Document:

First Amendment to Credit Agreement

 Exhibit 10.29 
  
 PETCO ANIMAL SUPPLIES STORES, INC. 
  
 FIRST AMENDMENT 
 TO CREDIT AGREEMENT 
  
 This FIRST AMENDMENT TO
CREDIT AGREEMENT (this “Amendment”) is dated as of March 10, 2005 and entered into by and among PETCO Animal Supplies Stores, Inc., a Delaware corporation (“Company”), the financial institutions listed on the
signature pages hereof (“Lenders”) and Wells Fargo Bank, National Association, as administrative agent for Lenders (“Administrative Agent”), and is made with reference to that certain Credit Agreement dated as of
January 13, 2005 (the “Credit Agreement”), by and among Company, Lenders and Administrative Agent. Capitalized terms used herein without definition shall have the same meanings herein as set forth in the Credit Agreement.

  
 RECITALS 
  
 WHEREAS, Company and Lenders desire to amend the Credit Agreement to
(i) increase the Consolidated Capital Expenditures permitted under subsection 7.8 and (ii) make certain other amendments as set forth below: 
  
 NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as
follows: 
  
 Section 1. AMENDMENTS TO THE CREDIT AGREEMENT

  
 1.1 Amendments to Section 1: Definitions 
  
 Subsection 1.1 of the Credit Agreement is hereby amended by deleting the
definition of “Excluded Expenditures” therefrom in its entirety and substituting the following therefore:  
  
 ““Excluded Expenditures” means, (i) expenditures to the extent they are made with the proceeds of the issuance of Capital Stock of
any Loan Party or of any capital contribution to any Loan Party after the Closing Date or with Net Casualty/Condemnation Proceeds or Net Asset Sales Proceeds, (ii) expenditures used for Permitted Acquisitions, (iii) expenditures used for
acquisitions of fee owned real estate, up to an aggregate amount of $25,000,000 per Fiscal Year, so long as (a) the Company demonstrates to the satisfaction of the Administrative Agent a viable plan to complete a sale-leaseback of such property
within one year of the acquisition thereof and (b) the Administrative Agent approves of the exclusion of such expenditures in its reasonable discretion, provided that if the applicable Loan Party fails to complete a sale-leaseback with
respect to such real property within such one-year period, expenditures used for such acquisition of such real property shall be included as a Consolidated Capital Expenditure in the Fiscal Year in which such one year period expires, and (iv) a
one-time, non-cash, cumulative, historical adjustment to Consolidated Capital Expenditures recorded in the Fiscal Year ended January 29, 2005.” 
  
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 1.2 Amendments to Section 7: Company’s Negative Covenants 
  
 Section 7.8 of the Credit Agreement is hereby amended by deleting it in its
entirety and substituting the following therefore: 
  
 “7.8 Consolidated
Capital Expenditures. 
  
 Company shall not, and shall not permit
Holdings or any of its Subsidiaries to, make or incur Consolidated Capital Expenditures in an aggregate amount in excess of (a) $121,000,000 for the Fiscal Year ended on January 29, 2005, (b) $150,000,000 for the Fiscal Year ending on January 28,
2006, (c) $161,000,000 for the Fiscal Year ending on February 3, 2007, (d) $172,000,000 for the Fiscal Year ending on February 2, 2008, (e) $183,000,000 for the Fiscal Year ending on January 31, 2009 and (f) $194,000,000 for the Fiscal Year ending
on January 30, 2010 (such amount, for each Fiscal Year, the “Maximum Expenditure Amount”); provided that the Maximum Expenditure Amount for any Fiscal Year, beginning with the Fiscal Year ending on February 3, 2007, shall be
increased by an amount equal to the excess, if any, of the Maximum Expenditure Amount for the previous year (without giving effect to any previous adjustment made in accordance with this proviso) over the actual amount of Consolidated Capital
Expenditures for such previous Fiscal Year, but in no event shall such increase exceed 10% of the Maximum Expenditure Amount for such previous Fiscal Year, provided, further that notwithstanding the limitations set forth in clauses (a)
through (f) herein, Company may make or incur additional Consolidated Capital Expenditures in an aggregate amount not to exceed $40 million for the purpose of purchasing the land and improvements comprising Company’s corporate headquarters (or
a portion thereof) and provided further that for purposes of determining compliance with this covenant, any Consolidated Capital Expenditures made by Holdings or any of its Subsidiaries in connection with the acquisition and improvement of
real property during any period shall be deemed to be decreased by the net proceeds (consisting of Cash payments received from the sale net of any direct sales costs incurred in connection with the sale) of any sale-leaseback transaction covering
such real property and improvements (not exceeding the amount of such Consolidated Capital Expenditures) consummated in accordance with clause (2) of the first proviso of Section 7.9 in the period in which such sale-leaseback transaction is
consummated.” 
  
 Section 2. CONDITIONS TO EFFECTIVENESS

  
 Section 1 of this Amendment shall become effective only
upon the satisfaction of all of the following conditions precedent (the date of satisfaction of such conditions being referred to herein as the “First Amendment Effective Date”): 
  
 A. On or before the First Amendment Effective Date, Company shall
deliver to Lenders (or to Administrative Agent or its legal counsel for Lenders) one or more copies of this Amendment executed by each Loan Party, dated the First Amendment Effective Date. 
  
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 2 

 B. Requisite Lenders shall have executed this Amendment and delivered copies to Administrative
Agent or its legal counsel. 
  
 C. On or before the First
Amendment Effective Date, all corporate and other proceedings taken or to be taken in connection with the transactions contemplated hereby and all documents incidental thereto not previously found acceptable by Administrative Agent, acting on behalf
of Lenders, and its counsel shall be satisfactory in form and substance to Agent and such counsel, and Agent and such counsel shall have received all such counterpart originals or certified copies of such documents as Administrative Agent may
reasonably request. 
  
