Document:

pfs-ex102to8k_dec12010.htm

EMPLOYMENT AGREEMENT

THIS AGREEMENT (“Agreement”) is by and between the Company (as defined below) and Joseph B. Freeman (the “Executive”).

 

WHEREAS, the Company wishes to employ the Executive and the Executive wishes to accept such employment upon the terms and conditions set forth in this Agreement, for the period beginning on November 29, 2010 (the “Effective Date”) and ending on the date as provided for in Section 3 hereof (the “Employment Period”);

 

NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.           Definitions.  The following terms used in this Agreement shall have the following meanings:

 

(a)           “Base Salary” shall mean the annual compensation (excluding Incentive Compensation as defined in (i) of this Section 1 and other benefits) payable or paid to the Executive pursuant to Section 4(a) of this Agreement.

 

(b)           “Board” means the board of directors of the MidCountry Financial Corp.

 

(c)           “Cause” shall include the following, as determined by a good faith finding by the Board or the Executive’s Supervisor:

 

(i)           Executive has committed any act or omission involving dishonesty or fraud with respect to the Company, its affiliates or subsidiaries, or any of their respective customers, suppliers or other business relationships;

 

(ii)           Any conduct by Executive causing the Company, its affiliates, and/or any of its subsidiaries substantial public disgrace or disrepute;

 

(iii)           Executive’s willful violation of federal or state banking laws or regulations or a final cease-and-desist order;

 

(iv)           Executive’s refusal to perform a duly authorized directive of the Board or the Executive’s Supervisor;

 

(v)         Executive’s breach of fiduciary duty involving personal profit, gross negligence or willful misconduct with respect to the Company, its affiliates or subsidiaries;

 

(vi)           Executive’s incompetence or intentional failure to perform stated duties or incompetence

 

(vii)         the Executive’s willful violation of any law, rule or regulation (other than traffic violations or similar offenses) that could adversely affect the Company,  its subsidiaries or affiliates, or could adversely affect the Executive’s ability to perform the duties required under this Agreement;

 

(viii)           Executive’s willful misconduct or violation of the Company Code of Conduct or policies; or

 

 

 

  

  

  

 

(ix)           Any material breach of any provision of this Agreement that continues for a period of fifteen (15) days after written notice of such material breach is given to Executive by the Company or the Board.

 

(d)           “Change of Control” will occur for purposes of this Agreement if:

 

(i)           any person (or persons acting in concert), partnership, corporation, or other entity (but not including Alfa Mutual Insurance Company or Alfa Mutual Fire Insurance Company or their affiliates, collectively the “Alfa Group”) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act) of securities of the Parent representing more than 24.9% of the combined voting power of the Parent’s then-outstanding securities;

 

(ii)           the Company, or its Parent, is a party to a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of which members of the Board of the Company or the Parent, as applicable in office immediately prior to such transaction or event constitute less than a majority of such Board thereafter;

 

(iii)           any transaction in which the Alfa Group, in the aggregate, consummates a transaction whereby it owns, controls, or holds with the power to vote more than 50.0% of any class of voting securities of the Parent;

 

(iv)           individuals who, at the date hereof, constitute the Board (the “Continuing Directors”) cease for any reason to constitute a majority thereof, provided, however, that any Director who is not in office at the date hereof but whose election by the Board or whose nomination for election by the Parent’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the date hereof or whose election or nomination for election was previously so approved shall be deemed to be a Continuing Director for purposes of this Agreement;

 

(v)           the occurrence of any other event or circumstance that is not covered by (i) through (iv) above which the Board determines affects control of the Company or the Parent and, in order to implement the purposes of this Agreement as set forth above, adopts a resolution that such event or circumstance constitutes a Change in Control for the purposes of this Agreement; or

 

(vi)           notwithstanding the foregoing provisions of the above paragraph, a Change of Control will not be deemed to have occurred if the initiation of any of the events described in paragraph (v) is by or with the concurrence of the Parent (acting by its Continuing Directors), nor shall a Change of Control be deemed to have occurred solely because of: (A) the acquisition of securities of the Parent by an employment benefit plan maintained by the Parent for its employees, or (B) the occurrence of a leveraged buy-out or re-capitalization of the Parent in which the Executive participates as an equity investor so long as the Executive’s existing stock options are converted to equity or replacement options on a basis no less favorable than that generally adopted for other senior executives of the Company or the Parent.

 

(e)           “Company” shall mean Pioneer Services, a division of MidCountry Bank (“MidCountry”) and Pioneer Financial Services, Inc. and its subsidiaries (“Pioneer”) collectively except in those instances where it is stated otherwise or the context dictates that it should be either MidCountry or Pioneer, individually.  Determination as to whether a particular instance should be MidCountry or Pioneer shall be made by the Board.

 

(f)           "Disability" shall mean the inability of the Executive to perform the material aspects of the Executive’s duties by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than ninety (90) consecutive days, as determined by an independent physician selected with the approval of the Company and the Executive.

 

 

  

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(g)           “Executive’s Supervisor” shall mean the Chief Executive Officer of Pioneer Services, a division of MidCountry Bank.

 

(h)           “Executive’s Total Compensation” shall mean the annual average of the Executive’s Base Salary plus Incentive Compensation paid to the Executive during the immediately preceding three (3) years, or if employed for less than three (3) years, during the number of years employed.

 

(i)           “Good Reason” shall mean:

 

(i)           any material breach of this Agreement by the Company (including the failure of the Company to comply with Sections 2, 3, 4, 5 or 6 of this Agreement);

 

(ii)           any reduction in Executive’s Base Salary as provided in this Agreement as the same may be increased from time to time; provided, however, a reduction in Executive’s Base Salary shall not constitute a Good Reason if such reduction is made in connection with  salary reductions for similar groups of employees due to challenging economic conditions.

 

(iii)           the Company’s requiring the Executive to be based anywhere other than within 50 miles of (i) the Executive’s office as specified in Section 3(c) and (ii) the Executive’s principal residence (unless such relocation results in Executive being based fewer than 50 miles from the Executive’s home residence) without the consent of Executive, except for requirements of temporary travel on the Company’s business;

 

(iv)           any material and adverse change in the status, responsibilities or prerequisites of the Executive;

 

(v)           the failure of the Company to assign this Agreement to a successor in interest or the failure of the successor in interest to explicitly assume and agree to be bound by this Agreement.

 

(j)           “Incentive Compensation” shall mean that compensation payable or paid to the Executive pursuant to Section 4(b) of this Agreement.

 

(k)           “Restricted Period” shall mean the period commencing on the Effective Date and ending on the second anniversary of the Termination Date.

 

(l)           “Termination Date” shall mean the date the Employment Period is terminated.

 

(m)           “Severance Amount” shall have the meaning provided in Section 7(i) of this Agreement.

 

2.           Position.  The Company agrees to employ the Executive, and the Executive agrees to accept such employment, as President and Chief Operating Officer of Pioneer and MidCountry for the period stated in Section 3(a) hereof and upon the other terms and conditions herein provided.  The Executive agrees to perform faithfully such services as are reasonably consistent with the Executive’s positions and shall from time to time be assigned to the Executive by the Board or the Executive’s Supervisor in a trustworthy and businesslike manner for the purpose of advancing the interests of the Company.  At all times, the Executive shall manage and conduct the business of the Company in accordance with the policies established by the Board, and in compliance with applicable regulations promulgated by any regulatory agency having authority over the Company.  Responsibility for the supervision of the Executive shall rest with the Executive’s Supervisor, who shall review the Executive’s performance at least annually.  The Board or the Executive’s Supervisor shall also have the authority to terminate the Executive, subject to the provisions of this Agreement.

 

 

  

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3.           Term and Duties.

 

(a)           Term of Employment. This Agreement and the period of the Executive’s employment under this Agreement shall be deemed to have commenced as of the Effective Date and shall continue for a period of twelve (12) full calendar months thereafter, unless earlier terminated pursuant to this Agreement or unless the Executive dies or becomes Disabled before the end of such period, in which case the period of employment shall be deemed to continue until the end of the month of such death or Disability. After the initial term of this agreement and prior to each anniversary of the Effective Date, this Agreement and the Executive’s term of employment shall be reviewed by the Board.  The Board has the authority to extend this Agreement for an additional twelve (12) month period, unless the Executive on the one hand, or the Company on the other hand, shall give written notice to the other, at least 90 days prior to the applicable anniversary of the Effective Date, that the Executive’s term of employment hereunder shall not be extended, which notice may be waived by the Executive or the Company.  Notwithstanding the foregoing, the Company and the Executive agree that the Executive is an “at will” employee, subject only to the contractual rights upon termination set forth herein.

