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EXHIBIT 10.4(a)
AMENDMENT NO. 1
TO
EMPLOYMENT AGREEMENT
THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT is entered into on
February 29, 2000 between Skechers U.S.A., Inc. ("Employer") and Xxxxxxx
Xxxxxxxxx, an individual ("Employee"), with reference to the following facts:
RECITALS
A. Employer and Employee entered into that certain Employment
Agreement (the "Employment Agreement") dated as of June 14, 1999.
B. Employer and Employee intended at the time the Employment
Agreement was executed to make payments due thereunder discretionary in that (i)
Section 2.2(c) of the Employment Agreement states that the bonus program set
forth therein may be replaced with a different program approved by the Board's
Compensation Committee and agreed with by Employee and (ii) Section 11.4 permits
the amendment, supplement or discharge of the Employment Agreement if in writing
signed by both parties.
C. The Board's Compensation Committee has heretofore approved a
different bonus program for Employee as set forth herein and Employee has
approved such program.
D. Employee and Employer each desire to amend the Employment
Agreement effective as of December 31, 1999 to replace the bonus program as set
forth in the Employment Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements hereinafter contained, and for other good and valuable consideration,
it is hereby agreed by and between the parties hereto as follows:
Terms not defined herein shall have the respective meanings as set forth in the
Employment Agreement.
1. COMPENSATION.
Effective as of December 31, 1999, the introductory paragraph to Section
2.2 shall be deleted in its entirety and replaced with the following:
"2.2 Performance-Based Annual Bonus. For each full year during
Employee's term as set forth in Section 5, commencing on the
Effective Date, Employee shall be eligible to receive a cash
bonus based on Employer's achievement of certain financial goals
("Performance-Based Annual Bonus"), provided, however, that for
calendar year 1999,
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Employee shall only receive a cash bonus of $165,000 and not a
Performance-Based Annual Bonus. For calendar year 2000, and
until changed by the Board's Compensation Committee, the annual
cash bonus award shall be determined on the basis of Employer's
annual return on average equity ("XXX")."
3. Miscellaneous
Section 11 of the Employment Agreement is incorporated herein by
reference.
IN WITNESS WHEREOF, this Amendment No. 1, which is made effective as of December
31, 1999, is executed as of the day and year first above written.
"EMPLOYER"
Skechers, U.S.A., Inc.
By: /s/ XXXXX XXXXXXXX
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Name: Xxxxx Xxxxxxxx
Title: Executive Vice President and
Chief Financial Officer
"EMPLOYEE"
/s/ XXXXXXX XXXXXXXXX
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Xxxxxxx Xxxxxxxxx
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