 Section 3. COMPANY’S
REPRESENTATIONS AND WARRANTIES 
  
 In order to induce Lenders
to enter into this Amendment and to amend the Credit Agreement in the manner provided herein, Company represents and warrants to each Lender that the following statements are true, correct and complete: 
  
 A. Corporate Power and Authority. Company has all requisite corporate
power and authority to enter into this Amendment and to carry out the transactions contemplated by, and perform its obligations under, the Credit Agreement as amended by this Amendment (the “Amended Agreement”). 
  
 B. Authorization of Agreements. The execution and delivery of this
Amendment and the performance of the Amended Agreement have been duly authorized by all necessary corporate action on the part of Company. 
  
 C. No Conflict. The execution and delivery by Company of this Amendment and the performance by Company of the Amended Agreement do not and will not
(i) violate any provision of any law or any governmental rule or regulation applicable to Company or any of its Subsidiaries, the Certificate or Articles of Incorporation or Bylaws of Company or any of its Subsidiaries or any order, judgment or
decree of any court or other agency of government binding on Company or any of its Subsidiaries, (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any Contractual Obligation of Company
or any of its Subsidiaries, which breach or default would reasonably be expected to have a Material Adverse Effect, (iii) result in or require the creation or imposition of any Lien upon any of the properties or assets of Company or any of its
Subsidiaries (other than Liens created under any of the Loan Documents in favor of Administrative Agent on behalf of Lenders), or (iv) require any approval of stockholders or any approval or consent of any Person under any Contractual Obligation of
Company or any of its Subsidiaries. 
  
 D. Governmental
Consents. The execution and delivery by Company of this Amendment and the performance by Company of the Amended Agreement do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by,
any federal, state or other governmental authority or regulatory body. 
  
 E. Binding Obligation. This Amendment has been duly executed and delivered by Company and this Amendment and the Amended Agreement are the legally valid 
  
 First Amendment 
  

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and binding obligations of Company, enforceable against Company in accordance with their respective terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability. 
  
 F. Absence of Default. No event has occurred and is continuing or will result from the consummation of the
transactions contemplated by this Amendment that would constitute an Event of Default or a Potential Event of Default. 
  
 Section 4. MISCELLANEOUS 
  
 A. Reference to and Effect on the Credit Agreement and the Other Loan Documents. 
  
 (i) On and after the First Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”,
“hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof”
or words of like import referring to the Credit Agreement shall mean and be a reference to the Amended Agreement. 
  
 (ii) Except as specifically amended by this Amendment, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are
hereby ratified and confirmed. 
  
 (iii) The execution, delivery
and performance of this Amendment shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of Agent or any Lender under, the Credit Agreement or any of the other
Loan Documents. 
  
 B. Fees and Expenses. Company
acknowledges that all costs, fees and expenses as described in subsection 10.2 of the Credit Agreement incurred by Administrative Agent and its counsel with respect to this Amendment and the documents and transactions contemplated hereby shall be
for the account of Company. 
  
 C. Headings. Section and
subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect. 
  
 D. Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK),
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 
  
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 E. Counterparts; Effectiveness. This Amendment may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from
multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. This Amendment shall become effective upon the execution of a counterpart hereof by Company, Requisite
Lenders and each of the Loan Parties and receipt by Company and Administrative Agent of written or telephonic notification of such execution and authorization of delivery thereof. 
  
 Section 5. ACKNOWLEDGEMENT AND CONSENT BY GUARANTORS 
  
 Each guarantor listed on the signature pages hereof (“Guarantors”) hereby acknowledges that it has read
this Amendment and consents to the terms thereof, and hereby confirms and agrees that, notwithstanding the effectiveness of this Amendment, the obligations of each Guarantor under its applicable Guaranty shall not be impaired or affected and the
applicable Guaranty is, and shall continue to be, in full force and effect and is hereby confirmed and ratified in all respects. Each Guarantor further agrees that nothing in the Credit Agreement, this Amendment or any other Loan Document shall be
deemed to require the consent of such Guarantor to any future amendment to the Credit Agreement. 
  
 [The remainder of page intentionally left blank.] 
  
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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their respective officers thereunto duly authorized as of the date first written above. 
  

			
	 PETCO ANIMAL SUPPLIES STORES, INC.,
 a
Delaware corporation

		
	 By:
	 	 /s/ Rodney Carter

	 Name:
	 	Rodney Carter
	 Title:
	 	Senior Vice President and Chief Financial Officer

  
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 S-1 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent and as a Lender
		
	 By:
	 	 /s/ Alex Y. Kim

	 Name:
	 	Alex Y. Kim
	 Title:
	 	Vice President

  
 First Amendment

  

 S-2 

			
	 LENDERS:

	
	 BANK OF AMERICA, N.A.

		
	 By:
	 	 /s/ Matthew Koenig

	 Name:
	 	 MATTHEW KOENIG

	 Title:
	 	 Senior Vice President

  
 First Amendment

  

 S-3 

			
	 U.S. BANK NATIONAL ASSOCIATION

		
	 By:
	 	 /s/ Guy Shinagawa

	 Name:
	 	Guy Shinagawa
	 Title:
	 	Assistant Vice President

  
 First Amendment

  

 S-4 

			
	 UNION BANK OF CALIFORNIA, N.A.

		
	 By:
	 	 /s/ L D. Hart

	 Name:
	 	 L D. Hart

	 Title:
	 	 Vice President

  
 First Amendment

  

 S-5 

			
	NATIONAL CITY BANK
		
	 By:
	 	 /s/ Ralph Kaparos

	 Name:
	 	 Ralph Kaparos

	 Title:
	 	 Senior Vice President

  
 First Amendment

  

 S-6 

			
	HSBC BANK USA, NATIONAL ASSOCIATION
		
	 By:
	 	 /s/ Blake Seaton

	 Name:
	 	BLAKE SEATON
	 Title:
	 	VICE PRESIDENT

  
 First Amendment

  

 S-7 

			
	JPMORGAN CHASE BANK, N.A.
		
