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                                                                   EXHIBIT 10.21

                        TRANSITION AGREEMENT AND RELEASE

      THIS TRANSITION AGREEMENT AND RELEASE (this "AGREEMENT") is made by and
between David Kleinberg (the "EXECUTIVE") and Digital Impact, Inc. (the
"COMPANY"; together with the Executive, the "PARTIES") and is effective eight
days after the date any party last executes it (the "EFFECTIVE DATE") provided
that Executive does not revoke it prior to that date:

      WHEREAS, the Executive has been employed by the Company as its Senior Vice
President, Marketing;

      WHEREAS, the parties desire that the Executive continue as an active
employee of the Company through March 31, 2003 (the "TRANSITION PERIOD"), after
which he will be placed on an unpaid leave of absence through July 31, 2003
("LEAVE OF ABSENCE"), with such Transition Period or Leave of Absence
potentially ending earlier upon the Executive's Resignation Date (as defined
below);

      WHEREAS, the Company and the Executive have entered into an Employee
Proprietary Information and Inventions Agreement (the "CONFIDENTIALITY
AGREEMENT"); and

      WHEREAS, the Parties, and each of them, wish to resolve any and all
disputes, claims, complaints, grievances, charges, actions, petitions and
demands that the Executive may have against the Company and that the Company may
have against the Executive as defined herein, including, but not limited to, any
and all claims arising or in any way related to the Executive's employment with,
or separation from, the Company;

      NOW THEREFORE, in consideration of the promises made herein, the Parties
hereby agree as follows:

      1. Transition Period. During the Transition Period:

            (a) the Executive's employment with the Company shall continue,
provided that as of February 1, 2003, the Executive shall no longer bear the
title of Senior Vice President, Marketing and shall no longer be an executive
officer of the Company or have signatory authority.

            (b) the Company may request, and the Executive agrees to provide,
transition assistance as respects matters being managed by the Executive.
Notwithstanding anything to the contrary in this Section 1, during the
Transition Period, the Executive may also pursue and obtain other employment
opportunities without the pursuit of such employment representing a breach of
his obligations under this Agreement (but subject to the terms of the
Confidentiality Agreement). Should the Executive obtain other full-time
employment during the Transition Period, the Executive's "RESIGNATION DATE"
shall be considered to be the day prior to the Executive's commencing such
employment. The Executive shall notify the Company of his intent to commence
such employment within no less than a week prior to doing so, or within a week
after he accepts such employment, whichever is earlier. All benefits set forth
in this Agreement not previously terminated shall cease as of the Resignation
Date.
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            (c) the Executive shall receive the following benefits:

                  (1) The Executive may continue to represent to the public that
he is employed by the Company holding the title of Vice President, Special
Projects.

                  (2) The Company shall continue to pay the Executive his
current base salary, less applicable withholding and deductions. The Company
shall pay the Executive an additional lump-sum severance payment of $18,333.33
on March 31, 2003, less applicable withholding and deductions. The payments set
forth in this Section 1(c)(2) represent the Executive's entire cash severance
due under this Agreement.

                  (3) The Executive's stock options shall continue to vest in
accordance with the terms of the Company's 1998 Stock Plan (the "PLAN") and the
option agreements applicable to such grants.

                  (4) The Company shall continue to finance Executive's medical,
dental and other health coverage benefits in the same manner as the Company has
provided such coverage prior to the Transition Period. Executive may continue to
participate in the Company's qualified defined contribution plan.

                  (5) The Company shall continue to provide access for the
Executive to one voicemail account and one email account at the Company, as well
as access to Jupiter and Forrester research to the extent available to Company
employees generally. The Executive may retain the Company-issued telephone and
laptop computer currently in the Executive's possession.

            Except for the benefits set forth in this Section 1, all other
company benefits and vesting shall cease as of January 31, 2003.

      2. Leave of Absence. During the Leave of Absence:

            (a) The Executive may continue to represent to the public that he is
employed by the Company holding the title of Vice President, Special Projects.

            (b) The Executive's stock options shall cease vesting and shall be
treated under the Plan in the same manner as stock options of other employees
placed on an unpaid leave of absence.

            (c) The Company shall continue to finance Executive's medical,
dental and other health coverage benefits in the same manner as the Company has
provided such coverage prior to the Transition Period. Executive may continue to
participate in the Company's qualified defined contribution plan to the extent
permitted under the terms of such plan.

            (d) The Company shall continue to provide access for the Executive
to one voicemail account and one email account at the Company, as well as access
to Jupiter and Forrester research to the extent available to Company employees
generally. The Executive may

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retain the Company-issued telephone and laptop computer currently in the
Executive's possession.

            (e) The Company shall reimburse the Executive for up to $5,000 of
outplacement, job search and professional development expenses generally. The
Company shall pay any unused portion of this amount to the Executive, less
applicable withholdings and deductions, upon the earlier of July 31, 2003 and
the Resignation Date.

            Except for the benefits set forth in this Section 2, all other
company benefits and vesting shall cease as of March 31, 2003.

      3. Resignation. The Executive shall resign from his employment with the
Company and any other office he may hold with any subsidiary of the Company as
of the Resignation Date. The Executive shall execute any additional
documentation necessary to remove the Executive from any position he may have at
any such subsidiary and hereby grants the Company a power of attorney for the
purpose of executing any such document. Following the Resignation Date, the
Executive may retain possession of the Company-issued telephone and laptop
computer currently in the Executive's possession. The Executive shall be
responsible for all charges associated with such equipment following January 31,
2003.

      4. Confidential Information. The Executive shall continue to maintain the
confidentiality of all confidential and proprietary information of the Company
in accordance with the Confidentiality Agreement between the Executive and the
Company, according to the terms of that document. The Executive shall return all
of the Company's property and confidential and proprietary information in his
possession to the Company on the Effective Date.

      5. Payment of Wages. Subject to his receipt of any unpaid outstanding
amounts due for wages and vacation, the Executive acknowledges and represents
that the Company will have paid all salary, wages, bonuses, accrued vacation,
commissions and any and all other benefits due to the Executive.

