Document:

exv10w6

 

AGREEMENT

     THIS AGREEMENT (the “Agreement”) is effective the 9th day of December, 1986, by and between
VOIT CORPORATION, a New York corporation (“Voit”), and BSN CORP., a Delaware corporation (“BSN”).

WITNESSETH:

     WHEREAS, Voit is the owner of the “Voit” trademark (the “Trademark”) as may be covered by one
or more of the following United States registrations: Registration Number 1,352,803, dated August
6, 1985; Registration Number 1,306,032, dated November 20, 1984; Registration Number 1,199,783,
dated May 4, 1982; Registration Number 719,602, dated August 8, 1981; Registration Number 609,517,
dated July 26, 1975; Registration Number 884,519, dated January 20, 1970; Registration Number
510,267, dated May 31, 1969; and

     WHEREAS, BSN is desirous of acquiring certain rights in the Trademark during an initial term and
one or more extension terms as herein defined; and

     WHEREAS, Voit is desirous of granting such rights to BSN on the terms and conditions hereinafter
set forth.

     NOW, THEREFORE, in consideration of the mutual covenants made herein and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto agree as follows:

     1. Grant of License. Voit hereby grants to BSN, for a period commencing on the date hereof
and terminating on December 31, 1989 (the “Initial Term”) and thereafter for three (3) consecutive
renewal periods (“Extension Options”), an exclusive license in and to the Trademark in the United
States for use in connection with the manufacture, sale and advertisement of the products listed on
Schedule A attached hereto (the “Products”) and solely to the following customers (the
“Customers”), such rights licensed hereunder being referred to as the “Trademark Rights”:

     (a) Those customers of Voit listed on Schedule B attached hereto;

     (b) Institutional sporting goods customers, including but not limited to, recreational
departments, educational institutions, youth sports leagues, community service
groups, PTA’s, athletic teams and other team sports associations;

     (c) Any reseller of sporting goods which realizes more than 50% of its total sporting goods
revenues from customers of the type listed in Paragraph l(b) above; and

     (d) Persons or entities receiving, or purchasing by or through, BSN’s various catalogs.

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     The Trademark Rights shall consist solely of the rights set forth above, and BSN shall have no
right in and to the Trademark for use for any purpose other than as expressly set forth herein. It
is expressly understood that Voit and its designees, licensees, successors and assigns may sell any
products of the type listed as the Products to any customers not included within the Customers, and
that Voit or its designees, licensees, successors and assigns may sell to Customers any products
other than the Products. BSN represents that it does not sell to mass merchandisers through its
catalogs.

     If and to the exent that Products are sold by Voit to persons or entities described in Paragraph l(d), BSN agrees to cooperate with Voit in resolving any conflict, the objective being
that either Voit or BSN (but not both) shall be entitled to sell Products to a particular customer
hereunder.

     Voit shall not sell to any Customer any products that bear the Trademark and are of the type listed
herein as the Products.

     2. Representations and Warranties.

(a) Voit hereby represents and warrants that:

     (i) it owns the entire right, title and interest in and to the Trademark free and clear of all
liens, claims or encumbrances of any kind (except for the liens of Chemical Bank and Manufacturers
Hanover Trust Company);

     (ii) it has the right, power and authority to enter into this Agreement;

     (iii) this Agreement has been duly executed and delivered and is a valid and binding agreement of
Voit;

     (iv) upon the consent of Chemical Bank and Manufacturers Hanover Trust Company, the execution and
delivery of this Agreement, and the performance by Voit of its obligations hereunder, are not in
violation of and will not conflict with any agreement, law, order or other restriction binding on
Voit; and

     (v) the registrations covering the Trademark are valid and subsisting.

(b) BSN hereby represents and warrants as of the date hereof that:

     (i) it has the right, power and authority to enter into this Agreement;

     (ii) this Agreement has been duly executed and delivered, and is a valid and binding agreement of
BSN; and

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     (iii) the execution and delivery of this Agreement, and the performance by BSN of its obligations
hereunder, are not in violation of and will not conflict with any agreement, law, order or other
restriction binding on BSN.

     3. Term of Extension Options. Each of the Extension Options shall have a term of
five (5) years (each of such extension terms being hereinafter referred to as an “Extension
Term”), the term of the first Extension Option to commence on January 1, 1990, and the terms of the
second and third Extension Options to commence on January 1,
1995 and 2000, respectively.

     4. Exercise of Extension Options. Each Extension Option shall be exercised by BSN’s
giving notice of such exercise to Voit not less than 180 days prior to the expiration of the
Initial Term or the then-current term of Extension Option, as the case may be; provided, however,
that BSN shall not be entitled to exercise any Extension Option unless, at the time of such
exercise, BSN is in material compliance with all the terms contained in this Agreement.

     Notwithstanding anything to the contrary contained herein, Voit may terminate an Extension Term and
any unexercised Extension Option(s) in the event that BSN fails to substantially conform to the
quality control standards established or to be established pursuant to Paragraph 8 hereof.

     5. License Fee. The license fee for the Trademark Rights herein granted shall be
the greater of: (a) $100,000 per Contract Year (the “Minimum License Fee”); or (b) 3.75% of the
“net selling price” (gross selling price less returns, transportation costs and insurance charges and net of applicable terms) of the Products during each
Contract Year (the “Earnout Price”). As used herein, a “Contract Year” shall mean a calendar year,
except that the first Contract Year shall be deemed to extend from the date hereof until December
31, 1987. The purchase price for each Extension Option shall be $10.00.

     6. Exercise Price. The Extension Options may be exercised in the manner specified
in Paragraph 4 by the payment of the following monies:

     (a) For each Contract Year during the first Extension Term — the greater of the Minimum
License Fee or the Earnout Price as herein defined.

     (b)
For each Contract Year during the second and third Extension Terms
— the greater of: (i)
the average Earnout Price earned during the three (3) calendar years immediately preceding the
Extension Term in question, but in no event greater than $200,000.00 or less than $100,000.00 (the
“Minimum Exercise Price”); or (ii) the Earnout Price.

In connection with the calculation of the Earnout Price during any particular Contract Year, each
Contract Year shall be independent of all other Contract Years. BSN’s not being obligated to make
payments of the Earnout Price during a prior year shall not affect its obligation to make payment
of the Earnout Price in a subsequent Contract Year.

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     7. Payment.

     (a) Simultaneously with the execution hereof, BSN shall pay Voit the sum of $300,000.00 as
prepayment of the Minimum License Fee for the Initial Term of this Agreement.

     (b) During each Contract Year following the Initial Term, the Minimum License Fee or Minimum
Exercise Price, as appropriate, shall be paid in advance of the Contract Year to which same
applies.

     (c) The Earnout Price shall be accounted for and all amounts due shall be paid annually,
within forty-five (45) days after the close of the Contract Year for which the respective payment
of the Earnout Price is due. Upon reasonable advance notice, BSN’s records relating to the sale
of Products pursuant to this Agreement shall be available for inspection and copying by Voit or its
designees during business hours.

     (d) Attached hereto as Schedule C is an accounting of all Products currently in BSN’s
inventory or being purchased by BSN pursuant to the Inventory Purchase Agreement of even date
herewith (collectively, the “Exempt Products”). The Earnout Price shall not be paid pursuant to
this Agreement for the sale of the Exempt Products. For purposes of the Earnout Price that may
become due and owing to Voit pursuant to this Agreement, all sales from BSN’s inventory shall be
deemed to be on a first-in, first-out basis.

     8. Quality Control. The following provisions shall apply during the Extension
Term(s) of this Agreement as well as during the Initial Term:

     (a) The use by BSN of the Trademark and the manufacture and sale of any goods in association
therewith, shall substantially conform to the standards of quality employed by Voit in the
manufacture of goods sold under such mark or to such standards as may be reasonably established by
Voit from time to time. BSN shall permit Voit and its designees, on reasonable notice, to inspect all the facilities and equipment
used in connection with the manufacture of such goods, and to make such other inspections as Voit
shall consider reasonably necessary in order to assure, to its reasonable satisfaction, that such
goods substantially conform to said standards.

     (b) BSN shall make available to Voit or its designees, representative samples of its
advertising material and labeling and the like which include the Trademark. BSN shall not use
any such material which is not substantially acceptable to Voit, which acceptance shall not be
unreasonably withheld.

     (c) BSN shall submit samples of any Products which BSN proposes to sell but which are not
listed, on the date hereof, in the Voit Product Catalogue (“New Products”). Voit may prohibit BSN
from using the Trademark in connection with the New Products if Voit determines that such New
Products do not conform to the standards of quality reasonably established by Voit.

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     9. Ownership of the Trademark. BSN acknowledges Voit’s exclusive right, title
and interest in and to the Trademark, subject to BSN’s rights under this Agreement and the liens of
Chemical Bank and Manufacturers Hanover Trust Company. BSN shall not at any time do or cause to be
done any act or thing, in any manner, harming, disparaging, infringing or contesting all or any
part of the right, title and interest of Voit in and to the Trademark. In connection with its use
of the Trademark pursuant to this Agreement, BSN shall not in any manner represent that it has any
ownership in the Trademark and the registrations and any renewals thereof, and BSN acknowledges
that use of the Trademark shall not create in BSN’s favor any right, title or interest in or to the
Trademark, but all uses of the Trademark by BSN shall inure to the benefit of Voit. In the event
that BSN proposes to use the Trademark on products not specifically covered by any of the United
States Trademark Registrations, BSN shall promptly notify Voit thereof, and cooperate with Voit, at
Voit’s expense, in the filing of such applications for Voit’s registration as Voit shall deem
advisable. Upon termination of this Agreement in any manner provided herein, BSN will have a
reasonable time thereafter, but not more than six (6) months, to cease and desist from all use of
the Trademark in any way and will at no time adopt or use, without Voit’s prior written consent,
any words or marks which are likely to be similar to or confusing with the Trademark as applied to the Products.

     10. Infringement.

     (a) During the Initial Term and any Extension Term(s), BSN shall promptly notify Voit
of any infringement of the Trademark as soon as BSN learns of same.

     (b) Voit shall have the prior right, at its discretion, to institute and prosecute suits to
enjoin and/or collect damages from any infringer of the Trademark; provided, however, that in
the event Voit fails to diligently institute and prosecute any such suit and BSN establishes (to
Voit’s reasonable satisfaction) that failure to prosecute such suit would materially impair BSN’s
rights under this Agreement, BSN may institute and prosecute same, whereupon BSN shall be entitled
to all proceeds that are received from such suit or through the settlement thereof. Except as
provided in the immediately preceding sentence, Voit shall be entitled to all proceeds that are
received from any such suit(s) or through the settlement of any such suit(s) or threatened suit(s).
The parties shall cooperate fully with each other in prosecuting any claim, suit or proceeding
pursuant to this Paragraph 10.

     11. Registration of Trademark Rights. If the law permits, Voit shall make
application to register BSN as a Permitted User or Registered User of the Trademark during the
Initial Term and any Extension Term(s), and if necessary, or if requested by Voit, BSN undertakes
to join in such application under the conditions of this Agreement and to execute any such
documents and to take such action as may be reasonably necessary to implement such application.

     12. Maintenance of Trademark. Voit shall use reasonable efforts to maintain the
Trademark and the registrations in the United States so as to enable the Products to be distributed
and sold under the Trademark as provided herein. Voit shall not, and shall not permit other persons
to, use the Trademark in the United States in connection with the Products.