	 By:
	 	 /s/ Jason A. Rastovski

	 Name:
	 	Jason A. Rastovski
	 Title:
	 	Vice President

  
 First Amendment

  

 S-8 

			
	GUARANTORS:
	
	PETCO ANIMAL SUPPLIES, INC.,
	 a Delaware corporation

		
	 By:
	 	 /s/ Rodney Carter

	 Name:
	 	Rodney Carter
	 Title:
	 	Senior Vice President and Chief
	 	 	Financial Officer
	
	INTERNATIONAL PET SUPPLIES AND DISTRIBUTION, INC.,
	 a California corporation

		
	 By:
	 	 /s/ Rodney Carter

	 Name:
	 	Rodney Carter
	 Title:
	 	Senior Vice President and Chief
	 	 	Financial Officer
	
	 PETCO SOUTHWEST, INC.,

	 a California corporation

		
	 By:
	 	 /s/ Rodney Carter

	 Name:
	 	Rodney Carter
	 Title:
	 	Senior Vice President and Chief
	 	 	Financial Officer
	
	 PETCO SOUTHWEST, L.P.,

	 a California limited partnership

		
	 By:
	 	PETCO ANIMAL SUPPLIES STORES, INC.
	 Its:
	 	General Partner
		
	 By:
	 	 /s/ Rodney Carter

	 Name:
	 	Rodney Carter
	 Title:
	 	Senior Vice President and Chief
	 	 	Financial Officer

  
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 S-9 

			
	PET CONCEPTS INTERNATIONAL,
	 a California corporation

		
	 By:
	 	 /s/ Rodney Carter

	 Name:
	 	Rodney Carter
	 Title:
	 	Senior Vice President and Chief
	 	 	Financial Officer
	
	PM MANAGEMENT INCORPORATED,
	 a California corporation

		
	 By:
	 	 /s/ Rodney Carter

	 Name:
	 	Rodney Carter
	 Title:
	 	Senior Vice President and Chief
	 	 	Financial Officer
	
	 E-PET SERVICES,

	 a California corporation

		
	 By:
	 	 /s/ Rodney Carter

	 Name:
	 	Rodney Carter
	 Title:
	 	Senior Vice President and Chief
	 	 	Financial Officer
	
	 E-PET SERVICES, LLC,

	 a Virginia limited liability company

		
	 By:
	 	E-PET SERVICES
	 Its:
	 	Sole Member
		
	 By:
	 	 /s/ Rodney Carter

	 Name:
	 	Rodney Carter
	 Title:
	 	Senior Vice President and Chief
	 	 	Financial Officer

  
 First Amendment

  

 S-10K2 Inc. 2005 Long-Term Incentive Plan

 EXHIBIT 4.1 
  

2005 Long-Term Incentive Plan 
  
 K2 Inc. 
  
 As Adopted by the Compensation Committee as of April 28, 2005 
 (Stockholder Approval Not
Required) 

 CONTENTS 
  

					
	 	  	 	  	Page

	 SECTION 1.
	  	PURPOSE; DEFINITIONS	  	1
			
	 SECTION 2.
	  	ADMINISTRATION	  	3
			
	 SECTION 3.
	  	STOCK SUBJECT TO PLAN	  	4
			
	 SECTION 4.
	  	ELIGIBILITY	  	5
			
	 SECTION 5.
	  	STOCK OPTIONS	  	5
			
	 SECTION 6.
	  	STOCK APPRECIATION RIGHTS	  	7
			
	 SECTION 7.
	  	RESTRICTED STOCK AND RESTRICTED STOCK UNITS	  	8
			
	 SECTION 8.
	  	OTHER STOCK-BASED AWARDS	  	10
			
	 SECTION 9.
	  	CHANGE OF CONTROL PROVISIONS	  	11
			
	 SECTION 10.
	  	AMENDMENTS AND TERMINATION	  	12
			
	 SECTION 11.
	  	UNFUNDED STATUS OF PLAN	  	13
			
	 SECTION 12.
	  	GENERAL PROVISIONS	  	13
			
	 SECTION 13.
	  	TERM OF PLAN	  	14

 K2 Inc. 
 2005 Long-Term Incentive Plan 
  
 Section 1. Purpose; Definitions 
  
 The purpose
of the K2 Inc. 2005 Long-Term Incentive Plan (the “Plan”) is to enable K2 Inc. (the “Company”) to attract, retain, and reward non-employee directors, officers, managers, and key employees of the Company and its Subsidiaries, and
motivate such persons to exert their best efforts on behalf of the Company and its Subsidiaries. 
  
 For purposes of the Plan, the following terms shall be defined as set forth below: 
  
 (a) “Acquired Plans” means the Rawlings Sporting Goods Company, Inc. 1994 Long-Term Incentive Plan
(the “Rawlings 1994 LTIP”), the Rawlings Sporting Goods Company, Inc. 1994 Non-Employee Directors’ Stock Plan (the “Rawlings Directors’ Plan”), the Brass Eagle, Inc. 1997 Stock Option Plan (the “Brass Eagle Option
Plan”), the Fotoball USA Inc. 1998 Stock Option Plan (the “Fotoball Option Plan”), and the Marmot Mountain, Ltd. 2000 Stock Incentive Plan (the “Marmot Stock Plan”), each of which is terminated concurrently with the adoption
of this Plan. 
  
 (b) “Award” means an
award under the Plan of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, and/or Other Stock-Based Awards. 
  
 (c) “Board” means the Board of Directors of the Company. 
  
 (d) “Book Value” means, as of any given date, on a per share basis (a) the Stockholders’
Equity in the Company as of the end of the immediately preceding fiscal year as reflected in the Company’s consolidated balance sheet, subject to such adjustments as the Committee shall specify at or after grant, divided by (b) the number of
then outstanding shares of Stock as of such year-end date (as adjusted by the Committee for subsequent events). 
  
 (e) “Cause” means, but is not limited to, any of the following actions: theft, dishonesty or fraud, insubordination, persistent
inattention to duties or excessive absenteeism, violation of the Company’s work rules, code of conduct or policies or state or federal law, or any conduct which would disqualify the participant from entitlement to unemployment benefits. The
determination of whether Cause exists shall be made in the Company’s sole discretion. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto. 
  
