Document:

Exhibit 10.50

 

WIRELESS FACILITIES, INC.

2005 EQUITY INCENTIVE PLAN

 

STOCK OPTION AGREEMENT

(INCENTIVE AND NONSTATUTORY STOCK
OPTIONS)

 

Pursuant to your Stock Option
Grant Notice (“Grant Notice”) and this Stock Option Agreement, Wireless
Facilities, Inc. (the “Company”) has granted to you an Option under its 2005
Wireless Facilities, Inc. Equity Incentive Plan (the “Plan”) to purchase
the number of shares of the Company’s Stock indicated in your Grant Notice at
the exercise price indicated in your Grant Notice.  Defined terms not explicitly defined in this
Stock Option Agreement but defined in the Plan shall have the same definitions
as in the Plan.

 

The details of your Option are
as follows:

 

1.                                      VESTING.  Subject to the limitations
contained herein, your Option will vest as provided in your Grant Notice,
provided that vesting will cease upon the termination of your Service.

 

2.                                      NUMBER OF SHARES AND EXERCISE PRICE.  The
number of shares of Stock subject to your Option and your exercise price per
share referenced in your Grant Notice may be adjusted from time to time for
capitalization adjustments, as provided in Section 4.2 of the Plan.

 

3.                                      METHOD OF PAYMENT.  Payment
of the exercise price is due in full upon exercise of all or any part of your Option.  You may elect to make payment of the exercise
price in cash or by check or in any other manner permitted
by your Grant Notice, which may include one or more of the
following:

 

(a)                                  Provided that at the time of exercise the Stock
is publicly traded and quoted regularly in The Wall Street Journal,
by delivery of already-owned shares of Stock either that you have held for the
period required to avoid a charge to the Company’s reported earnings (generally
six months) or that you did not acquire, directly or indirectly from the
Company, that are owned free and clear of any liens, claims, encumbrances or
security interests, and that are valued at Fair Market Value on the date of
exercise.  “Delivery” for these purposes,
in the sole discretion of the Company at the time you exercise your Option,
shall include delivery to the Company of your attestation of ownership of such
shares of Stock in a form approved by the Company.  Notwithstanding the foregoing, you may not
exercise your Option by tender to the Company of Stock to the extent such
tender would violate the provisions of any law, regulation or agreement
restricting the redemption of the Company’s stock.

 

(b)                                  Provided that at the time of exercise the Stock
is publicly traded and quoted regularly in The Wall Street Journal,
you may exercise your vested shares in a Cashless Exercise transaction pursuant
to the Company’s electronic notice and exercise system by delivery (on a
form prescribed by the Company and the Company’s licensed securities broker) of

 

 

an
irrevocable direction to the Company’s licensed securities broker acceptable to
the Company to sell Stock and to deliver all or part of the sale proceeds to
the Company in payment of the aggregate Option price and any withholding taxes
(if approved in advance by the Compensation Committee of the Board if you are
either an executive officer or a director of the Company).

 

4.                                      TAX CONSEQUENCES.  This
Option is intended to have the tax status designated in the Grant Notice.

 

(a)                                  Incentive Stock Option.  If the Grant Notice so designates,
this Option is intended to be an Incentive Stock Option within the meaning of Section 422(b) of
the Code, but the Company does not represent or warrant that this Option
qualifies as such.  You should consult
with your own tax advisor regarding the tax effects of this Option and the
requirements necessary to obtain favorable income tax treatment under Section 422
of the Code, including, but not limited to, holding period requirements.  (NOTE: If the Option is exercised more than
three (3) months after the date on which you cease to be an Employee
(other than by reason of your death or permanent and total disability as
defined in Section 22(e)(3) of the Code), the Option will be treated
as a Nonstatutory Stock Option and not as an Incentive Stock Option to the
extent required by Section 422 of the Code.)

 

(b)                                  Nonstatutory Stock Option.  If the Grant Notice so designates, this
Option is intended to be a Nonstatutory Stock Option and shall not be treated
as an Incentive Stock Option within the meaning of Section 422(b) of
the Code.