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     13. Termination. If BSN:

     (a)
shall fail to pay any monies due Voit pursuant to Paragraphs 5 and 6 hereof for a period
of 30 days;

     (b)
materially fails to perform any of the other terms of this Agreement and such failure(s)
continues for a period of 30 days after receiving written notice specifying such failure(s) in
reasonable detail; or

     (c) uses the Trademark, during any Extension Term, on goods manufactured by
or for BSN that fail to substantially conform to the standards of quality currently employed by
Voit in the manufacture of goods sold by it under such marks or to such standards as may be
reasonably established by Voit from time to time, and such failure(s) continues for a period of 30
days after receiving notice specifying such failures in reasonable detail;

then such event or failure shall be an “Event of Default”, whereupon Voit may terminate this
Agreement upon giving notice to BSN at least 30 days before the time when termination is to take
effect, and thereupon this Agreement shall become void, but without prejudice to the rights of
either party to monies due or to become due under this Agreement; provided, however, that if a
non-monetary event or failure cannot, with due diligence on the part of BSN, be cured within said
30-day period, same shall not become an Event of Default, giving rise to the right of Voit to
terminate this Agreement, if within said 30-day period BSN undertakes action to cure same and
thereafter continuously prosecutes the curing of same with due diligence,

     14. Security Interest. To secure BSN against damages incurred as a result of this
Agreement being rejected (pursuant to 11 U.S.C. $ 365(a) or any replacement provision of the
Bankruptcy Code) prior to the expiration of the Initial Term in or as part of any bankruptcy or
similar proceeding, Voit hereby pledges, assigns and transfers to BSN, and grants to BSN a
continuing security interest in and to, all of the Trademark Rights and any and all proceeds
therefrom, including proceeds from any license. Such damages shall be equal to (i) $300,000
multiplied by a fraction the numerator of which shall be the number of whole months remaining in the Initial Term and the
denominator of which shall be 36, (ii) less any monies constituting the Earnout Price that are due
and owing to Voit pursuant to Paragraph 5(b) for Contract Years ending previous to such bankruptcy
or other proceeding, (iii) less the excess, if any, of (A) the Earnout Price as applied to Products
sold by BSN during the Contract Year during which this Agreement is rejected as part of a
bankruptcy or other proceeding (subject, however, to Paragraph 7[d]), over (B) the pro-rata portion
of the Minimum License Fee attributable to the period from the commencement of the Contract Year in
which this Agreement is so rejected until the date on which this Agreement is rejected. In the
event that the foregoing yields a negative amount, such amount shall be paid in the manner
specified in Paragraph 7(c). BSN shall have the right to record the security interest granted
herein with applicable state and/or federal authorities, and Voit agrees to execute whatever
documents BSN reasonably requires in order to enable BSN to perfect its security interest in and to
the Trademark Rights.

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     15. Closing. The Closing (herein so called) under this Agreement shall take place
on or about December 10, 1986, at the offices of Squadron, Ellenoff, Plesent & Lehrer, 551 Fifth
Avenue, New York, New York 10017. At the Closing, BSN shall deliver to Voit the purchase price for
the Initial Term, and Voit shall deliver to BSN an instrument or instruments executed by Chemical
Bank and Manufacturers Hanover Trust Company in the form of Schedule D attached hereto.

     16. Miscellaneous Agreements.

     (a) Amendment. This Agreement shall not be amended except by a written instrument
duly executed by each of the parties hereto. This Agreement sets forth the understandings of the
parties with respect to the Trademark.

     (b) Assignment and Binding Effect. This Agreement may not be assigned, and
the Trademark Rights may not be further assigned, by any party hereto without the prior written
consent of the other party, except that: (i) either party may assign all or a portion of its rights
and obligations under this Agreement to that party’s affiliate, parent or subsidiary without the
other party’s consent; and (ii) Voit may assign all or a portion of its rights under this Agreement
to Chemical Bank and Manufacturers Hanover Trust Company. All of the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective
parties hereto and the successors and assigns of the parties hereto.

     (c) Waiver. Any term or provision of this Agreement may be waived at any time by the party
entitled to the benefit thereof by a written instrument duly executed by such party.

     (d) Notices. Any notice, request, demand, waiver, consent, approval, or other communication
which is required or permitted to be given to any party hereunder shall be in writing and shall be
deemed given only if delivered by the party personally or sent to the party by telegram or by
registered or certified mail (return receipt requested, with postage and registration or
certification fees, thereon prepaid, addressed to the party at its address set forth below:

If to Voit:

Voit Corporation

45 Gould Street

Rochester, New York 14610-3099

With a copy to;

Squadron, Ellenoff, Plesent & Lehrer

551 Fifth Avenue

New York, New York 10016

Attention: Theodore Ellenoff, Esq.

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If to BSN:

BSN Corp.

P.O. Box 7726

Dallas, Texas 75209

Attn: Michael J. Blumenfeld, President

With a copy to;

Hughes & Luce

1000 Dallas Building

Dallas, Texas 75201

Attn: Alan J. Bogdanow, Esq.

or
to such other address or person as any party may have specified in a notice given to
the other party as provided herein. Such notice, request, demand, waiver, consent, approval or
other communication will be deemed to have been given as of the date so delivered, telegraphed or
mailed.

     (e)
Governing Law. This Agreement shall be governed by and interpreted and enforced
in accordance with the laws of the State of New York.

     (f)
No Benefit to Others. The agreements in this Agreement are for the sole benefit
of the parties hereto and their respective successors and assigns, and they shall not be construed
as conferring and are not intended to confer any rights on any other persons or entities.

     (g)
Headings. All paragraph headings are for convenience only, and shall in no way
modify or restrict any of the provisions hereof.

     (h)
Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original, and Voit and BSN may become a party hereto by executing a counterpart hereof.
This Agreement and any counterpart so executed shall be deemed to be one and the same instrument.

     (i)
Further Assurances. At any time and from time to time, each party hereto shall execute
such additional instruments and perform such other acts as may be reasonably requested by the other
parties to confirm or perfect or otherwise to carry out the intent and purposes of this Agreement.

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     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above
written.

	 	 	 	 	 
	 	VOIT CORPORATION 

 	 
	 	By:  	/s/ Theodore Ellenoff
 	 
	 	 	Theodore Ellenoff, Secretary 	 
	 	 	 	 
	 
	 	BSN CORP.

 	 
	 	By:  	/s/ Michael  J. Blumenfeld
 	 
	 	 	Michael  J. Blumenfeld , President 	 
	 	 	 	 

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SCHEDULE A

Products

	1.	 	Inflated balls and accessory items
	 
	2.	 	Gym mats
	 
	3.	 	Baseballs and softballs
	 
	4.	 	Badmitton birds
	 
	5.	 	Baseball batting tees
	 
	6.	 	Baseball masks, shin guards and chest protectors
	 
	7.	 	Field markers
	 
	8.	 	Baseball bases
	 
	9.	 	Baseball and softball bats
	 
	10.	 	LaCross equipment
	 
	11.	 	Football shoulder pads
	 
	12.	 	Athletic hosiery and technical footwear (defined as spiked, studded or cleated
athletic shoes)
	 
	13.	 	Athletic supporters
	 
	14.	 	Track and field equipment

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AMENDMENT
NO. 1 TO LICENSE AGREEMENT

THIS
AMENDMENT TO LICENSE AGREEMENT (this “Amendment”), effective as of the first day of August,
2003, is by and between Sport Supply Group, Inc., a Delaware
corporation (“SSG”) and Voit
Corporation, a Texas corporation (“Voit”).

     WHEREAS,
Voit Corporation, a New York corporation (“Voit NY”) and BSN Corp., a Delaware corporation (“BSN”) entered into that certain Agreement dated to be effective as of
December 9, 1986 (the “License Agreement”).

     WHEREAS, effective as of September 30, 1998, BSN assigned all of its rights, title and interest in
and to the License Agreement to SSG pursuant to Section 16(b) of the License Agreement.

     WHEREAS, effective as of December 20, 2002, Voit acquired all of the rights, title and interest in
and to the License Agreement from Voit NY’s successor in interest.

     WHEREAS, Voit and SSG desire to amend certain terms and provisions of the License Agreement
pursuant to the terms and provisions of this Amendment.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree to the following:

	1.	 	Section 1 of the License Agreement is hereby amended by deleting its first
paragraph and replacing it with the following

	 	1.	 	Grant of License. Voit hereby grants to BSN, for a period commencing on the date
hereof and terminating on December 31, 1989 (the “Initial Term”) and thereafter for four (4)
consecutive renewal periods (“Extension Options”), an exclusive license in and to the Trademark in
the United States for use in connection with the manufacture, sale and advertisement of the
products listed on Schedule A attached hereto (the “Products”) and solely to the following
customers (the “Customers”), such rights licensed hereunder being referred to as the “Trademark
Rights”:

	2.	 	Section 1 of the License Agreement is hereby amended by deleting Section 1(d)
in its entirety and replacing it with the following:

	 	(d)	 	Persons or entities receiving SSG’s various catalogs, or purchasing by or through SSG’s
various catalogs and/or websites.

	3.	 	Section 1 of the License Agreement is hereby amended by adding the following
subparagraphs after subparagraph l(d):

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	 	(e)	 	Samsclub.com and its affiliates;
	 
	 	(f)	 	Amazon.com and its affiliates pursuant to the terms and provisions of that certain
Merchants@Amazon.com Participation Agreement by and between Amazon.com Payments, Inc. and
SSG, the relevant provisions of which have been provided to Voit;
	 
	 	(g)	 	Premium and Incentive wholesale accounts;
	 
	 	(h)	 	On a non-exclusive basis, consumers (including, without limitation, individual consumers
purchasing for their own account) and On-Line Sellers (as defined below) located through E-Commerce
(as defined below). Voit acknowledges that the right and license granted herein includes, but is
not limited to, the right for On-Line Sellers who have purchased or agreed to purchase Voit-branded
Products from SSG, to resell and distribute Voit-branded Products to any person or entity through
E-Commerce. “On-Line Sellers” shall mean any and all
entities that sell, offer to sell, resell or
offer to resell a Product through E-Commerce. “E-Commerce” shall mean conducting business
(including the advertisement, offer for sale, sale and distribution of products) through a global,
international, national, local or other electronic network (such as the Internet, private network
or corporate intranet), or any subpart thereof, which may be accessed or created now or in the
future, and any other current or future means or method of advertisement, sale, order taking or
distribution via an electronic means. Since the right to sell through E-commerce (whether on SSG’s
websites or through Online Sellers) contemplates marketing and advertising Voit branded Products
throughout the entire world, Voit hereby grants to SSG the non-exclusive right and license for (1)
SSG, (2) customers of SSG who have or may purchase Voit-branded Products from SSG, and (3) others
authorized by SSG, to display and otherwise promote, advertise, merchandise, and offer for sale all
Voit-branded Products throughout the world to any person or entity of any type, including but not
limited to the general public.
	 
	 	(i)	 	It is expressly understood that Voit and its designees, licensees, successors and
assigns may sell any products of the type listed as Products to any customers not included within
the Customers given on an exclusive basis, and that SSG or its designees, licensees, successors and
assigns may not sell to Customers any products other than the Products.

	4.	 	Section 2(a)(i) of the License Agreement is hereby amended by deleting such
Section and replacing it with the following:

	 	(j)	 	it owns the entire right, title and interest in and to the Trademark free and clear of
all liens, claims or encumbrances of any kind;

	5.	 	Section 2(a)(iv) of the License Agreement is hereby amended by deleting such
Section and replacing it with the following:

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	 	(iv)	 	the execution and delivery of this Agreement, and the performance by Voit of its
obligations hereunder, are not in violation of and will not conflict with any agreement, law,
order or other restriction binding on Voit;

	6.	 	Section 3 of the License Agreement is hereby amended by deleting such Section
and replacing it with the following:

3.
Term of Extension Options. Each of the Extension Options shall have a term of (5)
five years (each of such terms being hereinafter referred to as an “Extension Term”), the term of
the first Extension Option to commence on January 1, 1990, and the terms of the second, third and
forth Extension Options to commence on January 1, 1995, 2000 and 2005, respectively.