 (g) “Committee” means the Committee referred to in Section 2 of the Plan. If at any time no
Committee shall be in office, then the functions of the Committee specified in the Plan shall be exercised by the Board. 

 (h) “Company” means K2 Inc., a corporation organized under the laws of the State
of Delaware, or any successor corporation. 
  
 (i)
“Disability” means disability as determined under procedures established by the Committee for purposes of this Plan. 
  
 (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto. 

 
 (k) “Fair Market Value” means, as of
any given date, unless otherwise determined by the Committee in good faith, the mean between the highest and lowest quoted selling price, regular way, of the Stock on the New York Stock Exchange or, if no such sale of Stock occurs on the New York
Stock Exchange on such date, the fair market value of the Stock as determined by the Committee in good faith. 
  
 (l) “Incentive Stock Option” means any Stock Option intended to be and designated as an incentive Stock Option” within the
meaning of Section 422 of the Code. 
  
 (m)
“Nonqualified Stock Option” means any Stock Option that is not an Incentive Stock Option. 
  
 (n) “Other Stock-Based Award” means an award under Section 8 below that is valued in whole or in part by reference to, or is
otherwise based on, Stock. 
  
 (o)
“Person” means “person” as defined in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) of the Exchange Act but excluding the
Company and Subsidiary and any employee benefit plan sponsored or maintained by the Company or any Subsidiary (including any trustee of such plan acting as trustee). 
  
 (p) “Plan” means K2 Inc.’s 2005 Long-Term Incentive Plan, as hereinafter amended from time to
time. 
  
 (q) “Restricted Stock”
means an award of shares of Stock that is subject to restrictions under Section 7 below. 
  
 (r) “Restricted Stock Unit” means a fixed or variable right to acquire Stock, which may or may not be subject to restriction, contingently awarded under Section 7 of the Plan. 
  
 (s) “Stock” means the Common Stock, $1.00 par value
per share, of the Company. 
  
 (t) “Stock
Appreciation Right” means the right to participate in an increase in the value of a share of Stock pursuant to an award granted under Section 6. 
  

(u) “Stock Option” or “Option” means any option to purchase shares of Stock (including Restricted
Stock, if the Committee so determines) granted pursuant to Section 5 below. 

 (v) “Subsidiary” means a corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one
of the other corporations in the chain, or otherwise controls one of the other corporations in the chain. 
  
 Section 2. Administration 
  
 The Plan shall be administered by a committee of not less than two members of the Board, who shall be appointed by, and serve at the pleasure of, the
Board. In selecting the members of the Committee, the Board shall take into account the requirements for the members of the Committee to be treated as “Non-Employee Directors” for purposes of Rule 16b-3, as promulgated under Section 16 of
the Exchange Act. The functions of the Committee specified in the Plan shall be exercised by the Board, if and to the extent that no Committee exists which has the authority to so administer the Plan or to the extent that the Committee is not
comprised solely of Non-Employee Directors for purposes of Rule 16b-3, as promulgated under Section 16 of the Exchange Act. 
  
 The Committee shall have full authority to grant, pursuant to the terms of the Plan, to non-employee directors, officers, managers, and key employees,
eligible under Section 4: (i) Stock Options; (ii) Stock Appreciation Rights; (iii) Restricted Stock and Restricted Stock Units; and/or (iv) Other Stock-Based Awards. 
  
 In particular the Committee shall have the authority: 
  
 (i) To select the non-employee directors, officers, managers, and key employees of the Company and its Subsidiaries
to whom Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, and/or Other Stock-Based Awards may from time to time be granted hereunder; 
  
 (ii) To establish subplans or other arrangements not inconsistent with the Plan which the Committee deems necessary
or advisable to comply with laws or requirements of foreign jurisdictions; 
  
 (iii) To determine whether and to what extent Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, and/or Other Stock Based Awards or any combination thereof, are to
be granted hereunder to one or more eligible employees and non-employee directors; 
  
 (iv) Subject to the provisions of Sections 3 and 5, to determine the number of shares to be covered by each such award granted hereunder; 
  
 (v) To determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted
hereunder (including, but not limited to, the share price and any restriction or limitation, or, subject to the minimum vesting requirements in the Plan, any vesting acceleration or waiver of forfeiture restrictions regarding any Stock Option or
other award and/or the shares of Stock relating thereto, based in each case on such factors as the Committee shall determine in its sole discretion); 

 (vi) To determine whether and under what circumstances an award of Restricted Stock or Restricted
Stock Units may be settled in cash; 
  
 (vii) To
determine whether, to what extent and under what circumstances Option grants and/or other awards under the Plan made by the Company are to be made, and operate, on a tandem basis vis-à-vis other awards under the Plan and/or cash awards made
outside of the Plan, or on an additive basis; 
  
 (viii)
To determine whether, to what extent and under what circumstances Stock and other amounts payable with respect to an award under this Plan shall be deferred either automatically or at the election of the participant (including providing for and
determining the amount (if any) of any deemed earnings on any deferred amount during any deferral period); and 
  
 (ix) To designate officers or employees of the Company or competent professional advisors to assist the Committee in the administration of the
Plan, and to grant authority to such persons to execute agreements or other documents on its behalf. 
  
 The Committee shall have the authority to adopt, alter, and repeal such rules, guidelines and practices governing the Plan as it shall, from time to time,
deem advisable to interpret the terms and provisions of the Plan and any award issued under the Plan (and any agreements relating thereto), and to otherwise supervise the administration of the Plan. 
  
 All decisions made by the Committee pursuant to the provisions of the Plan
shall be made in the Committee’s sole discretion and shall be final, conclusive and binding on all persons, including the Company and Plan participants. 
  