 

(c)                                  ISO Fair Market Value Limitation.  If the Grant Notice designates this Option as
an Incentive Stock Option, then to the extent that the Option (together with
all Incentive Stock Options granted to you under all stock option plans of the
Company and any Affiliate, including the Plan) becomes exercisable for the
first time during any calendar year for shares having a Fair Market Value
greater than One Hundred Thousand Dollars ($100,000), the portion of such
options which exceeds such amount will be treated as Nonstatutory Stock
Options.  For purposes of this Section,
options designated as Incentive Stock Options are taken into account in the
order in which they were granted, and the Fair Market Value of Stock is determined
as of the time the option with respect to such Stock is granted.  If the Code is amended to provide for a
different limitation from that set forth in this Section, such different
limitation shall be deemed incorporated herein effective as of the date required
or permitted by such amendment to the Code. 
If the Option is treated as an Incentive Stock Option in part and as a
Nonstatutory Stock Option in part by reason of the limitation set forth in this
Section, you may designate which portion of such Option you are
exercising.  In the absence of such
designation, you shall be deemed to have exercised the Incentive Stock Option
portion of the Option first.  Separate
certificates representing each such portion shall be issued upon the exercise
of the Option.  (NOTE: If the aggregate
exercise price of the Option (that is, the exercise price multiplied by the
number of shares subject to the Option) plus the aggregate exercise price of
any other Incentive Stock Options you hold (whether granted pursuant to the
Plan or any other stock option plan of the Company or any Affiliate) is greater
than $100,000, you should contact the Chief Financial Officer of the Company to
ascertain whether the entire Option qualifies as an Incentive Stock Option.)

 

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5.                                      WHOLE SHARES; MINIMUM PURCHASE.  You may
exercise your Option only for whole shares of Stock.  Unless you exercise your Option with respect
to all shares then vested, or unless otherwise permitted by the Company, you
may exercise your Option only for at least one hundred (100)
shares on any exercise date.

 

6.                                      SECURITIES LAW COMPLIANCE. 
Notwithstanding anything to the contrary contained herein, you may not
exercise your Option unless the shares of Stock issuable upon such exercise are
then registered under the Securities Act or, if such shares of Stock are not
then so registered, the Company has determined that such exercise and issuance
would be exempt from the registration requirements of the Securities Act.  The exercise of your Option must also comply
with other applicable laws and regulations governing your Option, and you may
not exercise your Option if the Company determines that such exercise would not
be in material compliance with such laws and regulations.

 

7.                                      TERM.  The term of your Option
commences on the Date of Grant and expires upon the earliest
of the following:

 

(a)                                  in the sole discretion of the Board, immediately
upon the termination of your Service for Cause;

 

(b)                                  ninety (90) days after the termination of your Service
for any reason other than Cause, Disability or death, provided that if during
any part of such ninety (90) day period you may not exercise your Option solely
because of the condition set forth in the preceding paragraph relating to “Securities
Law Compliance,” your Option shall not expire until the earlier of the
Expiration Date or until it shall have been exercisable for an aggregate period
of thirty (30) days after the termination of your Service;

 

(c)                                  twelve (12) months after the termination of your Service
due to your Disability;

 

(d)                                  eighteen (18) months after your death if you die
either during your Service or within thirty (30) days after your Service
terminates for reason other than Cause;

 

(e)                                  the Expiration Date indicated in your Grant
Notice; or

 

(f)                                    the day immediately preceding the tenth (10th)
anniversary of the Date of Grant.

 

For purposes of your Option, “Cause” means that the
Board determines in good faith that you have engaged in misconduct, including
but not limited to:  (i) your
commission of any felony or any crime involving moral turpitude or dishonesty, (ii) your
participation in a fraud or act of dishonesty against or adversely affecting
the Company, or (iii) your intentional, material violation of any contract
between the Company and you, any statutory duty of yours to the Company or any
policy of the Company which you do not correct within thirty (30) days after
written notice to you thereof.  Your
physical or mental disability shall not constitute “Cause.”

 

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8.                                      EXERCISE.

 

(a)                                  You may exercise the vested portion of your Option
during its term by delivering a Notice of Exercise (in a form designated by the
Company) together with the exercise price to the Secretary of the Company, or
to such other person as the Company may designate, during regular business
hours, together with such additional documents as the Company may then
require.  However, your Option shall not
be exercisable at any time that the Company is investigating whether it has
grounds to terminate your Service for Cause.

 

(b)                                  By exercising your Option you agree that, as a
condition to any exercise of your Option, the Company may require you to enter
into an arrangement providing for the payment by you to the Company of any tax
withholding obligation of the Company arising by reason of (1) the
exercise of your Option, (2) the lapse of any substantial risk of
forfeiture to which the shares of Stock are subject at the time of exercise, or
(3) the disposition of shares of Stock acquired upon such exercise.

