Document:

EX-10.37

 

Exhibit 10.37

SIXTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED SECURITY

AGREEMENT

          SIXTH AMENDMENT to Second Amended and Restated Credit Agreement (referred to below) and FIRST
AMENDMENT to Second Amended and Restated Security Agreement (referred to below) (collectively, this
“Amendment”), dated as of January 24, 2008, by and among DICK’S SPORTING GOODS, INC., a Delaware
corporation (“Borrower”), GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, as Agent
for the Lenders (in such capacity “Agent”), and the Lenders signatory hereto.

W I T N E S S E T H:

          WHEREAS, Borrower, the other Loan Parties signatory thereto, Agent and Lenders are parties to
that certain Second Amended and Restated Credit Agreement, dated as of July 28, 2004 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”);

          WHEREAS, Borrower and Agent are parties to that certain Second Amended and Restated Security
Agreement, dated as of July 28, 2004 (as amended, restated, supplemented or otherwise modified from
time to time, the “Security Agreement”); and

          WHEREAS, Borrower, Agent and Required Lenders have agreed to amend certain provisions of the
Credit Agreement and the Security Agreement, in the manner, and on the terms and conditions,
provided for herein;

          NOW THEREFORE, in consideration of the premises and for other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged, Borrower, Agent and
Required Lenders hereby agree as follows:

     1. Definitions. Capitalized terms not otherwise defined herein (including in the
Recitals hereto) shall have the meanings ascribed to them in the Credit Agreement as amended hereby
(the “Amended Credit Agreement”) or the Security
Agreement as amended hereby (the “Amended Security
Agreement”), as applicable.

     2. Amendments to the Credit Agreement.

	 	(a)	 	Amendment to Section 5.14. Section 5.14 of the Credit Agreement is hereby amended as of
the Sixth Amendment Effective Date by inserting a new clause (e) after clause (d) to read
as follows:
	 
	 	 	 	“(e) In the event that a TMGC Licensed Trademark is released from the license to
which it is subject pursuant to the TMGC TM Purchase Agreement (a

 

 

	 	 	 	“Released TMGC Trademark”, as hereinafter further defined), Borrower shall, at Agent’s
request, take all action necessary or desirable to perfect Agent’s Lien on such Released
TMGC Trademark, including executing and delivering to Agent a short form intellectual
property security agreement in form and substance reasonably acceptable to the Agent and
suitable for filing in the United States Patent and Trademark Office or any similar
office, authority or agency within or outside the United States.”
	 
	 	(b)	 	Amendment to Section 9.9. Section 9.9 of the Credit Agreement is hereby amended as of the Sixth
Amendment Effective Date by replacing the word “or” at the end of clause (iii) therein with “,”,
inserting the word “or” at the end of clause (iv) therein, and inserting a new clause (v) at the
end of clause (iv) to read as follows:
	 
	 	 	 	“(v) which constitutes Additional TMGC Licensed Trademarks; provided that upon the license
of any TMGC Purchased Trademark (other than any Initial TMGC Licensed Trademarks) by
Borrower to TMGC, Agent shall have received from Borrower a certificate of an Executive
Officer of Borrower certifying that such TMGC Purchased Trademark constitutes a Licensed
Mark (as defined in the TMGC TM Purchase Agreement). Agent agrees to take all steps
reasonably required, upon receipt of Borrower’s certificate required to be delivered
pursuant to this clause (v), to confirm that any Lien covering any Additional TMGC
Licensed Trademark is removed and released.”
	 
	 	(c)	 	Amendments to Annex A. Annex A of the Credit Agreement is hereby amended as of the Sixth
Amendment Effective Date by, adding the following new definitions in appropriate alphabetical
order therein:
	 
	 	 	 	T“Additional TMGC Licensed Trademarks” shall mean up to six (6) additional Purchased
TMGC Trademarks certified to Agent by an Executive Officer of Borrower to constitute
Licensed Marks (as defined in the TMGC TM Purchase Agreement). T
	 
	 	 	 	“Initial TMGC Licensed Trademarks” shall mean the seven (7) Purchased TMGC Trademarks
listed on Exhibit C attached to the TMGC TM Purchase Agreement in which Borrower shall
grant to TMGC a royalty free, fully paid, exclusive right and license.
	 