      6. Executive's Release of Claims. The Executive agrees that the foregoing
consideration represents settlement in full of all outstanding obligations owed
to the Executive by the Company. The Executive, on his own behalf, and on behalf
of his respective heirs, family members, executors, and assigns, hereby fully
and forever releases the Company and its officers, directors, employees,
investors, shareholders, administrators, affiliates, divisions, subsidiaries,
predecessor and successor corporations, and assigns, from, and agree not to sue
concerning, any claim, duty, obligation or cause of action relating to any
matters of any kind, whether presently known or unknown, suspected or
unsuspected, that the Executive may possess arising from any omissions, acts or
facts that have occurred up until and including the Effective Date including,
without limitation:

            (a) any and all claims relating to or arising from the Executive's
employment relationship with the Company and the termination of that
relationship;

            (b) any and all claims relating to, or arising from, the Executive's
right to purchase, or actual purchase of shares of stock of the Company,
including, without limitation,

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any claims for fraud, misrepresentation, breach of fiduciary duty, breach of
duty under applicable state corporate law, and securities fraud under any state
or federal law;

            (c) any and all claims under the law of any jurisdiction including,
but not limited to, wrongful discharge of employment; constructive discharge
from employment; termination in violation of public policy; discrimination;
breach of contract, both express and implied; breach of a covenant of good faith
and fair dealing, both express and implied; promissory estoppel; negligent or
intentional infliction of emotional distress; negligent or intentional
misrepresentation; negligent or intentional interference with contract or
prospective economic advantage; unfair business practices; defamation; libel;
slander; negligence; personal injury; assault; battery; invasion of privacy;
false imprisonment; and conversion;

            (d) any and all claims for violation of any federal, state or
municipal statute, including, but not limited to, Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment
Act of 1967, the Americans with Disabilities Act of 1990, the Fair Labor
Standards Act, the Employee Retirement Income Security Act of 1974, The Worker
Adjustment and Retraining Notification Act, Older Workers Benefit Protection
Act; the California Fair Employment and Housing Act, and Labor Code section 201,
et seq. and section 970, et seq.;

            (e) any and all claims for violation of the federal, or any state,
constitution;

            (f) any and all claims arising out of any other laws and regulations
relating to employment or employment discrimination;

            (g) any claim for any loss, cost, damage, or expense arising out of
any dispute over the non-withholding or other tax treatment of any of the
proceeds received by the Executive as a result of this Agreement; and

            (h) any and all claims for attorneys' fees and costs.

      The Company and the Executive agree that the release set forth in this
section shall be and remain in effect in all respects as a complete general
release as to the matters released. This release does not, however, extend to
any obligations incurred under this Agreement nor does it extend to the
Executive's rights to an indemnity and defense from the Company and/or its
insurers to the extent he is entitled to one by virtue of his employment with
the Company, under governing law and/or Company agreements, bylaws, articles of
incorporation or other Company policies or practices.

      7. Company's Release of Claims. The Company, on its on behalf and on
behalf of its officers, directors, employees, investors, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns, hereby fully and forever release the Executive from,
and agree not to sue concerning, any claim, duty, obligation or cause of action
relating to any matters of any kind, whether presently known or unknown,
suspected or unsuspected, that the Company may possess arising from any
omissions, acts or facts that have occurred up until and including the Effective
Date including, without limitation:

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            (a) any and all claims relating to or arising from the Executive's
employment relationship with the Company and the termination of that
relationship;

            (b) any and all claims under the law of any jurisdiction including,
but not limited to, breach of contract, both express and implied; breach of a
covenant of good faith and fair dealing, both express and implied; trade secret
or securities law violations; promissory estoppel; negligent or intentional
interference with contract or prospective economic advantage; unfair business
practices; defamation; libel; slander; negligence; personal injury; assault;
battery; invasion of privacy; false imprisonment; and conversion;

            (c) any and all claims for violation of any federal, state or
municipal statute or constitutional provision;

            (d) any and all claims arising out of any other laws and regulations
relating to employment or employment performance; and

            (e) any and all claims for attorneys' fees and costs.

      The Company and the Executive agree that the release set forth in this
section shall be and remain in effect in all respects as a complete general
release as to the matters released. This release does not extend to any
obligations incurred under this Agreement.

      8. Acknowledgement of Waiver of Claims Under ADEA. The Executive
acknowledges that he is waiving and releasing any rights he may have under the
Age Discrimination in Employment Act of 1967 ("ADEA") and that this waiver and
release is knowing and voluntary. The Executive and the Company agree that this
waiver and release does not apply to any rights or claims that may arise under
ADEA after the Effective Date. The Executive acknowledges that the consideration
given for this waiver and release is in addition to anything of value to which
the Executive was already entitled. The Executive further acknowledges that he
has been advised by this writing that:

            (a) he should consult with an attorney prior to executing this
Agreement;

            (b) he has up to twenty-one (21) days within which to consider this
Agreement;

            (c) he has seven (7) days following his execution of this Agreement
to revoke the Agreement;

            (d) this Agreement shall not be effective until the revocation
period has expired; and

            (e) nothing in this Agreement prevents or precludes the Executive
from challenging or seeking a determination in good faith of the validity of
this waiver under the ADEA, nor does it impose any condition precedent,
penalties or costs for doing so, unless specifically authorized by federal law.

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      9. Civil Code Section 1542. The parties represent that they are not aware
of any claim by each against the other, except for the claims that are released
by this Agreement. The parties acknowledge that they have been advised by legal
counsel and are familiar with the provisions of California Civil Code Section
1542, which provides as follows:

            A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
            DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
            EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
            MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

      The parties, being aware of said code section, agree to expressly waive
any rights they may have thereunder, as well as under any other statute or
common law principles of similar effect.

      10. No Pending or Future Lawsuits. The parties represent that they have no
lawsuits, claims, or actions pending in their name, or on behalf of any other
person or entity, against the other party or any other person or entity referred
to herein. The parties also represent that they do not intend to bring any
claims on their own behalf or on behalf of any other person or entity against
the other party or any other person or entity referred to herein.

      11. Application for Employment. The Executive understands and agrees that,
as a condition of this Agreement, he shall not be entitled to any employment
with the Company and he hereby waives any right, or alleged right, of employment
or re-employment with the Company. The Executive further agrees that he will not
apply for employment with the Company.

      12. No Cooperation. The parties agree that they will not act in any manner
that might damage the other party for any act or event that occurs prior to the
Effective Date, other than any action each may take to enforce his or its rights
under this Agreement. Except as so limited, the parties agree that they will not
counsel or assist any attorneys or their clients in the presentation or
prosecution of any disputes, differences, grievances, claims, charges, or
complaints by any third party against the other party hereto and/or any officer,
director, employee, agent, representative, shareholder or attorney of the
Company or heir, family member, executor or assign of the Executive, unless
under a subpoena or other court order to do so for any act or event that
predates the Effective Date.

      13. Non-Disparagement. Each party agrees to refrain from any defamation,
libel or slander of the other party or tortious interference with the contracts
and relationships of the other party. All inquiries by potential future
employers of the Executive will be directed to the Company's Human Resources
Department. Upon inquiry, the Company shall only state the following: the
Executive's last or current position and, if applicable, date of resignation.