 

(c)                                  If your Option is an incentive stock Option, by
exercising your Option you agree that you will notify the Company in writing
within fifteen (15) days after the date of any disposition of any of the shares
of the Stock issued upon exercise of your Option that occurs within two (2) years
after the date of your Option grant or within one (1) year after such
shares of Stock are transferred upon exercise of your Option.

 

9.                                      TRANSFERABILITY.  Your Option is not transferable,
except by will or by the laws of descent and distribution, and is exercisable
during your life only by you. 
Notwithstanding the foregoing, by delivering written notice to the
Company, in a form satisfactory to the Company, you may designate a third party
who, in the event of your death, shall thereafter be entitled to exercise your Option.

 

10.                               OPTION NOT A SERVICE CONTRACT.  Your Option
is not an employment or service contract, and nothing in your Option shall be
deemed to create in any way whatsoever any obligation on your part to continue
in the employ of the Company or an Affiliate, or any obligation of the Company
or an Affiliate to continue your employment. 
In addition, nothing in your Option shall obligate the Company or an
Affiliate, their respective shareholders, Boards of Directors, Officers or
Employees to continue any relationship that you might have as a Director or
Consultant for the Company or an Affiliate.

 

11.                               WITHHOLDING OBLIGATIONS.

 

(a)                                  At the time you exercise your Option, in whole or
in part, or at any time thereafter as requested by the Company, you hereby
authorize withholding from payroll and any other amounts payable to you, and
otherwise agree to make adequate provision for (including by means of a Cashless
Exercise), any sums required to satisfy the federal, state, local and foreign
tax withholding obligations of the Company or an Affiliate, if any, which arise
in connection with your Option.

 

4

 

(b)                                  Upon your request and subject to approval by the
Company, in its sole discretion, and compliance with any applicable conditions
or restrictions of law, the Company may withhold from fully vested shares of Stock
otherwise issuable to you upon the exercise of your Option a number of whole
shares of Stock having a Fair Market Value, determined by the Company as of the
date of exercise, not in excess of the minimum amount of tax required to be
withheld by law.  If the date of
determination of any tax withholding obligation is deferred to a date later
than the date of exercise of your Option, share withholding pursuant to the
preceding sentence shall not be permitted unless you make a proper and timely
election under Section 83(b) of the Code, covering the aggregate
number of shares of Stock acquired upon such exercise with respect to which
such determination is otherwise deferred, to accelerate the determination of
such tax withholding obligation to the date of exercise of your Option.  Notwithstanding the filing of such election,
shares of Stock shall be withheld solely from fully vested shares of Stock
determined as of the date of exercise of your Option that are otherwise
issuable to you upon such exercise.  Any
adverse consequences to you arising in connection with such share withholding
procedure shall be your sole responsibility.

 

(c)                                  You may not exercise your Option unless the tax
withholding obligations of the Company and/or any Affiliate are satisfied.  Accordingly, you may not be able to exercise
your Option when desired even though your Option is vested, and the Company
shall have no obligation to issue a certificate for such shares of Stock or
release such shares of Stock from any escrow provided for herein.

 

12.                               NOTICES.  Any notices provided for in your
Option or the Plan shall be given in writing and shall be deemed effectively
given upon receipt or, in the case of notices delivered by mail by the Company
to you, five (5) days after deposit in the United States mail, postage
prepaid, addressed to you at the last address you provided to the Company.

 

13.                               GOVERNING PLAN DOCUMENT.  Your Option
is subject to all the provisions of the Plan, the provisions of which are
hereby made a part of your Option, and is further subject to all
interpretations, amendments, rules and regulations which may from time to
time be promulgated and adopted pursuant to the Plan.  In the event of any conflict between the
provisions of your Option and those of the Plan, the provisions of the Plan
shall control.

 

5<PAGE>

EXHIBIT 10.23.1

                              AMENDED AND RESTATED
                          MANAGEMENT SERVICES AGREEMENT

             THIS AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT (the
"Agreement"), is made and entered into on July 1, 2005 (the "Effective Date"),
by and between Sport Supply Group, Inc., a Delaware corporation ( "SSG"), and
Emerson Radio Corp., a Delaware corporation ("Emerson").

             WHEREAS, Emerson and SSG entered into a Management Services
Agreement on July 1, 1997 to be effective as of March 7, 1997 (such agreement,
as amended to date, is referred to herein as the "Original MSA").

             WHEREAS, pursuant to the Stock Purchase Agreement to be entered
into among Collegiate Pacific Inc., a Delaware corporation (the "Buyer"),
Emerson and Emerson Radio (Hong Kong) Limited (the "Stock Purchase Agreement"),
the Buyer will purchase from Emerson and Emerson Radio (Hong Kong) Limited all
shares of capital stock of SSG owned by Emerson and Emerson Radio (Hong Kong)
Limited (the "Shares").