	7.	 	Section 6(b) is deleted in its entirety and replaced
with the following:

        (b) For each Contract Year during any Extension Term, the greater of: (i) the average Earnout
Price earned during the three (3) calendar years immediately preceding the Extension Term in
question, but in no event greater than $300,000 or less than $ 100,000 (the “Minimum Exercise Price”); or (ii) the Earnout Price.

	8.	 	 The first sentence of Section 9 (Ownership of the Trademark) of the License Agreement is
deleted and replaced with the following sentence (it is understood that the remaining Section 9
after the first sentence remains unchanged):

	 
	 	 	 “SSG acknowledges Voit’s exclusive right, title and interest in and to the Trademark, subject to
SSG’s rights under this Agreement.”

	9.	 	Section 16(b) (Assignment and Binding Effect) of the License Agreement is
deleted in its entirety and replaced with the following:

	 	(b)	 	Assignment and Binding Effect. This Agreement may be assigned by
Voit provided assignee agrees to be bound by the terms and conditions
of this Agreement. It is the
intention of the parties that SSG or an authorized distributor of SSG shall sell and distribute the
Products. SSG may not assign, sub-license or transfer this Agreement without the prior written
approval of Voit which shall not be unreasonably conditioned, delayed, or withheld, except that SSG
may assign all or a portion of its rights and obligations under this Agreement to its affiliate,
parent or subsidiary without Voit’s consent. Subject to the foregoing exception, any attempted
assignment, sub-license or transfer by SSG without such prior written consent shall constitute a
material default in the obligations of SSG hereunder. Any consent by Voit to the assignment of this
Agreement shall not relieve SSG from its obligations and liabilities hereunder, unless Voit

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	 	 	 	shall also expressly in writing agree to such relief. All of the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors and assigns.

10. The addresses in Section 16(d) (Notices) are hereby deleted in their entirety and
replaced with the following:

If to Voit:

Voit Corporation

6391 De Zavala Road

Suite 223-A

San Antonio, TX. 78249

Attn: CEO

If to SSG:

Sport Supply Group, Inc.

1901 Diplomat Drive

Farmers Branch, TX. 75234

Attn: General Counsel

	11.	 	Section 16(e) (Governing Law) is hereby deleted in its entirety and replaced with
the following:

THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS (EXCLUDING PRINCIPLES OF CONFLICTS OF LAWS).

	12.	 	Schedule A of the License Agreement (Products) is amended to include the
following products:

	 	15.	 	Soccer equipment including but not limited to shin guards, uniforms, socks, goal keeper gloves,
indoor/outdoor foam balls, soccer goals and nets, and other accessories.
	 
	 	16.	 	Exercise equipment.

	13.	 	Except as modified herein, all other terms and conditions of the License Agreement shall
continue in full force and effect. Any conflict between the provisions of this Amendment and the
provisions of the License Agreement will be resolved in favor of this
Amendment.

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     IN WITNESS HEREOF, Voit and SSG have respectively signed this Amendment to be
effective as of the date first hereinabove set forth.

	 	 	 	 	 	 	 
	VOIT CORPORATION	 	SPORT SUPPLY GROUP, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Jose Ramon Elizondo
	 	By:
	 	/s/ Terrence M. Babilla
	 

	 	 
	 	 	 	 
	 

	 	Jose Ramon Elizondo
	 	 	 	Terrence M. Babilla
	 
	 	 	 	 	 	 
	Title: Chief Executive Officer	 	Title: Chief Operating Officer
	 
	 	 	 	 	 	 
	Date: 8-8-03	 	Date: 7-29-03

5

 

Writer’s Direct Dial: (972) 406-3477

Fax: (972) 406-3476

Email: tbabilla@sportsupplygroup.com

1901 Diplomat Drive

Farmers Branch, TX 75234

June 16, 2004

VIA CERTIFIED MAIL

NO. 7002 0460 0003 9058 1511

RETURN RECEIPT REQUESTED

Voit Corporation

6391 DeZavala Road, Suite 223-A

San Antonio, Texas 78249

	 	 	 	 	 
	 

	 	Attn:
	 	Jose Ramon Elizondo A
	 

	 	 	 	Chief Executive Officer
	 
	 

	 	Re:
	 	License Agreement between Sport Supply Group, Inc. and Voit Corporation, as amended by
Amendment No. 1 to License agreement dated August 2, 2003

Dear Jose:

     Pursuant
to ¶ 6, Section 3 of Amendment No. 1 to License Agreement between Sport Supply Group, Inc.
(“SSG”) and Voit Corporation (“VOIT”), SSG is hereby exercising the option to extend the term of
the License Agreement for an additional five-year Extension Term. The additional term will extend
the License Agreement to December 31, 2010.

     We look forward to continuing our mutually beneficial relationship with VOIT. Please do not
hesitate to contact me directly at (972) 406-3477 if you have any questions or comments.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/
Terrence M. Babilla
 	 
	 	Terrence M. Babilla 	 
	 	Chief Operating Officer,

Executive Vice President and

General Counsel 	 
	 

TMB/bc

cc:     Ron Mooreexv10w7

 

SAP AMERICA, INC.

R/3 SOFTWARE END-USER LICENSE AGREEMENT

(“Agreement”)

     This Agreement is made effective as of the 11th day of June, 1998, by and between SAP
AMERICA, INC., a Delaware corporation, with offices at 701 Lee Road, Wayne, Pennsylvania 19087
(“SAP”), and Sport Supply Group, Inc., a Delaware corporation, with offices at 1901 Diplomat Drive,
Farmers Branch, Texas 75234 (“Licensee”).

RECITAL

     WHEREAS, SAP desires to grant to Licensee and Licensee desires to accept from SAP, a license
to Use (as defined herein) SAP’s proprietary R/3 Software (as defined herein) upon the terms and
conditions hereinafter set forth;

         NOW, THEREFORE, SAP and Licensee agree as follows:

	1.	 	DEFINITIONS.
	 
	1.1	 	“ABAP /4 Development Workbench Users” (“D/W Users”) means those individuals
authorized to use the ABAP/4 Development Workbench. Each D/W User must also be licensed as a
Basis/Workflow User.
	 
	1.2	 	“Affiliate” means a corporation located in the Territory in which Licensee owns more
than fifty percent of the voting securities. Any such entity shall be considered an
Affiliate for only such time as Licensee continues to own such equity interest.
	 
	1.3	 	“Basis/Workflow Users” means those individuals authorized to access the licensed
Software solely for the purpose of executing the following transactions: (i) document
management, including optical archiving; (ii) workflow organizational management; (iii)
monitoring and administration of the Software; (iv) creating IDocs; (v) initializing
workflows; (vi) all Enterprise Office/HR User transactions in the licensed Software as
specified herein; and (vii) all transactions in the licensed Human Resources functionality.
	 
	1.4	 	“Business Third Party” means any third party that requires access to the Software in
connection with the operation of Licensee’s and/or its Affiliates’ business including, but not
limited to, customers, distributors and suppliers.
	 
	1.5	 	“Correction Level” means a change to the Software between Versions (3. l(a)).
	 
	1.6	 	“Designated Unit” means each individual computer in which the Software and
Third-Party Database are installed.
	 
	1.7	 	“Documentation” means SAP’s standard documentation, in any medium, which is delivered
to Licensee under this Agreement, including SAP’s standard manuals, program listings, data
models, flow charts, logic diagrams, functional specifications, instructions, and complete or
partial copies of the foregoing.
	 
	1.8	 	“Enterprise Office/HR Users” means those individuals authorized to access the
licensed Software solely for the purpose of executing the following transactions: (i) employee
records maintenance; (ii) employee time and attendance entry; (iii) employee travel and
expense report filing; (iv) employee directory; (v) employee training registration; (vi)
employee opportunity inquiry and response; (vii) calendar functions; (viii) employee specific
purchase requisition; and (ix) e-mail. Each Enterprise Office/HR User may execute the above
transactions solely for such individual’s own purposes or on behalf of other licensed Users
and may not execute transactions for or on behalf of unlicensed individuals.
	 
	1.9	 	“Extension” means an addition to the Software which does not require a Modification.
	 
	1.10	 	“Information Users” (“Info Users”) means those individuals authorized to access the
licensed Software solely to perform “ read only ” Software transactions. Each Information User
must also be licensed as a Basis/Workflow User.
	 
	1.11	 	“Modification” means a change to the Software which changes the source code.

SAP CONFIDENTIAL

 

 

	1.12	 	“Named Users or Operational Users” means those individuals authorized to access the
licensed Software to execute Software transactions. Each Named or Operational User must
also be licensed as a Basis/Workflow User.
	 
	1.13	 	“Non-Productive Use” means Use of the Software solely for Licensee’s or an authorized
Affiliate’s internal training, testing or developmental work.
	 
	1.14	 	“Productive Use” means Use of the Software solely to operate Licensee’s or an
authorized Affiliate’s business.
	 
	1.15	 	“Program Concepts” means the concepts, techniques, ideas, and know-how embodied and
expressed in any computer programs or modules included in the Software, including their
structure, sequence, and organization.
	 
	1.16	 	“Proprietary Information” means: (i) with respect to SAP and SAP AG, the Software and
Documentation and any complete or partial copies thereof, the Program Concepts, Third-Party
Database, any other third- party software licensed with or as part of the Software, benchmark
results,; and (ii) information reasonably identifiable as the confidential and proprietary
information of SAP or Licensee or their licensors excluding, any part of the SAP or Licensee
Proprietary Information which: (a) is or becomes publicly available through no act or
failure of the other party; or (b) was or is rightfully acquired by the other party from a
source other than the disclosing party prior to receipt from the disclosing party; or (c)
becomes independently available to the other party as a matter of right.
	 
	1.17	 	“Release” means each issuance of the Software, excluding third party software, identified by
the numeral to the left of the decimal point (e.g., 3.0).
	 
	1.18	 	“Requisitions and Confirmation Users” (“R/C Users”) means those individuals authorized to
access the licensed Software solely for the purpose of submitting purchase requisitions or
entering production order completion confirmations, Each R/C User must also be licensed as a
Basis/Workflow User.
	 
	1.19	 	“SAP AG” means SAP Aktiengesellschaft, the licensor of the SAP Proprietary Information to SAP.
	 
	1.20	 	“Session Users” means (i) that number of individuals, other than employees of Licensee,
Affiliates, or identifiable employees of Business Third Parties, licensed to simultaneous
execute sessions on an internet server or Third Party Front-End interfaced to the Software or;
(ii) that number of devices authorized to simultaneously execute sessions on an internet
server or Third Party Front-End interfaced to the Software.
	 
	1.21	 	“Software” means (i) all software specified in agreed upon Appendices hereto, developed by
SAP AG and delivered to Licensee hereunder; (ii) any Releases, Versions, or Correction Levels
of the Software as contemplated by this Agreement; and (iii) any complete or partial copies of
any of the foregoing.
	 
	1.22	 	“Territory” means the United States of America and any additional countries as agreed upon in
advance in writing by the parties.
	 
	1.23	 	“Third Party Front-End” means any Licensee or third party software and/or device
interfaced to the Software.
	 
	124	 	“Third-Party Database” means third-party proprietary database software licensed through
SAP to Licensee.
	 
	1.25	 	“Use” means to load, execute, access, employ, utilize, store, or display the Software.
	 
	1.26	 	“Users” means any combination of Named or Operational, Information, R/C, D/W, Basis/Workflow,
Enterprise Office/HR, or Session Users licensed under this Agreement.
	 
	1.27	 	“Version” means each issuance of each Release of the Software, excluding third party
software, identified by the numeral to the right of the decimal point (3.1).

     SAP CONFIDENTIAL

2

 

	2.	 	LICENSE GRANT.
	 
	2.1	 	Grant of License.

(a) Subject to this Agreement, SAP grants and Licensee accepts, a non-exclusive, perpetual
(unless terminated in accordance with Section 5 herein) license for Users to Use the
Software, Documentation, other SAP Proprietary Information and Third-Party Database provided
by SAP to Licensee, at specified site(s) within the Territory for Productive and
Non-Productive Uses. This license does not permit Licensee to: (i) Use the Software and
Third-Party Database for a service bureau application; or (ii) sublicense, or rent the
Software or Third-Party Database.

