Document:

Exhibit 10.09

 

NON-COMPETE
AND SEVERANCE AGREEMENT

 

This Non-Compete and Severance Agreement (“Agreement”)
is entered into this      day of                   ,
                 ,
by and between KP SPORTS, INC. dba UNDER
ARMOUR PERFORMANCE APPAREL (“Under Armour” or the “Company”) and                          (“Employee”).

 

EXPLANATORY
NOTE

 

The Employee recognizes that the Employee
will have access to confidential proprietary information during the course of
his or her employment and that the Employee’s subsequent employment by a
competitor would inevitably result in the disclosure of that information and,
thereby, create unfair competition and would likely to cause substantial loss
and harm to the Company.  The Employee
further acknowledges that his/her employment with the Company is based on the
Employee’s agreement to abide by the covenants contained herein.  Additionally, the Company desires to
recognize the service of the Employee to the Company by providing certain
economic benefits to the Employee upon the occurrence of certain events.

 

NOW THEREFORE, for good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged,
the parties agree as follows:

 

1.                                       Non-Competition.   In exchange for Employee’s continued
employment with the Company, the Employee agrees that during the term of
Employee’s employment with Under Armour and for a period of two (2) months
after the termination of Employee’s employment with the Company, (the “Non-Compete
Period”), the Employee will not compete, directly or indirectly, either as
proprietor, stockholder, partner, officer, employee or otherwise, with Under
Armour by engaging within any geographic area in which Under Armour does or
plans to do business while Employee was employed with Under Armour (including,
but not limited to, the United States, Canada and Japan) in the business of
developing, producing, marketing, or selling products or performing services
similar to those distributed, sold or provided by Under Armour at any time
during the two (2) years preceding the Employee’s termination of
employment and throughout the end of the Non-Compete Period.

 

2.                                      Severance
Payments.  In the event the
Employee’s employment with the Company is terminated by the Company without
Cause (as defined below), and upon execution of a Separation Agreement
substantially in the form of Exhibit A attached hereto (the “Separation
Agreement”), the Employee will be entitled to receive severance payments during
the Non-Compete Period, as set forth in the Separation Agreement.  For purposes of this Agreement, “Cause” for
termination shall be deemed to exist upon a good faith finding by the Company
of (1) an inability of the Employee, through sickness or other incapacity,
except for leave qualified under the Federal Family and Medical Leave Act of
1993, to perform his duties under this Agreement for a period in excess of one
hundred and twenty (120) substantially consecutive days; (2) an action or
failure to act by the Employee constituting fraud, misappropriation or
intentional damage to the property or business of the Company; the commission
of an act of

 

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deliberate and material
dishonesty; the commission of a crime involving an act of moral turpitude or
constituting a felony, or causing the Company to commit such a crime; (3) insubordination,
misconduct, gross negligence, drunkenness or illicit drug use while acting in
his/her capacity as an employee of the Company; (4) a material breach of
this Agreement or the Business Protection Agreement between the Employee and
the Company, dated as of the date hereof (the “Business Protection Agreement”);
(5) the failure of the Employee for any reason to comply with instructions
or other action or omission to act, or violation of the Company’s policies by
the Employee which has or is likely to have a significant adverse effect upon
the Company’s business operations; or (6) the failure of the Employee to
perform his assigned duties for the Company.

 

3.                                      At Will Employment.  Anything contained herein to the contrary
notwithstanding, the Employee hereby acknowledges and agrees that that he/she
is employed by the Company on an at-will basis, and that the Company shall have
the right to terminate the employment of the Employee as an employee at anytime,
with or without cause.

 

4.                                      Survival of
Obligations.  The Employee’s
obligations under Section 1 of this Agreement and under the Business
Protection Agreement shall survive regardless of whether the Employee’s
employment is terminated by the Company with or without Cause, or the Employee
terminates his or her employment, and regardless of whether the Employee
executes the Separation Agreement.

 

5.                                      Company’s Remedies for Breach.  The parties stipulate that a violation by the
Employee of the non-competition covenant would cause irreparable injury to the
Company and, further, that there is no adequate remedy at law for such
violation.  Therefore, the Company shall
have the right, in addition to any other remedies available at law or in
equity, to seek to enjoin the Employee from violating said covenant.

 

6.                                      Amendments and Termination; Entire Agreement.  This Agreement may not be amended or
terminated except by a writing executed by all the parties hereto.  The Business Protection Agreement shall
survive the termination of this Agreement. 
This Agreement constitutes the entire agreement of the Company and the
Employee relating to the subject matter hereof and supersedes all prior oral
and written understandings and agreements relating to such subject matter.