             WHEREAS, it is a condition to the Buyer's purchase of the Shares
that SSG and Emerson enter into this Agreement to amend and restate the Original
MSA in its entirety.

         WHEREAS, Emerson and SSG desire to amend and restate the Original MSA
in its entirety with this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, SSG and Emerson hereby agree as
follows:

                                    ARTICLE I
                               MANAGEMENT SERVICES

                  1.1 SSG Responsibilities. Emerson and SSG hereby agree that,
         during the term of this Agreement, SSG will be responsible for
         providing Emerson with the following services:

                  (a) Process payroll and payroll taxes for Emerson's employees
         and assist Emerson by enrolling Emerson employees in Emerson's employee
         benefit plans, and process the payment of insurance premiums to
         Emerson's benefit providers so long as Emerson submits the correct
         amount of the premium to SSG on a timely basis (subject to SSG
         receiving from Emerson all of the necessary information, which is not
         in SSG's possession, custody or control, required to fulfill these
         functions) (collectively, "Human Resource Services"). Such Human
         Resource Services shall be performed on a timely basis in accordance
         with industry standards.

<PAGE>

                  (b) Process Emerson's accounts payables and process checks to
         be delivered, approved and signed by an officer of Emerson
         (collectively, the "Payable Services");

                  (c) Provide office space (subject to availability and in no
         event after the time SSG ceases to occupy the office space currently
         occupied by SSG at 1901 Diplomat Drive, Farmers Branch, Texas, in which
         event SSG shall provide Emerson with at least thirty (30) days prior
         written notice of vacating such space) for certain employees of Emerson
         at SSG's office located at 1901 Diplomat Drive, Farmers Branch, Texas
         75234, or such other mutually agreeable location (collectively, the
         "Office Space").

                  (d) Incorporate the EmersonRadio.com website into SSG's
         websites for hosting and fulfillment in accordance with the terms of
         Exhibit A attached hereto (collectively, the "Internet Services"); and

                  (e) Subject to the terms and provisions of an agreement
         between SSG and Amazon.com, support EmersonRadio.com products offered
         for sale on Amazon.com in accordance with the terms of Exhibit B
         attached hereto (collectively, the "Amazon Services").

      All of the services set forth in this Section 1.1 shall be collectively
referred to in this Agreement as the "SSG Services".

      Notwithstanding the foregoing, SSG will not be responsible for providing
any services to Emerson not expressly set forth herein, including, without
limitation, any legal or tax related services; provided, however, SSG will
provide the necessary data as reasonably requested by ADP to enable ADP to
prepare Emerson's payroll tax returns.

                  1.2 Emerson Responsibilities. Emerson and SSG hereby agree
that, during the term of this Agreement, Emerson will be responsible for
providing SSG with the following services consistent with past practices:

                  (a) Emerson will furnish to SSG all information and data, not
         in SSG's custody or control, reasonably necessary for SSG to provide
         the SSG Services, including, without limitation, all payroll files and
         employee payroll and other information that SSG may advise Emerson it
         requires to perform the SSG Services under this Agreement. SSG shall be
         entitled to rely upon the accuracy and completeness of all information
         that it reasonably believes to have been furnished to it by Emerson or
         at Emerson's direction, and shall have no duty to inquire about such
         information. SSG acknowledges no changes to Emerson's corporate payroll
         records will be made without the prior written consent of Emerson.

<PAGE>

                  (b) Calculate daily borrowing availability with respect to
         SSG's secured credit facility, prepare daily reporting for SSG's banks,
         prepare forecasts of cash availability and cash flow, wire funds and
         set-up letters of credit as may be requested by an officer of SSG, or
         an authorized agent of SSG for which Emerson receives notice of such
         authorization from an officer of SSG from time to time (collectively,
         the "Treasury Management Services").

                  (c) Emerson will provide record keeping and accounting
         services for Sport Supply Group Asia, Ltd., SSG's wholly-owned
         subsidiary ("SSG Asia").