 

(b)           Performance of Duties.  During the Employment Period, except for periods of illness, disability, reasonable vacation periods (which shall be not less than four (4) weeks per year), and reasonable leaves of absence, the Executive shall devote his or her best efforts and substantially all of his or her business time, attention, skill, and efforts to the faithful performance of his or her duties hereunder.  Notwithstanding the foregoing duties, the Executive shall be permitted to engage in activities that are not inconsistent with or otherwise interfere with the Executive’s duties under this Agreement or that would result in a breach by the Executive of his or her obligations hereunder, including activities in connection with personal investments, community affairs and service on boards, where such service is not otherwise impermissible or does not constitute a conflict of interest.

 

(c)           Office of the Executive.  The office of the Executive shall be located at the Company’s corporate offices or one of its affiliates or subsidiaries in Kansas City, Missouri or as agreed upon by the Executive and the Executive’s Supervisor.

 

4.           Compensation.

 

(a)           Salary.  Subject to the provisions of Sections 6 and 7 of this Agreement, the Company shall pay the Executive an initial Base Salary of $186,996.47. Such initial Base Salary, or any increased Base Salary, shall be payable in substantially equal installments in accordance with the Company’s normal pay practices, but not less frequently than monthly.  The Executive’s Base Salary shall be reviewed and approved at least annually by the Executive’s Supervisor.

 

(b)           Incentive Compensation.  During the term of this Agreement and in addition to the Executive’s Base Salary, the Executive shall be entitled to such additional annual Incentive Compensation as may be awarded and payable annually from time to time, in its discretion, by the Board or its Compensation Committee (the “Compensation Committee”), and such Incentive Compensation may be up to seventy-five (75) percent of the Executive’s Base Salary.  The Executive’s Incentive Compensation shall be reviewed and approved at least annually by the Board or the Compensation Committee.  The Executive shall only be eligible to receive Incentive Compensation at the end of a fiscal year if the Executive is employed by the Company at the end of the fiscal year.

 

(c)           Non-qualified Deferred Compensation Plan.  The Executive may defer all or part of his or her annual Incentive Compensation payment in accordance with the Parent Non-Qualified Deferred Compensation Plan.

 

 

  

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(d)           Reimbursement of Expenses.  The Company will reimburse the Executive for all reasonable travel and other expenses incurred by the Executive in connection with the performance of the Executive’s obligations and duties that are performed in compliance with the terms of this Agreement.  The Executive shall comply with any limitations and reporting requirements with respect to expenses as may be provided in the applicable policies of the Company.

 

(e)           Automobile.  The Company shall pay the Executive a monthly automobile allowance at the applicable rate as outlined in the Company Auto Allowance Policy and approved by the Executive’s Supervisor.

 

5.           Participation in Benefit Plans.

 

(a)           Incentive, Savings, and Retirement Plans.  During the term of this Agreement, and subject to the provisions of such plans, the Executive shall be entitled to participate in all incentive, stock option or warrant, savings, and retirement plans, pension or profit-sharing plans, practices, policies, and programs applicable generally to senior executive officers of the Company or the Parent.

 

(b)           Life Insurance.  During the term of this Agreement, the Parent will provide term life insurance for the Executive in a total amount equal to one million ($1,000,000) dollars. The Executive will receive a three hundred fifty thousand ($350,000) dollar term life insurance policy through the Parent group life insurance provider.  In addition, the Company will pay the premiums for an individual term life insurance policy in the amount of six hundred fifty thousand ($650,000) dollars on behalf of the Executive, subject to underwriting guidelines by a third party insurance company. The Executive will designate his or her own beneficiary. Executive agrees to perform all reasonable and necessary actions requested of such Executive, by either the Parent or the third party insurance company selected by the Parent, to assist the Parent in obtaining such life insurance policies, including cooperating in any medical or other examination and executing and delivering any applications or other instruments in writing as may be reasonably necessary to obtain and constitute such insurance.

 

(c)           Annual Physical Examination.   The Company will pay up to one thousand ($1,000) dollars annually for out of pocket expenses incurred by the Executive for preventative care above and beyond what is covered for preventative care by the Parent medical plan. Claims should first be submitted through the health insurance provider, if applicable, and the company will reimburse expenses above and beyond the plan coverage amounts, up to a maximum of one thousand ($1,000) dollars per calendar year.

 

(d)           Other Benefits.  The Executive and/or the Executive’s dependents, as the case may be, may be entitled to participate in all compensation or employee benefit plans or programs and receive all benefits and perquisites for which senior executive employees of the Company or the Parent are eligible under any plan or program now existing or later established by the Company or the Parent, including but not limited to, health and welfare benefits and disability benefits.

 

(e)           Amendment or Termination of Benefits. Nothing in this Agreement will preclude the Company from amending or terminating any of the plans or programs applicable to salaried employees or senior executive employees as long as such amendment or termination is applicable to all salaried employees or all senior executive employees, as the case may be.

 

6.           Benefits Payable Upon Disability.

 

(a)           Disability Benefits.  In the event of the Disability of the Executive, the Company shall continue to pay the Executive one hundred percent (100%) of the Executive’s then current Base Salary pursuant to Section 4(a) during the first twelve (12) months of a continuous period of Disability.  It is provided, however, that in the event the Executive is disabled for a continuous period exceeding twelve (12) months, the Company may, at its election, terminate this Agreement, in which event, payment of the Executive’s Base Salary shall cease, and the Executive shall be entitled to no further payments, however the Executive will be eligible to apply for disability benefits under the Parent’s group plan.

 

 

  

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(b)           Disability Benefit Offset.  Any amounts payable under Section 6(a) hereof shall be reduced by any amounts paid to the Executive under any other disability program or policy of insurance maintained by the Parent.

 

7.           Severance.

 

(a)           Termination by Company without Cause/No Change of Control.  Subject to the requirements of paragraphs 7(f) and (h) below, if the Employment Period is terminated by the Company without Cause and not within one (1) year immediately following a Change of Control or within six (6) months immediately prior to such Change of Control, the Executive shall be entitled to receive severance pay equal to the greater of either (i) the Executive’s Total Compensation for a twelve (12) month period; or (ii) the Executive’s Total Compensation prorated for the remaining term of employment under this Agreement, paid to the Executive, or in the event of the Executive’s subsequent death, to the Executive’s designated beneficiary or beneficiaries, or to the Executive’s estate, as the case may be, pro rata over the twelve (12) month period from and after the Termination Date in accordance with the Company’s general payroll practices (it being agreed that the Company may keep Executive on its payroll solely for purposes of satisfying its obligations pursuant to this paragraph 7(a) until expiration of such 12-month period).

 

(b)           Termination by Company without Cause/Change of Control.  Subject to the requirements of paragraph 7(f) and (h) below, if the Employment Period is terminated by the Company without Cause and within one (1) year immediately following a Change of Control or within six (6) months immediately prior to such Change of Control, then Executive shall be entitled to receive severance pay equal to one times the Executive’s Total Compensation paid in a lump sum to the Executive, or in the event of the Executive’s subsequent death, to the Executive’s designated beneficiary or beneficiaries, or to the Executive’s estate, as the case may be, within 60 days following the Termination Date.  Notwithstanding the foregoing provisions of the above paragraph, if there is a Change of Control and the Executive’s employment with the Company is not terminated by the Company, the Executive will not be entitled to any severance payments.

 

(c)           Termination by Executive for Good Reason.  Subject to the requirements of paragraphs 7(f) and (h) below, if the Executive terminates his or her employment under this Agreement for Good Reason, then the Company shall pay to the Executive a severance payment equal to the greater of either (i) the Executive’s Total Compensation for a twelve (12) month period; or (ii) the Executive’s Total Compensation prorated for the remaining term of employment under this Agreement, paid to the Executive, or in the event of the Executive’s subsequent death, to the Executive’s designated beneficiary or beneficiaries, or to the Executive’s estate, as the case may be, pro rata over the twelve (12) month period from and after the Termination Date in accordance with the Company’s general payroll practices (it being agreed that the Company may keep Executive on its payroll solely for purposes of satisfying its obligations pursuant to this paragraph 7(c) until expiration of such 12-month period).

 

(d)           Other Termination.  In the event the Employment Period is terminated (i) by the Company for Cause or by Executive without Good Reason, or (ii) due to the death or Disability of Executive, Executive shall not be entitled to any severance payments, and all of Executive’s benefits shall cease to be effective immediately as of the Termination Date (except as required by law or as otherwise set forth herein).  In the event that the Executive’s employment is terminated pursuant to paragraphs 7 (a) (b) or (c) above, then the Company shall pay the Executive an additional amount equal to (i) the Executive’s cost, not including dependents, of COBRA health continuation coverage for up to six months; or (ii) if the Executive is not a participant in the Parent’s health plan, the cost of the Executive’s coverage, not including dependents, in the plan in which the Executive  is a participant, for up to six months.