 

7.                                      Governing Laws and Forum.  This Agreement shall be governed by,
construed, and enforced in accordance with the laws of the State of Maryland,
without regard to any conflicts of law principle that would apply the law of
another jurisdiction.  The parties hereto
further agree that any action brought to enforce any right or obligation under
this Agreement shall be subject to the exclusive jurisdiction and venue of the
state or federal courts located in Maryland.

 

8.                                      Disputes.  The parties mutually waive the right to a
jury trial with respect to any claims related to or arising out of this
Agreement.

 

2

 

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

 

	
   

  	
  KP Sports, Inc. dba Under Armour Performance Apparel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Kevin Plank, President

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

3

 

EXHIBIT A

 

SEPARATION
AGREEMENT

 

This SEPARATION AGREEMENT (“Agreement”) is
entered into this        day of                 ,
200  , by and between KP SPORTS,
INC. dba UNDER ARMOUR PERFORMANCE APPAREL (“Under Armour” or the “Company”)
and                      
(“Employee”).

 

The Employee and the Company are parties to a
Non-Compete and Severance Agreement dated as of January 5, 2004, which
provides for the payment by the Company to the Employee of certain economic
befits upon the occurrence of certain events. 
The Employee’s employment with the Company has been terminated effective
                                 ,
200  , and this Agreement sets forth the understandings and
agreements of Employee and the Company.

 

NOW, THEREFORE, in consideration of the
covenants and agreements contained herein, the receipt and adequacy of which
are hereby acknowledged, it is agreed as follows:

 

1.                                      Severance Payments.  The Company agrees to pay to the Employee,
for a period of two (2) months after such termination, an amount equal to
the Employee’s salary as of the date of the Employee’s termination (the “Termination
Salary”) at the time and in accordance with the method for payment of salaries
to employees.

 

2.                                      Extension of Non-Compete Period.  The Company, at its option, may extend the
Non-Compete Period (as defined in the Non-Compete and Severance Agreement) for
an additional period of up to eighteen (18) months from the date of termination
of Employee’s employment (the “Additional Non-Compete Period”), upon written
notice given to Employee within thirty (30) days following the date of
termination of Employee’s employment, provided that the Company undertakes to
pay to the Employee the Termination Salary through the end of the Additional
Non-Compete Period.

 

3.                                      Offset and Withholding.  Any and all amounts payable to the Employee
hereunder shall be subject to and offset by any amounts payable by the Employee
to the Company for any reason.  Employee
hereby authorizes the Company to deduct any and all such amounts from all sums
payable by the Company to the Employee for any reason.

 

4.                                      Compliance with Agreements.   The
Employee’s right to receive the moneys payable to the Employee under this
Agreement is expressly conditioned upon the Employee’s satisfying his
obligations under this Agreement, the Non-Compete and Severance Agreement and
the Business Protection Agreements he/she executed on                       ,
200  .

 

5.                                      General Release.  Employee releases and discharges the Company
and its officers, directors, employees and agents from all claims, rights,
charges and/or causes of action (hereinafter referred to as “claims”) which he
had, now has or hereafter may have arising out of or related to his employment
with the Company, the

 

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termination of his employment,
and/or any other matter through the date this Agreement is signed, including
but not limited to, claims under all other employment discrimination laws, tort
claims, contract claims, and claims under all federal, state and local laws,
but excluding claims under the Age Discrimination in Employment Act of 1967, as
amended.  Employee confirms that the
consideration provided under this Agreement is in addition to that to which he
was already entitled.  Employee
voluntarily agrees to accept the consideration set forth in Section 1 of
this Agreement in full accord and satisfaction of all claims.  This release is agreed to without reliance
upon any statement or representation. 
Employee agrees that he or she will not file or maintain any suit (or
otherwise seek or accept any compensation or benefits in any non-judicial
forum) arising out of or related to the matters released.

 

6.                                      Company’s
Remedies for Breach.  The parties
stipulate that in the event the Company extends the Non-Compete Period, a
violation by the Employee of the non-competition covenant would cause
irreparable injury to the Company and, further, that there is no adequate
remedy at law for such violation. 
Therefore, the Company shall have the right, in addition to any other
remedies available at law or in equity, to seek to enjoin the Employee from
violating said covenant.  In the event
the Employee breaches any commitment made in this Agreement, then in addition
to any other rights the Company may have: (a) Employee agrees that no
further payments under this Agreement shall be due and the Company shall have
the right to recover any amounts paid under Sections 1 and 2 of this Agreement,
and (b) Employee shall pay the Company’s reasonable attorney’s fees and
other costs incurred by the Corporation in connection with the breach, or a
threatened breach, including, but not limited to, seeking to recover such
payments and/or to obtain injunctive relief with respect to the breach or any
subsequent breach.

