Exhibit 10.27
FIRST AMENDMENT
TO
EMPLOYMENT AGREEMENT
(▇▇▇▇▇▇)
THIS FIRST AMENDMENT (this "Amendment") is made as of April 3, 2000, to the
Employment Agreement dated May 25, 1996 (the "Original Agreement") by and
between WILSONS THE LEATHER EXPERTS INC., a Minnesota corporation (the
"Company"), and ▇▇▇▇ ▇▇▇▇▇▇, a resident of Minnesota (the "Executive").
WHEREAS, the Company wishes to continue to secure the Executive's services
as Chairman and Chief Executive Officer of the Company under the terms of the
Original Agreement as modified by this Amendment;
WHEREAS, the Executive wishes to continue to provide such services to the
Company; and
WHEREAS, the Executive and the Company desire to modify the definitions of
"Employment Year" and "Base Salary" in the Original Agreement.
NOW THEREFORE, in consideration of the premises and of the mutual covenants
and undertakings stated herein, the Executive and the Company hereby agree to
amend the Original Agreement as follows:
A. Section 1 of the Original Agreement is hereby amended in its entirety to
read as follows:
1. Employment. Subject to all terms and conditions hereof, the Company
shall employ the Executive as, and the Executive shall serve the Company
as, Chairman and Chief Executive Officer of the Company during the period
commencing May 25, 1996 and ending at the end of the Employment Period,
unless the Executive's employment hereunder terminates earlier in
accordance with Section 5 hereof. For purposes of this Agreement, the
"Employment Period" shall commence on May 25, 1996 and shall end on March
31, 2003, subject to an automatic one-year extension on each April 1,
commencing on April 1, 2001 and each April 1 thereafter (provided that the
Executive's employment hereunder has not previously terminated), unless,
not later than ninety (90) days prior to the applicable April 1, the
Executive or the Company shall have given notice to the other party hereto
not to extend, or further extend, the Employment Period. As a result of the
automatic one-year extensions, the Employment Period shall not have less
than two remaining Employment Years at the time of any termination of the
Executive's employment unless, not later than ninety (90) days prior to an
April 1 preceding such termination, the Executive or the Company shall have
given notice to the other party hereto not to extend, or further extend,
the Employment Period.
B. The definition of "Employment Year" contained in the Original Agreement
is hereby changed to mean, as applicable, the twelve-month period ending on May
25 for all such twelve-month periods ending on or prior to May 25, 1999, the
period commencing May 26, 1999 and ending March 31, 2000 and each twelve-month
period thereafter during the Employment Period commencing April 1 and ending on
the next March 31.
C. Section 3(a) of the Original Agreement is hereby amended in its entirety
to read as follows for Employment Years commencing on May 26, 1999 and each
Employment Year thereafter:
3. Compensation.
(a) Subject to all terms and conditions hereof, while the
Executive is employed by the Company hereunder, the Company shall pay,
or cause one or more of its Subsidiaries to pay, to the Executive a
base salary ("Base Salary") of $425,000 per Employment Year (prorated
for any partial Employment Year) or such higher amount as is from time
to time hereafter established by the Board of Directors or the
Compensation Committee of the Company. The Executive's annual Base
Salary shall be payable in substantially equal installments once every
two weeks. The Board of Directors of the Company or the Compensation
Committee will review the Executive's Base Salary at the beginning of
each Employment Year, to determine whether an increase in the annual
amount thereof is merited. In no event shall the Board of Directors or
the Compensation Committee reduce the Executive's Base Salary for any
Employment Year commencing April 1, 2000 or thereafter below the
greater of $425,000 or the amount of Base Salary paid by the Company
to the Executive on an annualized basis for the immediately preceding
Employment Year.
D. All references in the Original Agreement and this Amendment to "this
Agreement," the "Agreement," "hereunder," "herein," or "hereof" shall be deemed
to be references to the Original Agreement, as amended by this Amendment and as
hereafter amended by any other amendment adopted in accordance with Section 22
of the Original Agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed on the date and year first above written.
WILSONS THE LEATHER EXPERTS
INC.
/s/ ▇▇▇▇ ▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇
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Name: ▇▇▇▇ ▇▇▇▇▇▇ Name: ▇▇▇▇▇ ▇▇▇▇▇▇
Title: President
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