April 16, 1997
Xx. Xxxxxx X. Xxxxx
c/x Xxxxxxx Radio Corp.
Nine Xxxxx Xxxx
X.X. Xxx 000
Xxxxxxxxxx, Xxx Xxxxxx 00000-0000
Re: Extension of Employment Agreement
Dear Xx. Xxxxx:
This letter will serve as confirmation of our agreement to extend the terms
of that certain Employment Agreement dated July 7, 1992 (the "Agreement") by and
between you and Xxxxxxx Radio Corp. ("Xxxxxxx"). Under Section 1 of the
Agreement, the "Term" as defined therein is to continue until July 7, 1997. By
your signature below, you and Xxxxxxx agree to extend the Term of the Agreement
until March 31, 2000.
Notwithstanding the terms of the Agreement, you will only be obligated to
devote approximately 60% of your business time to services on behalf of Xxxxxxx,
its subsidiaries and affiliates, including Sport Supply Group, Inc. ("SSG").
You will initially serve as Vice Chairman of Xxxxxxx, and will no longer serve
as President, and in such other duties or capacities for Xxxxxxx and/or its
subsidiaries or affiliates (including SSG) from time to time in the future as
may be requested or directed by Xxxxxxx'x Board of Directors, Chairman, or Chief
Executive Officer.
You will continue to receive your current salary from Xxxxxxx, subject to
adjustment as provided in the Agreement; however, Xxxxxxx shall be entitled, in
its sole discretion, to credit against its salary obligations to you any amounts
you have received or will receive in base compensation from SSG. It is
understood that, initially, you shall receive base annual compensation from both
companies of $450,000, of which you shall receive $200,000 from SSG and $250,000
from Xxxxxxx. You shall also be entitled to all other benefits and privileges
currently available to you under the Agreement.
It is understood that during the 40% of your business time not allocated
directly to Xxxxxxx or SSG you shall, among other things, be engaged in
developing new business opportunities. Any and all such business opportunities
shall be subject to a right of first refusal by Xxxxxxx or a designated
affiliate for a period of no less than 10 business days.
You expressly agree that upon the written request of the Board of Directors
or Chairman of Xxxxxxx, you will resign as a director of Xxxxxxx, and upon your
receipt of such request you will be deemed to have so resigned. Any such
resignation from the Board shall not have any effect upon your continued
employment by Xxxxxxx, your rights under the Agreement, or otherwise.
Except as specifically amended hereby, the Agreement shall not be deemed to
be further amended or modified, and shall remain in full force and effect.
Please indicate your agreement to the terms of this letter agreement in the
space provided below. This letter agreement will be effective as of April 1,
1997.
Very truly yours,
XXXXXXX RADIO CORP.
By: /s/ Xxxxxxxx X. Xxxxxx
Xxxxxxxx X. Xxxxxx, Chairman
and Chief Executive Officer
ACKNOWLEDGED, UNDERSTOOD, AND
AGREED TO AS OF THE 16th
DAY OF APRIL, 1997
/s/ Xxxxxx X. Xxxxx
XXXXXX X. XXXXX
