ST JOHN KNITS INTERNATIONAL INC
CONSULT. AGMT / BOB GRAY, 11/04/02
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<TYPE>EX-10.52
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<DESCRIPTION>CONSULT. AGMT / BOB GRAY, 11/04/02
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<TITLE>Consult. Agmt / Bob Gray, 11/04/02</TITLE>
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 <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Exhibit 10.52 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>CONSULTING AGREEMENT </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">This Consulting
Agreement (this &#147;Agreement&#148;), effective as of November 4, 2002, is entered into by and between St. John Knits, Inc., a California corporation (the &#147;Company&#148;), and Bob Gray, an individual (the &#147;Consultant&#148;).
</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">In consideration of the mutual covenants, terms and conditions set forth herein, the parties agree as follows:
</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">1.<B> <U>Duties of Consultant</U></B>. In connection with the Company&#146;s general operations, Consultant
agrees to advise and consult with the Company as reasonably requested by the Company from time to time during the Term. The Consultant agrees to perform such services conscientiously and to the best of his ability. </FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">2.<B> <U>Term</U></B>. This Agreement will commence as of November 4, 2002 and end on November 3, 2005, unless terminated sooner in
accordance with the provisions hereof. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B></B>3.<B> <U>Compensation</U>. </B></FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">&nbsp;&nbsp;&nbsp;(a) In consideration of Consultant&#146;s duties under Section 1, the Company shall pay Consultant as
follows: </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:13%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(1) Year 1 of the Term - $500,000. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
STYLE="margin-left:13%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(2) Year 2 of the Term - $500,000, subject to a dollar for dollar reduction (offset), up to $250,000, for stock &#147;put&#148;&nbsp;back to Vestar/Gray LLC in accordance
with the terms of Section 3.11 of the Stockholders Agreement in Years 1 and 2 &nbsp;of the Term. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:13%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(3) Year 3 of
the Term - $250,000. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">&nbsp;&nbsp;&nbsp;All amounts shall be paid in arrears in twelve (12) equal
monthly installments, beginning with the first payment due on December 3, 2002. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000">&nbsp;&nbsp;&nbsp;(b) Unless otherwise set forth herein, Consultant shall be responsible for all expenses incurred in performing services hereunder, excluding all reasonable expenses of travel, entertainment and living expenses while
away on business at the request of, or in the service of, the Company. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">4.<B> <U>Independent Contractor</U></B>.
The Consultant acknowledges that he is being engaged on an independent contractor basis hereunder, and that the Consultant will not be eligible for benefits generally available to the employees of the Company, including but not limited to vacation
pay, sick leave, retirement benefits, social security, worker&#146;s compensation, health or disability benefits, or unemployment insurance benefits. No compensation to be paid to the Consultant for his consulting services under this Agreement will
be subject to any withholding or deductions required by local, state or federal law with respect to employees. </FONT></DIV>
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 <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">5.<B> <U>No Representation of the Company</U></B>. The Consultant agrees that it
will not (i) enter into any agreements, arrangements or undertakings binding on or on behalf of the Company or for the benefit of the Company or (ii) make representations that he has authority to act for or represent that he is engaged by the
Company in any capacity other than as a consultant during the Term, except as authorized by an executive officer of the Company in writing. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000">6.<B> <U>Intellectual Property</U></B>. Any and all inventions, discoveries, developments and innovations conceived by Consultant during his engagement relative to the duties under this Agreement shall
be the exclusive property of the Company, and Consultant hereby assigns all right, title and interest in the same to the Company. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000">7.<B> <U>Confidentiality</U></B>. The Consultant acknowledges that he will have access to, and that there will be disclosed to him, information of a confidential and/or trade secret nature that has great value to and that constitutes
a substantial basis and foundation upon which the business of the Company is predicated (&#147;Confidential Information&#148;). During the Term and thereafter, the Consultant shall keep all Confidential Information in confidence and shall not
disclose any Confidential Information to any other person, except (i) to the Company&#146;s personnel on a &#147;need-to-know&#148; basis and other persons designated in writing by an executive officer of the Company, (ii) to the extent such
disclosure may be required by law, (iii) if such information hereafter becomes lawfully obtainable from other sources, or (iv) to the extent such duty as to confidentiality is waived in writing by an executive officer of the Company. Without the
express written consent of an executive officer of the Company, the Consultant shall not use or permit to be used any Confidential Information for the gain or benefit of any party outside of the Company or for the Consultant&#146;s gain or benefit
outside the scope of the Consultant&#146;s engagement by the Company. The Consultant agrees to deliver promptly to the Company on termination of this Agreement, or at any other time that the Company may so request, all memoranda, notes, records,
reports, and other documents (and all copies thereof) relating to Confidential Information and/or the business of the Company that it obtained while employed by or otherwise serving or acting on behalf of the Company or any of its subsidiaries.
