Exhibit 10.3
COMMISSION AGREEMENT
This Employment Agreement dated as of March 8th, 2004 (the
"Agreement"), by and between the Steve Madden Mens Wholesale division of Steven
Madden, Ltd., a Delaware corporation (the "Company") located at 52-16 Barnett
Avenue, Long Island City, NY 11104 and Hev Sales Inc. ("Hev") located at 232
Northwood Court, Jericho, NY 11753.
WITNESSETH:
Whereas Hev and the Company desire to enter into this Agreement.
Now, Therefore, in consideration of the mutual covenants contained
herein, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto agree as follows:
Effective as of the March 8th, 2004, this Original Agreement is hereby
as follows:
Title: Sales Organization for Steve Madden Mens Wholesale
division of Steven Madden, Unionbay and Adesso Madden (Private
Label Company) during the term (as defined below)
Term: from March 8th, 2004 thru March 31st, 2007
Commission on the following sales by Hev Sales, Inc.:
1. Net sales of Madden Mens
$0-$35 million net sales commission rate of .75%
$35 million net sales and greater commission rate
of 2%
2. Net sales of Unionbay or Other Men's Mid-Tier brand
All net sales commission rate of 1.25%
3. Private label direct from factory
All net sales: - commission rate of 1.25%
Biweekly guaranteed commission payable to Hev Sales, Inc. in the amount
of $17,308.00 (Seventeen thousand, three hundred and eight dollars) against
commission earned on sales in accordance with the provisions recited in #1, 2
and 3 above. Annual guarantee commission on $450,000 (Four hundred fifty
thousand dollars). Commissions earned on the first sales generating commission
of $150,000 shall not be earned commission to Hev.
Start-up Fee: The Corporation shall pay to Hev Sales, Inc., a
one-time start-up fee equal to One Hundred Fifty Thousand
Dollars ($150,000.00) which shall be payable on March 8th,
2004.
Covenant Not to Compete: Hev recognizes that the service to be
performed by it hereunder is special and unique. In
consideration of the compensation granted herein, Hev agrees
that, in the event it either terminates this agreement of its
own accord (without good cause) or it is terminated by the
Company for cause prior to the expiration of this agreement,
for a period of 12 months following such termination, Hev
shall not engage in or accept employment with any competitive
business for its special and unique services.
If Hev or Andrew Shames terminates its relationship with the Company
prior to the expiration of the term, Hev agrees to forfeit and surrender any
unpaid compensation without further liability to the Company.
ACCEPTED & AGREED BY:
/s/ ANDREW SHAMES
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ANDREW SHAMES
President
Hev Sales, Inc.
/s/ JAMIESON A. KARSON
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JAMIESON A. KARSON
CHIEF EXECUTIVE OFFICER
STEVEN MADDEN, LTD.
/s/ ARVIND DHARIA
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ARVIND DHARIA
CHIEF FINANCIAL OFFICER
STEVEN MADDEN, LTD.