                  (d) Emerson shall be solely responsible for resolving any
         dispute between Emerson and any employee of Emerson and answering any
         inquiries relating to an Emerson employee's rights and entitlements
         under Emerson's benefit plans. Emerson is solely responsible for the
         administration of its benefit plans (including, without limitation, its
         401(k) Plan ) and executing and filing with any governmental authority
         or other person all reports or other documents required in connection
         with such benefit plans, and SSG shall have no reporting obligation in
         connection with any aspect of Emerson's benefit plans. In addition, SSG
         shall not be deemed a fiduciary or plan administrator of Emerson or any
         of Emerson's benefit plans and shall not have any responsibility to
         monitor compliance by Emerson with the terms and conditions of any
         benefit plan or any law applicable thereto.

All of the services set forth in this Section 1.2 shall be collectively referred
to in this Agreement as the "Emerson Services".

         1.3 Cooperation. Each party hereto shall cooperate with the other party
by, among other things, making available, as reasonably requested by the
requesting party, management decisions, personnel information, approvals and
acceptances in order that the work of each party contemplated hereby may be
accomplished.

         1.4 Insurance. SSG will not be liable to Emerson or any of the
employees or contractors of Emerson for damage or loss to person or property,
including theft, burglary, assault, vandalism or other crimes, unless such
damage or loss is caused by the gross negligence or willful misconduct of SSG.
SSG will not be liable to Emerson or any of its employees or contractors for
personal injury or for damage to or loss of their personal property from fire,
flood, water leaks, rain, hail, ice, snow, smoke, lightning, wind, explosions,
strike, war, riot, terrorism, insurrection, interruption of utilities or other
occurrences unless such injury, loss or damage is caused by the gross negligence
or willful misconduct of SSG. Emerson acknowledges that none of the Office Space
is fireproof. Emerson is strongly urged to secure its own insurance to protect
against all of the above. Emerson agrees to carry appropriate insurance for
inventory and other property stored at the Office Space.

<PAGE>

         1.5 Permissible Activities. Nothing herein shall in any way preclude
Emerson or SSG from engaging in any business activities or from performing
services for its own account or for the account of others.

                                   ARTICLE II

                                  COMPENSATION

         2.1 SSG Service Charges. Emerson and SSG hereby agree that, effective
July 1, 2005 (except as otherwise noted) SSG will be compensated at the initial
rates set forth below for the services rendered by SSG to Emerson pursuant to
this Agreement:

         Services                   Amount in U.S. Dollars
         --------                   ----------------------

         Human Resource Services    $3,333 per month
         Payable Services           $1,000 per month
         Office Space               $5.00 per square foot
         Internet Services          See Exhibit A attached hereto
         Amazon Services            See Exhibit B attached hereto

The amount of such service charges may be adjusted from time to time by the
parties' mutual written agreement. Such service charges shall be payable within
thirty (30) days of the date an invoice is received. Partial months shall be
prorated accordingly. Emerson will also be responsible for paying all of SSG's
out-of-pocket expenses related to the above services , such as postage,
telephone and telecopy bills, telephone lines, office supplies, transition
services, etc. The payment of any expenses incurred by SSG on Emerson's behalf
in excess of $1,000 requires Emerson's written consent.

<PAGE>

         2.2 Emerson Service Charges. Emerson and SSG hereby agree that,
effective July 1, 2005 Emerson will be compensated at the initial rates set
forth below for the services rendered by Emerson to SSG pursuant to this
Agreement:

         Services                           Amount in U.S. Dollars
         --------                           ----------------------

         SSG Asia                                $$834 per month
         Treasury Management Services            $2,450 per month

The amount of such service charges may be adjusted from time to time by the
parties' mutual written agreement. Such service charges shall be payable within
thirty (30) days of the date an invoice is received. Partial months shall be
prorated accordingly. SSG will also be responsible for paying all of Emerson's
out-of-pocket expenses related to the above services, such as postage, telephone
and telecopy bills, telephone lines, office supplies, transition services, etc.
The payment of any expenses incurred by Emerson on SSG's behalf in excess of
$1,000 requires SSG's written consent.

<PAGE>

                                   ARTICLE III

                              TERM AND TERMINATION

         3.1 Term. Subject to the right of termination in Section 3.3 and
Section 3.4, SSG shall provide the Human Resource Services, Payable Services and
Office Space and Emerson shall provide the Treasury Management Services
(collectively the "Transition Services") for a transition period beginning on
the Effective Date for a period of up to 120 days or such longer period as
Emerson and SSG may mutually agree (the "Transition Date") in order to
facilitate the parties' transition of the Transition Services to another
provider. Emerson and SSG have the right to direct that any or all of the
Transition Services being provided to it by the other party be terminated prior
to the Transition Date. With respect to all other SSG Services and Emerson
Services, this Agreement shall become effective as of the Effective Date and
shall continue in force until terminated pursuant to the terms of this Agreement
or otherwise agreed by the parties.

