    
 

     

    

     

    

     

    

     

    

     

    EARN-OUT
      AGREEMENT

     

    by
      and
      among

     

    STEVEN
      MADDEN, LTD.

    

    and

    

     

    The
      Members

    

     

    of

    

     

    COMPO
      ENHANCEMENTS, LLC

    

     

    Dated
      as
      of May 16, 2007

     

     

     

     

    
 

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    EARN-OUT
      AGREEMENT

     

    This
      EARN-OUT AGREEMENT (this “Agreement”), dated as of May 16, 2007 and effective as
      of the Closing Date (as defined below), if one occurs, is by and among Steven
      Madden, Ltd., a Delaware corporation (“Madden”) and the individuals and/or
      entities set forth on the signature pages hereto (each a “Seller” and
      collectively, “Sellers”).

     

    RECITALS

     

    WHEREAS,
      concurrently herewith, Sellers and Madden are entering into that certain
      Membership Interest Purchase Agreement, dated as of the date hereof (as amended
      from time to time in accordance with its terms, the “Membership Interest
      Purchase Agreement”), pursuant to which Madden shall purchase all of the issued
      and outstanding ownership interests of the Compo Enhancements, LLC from Sellers;
      and

     

    WHEREAS,
      pursuant to Section 2.2(a) of the Membership Interest Purchase Agreement,
      Sellers shall be entitled to receive certain earn-out purchase price payments,
      subject to the terms and conditions of this Agreement;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants and
      agreements hereinafter set forth, the parties hereto, intending to be legally
      bound, hereby agree as follows:

     

    1.  Definitions.  As
      used in this Agreement, the following terms shall have the meanings
      indicated:

     

    “Act”
      shall mean the Securities Act of 1933, as amended.

     

    “Affiliate”
      with respect to any Person shall mean any other Person which, directly or
      indirectly, is in control of, is controlled by or is under common control with
      such specified Person.  For the purposes of this definition,
“control,” when used with respect to any Person, means the power to direct the
      management and policies of such Person, directly or indirectly, whether through
      the ownership of voting securities, by contract or otherwise.  In the
      case of any Person who is an individual, such Person’s Affiliates shall include
      such Person’s spouse, siblings, parents, children, grandchildren, and trusts for
      the benefit of any of the foregoing.

     

    “Agreement”
      shall have the meaning set forth in the preamble.

     

    “Applicable
      Contingent Purchase Price Payment Date” shall have the meaning set forth in
      Section 4(a) hereof.

     

    “Business
      Day” means any day that is not a Saturday or Sunday or a legal holiday on which
      banks are authorized or required by law to be closed in New York, New
      York.

     

    “CIC
      Acquirer” shall have the meaning set forth in Section 5.

     

    “CIC
      Trigger Event” shall have the meaning set forth in Section 5.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    “Closing
      Date” shall have the meaning set forth in the Membership Interest Purchase
      Agreement.

     

    “Contingent
      Purchase Price Payment” shall mean each of the Tranche 1 Contingent Purchase
      Price Payment and the Tranche 2 Contingent Purchase Price Payment.

     

    “Contingent
      Purchase Price Statement” shall have the meaning set forth in Section 3(a)
      hereof.

     

    “Diluted
      EPS” shall have the meaning ascribed to it under GAAP.

     

    “Diluted
      EPS Goals” shall mean each of the Tranche 1 Diluted EPS Goal and
      the  Tranche 2 Diluted EPS Goal.

     

    “Dispute
      Notice” shall have the meaning set forth in Section 3(b)
      hereof.

     

    “Earn-Out
      Year(s)” shall mean each of fiscal year 2008, fiscal year 2009, fiscal year
      2010, fiscal year 2011 and fiscal year 2012, which shall end on December 31,
      2008, 2009, 2010, 2011 and 2012, respectively.

     

     “EBIT”
      shall mean with respect to Madden or the Madden Unit (as appropriate), such
      entity’s earnings before interest and taxes as determined in accordance with
      GAAP.

     

    “EBIT
      Goal” shall mean each of the Tranche 1 EBIT Goal and the Tranche 2 EBIT
      Goal.

     

    “Employment
      Agreement” shall mean the employment agreement, dated as of the date hereof,
      between Madden and Jeff Silverman, executed and delivered simultaneously with
      the execution and delivery of the Membership Interest Purchase
      Agreement.

     

    “Final
      Contingent Purchase Price Statement” shall have the meaning set forth in Section
      3(c) hereof.

     

    “Financial
      Statements” means for any fiscal year, the publicly filed financial statements
      of Madden for such fiscal year, which shall be prepared in accordance with
      GAAP.

     

    “GAAP”
      shall mean United States generally accepted accounting principles consistently
      applied.

     

    “Independent
      Accounting Firm” shall have the meaning set forth in Section 3(b)
      hereof.

     

    “Person”
      shall mean an individual, partnership, venture, unincorporated association,
      organization, syndicate, corporation, limited liability company, or other
      entity, trust, trustee, executor, administrator or other legal or personal
      representative or any government or any agency or political subdivision
      thereof.

     

    “Madden”
      shall have the meaning set forth in the preamble.

     

     

     

    
      
        
        

      

      
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    “Madden
      Common Stock” shall mean shares of the common stock of Madden, par value $0.0001
      per share.

     

    “Madden
      Unit” shall have the meaning set forth in Section 5(a).

     

    “Membership
      Interest Purchase Agreement” shall have the meaning set forth in the
      recitals.

     

    “Registration
      Statement” shall have the meaning set forth in Section 4(b) hereof.

     

     “Revised
      Contingent Purchase Price Statement” shall have the meaning set forth in Section
      3(b) hereof.

     

    “Restricted
      Stock” shall have the meaning set forth in Section 4(b) hereof.

     

    “SEC”
      shall mean the United States Securities and Exchange Commission.

     

    “Seller”
      and “Sellers” shall have the meanings set forth in the preamble.

     

    “Sellers
      Representative” shall mean Jeff Silverman, or any other Sellers(s) designated as
      Sellers Representative(s) pursuant to the terms of the Membership Interest
      Purchase Agreement.

     

    “Tranche
      1 Contingent Purchase Price Payment” shall have the meaning set forth in Section
      2(a) hereof.

     

    “Tranche
      1 Diluted EPS Goal” shall have the meaning set forth in Section 2(a)(ii)
      hereof.

     

    “Tranche
      1 EBIT Goal” shall have the meaning set forth in Section 2(a)(i)
      hereof.

     

    “Tranche
      2 Contingent Purchase Price Payment” shall have the meaning set forth in Section
      2(b) hereof.

     

    “Tranche
      2 Diluted EPS Goal” shall have the meaning set forth in Section 2(b)(ii)
      hereof.

     

    “Tranche
      2 EBIT Goal” shall have the meaning set forth in Section 2(b)(ii)
      hereof.

     

    2.  Contingent
      Purchase Price Calculation.

     

    (a)  Tranche
      1 Contingent Purchase Price Payment. Where Madden achieves (or exceeds), in
      two consecutive Earn-Out Years, the Tranche 1 EBIT Goal for each such year
      and
      the Tranche 1 Diluted EPS Goal for each such year, then the aggregate amount
      of
      the contingent purchase price payment payable to Sellers (the “Tranche 1
      Contingent Purchase Price Payment”) shall be 168,000 shares of Madden Common
      Stock or the cash equivalent thereof (as

     

     

     

    
      
        
        

      

      
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    calculated
      pursuant to Section 4(a)).  For the avoidance of doubt, Sellers shall
      only be eligible to earn the Tranche 1 Contingent Purchase Price Payment
      once.

     

     

    (i)  “Tranche
      1 EBIT Goal” shall mean for each listed Earn-Out Year, the corresponding EBIT of
      Madden:

     

    
      	Earn-Out
              Year 	Diluted
              EPS 
	
              2008

            	
              $94,600,000

            
	
              2009

            	
              $113,500,000

            
	
              2010

            	
              $136,200,000

            
	
              2011

            	
              $163,400,000

            
	
              2012

            	
              $196,100,000

            

    

    

     

    (ii)  “Tranche
      1 Diluted EPS Goal” shall mean for each listed Earn-Out Year, the corresponding
      Diluted EPS of Madden:

     

    
      	Earn-Out
              Year 	Diluted
              EPS 
	
              2008

            	
              $2.52

            
	
              2009

            	
              $3.02

            
	
              2010

            	
              $3.63

            
	
              2011

            	
              $4.35

            
	
              2012

            	
              $5.23

            

    

    

    

    (b)  Tranche
      2 Contingent Purchase Price Payment.  Where Madden achieves (or
      exceeds), in two consecutive Earn-Out Years, the Tranche 2 EBIT Goal for each
      such year and the Tranche 2 Diluted EPS Goal for each such year, then the
      aggregate amount of the contingent purchase price payment payable to Sellers
      (the “Tranche 2 Contingent Purchase Price Payment”) shall be 168,000 shares of
      Madden Common Stock or the cash equivalent thereof (as calculated pursuant
      to
      Section 4(a)).  For the avoidance of doubt, Sellers shall only be
      eligible to earn the Tranche 2 Contingent Purchase Price Payment
      once.