 

7.                                      Amendments and Termination; Entire Agreement.  The Company has not made any representation
or promise except as expressly set forth in this Agreement.  This Agreement may not be amended or
terminated except by a writing executed by all the parties hereto.  Both the Business Protection Agreement and
the Non-Compete and Severance Agreement shall survive the termination of this
Agreement.  This Agreement constitutes
the entire agreement of the Company and the Employee relating to the subject
matter hereof and supersedes all prior oral and written understandings and agreements
relating to such subject matter.

 

8.                                      Severability.  If any provision of this Agreement is
determined to be invalid or unenforceable, the parties agree that the invalid
or unenforceable provision shall be modified to the minimum extent necessary so
that the rights and obligations of the parties under the Agreement are
preserved to the fullest extent permitted by law, and the remainder of this
Agreement, or the application of such provision to persons or circumstances
other than those to which it is held to be invalid or unenforceable, shall not
be affected thereby.

 

9.                                      Governing Laws and Forum.  This Agreement shall be governed by,
construed, and enforced in accordance with the laws of the State of Maryland,
without regard to any conflicts of law principle that would apply

 

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the law of another
jurisdiction.  The parties hereto further
agree that any action brought to enforce any right or obligation under this
Agreement shall be subject to the exclusive jurisdiction and venue of the state
or federal courts located in Maryland.

 

10.                               Disputes.  The parties mutually waive the right to a
jury trial with respect to any claims related to or arising out of this
Agreement.

 

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

 

	
   

  	
  KP Sports, Inc. dba Under Armour Performance Apparel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Kevin Plank, President

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee

  

 

4Exhibit 10.10

 

BUSINESS
PROTECTION AGREEMENT

 

THIS
BUSINESS PROTECTION AGREEMENT (“Agreement”) is entered into
this       day of              ,
20   , by and between KP SPORTS, INC. dba UNDER
ARMOUR PERFORMANCE APPAREL (“Under Armour” or the “Company”) and                              
(“Employee”).

 

WHEREAS,
the Employee acknowledges that, due to the nature of the Employee’s
relationship with Under Armour and its affiliates, the Employee will have
access to and will acquire, and may assist in developing confidential and
proprietary information relating to the business and operations of Under Armour
and its affiliates; and the Employee acknowledges that such information will be
of central importance to the business of Under Armour and its affiliates, and that
disclosure of any such information to, or its use by, others could cause
substantial harm or loss to Under Armour and to its affiliates; the Employee
and Under Armour also recognize that an important part of the Employee’s duties
will be to develop good will for Under Armour and its affiliates through
personal contact with others having business relationships with Under Armour
and its affiliates, and that there is a danger that this good will, a
proprietary asset of Under Armour and its affiliates, may be damaged if and
when the Employee’s relationship with Under Armour is terminated; the Employee
further acknowledges that his/her continued employment with Under Armour is
based on the Employee’s agreement to abide by the covenants contained herein.

 

NOW, THEREFORE,
for good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties agree as follows:

 

1.                                       Confidential Information.  Employee acknowledges and agrees that the
Employee’s relationship with Under Armour shall of necessity, provide the
Employee with specialized knowledge concerning Under Armour, which, if used for
the benefit of others or disclosed to others could cause serious harm to Under
Armour.  Accordingly, the Employee
covenants that the Employee shall not at any time, directly or indirectly, use,
disclose to others, or permit the use by or disclosure to others of, any
Confidential Information (as hereinafter defined) without the written consent
of the President of Under Armour and except as expressly provided herein.  While engaged as an employee of Under Armour,
the Employee may use Confidential Information only for the purpose that is
necessary to the carrying out of the Employee’s duties as set forth herein or
assigned to him by the Company, and the Employee may not make use of any
Confidential Information after he is no longer an employee of the Company.

 

“Confidential
Information” means all confidential and/or proprietary information and trade
secrets, whether oral, written, computerized, digitized or otherwise, regarding
Under Armour and its
business, including, without limiting the generality of the foregoing,
information regarding Under Armour’s
intellectual property and technology (whether owned or licensed), patents and
patent applications, research and development, inventions, systems, system
configurations, equipment, software, programs, Internet and website matters,
engineering data and specifications, technical knowledge, know-how, techniques,
manuals, look and feel, products, sales and marketing, costs, prices, earnings,
business plans, financial information and forecasts, customer lists, prospects,
contracts, business

 

1

 

arrangements,
operating policies and procedures, methods of operation and business
strategies, regardless of whether or not such information is deemed “trade
secrets” under Maryland law.  Confidential
Information also includes the names and addresses of Under Armour’s employees
and other information that is unavailable from directories or other public
sources.  Confidential Information does
not include information that (i) becomes generally available to the public
other than as a result of disclosure by the Employee in violation of this
Agreement, or (ii) is required to be disclosed by legal process or
applicable law.