 

(e)           Other Benefits.  Except: (i) as required by law, (ii) as specifically provided for in this Section 7, (iii) for the payment of earned but unpaid Base Salary through the Termination Date, (iv) for the payment of any earned but unpaid Incentive Compensation, and (v) for the payment of any accrued and unused vacation pay up to a maximum of 160 hours, the Company’s obligation to make any payments or provide any other benefits hereunder shall terminate automatically as of the Termination Date.

 

 

  

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(f)           Termination of Severance.  If Executive breaches any of the provisions of Sections 8, 9 and 10 hereof, the Company shall no longer be obligated to make any payments pursuant to this Section 7.

 

(g)           Reversal of Determination.  If matters that would have formed the basis for termination for Cause during the Employment Period become known to the Company at any time during the one (1) year period following the Termination Date, then the Company may, by delivery of written notice to Executive, treat such termination as being for Cause, in which case, Executive shall be entitled to receive only such amounts specified in Section 7(d).  Executive may initiate an arbitration proceeding pursuant to Section 23 challenging whether grounds for termination for Cause would have existed during the Employment Period.  If the arbitrator determines grounds did exist, then any amounts remitted to Executive in excess of the amounts specified in Section 7(d) prior to the date the Board or the Executive’s Supervisor has actual knowledge of the matters constituting Cause shall be repaid to the Company by Executive within thirty (30) business days after written demand thereof by the Company.

 

(h)           Requirement of Release in Exchange for Severance.  The Company’s obligations, and Executive’s rights, regarding severance under this Section 7 shall be subject to the execution and delivery by Executive and the Company of a complete mutual release in favor of Executive, the Company, their respective Affiliates, and their respective officers, directors, employees, principals and attorneys, in form and substance satisfactory to the Executive and the Company.  The Company shall provide the release described in the preceding sentence (the “Release”) to the Executive within ten (10) Business Days after the Executive’s separation from service.  To the extent any portion of the severance payments described in Section 7 that are payable in accordance with the Company’s general payroll practices are subject to Internal Revenue Code Section 409A (“Section 409A”), such payments (or portions thereof) shall commence sixty (60) days after the Executive’s separation from service and continue for a twelve (12) month period, subject to the execution and delivery of the Release.  Any payment that would otherwise be payable on a date prior to the date on which the Release is executed by Executive and delivered to the Company shall be forfeited to the extent required for compliance with Section 409A.

 

(i)           Limits on Payments.  In no event shall the payments described in this Section 7 exceed the amount permitted to be deducted by the Company under Section 280G of the Internal Revenue Code, as amended, or any successor thereof and the regulations and rulings thereunder (“Section 280G”).  Therefore, with respect to the payment(s) described in this Section 7 (the “Severance Amount”) only, if the aggregate present value (determined as of the date of the Change of Control in accordance with the provisions of Section 280G,) of the Severance Amount would result in a parachute payment (as determined under Section 280G), then the Severance Amount shall not be greater than an amount equal to 2.99 multiplied by the Executive’s base amount (as determined under Section 280G) for the base period (as determined under Section 280G).  In the event the Severance Amount is required to be reduced pursuant to this Section 7(i), the Executive shall be entitled to determine which portions of the Severance Amount are to be reduced so that the Severance Amount satisfies the limit set forth in the preceding sentence.  Should the Executive be assessed any excise tax as a result of any payment of the Severance Amount that is not deemed a parachute payment under Section 280G, the Company shall pay all such assessed excise taxes, but shall pay no other taxes assessed against the Executive as a result of the payment of the Severance Amount.

 

 

  

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8.           Confidential Information.

 

(a)           The Executive acknowledges that the information, observations and data (including trade secrets) obtained by him or her while employed by, or associated with, the Company concerning the business or affairs of the Company and/or its subsidiaries or affiliates  (collectively “Confidential Information”) are valuable, special and unique assets of the Company.  Confidential Information will be interpreted as broadly as possible to include all confidential information of any sort (whether merely remembered or embodied in a tangible or intangible form) that is related to the Company’s and its subsidiaries’ and affiliates’ current or potential businesses.  Confidential Information includes, without specific limitation, the confidential information, observations and data obtained by the Executive during the course of his or her employment concerning the business and affairs of the Company and its affiliates and information concerning acquisition opportunities in or reasonably related to the Company’s and its affiliates businesses or industries of which the Executive becomes aware during the Employment Period.  Therefore, the Executive agrees that he or she shall not, during his or her employment with the Company, or during the Restricted Period, disclose to any unauthorized person or use for any person’s account (other than the Company’s account) such Confidential Information without the Company’s prior written consent, unless and to the extent that any Confidential Information (i) becomes known to and available for use by the public other than as a result of the Executive’s acts or omissions to act; (ii) was or becomes available to the Executive on a non-confidential basis from a third party, that, to the Executive’s knowledge, was not and is not in violation of any obligation of confidentiality owed to the Company or otherwise prohibited from transmitting the information to the Executive by a contractual, legal or fiduciary duty, (iii) was known by the Executive prior to employment with the Company, or (iv) is required to be disclosed pursuant to any applicable law or court order (provided that the Executive shall give prompt advance written notice of such requirement to the Company to enable the Company to seek an appropriate protective order or confidential treatment).  Nothing in this Section 8(a) is intended to prevent the Executive from using or disclosing Confidential Information in the performance of the Executive’s duties on behalf of the Company.  The Executive agrees to deliver to the Company at the termination of the Employment Period, or at any time the Company may reasonably request in writing within twelve (12) months from the Termination Date, all memoranda, notes, plans, records, reports, studies and other documents, whether in paper or electronic form (and copies thereof), relating to the business of the Company (including, without limitation, all Confidential Information or Work Product (as defined below) that he or she may then possess or have under his or her control.  The Executive agrees to give the Company reasonable access to and to allow the Company to inspect any computer or electronic device (including the right to copy Company information contained therein) that the Company reasonably believes contains Confidential Information, regardless of whether such computer or device is owned by the Company.  However, the Executive may require that any access or inspection by the Company with respect to a computer or electronic device that is not owned by the Company be performed by a mutually agreed to independent third party who agrees in writing, in a form reasonably acceptable to the Company and the Executive, to not disclose (whether to the Company or otherwise) or use any confidential information of the Executive.

 

(b)           The Executive shall not use or disclose any confidential information or trade secrets, if any, of any former employers or any other person to whom the Executive has an obligation of confidentiality, and shall not bring onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom the Executive has an obligation of confidentiality unless consented to in writing by the former employer or person.  The Executive shall use in the performance of his duties only information that is (i) generally known and used by persons with training and experience comparable to the Executive’s and that is (ii) common knowledge in the industry or (iii) is otherwise legally in the public domain, (iv) otherwise provided or developed by the Company, (v) otherwise usable by the Executive without violation or breach of any law, rule, regulation or any agreement with any other person, or (vi) in the case of materials, property or information belonging to any former employer or other person to whom the Executive has an obligation of confidentiality, approved for such use in writing by such former employer or person.  If at any time during his or her employment with the Company, the Executive believes he or she is being asked to engage in work that will, or will be likely to, jeopardize any confidentiality or other obligations the Executive may have to former employers, the Executive shall immediately advise the Executive’s Supervisor so that the Executive’s duties can be modified appropriately.

 

 

  

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9.           Company’s Ownership of Intellectual Property.  The Executive hereby assigns to the Company all right, title, and interest to all patents and patent applications, all inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (in each case whether or not patentable), all copyrights and copyrightable works, all trade secrets, confidential information and know-how, and all other intellectual property rights that (a) are conceived, reduced to practice, developed or made by the Executive while employed by the Company and (b) either that (i) relate to the Company’s actual or anticipated business, research and development or existing or future products or services, or (ii) are conceived, reduced to practice, developed or made using any of the equipment, supplies, facilities, assets or resources of the Company (including, but not limited to, any intellectual property rights) (collectively “Work Product”).  The Executive shall promptly disclose such Work Product to the Company and perform, at the expense of the Company, all actions reasonably requested by the Company  (whether during or after the Employment Period) to establish and confirm the Company’s ownership (including, without limitation, the execution of assignments, consents, powers of attorney, applications and other instruments reasonably requested by the Company).