     

     

    (i)  “Tranche
      2 EBIT Goal” shall mean for each listed Earn-Out Year, the corresponding EBIT of
      Madden:

     

    
      	Earn-Out
              Year 	Diluted
              EPS 
	
              2008

            	
              $102,400,000

            
	
              2009

            	
              $133,200,000

            
	
              2010

            	
              $173,200,000

            
	
              2011

            	
              $225,100,000

            
	
              2012

            	
              $292,700,000

            

    

    

     

    (ii)   “Tranche
      2 Diluted EPS Goal” shall mean for each listed Earn-Out Year, the corresponding
      Diluted EPS of Madden:

     

    
      	Earn-Out
              Year 	Diluted
              EPS
	
              2008

            	
              $2.73

            
	
              2009

            	
              $3.55

            
	
              2010

            	
              $4.61

            

    

     

     

     

    
      
        
        

      

      
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                2011

              	
                $6.00

              
	
                2012

              	
                $7.80

              

      

       

    

    (c)  In
      case
      Madden shall at any time after the date of this Agreement (i) subdivide the
      outstanding Madden Common Stock, or (ii) combine the outstanding Madden Common
      Stock into a smaller number of shares, then, in each case, the number of shares
      of Madden Common Stock payable in connection with any Contingent Purchase Price
      Payment shall be proportionately adjusted so that Sellers after such time shall
      be entitled to receive the aggregate number and kind of shares for such
      consideration which, if the Contingent Purchase Price Payment had been made
      immediately prior to such time, Sellers would have owned upon such payment
      and
      been entitled to receive by virtue of such subdivision, or
      combination.  Such adjustment shall be made successively whenever any
      event listed above shall occur.

     

    3.  Contingent
      Purchase Price Statement; Dispute.

     

    (a)  As
      promptly as practicable, but in any event within ten (10) Business Days after
      the public release of Madden’s Financial Statements for each Earn-Out Year,
      Madden shall prepare and deliver to the Seller Representative (i) a statement
      which explains in reasonable detail the calculations of EBIT of Madden (or
      the
      Madden Unit, as appropriate) as well as (if applicable) any Diluted EPS of
      Madden for such fiscal year and whether Sellers have qualified as of the end
      of
      such Earn-Out Year for a Contingent Purchase Price Payment (a “Contingent
      Purchase Price Statement”) and (ii) reasonable supporting documentation
      sufficiently detailed to enable the Seller Representative to verify the amounts
      set forth in such Contingent Purchase Price Statement.

     

    (b)  The
      Seller Representative may dispute such Contingent Purchase Price Statement
      for
      such fiscal year by sending a written notice (a “Dispute Notice”) to Madden
      within thirty (30) days of Madden’s delivery of all of the items specified in
      Section 3(a) to the Seller Representative.  The Dispute Notice shall
      identify each disputed item on the Contingent Purchase Price Statement, specify
      the amount of such dispute and set forth in reasonable detail the good faith
      basis for such dispute.  In the event of any such disputes, Madden and
      the Seller Representative shall attempt, in good faith, to reconcile their
      differences (including providing information that is reasonably requested to
      the
      other party), and any resolution by them as to any disputed items shall be
      final, binding and conclusive on the parties and shall be evidenced by a writing
      signed by Madden and the Seller Representative, including a revised Contingent
      Purchase Price Statement (a “Revised Contingent Purchase Price Statement”)
      reflecting such resolution.  If Madden and the Seller Representative
      are unable to reach such resolution within twenty (20) days after the Seller
      Representative’s delivery of the Dispute Notice to Madden, then Madden and the
      Seller Representative shall promptly submit any remaining disputed items for
      final binding resolution to any independent accounting firm mutually acceptable
      to Madden and the Seller Representative (which accounting firm has not, within
      the prior twenty-four (24) months, provided services to Madden, any Seller
      or
      any Affiliate of any of them).  If Madden and the Seller
      Representative are unable to agree upon an independent accounting firm within
      ten (10) days, an independent accounting firm selected by Madden (which
      accounting firm has not, within the prior twenty-four (24) months, provided
      services to Madden or any of its Affiliates) and an independent accounting
      firm
      selected by the Seller Representative (which accounting firm

     

     

     

    
      
        
        

      

      
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    has
      not,
      within the prior twenty-four (24) months, provided services to any Seller or
      any
      of their Affiliates) shall select an independent accounting firm that has not,
      within the prior twenty-four (24) months, provided services to Madden, any
      Seller or any of their Affiliates.  Such independent accounting firm
      mutually agreed upon by Madden and the Seller Representative or
      selected  by the procedure referenced in the immediately preceding
      sentence, as the case may be, is hereinafter referred to as the “Independent
      Accounting Firm.”  If any remaining disputed items are submitted to an
      Independent Accounting Firm for resolution, (A) each party will furnish to
      the
      Independent Accounting Firm such workpapers and other documents and information
      relating to the remaining disputed items as the Independent Accounting Firm
      may
      request and are available to such party, and each party will be afforded the
      opportunity to present to the Independent Accounting Firm any material relating
      to the disputed items and to discuss the resolution of the disputed items with
      the Independent Accounting Firm; (B) each party will use its good faith
      commercially reasonable efforts to cooperate with the resolution process so
      that
      the disputed items can be resolved within forty-five (45) days of submission
      of
      the disputed items to the Independent Accounting Firm; (C) the determination
      by
      the Independent Accounting Firm, as set forth in a written notice to Madden
      and
      the Seller Representative (which written notice shall include a Revised
      Contingent Purchase Price Statement), shall be final, binding and conclusive
      on
      the parties; and (D) the fees and disbursements of the Independent Accounting
      Firm shall be allocated between Madden and Sellers in the same proportion that
      the aggregate dollar amount of the disputed items submitted to the Independent
      Accounting Firm that are unsuccessfully disputed by the Seller Representative
      (as finally determined by the Independent Accounting Firm) bears to the total
      amount of all disputed items submitted to the Independent Accounting
      Firm.

     

    (c)  The
      Contingent Purchase Price Statement or, if adopted pursuant to Section 3(b),
      the
      Revised Contingent Purchase Price Statement, shall be deemed to be final,
      binding and conclusive on Madden and Sellers (“Final Contingent Purchase Price
      Statement”) upon the earliest of (A) the failure of the Seller Representative to
      deliver to Madden the Dispute Notice within thirty (30) days of Madden’s
      delivery to the Seller Representative of all of the items specified in Section
      3(a) for such fiscal year; (B) the resolution by Madden and the Seller
      Representative of all disputes, as evidenced by a Revised Contingent Purchase
      Price Statement; and (C) the resolution by the Independent Accounting Firm
      of
      all disputes, as evidenced by a Revised Contingent Purchase Price
      Statement.  Any Contingent Purchase Price Payment based on a Final
      Contingent Purchase Price Statement shall be made in accordance with Section
      4
      hereof.

     

    4.  Contingent
      Purchase Price Payments.

     

    (a)   Each
      Contingent Purchase Price Payment, which shall be allocated among Sellers in
      the
      same manner as the allocation set forth on Schedule A attached hereto,
      shall be payable and paid by Madden on a date or dates selected by Madden that
      results in the payment of such Contingent Purchase Price Payment to Sellers
      in
      full on or before the fifth Business Day after the later of the date on which
      the Final Contingent Purchase Price Statement for an Earn-Out Year that would
      give rise to a Contingent Purchase Price Payment is deemed final, binding and
      conclusive for such Earn-Out Year (such date, the “Applicable Contingent
      Purchase Price Payment Date”).  Each Contingent Purchase Price Payment
      shall be paid in shares of the Madden Common Stock or in cash, or in any
      combination of the foregoing, as determined in the sole

     

     

     

    
      
        
        

      

      
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    discretion
      of Madden.  If Madden elects to pay all or a portion of any Contingent
      Purchase Price Payment in cash, the value of such payment shall be the number
      of
      shares that would have otherwise been paid multiplied by the average of the
      last
      reported trading prices of a share of Madden Common Stock on the NASDAQ (or
      such
      other national stock exchange or quotation system on which such stock is then
      principally traded) for the 20 consecutive trading days ending on the fifth
      Business Day prior to the date Madden makes payment of the cash portion of
      such
      Contingent Purchase Price Payment.  Payment of the cash portion of any
      Contingent Purchase Price Payment shall be made by wire transfer of immediately
      available funds to an account or accounts designated at least two Business
      Days
      prior to the applicable payment date by the Seller Representative in
      writing.