(b) Licensee agrees to install the Software and Third-Party Database only on Designated
Unit(s), intranet server(s) or internet server(s) as identified by Licensee pursuant to this
Agreement and which have been previously approved by SAP in writing or otherwise officially
made known to the public as appropriate for Use or interoperation with the Software and
Third Party Database. The maximum number of Users licensed to directly or indirectly
access the Software, and Third Party Database, shall be specified in Appendices to this
Agreement. Licensee shall promptly provide written notice to SAP if the number of Users
exceeds such maximum number.

(c) Licensee may transfer the Software and Third-Party Database from one Designated Unit to
another at no additional license fee, and shall provide written notice to SAP within ten
business days of such installation. Licensee shall be responsible for the cost of any
migration tools, Third-Party Database costs, third-party software or additional Software
required for the new Designated Unit. The Software and Third-Party Database must be
promptly deleted in their entirety from the Designated Unit no longer in use and from each
back-up copy for that Designated Unit.

	2.2	 	Authorization of Affiliates to Use the Software. Affiliates shall be authorized to
Use the Software and Third-Party Database; provided that: (i) each Affiliate shall
first sign and deliver to SAP its agreement to be bound by the terms herein in the form of
Exhibit B attached hereto; and (ii) such Use shall be subject to the following: (A) Licensee
accepts responsibility for the acts or omissions of such Affiliate as if they were Licensee’s
acts or omissions; (B) Licensee shall indemnify SAP against losses or damages suffered by SAP
arising from breach of this Agreement by any such Affiliate as if effected by Licensee; and
(C) such Use shall not constitute an unauthorized exportation of any SAP Proprietary
Information under U.S. Government laws and regulations.
	 
	2.3	 	Authorization of Business Third Parties to Access the Software. Business Third
Parties may have access to the Software provided: (i) each Business Third Party shall execute
a confidentiality agreement pursuant to Section 6.2 herein; (ii) all Business Third Parties
accessing the Software shall be licensed as Users; (ii) Business Third Parties are expressly
limited to screen access to the Software; (iv) in no circumstances may Business Third Parties
have access to Software source code; (v) in no circumstances shall Business Third Parties Use
the Software to operate or manage the business of such Business Third Parties (vi) such Use
shall be subject to the following: (A) Licensee accepts responsibility for the acts or
omissions of such Business Third Parties as if they were Licensee’s acts or omissions; (B)
Licensee shall indemnify SAP against losses or damages suffered by SAP arising from breach of
this Agreement by any such Business Third Party as if effected by Licensee; and (C) such Use
shall not constitute an unauthorized exportation of any SAP Proprietary Information under U.S.
Government laws and regulations.
	 
	2.4	 	Audit Right. During Licensee’s normal business hours and at any time during which
the Software, Documentation, Third-Party Database, or other SAP Proprietary Information are
being utilized, SAP, or its authorized representative or licensors, shall have the right upon
at least 10 business days advance written notice to audit and inspect Licensee’s or any
Affiliate’s utilization of such items, in order to verify compliance with the terms of this
Agreement. If Proprietary Information is given to Business Third Parties pursuant to this
Agreement, Licensee shall secure the right for SAP to audit such Business Third Party as
specified in this Section.
	 
	2.5	 	Archival Copy; Restriction on Copies; Legends to be Reproduced.

(a) Licensee may make one copy of the Software for archival purposes and such number of
backup copies of the Software as are consistent with Licensee’s normal periodic backup
procedures. Licensee shall maintain a log of the number and location of all originals and
copies of the Software.

     SAP CONFIDENTIAL

3

 

(b) Licensee shall include, and shall under no circumstances remove, SAP’s and
its licensors’ copyright, trademark, service mark, and other proprietary notices on any
complete or partial copies of the Software, Documentation, Third-Party Database, or SAP
Proprietary Information in the same form and location as the notice appears on the original
work. The inclusion of a copyright notice on any portion of the Software, Documentation,
Third-Party Database, or SAP Proprietary Information shall not cause or be construed to
cause it to be a published work.

	2.6	 	License for Third-Party Database. The Software requires a third-party
database which may be licensed through SAP or directly from a third-party
database licensor approved by SAP. In the event Licensee obtains a license
directly from a third-party database licensor, any restrictions imposed on
Licensee directly by such third-party database licensor shall apply. SAP makes
no representations or warranties as to the Third-Party Database or its
operation.
	 
	3.	 	DELIVERY. The licensed Software in machine-readable format, and the
Documentation, shall be delivered as specified in Appendices hereto
(“Delivery”). Licensee shall be responsible for installation of the Software.
	 
	4.	 	PRICE AND PAYMENT.
	 
	4.1	 	License Fees. In consideration of the license granted hereunder,
Licensee shall pay to SAP license fees for the Software on such terms as set
forth in Appendices hereto (“License Fees.”) Fees for Maintenance
(“Maintenance Fees”) shall be paid as set forth in Appendices hereto. Any fees
Licensee does not pay when due shall accrue interest at the rate of 18% per
annum, but not to exceed the maximum amount as allowed by law. Licensee also
agrees to pay SAP all reasonable costs and expenses of collection, including
attorney’s fees.
	 
	4.2	 	Taxes. License and Maintenance Fees and other charges described in
this Agreement and its Appendices, or in SAP’s most recent List of Prices and
Conditions, do not include federal, state or local sales, use, property,
excise, service, or similar taxes (“Tax(es)”) now or hereafter levied, all of
which shall be for Licensee’s account. With respect to state/local sales tax,
Licensee shall provide prior to the execution of this Agreement (i) a valid
Direct Pay Permit to SAP; or (ii) a valid Tax-Exempt Certificate to SAP. If
Licensee does not comply with (i) or (ii), SAP will determine the appropriate
Taxes (excepting only taxes on net income) which are due, invoice Licensee for
such sales tax, and pay the Taxes it determined to be due to the appropriate
tax authorities. Licensee hereby agrees to indemnify SAP for and hold it
harmless from (1) any Taxes (excepting only taxes on net income) paid or
payable by SAP; (2) all costs incurred by SAP in determining and remitting the
Taxes due; and (3) interest and penalties, if any, imposed by reason of the
late payment or miscalculation of any Taxes.
	 
	5.	 	TERM AND TERMINATION.
	 
	5.1	 	Term. This Agreement and the license granted hereunder shall become
effective as of the date first set forth above and shall continue in effect
thereafter unless terminated under Section 5.2.
	 
	5.2	 	Termination. This Agreement and the license granted hereunder shall
terminate upon the earliest to occur of the following: (i) thirty days after
Licensee gives SAP written notice of Licensee’s desire to terminate this
Agreement, for any reason, but only after payment of all License and
Maintenance Fees then due and owing; (ii) forty-five days after SAP gives
Licensee written notice of Licensee’s material breach of any provision of the
Agreement), including more than forty-five days delinquency in Licensee’s
payment of any money due hereunder, unless Licensee has cured such breach
during such forty five day period; (iii) ten days after SAP gives notice of
Licensee’s material breach of Section 6, unless Licensee has cured such breach
during such ten day period (iv) Immediately if Licensee files for bankruptcy,
becomes insolvent, or makes an assignment for the benefit of creditors.
	 
	5.3	 	Effect of Termination. Upon any termination of this Agreement:
Sections 6, 7.4, 8, 9, 10, 12.5, and 12.7 shall survive such termination;
Licensee’s rights under Section 2 shall immediately cease; and SAP and Licensee
each shall promptly perform its obligations under Section 5.4. In the event of
any termination hereunder, except as otherwise may be provided for pursuant to
Section 8.3 or Section 9.1 (iii), Licensee shall not be entitled to any refund of any payments made by Licensee.

SAP CONFIDENTIAL

4

 

	5.4	 	Duties Upon Termination. Upon any termination hereunder, Licensee and its
authorized Affiliates shall immediately cease Use of all SAP Proprietary Information and
shall irretrievably delete and/or remove such items from all computer hardware and storage
media. Within forty-five days after any termination, Licensee shall deliver to SAP at
Licensee’s expense (adequately packaged and insured for safe delivery) or destroy all
copies of the SAP Proprietary Information in every form. Licensee agrees an officer of
Licensee’s organization shall certify in writing to SAP that it and each of its authorized
Affiliates has performed the foregoing. Within forty-five days after any termination, SAP
shall return the Licensee Proprietary Information to Licensee.
	 
	6.	 	PROPRIETARY RIGHTS
	 
	6.1	 	SAP Proprietary Information.

(a) Licensee acknowledges that ownership of and title in and to all intellectual property
rights, including patent, trademark, service mark, copyright, and trade secret rights, in
the SAP Proprietary Information are and shall remain in SAP and its licensors. Licensee
acquires only the right to Use the SAP Proprietary Information and does not acquire any
ownership rights or title in or to the SAP Proprietary Information and that of SAP’s
licensors.

(b) Licensee shall not copy, translate, disassemble, or decompile, nor create or attempt to
create, by reverse engineering or otherwise, the source code from the object code of the
Software. ln the event source code is provided to Licensee, SAP, in its sole discretion,
reserves the right to delete, or to require the deletion of, such source code and all
copies thereof in Licensee’s possession or control whenever a future Release, Version, or
Correction Level provides for like functionality in an object code format.

(c) Subject to Section 6.3(b), all Modifications and Extensions to the Software and
Documentation shall be considered part of the Software and Documentation for purposes of
this Section 6.

	6.2	 	Protection of Proprietary Information. In order to protect the rights of SAP and
its licensors and Licensee in their respective Proprietary Information, SAP and Licensee
agree to take all reasonable steps and the same protective precautions to protect the
Proprietary Information from disclosure to third parties as with its own proprietary and
confidential information. Neither party shall, without the other party’s prior written
consent, disclose, provide, or make available any of the Proprietary Information of the
other party in any form to any person, except to its bona fide employees, officers,
directors, or third parties whose access is necessary to enable such party to exercise its
rights hereunder. Each party agrees that prior to disclosing any Proprietary Information of
the other party to any third party, including identifiable Business Third Parties, it will
obtain from that third party a written acknowledgment that such third party will be bound by
the same terms as specified in this Section 6 with respect to the Proprietary Information
and naming SAP as a third party beneficiary.
	 
	6.3	 	Modifications and Extensions.

(a) Licensee may make Modifications and Extensions to the Software, other than third party
software, for Use on the Designated Unit(s) under the terms set forth in this Section.
Licensee shall register all Modifications to the Software with SAP prior to making such
Modifications. Licensee agrees to insert in all copies of the Software as modified all
copyright, trade secret, or other notices thereon or therein as SAP may from time to time
direct.

(b) In the event Licensee without SAP’s participation develops any Modification or
Extension (hereinafter referred to as “Licensee Extension” or “Licensee Modification”) to
the Software, Licensee shall have all rights, title, and interest in such Licensee
Modification or Licensee Extension subject to SAP’s rights in the Software. Licensee agrees
to offer SAP the first right to negotiate a license to or assignment of such Licensee
Modification or Licensee Extension and the parties agree to negotiate such rights in good
faith. Licensee agrees that prior to SAP’s exercise or waiver of its first right to
negotiate, such Licensee Modification or Licensee Extension will be used solely in
connection with Licensee and its Affiliates’ business operations, and that such Licensee
Modification or Licensee Extension will not be marketed, licensed or sublicensed, sold,
assigned, or otherwise transferred or made available to any third party or other entity.