	 	 	 	“Purchased TMGC Trademarks” shall mean the Trademarks purchased by Borrower from TMGC
pursuant to the TMGC TM Purchase Agreement as listed on Exhibit A attached thereto.
	 
	 	 	 	“Released TMGC Trademark” shall mean any Purchased TMGC Trademark previously
constituting a TMGC Licensed Trademark, which Purchased TMGC Trademark is no longer the
subject of a license by Borrower to TMGC, and no longer constitutes a TMGC Licensed
Trademark.
	 
	 	 	 	“TMGC” shall mean Taylor Made Golf Company, Inc., a Delaware corporation.

2

 

	 	 	 	“TMGC TM Purchase Agreement” shall mean that certain Brand Sale Agreement With
Limited License Back to be entered into between TMGC and Borrower in substantially
the form of the draft Brand Sale Agreement With Limited License Back delivered to
Agent on January 24, 2008, with such changes, amendments or modifications as Agent
may approve in its sole discretion.
	 
	 	 	 	“TMGC Licensed Trademarks” shall mean, collectively, the Initial TMGC Licensed
Trademarks and the Additional TMGC Licensed Trademarks.

     3. Amendment to the Security Agreement. Section 2 of the Security Agreement is hereby amended
as of the Sixth Amendment Effective Date by deleting clause (b) therein in its entirety and
inserting in lieu thereof a new clause (b) to read as follows:

	 	 	 	“(b) Notwithstanding the foregoing or anything to the contrary contained herein,
the pledge and grant of a Lien and security interest as provided herein shall not
extend to any Equipment, Fixtures or Initial TMGC Licensed Trademarks; provided
that, (i) immediately upon the release of any Initial TMGC Licensed Trademark from
the license to which it is subject pursuant to the TMGC TM Purchase Agreement,
Grantor shall be deemed to have granted a security interest in, all its rights,
title and interests in and to such Purchased TMGC Trademark so released; and (ii)
the foregoing exclusions shall in no way be construed so as to limit, impair or
otherwise affect Agent’s unconditional continuing security interest in and to all
rights, title and interests of Grantor in or to any payment obligations or other
rights to receive monies due or to become due under any Initial TMGC Licensed
Trademark or any Trademark License to which such Initial TMGC Licensed Trademark is
subject and in any such monies and other proceeds of any Initial TMGC Licensed
Trademark or any Trademark Licenses to which such Initial TMGC Licensed Trademarks
is subject.”

     4. Representations and Warranties. To induce Required Lenders and Agent to enter into this
Amendment, Borrower hereby represents and warrants that, after giving effect to this Amendment:

	 	(a)	 	Each of the execution, delivery and performance by Borrower and each other Loan Party
which is party to the Guaranty of this Amendment, and the performance of the Amended Credit
Agreement and the Amended Security Agreement are (i) within Borrower’s and each such Loan
Party’s corporate power and have been duly authorized by all necessary corporate and
shareholder action; (ii) do not contravene any provision of any Loan Party’s charter or
bylaws or equivalent organizational or charter or other constituent documents; (iii) do not
violate any law or regulation, or any order or decree of any court or Governmental
Authority; (iv) do not conflict with or result in the breach or termination of, constitute
a default under or accelerate or permit the acceleration of any performance required by,
any indenture, mortgage, deed of trust, lease, agreement or other instrument to which any
Loan Party is a party or by which any Loan Party or any of its property is bound; (v) do
not result in the creation or imposition of any Lien upon any of the property of any Loan
Party other than those in favor

3

 

	 	 	 	of Agent, on behalf of itself and the Lenders, pursuant to the Loan Documents; and
(vi) do not require the consent or approval of any Governmental Authority or any
other Person.
	 
