EXHIBIT 10.31
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 Anoka, Minnesota ("Executive").
WITNESSETH
WHEREAS, the Company and Executive have entered into an Employment
Agreement dated as of January 23, 1996 (the "Employment Agreement"); and
WHEREAS, Sections 6, 7 and 9 of the Employment Agreement provides 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 not 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, 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."
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 bonus earned by
Executive during the prior fiscal year. Such payment shall be
made in cash within fifteen (15) days from and after
Executive's employment under this Agreement ceases."
4. Other Provisions Unaffected. Except as provided herein, all other
provisions of 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 pursuant to the authority of its Board, and Executive has
executed this Agreement, as of the day and year first written above.
FIRST TEAM SPORTS, INC.
By: /s/ Xxxx Xxxxxxx
Its: VP-Finance
/s/ Xxxxx X. Xxxxxxxxxx
Xxxxx X. Xxxxxxxxxx