 Section 3. Stock Subject to Plan 
  
 The total number of shares of Stock reserved and available for distribution under the Plan shall be 1,059,012 shares, which shall consist of 369,922
shares of Stock acquired pursuant to the merger with Rawlings Sporting Goods Company, Inc. (“Rawlings”) from the Rawlings 1994 LTIP and 122,460 shares of Stock acquired from the Rawlings Directors’ Plan, 335,214 shares of Stock
acquired pursuant to the merger with Brass Eagle, Inc. (“Brass Eagle”) from the Brass Eagle Option Plan, 81,621 shares of Stock acquired pursuant to the merger with Fotoball USA Inc. (“Fotoball”) from the Fotoball Option Plan,
and 149,795 shares of Stock acquired pursuant to the merger with Marmot Mountain, Ltd. (“Marmot”) from the Marmot Stock Plan; provided however, that such share reserve shall be increased from time to time by a number of
shares equal to the number of shares of Stock that (i) immediately following the adoption of this Plan were issuable pursuant to outstanding options under the Acquired Plans that were assumed pursuant to the merger agreements with Rawlings,
Fotoball, Marmot and Brass Eagle and (ii) but for the termination of the Acquired Plans would otherwise have reverted to the share reserve of such Acquired Plans pursuant to the provisions thereof. 

 The Company may grant stock awards other than Options only to the extent that the share reserves of the
Acquired Plans permitted such other stock awards, subject to adjustment pursuant to this Section 3 below. 
  
 If any shares of Stock that have been optioned cease to be subject to a Stock Option, or if any such shares of Stock that are subject to any Restricted
Stock or Restricted Stock Units award or Other Stock-Based Award granted hereunder are forfeited or any such award otherwise terminates without a payment being made to the participant in the form of Stock, such shares shall not be counted against
the share limits set forth in this Section 3 and shall again be available for distribution in connection with future awards under the Plan. 
  
 Except as provided in Section 9, in the event of any merger, reorganization, consolidation, recapitalization, Stock dividend, large non-recurring cash
dividend (as determined by the Committee), Stock split or other change in corporate structure affecting the Stock, such substitution or adjustment shall be made in the aggregate number of shares subject to, and reserved for issuance under, the Plan
(including any limitations contained in this Section 3), in the number and option price of shares subject to outstanding Options granted under the Plan, and in the number of shares subject to other outstanding Awards granted under the Plan as may be
determined to be appropriate by the Committee, in its sole discretion, provided that the number of shares as so adjusted shall always be a whole number. Such adjusted option price shall also be used to determine the amount payable by the Company
upon the exercise of any Stock Appreciation Right. 
  
 Section
4. Eligibility 
  
 Non-employee directors, officers,
managers, and other key employees of the Company and its Subsidiaries who are responsible for or contribute to the management, growth and/or profitability of the business of the Company and/or its Subsidiaries are eligible to be granted awards under
the Plan. Notwithstanding the foregoing, as provided in Section 303A(8) of the New York Stock Exchange’s Listed Company Manual, (i) shares of Stock under the Rawlings 1994 LTIP or the Rawlings Directors’ Plan may not be used for Awards to
individuals who were employed, immediately before the merger with Rawlings, by the Company, (ii) shares of Stock under the Brass Eagle Option Plan may not be used for Awards to individuals who were employed, immediately before the merger with Brass
Eagle, by the Company, (iii) shares of Stock under the Fotoball Option Plan may not be used for Awards to individuals who were employed, immediately before the merger with Fotoball, by the Company, and (iv) shares of Stock under the Marmot Stock
Plan may not be used for Awards to individuals who were employed, immediately before the merger with Marmot, by the Company. 
  
 Section 5. Stock Options 
  
 Stock Options may be granted alone, in addition to or in tandem with other Awards granted under the Plan. Any Stock Option granted under the Plan shall be
in such form as the Committee may from time to time approve. 
  
 Stock Options granted under the Plan may be Nonqualified Stock Options only. 

 The Committee shall have the authority to grant to any optionee Nonqualified Stock Options only (with or
without Stock Appreciation Rights). 
  
 Options granted under the
Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable: 
  
 (a) Exercise Price. The exercise price per share of Stock
purchasable under a Stock Option shall be determined by the Committee at the time of grant but shall be not less than one hundred percent (100%) of the Fair Market Value of the Stock at grant, provided however, that the exercise price per share of
Stock purchasable under a Stock Option that is granted in connection with a merger, stock exchange, or other acquisition as a substitute or replacement award for options held by optionees of the acquired entity may be less than one hundred percent
(100%) of the Fair Market Value of the Stock at the time of grant. 
  
 (b) Option Term. The term of each Stock Option shall be fixed by the Committee, but no Stock Option shall be exercisable more than ten (10) years after the date the Option is granted. 
  
 (c) Exercisability. Stock Options shall be exercisable at such
time or times and subject to such terms and conditions as shall be determined by the Committee at or after grant; provided, that except in the case of an Award issued in connection with the start of employment or service with the Company or its
Subsidiaries, or under such other circumstances as are deemed appropriate by the Committee, Stock Options shall not be exercisable prior to the first anniversary of grant. If the Committee provides, in its sole discretion, that any Stock Option is
exercisable only in installments, the Committee may waive such installment exercise provisions at any time at or after grant in whole or in part, based on such factors as the Committee shall determine, in its sole discretion. 
  
 (d) Method of Exercise. Subject to whatever installment
exercise provisions apply under Section 5(c), Stock Options may be exercised upon vesting in whole or in part at any time during the option period, by giving written notice of exercise to the Company, or its designated representative, specifying the
number of shares to be purchased. 
  
 Such notice shall be
accompanied by payment in full of the purchase price, either by check, note or such other instrument as the Committee may accept. As determined by the Committee, in its sole discretion, at or after grant, payment in full or in part may also be made
in the form of unrestricted Stock already owned by the optionee or in any other manner approved by the Committee. 
  
 No shares of Stock shall be issued until full payment therefore has been made. An optionee shall generally have the rights to dividends or other rights of
a shareholder with respect to the shares subject to the Option when the optionee has given written notice of exercise, has paid in full for such shares. 
  