	 	(b)	 	This Amendment has been duly executed and delivered by or on behalf of Borrower and
each other Loan Party which is party to the Guaranty.
	 
	 	(c)	 	Each of this Amendment, the Amended Credit Agreement and the Amended Security Agreement
constitutes a legal, valid and binding obligation of Borrower and each such Loan Party
enforceable against Borrower and such Loan Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).
	 
	 	(d)	 	No Default or Event of Default has occurred and is continuing both before and after
giving effect to this Amendment.
	 
	 	(e)	 	No action, claim or proceeding is now pending or, to the knowledge of any Loan Party
signatory hereto, threatened against such Loan Party, at law, in equity or otherwise,
before any court, board, commission, agency or instrumentality of any federal, state, or
local government or of any agency or subdivision thereof, or before any arbitrator or panel
of arbitrators, which challenges such Loan Party’s right, power, or competence to enter
into this Amendment or, to the extent applicable, perform any of its obligations under this
Amendment, the Amended Credit Agreement, the Amended Security Agreement or any other Loan
Document, or the validity or enforceability of this Amendment, the Amended Credit
Agreement, the Amended Security Agreement or any other Loan Document or any action taken
under this Amendment, the Amended Credit Agreement, the Amended Security Agreement or any
other Loan Document or which if determined adversely could have or result in a Material
Adverse Effect.
To the knowledge of each Loan Party, there does not exist a state of facts which is
reasonably likely to give rise to such proceedings.
	 
	 	(f)	 	All representations and warranties of the Loan Parties contained in the Credit
Agreement and the other Loan Documents are true and correct as of the date hereof with the
same effect as though such representations and warranties had been made on and as of the
date hereof, except to the extent that any such representation or warranty expressly
relates to an earlier date.

     5. Additional Deliveries. Borrower hereby agrees to deliver to Agent on the date on which
Borrower purchases from TMGC certain Trademarks in accordance with the terms hereof and the TMGC TM
Purchase Agreement (a) a duly executed, complete and correct copy of the TMGC TM Purchase Agreement
(including all schedules, exhibits, amendments, supplements, modifications, assignments and all
other material documents delivered pursuant thereto or in connection therewith) and (b) a
counterpart to the Trademark Security Agreement duly executed and delivered by Borrower.

4

 

     6. Remedies. This Amendment shall constitute a Loan Document. The breach by any Loan Party of
any representation, warranty, covenant or agreement in this Amendment shall constitute an immediate
Event of Default hereunder and under the other Loan Documents.

     7. No Other Amendments/Waivers. Except as expressly provided for herein, the
Credit Agreement, the Security Agreement and the other Loan Documents shall be unmodified and shall
continue to be in full force and effect in accordance with their terms. In addition, this Amendment
shall not be deemed a waiver of any term or condition of any Loan Document by the Agent or the
Lenders with respect to any right or remedy which the Agent or the Lenders may now or in the future
have under the Loan Documents, at law or in equity or otherwise or be deemed to prejudice any
rights or remedies which the Agent or the Lenders may now have or may have in the future under or
in connection with any Loan Document or under or in connection with any Default or Event of Default
which may now exist or which may occur after the date hereof. The Credit Agreement, the Security
Agreement and all other Loan Documents are hereby in all respects ratified and confirmed.

     8. Waiver of Claims. Borrower hereby waives, releases, remises and forever discharges Agent,
Lenders and each other Indemnified Person from any and all Claims of any kind or character, known
or unknown, which Borrower ever had, now has or might hereafter have against Agent or any
Indemnified Person which relates, directly or indirectly, to any acts or omissions of Agent or such
Lender or any other Indemnified Person on or prior to the Sixth Amendment Effective Date.