</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">8.<B> <U>Indemnification</U></B>. The Company shall indemnify and hold harmless the Consultant from and against
any and all claims, expenses and liabilities (including, without limitation, attorneys&#146; fees and costs of investigation and defense) it may incur by reason of the Consultant providing services to or for the Company by virtue of this Agreement
so long as Consultant acted in good faith and in a manner Consultant reasonably believed to be in the best interests of the Company. Consultant shall indemnify and hold harmless the Company from and against any and all claims, expenses and
liabilities (including, without limitation, attorneys&#146; fees and costs of investigation and defense) it may incur by reason of the Consultant providing services to or for the Company that are performed in bad faith, recklessly or in violation of
law by Consultant. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">9.<B> <U>Termination</U></B>. If Consultant fails or refuses to comply with the written
policies or reasonable directive of the Company, is guilty of serious misconduct in connection with performance hereunder, or materially breaches provision of this Agreement, then the Company at any time may terminate this Agreement immediately upon
written notice to the Consultant. Also, Consultant may terminate this Agreement immediately upon written notice to the Company. </FONT></DIV>
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 <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">10.<B> <U>Choice of Law/Arbitration</U></B>. The laws of the State of California
shall govern this Agreement. Any controversies arising out of the terms of this Agreement or its interpretation shall be settled in Orange County, California in accordance with the employment rules of JAMS, and the judgment upon award may be entered
in any county having jurisdiction thereof. If the parties cannot agree on an arbitrator, then the individual arbitrators selected by each party shall elect the arbitrator. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">11.<B> <U>Miscellaneous</U></B>. This Agreement may be modified only with a written instrument duly executed by each of the parties. No waiver by any party of any breach of
this Agreement will be deemed to be a waiver of any preceding or succeeding breach. The Consultant acknowledges and agrees that the Company&#146;s remedy at law for any breach of the Consultant&#146;s obligations hereunder would be inadequate, and
agrees and consents that temporary and permanent injunctive relief may be granted in any proceeding which may be brought to enforce any provision of this Agreement. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">12.<B> <U>Entire Understanding</U></B>. This Agreement, along with the Separation Agreement dated November 3, 2002, between the Company, the Consultant and St. John Knits
International, Incorporated, constitutes the entire understanding and agreement of the parties, and any and all prior agreements, understandings, and representations, either written or oral, are of no further force and effect. </FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">13.<B> <U>Notices</U></B>. For purposes of this Agreement, notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when either (i) personally delivered or (ii) mailed by United States registered mail, return receipt requested, postage prepaid, as follows: </FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
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<TD VALIGN="top" WIDTH="25%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">If to the Company:</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="48%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">St. John Knits, Inc.</FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000">17622 Armstrong Avenue</FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Irvine, CA 92614</FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000">Attn: CEO</FONT></DIV> </TD> </TR>
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<TD VALIGN="top" WIDTH="25%"> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">If to Consultant:</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" WIDTH="48%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Bob Gray</FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000">5 Masters Circle</FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Newport Coast, CA 92657</FONT></DIV> </TD> </TR>
 </TABLE> </DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">or such other address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effective only upon receipt. </FONT></DIV>
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 <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>EXECUTED</B> as of the date first mentioned above, at Orange County,
California. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="3" WIDTH="37%"> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>ST. JOHN KNITS, INC. </B></FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">a
California corporation</FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> </TD> </TR>
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<TD HEIGHT="16"> </TD> </TR>
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<TD VALIGN="top" WIDTH="2%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">By:</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" WIDTH="37%"> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">/s/&nbsp;&nbsp;&nbsp;&nbsp;Bruce Fetter &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></DIV> <HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD>
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<TD VALIGN="top" COLSPAN="3" WIDTH="37%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Name: Bruce Fetter</FONT></DIV> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman"
SIZE="2" COLOR="#000000">Title: Co-Chief Executive Officer</FONT></DIV> </TD> </TR>
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<TD VALIGN="top" COLSPAN="3" WIDTH="37%"> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>BOB GRAY, </B></FONT></DIV> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">an individual</FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> </TD> </TR>
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<TD HEIGHT="16"> </TD> </TR>
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<TD VALIGN="top" WIDTH="2%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">By:</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" WIDTH="37%"> <DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">/s/&nbsp;&nbsp;&nbsp;&nbsp;Bob Gray &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></DIV> <HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD> </TR>
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<TD VALIGN="top" COLSPAN="3" WIDTH="37%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Name: Bob Gray</FONT></DIV> </TD> </TR>
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 <P></P> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">4 </FONT></DIV>

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