      14. Non-Solicitation. The Executive agrees that for a period of twelve
(12) months immediately following the Resignation Date, the Executive shall not
either directly or indirectly solicit, induce, recruit or encourage any of the
Company's employees to leave their employment,

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or take away such employees, or attempt to solicit, induce, recruit, encourage,
take away or hire employees of the Company, either for himself or any other
person or entity.

      15. No Admission of Liability. The Parties understand and acknowledge that
this Agreement constitutes a compromise and settlement of disputed claims. No
action taken by the Parties hereto, or either of them, either previously or in
connection with this Agreement, shall be deemed or construed to be:

            (a) an admission of the truth or falsity of any claims heretofore
made; or

            (b) an acknowledgment or admission by either party of any fault or
liability whatsoever to the other party or to any third party.

      16. No Knowledge of Wrongdoing. The Parties represent that they have no
knowledge of any wrongdoing involving improper or false claims against a federal
or state governmental agency, or any other wrongdoing that involves the
Executive or the Company or any of its employees.

      17. Costs. The Parties shall each bear their own costs, expert fees,
attorneys' fees and other fees incurred in connection with this Agreement.

      18. Authority. The Company represents and warrants that the individual
signing on its behalf has the authority to act on behalf of the Company and to
bind the Company and all who may claim through it to the terms and conditions of
this Agreement. The Executive represents and warrants that he has the capacity
to act on his own behalf and on behalf of all who might claim through him to
bind them to the terms and conditions of this Agreement. Each party warrants and
represents that there are no liens or claims of lien or assignments in law or
equity or otherwise of or against any of the claims or causes of action released
herein.

      19. No Representations. Each party represents that it has had the
opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement. Neither party has
relied upon any representations or statements made by the other party hereto
which are not specifically set forth in this Agreement.

      20. Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision so long as the remaining provisions remain intelligible and continue
to reflect the original intent of the Parties.

      21. Entire Agreement. This Agreement, and the agreements incorporated
herein by reference to the extent they are consistent with this Agreement,
constitute the entire agreement and understanding between the Parties concerning
the subject matter of this Agreement and all prior representations,
understandings, and agreements concerning the subject matter of this Agreement
have been merged into this Agreement.

      22. No Waiver. The failure of any party to insist upon the performance of
any of the terms and conditions in this Agreement, or the failure to prosecute
any breach of any of the terms

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and conditions of this Agreement, shall not be construed thereafter as a waiver
of any such terms or conditions. This entire Agreement shall remain in full
force and effect as if no such forbearance or failure of performance had
occurred.

      23. No Oral Modification. Any modification or amendment of this Agreement,
or additional obligation assumed by either party in connection with this
Agreement, shall be effective only if placed in writing and signed by both
Parties or by authorized representatives of each party. No provision of this
Agreement can be changed, altered, modified, or waived except by an executed
writing by the Parties.

      24. Governing Law. This Agreement shall be deemed to have been executed
and delivered within the State of California, and it shall be construed,
interpreted, governed, and enforced in accordance with the laws of the State of
California. Any action at law, suit in equity, or other judicial proceedings for
the enforcement of this Agreement, or related to any provision of this
Agreement, shall be instituted only in courts with venue in the State of
California, except that the Company may seek injunctive relief in any court
having jurisdiction for any claim relating to the alleged misuse or
misappropriation of the Company's trade secrets or confidential or proprietary
information. The parties hereby expressly consent to venue and personal
jurisdiction of the state and federal courts in the State of California for any
lawsuit filed there against any party arising from or relating to this
Agreement.

      25. Counterparts. This Agreement may be executed in counterparts and by
facsimile signature, and each counterpart and facsimile signature shall have the
same force and effect as an original and shall constitute an effective, binding
agreement on the part of each of the undersigned.

      26. Voluntary Execution of Agreement. This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims. The Parties
acknowledge that:

            (a) They have read this Agreement;

            (b) They have been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of their own choice or that they
have voluntarily declined to seek such counsel;

            (c) They understand the terms and consequences of this Agreement and
of the releases it contains; and

            (d) They are fully aware of the legal and binding effect of this
Agreement.

      27. Notices. Any Notice required or permitted by this Agreement shall be
in writing and shall be sufficient upon delivery, delivered personally by an
overnight courier or sent by fax (upon customer confirmation of receipt), or
forty-eight hours after being deposited in the U.S. mail as certified or
registered mail, with postage prepaid, addressed to the party to be notified at
such party's address as set forth on the signature page hereof or as
subsequently modified by written notice and if to Company, said notice shall be
directed to Ken Hirschman, Vice President, General Counsel or his successor at
Digital Impact, Inc., 177 Bovet Road, Suite 200,

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San Mateo, CA 94402 and, if to Executive at PO Box 2031, Menlo Park, CA 94026,
with a copy to Bruce Towner, Towner Law Offices, 1700 Montgomery Street, Suite
110, San Francisco, CA 94111.

            IN WITNESS WHEREOF, the Parties have executed this Agreement on the
respective dates set forth below.

                                           DIGITAL IMPACT, INC.

Dated:                                     By:
      -------------------------------         ----------------------------------

                                           Name:
                                                --------------------------------

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

                                           DAVID KLEINBERG

Dated:
      -------------------------------      -------------------------------------

                                       9Rawlings Sporting Goods Company, Inc. 1994 Long-Term Incentive Plan,as amended

 
EXHIBIT 4.1

 
RAWLINGS SPORTING GOODS COMPANY, INC.

1994 LONG-TERM INCENTIVE PLAN 
 
1. Purpose. The purpose of this Rawlings Sporting Goods Company, Inc. 1994 Long-Term Incentive
Plan (the “Plan”) of K2 Inc., a Delaware corporation (the “Company”), is to advance the interests of the Company and its stockholders by providing a means to attract, retain, and reward directors, officers and employees of the
Company and its subsidiaries and to enable such directors, officers and employees to acquire or increase a proprietary interest in the Company, thereby promoting a closer identity of interests between such directors, officers and employees and the
Company’s stockholders. 
 
2.
Definitions. The definitions of awards under the Plan, including Options, SARs (including Limited SARs), Restricted Stock, Deferred Stock, Stock granted as a bonus or in lieu of other awards, Dividend Equivalents, and Other Stock-Based
Awards, are set forth in Section 6 of the Plan. Such awards, together with any other right or interest granted to a Participant under the Plan, are termed “Awards.” The definitions of terms relating to a Change in Control of the Company
are set forth in Section 8 of the Plan. For purposes of the Plan, the following additional terms shall be defined as set forth below: 
 
(a) “Award Agreement” means any written agreement, contract, or other instrument or document evidencing an
Award. 
 
