April 16, 2001 PERSONAL & CONFIDENTIAL David M. Maddocks 924 North 77th Street Seattle, WA 98103 David: I am pleased to confirm our offer of employment as Chief Executive Officer at Converse Inc. ("the Company"). In this position you will report to the CEO, Jack Boys. Your start date will be May 1, 2001. COMPENSATION: If you decide to join us, you will receive an annual salary of $158,000.00 which will be paid commensurate with the normal payroll cycle of the company. The following benefits will be provided by Converse, Inc. BENEFITS PACKAGE EMPLOYEE BENEFITS: You will be eligible for medical and dental benefits based upon the Company's Employee Benefit Program. PAID TIME OFF: You will be eligible for twenty days of Paid Time Off (PTO) on an annual basis to be used for vacation, illness or personal business. Additionally, floating holidays will be determined on a Company-wide basis annually. MANAGEMENT INCENTIVE PLAN: You will be participating in the Executive Management Incentive Plan, which provides for bonus compensation based upon both the Company's and your individual performance. This Plan is subject to Board of Directors approval. STOCK INCENTIVE PLAN: You will participate in the Executive Management Stock Incentive Plan. This Plan is subject to Board of Directors approval. <PAGE> SEPARATION: If the employee is terminated for any reason other than material misconduct or criminal action, the Company will pay six months of salary based on employees existing level of annual compensation. RELOCATION: Reasonable relocation costs to be mutually agreed upon and up to six months of temporary living expenses will be provided by the Company. To indicate your acceptance of the Company's offer, please sign and date this letter in the space provided below and return it to me within one week from the date of this letter. This letter, along with any agreements relating to confidential information between you and Converse Inc., set forth the terms of your employment with Converse, Inc. and supersedes any prior representations or agreements, whether written or oral. This letter may not be modified or amended except by a written agreement, signed by Converse Inc. and by you. Please contact me if you have any questions regarding this employment offer or any points covered in this letter. We look forward to receiving your positive response and look forward to working with you as you join, the Converse team. I hereby agree and/or accept employment with Converse, Inc. and the terms set forth above. I understand and agree to keep the contents of this letter confidential. Signature and Date: /s/ Marsden Cason -------------------------------- Marsden Cason, President Footwear Acquisitions, Inc. Signature and Date: /s/ David Maddocks -------------------------------- David M. Maddocks
Source: OneCLE Business Contracts.