     9. Fees and Expenses. Borrower hereby reconfirms its obligations pursuant to
Section 11.2 of the Credit Agreement to pay and reimburse Agent for all reasonable out-of-pocket
expenses (including, without limitation, reasonable fees of counsel) incurred in connection with
the negotiation, preparation, execution and delivery of this Amendment and all other documents and
instruments delivered in connection herewith.

     10. Effectiveness. This Amendment shall become effective as of January 24, 2008 (the “Sixth
Amendment Effective Date”) only upon satisfaction in full in the judgment of the Agent of each of
the following conditions:

	 	(a)	 	Amendment. Agent shall have received eight (8) original copies of this
Amendment duly executed and delivered by Agent, Lenders and Borrower and
acknowledged by the other Loan Parties.
	 
	 	(b)	 	Representations and Warranties. All representations and warranties contained in this
Amendment shall be true and correct on and as of the Sixth Amendment Effective Date.

     11. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF NEW YORK. THIS AGREEMENT AND EACH OTHER LOAN DOCUMENT SHALL BE DEEMED TO BE
A CONTRACT UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL, PURSUANT TO NEW YORK GENERAL
OBLIGATIONS LAW 5-1401, FOR ALL

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PURPOSES BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

     12. Counterparts. This Amendment may be executed by the parties hereto on any number of
separate counterparts and all of said counterparts taken together shall be deemed to constitute one
and the same instrument.

[SIGNATURE PAGES FOLLOW]

6

 

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

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	DICK’S SPORTING GOODS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	     /s/ Timothy E. Kullman
 

Timothy E. Kullman

 Senior Vice President and

Chief Financial Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL

CORPORATION, as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Joseph H. Burt	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph H. Burt	 	 
	 

	 	Its:
	 	Duly Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	LENDERS:	 	 
	 
	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC
CAPITAL
CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Joseph H. Burt	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph H. Burt	 	 
	 

	 	Its:
	 	Duly Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL
ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James M. Steff	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	James M. Steff	 	 
	 

	 	Title:
	 	 Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	     /s/ Andrew Cerassi	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Andrew Cerassi	 	 
	 

	 	Title:
	 	 Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	NATIONAL CITY
BUSINESS CREDIT,
INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Matthew Potter	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Matthew Potter	 	 
	 

	 	Title:
	 	 Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL

ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Anthony D. Braxton	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Anthony D. Braxton	 	 
	 

	 	Title:
	 	 Director	 	 
	 
	 	 	 	 	 	 
	 	 	CITIZEN’S BANK
OF
PENNSYLVANIA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	      /s/ Don Cmar	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Don Cmar	 	 
	 

	 	Title:
	 	 Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.

formerly known as JP MORGAN

CHASE BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	      /s/ James M. Barbato	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	James M. Barbato	 	 
	 

	 	Title:
	 	 Vice President	 	 

2

 

Each of the undersigned Loan Parties hereby (i) acknowledges each of the amendments and waivers
to the Credit Agreement effected by this Amendment and (ii) confirms and agrees that its
obligations under its Guaranty shall continue without any diminution thereof and shall remain in
full force and effect on and after the effectiveness of this
Amendment.

ACKNOWLEDGED,
CONSENTED and
 AGREED to as of
the date first written above.

	 	 	 	 	 
	AMERICAN SPORTS LICENSING, INC.	 	 
	 
	 	 	 	 
	By: 

Name:

	 	     /s/ Timothy E. Kullman
 

Timothy E. Kullman
	 	 
	Title:

	 	President	 	 
	 
	 	 	 	 
	DSG OF VIRGINIA, LLC	 	 
	 
	 	 	 	 
	By: 

Name:

	 	     /s/ Lee Belitsky
 

Lee Belitsky
	 	 
	Title:

	 	Secretary	 	 
	 
	 	 	 	 
	GALYAN’S TRADING COMPANY, INC.	 	 
	 