(b)
“Beneficiary” shall mean the person, persons, trust, or trusts which have been designated by a Participant in his or her most recent written beneficiary designation filed with the Committee to receive the benefits specified under this Plan
upon such Participant’s death or, if there is no designated Beneficiary or surviving designated Beneficiary, then the person, persons, trust, or trusts entitled by will or the laws of descent and distribution to receive such benefits.

 
(c) “Board” means the
Board of Directors of the Company. 
 
(d) “Code” means the Internal Revenue Code of 1986, as amended from time to time. References to any provision of the Code shall be deemed to include regulations thereunder and successor provisions and regulations thereto.

 
(e) “Committee” means
the Stock Option Committee of the Board, or such other Board committee as may be designated by the Board to administer the Plan; provided, however, that the Committee shall at all times after the Company has a class of equity
securities registered under Section 12 of the Exchange Act consist of two or more directors, each of whom is a “disinterested person” within the meaning of Rule 16b-3 under the Exchange Act. 
 
(f) “Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time. References to any provision of the Exchange Act shall be deemed to include rules thereunder and successor provisions and rules thereto. 
 
(g) “Fair Market Value” means, with
respect to Stock, Awards, or other property, the fair market value of such Stock, Awards, or other property determined by 

 
such methods
or procedures as shall be established from time to time by the Committee. Unless otherwise determined by the Committee, the Fair Market Value of Stock as of any given date shall mean the closing price of a share of Stock on the nearest day preceding
the date on which such value is to be determined on which there was a trade, as reported for such day in the table entitled “New York Stock Exchange Composite Transactions” contained in The Wall Street Journal or an equivalent
successor table. 
 
(h)
“ISO” means any Option intended to be and designated as an incentive stock option within the meaning of Section 422 of the Code. 
 
(i) “Participant” means a person who, as a director, officer or employee of the Company or a subsidiary has been
granted an Award under the Plan. 
 
(j) “Rule 16b-3” means Rule 16b-3, as from time to time in effect and applicable to the Plan and Participants, promulgated by the Securities and Exchange Commission under Section 16 of the Exchange Act. 
 
(k) “Stock” means the Common Stock,
$1.00 par value, of the Company and such other securities as may be substituted for Stock or such other securities pursuant to Section 4. 
 
3. Administration. 
 
(a) Authority of the Committee. The Plan shall be administered by the Committee. The Committee shall have full and
final authority to take the following actions, in each case subject to and consistent with the provisions of the Plan: 
 
(i) to select Participants to whom Awards may be granted; 
 
(ii) to determine the type or types of Awards to be granted to each Participant;

 
(iii) to determine the number
of Awards to be granted, the number of shares of Stock to which an Award will relate, the terms and conditions of any Award granted under the Plan (including, but not limited to, any exercise price, grant price, or purchase price, any restriction or
condition, any schedule for lapse of restrictions or conditions relating to transferability or forfeiture, exercisability, or settlement of an Award, and waivers or accelerations thereof, and waivers of or modifications to performance conditions
relating to an Award, based in each case on such considerations as the Committee shall determine), and all other matters to be determined in connection with an Award; 
 
(iv) to determine whether, to what extent, and under what circumstances an Award may be
settled, or the exercise price of an Award may be paid, in cash, Stock, other Awards, or other property, or an Award may be cancelled, forfeited, or surrendered; 
 
(v) to determine whether, to what extent, and under what circumstances cash, Stock, other
Awards, or other property payable with respect to an Award will be deferred either automatically, at the election of the Committee, or at the election of the Participant; 
 

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(vi) to prescribe the form of each Award Agreement, which need not be identical for each Participant; 
 
(vii) to adopt, amend, suspend, waive, and rescind such rules and regulations and appoint such agents as the Committee may
deem necessary or advisable to administer the Plan; 
 
(viii) to correct any defect or supply any omission or reconcile any inconsistency in the Plan and to construe and interpret the Plan and any Award, rules and regulations, Award Agreement, or other instrument hereunder; and

 
(ix) to make all other
decisions and determinations as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the administration of the Plan. 
 
(b) Manner of Exercise of Committee Authority. Unless authority is specifically reserved
to the Board under the terms of the Plan, the Company’s Certificate of Incorporation or Bylaws, or applicable law, the Committee shall have sole discretion in exercising authority under the Plan. Any action of the Committee with respect to the
Plan shall be final, conclusive, and binding on all persons, including the Company, subsidiaries of the Company, Participants, any person claiming any rights under the Plan from or through any Participant, and stockholders. The express grant of any
specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. A memorandum signed by all members of the Committee shall constitute the act of the Committee
without the necessity, in such event, to hold a meeting. The Committee may delegate to officers or managers of the Company or any subsidiary of the Company the authority, subject to such terms as the Committee shall determine, to perform
administrative functions and, with respect to Participants not subject to Section 16 of the Exchange Act, to perform such other functions as the Committee may determine, to the extent permitted under Rule 16b-3 and applicable law. 
 
(c) Limitation of Liability. Each member
of the Committee shall be entitled to, in good faith, rely or act upon any report or other information furnished to him by any officer or other employee of the Company or any subsidiary, the Company’s independent certified public accountants,
or any executive compensation consultant, legal counsel, or other professional retained by the Company to assist in the administration of the Plan. No member of the Committee, nor any director, officer or employee of the Company acting on behalf of
the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Committee and any director, officer or employee of the Company acting on their
behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such action, determination, or interpretation. 
 
4. Stock Subject to Plan. 
 
(a) Amount of Stock Reserved. Subject to adjustment as hereinafter provided, the total
number of shares of Stock reserved for delivery to Participants in connection with Awards 
 

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under the Plan shall be
1,215,000.1 No Award may be granted if the number of shares to which such Award relates, when added to the number of
shares previously delivered under the Plan and the number of shares to which other then-outstanding Awards relate, exceeds the number of shares then reserved under this Section 4. If any shares subject to an Award are forfeited or such Award is
settled in cash or otherwise terminates without delivery of shares to the Participant, such shares shall again be available for Awards under the Plan. Any shares of Stock delivered pursuant to an Award may consist, in whole or in part, of authorized
and unissued shares or treasury shares. 
 