 

10.           Non-Solicitation.  During the Restricted Period, the Executive shall not:  (i) induce or attempt to induce any employee of the Company to leave the employ of the Company or in any way interfere with the relationship between the Company and any employee thereof (other than through general advertisements for employment not specifically directed at employees of the Company), (ii) solicit to hire (other than through general advertisements for employment not specifically directed at employees of the Company) or hire any person who was an employee of the Company at any time during the six (6) month period prior to the Termination Date or (iii) induce or attempt to induce any person the Executive knows is a customer, developer, client, member, supplier, licensee, licensor, franchisee or other business relation of the Company to cease doing business with the Company, or in any way interfere with the relationship between any such customer, developer, client, member, supplier, licensee, licensor, franchisee or business relation of the Company (including, without limitation, making any negative statements or communications about the Company or any of its respective officers, directors, products or services).

 

11.           Enforcement.  If at the time of enforcement of any of Sections 8, 9, or 10, a court of competent jurisdiction or an arbitrator shall hold that the duration, scope, or area restrictions stated therein are unreasonable under circumstances then existing, the parties hereto agree that the maximum duration, scope, or area reasonable under such circumstances shall be substituted for the stated duration, scope, or area and that the court or arbitrator shall be allowed to revise the restrictions contained herein to cover the maximum period, scope, and area permitted by law.  The Executive expressly acknowledges and agrees that the restrictions contained herein are reasonable in terms of duration, scope, and area restrictions and are necessary to protect the Confidential Information and the goodwill of the businesses of the Company, and the Executive agrees not to challenge the validity or enforceability of the restrictions contained herein.  The parties hereto agree that money damages would not be an adequate remedy for any breach of this Agreement.  Therefore, in the event of a breach or threatened breach of this Agreement, the Company or their respective successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security).  In addition, in the event of a breach or violation by the Executive of any of Sections 8, 9, or 10, the Restricted Period shall be tolled until such breach or violation has been duly cured.  The covenants contained in Sections 8, 9, and 10 are independent of the other obligations under this Agreement.  The Company’s breach of any term of this Agreement or any other agreement with the Executive shall not have any effect on any of the Executive’s obligations hereunder.

 

12.           Executive’s Representations.  The Executive hereby represents and warrants to the Company that: (i) the execution, delivery, and performance of this Agreement by the Executive do not and shall not conflict with, breach, violate, or cause a default under any contract, agreement, instrument, order, judgment, or decree to which the Executive is a party or by which he is bound, (ii) the Executive is not a party to or bound by any employment agreement, non-compete agreement, non-solicitation agreement or confidentiality agreement with any other person, (iii) the Executive shall not use any confidential information or trade secrets of any third party in connection with the performance of his duties hereunder except as permitted in writing by the Company, and (iv) this Agreement constitutes the valid and binding obligation of the Executive, enforceable against the Executive in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, or other similar laws of general application or by general principles of equity.  The Executive hereby acknowledges and represents that he or she has consulted with independent legal counsel regarding his rights and obligations under this Agreement and that the Executive fully understands the terms and conditions contained herein.

 

 

  

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13.           Attorneys’ Fees.  In the event any party hereto is required to engage in legal action against any other party hereto, either as plaintiff or defendant, in order to enforce or defend any of its or the Executive’s rights under this Agreement, and such action results in a final judgment in favor of one or more parties, then the party or parties against whom said final judgment is obtained shall reimburse the prevailing party or parties for all legal fees and expenses incurred by the prevailing party or parties in asserting or defending its or the Executive’s rights hereunder.

 

14.           Income Tax Withholding.  The Company may withhold from any benefits payable under this Agreement all federal, state, city, or other taxes as shall be required pursuant to any law or governmental regulation or ruling.

 

15.           Entire Agreement.  This Agreement and any Exhibits hereto contain the entire understanding between the parties hereto and supersedes any prior employment agreement and any contemporaneous oral agreement or understanding by, between, or among the Company and the Executive.

 

16.           General Provisions.

 

(a)           Nonassignability.  Neither this Agreement nor any right or interest hereunder shall be assignable by the Executive, the Executive’s beneficiaries or legal representatives, without the prior written consent of the Company; provided, however, that nothing in this Section 11(a) shall preclude (i) the Executive from designating a beneficiary to receive any benefits payable hereunder upon the Executive’s death, or (ii) the executors, administrators, or other legal representatives of the Executive or the Executive’s estate from assigning any rights hereunder to the person or persons entitled thereto.  The Company may not assign this Agreement without the consent of the Executive.

 

(b)           Binding Agreement.  This Agreement shall be binding upon, and inure to the benefit of, the Company and the Executive and their respective heirs, successors, assigns, and legal representatives.

 

17.           Modification and Waiver.

 

(a)           Amendment of Agreement.  This Agreement may not be modified or amended except by an instrument in writing, signed by the parties hereto, and that specifically refers to this Agreement.

 

(b)           Waiver.  No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.  No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

 

18.           Severability.  If for any reason any provision of this Agreement is held invalid, such invalidity shall not affect any other provision of this Agreement not held invalid, and each such other provision shall to the full extent consistent with law continue in full force and effect.  If any provision of this Agreement shall be held invalid in part, such invalidity shall in no way affect the rest of such provision not held so invalid, and the rest of such provision, together with all other provisions of this Agreement, shall to the full extent consistent with law continue in full force and effect.

 

 

  

10

  

 

19.           Headings.  The headings of paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.

 

20.           Governing Law.  This Agreement has been executed and delivered in the State of Missouri, and its validity, interpretation, performance, and enforcement shall be governed by the laws of said State.

 

21.           Notices.  All notices, requests, demands, and other communications provided for by this Agreement shall be in writing and shall be sufficiently given if and when mailed in the United States by registered or certified mail, or personally delivered, to the party entitled thereto at the address stated below or to such changed address as the addressee may have given by a similar notice:

 

	
To the Company:

	
MidCountry Financial Corp.

P. O. Box 4164

Macon, Georgia 31208

Attention:  President and Chief Executive Officer

 

	
To the Executive:

	
Joseph B. Freeman

4916 W. 138th Street

Leawood, KS 66224

22.           Counterparts.  This Agreement may be executed in one or more counterparts (including by means of facsimile or pdf signature pages), all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the parties and delivered to the other party.

 

23.           Arbitration.  Except for suits or actions seeking injunctive relief or specific performance, any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Kansas City, Missouri (or elsewhere if the parties agree) before a single arbitrator and administered by an arbitration association mutually agreeable to the Company and the Executive (or, if no mutual agreement can be reached, by the American Arbitration Association) (the “Arbitration Association”) in accordance with its commercial arbitration rules.  Each party agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other forum.  Each of the parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that might be required of any other party with respect thereto.  Any party may make service on any other party by sending or delivering a copy of the process to the party to be served at the address and in the manner provided for the giving of notices in Section 21 above.  Nothing in this Section 23, however, shall affect the right of any party to serve legal process in any other manner permitted by law or at equity.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The charges, expenses and fees of the arbitrator(s) shall be borne equally by the parties to the dispute; provided, however, each party shall pay the cost of his or her own attorney’s fees.

 

THE EXECUTIVE UNDERSTANDS AND ACKNOWLEDGES THAT, BY AGREEING TO BINDING ARBITRATION, HE OR SHE WAIVES AND THEREBY ELIMINATES THE RIGHT TO SUBMIT THE DISPUTE FOR DETERMINATION BY A COURT AND THEREBY ALSO WAIVES THE RIGHT TO A JURY TRIAL.  THE EXECUTIVE ACKNOWLEDGES THAT HE OR SHE HAS BEEN INFORMED THAT THE GROUNDS FOR APPEAL OF AN ARBITRATION AWARD ARE VERY LIMITED COMPARED TO A COURT JUDGMENT OR JURY VERDICT.  CONSEQUENTLY, THE EXECUTIVE HAS CAREFULLY CONSIDERED THIS PROVISION AND HAS HAD THE OPPORTUNITY TO CONSULT WITH INDEPENDENT COUNSEL.

 

 

  

11

  

 

24.           Waiver Of Jury Trial.  AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

 

25.           Compliance with Code Section 409A.  To the extent applicable, the parties hereto intend that this Agreement shall comply with Section 409A.  The Agreement shall at all times be interpreted and construed in a manner to comply with Section 409A (including compliance with any applicable exemptions from Section 409A).  Further, in the event that the Agreement shall be deemed not to comply with Section 409A, then neither the Company, the Board, nor its or their designees or agents shall be liable to the Executive or any other person for actions, decisions or determinations made in good faith.