 

2.                                       Solicitation of Customers.  Unless waived in writing by Under Armour,
Employee agrees that he/she will not, directly or indirectly, during the term
of Employee’s employment with Under Armour and for an additional period of one (1) year
thereafter, directly or indirectly, voluntarily or involuntarily, either as
proprietor, stockholder, partner, officer, employee or otherwise, aid, solicit
or endeavor to solicit or accept any business from, or do any work relating to
previously identified potential customers or for any customers who during the
twelve (12) months immediately preceding the cessation of Employee’s employment
had been customers of Under Armour, or disclose to any person or business
entity of any kind the names or address of any such customers or potential
customers; or directly or indirectly request, suggest or encourage any such
customers or potential customers to withdraw or cancel any of their business or
refuse to continue to do business with Under Armour.  Nothing herein shall prevent Employee from
soliciting, accepting business from or doing work for a former customer of
Under Armour with respect to services which do not compete with the services
offered by Under Armour as of the date of the cessation of employment.

 

3.                                       Solicitation of Employees.  Employee agrees that he will not, during the
term of his/her employment with Under Armour and for a period of one (1) year
following the termination of his employment (“Restricted Period”), either
voluntarily or involuntarily, for any reason whatsoever, directly or
indirectly, individually or on behalf of persons not now parties to this
Agreement, aid or endeavor to solicit, employ, or engage any person who is, or
who was at any time during the Restricted Period, an employee, consultant or
representative of Under Armour, or encourage or induce such person to leave
their employment or service with Under Armour in order to accept employment of
any kind with any other person, firm, partnership or corporation with which
Employee is or may become associated. 
Establishing the precise amount of damages for breach of this provision
might be difficult.  For that reason, in
the event of a breach of this Subsection 3, for each person about whom the
Employee has provided information or directly solicited in violation of this
provision, liquidated damages for such violation shall be the amount of the
annual salary of that person at the Company.

 

4.                                       Required Modification.  The parties agree that to the extent that any
provision or portion of Sections 2 and 3 of this Agreement shall be held, found
or deemed to be unreasonable, unlawful or unenforceable by a court of competent
jurisdiction, then any such provision or portion thereof shall be deemed to be
modified to the extent necessary in order that any such provision or portion
thereof shall be legally enforceable to the fullest extent permitted by

 

2

 

applicable law; and the
parties further agree that any court of competent jurisdiction shall, and the
parties hereby expressly authorize, request and empower any court of competent
jurisdiction to, enforce any such provision or portion thereof in order that
any such provision or portion thereof shall be enforced by such court to the
fullest extent permitted by applicable law.

 

5.                                       Acknowledgements.  Employee hereby acknowledges and agrees that
the restrictions contained in Sections 2 through 4 hereof regarding
geographical scope, length of term and types of activities restricted are
reasonable; and the Employee has no intention of competing with the Company
within such limitations.

 

6.                                       Inventions, Works and Intellectual Property.

 

(a)                                  Inventions
and Works.  The Employee acknowledges
and agrees that all inventions, software, prototypes, discoveries,
developments, derivatives, and improvements (“Inventions”) and all works of
original authorship or images that are fixed in any tangible medium of
expression and all copies thereof (“Works”), whether or not copyrightable,
patentable, protectable as trademarks, or otherwise protectable as a mask work,
including but not limited to processes, methods, formulas and techniques, as
well as improvements thereof and know-how related thereto, names, designs or
logos, which are designed, created or developed by the Employee, solely or in
conjunction with others, during the period of employment and related to or used
or useable in connection with the business of Under Armour, whether or not
developed on Under Armour premises or during normal Under Armour’s business
hours, and all Confidential Information relating thereto (collectively, with
the Inventions and Works, the “Intellectual Property”), are made and conceived
for the benefit of Under Armour and are the exclusive property of Under Armour.