     

    (b)    If
      shares
      of Madden Common Stock are issued in connection with the payment of all or
      a
      portion of any Contingent Purchase Price Payment (the “Restricted Stock”),
      Madden shall, with in ninety (90) days, file and use its commercially reasonable
      efforts to have declared effective by the SEC a registration statement pursuant
      to Rule 415 of the Act (the “Registration Statement”) covering the resale of
      such shares. To the extent necessary to ensure that the Registration Statement
      is available for sales of Restricted Stock by the holders thereof, Madden shall
      use its commercially reasonable efforts to keep any Registration Statement
      required by this Section 4 continuously effective, supplemented, amended and
      current as required by and subject to the provisions of, and in conformity
      with,
      the requirements of this Agreement, the Act and the rules and regulations of
      the
      SEC, as announced from time to time, for a period of one year from the date
      of
      the issuance of the Restricted Stock or such shorter period as will terminate
      when all Restricted Stock covered by such Registration Statement has been sold
      pursuant thereto.  At the request of any Seller, Madden shall promptly
      file a prospectus supplement and furnish to such Seller, without charge, as
      many
      copies of the then effective prospectus as such Seller may reasonably request
      and any other documents reasonably necessary to facilitate the disposition
      of
      the Restricted Stock pursuant to the shelf registration.  All expenses
      incident to the registration of the Restricted Stock, other than discounts
      and
      commissions, shall be borne by Madden.  No holder of Restricted Stock
      may include any of its Restricted Stock in any Registration Statement pursuant
      to this Agreement unless and until such holder furnishes to Madden in writing
      the information required by the Act.  Each Seller agrees to promptly
      furnish to Madden additional information required to be disclosed in order
      to
      make the information previously furnished to Madden by such holder not
      materially misleading.

     

    (c)    Madden
      agrees to indemnify and hold harmless, to the full extent permitted by law,
      but
      without duplication, each Seller, and each Seller’s partners, advisors,
      Affiliates, trustees, representatives, employees and agents, against all losses,
      claims, damages, liabilities and expenses (including reasonable costs of
      investigation and reasonable legal fees and expenses and including expenses
      incurred in settlement of any litigation, commenced or threatened) resulting
      from any untrue statement (or alleged untrue statement) of a material fact
      in,
      or any omission (or alleged omission) of a material fact required to be stated
      in, any registration statement or prospectus or necessary to make the statements
      therein (in the case of a prospectus in light of the circumstances under which
      they were made) not misleading or any violation by Madden of the Act, state
      securities laws or any rule or regulation promulgated under such laws applicable
      to Madden in connection with any such registration, as such expenses are
      incurred, except insofar as (i) the same are caused by or contained in any
      information furnished in writing to Madden by such Seller expressly for use
      therein or (ii) such untrue statement or

     

     

    
      
        
        

      

      
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    omission
      (or alleged untrue statement or omission) has been corrected in a prospectus
      supplement timely delivered to such Seller and such Seller failed to deliver
      such updated prospectus (but only if the timely delivery of such prospectus
      supplement by such Seller would  have cured the defect giving rise to
      such loss, expense, claim, damage or liability).

     

    (d)  In
      connection with any registration statement in which Sellers are participating,
      each Seller will furnish to Madden in writing such information as Madden
      reasonably requests for use in connection with any such registration statement
      or prospectus and agrees to indemnify and hold harmless, to the full extent
      permitted by law, but without duplication, Madden and its respective, officers,
      directors, shareholders, employees, advisors, representatives, agents and
      Affiliates against any losses, claims, damages, liabilities and expenses
      (including reasonable costs of investigation and reasonable legal fees and
      expenses and including expenses incurred in settlement of any litigation,
      commenced or threatened) resulting from any untrue statement (or alleged untrue
      statement) of material fact in, or any omission (or alleged omission) of a
      material fact required to be stated in, the registration statement or prospectus
      or necessary to make the statements therein (in the case of a prospectus in
      light of the circumstances under which they were made) not misleading or any
      violation by Sellers of the Act, state securities laws or any rule or regulation
      promulgated under such laws applicable to Sellers in connection with any such
      registration, as such expenses are incurred, to the extent, but only to the
      extent, that such untrue statement or omission is contained in any information
      so furnished in writing by Sellers to Madden specifically for inclusion
      therein.  In no event shall any Seller be liable pursuant to this
      paragraph for any amount in excess of the net proceeds (net of payment of all
      expenses) received by such Seller from the stock sold by such Seller pursuant
      to
      such registration statement. In no event shall this Section limit any Seller’s
      liability with respect to any other portions of this Agreement or any other
      agreement.

     

    (e)  If
      for
      any reason the indemnification provided for in the immediately preceding two
      paragraphs is unavailable to an indemnified party or insufficient to hold it
      harmless, then the indemnifying party shall contribute to the amount paid or
      payable by the indemnified party as a result of such loss, expense, claim,
      damage or liability in such proportion as is appropriate to reflect the relative
      fault of the indemnifying party and the indemnified party, as well as any other
      relevant equitable considerations.  The relative fault shall be
      determined by reference to, among other things, whether the untrue or alleged
      untrue statement or the omission or alleged omission relates to information
      supplied by the indemnifying party or parties on the one hand or the indemnified
      party or parties on the other and the parties’ relative intent, knowledge,
      access to information and opportunity to correct or prevent such untrue
      statement or omission.  No party guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the Act) shall be
      entitled to contribution from any party who was not guilty of such fraudulent
      misrepresentation.  In no event shall any Seller be required to
      contribute pursuant to this paragraph any amount in excess of the net proceeds
      (net of payment of all expenses) received by such Seller from the stock sold
      by
      such Seller pursuant to such registration statement. In no event shall this
      Section limit any Seller’s liability with respect to any other portions of this
      Agreement or any other agreement.

     

    5.  Change
      in Control Trigger Events.  If during the term of this Agreement
      the capital stock of Madden or all or substantially all of the assets of Madden
      is sold to a third party that is not a 100 percent-owned subsidiary of Madden
      (such event a “CIC Trigger Event” and

     

     

     

    
      
        
        

      

      
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    such
      a
      party, a “CIC Acquirer”) this Agreement continue in full force until terminated
      pursuant to its terms, except that:

     

    (a)    In
      calculating whether any Contingent Purchase Price Payment is due, with respect
      to any fiscal year completed after the CIC Trigger Event, the Diluted EPS Goals
      shall be disregarded and the EBIT Goal shall reference the EBIT of that unit
      of
      the CIC Acquirer comprised solely of the Madden business or, if no such unit
      exists, those assets of the CIC Acquirer comprised of the Madden assets (the
      “Madden Unit”).

     

    (b)    With
      respect to any Contingent Purchase Price Payment due, in lieu of payment of
      168,000 shares of Madden Common Stock (or the cash equivalent thereof), as
      set
      forth, as appropriate in Section 2(a) and 2(b), Sellers shall receive a cash
      payment (or the stock equivalent thereof pursuant to Section 5(c) below) of
      (i)
      5,250,000 multiplied by (ii) the EBIT of Madden or the Madden Unit (as
      appropriate) for the second of the two consecutive Earn-Out Years which gave
      rise to the Contingent Purchase Price Payment divided by the EBIT of Madden
      for
      fiscal year 2006.

     

    (c)    In
      the
      event that the CIC Acquirer elects to pay all or a portion of any Contingent
      Purchase Price Payment in shares of its common stock, the value of each share
      delivered to Sellers shall be deemed to be equal to the average of the last
      reported trading prices of a share of the CIC Acquirer’s common stock on the
      national stock exchange or quotation system on which such stock is then
      principally traded for the 20 consecutive trading days ending on the fifth
      Business Day prior to the date CIC Acquirer makes payment of the stock portion
      of such Contingent Purchase Price Payment.

     

    (d)    Payment
      of the cash portion of any Contingent Purchase Price Payment shall be made
      by
      wire transfer of immediately available funds to an account or accounts
      designated at least two Business Days prior to the applicable payment date
      by
      Sellers in writing.

     

    (e)    References
      to Madden Common Stock and Madden in Sections 3, 4(b), 4(c), 4(d) and 4(e)
      shall
      thereinafter refer to the CIC Acquirer’s common stock and the CIC Acquirer
      (respectively).  In addition, references to Madden’s Financial
      Statements shall thereinafter refer to the financial statements of the CIC
      Acquirer, which such financial statements shall be prepared in accordance with
      GAAP.

     

    6.  Term.  This
      Agreement shall be effective on the Closing Date, if one occurs, and shall
      continue until the earlier the payment of all Contingent Purchase Price Payments
      pursuant to Section 4 or the expiration of Sellers’ payment rights
      hereunder.

     

    7.  Securities
      Laws Matters.  Each Seller hereby agrees that prior to acquiring
      any shares of Madden Common Stock (or any shares of CIC Acquirer’s common stock)
      pursuant to this Agreement, such Seller shall provide to Madden (or the CIC
      Acquirer) any written representations reasonably requested by Madden (or the
      CIC
      Acquirer) to ensure that the issuance of such shares to such Seller will be
      exempt from registration under the Act.  Each Seller hereby further
      acknowledges and agrees, that any shares of Madden Common Stock (or any shares
      of CIC Acquirer’s common stock) acquired by such Seller pursuant to this
      Agreement may be resold only pursuant to registration under the Act, or pursuant
      to an exemption from

     

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    registration
      under the Act (and that a restrictive legend to such effect will be placed
      upon
      any such securities), and that hedging activities involving those securities
      may
      not be conducted unless in compliance with the Act.

     

    8.     
      Assignment;
      Binding Nature.  Neither this Agreement nor any of the rights,
      interests or obligations hereunder may be assigned by any
      Seller.  Subject to the preceding sentence, this Agreement shall be
      binding upon, inure to the benefit of, and be enforceable by the parties hereto
      and their respective heirs, personal representatives, legatees, successors
      and
      permitted assigns.  