	 	 	 	 
	By: 

Name:

	 	     /s/ Timothy E. Kullman
 

Timothy E. Kullman
	 	 
	Title:

	 	Vice President, Secretary and	 	 
	 

	 	Treasurer	 	 
	 
	 	 	 	 
	GALYAN’S NEVADA, INC.	 	 
	 
	 	 	 	 
	By:

	 	     /s/ Timothy E. Kullman	 	 
	 

	 	 	 	 
	Name:

	 	Timothy E. Kullman	 	 
	Title:

	 	Secretary/Treasurer	 	 
	 
	 	 	 	 
	GALYAN’S OF VIRGINIA, INC.	 	 
	 
	 	 	 	 
	By: 

Name:

	 	     /s/ Timothy E. Kullman
 

Timothy E. Kullman
	 	 
	Title:

	 	Secretary/Treasurer	 	 

3

 

	 	 	 	 	 
	GOLF GALAXY, INC.	 	 
	 
	 	 	 	 
	By: 

Name:

	 	     /s/ John T. Wolfe
 

John T. Wolfe
	 	 
	Title:

	 	Vice President and Secretary	 	 
	 
	 	 	 	 
	GOLF GALAXY GOLFWORKS, INC.	 	 
	 
	 	 	 	 
	By: 

Name:

	 	     /s/ John T. Wolfe
 

John T. Wolfe
	 	 
	Title:

	 	Vice President and

Assistant Secretary	 	 

4EX-10.38

 

Exhibit 10.38

Written description of performance incentive awards

DICK’S SPORTING GOODS, INC.

FORM OF

FISCAL PERFORMANCE INCENTIVE GUIDELINES

Incentive bonus awards are intended to provide incentives and rewards for the contributions of
certain Corporate associates toward the successful achievement of the financial and business goals
of Dick’s Sporting Goods, Inc. and its subsidiaries (the “Company”) established for the applicable
performance period. These guidelines are subject to and controlled by Section 8 of the Dick’s
Sporting Goods, Inc. 2002 Stock Plan, as amended (the “2002 Plan”).

How We Award Incentive Compensation

We award additional cash amounts as part of the associate’s total compensation for the year. These
amounts are determined at the beginning of the fiscal year and delivered at the end of the year to
all associates who are eligible, based on their performance and/or the Company’s performance. This
annual incentive is intended to link a significant portion of compensation to the overall success
of the Company and the achievement of specific objectives.

How We Fund and Pay Out Incentives

Incentive payouts are based on two factors: the company’s ability to pay and its willingness to
pay.

Our ability to pay is directly tied to our ability to deliver an EBT (earnings before taxes) value
to our stockholders. If we achieve our EBT goal, we will fund the awards. If we don’t, there will
be no payouts.

Our willingness to pay is based on the individual associate’s performance in contributing to
pre-established goals. The specific components and weights are predetermined based on the
associate’s role in the organization.

Incentive Opportunity

Incentive targets are established for each exempt incentive-eligible position based on the
position’s contributions and level within the organization. Incentive payouts are expressed as a
percentage of incentive-eligible earnings. Incentive threshold, target and maximum percentages are
provided below.

	 	 	 	 	 	 	 
	Level	 	Threshold	 	Target	 	Maximum
	A
	 	%	 	%	 	%
	B
	 	%	 	%	 	%
	C
	 	%	 	%	 	%
	D
	 	%	 	%	 	%
	E
	 	%	 	%	 	%
	F
	 	%	 	%	 	%
	G
	 	%	 	%	 	%

 

 

Who’s Eligible

To be eligible, the associate must be assigned to an incentive-eligible position before November 1
of the Fiscal Year. Associates promoted or hired into an incentive-eligible position after October
31 will not be eligible to participate in any incentive payout for that year.

If employed for less than one full year (but prior to November 1) in an eligible position, the
associate’s incentive will be prorated using the incentive-eligible earnings for the eligible
service period to calculate the payout.

For associates who transfer on or after November 1 from one incentive-eligible position to another
Company incentive-eligible position, the incentive payout will be based on full-year,
incentive-eligible earnings and performance in the position from which the associate transferred.
The same applies to transfers from another Company incentive-eligible position to an eligible
position under the guidelines.

