Document:

TSR INC AND SUBSIDIARIES

                                  EXHIBIT 10.4

                             TO REPORT ON FORM 10-K

                         FISCAL YEAR ENDED MAY 31, 2002

                              EMPLOYMENT AGREEMENT

     AGREEMENT, dated as of June 1, 2002 between TSR, INC., having its principal
office at 400 Oser Avenue, Hauppauge, New York 11788 (the "Company"), and JOSEPH
F. HUGHES, residing at XXXXX, New York ("Hughes").

     WHEREAS, Hughes has been employed as the Company's Chief Executive Officer
since inception of the Company and has been a key factor in its growth and
development; and

     WHEREAS, the Company's Board of Directors desires to encourage and
emphasize during the intermediate term, the continued building of the
fundamental businesses and acquisitions of new businesses all for the purposes
of improving operating results.

     WHEREAS, The Company's Board of Directors has determined that it would be
advantageous for the Company to implement its current philosophy through the
leadership of Hughes; and

     WHEREAS, the Board of Directors deems it in the best interest of the
Company in furtherance of the foregoing to insure to the extent possible, the
continued employment and availability of Hughes and Hughes is willing to
continue his employment with the Company pursuant to the terms and conditions
herein:

     NOW, THEREFORE, the parties agree as follows:

     1. The Company employs Hughes as President and Chief Executive Officer of
the Company to perform such duties consistent with such position and such other
related duties as may be assigned to him from time to time by the Company's
Board of Directors. Hughes shall be employed at the Company's executive offices,
primarily in the metropolitan New York area.

     2. During the term of this Agreement, Hughes shall devote his best efforts,
knowledge, skill and all of his working time and attention to the performance of
his duties hereunder. Except in the case of earlier termination as herein
specifically provided, the term of this Agreement (the "term") shall commence as
of June 1, 2002 and terminate on May 31, 2007.

     3. (a) As compensation for all services to be rendered by Hughes in all
capacities hereunder, including services as an officer and director of the
Company or any of its subsidiaries, the Company will pay or cause to be paid to
Hughes during the Term (i) a base salary (the "Base Salary") of $437,000 as
adjusted pursuant to Section 4(b), payable in equal monthly or more frequent
installments, as the Company shall determine:

                                     Page 31
<PAGE>

     (b) The Base Salary shall be adjusted at the beginning of each Fiscal Year
following the Fiscal Year ending May 31, 2003, by adding thereto an amount equal
to the Incremental Percentage (as defined and determined below) multiplied by
the Base Salary, as previously adjusted, as in effect for the Fiscal Year just
ended. If the Consumer Price Index ("CPI") shall increase by 8% or more above
the CPI from the beginning of the Fiscal Year just ended until the end of such
Fiscal Year, the "Incremental Percentage" shall be 8%. If the increase in such
CPI shall be less than 8%, then the Incremental Percentage shall be equal to
such percentage increase, but in no event shall the Incremental Percentage be
less than 3%. As used herein, the CPI for any Fiscal Year end shall be equal to
the "Consumer Price Index -- All Items" for the United States as issued by the
Bureau of Labor Statistics of the Department of Labor, or any index which
replaces the CPI, if no index is published for the beginning of such Fiscal
Year, the first date preceding such date for which such index is published.

     (c) In addition to the compensation set forth in (a) and (b) Hughes shall
be entitled to a discretionary bonus as such may be awarded to him by the Board
of Directors. The Board of Directors shall on account of each Fiscal Year
commencing with the Fiscal Year ending May 31, 2003 consider the granting of
such bonus prior to 90 days following the expiration of such Fiscal Year. In
considering the grant of the discretionary bonus, the Board of Directors shall
consider among other things the performance of the Company during the Fiscal
Year and the extent to which Company objectives were achieved. Notwithstanding
the foregoing, should the Company earn Pre-Tax Profits during any Term Year in
excess of $1,000,000 or more, then the minimum discretionary bonus which Hughes
shall be entitled to receive is an amount equal to 7.5% of such Pre-Tax Profits.
In the event such Pre-Tax Profits is less than $1,000,000, the maximum amount of
discretionary bonus which Hughes shall be entitled to receive shall be limited
to $50,000. For purposes of this provision, Pre-Tax Profits shall mean the
Company's profits as reported during the fiscal successive year ending May 31,
2002, as determined in accordance with generally accepted accounting principles.
There shall be adjustments made to Pre-Tax Profits for the amount of any
extraordinary items of income or loss attributable to such Fiscal Year.