         3.2 Termination. Subject to the provisions of Section 3.1 hereof, all
services under this Agreement, other than Transition Services, may be terminated
by either party on sixty (60) days' prior written notice to the other party.

         3.3 Termination for Nonpayment. Notwithstanding Section 3.1 or Section
3.2 hereof, in the event that either party defaults in the payment when due of
any amount due to the other hereunder and does not cure such default within ten
(10) days after being given written notice of such default, then the
non-defaulting party may, by giving written notice thereof to the defaulting
party, terminate this Agreement as of the date specified in such notice of
termination.

         3.4 Termination for Insolvency. Notwithstanding Section 3.1 or Section
3.2 hereof, in the event that either party hereto becomes or is declared
insolvent or bankrupt, is the subject of any proceedings relating to its
liquidation, insolvency or for the appointment of a receiver or similar office
for it, makes an assignment for the benefit of all or substantially all of its
creditors, or enters into an agreement for the composition, extension, or
readjustment of all or substantially all of its obligations, then the other
party hereto may, by giving written notice thereof to such party, terminate this
Agreement as of the date specified in such notice of termination.

         3.5 Return of Records. Upon the termination of this Agreement for any
reason, SSG shall promptly return to Emerson all books, records, documents,
information and data (including data stored in computers or on any computer
media or equipment), including all copies of the foregoing, that belong to
Emerson and Emerson shall promptly return to SSG all books, records, documents,
information and data (including data stored in computers or on any computer
media or equipment), including all copies of the foregoing, that belong to SSG.

<PAGE>

                                   ARTICLE IV

                               GENERAL PROVISIONS

         4.1 Confidentiality. Each party agrees that all information
communicated to it by the other, whether before or after the Effective Date, was
and shall be received in strict confidence and shall be used only for the
purposes of this Agreement, and that no such information, including, without
limitation, the provisions of this Agreement, shall be disclosed or otherwise
used by a party to this Agreement or its security holders, directors, officers,
employees, or agents, without the prior written consent of the other party,
except as may be necessary by reason of legal, accounting or regulatory
requirements. The requirements and obligations of this Section 4.1 shall survive
the termination of this Agreement.

         4.2      Indemnification.

               (a) SSG agrees to indemnify, defend and hold harmless Emerson and
         its affiliates and their respective directors, officers, agents,
         employees and controlling persons from and against any and all losses,
         claims, damages, liabilities and expenses (including the reasonable
         cost of investigating and defending against any claims therefor and
         reasonable counsel fees and expenses incurred in connection therewith)
         that resulted solely from the willful bad faith or gross negligence of
         SSG in the performance of the SSG Services that are the subject of this
         Agreement. No express or implied warranty is made by SSG in respect to
         any SSG Service or product provided hereunder including, without
         limitation, any implied warranty or merchantibility or fitness for a
         particular purpose.

               (b) Emerson agrees to indemnify, defend and hold harmless SSG and
         its affiliates and their respective directors, officers, agents,
         employees and controlling persons from and against any and all losses,
         claims, damages, liabilities and expenses (including the reasonable
         cost of investigating and defending against any claims therefor and
         reasonable counsel fees and expenses incurred in connection therewith)
         (i) that resulted solely from the willful bad faith or gross negligence
         of Emerson in the performance of the Emerson Services that are the
         subject of this Agreement or (ii) related to or arising out of SSG's
         use of Emerson's Brand Names and Marks, as described in Section 4.15
         below). No express or implied warranty is made by Emerson in respect to
         any Emerson Service or product provided hereunder including, without
         limitation, any implied warranty or merchantibility or fitness for a
         particular purpose.

               (c) IN NO EVENT WILL EITHER PARTY BE LIABLE FOR PUNITIVE DAMAGES
         OR FOR INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT
         LIMITATION, LOST PROFITS OF ANY PARTY, INCLUDING THIRD PARTIES.
         FURTHER, NO CAUSE OF ACTION WHICH ACCRUED MORE THAN ONE (1) YEAR PRIOR
         TO THE FILING OF A SUIT ALLEGING SUCH CAUSE OF ACTION MAY BE ASSERTED
         AGAINST EITHER PARTY.