Transfers before November 1 from one eligible position to another eligible position will result in
a prorated payout based on the incentive-eligible earnings for the time spent in each position, as
well as the performance level achievement for each position.

Associates who receive an unsatisfactory performance review are not eligible to receive an award.

The Company may use discretion in determining reward amounts for any non 162(m) employee, to ensure
that the performance reward is appropriate.

How Performance and Incentive Payouts Are Calculated

Incentives are earned by achieving results in one or more of the following categories, as
recommended by the Chairman, CEO & President and approved, with respect to 162(m) employees, by the
Compensation Committee of the Board of Directors:

Company financial results — earnings metrics (e.g. EBT, net income), sales, return metrics (e.g.
ROIC, ROA, RONA), gross margin, etc. as determined by the Compensation Committee.

Company operational results — inventory turn ratio, customer satisfaction, etc.

Each goal is established with the performance metrics at threshold, target, and maximum. At the end
of the measurement period, the achievement level of the goal will be determined based on the actual
results against the target. Each goal is given a weight that is appropriate to the individual
associate’s role and contribution towards the Company’s success.

Actual achievement may fall between threshold, target and maximum for any goal. Incentive
percentages are calculated accordingly to represent the percentage achievement — not to exceed the
maximum percentage. The Company and the Compensation Committee determines whether the stated goals
have ben achieved.

Payment of Incentives

Final incentive payouts will be based on the Company’s audited financial statement for the fiscal
year and , with respect to 162(m) employees, the Compensation Committee’s written certification
that the performance goals and other material terms of the incentive bonus awards have been
attained.

 

 

Additionally, the CEO may further review, modify and approve individual non 162(m) employee awards
subsequent to the Compensation Committee’s approval.

To receive an incentive payout, the associate must be actively employed by the Company on the last
day of the fiscal year.

Incentive payments will include all applicable taxes and deductions, including 401(k) or deferred
compensation contributions as elected. Incentives are taxed at the Federal Supplemental Incentive
Tax rate plus Social Security and Medicare, plus any applicable state, local or other taxes.
Subject to 162(m) of the Internal Revenue Code, as amended, payments that are earned hereunder will
be made as described herein, and shall be made no later than two and one half months after the last
day of Dick’s Sporting Goods fiscal year in which the bonus relates.

Time while on an approved paid leave of absence (receiving incentive-eligible earnings) will be
used for incentive calculation purposes. Incentive-eligible earnings are earnings associated with
active days worked (to include retroactive payments) and pay for vacation, bereavement, holiday,
jury duty, personal days and sick pay. Earnings associated with incentive payments of any kind,
third-party disability insurance payments or any type of earnings not listed here are not
considered eligible earnings for calculating incentives.

Incentive bonus award guidelines are reviewed annually. The methodology may change in any future
year(s). Executive Management of Dick’s Sporting Goods reserves the right to amend, suspend,
terminate or make exceptions (in conformity with the 2002 Plan and Section 162(m) of the Internal
Revenue Code, as amended) at any time during the current fiscal year without notice.

This summary is not intended to be, and does not constitute in any manner, a contract of employment
between Dick’s Sporting Goods, Inc. and employees. Nothing herein shall be construed as a guarantee
of payment of any incentive compensation or award to any employee. These guidelines are not
intended to, nor may they be construed to, provide any guarantees of employment to any employee for
any period of time.

Notwithstanding the foregoing, with respect to any incentive bonus award that is intended to be
performance based within the meaning of Section 162(m) of the Internal Revenue Code , these
guidelines are limited by, subject to and controlled by Section 8 of the 2002 Plan, and to the
extent that any provision of these guidelines are inconsistent with Section 162(m) of the Internal
Revenue Code, as amended, the guidelines shall not apply and the Compensation Committee shall
disregard such provisions.

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