Exhibit 10.71
December 5, 1997
Xx. Xxxxxxx X. Xxxxxx
Farah Incorporated
X.X. Xxx 00000
Xx Xxxx, Xxxxx 00000-000
Re: Extension of Employment Agreement
Dear Xxxxxxx,
Reference is made to that certain Employment Agreement by and between
Farah Incorporated (the "Company") and yourself dated March 2, 1996 (the
"Agreement"). The Company wishes to extend the term of the Agreement and make
certain amendments thereto. Therefore, the Company proposes that Section 1(b) of
the Agreement be amended to delete the date "March 1, 1997" and to insert the
date "March 1, 1999."
The Agreement shall be amended to add new Section 2(d) as follows:
(d) The Company's agrees to pay the cost of premiums
for a reverse split-dollar life insurance policy for the
Executive on such terms and conditions, and containing such
benefits for the Executive and the Company, as the Company's
Stock Option and Compensation Committee may deem appropriate.
The cost of premiums for such reverse split-dollar life
insurance policy shall be not greater than $20,000 per annum,
unless otherwise agreed by the Company.
The Agreement shall be amended to add a new sentence at the end of
Section 4(g) as follows:
In addition to the foregoing, if the Executive's employment is
terminated by the Executive as specified in Section 4(f), then
in addition to the other amounts payable by the Company
pursuant to this Section 4(g), the Company shall pay one
additional annual premium for the reverse split-dollar life
insurance policy described under Section 2(d) unless prior to
the date such annual payments is required under the terms of
the reverse split-dollar life insurance policy no payment is
required because of (i) of death of the Executive, except to
the extent of unpaid premiums as of the date of death, or (ii)
no further premium payments are required under the terms of
such policy.
The Agreement shall be amended to add new Section 4(h) as follows:
(h) If the Executive's employment is terminated by the Company
without cause, then in addition to any other obligations the
Company may have to the Executive pursuant to this Agreement,
the Company shall pay one additional annual premium for the
reverse split-dollar life insurance policy described under
Section 2(d) unless prior to the date such annual payments is
required under the terms of the reverse split-dollar life
insurance policy no payment is required because of (i) of
death of the Executive, except to the extent of unpaid
premiums as of the date of death, or (ii) no further premium
payments are required under the terms of such policy.
All other terms and provisions of the Agreement will remain unchanged. If the
foregoing terms are acceptable to you, please indicate your acceptance by
signing below.
Very truly yours,
Farah Incorporated
/s/ Xxxxxxx X. Xxxxxxxx
Xxxxxxx X. Xxxxxxxx
Chairman of the Board,
President and Chief Executive Officer
Agreed and accepted as of the 5th day of December, 1997:
/s/ Xxxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