     

    9.     
      Amendment.  This
      Agreement may be modified or amended only by an instrument in writing, duly
      executed by Madden, on the one hand, and the Seller Representative, on the
      other
      hand.

     

    10.    Notices.  All
      notices, demands and communications of any kind which any party hereto may
      be
      required or desires to serve upon another party under the terms of this
      Agreement shall be in writing and shall be given by:  (a) personal
      service upon such other party; (b) mailing a copy thereof by certified or
      registered mail, postage prepaid, with return receipt requested;
      (c) sending a copy thereof by Federal Express or equivalent courier
      service; or (d) sending a copy thereof by facsimile, in each case addressed
      as
      required for notices pursuant to Section 13.3 of the Membership Interest
      Purchase Agreement.  In case of service by Federal Express or
      equivalent courier service or by facsimile or by personal service, such service
      shall be deemed complete upon delivery or transmission, as
      applicable.  In the case of service by mail, such service shall be
      deemed complete on the fifth Business Day after mailing.  The
      addresses and facsimile numbers to which, and persons to whose attention,
      notices and demands shall be delivered or sent may be changed from time to
      time
      by notice served as hereinabove provided by any party upon any other
      party.

     

    11.    Governing
      Law; Jurisdiction.  This Agreement and all the transactions
      contem­plated hereby, and all disputes between the parties under or related
      to the Agreement or the facts and circumstances leading to its execution,
      whether in contract, tort or otherwise, shall be governed by, and construed
      and
      enforced in accordance with, the laws of the State of New York including,
      without limitation, Section 5-1401 of the New York General Obligations Law
      and
      New York Civil Practice Laws and Rules 327.

     

    12.    Severability.  If
      any provision of this Agreement or the application of any such provision to
      any
      party or circumstances shall be determined by any arbitrator to be invalid
      or
      unenforceable to any extent, the remainder of this Agreement, or the application
      of such provision to such person or circumstances other than those to which
      it
      is so determined to be invalid or unenforceable, shall not be affected thereby,
      and each provision hereof shall be enforced to the fullest extent permitted
      by
      law. If the final determination of an arbitrator declares
      that any item or provision hereof is invalid or unenforceable, the parties
      hereto agree that the arbitrator making the determination of invalidity or
      unenforceability shall have the power, and is hereby directed, to reduce the
      scope, duration or area of the term or provision, to delete specific words
      or
      phrases and to replace any invalid or unenforceable term or provision with
      a
      term or provision that is valid and enforceable and that comes closest to
      expressing the

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     

     

    intention
      of the invalid or unenforceable term or provision, and this Agreement shall
      be
      enforceable as so modified.

     

    13.  Headings.  The
      headings in this Agreement are inserted for convenience only and shall not
      constitute a part hereof.

     

    14.  Counterparts;
      Facsimile.  For the convenience of the parties, any number of
      counterparts hereof may be executed, each such executed counterpart shall be
      deemed an original, and all such counterparts together shall constitute one
      and
      the same instrument.  Facsimile transmission of any signed original
      counterpart and/or retransmission of any signed facsimile transmission shall
      be
      deemed the same as the delivery of an original.

     

    15.  Entire
      Agreement.  This Agreement, the Membership Interest Purchase
      Agreement and the Employment Agreement, including all schedules and exhibits
      hereto and thereto, contain the entire understanding of the parties hereto
      with
      respect to the subject matter hereof.

     

    [Remainder
      of page intentionally left blank]

     

     

     

     

    

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      first above written.

     

    

                                         PURCHASER:

    

                                         STEVEN
      MADDEN,
      LTD.

    

    

                                         By: /s/
      Jamieson A. Karson          
           

                                     Name:
      Jamieson A.
      Karson

                                    
Title:
       Chairman and Chief Executive Officer

    

    

                                            SELLERS:

    

                                    
      /s/ Jeffrey
      Silverman                    
                                                      

                                           
Jeff
      Silverman

    

                                  
/s/
      James
      Randel                            
                                                      

                                          
James
      Randel

    

                                   /s/
      Ron
      Offir                                   
                                                      

                                          
Ron
      Offir

     

                                      /s/
      Godfrey
      Baker                           
                                                      

                                          Godfrey
      Baker

     

                                   /s/
      Alyse
      Nathan                          
                                                      

                                          Alyse
      Nathan

     

                                     
/s/
      Andrew
      Rosca                         
                                                      

                                          Andrew
      Rosca

     

    

     

     

    12kl05058_ex10-3.htm

    
      

    

                                                                                                                

                                                                                                  Exhibit
      10.3

     

     

     

    EMPLOYMENT
      AGREEMENT

     

    THIS
      AGREEMENT (the “Agreement”), made in New York, New York as of the 16th day of
      May 2007,
      between Steven Madden, Ltd., a Delaware corporation (the “Company”),
      and Jeffrey
      Silverman  (“Executive”).

     

    WHEREAS,
      the Company intends to acquire all of the issued and outstanding ownership
      interests of Compo Enhancements, LLC (“Compo”) pursuant to a Membership Interest
      Purchase Agreement by and among the Company and the members of Compo, including
      Executive (the “Membership Interest Purchase Agreement”);

     

    WHEREAS,
      this Agreement is to be effective upon the Closing (as defined in the Membership
      Interest Purchase Agreement);

     

    WHEREAS,
      the Company wishes to ensure that it will continue to have the benefits of
      Executive's services after the Closing on the terms and conditions hereinafter
      set forth;

     

    WHEREAS,
      the Company and Executive acknowledge and agree that the retention of
      Executive's services and Executive's agreement to enter into and adhere to
      the
      noncompetition, nonsolicitation and nondisclosure of proprietary information
      provisions contained in this Agreement are critical reasons for the Company
      entering into the Membership Interest Purchase Agreement and consummating the
      transactions contemplated thereby; and

     

    WHEREAS,
      Executive desires to work for the Company on the terms and conditions
      hereinafter set forth;

     

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual covenants and agreements hereinafter
      set forth, the Company and Executive agree as follows:

     

    1.  Term.  The
      term of employment shall commence upon the Closing, if one occurs (the
“Effective Date”) and shall continue until December 31, 2009, subject to earlier
      termination as provided herein (the “Term”).

     

    2.  Employment.

     

    (a)  Employment
      by the Company.  Executive agrees to be employed by the Company
      during the Term upon the terms and subject to the conditions set forth in this
      Agreement.  Executive shall serve as the President of the Company and
      shall report to the Chief Executive Officer of the Company.

     

    (b)  Performance
      of Duties.  Throughout his employment with the Company, Executive
      shall faithfully and diligently perform Executive’s duties in conformity with
      the directions of the Company and serve the Company to the best of Executive’s
      ability.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    Except
      as
      otherwise consented to in writing by the Board of Directors of the Company,
      Executive shall devote his full business time and best efforts to the business
      and affairs of the Company.  In his capacity as the President of the
      Company, Executive shall have such duties and responsibilities as he may be
      assigned by the Chief Executive Offer or the Board of Directors of the Company,
      not inconsistent with his position as President of the
      Company.  Executive shall also cooperate as requested by the Company
      in connection with the Company obtaining a life insurance policy for the
      Executive.

     

    3.  Compensation
      and Benefits.

     

    (a)  Base
      Salary.  The Company agrees to pay to Executive a base salary
      (“Base Salary”) at the annual rate of $600,000.  Payments of the Base
      Salary shall be payable in equal installments in accordance with the Company’s
      standard payroll practices.

     

    (b)  Annual
      Bonus.  Upon the approval of this Agreement, the Compensation
      Committee of the Board of Directors of the Company (the “Compensation
      Committee”) shall approve the following cash bonus opportunity with respect to
      each fiscal year occurring during the Term:

     

    (i)  After
      the
      end of each fiscal year, the Company shall compute the change in the EBIT (as
      defined below) between such fiscal year (the “Most Recently Completed Year”) and
      the fiscal year immediately preceding the Most Recently Completed Year (such
      change, the Company’s “EBIT Growth”).  Based on such EBIT Growth, and
      upon the Compensation Committee’s certification of the achievement of any such
      EBIT Growth, Executive shall be paid (pursuant to the terms of 3(b)(ii) below)
      a
      cash bonus (the “Annual Bonus”) as follows:

     

    
      	
              (A)  

            	
              with
                respect to that portion of the Company’s EBIT Growth that is in range of
                0% to 10% (if any), Executive shall be paid a cash bonus of 2% of
                such
                portion of EBIT Growth;

            

    

     

    
      	
              (B)  

            	
              with
                respect to that portion of the Company’s EBIT Growth (if any) that is in
                the range of over 10% to 20%, Executive shall be paid a cash bonus
                of 3%
                of such portion of EBIT Growth; and

            

    

     

    
      	
              (C)  

            	
              with
                respect to that portion of the Company’s EBIT Growth (if any) that is over
                20%, Executive shall be paid a cash bonus of 5% of such  portion
                of EBIT Growth.