     4. Hughes shall be entitled to reimbursement for expenses, provided that
such expenses are reasonable and are incurred in connection with the performance
of his duties hereunder. Such expense reimbursement shall be in accordance with
and subject to the expense reimbursement policies and procedures applicable to
senior executives, as in effect from time to time during the Term of this
Agreement. In addition, Hughes shall be entitled to all benefits and perquisites
generally available during the Term to the Company's senior executive officers
as well as those benefits and perquisites, which he has been receiving prior to
the date of this Agreement. Such perquisites shall include membership in a
country club and use of a Company owned or leased automobile.

     5. During each full Fiscal Year of Hughes' employment hereunder, he shall
be entitled to four weeks of vacation time, which to the extent not taken, shall
be non-cumulative and non-compensatory.

     6. In the event of Hughes' death during the Term, this Agreement shall
terminate immediately, and Hughes' legal representatives shall be entitled to
receive from the Company in one lump sum an amount equal to his then Fiscal Year
rate of compensation for an additional period equal to one year. In addition,
within 120 days following completion of the Fiscal Year, Hughes' legal
representatives shall also be entitled to receive a prorata portion of the
discretionary bonus for which Hughes would have been entitled to at the end of
the Fiscal Year had his death not occurred during such year.

                                     Page 32
<PAGE>

     7. If, during the Term, Hughes is unable to perform his duties hereunder on
account of illness, accident or other physical or mental incapacity, and such
illness or other incapacity shall continue for a period of more than six months,
the Company shall have the right, on fifteen days' written notice (given after
such period) to Hughes, to terminate this Agreement. In such event, the Company
shall be obligated to pay to Hughes his Basic Compensation at the annual rate
prevailing at the time of such termination for an additional period equal to the
difference between two years from the date which such disability commenced and
the period during which Hughes was absent from work as a result of such
disability through the date of termination. However, if, prior to the date
specified in such notice, Hughes' illness or incapacity shall have terminated
and he shall have taken up the performance of his duties hereunder, Hughes shall
be entitled to resume his employment and receive the compensation payable
hereunder as though such notice had not been given.

     8. During and after the Term, Hughes will not disclose to anyone (except to
the extent reasonably necessary for Hughes to perform his duties hereunder) any
"confidential information" as such term is hereinafter referred to concerning
the business or affairs of the Company or of any of its affiliates or
subsidiaries. "Confidential information" shall mean all information which Hughes
may have acquired in the course of or as incident to his employment or prior
dealings with the company or with any of its affiliates, including, without
limitation, customer lists, business or trade secrets of, or methods of
techniques used by, the Company or any of its affiliates or subsidiaries in
their respective businesses, or any information concerning the customers of any
of them. For purposes of this section, confidential information shall not
include information which (i) was known to the public prior to the date of
communication thereof by Hughes, (ii) becomes known to the public thereafter
other than through communications by Hughes, or (iii) becomes known to Hughes
subsequent to the date of his termination of employment with the Company.

     9. Hughes acknowledges that his services and responsibilities are of unique
and particular significance to the Company and that his position with the
Company will give him a close knowledge of the Company's and its affiliates'
policies and trade secrets. Hughes further acknowledges that in the event the
Company loses the services of Hughes, it could be subject to the loss of
valuable business relationships which have been cultivated for the Company by
Hughes. Hughes acknowledges that as a result of the loss of any of the
foregoing, the Company would sustain substantial and irreparable damages.
Therefore, in consideration of the foregoing, Hughes agrees that, in the event
that there is a termination of this Agreement (including as a result of Hughes'
breach), except where the termination is a result of a breach of this Agreement
by the Company, he will not, during the unexpired portion of the original
contemplated Term and for a period of two years after such period with respect
to the restriction in sub-paragraph (ii) below, directly or indirectly, on
behalf of himself or others:

     (i) engage in any business, engaged in by the Company during a period of 12
months prior to the termination of Hughes' employment with the Company which is
competitive with any significant business engaged in by the Company, in any
jurisdiction where the Company engaged or engages in such business. For purposes
of determining whether any aspects of the Company's business is significant such
business shall be deemed to be significant if during the 12 month period prior
to the termination of Hughes' employment with the Company the Company either (i)
recognized revenues equal to 2% of its aggregate revenue from such business
recognized or (ii) Pre-Tax Profits equal to 5% of the Company's Pre-Tax Profits,
during such period.