 

Without limiting the effect of the foregoing, the following provisions shall apply notwithstanding any other provision in the Agreement to the contrary:

 

(a)           Any cash incentive compensation due under this Agreement (including but not limited to any incentive compensation payable pursuant to Section 4(b) herein), shall be made no later than the later of (i) March 15th of the year following the end of the Executive's first taxable year in which the amount is no longer subject to a substantial risk of forfeiture, or (ii) March 15th of the year following the end of the Company's first taxable year in which the amount is no longer subject to a substantial risk of forfeiture, or otherwise in accordance with the requirements of the 'short-term deferral' exemption under Section 409A.  Notwithstanding the foregoing, the Company may make payments after the end of the applicable 21⁄2-month period referenced above if (A) it was administratively impractical to make the payment by the end of the applicable 21⁄2-month period, and, as of the date upon which the legally binding right to compensation arose, such impracticality was unforeseeable, or (B) making the payment by the end of the applicable 21⁄2-month period would have jeopardized the ability of the Company to continue as a going concern, and provided further that the payment is made as soon as administratively practicable or as soon as the payment would no longer have such effect.

 

(b)           In the event that the Company (or a successor thereto) has any stock that is publicly traded on an established securities market or otherwise and the Executive is determined to be a “specified employee” (as defined under Section 409A), any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A that is payable or distributable under this Agreement by reason of Executive’s separation from service during the six-month period immediately following Executive’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following Executive’s separation from service (or, if Executive dies during such period, within 30 days after Executive’s death) (in either case, the “Required Delay Period”).  The normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.

 

(d)           All expenses eligible for reimbursements under this Agreement (including but not limited to any reimbursements provided for under Section 4(c), Section 5(c) and Section 7 herein) must be incurred by the Executive during the term of this Agreement (or, with respect to attorneys' fees eligible for reimbursement under Section 8 herein, such fees must be incurred on or before final judgment in any proceeding contemplated by Section 8) to be eligible for reimbursement.  The amount of reimbursable expenses incurred in one taxable year shall not affect the expenses eligible for reimbursement in any other taxable year.  Each category of reimbursement shall be paid as soon as administratively practicable, but in no event shall any such reimbursement be paid after the last day of the Executive's taxable year following the taxable year in which the expense was incurred.  No right to reimbursement is subject to liquidation or exchange for other benefits.

 

 

  

12

  

 

(e)           No Tax Representations.  The Company has made no warranties or representations to the Executive with respect to the tax consequences (including, but not limited to, income tax consequences) related to the transactions contemplated by this Agreement, and the Executive is in no manner relying on the Company or its representatives for an assessment of such tax consequences. The Executive acknowledges that there may be adverse tax consequences related to this Agreement or the payment of consideration pursuant to the Agreement and that the Executive has been advised that he should consult with his own attorney, accountant and/or tax advisor regarding the decision to enter into this Agreement and the consequences thereof. The Executive also acknowledges that the Company has no responsibility to take or refrain from taking any actions in order to achieve a certain tax result for the Executive.

 

[Signature(s) on following page]

 

  

13

  

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed and its seal to be affixed hereunto by its duly authorized officers, and the Executive has signed this Agreement, as of the Effective Date set forth above.

 

	  	
PIONEER FINANCIAL SERVICES, INC. & PIONEER SERVICES, A DIVISION OF MIDCOUNTRY BANK

	  	  	  
	  	  	  
	  	
By:

	  
	  	  	
Thomas H. Holcom, Jr.

	  	  	
Chief Executive Officer

	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	
EXECUTIVE

	  	  
	  	  
	  	
By:

	  
	  	  	
Joseph B. Freeman

	  	  	
President

 

 

 

 