(b)
Annual Per-Participant Limitations. During any calendar year, no Participant may be granted under the Plan Options and other Awards that may be settled by delivery of more than 270,0002 shares of Stock. In addition, with respect to Awards that may be settled in cash, no Participant may be paid during any calendar year cash amounts relating to
such Awards that exceed the greater of the Fair Market Value of the number of shares of Stock set forth in the preceding sentence at the date of grant or the date of settlement of awards that may be settled solely by delivery of Stock will not
operate to reduce the amount of cash-only Awards, and vice versa; nevertheless, Awards that may be settled in Stock or cash must not exceed either limitation. 
 
(c) Adjustments. In the event that the Committee shall determine that any dividend or other distribution (whether in
the form of cash, Stock, or other property), recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share exchange, or other similar corporate transaction or event, affects the Stock
such that an adjustment is appropriate in order to prevent dilution or enlargement of the rights of Participants under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and kind of
shares of Stock which may thereafter be delivered in connection with Awards, (ii) the number and kind of shares of Stock that may be delivered or deliverable in respect of outstanding Awards, (iii) the number of shares with respect to which Awards
may be granted to a given Participant in the specified period as set forth in Section 4(b), and (iv) the exercise price, grant price, or purchase price relating to any Award (or, if deemed appropriate, the Committee may make provision for a cash
payment with respect to any outstanding Award). In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or non-recurring events (including, without
limitation, events described in the preceding sentence) affecting the Company or any subsidiary or the financial statements of the Company or any subsidiary, or in response to changes in applicable laws, regulations, or accounting principles. The
foregoing 
 

	1	 	Originally 1,125,000 shares of Rawlings Sporting Goods Company, Inc. common stock, par value
$.01, were reserved for issuance under the Plan; however, pursuant to the terms of the Agreement and Plan of Merger by and among the Company, Lara Acquisition Sub, Inc. and Rawlings Sporting Goods Company, Inc. dated as of December 15, 2002, each
share of Rawlings common stock was converted into 1.08 shares of Stock, including those shares subject to outstanding options as of March 26, 2003 granted pursuant to the Plan and the corresponding conversion was made with respect to the shares of
Stock reserved for issuance under the Plan. 

 

	2	 	The original annual per-participant limitation under the Plan was 250,000 shares of Rawlings Sporting Goods Company, Inc. common stock, par value $.01; however,
pursuant to the terms of the Agreement and Plan of Merger by and among the Company, Lara Acquisition Sub, Inc. and Rawlings Sporting Goods Company, Inc. dated as of December 15, 2002, each share of Rawlings common stock was converted into 1.08
shares of Stock and the corresponding conversion was made with respect to this share limit. 

 

4 

 
notwithstanding, no
adjustments shall be authorized under this Section 4(c) with respect to ISOs or SARs in tandem therewith to the extent that such authority would cause the Plan to violate Section 422(b)(1) of the Code, and no such adjustment shall be authorized with
respect to Options or other Awards granted in accordance with Section 7(f) hereof to the extent that such authority would cause such Options or other Awards to fail to qualify as “performance-based compensation” under Section 162(m)(4)(C)
of the Code and regulations thereunder (including Proposed Regulation 1.162-27(e)(2)). 
 
5. Eligibility. Directors, officers and employees of the Company and its subsidiaries are eligible to be granted Awards under the Plan. 
 

5 

 
6.
Specific Terms of Awards. 
 
(a) General. Awards may be granted on the terms and conditions set forth in this Section 6. In addition, the Committee may impose on any Awards or the exercise thereof, at the
date of grant or thereafter (subject to Section 9(e)), such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine, including terms requiring forfeiture of Awards in the event of
termination of employment by the Participant. Except as provided in Sections 6(f), 6(h) or 7(a), or to the extent required to comply with requirements of the Delaware General Corporation Law that lawful consideration be paid for Stock, only services
may be required as consideration for the grant (but not the exercise) of any Award. 
 
(b) Options. The Committee is authorized to grant Options to Participants (including “reload” options automatically granted to offset specified exercises of
options) on the following terms and conditions: 
 
(i) Exercise Price. The exercise price per share of Stock purchasable under an Option shall be determined by the Committee; provided, however, that, except as provided in Section 7(a), such exercise price
shall be not less than the Fair Market Value of a share on the date of grant of such Option. 
 
(ii) Time and Method of Exercise. The Committee shall determine the time or times at which an Option may be
exercised in whole or in part, the methods by which such exercise price may be paid or deemed to be paid, the form of such payment, including, without imitation, cash, Stock, other Awards or awards granted under other Company plans, or other
property (including notes or other contractual obligations of Participants to make payment on a deferred basis, such as through “cashless exercise” arrangements, to the extent permitted by applicable law), and the methods by which Stock
will be delivered or deemed to be delivered to Participants. 
 
(iii) ISOs. The terms of any ISO granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code, including but not limited to the requirement that no
ISO shall be granted more than ten years after the effective date of the Plan. Anything in the Plan to the contrary notwithstanding, no term of the Plan relating to ISOs shall be interpreted, amended, or altered, nor shall any discretion or
authority granted under the Plan be exercised, so as to disqualify either the Plan or any ISO under Section 422 of the Code. 
 
(c) Stock Appreciation Rights. The Committee is authorized to grant SARs to Participants on the following
terms and conditions: 
 
(i)
Right to Payment. An SAR shall confer on the Participant to whom it is granted a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of exercise (or, if the Committee shall
so determine in the case of any such right other than one related to an ISO, the Fair Market Value of one share at any time during a specified period before or after the date of exercise), over (B) the grant price of the SAR as determined by the
Committee as of the date of grant of 
 

6 

 
the SAR,
which, except as provided in Section 7(a), shall be not less than the Fair market Value of one share of Stock on the date of grant. 
 
(ii) Other Terms. The Committee shall determine the time or times at which an SAR may be exercised in whole
or in part, the method of exercise, method of settlement, form of consideration payable in settlement, method by which Stock will be delivered or deemed to be delivered to Participants, whether or not an SAR shall be in tandem with any other Award,
and any other terms and conditions of any SAR. Limited SARs that may only be exercised upon the occurrence of a Change in Control (as such term is defined in Section 8(b) or as otherwise defined by the Committee) may be granted on such terms, not
inconsistent with this Section 6(c), as the Committee may determine. Limited SARs may be either freestanding or in tandem with other Awards. 
 
(d) Restricted Stock. The Committee is authorized to grant Restricted Stock to Participants on the following
terms and conditions: 
 
(i)
Grant and Restrictions. Restricted Stock shall be subject to such restrictions on transferability and other restrictions, if any, as the Committee may impose, which restrictions may lapse separately or in combination at such times,
under such circumstances, in such installments, or otherwise, as the Committee may determine. Except to the extent restricted under the terms of the Plan and any Award Agreement relating to the Restricted Stock, a Participant granted Restricted
Stock shall have all of the rights of a stockholder including, without limitation, the right to vote Restricted Stock or the right to receive dividends thereon. 
 