                                     Page 33
<PAGE>

     (ii) call on for the purpose of soliciting, diverting or taking away from
the Company or its affiliates, or employ, any person who is an employee of the
Company or any of its affiliates or any person who was an employee of the
Company or its affiliates during the period of Hughes' employment with the
Company, except that this restriction shall not apply to any person who has not
been employed by the Company for a period of one year prior to the date of such
solicitation.

     10. Except as otherwise provided in this Agreement, the Company shall have
the right to terminate this Agreement and Hughes' employment hereunder only for
a Justifiable Cause and Hughes shall have the right to terminate this Agreement
and his employment hereunder only for Justifiable Cause. "Justifiable Causes" as
it relates to a termination by the Company shall be limited to (i) a material
breach by Hughes of any material provision of the Agreement, but only if after
reasonable notice and only after such notice Hughes fails to cure such breach
within a reasonable time or (ii) if such breach is not subject to cure, Hughes
shall fail on an on-going basis to comply thereafter with the provisions of this
Agreement with respect to which he was in such breach within a reasonable time
period. In the event the Company terminates this Agreement other than for
Justifiable Cause, or Hughes terminates this Agreement for Justifiable Cause,
the damages to be awarded to Hughes shall be the value of all compensation and
benefits including without limiting the generality of the foregoing, bonuses,
options, incentive payments, benefits under other plans and programs or
perquisites or fringes sponsored by the Company. Nothing contained herein shall
restrict the Company from asserting such rights as it may have to assert
defenses regarding the payment or in support of mitigation of damages.

     11. Hughes represents and warrants to the Company that he is not under any
obligation of a contractual or other nature to any person, firm or corporation
other than the Company which would be inconsistent or in conflict with this
Agreement, or which would prevent, limit or impair in any way the performance by
him of his obligations hereunder.

     12. The waiver by either party of a breach of any provision of this
Agreement shall not operate as or be construed as a waiver of any subsequent
breach thereof. Any notice referred to herein shall be sufficient if furnished
in writing, and delivered in person or mailed by certified mail (return receipt
requested) to the respective parties at his or its address set forth above or
such other address as either party may from time to time designate in writing.

     13. Hughes' rights and interest hereunder may not be assigned, pledged or
encumbered by him except with the written consent of the Company.

     14. This Agreement supersedes any and all prior written or oral agreements
between the company and Hughes, and may not be amended or modified except by
writing signed by the party to be charged.

     15. This Agreement is executed and delivered in the State of New York and
shall be construed and enforced in accordance with the laws and decisions of
said State applicable to contract made and performed entirely within said State.

                                     Page 34
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

TSR, INC.

/s/ JOSEPH F. HUGHES                By:      /s/ ROBERT A. ESERNIO
---------------------------                  --------------------------
Joseph F. Hughes                             Robert A. Esernio
President                                    Director

                                             /s/ JAMES J. HILL
                                             --------------------------
                                             James J. Hill
                                             Director

                                             /s/ JOHN H. HOCHULI, JR
                                             --------------------------
                                             John H. Hochuli, Jr.
                                             Director

                                     Page 35EXHIBIT 10.127

                           TRADEMARK LICENSE AGREEMENT

     This Agreement dated June _, 2002, the last date any party signed below,
("Effective Date") by and between Aris Industries, Inc. a New York Corporation,
located and doing business at 1411 Broadway, New York, New York 10018 ("Aris");
XOXO Clothing Company, Inc., a Delaware corporation, located and doing business
at 1411 Broadway, New York, New York 10018 ("XOXO") BP Clothing, Inc. ("BP") and
Europe Craft Imports, Inc., a New Jersey corporation, located and doing business
at 475 Fifth Avenue, New York, New York 10017 (hereinafter "ECI") (hereinafter
collectively "Licensor") on the one hand and Adamson Apparel, Inc., a Delaware
corporation (hereinafter "Licensee"), on the other.