<PAGE>

      4.3 Relationship of Parties. It is the express intention and understanding
of SSG and Emerson that the relationship of SSG and Emerson shall be at all
times that of an independent contractor, with each party having full and
complete liberty to use its own free and uncontrolled will, judgment and
discretion as to the method and manner of performing the obligations of such
party hereunder. Other than the SSG Services specifically stated herein to be
performed by SSG, SSG does not undertake by this Agreement or otherwise to
perform any regulatory or contractual obligation of Emerson, or to assume any
responsibility for Emerson's business or operations. Other than the Emerson
Services specifically stated herein to be performed by Emerson, Emerson does not
undertake by this Agreement or otherwise to perform any regulatory or
contractual obligation of SSG, or to assume any responsibility for SSG's
business or operations. Nothing herein contained or done pursuant to this
Agreement shall constitute SSG or its agents or employees a partner or joint
venturer of Emerson, or a fiduciary of (i) Emerson, (ii) any benefit plan of
Emerson, or (iii) any employee of Emerson. Nothing herein contained or done
pursuant to this Agreement shall constitute Emerson or its agents or employees a
partner or joint venturer of SSG, or a fiduciary of (i) SSG, (ii) any benefit
plan of SSG, or (iii) any employee of SSG.

      4.4 Notices. All notices that are required or may be given pursuant to the
terms of this Agreement shall be in writing and shall be sufficient in all
respects if given in writing and delivered personally, by commercial messenger
service, or by registered or certified mail, postage prepaid, to the other party
at the following address or to such other address as either party shall provide
to the other party in writing in accordance with this Section 4.4:

      If to SSG:                            If to Emerson:

      Sport Supply Group, Inc.              Emerson Radio Corp.
      1901 Diplomat Drive                   Nine Entin Road
      Farmers Branch, Texas 75234           Parsippany, New Jersey 07054
      Attn:  Chief Executive Officer        Attn:  Chief Executive Officer

      cc:  General Counsel                  cc:  Law Department

      4.5 Attorneys' Fees. In the event that attorneys' fees or other costs are
incurred to secure performance of any of the obligations set forth in this
Agreement, to establish damages for the breach thereof, or to obtain any other
appropriate relief, whether by way or prosecution or defense, the prevailing
party (as determined by the judge in the judge's sole discretion) shall be
entitled to recover reasonable attorneys' fees and costs incurred therein.

<PAGE>

      4.6 Counterparts. This Agreement may be executed in one or more
counterparts for the convenience of the parties hereto, all of which together
shall constitute one and the same instrument.

      4.7 Binding Agreement; Assignment. This Agreement shall be binding on, and
inure to the benefit of, the parties hereto and their respective
representatives, successors, and assigns, but neither this Agreement nor any of
the rights, interests, or obligations hereunder shall be assigned or delegated
by any of the parties hereto, whether by operation of law or otherwise, without
the prior written consent of the other party (which consent shall not be
unreasonably withheld), nor is this Agreement intended to confer upon any other
person other than the parties hereto any rights or remedies hereunder. Any
assignment or delegation in violation of this Agreement shall be null and void.

      4.8 Waiver. No delay on the part of either party in exercising any of its
respective rights hereunder, nor the failure to exercise the same, nor the
acquiescence in or waiver of a breach of any term, provision or condition of
this Agreement shall be deemed or construed to operate as a waiver of such
rights or acquiescence thereto except in the specific instance for which given.

      4.9 Severability. If any provision of this Agreement is declared or found
to be illegal, unenforceable or void, then each party will be relieved of its
obligations arising under such provision to the extent such provision is
declared or found to be illegal, unenforceable or void (it being the intent and
agreement of the parties that this Agreement shall be deemed amended by
modifying such provision to the extent necessary to make it legal and
enforceable while preserving its intent or, if that is not possible, by
substituting therefor another provision that is legal and enforceable and
achieves the same objective), and each provision not so affected will be
enforced to the full extent permitted by law.

      4.10 Entire Agreement. This Agreement (and the exhibits attached hereto)
contains the entire understanding of the parties relating to the subject matter
of this Agreement and supersedes all prior written or oral and all
contemporaneous oral agreements and understandings relating to such subject
matter. This Agreement cannot be modified, amended or terminated except in
writing signed by the party against whom enforcement is sought.

