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EMPLOYMENT AGREEMENT EMPLOYMENT AGREEMENT (this "Agreement") dated as of the 12/th/ day of June, 2000 between Tommy Hilfiger U., Inc....

Well, I have to do a Business assignment and I dont really know how to do it. If you guys could help me I would appreciate it. I have to read a contract and then answer some questions about the contract. I have attached the contract that I have to read.

EMPLOYMENT AGREEMENT EMPLOYMENT AGREEMENT (this "Agreement") dated as of the 12/th/ day of June, 2000 between Tommy Hilfiger U.S.A., Inc. ("THUSA" or the "Company") and Joel H. Newman ("Executive"). WHEREAS, the parties desire to enter into this Agreement to reflect their mutual agreements with respect to the employment of Executive by the Company. NOW, THEREFORE, in consideration of the mutual covenants, warranties and undertakings herein contained, the parties hereto agree as follows: 1. Term. The employment of Executive under this Agreement shall commence on June 12, 2000 and shall continue through March 31, 2003 (the "Term"), subject to the terms and provisions of this Agreement. The Term shall be automatically renewed from year to year unless either party shall give the other written notice at least thirty (30) days prior to the end of the then current term of its intention that the then current term is not to renew. 2. Position and Duties. Executive shall remain in his present position as President of Finance and Administration, continuing with his current responsibilities for the Company's Finance, Customer Services, Legal, Facilities, Investor Relations and Human Resources Divisions as well as other duties to be mutually agreed upon. Executive shall continue to report directly to the Company's Chief Executive Officer. The Company agrees that on or before July 1, 2001, Executive shall be appointed Chief Operating Officer of the Company, and at the time of such appointment, in addition to his current responsibilities, Executive will assume responsibility for the Company's Operations Division. Except for vacation, personal and sick days in accordance with the Company's policies for comparable senior executives, Executive shall devote his full time during the Term to provide services to the Company, its parents, subsidiaries, affiliates or divisions. 3. Compensation. (a) Base Salary. Executive's base salary (the "Base Salary") shall be at the rate of $650,000 per annum for the period June 12, 2000 through March 31, 2001. The Base Salary shall be increased to $750,000 per annum as of April 1, 2001, and to $850,000 per annum as of April 1, 2002. If this Agreement shall be renewed for the period April 1, 2003 through March 31, 2004, the Base Salary for such period shall be $950,000. The Base Salary shall be payable in substantially equal semi-monthly installments.
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(b) Bonus Compensation. (i) Signing Bonus. The Executive shall receive a bonus of $225,000 upon Executive's execution of this Agreement. (ii) Annual Cash Incentive Bonus. For the fiscal yearending March 31, 2001, Executive shall be entitled to a minimum bonus of 50% of the Base Salary in effect on such date. However, if the Company achieves or exceeds the Company's Annual Financial Budget as approved by the Board of Directors for such year, Executive shall be entitled to a minimum bonus of 100% of the Base Salary in effect on such date. For the fiscal year ending March 31, 2002, Executive shall be entitled to a minimum bonus of $500,000. However, if the Company achieves or exceeds the Company's Annual Financial Budget as approved by the Board of Directors for such year, Executive shall be entitled to a minimum bonus of 100% of the Base Salary in effect on such date. For the fiscal year ending March 31, 2003, Executive shall be entitled to a minimum bonus of $567,000. However, if the Company achieves or exceeds the Company's Annual Financial Budget as approved by the Board of Directors for such year, Executive shall be entitled to a minimum bonus of 100% of the Base Salary in effect on such date. If this Agreement shall be renewed for the period April 1, 2003 through March 31, 2004, for the fiscal year ending March 31, 2004, Executive shall be entitled to a minimum bonus of $634,000. However, if the Company achieves or exceeds the Company's Annual Financial Budget as approved by the Board of Directors for such year, Executive shall be entitled to a minimum bonus of 100% of the Base Salary in effect on such date. The Annual Cash Incentive Bonus shall be earned on the last day of the Company's fiscal year, and payable when the Company pays bonuses to other Company executives, but no later than June 30 of the following fiscal year. (c) Benefits. During his employment under this Agreement, the Company will continue to provide Executive with the benefits Executive has been receiving prior to execution of this Agreement. (d) Automobile. During his employment under this Agreement, the Company will continue to provide Executive at its expense with the same automobile benefit Executive has been receiving prior to Executive's execution of this Agreement. (e) Expense Reimbursement. The Company shall reimburse Executive for the ordinary and necessary business expenses incurred by him in the performance of his duties in accordance with the Company's policies and procedures applied in a manner consistent with past practice. (f) Stock Options. Upon execution of this Agreement, the Company will grant to the Executive under the THUSA 1992 Stock Incentive Plan (as the same may be amended or superseded from time to time, the "Plan"), an
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