     WHEREAS, XOXO is the owner of the trademark XOXO for women's and children's
clothing and shoes and is the owner of U.S. Registration No. 2,484,317 for the
mark XOXO IN AMERICA AND ABROAD & Design and U.S. Registration No. 2,043,508 for
the mark XOXO IN AMERICA AND ABROAD & Design (collectively hereinafter the
"Trademarks");

     WHEREAS, ECI owns the trademark MEMBERS ONLY for clothing and apparel and
is the owner of, inter alia, U.S. Registration Nos. 1,086,489; 1,256,728;
1,249,072; 1,412,098; 1,408,149; 2,178,733; and 2,193,994 for the mark MEMBERS
ONLY and U.S. Registration No. 2,159,622 for the mark MEMBERS ONLY & Design;

     WHEREAS, BP is the exclusive licensee of the trademark BABY PHAT for
clothing;

     WHEREAS, XOXO, BP and ECI are wholly owned subsidiaries of Aris;

     WHEREAS, Licensee is in the business of, among other things, distributing
and selling clothing;

<PAGE>

     WHEREAS, Licensee is desirous of obtaining an exclusive license to
manufacture, sell, distribute, sell and advertise clothing and apparel under the
trademarks XOXO, MEMBERS ONLY and BABY PHAT (hereinafter "Trademarks");

     NOW, THEREFORE, in consideration of the mutual promises and obligations of
the respective parties, it is hereby contracted, covenanted and agreed as
follows:

          1. Grant of License for the Licensed Products - Subject to the terms
     and conditions of this Agreement, Licensor hereby grants to Licensee an
     exclusive license to use the XOXO trademark and MEMBERS ONLY trademark to
     manufacture, market, promote, advertise and sell women's, men's children's
     clothing, jeanswear and sportwear and the BABY PHAT trademark to
     manufacture, market, promote, sell and advertise the goods permitted in the
     Baby Phat license agreement (hereinafter the "Licensed Products") in the
     United States, not including United States territories and possessions
     (hereinafter the "Territory") during the Term of this Agreement.

          2. Rights Not Granted - Licensee agrees and covenants that it will not
     use the Trademarks for any goods or services, except as expressly provided
     for in this Agreement.

          3. Rights Reserved By Licensor - Licensor retains all rights to
     manufacture, distribute, sell, advertise, promote and market any products,
     other than the Licensed Products, bearing the Trademarks. Licensor further
     retains all rights to establish, operate and maintain retail stores and
     outlet stores products bearing the Trademarks.

                                       2
<PAGE>

          4. Ownership of Trademarks - Licensor represents and warrants that it
     is the sole owner of the Trademarks, free and clear of all liens, except
     that it is the licensee of the BABY PHAT trademark and does not own the
     BABY PHAT trademark and there is an existing lien of CIT Commercial Group
     Services, Inc. on the XOXO mark to secure a loan. Licensee agrees that all
     right, title and interest to all registrations, applications and common law
     rights to the Trademarks, except the BABY PHAT trademark, are the exclusive
     property of Licensor and that Licensee shall not challenge the validity of
     the marks or Licensor's ownership thereof.

          5. Best Efforts - Licensee shall use its best efforts to manufacture,
     market, sell, distribute and advertise the Licensed Products in order to
     meet the demand for the Licensed Products in the Territory. Licensee shall
     maintain an organization that is capable of effectively soliciting orders
     for the sales of the Licensed Products in the Territory and meet the demand
     for the Licensed Products in the Territory.

          6. Term - This Agreement shall become effective upon execution by the
     parties hereto and shall remain in force for a period of one (1) calendar
     years and three (3) months (hereinafter "First Term"). The First Term shall
     end on December 31, 2003. Thereafter, this Agreement may be automatically
     renewed for a further one (1) year term (hereinafter "Renewal Term"),
     unless Licensee notifies Licensor of its intention to terminate at least
     three (3) months before the expiration of the First Term or unless Licensor
     provides written notice of cancellation three (3) months prior to the end
     of the First Term.

