Exhibit 10.38
July 23, 1996
Xx. Xxxxxx X Xxxxxxxx
0000 Xxxx Xxxxx
Xxxxxxx, Xxxxxxxxxx 00000
Dear Don:
This letter sets forth the agreement pursuant to which you will provide
services as an employee of Active Apparel Group, Inc. ("AAG"), effective
September 1, 1996.
1. The term of this agreement is one year.
2. You will provide services as counsel and advisor to AAG solely
pursuant to the direction of the President and Chief Executive Officer.
3. As consideration for services performed pursuant to this agreement,
AAG will compensate you as follows:
(a) Pay you a salary of Thirty-six thousand dollars ($36,000) per
year, payable in equal payments made quarterly beginning at the end of the
fourth month of employment (by the 5th of the following month) unless a
different frequency of payment is agreed to.
(b) In January 1997 grant you options to purchase 3,200 shares of
the Company's common stock exercisable at an amount equal to the exercise price
of options granted to non-employee members of the Board of Directors for their
service for the year 1997, and for the same term as such directors' options.
4. In addition, AAG will reimburse you for reasonable expenses incurred
by you in performing your services, provided such expenses are evidenced by
appropriate documentation.
/S/DJH /S/GH
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DJH For AAG
If the foregoing is acceptable to you, on both enclosed copies of
letter please initial page one where indicated, sign page two, and then mail one
copy to my attention at Active Apparel Group, Inc.
Sincerely,
/s/
----------------------
Xxxxxx Xxxxxxxx
CEO/President
Agreed to and Accepted
this 23rd day of July, 1996.
/S/
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Xxxxxx X Xxxxxxxx
Employee
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