(ii) Forfeiture. Except as otherwise determined by the Committee, upon
termination of employment during the applicable restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited and reacquired by the Company; provided, however, that the Committee may provide, by
rule or regulation or in any Award Agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating to Restricted Stock will be waived in whole or in part in the event of terminations resulting from specified
causes. 
 
(iii)
Certificates for Stock. Restricted Stock granted under the Plan may be evidenced in such manner as the Committee shall determine. If certificates representing Restricted Stock are registered in the name of the Participant, such
certificates shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, the Company shall retain physical possession of the certificate, and the Participant shall have delivered a stock
power to the Company, endorsed in blank, relating to the Restricted Stock. 
 
(iv) Dividends. Dividends paid on Restricted Stock shall be either paid at the dividend payment date in cash or in shares of unrestricted Stock having a Fair Market Value equal to the
amount of such dividends, or the payment of such dividends shall be deferred and/or the amount or value thereof automatically reinvested in additional Restricted Stock, other Awards, or other investment vehicles, as the Committee shall determine or
permit the Participant to elect. Stock distributed in connection with a Stock 
 

7 

 
split or
Stock dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such Stock or other property has been distributed. 
 
(e) Deferred
Stock. The Committee is authorized to grant Deferred Stock to Participants, subject to the following terms and conditions: 
 
(i) Award and Restrictions. Delivery of Stock will occur upon expiration of the
deferral period specified for an Award of Deferred Stock by the Committee (or, if permitted by the Committee, as elected by the Participant). In addition, Deferred Stock shall be subject to such restrictions as the Committee may impose, if any,
which restrictions may lapse at the expiration of the deferral period or at earlier specified times, separately or in combination, in installments, or otherwise, as the Committee may determine. 
 
(ii) Forfeiture. Except as
otherwise determined by the Committee, upon termination of employment (as determined under criteria established by the Committee) during the applicable deferral period or portion thereof to which forfeiture conditions apply (as provided in the Award
Agreement evidencing the Deferred Stock), all Deferred Stock that is at that time subject to deferral (other than a deferral at the election of the Participant) shall be forfeited; provided, however, that the Committee may provide, by
rule or regulation or in any Award Agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating to Deferred Stock will be waived in whole or in part in the event of terminations resulting from specified
causes, and the Committee may in other cases waive in whole or in part the forfeiture of Deferred Stock. 
 
(f) Bonus Stock and Awards in Lieu of Cash Obligations. The Committee is authorized to grant Stock as a bonus, or to
grant Stock or other Awards in lieu of Company obligations to pay cash under other plans or compensatory arrangements, provided that, in the case of Participants subject to Section 16 of the Exchange Act, such cash amounts are determined under such
other plans in a manner that complies with applicable requirements of Rule 16b-3 so that the acquisition of Stock or Awards hereunder shall be exempt from Section 16(b) liability. Stock or Awards granted hereunder shall be subject to such other
terms as shall be determined by the Committee. 
 
(g) Dividend Equivalents. The Committee is authorized to grant Dividend Equivalents to a Participant, entitling the Participant to receive cash, Stock, other Awards, or other property equal in value to
dividends paid with respect to a specified number of shares of Stock, or other periodic payments. Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award. The Committee may provide that Dividend Equivalents
shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Stock, Awards, or other investment vehicles as the Committee may specify. 
 
(h) Other Stock-Based Awards. The Committee is authorized, subject to limitations
under applicable law, to grant to Participants such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, as deemed by the Committee to be consistent with the
purposes of the Plan, including, without 
 

8 

 
limitation, convertible or
exchangeable debt securities, other rights convertible or exchangeable into Stock, purchase rights for Stock, Awards with value and payment contingent upon performance of the Company or any other factors designated by the Committee, and Awards
valued by reference to the book value of Stock or the value of securities of or the performance of specified subsidiaries. The Committee shall determine the terms and conditions of such Awards. Stock delivered pursuant to an Award in the nature of a
purchase right granted under this Section 6(h) shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, cash, Stock, other Awards, or other property, as the Committee shall
determine. Cash awards, as an element of or supplement to any other Award under the Plan, shall also be authorized pursuant to this Section 6(h). 
 
7. Certain Provisions Applicable to Awards. 
 
(a) Stand-alone, Additional, Tandem and Substitute Awards. Awards granted under
the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for, any other Award granted under the Plan or any award granted under any other plan of the Company, any subsidiary, or
any business entity to be acquired by the Company or a subsidiary, or any other right of a Participant to receive payment from the Company or any subsidiary. Awards granted in addition to or in tandem with other Awards or awards may be granted
either as of the same time as or a different time from the grant of such other Awards or awards. The per share exercise price of any Option, grant price of any SAR, or purchase price of any other Award conferring a right to purchase Stock:

 
(i) Granted in substitution for
an outstanding Award or award shall be not less than the lesser of the Fair Market Value of a share of Stock at the date such substitute Award is granted or such Fair Market Value at that date reduced to reflect the Fair Market Value at that date of
the Award or award required to be surrendered by the Participant as a condition to receipt of the substitute Award; or 
 
(ii) Retroactively granted in tandem with an outstanding Award or award shall be not less than the lesser of the Fair
Market Value of a share of Stock at the date of grant of the later Award or at the date of grant of the earlier Award or award. 
 
(b) Term of Awards. The term of each Award shall be for such period as may be determined by the Committee;
provided, however, that in no event shall the term of any ISO or an SAR granted in tandem therewith exceed a period of ten years from the date of its grant (or such shorter period as may be applicable under Section 422 of
the Code). 
 
(c) Form of Payment Under
Awards. Subject to the terms of the Plan and any applicable Award Agreement, payments to be made by the Company or a subsidiary upon the grant or exercise of an Award may be made in such forms as the Committee shall determine,
including, without limitation, cash, Stock, other Awards, or other property, and may be made in a single payment or transfer, in installments, or on a deferred basis. Such payments may include, without limitation, provisions for the payment or
crediting of reasonable interest on installment or deferred payments or the grant or crediting of Dividend Equivalents in respect of installment or deferred payments denominated in Stock. 
 

9 

 
(d)
Rule 16b-3 Compliance. 
 