14<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: right; text-indent: 0.5in"><B>Exhibit 10.1</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0.5in">EMPLOYMENT AGREEMENT</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">EMPLOYMENT AGREEMENT
(this &#8220;Employment Agreement&#8221;), dated as of December 1, 2010, by and between STEVEN MADDEN, LTD., a Delaware corporation
with offices at 52-16 Barnett Avenue, Long Island City, N.Y. 11104 (the &#8220;Company&#8221;), and AWADHESH SINHA, an individual
residing at 46 School House Lane, Roslyn Heights, N.Y. 11577 (the &#8220;Executive&#8221;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0.5in">WITNESSETH:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&#9;WHEREAS, the
Executive has served as the Chief Operating Officer of the Company since July 1, 2005; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&#9;WHEREAS, pursuant
to the terms of the Executive&#8217;s existing employment agreement, dated June 2005, as amended, the employment agreement will
expire by its terms on December 31, 2010; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&#9;WHEREAS, the
Company desires to continue to retain the services of the Executive and the Executive desires to continue his employment with the
Company and, as such, the parties have determined to enter into a new employment agreement, setting forth the terms and conditions
upon which the Executive shall continue to be employed by the Company and upon which the Company shall compensate the Executive
from and after January 1, 2011 (the &#8220;Effective Date&#8221;);</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">NOW, THEREFORE,
in consideration of the foregoing premises and the mutual promises, terms, provisions and conditions set forth in this Employment
Agreement, the parties hereby agree as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 1.&#9;<U>Employment</U>.
The Company shall employ the Executive in its business, and the Executive shall continue to work for the Company as its Chief Operating
Officer, subject to the terms and conditions set forth in this Employment Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 2.&#9;<U>Duties</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">2.1&#9;<U>Duties</U>.
The Executive shall perform such duties as may reasonably be assigned to him from time to time by the Chief Executive Officer of
the Company and agrees to abide by all By-laws, policies, practices, procedures and rules of the Company. During the Term (as defined
below), the Executive shall devote all of his business time to the performance of his duties hereunder unless otherwise authorized
by the Board of Directors. Without limiting any policies, practices, procedures or rules of the Company otherwise applicable, the
Executive also agrees that he shall not take personal advantage of any business opportunities which arise during his employment
and which may benefit the Company. All material facts regarding such opportunities must be promptly reported to the Chief Executive
Officer for consideration by the Company.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">2.2&#9;<U>Service
as Officer</U>. During the Term (as defined below), the Executive shall, if elected or appointed, serve as (a) an officer of any
subsidiaries of the Company and/or entities affiliated with the Company in existence or hereafter created or acquired and (b) a
director of any such subsidiaries of the Company and/or entities affiliated with the Company in existence or hereafter created
or acquired, in each case, without any additional compensation for such services.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 3.&#9;<U>Term
of Employment</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">3.1&#9;<U>Term</U>.
The term of the Executive&#8217;s employment, unless sooner terminated in accordance with the provisions set forth herein, shall
be for a period of 3 years commencing on the Effective Date and expiring on December 31, 2013 (the &#8220;Initial Term&#8221;).
Thereafter, unless sooner terminated in accordance with the provisions set forth herein, this Employment Agreement shall be automatically
renewed for successive one-year terms (each, a &#8220;Renewal Term&#8221; and the Initial Term and any such Renewal Term, collectively,
the &#8220;Term&#8221;) on the same terms set forth herein unless at least 120 days prior to the expiration of the Initial Term
or 90 days prior to the expiration of any Renewal Term, either party notifies the other party in writing that he or it is electing
to terminate this Employment Agreement at the expiration of the then-current Term. If the Company notifies the Executive in writing
of its intention not to renew this Employment Agreement (other than for Cause or Total Disability as set forth in Sections 5.3
and 6), the Executive shall receive in cash an amount equal to the then-current Base Salary prorated from the expiration of the
then-current Term through 90 days after the expiration of the then-current Term, payable to the Executive at such regular weekly,
biweekly or semi-monthly time or times as the Company makes payment of its regular payroll in the regular course of business.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">3.2&#9;<U>Expiration</U>.
Upon the expiration of the Term or the earlier termination of the Executive&#8217;s employment with the Company for any reason
whatsoever, the Executive shall be deemed to have resigned as an officer of the Company and of each and every subsidiary thereof
for which he serves as an officer.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 4.&#9;<U>Compensation
and Benefits of Executive</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.1&#9;<U>Base Salary</U>.
In consideration of the Executive&#8217;s services to the Company during the Term, the Company shall pay to the Executive a base
salary at the rate of Five Hundred Seventy-Five Thousand Dollars ($575,000) per annum (&#8220;Base Salary&#8221;), less such deductions
as shall be required to be withheld by applicable laws and regulations. The Base Salary payable to the Executive shall be paid
at such regular weekly or semi-monthly intervals as the Company makes payment of its regular payroll in the regular course of business.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.2&#9;<U>Automobile
Allowance</U>. The Company shall, at the direction of the Executive, either reimburse the Executive for, or directly pay the cost
of, the lease of an automobile during the Term and all usual expenditures in collection therewith (i.e. fuel, insurance, parking,
customary maintenance and repairs) in an amount not to exceed $1,750.00 per month, less such deductions as shall be required to
be withheld by applicable law and regulations. Any reimbursements by the Company pursuant to this Section 4.2 shall be subject
to, and made in accordance with, Section 5.7(b) hereof.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.3&#9;<U>Restricted
Stock Award</U>. The Company shall grant to the Executive, as additional compensation, 35,000 shares of the Company&#8217;s common
stock, $0.0001 per share, subject to certain restrictions (the &#8220;Restricted Common Stock&#8221;), such grant to be made under
the Company&#8217;s 2006 Stock Incentive Plan, as amended, concurrently with the execution of this Employment Agreement. The terms
and conditions of the Restricted Common Stock shall be as set forth in a Restricted Stock Award Agreement entered into by the Company
and the Executive and the shares of Restricted Common Stock shall vest and cease to be subject to restrictions as to 11,666 shares
on the first anniversary of the grant date and as to 11,667 shares on each of the second and third anniversaries of the grant date.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.4&#9;<U>Bonus</U>.
During the Term, the Executive shall be eligible for such additional annual compensation and/or bonus as shall be determined from
time to time by the Board of Directors of the Company or a committee thereof in its sole discretion.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.5&#9;<U>Clawback
of Incentive Compensation</U>. Notwithstanding any provision in this Employment Agreement to the contrary, the Executive agrees
that any bonus or other incentive-based compensation that the Executive receives, or has received, from the Company during the
period of the Executive&#8217;s employment or following the termination of the Executive&#8217;s employment with the Company shall
be subject to recovery or &#8220;clawback&#8221; by the Company and repayment by the Executive, upon demand, if, upon the determination
of the Board of Directors or the Compensation Committee thereof or any applicable governmental or regulatory agency, such bonus
or other incentive-based compensation was based on either (a) materially inaccurate financial statements or any other materially
inaccurate performance metric criteria or (b) financial statements or performance metrics that subsequently are restated or revised
based upon the advice and recommendation of the Company&#8217;s internal auditor or independent auditors, or following the Company&#8217;s
consultation with the Securities and Exchange Commission; provided that no bonus or other incentive-based compensation or award
shall be subject to clawback more than 3 years after being paid or awarded to the Executive unless such repayment demand is made
based upon the fraud or intentional misconduct of the Executive, in which event the demand period shall not be limited to 3 years.
The Executive shall repay such compensation to the Company within 30 calendar days of receipt of written demand for repayment or
as soon thereafter as is practicable. The Executive shall cooperate with the Company to effect any clawback of compensation required
by this Section 4.5 or any applicable law or regulation. The Company shall be entitled to recovery of its reasonable legal fees
and costs incurred in enforcing its clawback rights. The Executive&#8217;s obligations under this Section 4.5 shall survive termination
or expiration of this Employment Agreement and any termination of employment of the Executive.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.6&#9; <U>Expenses;
Expense Reports</U>. The Company shall pay directly or reimburse the Executive for all reasonable and necessary expenses and disbursements
incurred by the Executive for and on behalf of the Company in the performance of his duties during the Term. The Executive shall
submit to the Company, not less frequently than once in each calendar month, reports of such expenses and disbursements in form
normally used by the Company together with associated receipts or other documentation evidencing such expenses. The Company&#8217;s
obligations to pay for or reimburse the Executive for such expenses shall be subject to compliance with this reporting obligation.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.7&#9;<U>Benefits</U>.
The Executive shall be entitled to participate in such pension, profit sharing, group insurance, option, hospitalization and group
health and benefit plans and all other benefits and plans as the Company generally makes available from time to time to its senior
executives. In addition, the Company shall pay term life insurance premiums on behalf of the Executive of approximately Three Thousand
Five Hundred Dollars ($3,500) per year, less such deductions as shall be required to be withheld by applicable laws and regulations.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.8&#9;<U>Vacation</U>.
The Executive shall be entitled to paid vacation of 4 weeks per year during which period all compensation and benefits shall be
paid in full. The Executive shall take his vacation at such times as the Executive and the Company shall determine is mutually
convenient. Unused vacation time shall accrue or, at the option of the Company, may be canceled in exchange for additional compensation
equal to the Executive&#8217;s pro-rata Base Salary equivalent for such unused vacation time.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">4.9&#9;<U>Sick Days
and Personal Days</U>. The Executive shall be entitled to sick and personal days off in accordance with the Company&#8217;s usual
policies as set forth in the Company&#8217;s Employee Handbook as in effect on the Effective Date, as the same may be amended from
time to time.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 5.&#9;<U>Termination</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5.1&#9;<U>Death</U>.
This Employment Agreement shall terminate upon the death of the Executive; provided, however, that the Company shall pay to the
estate of the Executive, within 30 days after his death, Base Salary and all other benefits as set forth herein for the 12-month
period immediately subsequent to the date of the Executive&#8217;s death. Thereafter, the Company&#8217;s obligations hereunder
shall terminate.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5.2&#9;<U>Termination
Due to Total Disability</U>. Subject to the provisions of Section 6.2 hereof, in the event that the Executive is discharged due
to his Total Disability (as defined below), then this Employment Agreement shall be deemed terminated and the Company shall be
released from all obligations to the Executive with respect to this Employment Agreement except obligations accrued prior to such
termination and those obligations provided in Section 6.2 hereof.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5.3&#9;<U>Termination
For Cause; Resignation without Good Reason</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(a)&#9;In the event
that the Executive is discharged for Cause (as defined below) or the Executive resigns without Good Reason (as defined below),
this Employment Agreement shall be deemed terminated and the Company shall be released from all obligations to the Executive with
respect to this Employment Agreement, except for obligations accrued prior to such termination. The foregoing shall not be construed
as a limitation of any rights or remedies available to the Company with regard to any acts or omissions of the Executive that gave
rise to the termination for Cause.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(b)&#9;As used herein,
the term &#8220;Cause&#8221; shall only mean: (i) a deliberate and intentional breach by the Executive of a substantial and material
duty and responsibility under this Employment Agreement that is not remedied, if capable of being remedied, within 30 days after
receipt of written notice by certified mail return receipt requested from the Company specifying such breach; (ii) the Executive&#8217;s
conviction of, or pleading guilty or nolo contendere to, any crime constituting a felony in the jurisdiction involved; (iii) the
conviction of the Executive of any crime involving moral turpitude; or (iv) gross negligence or willful misconduct in the conduct
of the Executive&#8217;s duties or willful refusal or inability to perform such duties as may be delegated to the Executive which
are consistent with the Executive&#8217;s position as in effect just prior to such delegation, and such conduct is not corrected
by the Executive within 30 days following receipt by the Executive of written notice from the Board of Directors or the Chief Executive
Officer, such notice to state with specificity the nature of the breach, failure or refusal, gross negligence or willful misconduct
related to the Executive&#8217;s employment with the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&#9;(c)&#9;As used
herein, the term &#8220;Good Reason&#8221; shall mean the occurrence of any of the following:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(i)&#9;the assignment
to the Executive, without his consent, of any duties inconsistent in any substantial and negative respect with his positions, duties,
responsibilities and status with the Company as contemplated hereunder or diminution of such position, duties and status, if not
remedied by the Company within thirty (30) days after receipt of written notice thereof from the Executive;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(ii)&#9;any removal
of the Executive, without his consent, from any positions or offices the Executive held as contemplated hereunder (except in connection
with the termination of the Executive&#8217;s employment by the Company for Cause or on account of Total Disability pursuant to
the requirements of this Employment Agreement), if not remedied by the Company within thirty (30) days after receipt of written
notice thereof from the Executive;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(iii)&#9;a reduction
by the Company of the Executive&#8217;s Base Salary as in effect as contemplated hereunder, except in connection with the termination
of the Executive&#8217;s employment by the Company;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(iv)&#9;any termination
of the Executive&#8217;s employment by the Company during the Term that is not effected pursuant to the terms and provisions of
this Employment Agreement;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(v)&#9;any material
breach by the Company of the terms of this Employment Agreement, which is not remedied by the Company within thirty (30) days after
receipt of written notice thereof from the Executive;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(vi)&#9;the relocation
of the Executive&#8217;s work location, without the Executive&#8217;s consent, to a place more than seventy five (75) miles from
the Company&#8217;s offices located at 52-16 Barnett Avenue, Long Island City, New York; or</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(vii)&#9; the failure
by any successor to the Company to expressly assume all obligations of the Company under this Employment Agreement, which failure
is not remedied by the Company within thirty (30) days after receipt of written notice thereof from the Executive.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5.4&#9;<U>Termination
other than for Cause or without Good Reason, Death or due to Total Disability</U>. Subject to the terms and conditions of this
Employment Agreement, in the event that the Executive resigns for Good Reason or the Company terminates the employment of the Executive
other than for Cause, then such termination shall be effective 30 days after the Executive&#8217;s receipt of notice of termination
or the Company&#8217;s receipt of notice of resignation and in either event the Executive shall receive, as liquidated damages,
an amount equal to the Executive&#8217;s Base Salary that would have been paid by the Company pursuant to Section 4.1 hereof for
the longer of (i) the remainder of the then-current Term or (ii) 6 months, such amount to be paid to the Executive by the Company
at such regular weekly or semi-monthly intervals as the Company makes payment of its regular payroll in the regular course of business;
provided that, in the event of Executive&#8217;s death such amount shall become payable to the Executive&#8217;s estate based on
the Company&#8217;s regular payroll periods commencing within 90 days following the Executive&#8217;s death; provided, further,
that the Executive shall cease to be entitled to any further payments under this Section 5.4 in the event that he becomes engaged
in other full-time employment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5.5&#9;<U>Termination
upon a Change of Control</U>. (a) If, during the period commencing on the 120th day immediately prior to a Change of Control (as
defined below) and ending on the 90th day immediately after a Change of Control, the Executive&#8217;s employment shall have been