            

    

     

    Notwithstanding
      anything in this Section 3(b)(i) to the contrary, (X) the maximum aggregate
      Annual Bonus to which Executive shall be eligible pursuant to this Section
      3(b)
      in any fiscal year shall be $1,400,000 and (Y) with respect to the 2007 fiscal
      year, any Annual Bonus shall be pro-rated to reflect the percentage of the
      year
      in which Executive was employed with the Company.  “EBIT” shall mean
      the Company’s earnings before interest and taxes as determined in accordance
      with United States generally accepted accounting principles consistently
      applied.  In calculating EBIT, the following items shall be
      disregarded by the Compensation Committee:  (a) the disposal of a
      business or discontinued operations; (b) capital transactions undertaken by
      the

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    Company
      during the fiscal year (other than the Compo transaction); (c) unbudgeted
      changes in accounting principles or to changes in applicable law or regulations;
      or (d) extraordinary items and other unusual or non-recurring charges as
      provided under applicable accounting principles.

    

    (ii)  The
      Annual Bonus, if any, shall be paid no later than March 15th after the
      end of
      the Most Recently Competed Fiscal Year, which is the calendar year, following
      the Compensation Committee’s certification that the EBIT Growth targets have
      been achieved, provided, that the Executive shall be actively employed through
      such payment date.

     

    (iii)  Other
      than with respect to the Annual Bonus relating to the 2007 fiscal year, the
      Annual Bonus shall be granted under the Company’s 2006 Stock Incentive Plan as a
“Performance-Based Cash Award” (as defined under the Company’s 2006 Stock
      Incentive Plan) and shall be subject to the terms and conditions under the
      Company’s 2006 Stock Incentive Plan.

     

    (c)  Stock
      Options.  Upon the approval of this Agreement, the Compensation
      Committee shall grant to the Executive the following stock options under the
      Company’s 2006 Stock Incentive Plan to be effective upon, and subject to, the
      occurrence of the Closing:

     

    (i)  an
      option
      to purchase an aggregate of 150,000 shares of common stock, par value $ 0.0001
      per share of the Company (“Common Stock”), which shall vest in 50,000 share
      increments on the first, second and third anniversaries of the Effective Date
      (subject to the Executive’s continued employment through such
      dates),  shall have an exercise price of $45.00 per share, shall
      remain exercisable for five (5) years from the Effective Date (subject to
      earlier termination due to a termination of employment),  and which
      shall be pursuant to a Stock Option Grant Agreement of even date herewith
      between the Company and Executive, in substantially the form attached hereto
      as
Exhibit A.

     

    (ii)  an
      option
      to purchase an aggregate of 150,000 shares of Common Stock, which shall vest
      in
      50,000 share increments on the first, second and third anniversaries of the
      Effective Date (subject to the Executive’s continued employment through such
      date), shall have an exercise price of $50.00 per share, shall remain
      exercisable for five (5) years from the Effective Date, and which shall be
      pursuant to a Stock Option Grant Agreement of even date herewith between the
      Company and Executive, in substantially the form attached hereto as Exhibit
      B.

     

    (d)  Benefits.  Executive
      shall be entitled to participate in, to the extent Executive is otherwise
      eligible under the terms thereof, the benefit plans and programs, and receive
      the benefits, generally provided by the Company to senior executives of the
      Company, including without limitation family medical insurance (subject to
      applicable employee contributions).  Executive shall be entitled to
      receive vacation days in accordance with Company policy, such days to be accrued
      in accordance with Company policy.

     

    (e)  Business
      Expenses.  The Company agrees to reimburse Executive for all
      reasonable and necessary travel, business entertainment and other business
      expenses incurred by Executive in connection with the performance of his duties
      under this Agreement.  

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Such
      reimbursements shall be made by the Company on a
      timely basis upon submission by Executive of vouchers in accordance with the
      Company’s standard procedures.

     

    (f)    
No
      Other Compensation or Benefits; Payment.  The compensation and
      benefits specified in this Section 3 and in Section 5 of this Agreement shall
      be
      in lieu of any and all other compensation and benefits.  Payment of
      all compensation and benefits to Executive specified in this Section 3 and
      in
      Section 5 of this Agreement (i) shall be made in accordance with the relevant
      Company policies in effect from time to time to the extent the same are
      consistently applied, including normal payroll practices, and (ii) shall be
      subject to all legally required and customary withholdings.

     

    (g)    Cessation
      of Employment.  In the event Executive shall cease to be employed
      by the Company for any reason, Executive’s compensation and benefits shall cease
      on the date of such event, except as otherwise specifically provided herein
      or
      in any applicable employee benefit plan or program or as required by
      law.

     

    4.  Termination
      of Employment.  Executive’s employment hereunder may be terminated
      prior to the end of the Term under the following circumstances.

     

    (a)    Death.  Executive’s
      employment hereunder shall terminate upon Executive’s death.

     

    (b)    Executive
      Becoming Totally Disabled.  The Company may terminate Executive’s
      employment hereunder at any time after Executive becomes “Totally
      Disabled.”  For purposes of this Agreement, Executive shall be
“Totally Disabled” in the event Executive is unable to perform the duties and
      responsibilities contemplated under this Agreement, due to physical or mental
      incapacity or impairment, for a period of either (A) 120 consecutive days or
      (B)
      6 months in any 12-month period .  During any period that Executive
      fails to perform Executive’s duties hereunder as a result of such incapacity due
      to physical or mental illness (the “Disability Period”), Executive shall
      continue to receive the compensation and benefits provided by Section 3 of
      this
      Agreement until Executive’s employment hereunder is terminated,
      provided  that such period shall not exceed 29
      months.  Notwithstanding the foregoing, the amount of base
      compensation and benefits received by Executive during the Disability Period
      shall be reduced by the aggregate amounts, if any, payable to Executive under
      any disability benefit plan or program provided to Executive by the
      Company.

     

    (c)    Termination
      by the Company for Cause.  The Company may terminate Executive’s
      employment hereunder for Cause at any time after providing written notice to
      Executive.  For purposes of this Agreement, the term “Cause” shall
      mean any of the following:  (i) Executive’s neglect or failure or
      refusal to perform his duties under this Agreement (other than as a result
      of
      total or partial incapacity due to physical or mental illness); (ii) any act
      by
      or omission of Executive constituting gross negligence or willful misconduct
      in
      connection with the performance of his duties that could reasonably be expected
      to materially injure the reputation, business or business relationships of
      the
      Company or any of its affiliates; (iii) perpetration of an intentional and
      knowing fraud against or affecting the Company or any of its affiliates or
      any
      customer, client, agent, or employee thereof; (iv) the commission by or
      indictment of Executive for (A) a felony or (B) any misdemeanor involving moral
      turpitude,

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    deceit,
      dishonesty or fraud (“indictment,” for these purposes, meaning a United
      States-based indictment, probable cause hearing or any other procedure pursuant
      to which an initial determination of probable or reasonable cause with respect
      to such offense is made); (v) the breach of a covenant set forth in Section
      6;
      or (vi) any other material breach of this Agreement.

     

    (d)  Termination
      by the Company Without Cause.  The Company may terminate
      Executive’s employment hereunder at any time for any reason or no reason by
      giving Executive thirty (30) days prior written notice of the
      termination.  Following any such notice, the Company may reduce or
      remove any and all of Executive’s duties, positions and titles with the
      Company.

     

    (e)  Termination
      Upon a Change in Control.  If the Company terminates Executive’s
      employment hereunder without Cause within 90 days after the occurrence of the
      Change in Control Executive shall be entitled to the payments provided for
      by
      Section 5(d).  For purposes of this Agreement, a “Change in Control”
shall be conclusively deemed to have occurred if any of the following shall
      have
      taken place:

     

    (i)   the
      consummation of a transaction or a series of related transactions pursuant
      to
      which any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the
      Securities Exchange Act of 1934 (“Exchange Act”), other than the Executive, his
      designee(s) or “affiliate(s)” (as defined in Rule 12b-2 under the Exchange Act),
      is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
      Exchange Act), directly or indirectly, of securities of the Company representing
      forty percent (40%) or more of the combined voting power of the Company’s then
      outstanding securities;

     

    (ii)  stockholders
      of the Company approve a merger or consolidation of the Company with any other
      entity, other than a merger or consolidation which would result in the voting
      securities of the Company outstanding immediately prior thereto continuing
      to
      represent (either by remaining outstanding or by being converted into voting
      securities of the surviving entity) more than eighty percent (80%) of the
      combined voting power of the voting securities of the Company or such surviving
      entity outstanding immediately after such merger or consolidation;
      or

     

    (iii)  the
      stockholders of the Company approve a plan of complete liquidation of the
      Company or an agreement for the sale or disposition by the Company of, or the
      Company sells or disposes of, all or substantially all of the Company’s
      assets.

     

    (f)  Termination
      by Executive.  Executive may terminate his employment hereunder at
      any time for any reason or no reason by giving the Company thirty (30) days
      prior written notice of the termination.  Following any such notice,
      the Company may reduce or remove any and all of Executive’s duties, positions
      and titles with the Company.

