EMPLOYMENT AGREEMENT

                             --------------------



                                    Parties

                                    -------



     The parties to this Agreement, made as of the 18th day of May 2000, are K-

Swiss Inc., a Delaware corporation (the "Company" or "K-Swiss"), and Steven B.

Nichols (the "Executive").



                                   Recitals

                                   --------



     WHEREAS, the Executive possesses an intimate knowledge of the footwear

business and the business and affairs of the Company, its policies, methods,

personnel and operations.



     WHEREAS, K-Swiss and the Executive are parties to an Employment Agreement

made as of March 1, 1995, (the "1995 Agreement"), which expires December 31,

2000 and whereas the Board of Directors of K-Swiss desires to assure K-Swiss of

the Executive's continued employment in an executive capacity and to compensate

him therefor.



     WHEREAS, the Executive is willing to commit himself to serve K-Swiss on the

terms herein provided.



     Therefore, in consideration of the foregoing and of the respective

covenants and agreements of the parties herein contained, the parties hereto

agree as follows:



                                   Agreement

                                   ---------



1.   Employment.

     ----------



     (a)  The Company hereby agrees to employ the Executive, and the Executive

hereby agrees to serve the Company, all on the terms and conditions set forth

herein.



     (b)  The employment of the Executive by the Company pursuant to this

Agreement shall be for the period commencing on January 1, 2001 (the

"Commencement Date") and expiring on the date set forth in Section B of Appendix

I hereto (the "Expiration Date"), unless such employment shall have been sooner

terminated as hereinafter set forth.



2.   Position and Duties.

     -------------------



     The Executive shall serve in the capacity or capacities set forth in

Section A of Appendix I hereto, shall be accountable to, and shall also have

such other powers, duties and responsibilities as may from time to time be

prescribed by, the Board of Directors, provided that such other duties and

responsibilities are consistent with the Executive's position.



     The Executive shall perform and discharge, faithfully, diligently and to

the best of his ability, such duties and responsibilities.  The Executive shall

devote

{PAGE}



substantially all his working time and efforts to the business and affairs of

the Company.



3.   Compensation.

     ------------



     (a)  Salary.  During each year of his employment hereunder from the

          ------

Commencement Date, the Executive shall receive an annual base salary equal to:

(i) $767,431 (the annual salary payable to Executive with respect to the year

commencing January 1, 2000 pursuant to the 1995 Agreement) (the "2000 Base

Salary") plus (ii) the 2000 Base Salary multiplied by a percentage increase, if

any, in the Consumer Price Index - Los Angeles - Anaheim - Riverside, California

Area - All Items (the "CPI") during the period from January 1, 2000 to December

31, 2000; provided that with respect to each year commencing on January 1, 2002

and thereafter, the base salary in effect for such year shall equal the base

salary in effect for the immediately preceding year multiplied by a factor equal

to the sum of:  (x) 100%, plus (y) the percentage increase, if any, in the CPI

Home        Intelligence        Services        Subscriptions        News        About Us

Contact Us       Terms of Use       Resend Documents       Shopping Cart

Copyright © 2008 The Consus Group LLC