(e) Transferability of Options. Unless the Committee shall permit (on such terms and conditions as it shall establish) an Option to be
transferred to a 

 member of the participant’s immediate family or to a trust or similar vehicle for the benefit of such immediate
family members, no Option shall be assignable or transferable except by will or the laws of descent and distribution, and except to the extent required by law, no right or interest of any participants shall be subject to any lien, obligation or
liability of the participant. 
  
 (f) Termination by
Death. If an optionee’s employment by or service with the Company and any Subsidiary terminates by reason of death, any Stock Option held by such optionee may thereafter be exercised in accordance with the terms and conditions
established by the Committee. 
  
 (g) Termination by Reason
of Disability. If an optionee’s employment by or service with the Company and any Subsidiary terminates by reason of Disability, any Stock Option held by such optionee may thereafter be exercised by the optionee in accordance with the
terms and conditions established by the Committee. 
  
 (h)
Termination for Cause. If an optionee’s employment by the Company and any Subsidiary is terminated for Cause, the Stock Option shall thereupon terminate, whether or not exercisable at that time. 
  
 (i) Other Termination. Unless otherwise determined by the
Committee, if an optionee’s employment by or service with the Company and any Subsidiary terminates for any reason other than death or Disability, the Stock Option shall thereupon terminate. 
  
 Section 6. Stock Appreciation Rights 
  
 (a) Grant and Exercise. Stock Appreciation Rights may be
granted alone or in conjunction with all or part of any Stock Option granted under the Plan. In the case of a Nonqualified Stock Option, such rights may be granted either at or after the time of the grant of such Stock Option. 
  
 The term of each Stock Appreciation Right granted independent of a Stock
Option shall be fixed by the Committee, but no Stock Appreciation Right shall be exercisable more than ten (10) years after the date the Stock Appreciation Right is granted. A Stock Appreciation Right or applicable portion thereof granted with
respect to a given Stock Option shall terminate and no longer be exercisable upon the termination or exercise of the related Stock Option, subject to such provisions as the Committee may specify at grant where a Stock Appreciation Right is granted
with respect to less than the full number of shares covered by a related Stock Option. 
  
 A Stock Appreciation Right may be exercised by an optionee, subject to Section 6(b), in accordance with the procedures established by the Committee for such purposes. Upon such exercise, the optionee shall be entitled
to receive an amount determined in the manner prescribed in Section 6(b). Stock Options relating to exercised Stock Appreciation Rights shall no longer be exercisable to the extent that the related Stock Appreciation Rights have been exercised.

 (b) Terms and Conditions. Stock Appreciation Rights shall be subject to such terms and
conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time by the Committee, including the following: 
  
 (i) Stock Appreciation Rights shall be exercisable at such time or times as shall be determined by the Committee at or after grant; provided,
however, that Stock Appreciation Rights shall be subject to the same terms and conditions applicable to Stock Options set forth in Section 5. Stock Appreciation Rights granted in conjunction with Stock Options shall be exercisable only at such time
or times and to the extent that the Stock Options to which they relate shall be exercisable in accordance with the provisions of Section 5 and this Section 6 of the Plan. 
  
 (ii) Upon the exercise of a Stock Appreciation Right, an optionee shall be entitled to receive an amount in cash
and/or shares of Stock equal in value to the excess of the Fair Market Value on the date of exercise of one share of Stock over the exercise price per share determined by the Committee at the time of grant multiplied by the number of shares in
respect of which the Stock Appreciation Right shall have been exercised, with the Committee having the right to determine the form of payment. When payment is to be made in shares, the amount and/or number of shares to be paid shall be calculated on
the basis of the Fair Market Value of the shares on the date of exercise. 
  
 (iii) Upon the exercise of a Stock Appreciation Right granted in conjunction with a Stock Option under the Plan, the number of shares issued under such Stock Appreciation Right based on the value of the Stock
Appreciation Right at the time of exercise shall be deemed to be issued for purposes of the share authorization set forth in Section 3 of the Plan. 
  
 Section 7. Restricted Stock and Restricted Stock Units 
  
 (a) Administration. Subject to the limitations set forth in Section 3, shares of Restricted Stock and/or Restricted Stock Units may be
issued either alone or, in addition to, or in tandem with, other awards granted under the Plan and/or awards made outside of the Plan. The Committee shall determine the eligible persons to whom, and the time or times at which, grants of Restricted
Stock and/or Restricted Stock Units will be made, the number of shares to be awarded, the price (if any) to be paid by the recipient of Restricted Stock and/or Restricted Stock Units (subject to Section 7(b)), the time or times within which such
awards may be subject to forfeiture, and all other terms and conditions of the awards. 
  
 The Committee may condition the grant of Restricted Stock and Restricted Stock Units upon the attainment of specified performance goals or such other factors as the Committee may determine, in its sole discretion.

  
 The provisions of Restricted Stock and Restricted Stock Unit
awards need not be the same with respect to each recipient. 
  
 (b) Awards and Certificates. The prospective recipient of a Restricted Stock or Restricted Stock Unit Award shall not have any rights with respect to such award, unless and until such recipient has complied with the applicable
terms and conditions of such Award. 

 (i) The purchase price for shares of Restricted Stock and Restricted Stock Units shall be set by
the Committee and may be zero. 
  
 (ii) Awards of
Restricted Stock and Restricted Stock Units must be accepted within a reasonable period (or such specific period as the Committee may specify at grant) after the award date, by executing an award agreement and paying whatever price (if any) is
required under Section 7(b)(i). 
  