     

    5.  Compensation
      Following Termination.  In the event that Executive’s employment
      hereunder is terminated, Executive shall be entitled only to the following
      compensation and benefits upon such termination:

    
       

      (a)    General.  On
        any termination of Executive’s employment prior to the end of the Term,
        Executive shall be entitled to the following (collectively, the
“Standard

    

     

    
       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

     

    Termination
      Payments”), which shall be paid within 60
      days of termination:

     

    (i)    any
      accrued but unpaid Base Salary for services rendered through the date of
      termination; provided, however, that in the event Executive’s employment is
      terminated pursuant to Section 4(b), the amount of Base Salary received by
      Executive during the Disability Period shall be reduced by the aggregate
      amounts, if any, payable to Executive under any disability benefit plan or
      program provided to Executive by the Company;

     

    (ii)    any
      vacation accrued to the date of termination, in accordance with Company
      policy;

     

    (iii)   any
      accrued but unpaid expenses through the date of termination required to be
      reimbursed in accordance with Section 3(d) of this Agreement; and

     

    (iv)   any
      benefits to which he may be entitled upon termination pursuant to the grants
      referred to in Section 3(c) hereof in accordance with the terms of such
      grants.

     

    (b)    Termination
      Prior to the Expiration of the Term by Reason of Death or Executive Becoming
      Totally Disabled; Termination Prior to the Expiration of the Term by the Company
      for Cause; Termination Prior to the Expiration of the Term by
      Executive.  In the event that Executive’s employment is terminated
      prior to the expiration of the Term (i) by reason of Executive’s death pursuant
      to Section 4(a) or Executive becoming Totally Disabled pursuant to Section
      4(b),
      (ii) by the Company for Cause pursuant to Section 4(c) or (iii) by Executive
      pursuant to Section 4(f), Executive (or his estate, as the case may be) shall
      be
      entitled only to the Standard Termination Payments.

     

    (c)    Termination
      Prior to the Expiration of the Term by the Company Without
      Cause.  In the event that Executive’s employment is terminated
      prior to the expiration of the Term by the Company without Cause pursuant to
      Section 4(d), Executive shall be entitled only to the following:

     

    (i)    the
      Standard Termination Payments; and

     

    (ii)    the
      continued payment of the Base Salary (as determined pursuant to Section 3(a))
      throughout the Term.  Such sums are to be paid at the times and in the
      amounts such Base Salary would have been paid had Executive’s employment not
      terminated; provided, however, that (A) no payments in excess of Executive’s
      Separation Pay Limit shall be made for a six-month period following the date
      of
      termination, and (B) any amounts delayed pursuant to clause (A) shall be paid
      in
      a lump sum six months following the date of termination.

     

    (iii)    For
      purposes of paragraphs (c) and (d) of this Section 5, Separation Pay Limit
      means
      the lesser of two times Executives annual compensation for the prior year or
      two
      times the Code Section 401(a)(17) limit for the year of termination

     

    (d)    Termination
      Upon a Change of Control.  In the event that the 

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    Company
      terminates Executive’s employment hereunder
      without Cause within 90 days after the occurrence of the Change in Control
      pursuant to Section 4(e), Executive shall be entitled only to the following
      payments:

     

    (i)  the
      Standard Termination Payments; and

     

    (ii)  a
      payment
      of three times the total average compensation earned by Executive pursuant
      to
      Sections 3(a) and (b) hereof for the last three prior fiscal years (or since
      the
      Effective Date if shorter), up to that amount which is permitted to be paid
      pursuant to Section 280G of the Code without the
      imposition of any excise or other similar additional tax, which payment is
      to be
      made within 60 days of termination of employment.

     

    (e)  Effect
      of Material Breach of Section 6 on Compensation and Benefits Following
      Termination of Employment Pursuant to Sections 5(c)(ii) or
      5(d)(ii).  If, at the time of termination of Executive’s
      employment for any reason prior to the expiration of the Term or any time
      thereafter, Executive is in material breach of any covenant contained in Section
      6 hereof, Executive (or his estate, as applicable) shall not be entitled to
      any
      payment (or if payments have commenced, any continued payment) under Sections
      5(c)(ii) or 5(d)(ii).

     

    (f)  No
      Further Liability; Release.  Payment made and performance by the
      Company in accordance with this Section 5 shall operate to fully discharge
      and
      release the Company and its directors, officers, employees, affiliates,
      stockholders, successors, assigns, agents and representatives from any further
      obligation or liability with respect to Executive’s employment and termination
      of employment.  Other than providing the compensation and benefits
      provided for in accordance with this Section 5, the Company and its directors,
      officers, employees, affiliates, stockholders, successors, assigns, agents
      and
      representatives shall have no further obligation or liability to Executive
      or
      any other person under this Agreement.  The payment of any amounts
      pursuant to this Section 5 (other than payments required by law) is expressly
      conditioned upon the delivery by Executive to the Company of a release in form
      and substance reasonably satisfactory to the Company of any and all claims
      Executive may have against the Company and its directors, officers, employees,
      affiliates, stockholders, successors, assigns, agents and representatives
      arising out of or related to Executive’s employment by the Company and the
      termination of such employment.

     

    6.  Exclusive
      Employment; Non-competition; Non-solicitation; Nondisclosure of Proprietary
      Information; Surrender of Records; Inventions and Patents; Code of
      Ethics.

     

    (a)  No
      Conflict; No Other Employment.  During the period of Executive’s
      employment with the Company, Executive shall not:  (i) engage in any
      activity which conflicts or interferes with or derogates from the performance
      of
      Executive’s duties hereunder nor shall Executive engage in any other business
      activity, whether or not such business activity is pursued for gain or profit
      and including service as a director of any other company, except as approved
      in
      advance in writing by the Company; provided, however, that Executive shall
      be
      entitled to manage his personal investments and otherwise attend to personal
      affairs, including charitable, social and political activities, in a manner
      that
      does not unreasonably interfere with his responsibilities hereunder, or (ii)
      accept or engage in any other

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

     

    employment,
      whether as an employee or consultant or in any other capacity, and whether
      or
      not compensated therefor.

     

    (b)  Non-competition;
      Non-solicitation.

     

    (i)  Executive
      acknowledges and recognizes the highly competitive nature of the Company’s
      business and that access to the Company’s confidential records and proprietary
      information renders him special and unique within the Company’s
      industry.  In consideration of the payment by the Company to Executive
      of amounts that may hereafter be paid to Executive pursuant to this Agreement
      (including, without limitation, pursuant to Sections 3 and 5 hereof) and other
      obligations undertaken by the Company hereunder, Executive agrees that through
      December 31, 2011 (the “Covered Time”), Executive shall not, directly or
      indirectly, engage (as owner, investor, partner, stockholder, employer,
      employee, consultant, advisor, director or otherwise) in any Competing Business,
      provided that  the provisions of this Section 6(b) will not be deemed
      breached merely because Executive, (X) owns less than 1% of the outstanding
      common stock of a publicly-traded company (Y) owns no more than 50% of the
      so
      called “Preschoolians” business and/or sits on the board of such business,
      provided that Executive is not active in the management of such business or
      (Z)
      participates in the so called “Preschoolians” business (including being active
      in the management of such business), so long as (i) such participation does
      not
      occur prior to January 1, 2010, and (ii) such
“Preschoolians”  business is substantially similar in scope and
      business line and is conducted in a substantially similar manner as it is
      presently conducted as of the date of this Agreement. For purposes of this
      Agreement, “Competing Business” shall mean (i) any business in which the Company
      or its affiliates are currently engaged anywhere in the world; and (ii) any
      other business in which the Company engages in anywhere in the world during
      the
      Term (including any so called e-commerce business).

     

    (ii)  In
      further consideration of the payment by the Company to Executive of amounts
      that
      may hereafter be paid to Executive pursuant to this Agreement (including,
      without limitation, pursuant to Sections 3 and 5 hereof) and other obligations
      undertaken by the Company hereunder, Executive agrees that during his employment
      and the Covered Time, he shall not, directly or indirectly, (i) solicit,
      encourage or attempt to solicit or encourage any of the employees, agents,
      consultants or representatives of the Company or any of its affiliates to
      terminate his, her, or its relationship with the Company or such affiliate;
      (ii) solicit, encourage or attempt to solicit or encourage any of the
      employees, agents, consultants or representatives of the Company or any of
      its
      affiliates to become employees, agents, representatives or consultants of any
      other person or entity; (iii) solicit or attempt to solicit any customer, vendor
      or distributor of the Company or any of its affiliates with respect to any
      product or service being furnished, made, sold or leased by the Company or
      such
      affiliate; or persuade
      or seek to persuade any customer of the Company or any affiliate to cease to
      do
      business or to reduce the amount of business which any customer has customarily
      done or contemplates doing with the Company or such affiliate, whether or not
      the relationship between the Company or its affiliate and such customer was
      originally established in whole or in part through Executive’s
      efforts.  For purposes of this Section 6(b) only, the terms
“customer,” “vendor” and “distributor” shall mean a customer, vendor or
      distributor who has done business with the Company or any of its affiliates
      within twelve months preceding the termination of Executive’s
      employment.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    (iii)  During
      Executive’s employment with the Company and during the Covered Time, Executive
      agrees that upon the earlier of Executive’s (i) negotiating with any Competitor
      (as defined below) concerning the possible employment of Executive by the
      Competitor, (ii) receiving an offer of employment from a Competitor, or (iii)
      becoming employed by a Competitor, Executive will (A) immediately provide notice
      to the Company of such circumstances and (B) provide copies of Section 6 of
      this
      Agreement to the Competitor.  Executive further agrees that the
      Company may provide notice to a Competitor of Executive’s obligations under this
      Agreement, including without limitation Executive’s obligations pursuant to
      Section 6 hereof.  For purposes of this Agreement, “Competitor” shall
      mean any entity (other than the Company or any of its affiliates) that engages,
      directly or indirectly, in any Competing Business.

