EXHIBIT (10)(Z)(IV)
AMENDMENT NO. 3 TO EMPLOYMENT AGREEMENT
AMENDMENT NO. 3 to that certain Employment Agreement dated as of March
18, 1994 as amended by Amendments dated August 8, 1994 and August 8, 1996,
(collectively, the "Agreement") by and between Nantucket Industries, Inc., a
Delaware corporation having its principal office at 000 Xxxxxxxxxxx Xxxx,
Xxxxxxxx, Xxx Xxxx 00000 (the "Company") and Xxxxxxx X. Xxxxxxx, residing at 000
Xxxx Xxx Xxxxxxxx, Xxxxxxx, Xxx Xxxx 00000-0000 (the "Executive").
WHEREAS, due to the financial difficulties the Company is currently
experiencing, it is determined to be in the best interests of the Company that
certain cost-cutting measures should be instituted and in connection therewith,
the compensation of certain of its executive officers should be reduced;
WHEREAS, Executive has an economic interest in the success of the
Company and Executive desires that the Company take whatever steps are necessary
at this time;
WHEREAS, Company and the Executive are both willing to modify the
Agreement to adjust the Executive's compensation arrangements;
NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, do hereby agree:
1. That Section I.C. of the Agreement be amended by deleting the first
paragraph of said Section I.C. in its entirety and substituting the following in
place thereof, effective as of July 1, 1997:
"C. Compensation. As partial compensation for all such services to be
rendered by the Executive in all capacities hereunder, including services as an
officer or director of the Company or any of its affiliates, the Company will
pay or cause to be paid to the Executive during each one-year period beginning
March 1 of the Term (a "Term Year"), (i) the annual Base Rate of $300,000 per
annum; (ii) an annual bonus of up to $300,000, as determined in accordance with
standards adopted from time to time by the Compensation Committee of the Board
of Directors of the Company; and (iii) Commissions on sales of the Company's
product lines for which the Executive is granted responsibility by the
Compensation Committee equal to 1 1/2% of the Company's Net Sales with respect
to such product lines. The sum of (i) and (iii) for any Term Year is sometimes
referred to herein as the Executive's Annual Cash Compensation and it shall not
exceed $500,000 in any one year. The Base Rate shall be payable to the Executive
in equal semi-monthly or more frequent installments, as the Company shall
determine; bonus
compensation under clause (ii) of this paragraph shall be payable to the
Executive at such intervals as are provided for by the Compensation Committee,
but not less frequently than annually promptly after the same is reasonably
determinable; and commissions under clause (iii) of this paragraph, shall be
payable to the Executive monthly, within three (3) weeks after the end of each
month during the term of this Agreement. For purposes of this Section, Net Sales
with respect to a product line shall mean the aggregate gross sales revenue of
the Company with respect to such product line, less returns, discounts and other
customary allowances each as computed in accordance with GAAP."
Commencing July 1, 1997, the Company shall be responsible for lease
payments of up to $1,705 per month on the automobile used by Executive during
the balance of the Term.
Except as expressly amended herein, the Agreement shall remain
unmodified and in full force and effect.
IN WITNESS WHEREOF, the parties have caused this Amendment No. 3 to be
duly executed and effective as of the 1st day of July 1997.
NANTUCKET INDUSTRIES, INC.
By: /s/ Xxxxxx X. Xxxxxxx
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Xxxxxx X. Xxxxxxx
Vice President - Finance
EXECUTIVE
/s/ Xxxxxxx X. Xxxxxxx
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Xxxxxxx X. Xxxxxxx
