EXHIBIT 10.16
First Team Sports, Inc.
0000 Xxxx Xxxxxxxxx
Xxxxx, XX 00000
April 7, 1997
Xx. Xxx Xxxxxxxxxx
0000 Xxxx XxXxxxxx
Xxxxxxxxxx, XX 00000
Dear Xxx:
This letter will confirm the conversations you and I have had in connection with
the amendment of your August 19, 1992 Consulting Agreement. Other than the
amendments set forth below, your consulting agreement shall remain in full force
and affect through fiscal 1998.
In addition to your monthly consulting fee of $3,000, you will be eligible for a
performance payment as follows:
Earnings Before Tax EBT % Payment
Lower Level $4,900,000 7.0% $ 24,000
Middle Level $5,568,000 7.4% $ 72,000
Higher Level $6,076,000 7.6% $120,000
The above performance payment will be calculated and awarded with the same
criteria as the 1998 Executive Bonus Plan. If earnings fall between the three
above levels, bonus dollars will be pro-rated accordingly.
In addition, you have been granted a seven-year, nonqualified stock option
covering 30,000 shares at $6.00 per share. These options will vest at the rate
of 33 1/3% per year over the next three years.
If this letter accurately sets forth your understanding of the amendment to the
terms of your consulting agreement, please sign both copies where indicated and
return a signed copy to me.
Very truly yours,
/s/ Xxxx X. Xxxxx
Xxxx X. Xxxxx
President/CEO
I have read the foregoing and am in agreement with the terms set forth therein.
April 27, 1997 /s/ Xxx Xxxxxxxxxx
Date Xxx Xxxxxxxxxx
