MAXWELL SHOE CO INC
AGREEMENT WITH ANNE KLEIN AND MAXWELL SHOE
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 <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Exhibit 10.18 </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="5" COLOR="#000000"><B>K<SMALL>ASPER</SMALL> A.S.L., L<SMALL>TD</SMALL>. </B></FONT></DIV> <HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"><DIV><FONT FACE="Times New Roman"
SIZE="2" COLOR="#000000"><B>11 W<SMALL>EST</SMALL> 42<SMALL>ND</SMALL> S<SMALL>TREET</SMALL>, N<SMALL>EW</SMALL> Y<SMALL>ORK</SMALL>, NY, 10036 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Lee S. Sporn </B></FONT></DIV> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Senior Vice President, General Counsel &amp; </B></FONT></DIV> <DIV
ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Secretary </B></FONT></DIV> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Direct Dial: 212.626.6121 </B></FONT></DIV> <DIV ALIGN="right"><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Fax: 212.626.6354 </B></FONT></DIV> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>E-fax: 208.723.5646 </B></FONT></DIV> <DIV ALIGN="right"><FONT FACE="Times New Roman"
SIZE="1" COLOR="#000000"><B>Internet: lsporn@kasperasl.com </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Maxwell Shoe Company, Inc. </FONT></DIV> <DIV><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000">P.O. Box 37 </FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">101 Sprague Street </FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Readville, Massachusetts
02137-0037 </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Gentlemen: </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000">This letter, when countersigned on behalf of your company and on behalf of B.D.S., Inc. (&#147;BDS&#148;), will constitute an amendment to the agreement between Anne Klein, a division of Kasper A.S.L.,
Ltd. (&#147;Anne Klein&#148;), BDS and Maxwell Shoe Company, Inc. (&#147;Maxwell&#148;) executed on November 1, 1999 with effect from July 19, 1999 (the &#147;License Agreement&#148;), as follows (all terms used but not defined herein having the
respective meanings set forth in the License Agreement): </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">1.&nbsp;&nbsp;&nbsp;&nbsp;Anne Klein represents and warrants that, by an
agreement dated as of January 1, 2002 between BDS and Anne Klein, BDS has waived all rights under the License Agreement and, as a result, shall as of that date be deleted as a party thereto. Pursuant to paragraph 19.07 of the License Agreement, BDS
hereby agrees to amend the License Agreement so that effective January 1, 2002 BDS shall have no rights or obligations whatsoever under the License Agreement. Maxwell hereby releases and discharges BDS and its affiliates from any and all claims it
may have had or may have against BDS or its affiliates under the License Agreement. BDS hereby releases and discharges Maxwell and its affiliates from any and all claims it may have had or may have against Maxwell or its affiliates under the License
Agreement. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">2.&nbsp;&nbsp;&nbsp;&nbsp;The definition of Licensed Marks is hereby modified so as to add the trademark &#147;AK ANNE
KLEIN&#148;. Maxwell may continue to sell its remaining inventory of Licensed Articles bearing the trademarks &#147;Anne Klein II&#148; through June 30, 2003 in accordance with all the terms and conditions set forth in the License Agreement. Anne
Klein shall have no obligation to approve any additional styles of Licensed Articles bearing the &#147;Anne Klein II&#148; trademark. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000">3.&nbsp;&nbsp;&nbsp;&nbsp;Anne Klein and Maxwell further agree to amend the License Agreement so as to provide that, from and after January 1, 2003, (i)&nbsp;the Image Fund Payment set forth in Section
7.01(b)(ii) shall be reduced to one percent (1%) and (ii) the Sales Royalty set forth in paragraph 9.01 shall be increased to six percent (6%). </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000">4.&nbsp;&nbsp;&nbsp;&nbsp;This letter shall not become effective until and unless the United States Bankruptcy Court with jurisdiction of the Chapter 11 debtor case of Kasper A.S.L., Ltd. (&#147;Kasper&#148;) approves and enters an
order pursuant to the Bankruptcy Code authorizing Kasper to assume the License Agreement, as amended hereby, and all obligations of Kasper and Anne Klein thereunder. </FONT></DIV>

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 <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Maxwell Shoe Company, Inc. </FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Page
2 </FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">3/19/02 </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Except as
expressly set forth herein, the terms and conditions set forth in the License Agreement shall remain in full force and effect. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
STYLE="margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Sincerely, </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000">Anne Klein, a division of Kasper A.S.L., Ltd. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">By: <U>/s/ John D.
Idol&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></DIV> <DIV STYLE="margin-left:55%"><FONT FACE="Times New Roman"
SIZE="2" COLOR="#000000">John D. Idol </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">ACCEPTED AND AGREED: </FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Maxwell Shoe Company Inc. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman"
SIZE="2" COLOR="#000000">By: <U>/s/ James J. Tinagero&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James J. Tinagero </FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COO </FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">B.D.S., Inc. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000">By: <U>/s/ Daniel
Schwartz&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp; </FONT></DIV>
<DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Daniel Schwartz&nbsp;&nbsp;&nbsp;&nbsp; </FONT></DIV>
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