(c) In the event SAP develops either independently, or jointly with Licensee, any
Modification or Extension to the licensed Software, such Modification or Extensions and all
rights associated therewith

SAP CONFIDENTIAL

5

 

will be the exclusive property of SAP and SAP AG, and Licensee will not
grant, either expressly or impliedly, any rights, title, interest, or
licenses to such Modifications or Extensions to any third party. Licensee
shall be entitled to Use such Modifications and Extensions developed for or
with Licensee on the Designated Unit(s) under the terms set forth in this
Agreement. Licensee agrees to assign all right, title and interest in and
to jointly developed Modifications and Extensions to SAP. Licensee agrees
to execute, acknowledge and deliver to SAP all documents and do all things
necessary, at SAP’s expense, to enable SAP to obtain and secure such
Modifications or Extensions throughout the world. Licensee agrees to secure
the necessary rights and obligations from relevant employees, or third
parties in order to satisfy the above obligations.

(d) The parties hereto agree that the granting of any rights, title, or
interest to Licensee in any Modification or Extension shall not be construed
by the parties hereto, any court of law or equity, or any arbitration panel
to mean that SAP has granted or given up any rights, title, or interest in or
to the SAP Proprietary Information.

(e) Licensee agrees not to take any action that would limit SAP’s independent
development, sale, assignment, licensing or use of its own Software or
Modifications or Extensions thereto.

	6.4	 	Escrow Of Source Code.

(a) SAP warrants that the source code for the Software, together with related
Documentation as it is or becomes available, has been deposited in an escrow
account maintained at Data Securities International Inc. Burlington, MA (the
“Escrow Agent”), pursuant to an agreement between the Escrow Agent and SAP,
(the “Escrow Agreement”).

(b) SAP will from time to time deposit into the escrow account copies of
source code for Releases and Versions of the Software and related
Documentation.

(c) SAP or SAP’s trustee in bankruptcy shall authorize the Escrow Agent to
make and release a copy of the applicable deposited materials to Licensee upon
the occurrence of any of the following events:

(i) The existence of any one or more of the following circumstances, uncorrected for
more than thirty (30) days: entry of an order for relief under Title 11 of the United
States Code; the making by SAP of a general assignment for the benefit of creditors;
the appointment of a general receiver or trustee in bankruptcy of SAP’s business or
property; or action by SAP under any state insolvency or similar law for the purpose
of its bankruptcy, reorganization, or liquidation; unless within the specified thirty
(30) day period, SAP (including its receiver or trustee in bankruptcy) provides to
Licensee adequate assurances, reasonably acceptable to Licensee, of its continuing
ability and willingness to fulfill its maintenance obligations under this Agreement;

(ii) SAP has ceased its on-going business operations or that portion of its business
operations
relating to the sale, licensing and maintenance of the Software; or

(iii) Failure of SAP to carry out the material maintenance obligations imposed on it
pursuant to
this Agreement after reasonable opportunity has been provided to SAP and SAP AG to
perform
such obligations.

(d) In no event shall Licensee have the right to access the applicable deposited materials
if SAP AG agrees to assume SAP’s maintenance obligations under this Agreement.

(e) In the event of release under this Agreement, Licensee agrees that it will treat and
preserve the deposited materials as a trade secret of SAP AG in accordance with the same precautions adopted by
Licensee to safeguard its own trade secrets against unauthorized use and disclosure and in all cases at least
with a reasonable degree of care. Release under this provision shall not extend Licensee any greater rights
or lesser obligations than are otherwise provided or imposed under this Agreement. This provision shall
survive any termination of this Agreement. SAP agrees not to change the Escrow Agent described herein
without prior written notice to Licensee.

SAP CONFIDENTIAL

6

 

	7.	 	PERFORMANCE WARRANTY.
	 
	7.1	 	Warranty Period; Warranty. SAP warrants that the Software will
substantially conform to the functional specifications contained in the
Documentation for nine months following Delivery (the “Warranty
Period”) when Used without material alteration on the Designated Unit(s).
SAP’s warranty is subject to Licensee providing SAP necessary access, including
remote access, to the Software. Licensee shall provide SAP with sufficient test
time and support on Licensee’s Designated Unit(s) to correct the defect.
	 
	7.2	 	Scope of Warranty.

(a) The warranty set forth in this Section 7 shall not apply: (i) if the
Software is not used in accordance with the Documentation; or (ii)unless
otherwise agreed upon in writing, to any Extensions or Modifications; or
(iii) if the defect is caused by: a Modification or Extension, Licensee, or a
third-party software malfunction.

(b) SAP does not warrant that the Software will operate uninterrupted or that
it will be free from minor defects or errors which do not materially affect
such performance or that the applications contained in the Software are
designed to meet all of Licensee’s or its authorized Affiliates’ business
requirements.

	7.3	 	Year 2000 Compliance. SAP represents and warrants that its R/3
Software is Year 2000 Compliant. Year 2000 Compliant means the ability of
R/3 to:

(a) consistently process R/3 date information before, during, and
after January 1, 2000 correctly, including accepting date input,
providing date output, and processing dates or portions of dates;

(b) function
before, during and after January 1, 2000, without the need for
program changes caused by the advent of the new century;

(c) respond to two-digit year-date input in a way that resolves the ambiguity
as to century in a disclosed and defined manner predetermined by the
end-user; and

(d) store and provide output of date information in ways that are unambiguous as to century.

	7.4	 	SAP has taken best efforts to test the Software licensed pursuant to the
Appendices for Disabling Code (as defined herein) and to the best of its
knowledge, the Software and all current and future Releases and Versions of the
Software delivered to Licensee shall be free of Disabling Code as of the date
of delivery by SAP. “Disabling Code” is defined as computer instructions that
alter, destroy or inhibit the licensed Software and/or Licensee’s processing
environment, including but not limited to other program’s data storage and
computer libraries, programs that self-replicate without manual intervention,
instructions programmed to activate at a predetermined time upon a specified
event, and/or programs purporting to do a meaningful function but designed for
a different function or any other computer virus. It is agreed this Section
does not include screen lock-out features for: (i) Users in excess of the
number of Users authorized under this Agreement; (ii) Use of an unauthorized
copy of the Software; or (iii) unauthorized Modifications pursuant to Section
6.3(a) of the Agreement. In the event SAP intends to use Disabling Code in
the future, SAP will notify Licensee in writing.
	 
	7.5	 	Express Disclaimer. SAP AND ITS LICENSORS DISCLAIM ALL OTHER
WARRANTIES EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE
EXCEPT TO THE EXTENT THAT ANY WARRANTIES IMPLIED BY LAW CANNOT BE VALIDLY
WAIVED.
	 
	8.	 	INDEMNIFICATION.
	 
	8.1	 	SAP Representation. SAP represents that its licensors own the Proprietary Information licensed by SAP hereunder, including all intellectual property rights therein, and that SAP has all rights from its licensors
necessary to license, in accordance with the terms of this Agreement, such Proprietary Information to
Licensee.
	 
	8.2	 	No Representation Regarding Combination Use. SAP and its licensors
make no representation with respect to the possibility of infringement by
Combination Use of the Software. The parties agree that SAP has no duty to
investigate nor to warn Licensee of any such possibility. “Combination
Use” means Use of

SAP CONFIDENTIAL

7

 

the Software in conjunction with any of the following, unless such Use is prescribed
in the Documentation: (i) any software other than the Software; (ii) any apparatus other
than a Designated Unit; and/or (iii) any activities of Licensee or its authorized
Affiliates not licensed under this Agreement.

	8.3	 	Indemnification of Licensee.

(a) SAP shall indemnify, defend and hold Licensee and its Affiliates, and the respective
officers, directors, employees of each, harmless from and against all claims, liabilities,
and costs, including reasonable legal fees, reasonably incurred in the defense of any claim
brought against Licensee in the Territory by third parties alleging that Licensee’s Use of
the Software and Documentation infringes or misappropriates: (i) any United States patent;
or (ii) a copyright; or (iii) trade secret rights, provided that, Licensee promptly
notifies SAP in writing of any such claim and SAP is permitted to control fully the defense
and any settlement of such claim as long as such settlement shall not include a financial
obligation on Licensee. Licensee shall cooperate fully in the defense of such claim and
may appear, at its own expense, through counsel reasonably acceptable to SAP. SAP may, in
its sole discretion, settle any such claim on a basis requiring SAP to substitute for the
Software and Documentation alternative substantially equivalent non-infringing programs and
supporting documentation. In the event that any preliminary injunction, temporary
restraining order or final injunction shall be obtained in the Territory, SAP shall use
best efforts to either: (i) obtain the right for continued use of the infringing Software
and Documentation; or (ii) modify the infringing Software and Documentation to avoid such
infringement while obtaining at least equivalent functionality; or (iii) substitute for the
Software and Documentation alternative equivalent software and supporting documentation
while obtaining at least equivalent functionality; or (iv) after using best efforts which
shall not exceed fifteen (15) days to provide (i), (ii) or (iii) above, provide a refund to
Licensee of paid license fees for that part of the Software under claim of infringement,
(unless such part is a major integral function of the Software, in which case a full refund
of paid license fees would be reimbursable).

(b) Notwithstanding item 9.3, the maximum aggregate liability of SAP under the indemnity
provided in Section 8.3 (a) above shall be a sum equal to two times the paid License Fees
under this Agreement at the time the claim of infringement arises.

	8.4	 	Indemnification of SAP. Licensee shall indemnify SAP, and its licensors, against all
third party claims, liabilities, and costs, including reasonable legal fees, reasonably
incurred in the defense of any claim (other than for the infringement of intellectual property
rights specified in Section 8.3 above), arising out of Licensee’s unauthorized Use of the
Software, Documentation, Third-Party Database, and other SAP Proprietary Information, licensed
under this Agreement, provided that, SAP promptly notifies Licensee in writing of such
claim and that Licensee is permitted to control fully the defense and any settlement of the
claim.
	 
	8.5	 	SAP’s Right to Commence Infringement Actions. SAP alone shall be responsible for
taking such actions which it determines are reasonably necessary or desirable in its sole
discretion in connection with any infringement or alleged infringement by a third party of any
portion of the Software and Documentation. Licensee shall not undertake any action in response
to any infringement or alleged infringement of the Software and Documentation without the
prior written consent of SAP, which consent shall not be unreasonably withheld. Licensee
agrees to cooperate with and assist SAP by taking whatever action which SAP determines to be
reasonably necessary or desirable. SAP agrees to reimburse, within a commercially reasonable
period of time. Licensee for reasonable legal fees and other expenses incurred in connection
with any such claim, suit, damage, or loss.
	 
	8.6	 	SAP’s Duty to Indemnify Licensee. THE PROVISIONS OF THIS SECTION 8 STATE THE SOLE,
EXCLUSIVE, AND ENTIRE LIABILITY OF SAP AND ITS LICENSORS TO LICENSEE, AND IS LICENSEE’S SOLE
REMEDY WITH RESPECT TO THE INFRINGEMENT OF THIRD-PARTY INTELLECTUAL PROPERTY RIGHTS.
	 
	9.	 	LIMITATIONS OF LIABILITY.
	 
	9.1	 	Licensee’s Remedies. Licensee’s sole and exclusive remedies for any damages or
loss in any way connected with the Software or services furnished by SAP and its licensors,
whether due to SAP’s negligence or breach of any other duty, shall be, at SAP’s option: (i)
to bring the performance of the Software into substantial compliance with the functional
specifications; (ii) re-performance of services; or

SAP CONFIDENTIAL

8

 

(iii) return of an appropriate portion of any payment made by Licensee with respect to
the applicable portion of the Software or services. ln the event any dispute arises as to
what constitutes such an appropriate portion of any payment, the parties agree such matter
shall be the subject of arbitration. The foregoing limitation of liability does not apply to
personal injury or death caused by the gross negligence or willful misconduct of SAP; or
tangible property damage up to the amount by which such damage is paid by SAP’s liability
insurance which is not less than $1,000,000 per occurrence, with $20,000,000 umbrella
coverage, or liability arising under Section 8.3 or Section 8.4 of the Agreement. Upon
request, SAP shall provide Licensee with a properly executed Certificate of Insurance. Such
insurance policy is currently issued by an insurance company with a Best rating of A or
better and a financial rating of Class VIII or better. Licensee and Affiliates (mutually
agreed upon in writing between SAP and Licensee) shall be named as an additional named
insured in all such policy of insurance. Such policy shall be endorsed to provide that such
insurance is not subject to change or cancellation until 30 days prior written notice has
been given to Licensee.