(i) Six Month Holding Period. Unless a Participant could otherwise exercise a derivative security or dispose of Stock delivered upon exercise of a derivative security granted under the Plan without incurring liability
under Section 16(b) of the Exchange Act, (i) Stock delivered under the Plan other than upon exercise or conversion of a derivative security granted under the Plan shall be held for at least six months from the date of acquisition, and (ii) with
respect to a derivative security granted under the Plan, at least six months shall elapse from the date of acquisition of the derivative security to the date of disposition of the derivative security (other than upon exercise or conversion) or its
underlying equity security. 
 
(ii) Nontransferability. Awards which constitute derivative securities (including any Option, SAR, Limited SAR, or similar right) under the general definition set forth in Rule 16a-1(c)(3)(i) under the Exchange Act
shall not be transferable by a Participant except by will or the laws of descent and distribution (or pursuant to a Beneficiary designation) and, in the case of any Option or SAR, shall be exercisable during the lifetime of a Participant only by
such Participant or his guardian or legal representative. 
 
(iii) Reformation to Comply with Exchange Act Rules. It is the intent of the Company that this Plan comply in all respects with applicable provisions of Rule 16b-3 or Rule 16a-1(c)(3)
under the Exchange Act in connection with any grant of Awards to or other transaction by a Participant who is subject to Section 16 of the Exchange Act (except for transactions exempted under alternative Exchange Act Rules or acknowledged in writing
to be non-exempt by such Participant). Accordingly, if any provision of this Plan or any Award Agreement relating to an Award does not comply with the requirements of Rule 16b-3 or Rule 16a-1(c)(3) as then applicable to any such transaction, such
provision will be construed or deemed amended to the extent necessary to conform to the applicable requirements of Rule 16b-3 or Rule 16a-1(c)(3) so that such Participant shall avoid liability under Section 16(b). In addition, other provisions of
the Plan notwithstanding, the exercise price of any Award carrying a right to exercise granted to a Participant subject to Section 16 of the Exchange Act shall be not less than 50% of the Fair Market Value of Stock as of the date such Award is
granted if such pricing limitation is required under Rule 16b-3 at the time of such grant. 
 
(e) Loan Provisions. With the consent of the Committee, and subject at all times to, and only to the extent, if any, and in accordance with, laws and regulations and other binding
obligations or provisions applicable to the Company, the Company may make, guarantee, or arrange for a loan or loans to a Participant with respect to the exercise of any Option or other payment in connection with any Award, including the payment by
a Participant of any or all federal, state, or local income or other taxes due in connection with any Award. Subject to such limitations, the Committee shall have full authority to decide whether to make a loan or loans hereunder and to determine
the amount, terms, and provisions of any such loan or loans, including the interest rate to be charged in respect of any such loan or loans, whether the loan or loans are to be with or without recourse against the borrower, the terms on which the
loan is to be repaid and conditions, if any, under which the loan or loans may be forgiven. 
 

10 

 
(f)
Performance-Based Awards to “Covered Employees”. Other provisions of the Plan notwithstanding, the provisions of this Section 7(f) shall apply to any Award the exercisability or settlement of which is subject to the
achievement of performance conditions (other than an Option or SAR granted with an exercise or base price at least equal to 100% of Fair Market Value of Stock on the date of grant) if such Award is granted to a person who, at the time of grant, is a
“covered employee” and if mandatory compliance with this Section 7(f) is necessary in order for such awards to a covered employee to not be subject to the limitation on tax deductibility by the Company under Section 7(f), shall be
interpreted in a manner consistent with Section 162(m) of the Code and regulations thereunder (including Proposed Regulation 1.162-27). The performance objectives for an Award subject to this Section 7(f) shall consist of one or more business
criteria, as specified by the Committee but subject to this Section 7(f). Performance objectives shall be objective and shall otherwise meet the requirements of Section 162(m)(4)(C) of the Code and regulations thereunder (including Proposed
Regulation 1.162-27(e)(2)). The following business criteria shall be used by the Committee in connection with a performance objective: 
 
(1) Annual earnings before payment of taxes and interest; 
 
(2) Annual earnings per share; and/or 
 
(3) Annual return on common equity.

 
Achievement of performance objectives shall be measured over a
period of one, two, three, or four years, as specified by the Committee. No business criteria other than those named above may be used in establishing the performance objective for an Award to a covered employee. For each such Award relating to a
covered employee, the Committee shall establish the targeted level or levels of performance for each business criteria. Performance objectives may differ for Awards under this Section 7(f) to different covered employees. The Committee may determine
that an Award under this Section 7(f) shall be payable upon achievement of any one of the performance objectives or may require that two or more of the performance objectives must be achieved in order for an Award to be payable. The Committee may,
in its discretion, reduce the amount of a payout otherwise to be made in connection with an Award under this Section 7(f), but may not exercise discretion to increase such amount, and the Committee may consider other performance criteria in
exercising such discretion. All determinations by the Committee as to the achievement of performance objectives shall be made in writing. The Committee may not delegate any responsibility under this Section 7(f). 
 
8. Change in Control Provisions. 
 
(a) In the event of a “Change in Control,” as
defined in this Section, the following acceleration provisions shall apply: 
 
(i) any Award carrying a right to exercise, other than an Award subject to Section 7(f), that was not previously exercisable and vested shall become fully exercisable and vested, subject only to the
restrictions set forth in Sections 7(d)(i) and 9(a); and 
 

11 

 
(ii) The restrictions, deferral limitations, and forfeiture conditions applicable to any other Award granted under the Plan, other than an Award subject to Section 7(f), shall lapse and such Awards shall be deemed fully vested, and
any performance conditions imposed with respect to Awards, shall be deemed to be fully achieved, subject to the restrictions set forth in Sections 7(d)(i) and 9(a). 
 
(b) For purposes of the Plan, a “Change in Control” shall have occurred if: 
 
(i) Any “person,” as such term is
used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, a subsidiary, any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing 25% or more of the combined voting power of the Company’s then outstanding voting securities; 
 
(ii) during any period of two consecutive years beginning at or after equity securities of the Company first become
registered under Section 12 of the Exchange Act, individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a
transaction described in clause (i), (iii), or (iv) of this Section 8(b)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority thereof; 
 
(iii) the stockholders of the Company approve
a merger, consolidation, recapitalization, or reorganization of the Company, or a reverse stock split of any class of voting securities of the Company, or the consummation of any such transaction if stockholder approval is not obtained, other than
any such transaction which would result in at least 75% of the total voting power represented by the voting securities of the Company or the surviving entity outstanding immediately after such transaction being beneficially owned by persons who
together beneficially owned at least 75% of the combined voting power of the voting securities of the Company outstanding immediately prior to such transaction, with the relative voting power of each such continuing holder compared to the voting
power of each other continuing holder not substantially altered as a result of the transaction; provided that, for purposes of this paragraph (iii), such continuity of ownership (and preservation of relative voting power) shall be deemed to be
satisfied if the failure to meet such 75% threshold (or to substantially preserve such relative voting power) is due solely to the acquisition of voting securities by an employee benefit plan of the Company or such surviving entity or of any
subsidiary of the Company or such surviving entity; or 
 

12 

 
(iv) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets (or any transaction having
a similar effect). 
 