terminated by the Company (other than for death, Total Disability or Cause) or by the Executive for Good Reason, the Executive
shall receive, in cash, within 10 days of the date of such termination or resignation of employment, an amount equal to three (3)
times the total W-2 compensation received by the Executive pursuant to Sections 4.1 and 4.7 of this Employment Agreement for the
preceding 12-month period ending on the last previous December 31, except that, in lieu of the actual Base Salary component received
during such period under Section 4.1 of this Employment Agreement, there shall be substituted the annual Base Salary to which the
Executive was entitled as of the date of such termination or resignation of employment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&#9;In the event
that any payment (or portion thereof) to the Executive under this Section 5.5(a) is determined to constitute an &#8220;excess parachute
payment&#8221; under Sections 280G and 4999 of the Internal Revenue Code of 1986, as amended, the following calculations shall
be made:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: 0in">&#9;(i)&#9;The
after-tax value to the Executive of the payments under this Section 5.5(a) without any reduction; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: 0.5in">(ii) The after-tax
value to the Executive of the payments under this Section 5.5(a) as reduced to the maximum amount (the &#8220;Maximum Amount&#8221;)
which may be paid to the Executive without any portion of the payments constituting an &#8220;excess parachute payment.&#8221;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If after applying
the agreed upon calculations set forth above, it is determined that the after-tax value determined under clause (ii) above is greater
than the after-tax value determined under clause (i) above, the payments to the Executive under Section 5.5(a) shall be reduced
to the Maximum Amount.&#8221;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&#9;(b)&#9;&#8220;Change
of Control&#8221; as used herein, shall mean:</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: 0.5in">(i)&#9;when
any &#8220;person&#8221; as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange
Act&#8221;), and as used in Section 13(d) and 14(d) thereof, including a &#8220;group&#8221; as defined in Section l3(d) of the
Exchange Act, but excluding the Company or any subsidiary or any affiliate or the Company or any employee benefit plan sponsored
or maintained by the Company or any subsidiary of the Company (including any trustee of such plan acting as trustee) becomes the
&#8220;beneficial owner&#8221; (as defined in Rule l3d-3 under the Exchange Act) of securities of the Company representing 30%
or more of the combined voting power of the Company&#8217;s then outstanding securities; or</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)&#9;when,
during any period of 12 consecutive months, the individuals who, at the beginning of such period, constitute the Board of Directors
(the &#8220;Incumbent Directors&#8221;) cease for any reason other than death to constitute at least a majority thereof; provided,
however, that a director who was not a director at the beginning of such 12-month period shall be deemed to have satisfied such
12-month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation of or with the approval
of, at least a majority of the directors who then qualified as Incumbent Directors either actually (because they were directors
at the beginning of such 12-month period) or through the operation of this proviso; or</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)&#9;the
occurrence of a transaction requiring stockholder approval for the acquisition of the Company by an entity other than the Company
or a subsidiary or an affiliate of the Company through purchase of assets, or by merger, or otherwise.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5.6&#9;<U>Release</U>.
Payment of severance hereunder is conditioned on the Executive&#8217;s execution and delivery of a general release in form and
substance as shall be reasonably requested by the Company. The Company shall also execute a similar release in favor of the Executive.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">5.7&#9;<U>Delayed
Payments; Reimbursement of Costs and Expenses</U>. (a) Any amount payable under this Employment Agreement prior to the first date
on which such payment is permitted under Section 409A of the Internal Revenue Code of 1986, as amended, shall instead be paid at
the earliest date on which such payment may be made in compliance with Section 409A.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&#9;(b) With regard
to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section
409A of the Internal Revenue Code of 1986, as amended, (i) the right to reimbursement or in-kind benefits shall not be subject
to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided
during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, not be violated
with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Internal Revenue Code of 1986, as amended,
solely because such expenses are subject to a limit related to the period the arrangement is in effect, and (iii) such payments
shall be made on or before the last day of Executive&#8217;s taxable year following the taxable year in which the expense was incurred.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 6.&#9;<U>Disability</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">6.1&#9;<U>Total
Disability</U>. In the event that after the Executive has failed to have performed his regular and customary duties for a period
of 90 consecutive days or for any 180 days out of any 360-day period and before the Executive has become Rehabilitated (as defined
below), a majority of the members of the Board of Directors of the Company (exclusive of the Executive if the Executive shall then
be a director) may vote to determine that the Executive is mentally or physically incapable or unable to continue to perform such
regular and customary duties of employment and upon the date of written notice to the Executive by certified mail, return receipt
requested, of such majority vote, the Executive shall be deemed to be suffering from a &#8220;Total Disability.&#8221; As used
herein, the term &#8220;Rehabilitated&#8221; shall mean such time as the Executive is able and willing to return to full-time employment
and commences to devote his time and energies to the duties of his position and the affairs of the Company to a reasonable extent
and in a similar manner that he did prior to the disability.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">6.2&#9;<U>Payment
during Disability</U>. In the event that the Executive is unable to perform his duties hereunder by reason of a disability, prior
to the time such disability is deemed a Total Disability in accordance with the provisions of Section 6.1 above, the Company shall
continue to pay the Executive his Base Salary and benefits pursuant to this Employment Agreement during the continuance of any
such disability. Upon a determination of Total Disability pursuant to the provisions of Section 6.1 above, the Company shall pay
to the Executive his Base Salary pursuant to this Employment Agreement for the 12-month period immediately subsequent to the date
of determination of Total Disability.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 7.&#9;<U>Disclosure
of Confidential Information</U>. The Executive recognizes that he will have access to secret and confidential information regarding
the Company including, but not limited to, its customer lists, products, know-how and business plans. The Executive acknowledges
that such information is of great value to the Company, is the sole property of the Company and has been and will be acquired by
him in confidence. In consideration of the obligations undertaken by the Company herein, the Executive agrees to hold all such
information in strict confidence and will not, at any time, during his employment with the Company and thereafter, reveal, divulge
or make known to any person, any information concerning the Company acquired by the Executive during the course of his employment
that is treated as confidential by the Company; provided, that such information is not otherwise in the public domain or information
that the Executive could have and did learn separate and apart from his duties set forth herein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 8.&#9;<U>Covenant
Not to Compete</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">8.1&#9;<U>Covenant
Not to Compete</U>. The Executive recognizes that the services to be performed by him hereunder are special, unique and extraordinary.
The parties acknowledge and agree that it is reasonably necessary for the protection of the Company that the Executive agree and,
accordingly, the Executive does hereby agree that, except as provided in Section 8.4, the Executive shall not, directly or indirectly,
at any time during the Restricted Period (as defined below) within the Restricted Area (as defined below), engage in any Competitive
Business (as defined below), either on his own behalf or as an officer, director, stockholder, partner, principal, trustee, investor,
consultant, associate, employee, owner, agent, creditor. independent contractor, co-venturer of any third party or in any other
relationship or capacity.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">8.2&#9;<U>Applicable
Definitions</U>. For purposes of this Employment Agreement, (i) &#8220;Restricted Period&#8221; shall mean (A) in the event of
a termination of the Executive&#8217;s employment by the Company for Cause or by the resignation of the Executive without Good
Reason, the period of the Executive&#8217;s actual employment hereunder plus 6 months after the date the Executive is no longer
employed by the Company and (B) in the event of a termination of the Executive&#8217;s employment by the Company due to the Executive&#8217;s
Total Disability or without Cause (including termination resulting from a Change of Control) or by the resignation of the Executive
for Good Reason, the period of the Executive&#8217;s actual employment hereunder; (ii) &#8220;Restricted Area&#8221; shall mean
anywhere in the United States; and (iii) &#8220;Competitive Business&#8221; shall mean the design, manufacture, sale, marketing
or distribution of (A) branded or designer footwear, apparel, accessories and other products in the categories of products sold
by, or under license from, the Company or any of its affiliates and (B) other branded products related to fashion or lifestyle.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">8.3&#9;<U>Covenant
Not to Solicit</U>. The Executive hereby agrees that the Executive will not, directly or indirectly, for or on behalf of himself
or any third party, at any time during the Restricted Period (i) solicit any customers of the Company or (ii) solicit, employ or
engage, or cause, encourage or authorize, directly or indirectly, to be employed or engaged, for or on behalf of himself or any
third party, any employee or agent of the Company or any of its subsidiaries.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">8.4&#9;<U>Exception</U>.
This Section 8 shall not be construed to prevent the Executive from owning, directly and indirectly, in the aggregate, an amount
not exceeding one percent (1%) of the issued and outstanding voting securities of any class of any company whose voting capital
stock is traded on a national securities exchange or in the over-the-counter market.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">8.5&#9;<U>Severability</U>.
If any of the restrictions contained in this Section 8 shall be deemed to be unenforceable by reason of the extent, duration or
geographical scope thereof, or otherwise, then the court making such determination shall have the right to reduce such extent,
duration, geographical scope, or other provisions hereof, and in its reduced form this Section 8 shall then be enforceable in the
manner contemplated hereby.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">8.6&#9;<U>Survival</U>.
The provisions of this Section 8 shall survive the termination of the Executive&#8217;s employment as provided hereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 9.&#9;<U>Injunctive
Relief; Remedies</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">9.1&#9;<U>Injunctive
Relief</U>. The Executive acknowledges and agrees that, in the event that the Executive shall violate or threaten to violate any
of the restrictions of Sections 7 or 8 hereof, the Company will be without an adequate remedy at law and, therefore, shall have
the right to seek monetary damages for any past breach and equitable relief including specific performance and temporary or permanent
injunctive or mandatory relief against the Executive and/or any and all persons acting directly or indirectly or under the direction
of the Executive to prevent or restrain any such breach in any court of competent jurisdiction without the necessity of proving
damages or posting any bond or other security, and without prejudice to any other remedies that the Company may have at law or
in equity.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">9.2&#9;<U>Additional
Rights and Remedies</U>. The Executive further agrees that the Company shall have the following additional rights and remedies:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(a)&#9;to recover
all monies and other consideration derived or received by the Executive as the result of any transactions constituting a breach
of any of the provisions of Section 10.1, which the Executive hereby agrees to account for and pay over to the Company; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">(b)&#9;to recover
reasonable attorneys&#8217; fees incurred in any action or proceeding in which it seeks to enforce its rights under Sections 7
or 8.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Each of the rights
and remedies enumerated above shall be independent of the other, and shall be severally enforceable, and all of such rights and
remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 10.&#9;<U>No
Restrictions</U>. The Executive hereby represents that neither the execution of this Employment Agreement nor his performance hereunder
will (i) violate, conflict with or result in a breach of any provision of, or constitute a default (or an event which, with notice
or lapse of time or both, would constitute a default) under the terms, conditions or provisions of any contract, Employment Agreement
or other instrument or obligation to which the Executive is a party, or by which he may be bound, or (ii) violate any order, judgment,
writ, injunction or decree applicable to the Executive. In the event of a breach hereof, in addition to the Company&#8217;s right
to terminate this Employment Agreement, the Executive shall indemnify the Company and hold it harmless from and against any and
all claims, losses, liabilities, costs and expenses (including reasonable attorneys&#8217; fees) incurred or suffered in connection
with or as a result of the Company&#8217;s entering into this Employment Agreement or employing the Executive hereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 11.&#9;<U>Arbitration</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">11.1&#9;<U>Matters
Subject to Arbitration</U>. Except with regard to any other matters that are not a proper subject of arbitration, all disputes
between the parties hereto concerning the performance, breach, construction or interpretation of this Employment Agreement or any
portion thereof, or in any manner arising out of this Employment Agreement or the performance thereof, shall be submitted to binding
arbitration, in accordance with the rules of the American Arbitration Association. The arbitration proceeding shall take place
at a mutually agreeable location in New York County, New York or such other location as agreed to by the parties.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">11.2&#9;<U>Award
Binding</U>. The award rendered by the arbitrator shall be final, binding and conclusive, shall be specifically enforceable, and
judgment may be entered upon it in accordance with applicable law in the appropriate court in the State of New York, with no right
of appeal therefrom.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">11.3&#9;<U>Expenses
of Arbitration</U>. Each party shall pay its or his own expenses of arbitration, and the expenses of the arbitrator and the arbitration
proceeding shall be equally shared.</P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Section 12.&#9;<U>General
Provisions</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.1&#9;<U>Assignment</U>.&#9;This
Employment Agreement, as it relates to the employment of the Executive, is a personal contract and neither this Employment Agreement
nor any right or interest may be assigned by the Executive without the prior written consent of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.2&#9;<U>Entire
Employment Agreement</U>. This Employment Agreement constitutes and embodies the full and complete understanding and Employment
Agreement of the parties with respect to the Executive&#8217;s employment by the Company superseding all prior understanding and
Employment Agreements, whether oral or written, between the Executive and the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.3&#9;<U>Amendments</U>.
This Employment Agreement shall not be amended, modified or changed except by an instrument in writing executed by the party to
be charged. The invalidity of one or more provisions of this Employment Agreement shall not invalidate any other provision of this
Employment Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.4&#9;<U>Binding
Effect</U>. This Employment Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto
and their respective successors, heirs, beneficiaries and permitted assigns.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.5&#9;<U>Headings</U>.
The headings and captions under sections and paragraphs of this Employment Agreement are for convenience of reference only and
do not in any way modify, interpret or construe the intent of the parties or affect any of the provisions of this Employment Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.6&#9;<U>Notices</U>.
All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall
be deemed to have been duly given when delivered by hand or sent by certified or registered mail, return receipt requested and
postage prepaid, overnight mail or courier or telecopier, addressed, if to the Company, to the Company&#8217;s principal offices,
Attn: Chief Executive Officer, and if to the Executive, at the address of the Executive&#8217;s personal residence as maintained
in the Company&#8217;s records, or at such other address as any party shall designate by notice to the other party given in accordance
with this Section 12.6.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.7&#9;<U>Governing
Law</U>. This Employment Agreement shall be governed by and construed in accordance with the laws of the State of New York without
giving effect to such State&#8217;s conflicts of laws provisions and each of the parties hereto irrevocably consents to the jurisdiction
and venue of the federal and state courts located in the State of New York, County of New York.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.8&#9;<U>Counterparts</U>.
This Employment Agreement may be executed in two or more counterparts, each of which shall be deemed and original, but all of which
taken together shall constitute one of the same instrument.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