 

(b)                                 Assignment
of Inventions; Works for Hire.  The
Employee hereby assigns to Under Armour (or its nominee) any and all interest
that he has now, or may have in the future, in any Intellectual Property, and
upon request shall execute documents to further evidence such assignment.  To the extent Works are deemed Works Made for
Hire as defined and used in the Copyright Act of 1976, 17 U.S.C. § 1 et seq., the Employee recognizes and acknowledges that Works
shall be done as “works made for hire”. 
The Employee shall promptly notify Under Armour or its nominee upon the
design, creation or development of any and all Inventions and Works.  At Under Armour’s request, the Employee shall
execute and deliver to Under Armour all documents or instruments that may be
necessary to secure or perfect Under Armour’s title to or interest in the
Inventions and Works, including but not limited to United States and foreign
applications for letters of patents and extensions, continuations or reissues
thereof, applications for copyrights and documents, or instruments of
assignment or transfer.  Such obligations
shall continue beyond termination of employment with respect to Works and
Inventions designed, created or developed by the Employee during the period of
employment hereunder, and shall be binding upon the Employee’s heirs, assigns,
executors, administrators and other representatives.  The Employee shall render all assistance that
Under Armour may require in any US or foreign patent office and trademark or
copyright office proceeding or litigation involving such Inventions or Works
without charge to Under Armour other than reasonable payment for time involved
in the event the Employee is no longer employed by Under Armour.

 

3

 

(c)                                  Power of Attorney.  In the event that Under Armour is unable for
any reason to secure the Employee’s signature to any lawful and necessary
document required to apply for or execute any patent or copyright, or other
applications respecting the Intellectual Property or other work relating to the
services provided by the Employee (including improvements, renewals,
extensions, continuations, divisions or continuations in part thereof), the
Employee hereby irrevocably designates and appoints Under Armour and its officers
and agents as his/her agents and attorneys-in-fact to act for and in his/her
behalf and instead of the Employee, to execute and file any such application
and to do all other lawfully permitted acts to further the prosecution and
issuance of patents, copyrights and/or other rights thereon with the same legal
force and effect as if executed by the Employee.

 

(d)                                 Warranty.  The Employee represents and warrants to Under
Armour that all Inventions and Works are the original creations of the
Employee, and are free and clear of any encumbrances, liens or claims of
ownership by a third party.

 

7.                                       Duty to Return Corporation Property.  Employee agrees that immediately upon
cessation of his employment with the Company, Employee will return to Under
Armour all Confidential Information and all other materials in his/her
possession or control relating to the business of Under Armour such as, but not
limited to, customer lists, vendor lists, pricing information, manuals,
computer programs, correspondence, whether written or stored on computerized
medium, as well as copies of all such materials in any form (e.g.,
diskettes).  The Employee shall not take
any action to preserve or regain access to such information through any means,
including but not limited to access to Under Armour’s facilities or through a
computer or other digital or electronic means, and shall pay all amounts due,
owing or otherwise payable by the Employee to Under Armour.  The Employee expressly authorizes Under
Armour to withhold any amounts payable to the Employee, including for wages,
compensation, reimbursement and otherwise until the Employee has complied with
this Section 7.

 

8.                                       Non-Employment Agreement.  The parties recognize and agree that this
Agreement is not an Employment Agreement and that the relationship between the
parties remains at-will.  This Agreement
supersedes all previous agreements and understandings between the parties.

 

9.                                       Remedies for Breach.  In addition to any other remedy available at
law, in the event of a breach or a threatened breach by the Employee of the
provisions of this Agreement, Under Armour will be entitled to an injunction
and/or temporary restraining order restraining the Employee from such breach or
threatened breach or specifically enforce this Agreement.  Employee agrees to indemnify and hold
harmless Under Armour from all damages and costs and expenses, including
reasonable attorney’s fees, relating to the Employee’s breach or threatened
breach.   Such fee shall include the
standard hourly fees charged by counsel for Under Armour.  Nothing in this Agreement nor in pursuing the
injunctive remedy will be construed as prohibiting Under Armour from pursuing
any other remedies available to it for a breach or threatened breach, including,
but not limited to, any fees,

 

4

 

costs, losses, expenses,
damages or other monetary remedy available at law or in equity.

 

10.                                 Amendments and Termination:  Entire Agreement.  This Agreement may not be amended or
terminated except by a writing executed by all the parties hereto.  This Agreement constitutes the entire
agreement of Under Armour and Employee relating to the subject matter hereof
and supersedes all prior oral and written understandings and agreements
relating to such subject matter.

 

11.                                 Governing Laws and Forum.  This Agreement shall be governed by,
construed, and enforced in accordance with the laws of the State of
Maryland.  The parties hereto further
agree that any action brought to enforce any right or obligation under this
Agreement shall be subject to the exclusive jurisdiction of the Maryland
courts.

 

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

 

 

	
   

  	
  KP Sports, Inc. dba Under
  Armour Performance Apparel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Kevin Plank, President

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

5

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