      4.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE SUBSTANTIVE LAWS OF THE STATE OF TEXAS
WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAWS PRINCIPLE OR RULE THAT MIGHT
REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. EACH PARTY AGREES
THAT THIS AGREEMENT IS FULLY PERFORMABLE IN DALLAS COUNTY, TEXAS, AND THAT ANY
ACTION, DISPUTE OR PROCEEDING ARISING OUT OF OR RELATED IN ANY WAY TO THE
SUBJECT MATTER OF THIS AGREEMENT SHALL BE BROUGHT SOLELY IN A COURT OF COMPETENT
JURISDICTION SITTING IN DALLAS, DALLAS COUNTY, TEXAS. EACH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO THE JURISDICTION OF ANY SUCH COURT
AND HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF ANY ACTION OR PROCEEDING AND ANY RIGHT OF
JURISDICTION ON ACCOUNT OF THE PLACE OF RESIDENCE OR DOMICILE OF ANY PARTY
THERETO.

<PAGE>

      4.12 Other Documents. Each party hereto agrees to execute any and all
documents, and to perform such other acts, that may be necessary or expedient to
further the purposes of this Agreement.

      4.13 Force Majeure. Each party hereto shall be excused from performance
hereunder for any period and to the extent that it is prevented from performing
any services pursuant hereto, in whole or in part, as a result of delays caused
by the other party or by an act of God, war, civil disturbance, court order,
labor dispute, third party nonperformance, or other cause beyond its reasonable
control, including without limitation failures or fluctuations in electrical
power, heat, light, air conditioning or telecommunications equipment, and such
nonperformance shall not be a default hereunder or a ground for termination
hereof. Notwithstanding the foregoing, in the event such condition exists
greater than thirty (30) days, either party may terminate this Agreement by
giving the other party written notice of termination, which termination shall be
effective as of the date set forth in such notice.

         4.14 Headings. The section headings used herein are for reference and
convenience only, and shall not enter into the interpretation hereof.

         4.15 Trademarks. SSG shall use its own name or trademarks in all
dealings. It may not use any trademarks or tradenames or rights to use same
belonging to Emerson and/or its subsidiaries or affiliates (other than SSG's)
without Emerson's prior written consent in each instance. To the extent Emerson
gives such consent, SSG may use such trademarks and "EMERSON" brand and product
names and such other brand name(s) under which the products may hereinafter be
marketed in the United States or on the world wide web by Emerson and/or its
subsidiaries or affiliates (other than SSG's) (collectively, the "Brand Names
and Marks") only in connection with the performance of the SSG Services. Emerson
may withdraw such consent at any time. Thereafter, except as provided below, no
advertising or other use of the Brand Names and Marks may be made by SSG without
Emerson's prior written approval in each instance. All use of the Brand Names
and Marks and all goodwill associated therewith shall inure to the benefit of
Emerson. SSG shall have no interest in or rights to the Brand Names or Marks or
any of them nor shall SSG have or accrue any interest in or to the goodwill
associated therewith. Upon expiration or earlier termination of this Agreement,
SSG shall discontinue all use of the Brand Names or Marks in advertising or
otherwise, and shall remove all signs and displays relating thereto and shall
return to the Emerson at Emerson's expense, all signs, displays and other
writings and materials relating thereto; provided, however, the foregoing does
not apply to any advertising in the process of being printed or in inventory
that also includes SSG's products (including, without limitation, catalogs). SSG
is not and this Agreement does not constitute SSG as being a holder of a license
or permitted to use the Brand Names or Marks nor shall this Agreement be deemed
to make SSG a franchisee.

<PAGE>

         Emerson shall use its own name or trademarks in all dealings. It may
not use any trademarks or tradenames or rights to use same belonging to SSG
and/or its subsidiaries or affiliates (other than Emerson's) without the SSG's
prior written consent in each instance.

         4.16 No Third Party Beneficiaries. This Agreement and the rights and
obligations hereunder do not and shall not confer any rights to any third
parties and no third parties shall have any rights under this Agreement.

         4.17 Survival. Paragraphs 2.1, 2.2, 3.5, 4.1, 4.2, 4.4, 4.5, 4.11,
4.15, and 4.16 shall survive the expiration or earlier termination of this
Agreement.

         4.18 Waiver of Claims Under Original MSA. Emerson and SSG hereby waive
any and all prior breaches or defaults of any term, provision or condition of
the Original MSA by the other party.

<PAGE>

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

                                   SSG:

                                   SPORT SUPPLY GROUP, INC.

                                   By:  /s/ TM Babilla
                                        --------------
                                   Name: Terrence M. Babilla
                                         -------------------
                                   Title: COO
                                          ---

                                   EMERSON:

                                   EMERSON RADIO CORP.

                                   By: /s/ Elizabeth J. Calianese
                                       --------------------------
                                   Name: Elizabeth J. Calianese
                                         ----------------------
                                   Title: SVP-HR, Corp. Sec.
                                          ------------------

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