	9.2	 	SAP Not Responsible. SAP will not be responsible under this Agreement for: (i) any
alteration of the Software to fit the particular requirements of Licensee; or (ii) the
correction of any defects resulting from Modifications or Extensions or as a result of misuse
of the Software by Licensee; or (iii) preparation or conversion of data into the form required
for use with the Software or (iv) ensuring the security of Licensee’s networked installation
of the Software. THE SOFTWARE IS NOT SPECIFICALLY DEVELOPED OR LICENSED HEREUNDER FOR USE
IN ANY DIRECT AND ACTIVE OPERATIONS OF ANY EQUIPMENT IN ANY NUCLEAR, AVIATION, MASS
TRANSIT, OR MEDICAL APPLICATIONS, OR IN ANY OTHER INHERENTLY DANGEROUS APPLICATIONS. THE
PARTIES HERETO AGREE THAT USE OF THE SOFTWARE AND THIRD-PARTY SOFTWARE FOR FINANCIAL
APPLICATION PURPOSES OR SUCH OTHER ADMINISTRATIVE PURPOSES SHALL NOT BE DEEMED INHERENTLY
DANGEROUS APPLICATIONS IF SUCH USE DOES NOT AFFECT THE OPERATIONS OR MAINTENANCE OF SUCH
EQUIPMENT. SAP AND ITS LICENSORS SHALL NOT BE LIABLE FOR ANY CLAIMS OR DAMAGES ARISING
FROM SUCH INHERENTLY DANGEROUS USE OF THE SOFTWARE AND/OR THIRD-PARTY SOFTWARE
LICENSED HEREUNDER.
	 
	9.3	 	Exclusion of Damages. ANYTHING TO THE CONTRARY HEREIN NOTWITHSTANDING, EXCEPT FOR
DAMAGES RESULTING FROM UNAUTHORIZED USE AND/OR DISCLOSURE OF THE PROPRIETARY INFORMATION OR AS
PROVIDED PURSUANT TO SECTION 8.3(b), UNDER NO CIRCUMSTANCES SHALL SAP AND ITS LICENSORS OR
LICENSEE BE LIABLE TO EACH OTHER OR ANY OTHER PERSON OR ENTITY FOR AN AMOUNT OF DAMAGES IN
EXCESS OF THE PAID LICENSE FEES OR BE LIABLE FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR
INDIRECT DAMAGES, LOSS OF GOOD WILL OR BUSINESS PROFITS, WORK STOPPAGE, DATA LOSS, COMPUTER
FAILURE OR MALFUNCTION, OR EXEMPLARY OR PUNITIVE DAMAGES. The provisions of the Agreement
allocate the risks between SAP and Licensee, The License Fees reflect this allocation of risk
and the limitations of liability herein.
	 
	9.4	 	Severability of Actions. IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT EACH AND
EVERY PROVISION OF THIS AGREEMENT WHICH PROVIDES FOR A LIMITATION OF LIABILITY, DISCLAIMER OF
WARRANTIES, OR EXCLUSION OF DAMAGES IS INTENDED BY THE PARTIES TO BE SEVERABLE AND INDEPENDENT
OF ANY OTHER PROVISION AND TO BE ENFORCED AS SUCH.

     SAP CONFIDENTIAL

9

 

	10	 	ARBITRATION. Except for the right of either party to apply to a court of
competent jurisdiction for injunctive relief, any controversy or claim arising out of or
relating to this Agreement, other than as to ownership or title to intellectual property
rights in the Proprietary Information or the right of SAP to bring suit for any payments
due hereunder, shall be settled by arbitration in Dallas, Texas in accordance with the
Commercial Arbitration Rules of the American Arbitration Association, and judgment upon the
award rendered by the arbitrators may be entered in any court having jurisdiction thereof.
Arbitration shall be conducted by a panel of three members, SAP and Licensee each selecting
one member and the third member, who shall be chairman, selected by agreement between the
other two members. The chairman shall be an attorney-at-law, and the other members shall
have a background or training in computer law, computer science, or marketing of computer
products. The arbitrators shall have the authority to grant injunctive relief in a form
substantially similar to that which would otherwise be granted by a court of law.
	 
	11	 	ASSIGNMENT. Neither party may, without the other’s prior written consent which
consent shall not be unreasonably withheld, assign, delegate, sublicense, pledge, or otherwise
transfer this Agreement, or any of its rights or obligations under this Agreement, or the SAP
Proprietary Information , to any party, including any Affiliate. Any permitted assignment of
this Agreement shall provide that the provisions of this Agreement shall continue in full
force and effect and the assigning party shall guaranty the performance of its assignee and
shall remain liable for all obligations hereunder. Notwithstanding the foregoing,SAP may
assign this Agreement to SAP AG. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted assigns.
	 
	 	 	Notwithstanding the foregoing, Licensee shall have the right to assign or transfer this
Agreement or any interest herein (excluding any third party products) to any entity which
acquires all or substantially all of Licensee’s operating assets, or in the event Licensee
is merged or reorganized pursuant to any plan of merger or reorganization, subject to the
condition that Licensee provides SAP with: (a) a statement, signed on behalf of the
Assignee, that such Assignee agrees to abide by the terms of this Agreement; (b) evidence,
reasonably satisfactory to SAP, of such Assignee’s corporate authority to enter into this
Agreement; and (c) sufficient evidence that such Assignee has a minimum net worth
sufficient in SAP’s reasonable judgment, to allow Assignee to perform its obligations
under this Agreement.
	 
	12	 	GENERAL PROVISIONS.
	 
	12.1	 	Rights to Injunctive Relief. Both parties acknowledge that remedies at law may be
inadequate to provide SAP or Licensee with full compensation in the event of Licensee’s
material breach of Sections 2, 6, 11 or 12.5, or SAP’s material breach of Section 6 with
respect to Licensee Proprietary Information, and that the non-breaching party shall therefore
be entitled to seek injunctive relief in the event of any such material breach.
	 
	12.2	 	Severability. It is the intent of the parties that in case any one or more of the
provisions contained to this Agreement shall be held to be invalid or unenforceable in any
respect, such invalidity or unenforceability shall not affect the other provisions of this
Agreement, and this Agreement shall be construed as if such invalid or unenforceable provision
had never been contained herein.
	 
	12.3	 	No Waiver. If either party should waive any breach of any provision of this
Agreement, it shall not thereby be deemed to have waived any preceding or succeeding breach of
the same or any other provision hereof.
	 
	12.4	 	Counterparts. This Agreement may be signed in two counterparts, each of which shall
be deemed an original and which shall together constitute one Agreement.
	 
	12.5	 	Export Control Notice. Regardless of any disclosure made by Licensee to SAP of an
ultimate destination of the Software, Documentation, Third-Party Database, and other
provided SAP Proprietary Information Licensee acknowledges that the Software, Documentation,
Proprietary Information, and the Third-Party Database are being released or transferred to
Licensee in the United States and are therefore subject to the U.S. export control laws.
Licensee acknowledges its exclusive obligation to ensure that its exports from the United
States are in compliance with the U.S. export control laws. Licensee shall also be
responsible for complying with all applicable governmental regulations of any foreign
countries with respect to the use of the Proprietary Information by its Affiliates outside
of the United States. Licensee agrees that it will not submit the Software to any government
agency for licensing consideration or other regulatory approval

SAP CONFIDENTIAL

10

 

without the prior written consent of SAP. Licensee shall defend, indemnify, and
hold SAP and its licensors harmless from and against any and all claims, judgments,
awards, and costs (including reasonable legal fees) arising out of Licensee’s
noncompliance with applicable U.S. or foreign law with respect to the use or transfer of
the SAP Proprietary Information outside the United States by Licensee and its Affiliates.

	12.6	 	Confidential Terms and Conditions. Licensee shall not disclose the terms and
conditions of this Agreement and the pricing contained therein to any third-party, except
as required to be disclosed pursuant to the requirements of a government agency or by
operation of law, rule or regulation, provided that SAP is consulted prior to such
disclosure. Neither party shall use the name of the other party in publicity, advertising,
or similar activity, without the prior written consent of the other, except that Licensee
hereby consents to SAP’s inclusion of Licensee’s name in customer listings which may be
published as part of SAP’s marketing efforts.
	 
	12.7	 	Governing Law. This Agreement shall be governed by and construed under Delaware
law without reference to its conflicts of law principles. In the event of any conflicts
between foreign law, rules, and regulations, and United States of America law, rules, and
regulations, United States of America law, rules, and regulations shall prevail and govern.
The United Nations Convention on Contracts for the International Sale of Goods shall not
apply to this agreement.
	 
	12.8	 	Notices. All notices or reports which are required or may be given pursuant to this
Agreement shall be in writing and shall be deemed duly given when delivered to the respective
executive offices of SAP and Licensee at the addresses first set forth above.
	 
	12.9	 	Force Majeure. Any delay or nonperformance of any provision of this Agreement
(other than for the payment of amounts due hereunder) caused by conditions, including an act
of God, war, civil commotion, fire, explosion or other similar event beyond the reasonable
control, and without the fault or negligence of the nonperforming party, shall not constitute
a breach of this Agreement, and the time for performance of such provision, if any, shall be
deemed to be extended for a period equal to the duration of the conditions preventing
performance.
	 
	12.10	 	Entire Agreement. This Agreement and each Appendix hereto constitute the
complete and exclusive statement of the agreement between SAP and Licensee, and all previous
representations, discussions, and writings are merged in, and superseded by, this Agreement.
This Agreement may be modified only by a writing signed by both parties. This Agreement and
each Appendix hereto shall prevail over any additional, conflicting, or inconsistent terms
and conditions which may appear on any purchase order or other document furnished by Licensee
to SAP.

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have duly executed this
Agreement to become effective as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Approved:	 	 	 	Approved:	 	 
	 
	SAP AMERICA, INC.	 	 	 	Sport Supply Group, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ BRAD C. BRUBAKER
	 	 	 	By:
	 	/s/ JOHN WALKER	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	BRAD C. BRUBAKER
	 	 	 	Name :
	 	JOHN WALKER	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	 VICE PRESIDENT
	 	 	 	Title :
	 	EVP- CEO	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Date:

	 	6/28/98
	 	 	 	Date:
	 	6/11/98	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

SAP CONFIDENTIAL

11

 

EXHIBIT A

to

SAP AMERICA, INC. — SPORT SUPPLY GROUP
 R/3 SOFTWARE END-USER LICENSE AGREEMENT
(“Agreement”) effective June 11, 1998

AUTHORIZED AFFILIATE AGREEMENT

This Authorized Affiliate Agreement is made effective as of the                      day of                                   
      , 199___
between SAP America, Inc., a Delaware Corporation, with offices at 701 Lee Road, Pennsylvania
19087 (“SAP”) and Athletic Training Equipment Company, Inc., a Delaware corporation, with offices at 
                                                       (“Affiliate”).

1.       Affiliate is entitled to have Users access the Software on the Designated Unit(s)
identified in the Agreement, subject to the restrictions on the aggregate number of Users
specified therein.

2.       Affiliate agrees to be bound by all of the terms and conditions of the Agreement and agrees
that SAP may directly enforce all such terms and conditions against Affiliate as if Affiliate had executed such
Agreement with SAP. In the event that the Agreement is terminated for any reason, or if Affiliate ceases to meet
the definition of “Affiliate” therein, Affiliate agrees that all of its rights to access the Software will cease
effective as of the termination date unless such Affiliate executes a standard SAP End-User Software License for the
SAP licensed Software at SAP’s then current license fees.