     

    (iv)  Executive
      understands that the provisions of this Section 6(b) may limit his ability
      to
      earn a livelihood in a business similar to the business of Compo, the Company
      or
      its affiliates but nevertheless agrees and hereby acknowledges that the
      consideration provided under this Agreement, including any amounts or benefits
      provided under Sections 3 and 5 hereof and other obligations undertaken by
      the
      Company hereunder, is sufficient to justify the restrictions contained in such
      provisions.  In consideration thereof and in light of Executive’s
      education, skills and abilities, Executive agrees that he will not assert in
      any
      forum that such provisions prevent him from earning a living or otherwise are
      void or unenforceable or should be held void or unenforceable.

     

    (c)  Proprietary
      Information.  Executive acknowledges that during the course of his
      employment with the Company he will necessarily have access to and make use
      of
      proprietary information and confidential records of the Company and its
      affiliates.  Executive covenants that he shall not during the Term or
      at any time thereafter, directly or indirectly, use for his own purpose or
      for
      the benefit of any person or entity other than the Company, nor otherwise
      disclose, any proprietary information to any individual or entity, unless such
      disclosure has been authorized in writing by the Company or is otherwise
      required by law.  Executive acknowledges and understands that the term
“proprietary information” includes, but is not limited to:  (a)
      inventions, trade secrets, ideas, processes, formulas, source and object codes,
      data, programs, other works of authorship, know-how, improvements, research,
      discoveries, developments, designs, and techniques regarding any of the
      foregoing utilized by the Company or any of its affiliates; (b) the name
      and/or address of any customer or vendor of the Company or any of its affiliates
      or any information concerning the transactions or relations of any customer
      or
      vendor of the Company or any of its affiliates with the Company or such
      affiliate or any of its or their partners, principals, directors, officers
      or
      agents; (c) any information concerning any product, technology, or procedure
      employed by the Company or any of its affiliates but not generally known to
      its
      or their customers, vendors or competitors, or under development by or being
      tested by the Company or any of its affiliates but not at the time offered
      generally to customers or vendors; (d) any information
      relating to the pricing or marketing methods, sales margins, cost of goods,
      cost
      of material, capital structure, operating results, borrowing arrangements or
      business plans of the Company or any of its affiliates; (e) any information
      which is generally regarded as confidential or proprietary in any line of
      business engaged in by the Company or any of its affiliates; (f) any business
      plans, budgets, advertising or marketing plans; (g) any information contained
      in
      any of the written or oral policies and procedures or manuals of the Company
      or
      any of its affiliates; (h) any information

     

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    belonging
      to customers or vendors of the Company or any of its affiliates or any other
      person or entity which the Company or any of its affiliates has agreed to hold
      in confidence; (i) any inventions, innovations or improvements covered by this
      Agreement; and (j) all written, graphic and other material relating to any
      of the foregoing.   Executive acknowledges and understands that
      information that is not novel or copyrighted or patented may nonetheless be
      proprietary information.  The term “proprietary information” shall not
      include information generally available to and known by the public or
      information that is or becomes available to Executive on a non-confidential
      basis from a source other than the Company, any of its affiliates, or the
      directors, officers, employees, partners, principals or agents of the Company
      or
      any of its affiliates (other than as a result of a breach of any obligation
      of
      confidentiality).

     

    (d)  Confidentiality
      and Surrender of Records.  Executive shall not during the Term or
      at any time thereafter (irrespective of the circumstances under which
      Executive’s employment by the Company terminates), except as required by law,
      directly or indirectly publish, make known or in any fashion disclose any
      confidential records to, or permit any inspection or copying of confidential
      records by, any individual or entity other than in the course of such
      individual’s or entity’s employment or retention by the Company.  Upon
      termination of employment for any reason or upon request by the Company,
      Executive shall deliver promptly to the Company all property and records of
      the
      Company or any of its affiliates, including, without limitation, all
      confidential records.  For purposes hereof, “confidential records”
means all correspondence, reports, memoranda, files, manuals, books, lists,
      financial, operating or marketing records, magnetic tape, or electronic or
      other
      media or equipment of any kind which may be in Executive’s possession or under
      his control or accessible to him which contain any proprietary
      information.  All property and records of the Company and any of its
      affiliates (including, without limitation, all confidential records) shall
      be
      and remain the sole property of the Company or such affiliate during the Term
      and thereafter.

     

    (e)  Inventions
      and Patents.

     

    (i)    The
      Executive agrees that all processes, technologies and inventions (collectively,
      "Inventions"), including new contributions, improvements, ideas and discoveries,
      whether patentable or not, conceived, developed, invented or made by him during
      the Term shall belong to the Company, provided that such Inventions grew out
      of
      the Executive's work with the Company or any of its subsidiaries or affiliates,
      are related in any manner to the business (commercial or experimental) of the
      Company or any of its subsidiaries or affiliates or are conceived or made on
      the
      Company's time or with the use of the Company's facilities or
      materials.  The Executive shall further:  (a) promptly
      disclose such Inventions to the Company; (b) assign to the Company, without
      additional compensation, all patent and other rights to such Inventions for
      the
      United States and foreign countries; (c) sign all papers necessary to carry
      out
      the foregoing; and (d) give testimony in support of the Executive's
      inventorship.

     

    (ii)    If
      any
      Invention is described in a patent application or is disclosed to third parties,
      directly or indirectly, by the Executive within two years after the termination
      of the Executive's employment by the Company, it is to be presumed that the
      Invention was conceived or made during the Term.

     

    (iii)    The
      Executive agrees that the Executive will not assert any rights

     

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     

    to
      any
      Invention as having been made or acquired by the Executive prior to the date
      of
      this Agreement, except for Inventions, if any, disclosed to the Company in
      writing prior to the date hereof.

     

    (iv)  The
      Company shall be the sole owner of all the products and proceeds of the
      Executive's services hereunder, including, but not limited to, all materials,
      ideas, concepts, formats, suggestions, developments, arrangements, packages,
      programs and other intellectual properties that the Executive may acquire,
      obtain, develop or create in connection with and during the Term, free and
      clear
      of any claims by the Executive (or anyone claiming under the Executive) of
      any
      kind or character whatsoever (other than the Executive's right to receive
      payments hereunder).  The Executive shall, at the request of the
      Company, execute such assignments, certificates or other instruments as the
      Company may from time to time deem necessary or desirable to evidence,
      establish, maintain, perfect, protect, enforce or defend its right, title or
      interest in or to any such properties.

     

    (f)  Enforcement.  Executive
      acknowledges and agrees that, by virtue of his position, his services and access
      to and use of confidential records and proprietary information, any violation
      by
      him of any of the undertakings contained in this Section 6 would cause the
      Company and/or its affiliates immediate, substantial and irreparable injury
      for
      which it or they have no adequate remedy at law.  Accordingly,
      Executive agrees and consents to the entry of an injunction or other equitable
      relief by a court of competent jurisdiction restraining any violation or
      threatened violation of any undertaking contained in this Section
      6.  Executive waives posting by the Company or its affiliates of any
      bond otherwise necessary to secure such injunction or other equitable
      relief.  Rights and remedies provided for in this Section 6 are
      cumulative and shall be in addition to rights and remedies otherwise available
      to the parties hereunder or under any other agreement or applicable
      law.

     

    (g)  Code
      of Ethics.  Nothing in this Section 6 is intended to limit, modify
      or reduce Executive’s obligations under the Company’s Code of
      Ethics.  Executive’s obligations under this Section 6 are in addition
      to, and not in lieu of, Executive’s obligations under the Code of
      Ethics.  To the extent there is any inconsistency between this Section
      6 and the Code of Ethics which would permit Executive to take any action or
      engage in any activity pursuant to this Section 6 which he would be barred
      from
      taking or engaging in under the Code of Ethics, the Code of Ethics shall
      control.

     

    7.  Assignment
      and Transfer.

     

    (a)  Company.  This
      Agreement shall inure to the benefit of and be enforceable by, and may be
      assigned by the Company without Executive’s consent to, any purchaser of all or
      substantially all of the Company’s business or assets, or to any successor to
      the Company or any assignee thereof (whether direct or indirect, by purchase,
      merger, consolidation or otherwise).

     

    (b)  Executive.
      The parties hereto agree that Executive is obligated under this Agreement to
      render personal services during his employment of a special, unique, unusual,
      extraordinary and intellectual character, thereby giving this Agreement special
      value.  Executive’s rights and obligations under this Agreement shall
      not be transferable by Executive

     

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    by
      assignment or otherwise, and any purported assignment, transfer or delegation
      thereof shall be void; provided, however, that if Executive shall die, all
      amounts then payable to Executive hereunder shall be paid in accordance with
      the
      terms of this Agreement to Executive’s estate.