9. General
Provisions. 
 
(a) Compliance with
Legal and Exchange Requirements. The Company shall not be obligated to deliver Stock upon the exercise or settlement of any Award or take other actions under the Plan until the Company shall have determined that applicable federal and
state laws, rules, and regulations have been complied with and such approvals of any regulatory or governmental agency have been obtained and contractual obligations to which the Award may be subject have been satisfied. The Company, in its
discretion, may postpone the issuance or delivery of Stock under any Award until completion of such stock exchange listing or registration or qualification of such Stock or other required action under any federal or state law, rule, or regulation as
the Company may consider appropriate, and may require any Participant to make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of Stock under the Plan. 
 
(b) Nontransferability. In addition to
the restrictions on transferability set forth in Section 7(d)(ii) (which apply to all Participants whether or not they are otherwise subject to Section 16 under the Exchange Act), Awards and other rights of Participants under the Plan may not be
transferred to third parties, pledged, mortgaged, hypothecated, or otherwise encumbered, and shall not be subject to claims of creditors. 
 
(c) No Right to Continued Employment. Neither the Plan nor any action taken hereunder shall be construed as giving
any employee the right to be retained in the employ of the Company or any of its subsidiaries, nor shall it interfere in any way with the right of the Company or any of its subsidiaries to terminate any employee’s employment at any time.

 
(d) Taxes. The Company or
any subsidiary is authorized to withhold from any Award granted or to be settled, any payment relating to an Award under the Plan, including from a distribution of Stock, or any payroll or other payment to a Participant, amounts of withholding and
other taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable the Company and Participants to satisfy obligations for the payment of
withholding taxes and other tax obligations relating to any Award. This authority shall include authority to withhold or receive Stock or other property and to make cash payments in respect thereof in satisfaction of a Participant’s tax
obligations. 
 
(e) Changes to the Plan
and Awards. The Board may amend, alter, suspend, discontinue, or terminate the Plan or the Committee’s authority to grant Awards under the Plan without the consent of stockholders or Participants, except that any such action shall
be subject to the approval of the Company’s stockholders at or before the next annual meeting of stockholders for which the record date is after such Board action if such stockholder approval is required by any federal or state law or
regulation or the rules of any stock exchange or automated quotation system on which the Stock may then be listed or quoted, and the Board may otherwise, in its discretion, determine to submit other such changes to the Plan to stockholders for
approval; 
 

13 

provided, however, that, without the consent of an affected Participant, no such action may
materially impair the rights of such Participant under any Award theretofore granted to him. The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue, or terminate, any Award theretofore granted and any Award
Agreement relating thereto; provided, however, that, without the consent of an affected Participant, no such action may materially impair the rights of such Participant under such Award. 
 
(f) No Rights to Awards; No Stockholder
Rights. No Participant or employee shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants and employees. No Award shall confer on any Participant any of the
rights of a stockholder of the Company unless and until Stock is duly issued or transferred and delivered to the Participant in accordance with the terms of the Award. 
 
(g) Unfunded Status of Awards; Creation of Trusts. The Plan is intended to constitute an
“unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award shall give any such Participant any rights that are
greater than those of a general creditor of the Company; provided, however, that the Committee may authorize the creation of trusts or make other arrangements to meet the Company’s obligations under the Plan to deliver cash, Stock
other Awards, or other property pursuant to any Award, which trusts or other arrangements shall be consistent with the “unfunded” status of the Plan unless the Committee otherwise determines with the consent of each affected Participant.

 
(h) Nonexclusivity of the
Plan. Neither the adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as
it may deem desirable, including, without limitation, the granting of stock options otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases. 
 
(i) No Fractional Shares. No fractional
shares of Stock shall be issued or delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, other Awards, or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares
or any rights thereto shall be forfeited or otherwise eliminated. 
 
(j) Compliance with Code Section 162(m). It is the intent of the Company that Options and other Awards subject to the performance objectives specified under Section 7(f) granted under the Plan to persons
who are “covered employees” within the meaning of Code Section 162(m) and regulations thereunder (including Proposed Regulation 1.162-27(c)(2)) shall constitute “qualified performance-based compensation” within the meaning of
Code Section 162(m) and regulations thereunder (including Proposed Regulation 1.162-27(e), and subject to the transition rules under Proposed Regulation 1.162-27(h)(2)) thereunder. Accordingly, if any provision of the Plan or any Award Agreement
relating to such an Award granted to a “covered employee” does not comply or is inconsistent with the requirements of Code Section 162(m) or regulations thereunder, such provision shall be construed or deemed amended to the extent
necessary to conform to such requirements, and no provision shall be deemed to confer upon the Committee or any other person discretion to increase the amount of 
 

14 

compensation otherwise payable to a “covered employee” in connection with any such Award upon
attainment of the performance objectives. 
 
(k)
Broad Based Plan. It is the intent of the Company that the Plan qualify as a “Broad Based Plan” within the meaning of Section 312.04(h) of the New York Stock Exchange Listed Company Manual. Therefore, at least a
majority of the Company’s full-time employees in the United States who are “exempt employees” as defined under Fair Labor Standards Act of 1938, must be eligible to receive Stock, Options or other Awards under the Plan, and at least a
majority of the shares of Stock or shares of Stock underlying Options or Awards granted under the Plan during any three year period must be awarded to employees who are not officers or directors of the Company. 
 
(l) Governing Law. The validity,
construction, and effect of the Plan, any rules and regulations relating to the Plan, and any Award Agreement shall be determined in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of laws, and
applicable federal law. 
 
(m) Effective
Deal; Plan Termination. The Plan shall become effective as at such time as the stockholder of the Company shall have approved the Plan. The Plan shall terminate at such time as no Stock remains available for delivery pursuant to Section
4 and the Company has no further obligations with respect to any Award granted under the Plan. 
 
As approved by the Board of Directors of Rawlings Sporting Goods Company, Inc. on June 15, 1994. 
 
As amended by the Board of Directors of Rawlings Sporting Goods Company, Inc. on October 16, 1997 and subsequently approved by the
Rawlings shareholders on January 15, 1998. 
 
As
amended by the Board of Directors of the Company on May 15, 2003. 
 

15

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