	3.	 	The number of Users licensed under the Agreement by Licensee and allocated to Affiliate hereunder is as follows:

	 	 	 	 	 	 	 
	 

	 	Named Users
	 	____________	 	 
	 
	 

	 	Information Users
	 	____________
	 	 
	 
	 

	 	Requisition and confirmation Users
	 	____________	 	 
	 
	 

	 	Development Workbench Users
	 	____________	 	 
	 
	 

	 	Basis/Workflow Users
	 	____________	 	 
	 
	 

	 	Enterprise Office/HR Users
	 	____________	 	 

4.      Affiliate represents and warrants that it has the legal capacity to execute this Authorized
Affiliate Appendix.

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have dully executed this
Authorized Affiliate Agreement.

	 	 	 	 	 	 	 	 	 
	SAP AMERICA, INC.	 	 	 	ATHLETIC TRAINING EQUIPMENT COMPANY, INC.
	SAP

	 	 	 	 	 	Affiliate	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

SAP
CONFIDENTIAL

 

 

Appendix 1

effective June 11, 1998 (“Appendix”)

to

SAP AMERICA, INC. (“SAP”) — SPORT SUPPLY GROUP, INC.
(“Licensee”)
 R/3 SOFTWARE
END-USER LICENSE AGREEMENT effective June 11, 1998 (“Agreement”)

This Appendix is hereby annexed to and made a part of the Agreement specified above. In each
instance in which provisions of this Appendix contradict or are inconsistent with the provisions of
the Agreement, the provisions of this Appendix shall prevail and govern, and the contradicted or
inconsistent provisions of the Agreement shall be deemed amended accordingly.

	1.	 	SOFTWARE/USERS LICENSED:

	 	1.1	 	GENERAL FUNCTION BLOCKS LICENSED:

	 	 	 
	FI

	 	Financial Accounting/Asset Accounting
	TR-CM, FM

	 	Cash and Funds Management
	IM

	 	Investment Management
	CO

	 	Controlling
	EC

	 	Enterprise Controlling
	PS

	 	Project System
	MM

	 	Material Management
	PM

	 	Plant Maintenance
	SD

	 	Sales and Distribution
	PP

	 	Production Planning
	DW

	 	ABAP/4 Development Workbench
	BC

	 	Basis

	 	1.2	 	USERS:

	 	 	 	 	 	 	 
	 	 	Number of Users Licensed:
	Named/Operational Users

	 	 	160	 	 	Users*
	Info Users

	 	 	40	 	 	Users*
	D/W Users

	 	 	3	 	 	Users*

 

			
	 	 	*The above Users are also licensed as Basis/Workflow Users

	1.3	 	DATABASE:

	 	 	 	 	 	 	 
	Database Interface

	 	 	203	 	 	Users   

1.6 OTHER SOFTWARE LICENSED: Third-party software, applicable country/language
specific versions, Industry Solutions Software, and any other provided software licensed
by Licensee from SAP hereunder, which is not specified above, or surcharges for specific
installation locations, are as follows:

“None”

SAP licenses the Software for Use in countries for which there is currently no
language or country specific functionality. Certain country/language specific functionality
must be licensed directly from an SAP distributor located in that country as identified in
SAP’s current List of

SAP
CONFIDENTIAL

Page 1

 

	 	 	Prices and Conditions. Double byte functionality and European country/language
functionality cannot be installed on the same Designated Unit.
	 
	2.	 	LICENSE FEE AND PAYMENT: The total List Price License Fee to Licensee for the
Software specified above for the total number of Users is USD 785,990. Such List Price
License Fee shall be discounted by USD 117,899 for a total Net License Fee to Licensee of USD
668,092 which shall be invoiced on June 30, 1998 and is payable net thirty (30) days thereafter.
	 
	 	 	In the event the quantity of Users and/or Software licensed above are not adhered to by
Licensee or its Affiliates, Licensee agrees, within a reasonable period of time, to
provide written notice to SAP, and SAP reserves the right to modify the Agreement to
reflect such additional Software and/or Users, invoice Licensee for such additional
Software and/or Users at SAP’s then current pricing in effect and increase Maintenance
Fees accordingly.
	 
	3.	 	INSTALLATION: For Software to be installed on a specific Licensee or Affiliate
Designated Unit within the Territory, Licensee shall provide SAP with written notice of the
type/model and serial number and location of each Designated Unit and the number of Users allocated to
each such Designated Unit prior to such installation. Such notice shall be sent to Attention:
SAP Contract Department, Attention Contract Manager, Six Concourse Parkway, Suite 1200,
Atlanta, Georgia 30328-5351.
	 
	4.	 	DELIVERY: Initial delivery by SAP of the above-specified Software and
Documentation is estimated to take place in June, 1998.
	 
	5.	 	MAINTENANCE:

5.1
     Licensee may request and SAP shall
provide, to such degree as SAP makes such services generally
available in the Territory, maintenance service
(“Maintenance ”) from
SAP with respect to the Software. Maintenance by SAP is limited to the site(s) specified
herein. Maintenance currently includes the delivery of Releases, Versions, Correction Levels and
Software correction packages, support via telephone, remote support/update, and SAP’s
On-line Software Services. Maintenance does not include the adaptation of any Modifications or
Extensions developed by or for Licensee to new Releases or Versions. In order to receive
Maintenance hereunder, Licensee must make all required remote support and update connections to each
Designated Unit, at its expense, as requested by SAP. Maintenance will only be offered for
the most recent Release and the Release immediately prior thereto.

5.2      In order to receive Maintenance, Licensee agrees to promptly disclose to SAP and
provide copies to SAP of any Modifications and to keep and maintain adequate and current records
of all Modifications (which records shall be made reasonably available to SAP).

5.3      Maintenance may be terminated by either party in writing at any time upon three
months prior written notice. In the event of termination of Maintenance by SAP under
this Section, Licensee shall be entitled to a pro-rata refund of prepaid Maintenance fees.

5.4      Maintenance, from SAP, for the Software licensed hereunder is limited to the following
site(s) :

1901
Diplomat Drive Farmers Branch TX 75234

5.5      In order to receive Maintenance, Licensee agrees to establish and maintain
Customer Competency Center(s) at the site(s) specified above within twelve (12) months of the
Effective Date of this Appendix in accordance with the following. Each CCC must maintain an internal
Help Desk to provide first level support to Licensee’s Users relating to basis and
application questions or problems. Such internal Help Desk(s) must be staffed during Licensee’s
normal

SAP CONFIDENTIAL

Page 2

 

working hours (from 8 A.M. to 6 P.M central standard time), but no less than (8) eight hours a day,
(5) five days a week. Only Licensee CCC employees subject to Section 6 of the Agreement, are
authorized to contact SAP after attempting to resolve the matter via Licensee’s internal Help Desk.
Each CCC shall coordinate Licensee’s Modification and Extension notification and disclosure
requirements and shall coordinate Licensee’s development requests. Licensee’s CCC is responsible
for the administration and management of the Agreement including, but not limited to, performing
periodic self audits to ensure Licensee’s compliance with the license grant, maintaining master and
installation data and managing the receipt of new Releases, Version, and Correction Levels of the
Software. In the event Licensee does not establish and maintain CCC(s) in accordance with the
above, SAP reserves the right to increase Licensee’s then current maintenance percentage factor
then in effect.

5.6      Maintenance at such site(s) shall commence July 1, 1998.

In the event Maintenance does not commence upon execution of this Appendix, or is otherwise
declined for some period of time, and is subsequently requested or reinstated, SAP will invoice
the customer the accrued maintenance service fees associated with such time period plus a
reinstatement fee.

5.7      The Maintenance Fee for the Software licensed under this Appendix, for the total
number of Users specified above is currently priced at the then current factor in effect multiplied
by the then current Net License Fee for licensed Software. The current Maintenance Fee for the
Software licensed under this Appendix is USD 100,214. Other than as provided for above,
Maintenance Fees are subject to change once during a calendar year upon ninety (90) days
written notice to Licensee; provided however maintenance fees will not be increased prior to
January 1, 2000. SAP agrees however, that increases in Maintenance Fees per calendar year (if
any) for the Software licensed in Item 1 of this Appendix, shall not be greater than the increase
in the Consumer Price Index plus five percent (5%) per year. Maintenance Fees are invoiced on
an annual basis effective January 1 of a calendar year. EXAMPLE: Prior year Maintenance
Fees x (percentage increase in CPI plus .05) = maximum increase in increased Maintenance Fees
which may be added to prior year Maintenance Service Fees, the sum of which represents the
new annual Maintenance Fees due for the then-current maintenance year to which the increase is
applied. Thus, if the prior year Maintenance Fees were USD 1,000,000 and the percentage
increase in the CPI for the twelve month period prior to such increase was .03, the maximum
increase in the annual Maintenance Fees for that year would be USD 1,000,000 x .08 = USD
80,000. Any Maintenance Fees incurred prior to January 1 are invoiced on a pro-rata basis for the
remainder of the given calendar year in effect.

	6.	 	THIRD-PARTY DATABASE:
	 
	 	 	Software licensed hereunder currently requires a Third-Party Database, which Licensee
is licensing directly from a third party. SAP makes no representations or warranties as to the
terms of any license or the operation of any Third-Party Database obtained directly from a third
party supplier by Licensee. Licensee is responsible for support and maintenance of the Third-Party
Database licensed from a third party supplier, and SAP has no responsibility in this regard.
	 
	7.	 	LICENSE KEY: Each Productive Use copy and Non-Productive Use copy of the Software
licensed hereunder requires a license keycode. For each installation of the Software, five (5)
keycodes shall be provided; quantity one (1) for Productive Use of the Software; and quantity four
(4) for Non-Productive Use of the Software. The license keycodes will be issued by SAP

SAP CONFIDENTIAL

Page 3

 

	 	 	AG within four (4) weeks from the date of installation of the Software on each
Designated Unit. The required form to receive the license keycodes from SAP AG must be
executed by Licensee and faxed to SAP AG within the four (4) week period following
installation of the Software. The applicable form and fax number will
be included in each
installation kit provided to Licensee upon delivery of the Software. Licensees that
subsequently change Designated Units for Use of the licensed Software must be re-issued
license keycodes for each respective copy of the licensed Software. Failure of Licensee to
obtain necessary license keycodes for the licensed Software within four (4) weeks of
installation of such Software, will cause the Software to have limited User access until
such time as the license keycodes are issued.
	 
	8.	 	Until November 1, 2001, Licensee have the right to license additional Users or SAP R/3
software (excluding third party software, optional packages, industry specific software or
other SAP software published as non-discountable) at a discount of fifteen percent (15%) from
SAP’s then current list price. Additional Users shall be licensed in minimum blocks of ten (10)
Users (any combination of Named, Info, R/C, D/W or Basis/Workflow). Such License Fee shall
include all General Function Blocks set forth in item 1. above. Licensee shall be
responsible for Third-Party Database license fees in connection with licensing such additional Users or
software. Payment for such additional license fees due SAP shall be net 30 days from the date of SAP
invoice. After November 1, 2001, all such pricing shall be at SAP’s then-current prices
in effect.
	 
	9.	 	VALIDITY OF OFFER: The validity of this Appendix will expire June 30, 1998, unless
sooner executed by the Licensee hereto, or extended in writing by SAP.