     

    8.  Miscellaneous.

     

    (a)  Cooperation.  Following
      termination of employment with the Company for any reason, Executive shall
      cooperate with the Company, as requested by the Company, to effect a transition
      of Executive’s responsibilities and to ensure that the Company is aware of all
      matters being handled by Executive.

     

    (b)  Mitigation.  Executive
      shall not be required to mitigate damages or the amount of any payment provided
      to him under Section 5 of this Agreement by seeking other employment or
      otherwise, nor shall the amount of any payments provided to Executive under
      Section 5 be reduced by any compensation earned by Executive as the result
      of
      employment by another employer after the termination of Executive’s employment
      or otherwise.

     

    (c)  Protection
      of Reputation.  During the Term and thereafter, Executive agrees
      that he will take no action which is intended, or would reasonably be expected,
      to harm the Company or any of its affiliates or its or their reputation or
      which
      would reasonably be expected to lead to unwanted or unfavorable publicity to
      the
      Company or its affiliates.  Nothing herein shall prevent Executive
      from making any truthful statement in connection with any legal proceeding
      or
      investigation by the Company or any governmental authority.

     

    (d)  Governing
      Law; Consent to Jurisdiction.  This Agreement shall be governed by
      and construed (both as to validity and performance) and enforced in accordance
      with the internal laws of the State of New York applicable to agreements made
      and to be performed wholly within such jurisdiction, without regard to the
      principles of conflicts of law or where the parties are located at the time
      a
      dispute arises.  In the event of any controversy or claim arising out
      of or relating to this Agreement or the breach or alleged breach hereof, each
      of
      the parties hereto irrevocably (a) consents to the jurisdiction of any state
      court sitting in the County of New York, State of New York, or federal court
      sitting in the County of New York, State of New York. (b) waives any objection
      which it may have at any time to the laying of venue of any action or proceeding
      brought in any such court and (c) waives any claim that such action or
      proceeding has been brought in an inconvenient forum.

     

    (e)  Injunctive
      Relief.  Notwithstanding anything to the contrary contained
      herein, the Company and any affiliate of the Company (if applicable) shall
      have
      the right to seek injunctive or other equitable relief from a court of competent
      jurisdiction to enforce Section 6 of this Agreement without any obligation
      to
      post a bond.

     

    (f)  Entire
      Agreement.  This Agreement (including the plans referenced in
      Section 3(d) of this Agreement) contain the entire agreement and understanding
      between the parties hereto in respect of Executive’s employment from and after
      the date hereof and supersede, cancel and annul any prior or contemporaneous
      written or oral agreements, understandings, commitments and practices between
      them respecting Executive’s employment from and after the date hereof, including
      all prior employment agreements between the Company 

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    and
      Executive.

     

    (g)  Amendment.  This
      Agreement may be amended only by a writing which makes express reference to
      this
      Agreement as the subject of such amendment and which is signed by Executive
      and,
      on behalf of the Company, by its duly authorized officer.

     

    (h)  Severability.
      If any provision of this Agreement or the application of any such provision
      to
      any party or circumstances shall be determined by any court of competent
      jurisdiction or arbitration panel to be invalid or unenforceable to any extent,
      the remainder of this Agreement, or the application of such provision to such
      person or circumstances other than those to which it is so determined to be
      invalid or unenforceable, shall not be affected thereby, and each provision
      hereof shall be enforced to the fullest extent permitted by law.  If
      any provision of this Agreement, or any part thereof, is held to be invalid
      or
      unenforceable because of the scope or duration of or the area covered by such
      provision, the parties hereto agree that the court or arbitration panel making
      such determination shall reduce the scope, duration and/or area of such
      provision (and shall substitute appropriate provisions for any such invalid
      or
      unenforceable provisions) in order to make such provision enforceable to the
      fullest extent permitted by law and/or shall delete specific words and phrases,
      and such modified provision shall then be enforceable and shall be
      enforced.  The parties hereto recognize that if, in any judicial or
      arbitral proceeding, a court or arbitration panel shall refuse to enforce any
      of
      the separate covenants contained in this Agreement, then that invalid or
      unenforceable covenant contained in this Agreement shall be deemed eliminated
      from these provisions to the extent necessary to permit the remaining separate
      covenants to be enforced.  In the event that any court or arbitration
      panel determines that the time period or the area, or both, are unreasonable
      and
      that any of the covenants is to that extent invalid or unenforceable, the
      parties hereto agree that such covenants will remain in full force and effect,
      first, for the greatest time period, and second, in the greatest geographical
      area that would not render them unenforceable.

     

    (i)  Construction.  The
      headings and captions of this Agreement are provided for convenience only and
      are intended to have no effect in construing or interpreting this
      Agreement.  The language in all parts of this Agreement shall be in
      all cases construed according to its fair meaning and not strictly for or
      against the Company or Executive.  As used herein, the words “day” or
“days” shall mean a calendar day or days.

     

    (j)  Section
      409A Consistency.  Any payments made pursuant to this Agreement
      are intended to comply with Section 409A of the Code, and any ambiguities in
      the
      Agreement shall be resolved so as to comply with the requirements of Section
      409A of the Code.

     

    (k)  Non-waiver.  Neither
      any course of dealing nor any failure or neglect of either party hereto in
      any
      instance to exercise any right, power or privilege hereunder or under law shall
      constitute a waiver of any other right, power or privilege or of the same right,
      power or privilege in any other instance.  All waivers by either party
      hereto must be contained in a written instrument signed by the party to be
      charged and, in the case of the Company, by its duly authorized
      officer.

     

    (l)  Notices.  Any
      notice required or permitted hereunder shall be in writing and shall be
      sufficiently given if personally delivered or if sent by registered or certified
      

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    mail,
      postage prepaid, with return receipt requested,
      addressed:

     

    (i)  in
      the
      case of the Company, to :

     

    
      	
              If
                to the Company:

               

            
	
              Steven
                Madden, Ltd

            
	
              52-16
                Barnett Ave.

            
	
              Long
                Island City, New York 11104

            
	
              Attention:

            	
              Chief
                Executive Officer

            
	
              Telephone
                Number:

            	
              (718)
                446-1800

            
	
              Facsimile
                Number:

            	
              (718)
                446-5999

            

    

    

    
      	
              With
                a copy to:

               

            
	
              James
                A. Grayer, Esq.

            
	
              Kramer
                Levin Naftalis & Frankel LLP

            
	
              1177
                Avenue of the Americas

            
	
              New
                York, NY 10036

            
	
              Telephone
                Number:

            	
              (212)
                715-7616

            
	
              Facsimile
                Number:

            	
              (212)
                715-8050

            

    

    

    (ii)  in
      the
      case of Executive, to Executive’s last known address as reflected in the
      Company’s records, or to such other address as Executive shall designate by
      written notice to the Company.

     

    Any
      notice given hereunder shall be deemed to have been given at the time of receipt
      thereof by the person to whom such notice is given if personally delivered
      or at
      the time of mailing if sent by registered or certified mail.

    

    (m)  Assistance
      in Proceedings, Etc.  Executive shall, without additional
      compensation, during and after the Term, upon reasonable notice, furnish such
      information and proper assistance to the Company as may reasonably be required
      by the Company in connection with any legal or quasi-legal proceeding, including
      any external or internal investigation, involving the Company or any of its
      affiliates.

     

    (n)  Survival.  Cessation
      or termination of Executive’s employment with the Company shall not result in
      termination of this Agreement.  The respective obligations of
      Executive and the Company as provided in Sections 5, 6, 7 and 8 of this
      Agreement shall survive cessation or termination of Executive’s employment
      hereunder.

     

    (o)  Section
      409A of the Code.

     

    (i)  It
      is the
      parties’ intention that this Agreement not result in any tax being imposed under
      Section 409A of the Code and in the case of any ambiguity the Agreement shall
      be
      construed in such manner.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

     

     

    (ii)  Notwithstanding
      the foregoing, the Company makes no representations regarding the tax
      implications of the compensation and benefits to be paid to Executive under
      this
      Agreement, including, without limitation, under Section 409A of the
      Code.  The parties agree that in the event a qualified tax advisor to
      the Company or to Executive (neither party being required to retain such
      advisor) reasonably advises that the terms hereof would result in Executive
      being subject to tax under Section 409A of the Code, Executive and the Company
      shall negotiate in good faith to amend this Agreement to the extent necessary
      to
      prevent the assessment of any such tax, including by delaying the payment dates
      of any amounts hereunder.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

     

     

     

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be duly executed
      on
      its behalf by an individual thereunto duly authorized and Executive has duly
      executed this Agreement, all as of the date and year first written
      above.

     

    
      	
                                                                              STEVEN
                MADDEN, LTD

            
	 	 
	
                                                                              By:

            	
              /s/
                Jamieson A.
                Karson                          
                

            
	 	
              Name:

            	
              Jamieson
                A. Karson

            
	 	
              Title:

            	
              Chairman
                and Chief Executive Officer

            

    

    

    

    
      	
                                                                              /s/
                Jeffrey
                Silverman                                         

            
	
                                                                              Name:

            	
              Jeffrey
                Silverman 

            

    

    
 

     

     

     

     

    16

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