                                       3
<PAGE>

          7. Royalty Payments - In consideration of the license granted herein,
     Licensee agrees to pay Licensor in an amount equal to 6 percent (6%) of the
     Nets Sales of the Licensed Products. Net Sales shall mean Licensee's gross
     sales, as determined by the gross invoice amount billed to customers of the
     Licensed Products, less actual returns, freight and bona fide trade
     discounts actually granted by Licensee. Licensee shall provide Licensor
     with reasonable documentation evidencing any and all allowances,
     deductions, returns, or credits.

          8. Licensee's Statements - The Licensee shall furnish to Licensor with
     each within 30 days of the end of each quarterly period a statement (the
     "Statement"), setting forth (i) a complete description, including the total
     number, of Licensed Products manufactured by the Licensee during the
     relevant three month period covered by the Statement, and (ii) a complete
     description, including the total number, stock number, item, units sold,
     description, quantity shipped, customer, gross invoice, amount billed to
     customer, less discounts, allowances, returns, and reportable sales for
     each of the Licensed Products shipped or sold by the Licensee during the
     relevant three month period covered by the Statement. Licensee shall keep
     true, complete and accurate records and books of account showing all of its
     sales and shipments of Licensed Products.

          9. Annual Reports - For each calendar year during the term of this
     Agreement, Licensee shall submit to Licensor an annual statement for each
     calendar year within ninety (90) days period ending December 31 ("Annual
     Report"). The Annual Report shall detail and provide a cumulative account
     of all transactions of the Licensed Products, including, without
     limitation, all sales, all returns, all bona fide trade

                                       4
<PAGE>

     discounts, the direct cost of the Licensed Products included in the Net
     Sales for the year and all royalties paid and payable, all Licensed
     Products returned as substandard, all orders cancelled for non-delivery and
     such other information as Licensor may, from time to time, reasonably
     request.

          10. Marking - As a condition to the grant of rights hereunder,
     Licensee agrees to mark the Licensed Products (including samples and
     designs) with the appropriate common law or statutory trademark or
     copyright notice, TM or (R) or (C), as is appropriate.

          11. Quality of Goods/Product Standards - The parties agree that
     Licensee is fully familiar with the quality standards of Licensor. Licensee
     agrees to meet Licensors quality standards for all Licensed Products.
     Licensor hereby appoints Licensee as its agents for inspection and
     maintaining the high quality standard whenever the Trademarks are used
     pursuant to this Agreement. In the event Licensee receives written notice
     from Licensor that the Licensed Products do not comply with Licensor's
     quality standards, Licensee shall cure such breach within twenty-one (21)
     days of receipt of such notice.

          12. Trademarks Copyrights and Patents - Licensor may seek, at its own
     expense, to obtain copyright, trademark or patent protection for the
     Licensed Products. It is agreed to by the parties that Licensor shall own
     all copyrights, trademarks, patents and designs and all modifications and
     improvements thereto made in the Licensed Products pursuant to the terms of
     this Agreement.

          13. Licensor's Rights. All use of the Trademarks by Licensee and in
     any variation thereof shall inure to the exclusive benefit of Licensor. All
     rights in the

                                       5
<PAGE>

     Trademarks other than those specifically granted to Licensee hereunder are
     reserved to Licensor.

          14. Goodwill - Licensee acknowledges and agrees that all goodwill and
     publicity associated with the Trademarks, copyrights or designs of the
     Licensed Products shall belong exclusively to Licensor.

          15. Termination - Licensor may terminate this agreement on thirty (30)
     days notice if Licensee fails to sell Licensed Products for a period of
     more than sixty (60) days. Either party may terminate this agreement on
     thirty (30) days notice for a material breach default or failure to
     perform. If, within the thirty (30) days the breach, default or failure to
     perform is not cured, this Agreement may be terminated.