 (c) Terms and
Conditions. The shares of Restricted Stock and Restricted Stock Units awarded pursuant to this Section 7 shall be subject to the following restrictions and conditions: 
  
 (i) Subject to the provisions of this Plan and the award agreement, during a period set by the Committee commencing
with the date of such award (the “Restriction Period”), the participant shall not be permitted to sell, transfer, assign, pledge or otherwise encumber shares of Restricted Stock or Restricted Stock Units awarded under the Plan. Other than
(a) as provided in Section 7(c)(iii), (b) with respect to Award made in connection with the start of employment or service with the Company or its Subsidiaries or (c) under such other circumstances deemed appropriate by the Committee, in no event
shall such Restriction Period be deemed satisfied in full in less than (x) three (3) years after the date of grant, if the non-forfeitability of Restricted Stock or Restricted Stock Units is based solely on continued employment or service and the
grant of the Restricted Stock or Restricted Stock Units is not a form of payment of earned incentive or other performance-based compensation (“Time-Based Retention Shares”), or (y) one (1) year after the date of grant, if the
non-forfeitability of Restricted Stock is also subject to the attainment of performance goals or the grant of Retention Shares is a form of payment of earned incentive or other performance-based compensation. Within these limits, the Committee, in
its sole discretion, may provide for the lapse of such restrictions in pro rata installments, based on service, performance and or such other factors or criteria as the Committee may determine, in its sole discretion. 
  
 (ii) Except as provided in this paragraph (ii) and Section 7(c)(i),
the Committee, in its sole discretion, as determined at the time of the award, may permit the participant to have, with respect to the shares of Restricted Stock, all of the rights of a shareholder of the Company, including the right to vote the
shares, and the right to receive any cash dividends. The Committee, in its sole discretion, as determined at the time of award, may permit or require the payment of cash dividends and may permit or require such cash dividends to be deferred and, if
the Committee so determines, reinvested, subject to Section 12(e), in additional Restricted Stock to the extent shares are available under Section 3, or otherwise reinvested. Pursuant to Section 3 above, Stock dividends issued with respect to
Restricted Stock shall be treated as additional shares of Restricted Stock that are subject to the same restrictions and other terms and conditions that apply to the shares with respect to which such dividends are issued. 
  
 (iii) Subject to the applicable provisions of the award agreement and
this Section 7, upon termination of a participant’s employment or service with the 

 Company and any Subsidiary for any reason during the Restriction Period, all shares of Restricted Stock or Restricted
Stock Units still subject to restriction will vest, or be forfeited, in accordance with the terms and conditions established by the Committee at or after grant. 
  

(iv) If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock or Restricted Stock Units subject to such
Restriction Period, certificates for an appropriate number of unrestricted shares shall be delivered to the participant promptly (unless the Committee decides pursuant to Section 2(vi) to settle the award in cash). 
  
 Section 8. Other Stock-Based Awards 
  
 (a) Administration. Other awards of Stock and other awards
that are valued in whole or in part by reference to, or are otherwise based on, Stock (“Other Stock-Based Awards”), including, without limitation, stock purchase rights, performance shares, exchangeable securities and Stock awards or
options valued by reference to Book Value or Subsidiary performance, may be granted either along with, or in addition to, or in tandem with, Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units granted under the Plan
and/or cash awards made outside of the Plan. 
  
 Subject to the
provisions of the Plan, the Committee shall have authority to determine the persons to whom and the time or times at which such awards shall be made, the number of shares of Stock to be awarded pursuant to such awards, and all other conditions of
the awards. The Committee may also provide for the grant of Stock upon the completion of a specified performance period. 
  
 The provision of Other Stock-Based Awards need not be the same in respect to each recipient. 
  
 (b) Terms and Conditions. Other Stock-Based Awards made pursuant to this Section 8 shall be subject to the
following terms and conditions: 
  
 (i) Subject to the
provisions of this Plan and the Award agreement referred to in Section 8(b)(v) below, shares subject to Awards made under this Section 8 may not be sold, assigned, transferred, pledged, or otherwise encumbered prior to the date on which the shares
are issued, or, if later, the date on which any applicable restriction, performance, or deferral period lapses. 
  
 (ii) Subject to the provision of this Plan and the Award agreement and unless otherwise determined by the Committee at grant, the recipient of an
Award under this Section 8 shall be entitled to receive, currently, or on a deferred basis, interest or dividends or interest or dividend equivalents with respect to the number of shares covered by the Award, as determined at the time of the Award
by the Committee, in its sole discretion, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional Stock or otherwise reinvested. 
  
 (iii) Any Award under Section 8 and any Stock covered by any such Award shall vest or be forfeited to the extent so
provided in the award agreement as 

 determined by the Committee, in its sole discretion; provided, that subject to Section 8(b)(iv) and except with respect
to Awards made in connection with the start of employment or service with the Company or its Subsidiaries or under such other circumstances as are deemed appropriate by the Committee, any such Other Stock-Based Award shall have a vesting requirement
of at least one year. 
  
 (iv) In the event of the
participant’s Disability or death, or in cases of special circumstances, the Committee may, in its sole discretion, waive in whole or in part any or all of the remaining limitations imposed hereunder (if any) with respect to any or all of an
Award under this Section 8. 
  
 (v) Each Award under this
Section 8 shall be confirmed by, and subject to the terms of, an agreement or other instrument by the Company and by the participant. 
  
 (vi) Stock (including securities convertible into Stock) issued on a bonus basis under this Section 8 may be issued for no cash consideration.

  
 Section 9. Change of Control Provisions 
  
 (a) Result of a Change of Control Other Than a Corporate
Transaction. In the event of a Change of Control (as defined in subsection (c) below) other than a Corporate Transaction (as defined in subsection (c) below) immediately prior thereto all restrictions relating to all outstanding awards
issued or granted under this Plan, including Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Other Stock-Based Awards and Performance Awards, shall lapse and such awards shall vest and become fully exercisable to
the extent not already fully vested or fully exercisable, and each outstanding Option holder shall be given a reasonable opportunity to exercise his or her Options prior to the Change of Control, unless determined otherwise by the Committee prior to
the Change of Control.  
  
 (b) Result of Corporate
Transaction. 
  