	 	 	 	 	 	 	 	 	 
	Approved:	 	 	 	Approved:
	 
	 	 	 	 	 	 	 	 
	SAP AMERICA, INC.	 	 	 	Sport Supply Group, Inc.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Brad C. Brubaker
	 	 	 	By:
	 	/s/ John Walker
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	Brad C. Brubaker
	 	 	 	Name:
	 	John Walker
	Title:

	 	Vice President
	 	 	 	Title:
	 	EVP & CFO
	Date:

	 	6/28/98
	 	 	 	Date:
	 	6/11/98

SAP CONFIDENTIAL

Page 4

 

SAP DEDUCTIONS MANAGEMENT

APPENDIX 2

effective October 15, 1998 (“Appendix”)

to

SAP AMERICA, INC. SOFTWARE END-USER LICENSE AGREEMENT (“Agreement”)

with

SPORT SUPPLY GROUP, INC.

effective June 11, 1998

	 	 	This Appendix is hereby annexed to and made a part of the Agreement specified above. In
each instance in which provisions of this Appendix contradict or are inconsistent with the
provisions of the Agreement, the provisions of this Appendix shall prevail and govern, and
the contradicted or inconsistent provisions of the Agreement shall be deemed amended
accordingly; otherwise, all provisions of the Agreement remain in effect.
	 
	1.	 	LICENSE GRANT:
	 
	1.1	 	SAP Deductions Management Component
(“Software”)

Provided Licensee does not exceed the annual revenue level specified below “Level”,
Users licensed in Appendices to the Agreement are permitted to Use the Software in accordance
with their respective User type.
	 
	 	 	LICENSEE’S ANNUAL REVENUE:

	 	 	 
	Check Applicable Level:
	 
	 	 
	X

	 	Up to USD 200,000,000
	 

	 	 Up
to 1.0 billion
	 

	 	 Up
to 2.5 billion
	 

	 	 Up
to 5.0 billion
	 

	 	 Greater
than 5.0 billion
	 

	 	 

	2.	 	The Net License Fee to Licensee for the Component specified above is USD 15,000. Such
Net License Fee shall be discounted by USD 2,250 for a total Invoice
Amount to Licensee of
USD 12,750 which shall be invoiced on October 30, 1998 and is payable net thirty (30) days thereafter.
	 
	 	 	In the event the quantity of Users and/or Software licensed above are not adhered to
by Licensee or its Affiliates, Licensee agrees, within a reasonable period of time, to
provide written notice to SAP, and SAP reserves the right to modify the Agreement to reflect
such additional Software and/or Users, invoice Licensee for such additional Software and/or
Users at SAP’s then current pricing in effect and increase Maintenance Fees accordingly.
	 
	3.	 	For Software to be installed on a specific Licensee or Affiliate Designated Unit within the
Territory, Licensee shall provide SAP with written notice of the type/model and serial number and location of each Designated
Unit and the number of Users allocated to each such Designated Unit prior to such installation. Such notice shall be in a
form materially similar to Schedule I attached hereto and is to
be sent to: SAP America, Inc., Attention: Contract
Manager, 5555 Glenridge Connector, Atlanta, Georgia 30342.
	 
	4.	 	Initial delivery by SAP of the above-specified Component is estimated to take place in October
1998.
	 
	5.	 	Licensee acknowledges that the Component is designed for use with Release 3.0F and up. The
Component is not downwardly compatible with previous Releases, Versions or Levels.
	 
	6.	 	Licensee acknowledges that the Component is available in English language only.
	 
	7.	 	(a)      Maintenance of the Software shall be provided in accordance with Appendix 1
effective June 11, 1998.
	 
	 	 	(b)      Maintenance at such site(s) shall commence November 1, 1998.
	 
	 	 	In the event Maintenance does not commence upon execution of this Appendix, or is otherwise
declined for some period of time, and is subsequently requested or reinstated, SAP will invoice the customer the accrued
maintenance service fees associated with such time period plus a
reinstatement fee.

SAP CONFIDENTIAL

1

 

	 	 	(c) The Maintenance Fee for the Software licensed under this Appendix, for the total
number of Users specified above is currently priced at fifteen percent (15%) of the Net
License Fee. The current Maintenance Fee for the Software licensed under this Appendix is USD
2,250. Other than as provided for above, Maintenance Fees are subject to change once during a
calendar year upon ninety (90) days notice to Licensee.
	 
	8.	 	The validity of this Appendix will expire October 30, 1998, unless sooner executed by
the parties hereto, or extended in writing by SAP.

	 	 	 	 	 	 	 	 	 
	Approved:	 	 	 	Approved:
	 
	 	 	 	 	 	 	 	 
	SAP AMERICA, INC.	 	 	 	SPORT SUPPLY GROUP, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Brad C. Brubaker
	 	 	 	By:
	 	/s/ Jennifer E. Thomas
	 

	 	 
	 	 	 	 	 	 
	Name :

	 	Brad C. Brubaker
	 	 	 	Name:
	 	Jennifer E. Thomas
	Title:

	 	Vice President
	 	 	 	Title:
	 	VP-Finance
	Date :

	 	12/26/98
	 	 	 	Date:
	 	12/26/98

SAP CONFIDENTIAL

2

 

Schedule 1

to Appendix 2 effective October 15, 1998

Software and User Allocation

1. Name of Licensee or Affiliate where Designated Unit is located: Sport Supply Group

2. Designated Unit(s) to be identified by Licensee 10 SAP in writing.

	 	 	 	 	 
	 
	 	Location of Designated Unit:	1901 Diplomat
	 
	 	 	 	 
	 
	 	 	Farmers Branch, TX   75234
	 
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	Telephone Number:	972-406-3407
	 
	 	 	 	 
	 	 	Software Delivery Contact Person: John Maguire

	 	 	 	 	 	 	 	 	 	 	 
	Hardware Information	 	Operating System	 	Database
	Manufacturer	 	Model	 	Manufacturer	 	Release	 	Manufacturer	 	Release
	IBM

	 	AS400
	 	IBM
	 	OS400
	 	IBM
	 	DB2400
	 

	 	 	 	Tape Formal
	 	o 4MM	 	 	 	 
	 

	 	 	 	(only for OS/390)
	 	o 3480	 	 	 	 
	 

	 	 	 	 	 	o 6250	 	 	 	 

3. The total number of Users allocated to Use the Software, as per their respective rights
set forth in the Agreement, at the above-specified location for the above-specified Designated Unit(s) are as follows:

	 	 	 	 	 	 	 	 	 
	 
	 	160	 	Named/Operational Users	 	 	 	Enterprise Office/HR Users
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	40	 	Information Users	 	 	 	Session Users
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	R/C Users	 	 	 	PA Master Record
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	Development Workbench Users	 	 	 	PD Master Record
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	Basis/Workflow Users	 	 	 	 
	 
	 	 	 	 	 	 	 

4. Optional software, Third-party software, applicable country versions, industry
solution and/or business component
Software, and any other software licensed from SAP, to be installed at the above
location are as follows:

	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 

	 	 	 	 	 	 	 	 	 
	Jennifer E. Thomas
	 	 	 	Date:
	 	10/26/98
	 	 	 	 	 	 	 
	Name:
	 	 	 	 
	 	 
	 
	V.P. Finance
	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	 
	 
	Sport
Supply Group, Inc.

	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Company (Licensee)

	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

SAP CONFIDENTIAL

 

 

Amendment 1 to Appendices 1 and 4

Effective January 1, 2004

to

SAP AMERICA, INC. (“SAP”) — SPORT SUPPLY GROUP, INC.
(“Licensee”)
 R/3
SOFTWARE END-USER LICENSE AGREEMENT effective June 11, 1998 (“Agreement”)

This Amendment modifies the above-referenced Appendix 1 and 4 to the Agreement
between the parties. In each instance in which the provisions of this Amendment contradict
or are inconsistent with the provisions of Appendix 1 and the Agreement, the provisions of
this Amendment shall prevail and govern and the contradicted or inconsistent provisions
shall be deemed amended accordingly.

A. Appendix 1

I. SAP and Licensee agree that Item 1.2 of Appendix 1 effective June 11, 1998 to
the Agreement is amended as follows:

	 	a)	 	delete “160” Named/Operational Users and replace with
“98” Named/Operational Users,
	 
	 	b)	 	delete “40” Info Users and replace with “45” Info Users,
	 
	 	c)	 	delete “3” D/W Users and replace with “10” D/W Users, and
	 
	 	d)	 	delete “203” Database Interface Users and replace with
“153” Database Interface
	 
	 	 	 	Users.

II. SAP and Licensee agree that Item 5.7 of Appendix 1 effective June 11,1998 to the
Agreement is amended by deleting the first two sentences and replacing them with the
following:

“The Maintenance Fee for the Software licensed under this Appendix, for the total number of Users
specified above is priced at the then current factor (currently 17%) in effect multiplied
by the Maintenance Base for the licensed Software of USD 539,400. The current annual
Maintenance Fee, as of January 1 2004, for the Software licensed under this Appendix is USD
91,698.”

B. Appendix 4

I. SAP and Licensee agree that Item 1.2 of Appendix 4 effective December 18, 2000 to
the Agreement is amended as follows:

	 	a)	 	delete “11” R/C Users and replace with “40” R/C Users and

	 
	 	b)	 	delete “9” Basis Users and replace with “17” Basis Users.

II. SAP and Licensee agree that Item 5.2 of Appendix 4 effective December 18, 2000 to the
Agreement is amended by deleting the first two sentences and replacing them with the following:

“The Maintenance Fee for the Software licensed under this Appendix, for the total number of
Users specified above is priced at the then current factor (currently 17%) in effect
multiplied by the Maintenance Base for the licensed Software of USD 80,925. The current
annual Maintenance Fee, as of January 1 2004, for the Software licensed under this Appendix
is USD 13,757.”

 

 

Licensee agrees that the net termination of the Users under Appendices 1 and 4 is permanent and
that license fees, as then negotiated by the parties, will have to be paid for any additional or
replacement Users or Software.

EXCEPT AS HEREIN PROVIDED, NONE OF THE PROVISIONS OF THE AGREEMENT OR APPENDICES 1
AND 4 SHALL BE AFFECTED BY THIS AMENDMENT.

	 	 	 	 	 	 	 	 	 	 	 
	ACCEPTED BY:	 	 	 	ACCEPTED BY:	 	 
	SAP AMERICA INC.	 	 	 	SPORT SUPPLY GROUP, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BY:

	 	/s/ Charles F. Tisa
	 	 	 	BY:
	 	/s/ Terrence M. Babilla	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	NAME:

	 	Charles F. Tisa
	 	 	 	NAME:
	 	Terrence M. Babilla	 	 
	TITLE:

	 	Vice President
	 	 	 	TITLE:
	 	 COO	 	 
	DATE:

	 	4-15-04
	 	 	 	DATE:
	 	4-15-04	 	 

 

 

SAP America, Inc.

July 9, 1998

VIA DHL

Mr. John Macguire

Sport Supply Group, Inc.

1901 Diplomat Drive 
Farmers
Branch, Texas 75234

			
	Re:	 	R/3 Software End-User License Agreement effective June 11, 1998; Exhibit A;
Appendix 1 effective June 11, 1998

Dear Mr. Macguire:

Thank you for selecting SAP for your business application software. At SAP, assuring your success
is our top priority and TeamSAP is how we do it. The TeamSAP initiative brings together the best
of SAP’s resources; the people, the processes and the products to deliver better results and
ultimately greater benefits to your business.

Enclosed for your file please find fully executed originals of the above-referenced documents. If
you have any questions about your installation, please feel free to contact your Account
Executive or the customer support center at 800-677-7271.

If you should have any other questions, please feel free to contact Lee Gilmer, SAP’s Contract
Manager for the Southern Region at
770-353-2937 or 800-395-4727. We look forward to being of
service to you and to a long and successful relationship.

Very truly yours,

SAP America, Inc.

	 
	/s/ Rebecca Swavely

	Rebecca Swavely

	Legal Assistant

Enclosures

cc: Lee Gilmer (w/enclosure)

3999
West Chester Pike • Newtown Square, PA 19073

phone: 610-355-2500 • fax: 610-355-2501

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