AMENDMENT TO EMPLOYMENT AGREEMENT
THIS AMENDMENT TO EMPLOYMENT AGREEMENT, effective as of January 1,
1998, between FIRST TEAM SPORTS, INC., a Minnesota corporation (the "Company"),
and XXXXX X. XXXXXXXXXX, a resident of Minnesota ("Executive").
WITHNESSETH
WHEREAS, the Company and Executive have entered into an Employment
Agreement dated as of January 23, 19996 (the "Employment Agreement"); and
WHEREAS, Sections 6, 7 and 9 of the Employment Agreement provide that
Executive shall receive certain cash payments calculated on the basis of
Executive's "Base Salary" in the event Executive's employment is terminated by
the Company under various circumstances or in the event the term of the
Employment Agreement is now renewed; and
WHEREAS, in light of the disappointing recent financial performance of
the Company and the in-line skate industry generally, Executive has voluntarily
agreed to accept a reduction in the amount of Base Salary payable to Executive
under the Employment Agreement; provided that such reduction does not reduce the
amounts to which Executive would otherwise be entitled pursuant to Sections 6, 7
or 9 of the Employment Agreement in the event of a termination or nonrenewal of
employment;
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained the parties hereto agree as follows:
1. Amendment of Section 6 of Employment Agreement. Section
6(a)(i) of the Employment Agreement is hereby amended to read
in its entirety as follows:
"(i) The Company shall make a cash payment to Executive equal
to the greater of (A) the sum of the highest monthly Base
Salary in effect any time during the three-year period
immediately preceding such termination times the number of
months remaining in the Term (without regard to renewals)
under this Agreement, plus an amount equal to the incentive
bonus earned by Executive in the prior fiscal year multiplied
by the number of months remaining in the Term (without regard
to renewals) divided by twelve (12), or (B) the sum of the
highest annual Base Salary in effect any time during the
three-year period immediately preceding such termination, plus
the amount of incentive bonus earned by Executive during the
prior fiscal year. Such payment shall be made in cash within
fifteen (15) days from and after termination of Executive's
employment."
2. Amendment of Section 7 of Employment Agreement. Section
7(a)(i) of the Employment Agreement is hereby amended to read
in its entirety as follows:
"(i) Subject to paragraph (c) hereof, the Company shall make a
cash payment to Executive equal to the greater of (A) the sum
of the highest monthly Base Salary in effect any time during
the three-year period immediately preceding such termination
times the number of months remaining in the Term (without
regard to renewals) under this Agreement, plus an amount equal
to the incentive bonus earned by Executive in the prior fiscal
year multiplied by the number of months remaining in the Term
(without regard to renewals) divided by twelve (12), or (B) 2
times the sum of the highest annual Base Salary in effect any
time during the three-year period immediately preceding such
termination, and the amount of incentive bonuses which, absent
termination of Executive's employment, could have been earned
by Executive during the fiscal year of the Company in which
Executive's employment under this Agreement ceases. For
purposes of Clause (B), the computation of the amount of
incentive bonuses shall be based upon the bonus programs in
effect at the time of termination of Executive's employment
and such computation shall assume that target performance
levels are satisfied for all purposes during such fiscal year.
Such payment shall be made in cash within fifteen (15) days
from and after termination of Executive's employment."
3. Amendment of Section 9(b) of Employment Agreement. Section
9(b)(i) of the Employment Agreement is hereby amended to read
in its entirety as follows:
"(i) Unless the notice of nonrenewal is given during a
Transition Period, the Company shall make a cash payment equal
to the amount of the highest annual Base Salary in effect any
time during the three-year period immediately preceding
termination of employment. Such payment shall be made in cash
within fifteen (15) days from and after the end of Executive's
employment term. If the notice of renewal is given during a
Transition Period, then, subject to Section 7(c), the Company
shall make a cash payment to Executive equal to two (2) times
the sum of (A) the amount of the highest annual Base Salary in
effect any time during the three-year period immediately
preceding termination of Executive's employment and (B) the
amount of incentive bonuses which, absent termination of
Executive's employment, could have been earned by Executive
during the fiscal year of the Company in which Executive's
employment under this Agreement ceases. For purposes of Clause
(B), the computation of the amount of incentive bonuses shall
be based upon the bonus programs in effect at the time of
termination of Executive's employment and such computation
shall assume that target performance levels are satisfied for
all purposes during such fiscal year. Such payment shall be
made in cash within fifteen (15) days from and after
termination of Executive's employment."
4. Other Provisions Unaffected. Except as provided herein, all
other provisions to the Employee Agreement shall remain in
force and unaffected by this Amendment.
IN WITNESS WHEREOF, the Company has caused this Agreement to be signed
by its officer, and Executive has executed this Agreement, as of the
day and year first written above.
FIRST TEAM SPORTS, INC.
By /s/ Xxxx X. Xxxxx
Xxxx X. Xxxxx,
President and Chief Executive Officer
/s/ Xxxxx X. Xxxxxxxxxx
Xxxxx X. Xxxxxxxxxx