          16. Infringement - Licensee agrees that if during the Term of this
     Agreement any Trademarks shall in the opinion of Licensee be infringed or
     used without authorization by any other person, firm, corporation or other
     entity, Licensor shall have the sole and exclusive right, but not the
     obligation, to take any and all steps in its name, or in the name of the
     Licensee or in their joint names, as Licensor (in its sole discretion) may
     deem advisable, including, without limitation, the institution of any
     action or proceeding to seek damages for and/or to enjoin such infringement
     or unauthorized use, and to prosecute, settle, compromise or otherwise
     dispose of the same.

          17. No Agency - Nothing in this Agreement shall constitute the parties
     hereto as principal and agent, partners or joint venturers for any purpose
     and Licensee shall have no power or authority to bind Licensor or to incur
     any obligations on Licensor's behalf.

                                       6
<PAGE>

          18. Entire Agreement - This Agreement, together with the exhibits
     hereto, sets forth the entire understanding of the parties with respect to
     its subject matter and merges and supersedes all prior understandings of
     the parties hereto with respect to its subject matter.

          19. Successors and Assigns - This Agreement shall be binding on,
     enforceable against and inure to the benefit of the parties hereto and
     their respective successors and permitted assigns, and nothing herein is
     intended to confer any right, remedy or benefit upon any other person.
     Neither party may assign its rights or delegate its obligations under this
     Agreement without the express written consent of the other party.

          20. Governing Law; Jurisdiction - This Agreement shall in all respects
     be governed by and construed in accordance with the laws of the State of
     New York applicable to agreements made and to be performed wholly within
     such jurisdiction. Each of the parties hereto expressly and irrevocably
     submits to the non-exclusive personal jurisdiction of the United States
     District Court, Southern District of New York and to the jurisdiction of
     any other competent court of the State of New York located in New York City
     in connection with all disputes arising out of or in connection with this
     Agreement or the transactions contemplated herein and agrees not to
     commence any litigation relating thereto, except in such courts.

          21. Savings Clause - If any provision of this Agreement is held to be
     invalid or unenforceable by any court or tribunal of competent
     jurisdiction, the remainder of this Agreement shall not be affected
     thereby, and such provision shall be carried out as

                                       7
<PAGE>

     nearly as possible according to its original terms and intent to eliminate
     such invalidity or unenforceability.

          22. Counterparts - This Agreement may be executed in multiple
     counterparts, each of which shall be deemed an original, but all of which
     together shall constitute one and the same instrument.

          23. Construction - Headings contained in this Agreement are for
     convenience only and shall not be used in the interpretation of this
     Agreement. References herein to the Agreement shall be deemed to include
     all Exhibits hereto. As used herein, the singular includes the plural, and
     the masculine, feminine and neuter gender each includes the others where
     the context so indicates.

          24. Confidentiality - The parties, their respective subsidiaries,
     affiliates, employees, shareholders, officers, attorneys, successors and
     assigns, agree to maintain the terms of this Agreement on a confidential
     basis. The terms of the Agreement may only be disclosed as required to
     enforce this Agreement or in response to legal process or court order on
     notice to the other party and, to the extent permitted, subject to a
     protective order that maintains confidentiality.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                                 Aris Industries, Inc.:

                                     By:
                                             -----------------------------------
                                             Arnold H. Simon

                                     Title:  Chief Executive Officer
                                             -----------------------------------

                                     Date:
                                             -----------------------------------

                                       8
<PAGE>

                                 XOXO Clothing Company:

                                     By:
                                             -----------------------------------
                                             Arnold H. Simon

                                     Title:  Chief Executive Officer
                                             -----------------------------------

                                     Date:
                                             -----------------------------------

                                 European Craft Imports, Inc.

                                     By:
                                             -----------------------------------
                                             Arnold H. Simon

                                     Title:
                                             -----------------------------------

                                     Date:
                                             -----------------------------------

                                 BP Clothing, Inc.

                                     By:
                                             -----------------------------------
                                             Arnold H. Simon

                                     Title:
                                             -----------------------------------

                                     Date:
                                             -----------------------------------

                                 Adamson Apparel, Inc.

                                     By:
                                             -----------------------------------

                                     Title:
                                             -----------------------------------

                                     Date:
                                             -----------------------------------

                                       9

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