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<div style="WIDTH: 100%; TEXT-ALIGN: center">
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.9&#9;<U>Waiver
of Breach; Partial Invalidity</U>. The waiver by either party of a breach of any provision of this Employment Agreement shall not
operate or be construed as a waiver of any subsequent breach. If any provision, or part thereof, of this Employment Agreement shall
be held to be invalid or unenforceable, such invalidity or unenforceability shall attach only to such provision and not in any
way affect or render invalid or unenforceable any other provisions of this Employment Agreement, and this Employment Agreement
shall be carried out as if such invalid or unenforceable provision, or part thereof, had been reformed, and any court of competent
jurisdiction or arbitrators, as the case may be, are authorized to so reform such invalid or unenforceable provision, or part thereof,
so that it would be valid, legal and enforceable to the fullest extent permitted by applicable law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.10&#9;<U>Facsimile
or Electronic Mail Signatures</U>. Signatures hereon which are transmitted via facsimile or electronic mail shall be deemed original
signatures.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.11&#9;<U>Representation
by Counsel; Interpretation</U>. The Executive acknowledges that the Executive has been represented by counsel, or has been afforded
the opportunity to be represented by counsel, in connection with this Employment Agreement. Accordingly, any rule or law or any
legal decision that would require the interpretation of any claimed ambiguities in this Employment Agreement against the party
that drafted it has no application and is expressly waived by the Executive. The provisions of this Employment Agreement shall
be interpreted in a reasonable manner to give effect to the intent of the parties hereto.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">12.12&#9;<U>Construction</U>.
Whenever the word &#8220;including&#8221; or any variant thereof is used herein, it shall mean &#8220;including, without limitation.&#8221;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0.5in">[Signature page follows]</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160; </font></div>

<div style="WIDTH: 100%; TEXT-ALIGN: center">
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties hereto have executed this Employment Agreement as of the date first set forth above.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&#9;STEVEN MADDEN,
LTD.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#9;By<U> /s/ Edward R.
Rosenfeld&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#9; Name: Edward R. Rosenfeld</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#9; Title: Chief Executive
Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#9;EXECUTIVE</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#9;<U>/s/ Awadhesh Sinha&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#9;Awadhesh Sinha</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

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