 (i) In the event of a Corporate
Transaction, immediately prior thereto all restrictions relating to all outstanding Awards issued or granted under this Plan shall vest and become fully exercisable to the extent not already fully vested or fully exercisable, with a reasonable
opportunity to exercise such Awards, prior to the Corporate Transaction, unless such Awards are assumed by the successor entity or its parent in the Corporate Transaction, in which event such Awards shall not become fully vested or exercisable, but
shall continue to vest (or not) in accordance with their terms. Each outstanding Award which is assumed in connection with the Corporate Transaction shall be appropriately adjusted, immediately after such Corporate Transaction, to apply and pertain
to the number and class of securities or other property which would have been issuable, in consummation of such Corporate Transaction, to an actual holder of the same number of shares of Common Stock as are subject to such Award immediately prior to
such Corporate Transaction. Appropriate adjustments shall also be made to the exercise or purchase price payable with respect to such Awards, provided the aggregate amount payable for such securities shall remain the same. In addition, the class and
number of securities available for issuance under the Plan following the consummation of the Corporate Transaction shall be appropriately adjusted. 

 (ii) In the event that outstanding Awards are assumed in connection with a Corporate Transaction
as set forth in Section 9(b)(i), and a Plan participant whose Award was so assumed is subsequently involuntarily terminated from all employment or other service by the Company, any of its Subsidiaries or any of their respective successors or parent
of the successors after the Corporate Transaction (other than termination as a result of Cause) within one (1) year following the Corporation Transaction, any Awards held by such Plan participant shall immediately vest in full, and shall be
exercisable, as applicable, until the earlier of the close of business on the sixtieth (60th) day following such termination or the expiration of the Award in accordance with its terms. 
  
 (c) Change of Control Defined. For purposes of this Plan, a “Change of Control” shall be deemed to
have occurred if: 
  
 (i) any person or related group of
persons (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 of the
Securities Exchange Act of 1934) of securities possessing more than thirty-five percent (35%) of the total combined voting power of the Company’s outstanding securities; 
  
 (ii) there is a change in the composition of the Board over a period of twenty-four (24) consecutive months or less
such that a majority of the Board members (rounded up to the next whole number) cease, by reason of one or more proxy contests for the election of Board members, to be comprised of individuals who either (A) have been Board members continuously
since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least two-thirds of the Board members described in clause (A) who were still in office at the time such election or
nomination was approved by the Board; 
  
 (iii) a merger
or consolidation occurs in which the Company is not the surviving entity, or any reverse merger in which the Company is the surviving entity but in which securities possessing more than fifty percent (50%) of the total combined voting power of the
Company’s outstanding securities are transferred to holders different from those who held such securities immediately prior to such merger (a “Corporate Transaction”); or 
  
 (iv) all or substantially all of the Company’s assets are sold or transferred other than in connection with an
internal reorganization of the Company. 
  
 Section 10.
Amendments and Termination 
  
 The Board or the Committee may
amend, alter or discontinue the Plan and may to the extent permitted by the Plan amend any agreement or other document evidencing an Award made under this Plan but, except as provided pursuant to the anti-dilution adjustment provisions of Section 3,
no such amendment shall, without the approval of the stockholders of the Company: 
  
 (a) increase the maximum number of shares of Stock for which Awards may be granted under this Plan; 

 (b) reduce the price at which Options may be granted below the price provided for in Section 5(a);

  
 (c) reduce the option price of outstanding Options;

  
 (d) extend the term of this Plan; 
  
 (e) change the class of persons eligible to receive Awards under the
Plan; or 
  
 (f) increase the individual maximum limits in
Section 3. 
  
 The Board or the Committee may to the extent
permitted by the Plan amend any agreement evidencing an Award made under this Plan, but no amendment or alteration shall be made which would impair the rights of any Plan participant, without such participant’s consent, under any Award
theretofore granted. 
  
 Section 11. Unfunded Status of Plan

  
 The Plan is intended to constitute an
“unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a participant or optionee by the Company, nothing contained herein shall give any such participant or optionee any rights that are
greater than those of a general creditor of the Company. In its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Stock or payments in lieu of or with
respect to awards hereunder; provided, however, that unless the Committee otherwise determines with the consent of the affected participant, the existence of such trusts or other arrangements is consistent with the “unfunded” status of the
Plan. 
  
 Section 12. General Provisions 
  
 (a) The Committee may require each person purchasing shares pursuant
to an Option or other Award under the Plan to represent to and agree with the Company in writing that the optionee or participant is acquiring the shares without a view to distribution thereof. The certificates for such shares may include any
legend, which the Committee deems appropriate to reflect any restrictions on transfer. 
  
 All certificates for shares of Stock or other securities delivered under the Plan shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations,
and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed, and any applicable federal or state securities law, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions. 

 (b) Nothing contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, subject to stockholder approval if such approval is required, and such arrangements may be either generally applicable or applicable only in specific cases. 
  
 (c) The adoption of the Plan shall not confer upon any employee or director of the Company or any Subsidiary any
right to continued employment or service as a director with the Company or a Subsidiary, as the case may be, nor shall it interfere in any way with the right of the Company or a Subsidiary to terminate the employment of any of its employees or
service of a director at any time. 
  
 (d) Except as the
participant and the Company may otherwise agree, no later than the date as of which an amount first becomes includable in the gross income of the participant for federal income tax purposes with respect to any award under the Plan, the participant
shall pay to the Company, or make arrangements satisfactory to the Committee regarding the payment of any federal, state, or local taxes of any kind required by law to be withheld with respect to such amount. Unless otherwise determined by the
Committee, withholding obligations may be settled with Stock, including Stock that is part of the award that gives rise to the withholding requirement. The obligations of the Company under the Plan shall be conditional on such payment of
arrangements and the Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the participant. 
  
 (e) The actual or deemed reinvestment of dividends or dividend
equivalents in additional Restricted Stock (or in other types of Plan awards) at the time of any dividend payment shall only be permissible if sufficient shares of Stock are available under Section 3 for such reinvestment (taking into account then
outstanding Stock Options and other Plan awards). 
  
 (f)
The Plan and all awards made and actions taken thereunder shall be governed by and construed in accordance with the laws of the State of Delaware. 
  
 Section 13. Term of Plan 
  
 No Award shall be granted pursuant to the Plan on or after December 31, 2007.

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