Document:

Exhibit 10.02

 

KP SPORTS, INC.

 

 

STOCK OPTION PLAN

 

 

EFFECTIVE AS OF MARCH 1, 2000

 

 

Copyright Venable,
Baetjer & Howard, LLP

 

 

KP SPORTS, INC.

STOCK OPTION PLAN

 

1.                                      Establishment,
Purpose and Types of Awards

 

KP Sports, Inc.
hereby establishes the KP SPORTS, INC. STOCK OPTION PLAN (the “Plan”).  The purpose of the Plan is to promote the
long-term growth and profitability of KP Sports, Inc. (the “Corporation”)
by (i) providing key people with incentives to improve stockholder value
and to contribute to the growth and financial success of the Corporation, and (ii) enabling
the Corporation to attract, retain and reward the best available persons for
positions of substantial responsibility.

 

The Plan permits the
granting of stock options (including nonqualified stock options and incentive
stock options qualifying under Section 422 of the Code) and stock
appreciation rights (including free-standing, tandem and limited stock
appreciation rights) or any combination of the foregoing (collectively, “Awards”).

 

The Plan is a
compensatory benefit plan within the meaning of Rule 701 under the
Securities Act of 1933 (the “Securities Act”). 
Except to the extent any other exemption from the Securities Act is
expressly relied upon in connection with any agreement entered into pursuant to the Plan or the securities
issuable hereunder are registered under the Securities Act, the issuance
of Common Stock pursuant to the Plan is intended to qualify for the exemption
from registration under the Securities Act provided by Rule 701.  To the extent that an exemption from
registration under the Securities Act provided by Rule 701 is unavailable,
all unregistered offers and sales of Awards and shares of Common Stock issuable
upon exercise of an Award are intended to be exempt from registration under the
Securities Act in reliance upon the private offering exemption contained in Section 4(2) of
the Securities Act, or other available exemption, and the Plan shall be so
administered.

 

2.                                      Definitions

 

Under this Plan, except
where the context otherwise indicates, the following definitions apply:

 

(a)                                  “Board” shall
mean the Board of Directors of the Corporation.

 

(b)                                 “Change in Control” shall
mean: (i) any sale, exchange or other disposition of substantially all of
the Corporation’s assets or over 50% of its Common Stock; or (ii) any
merger, share exchange, consolidation or other reorganization or business
combination in which the Corporation is not the surviving or continuing
corporation, or in which the Corporation’s stockholders become entitled to
receive cash securities of the Corporation other than voting common stock, or
securities of another issuer.

 

(c)                                  “Code” shall mean the Internal Revenue Code
of 1986, as amended, and any regulations issued thereunder.

 

 

(d)                                 “Committee” shall mean the Board or committee
of Board members appointed pursuant to Section 3 of the Plan to administer
the Plan.

 

(e)                                  “Common Stock” shall mean shares of the Corporation’s
common stock.

 

(f)                                    “Exchange Act” shall mean the Securities Exchange
Act of 1934, as amended.

 

(g)                                 “Fair Market Value” of a share of the Corporation’s
Common Stock for any purpose on a particular date shall be determined in a
manner such as the Committee shall in good faith determine to be appropriate.

 

(h)                                 “Grant Agreement” shall mean a written agreement
between the Corporation and a grantee memorializing the terms and conditions of
an Award granted pursuant to the Plan.

 

(i)                                     “Grant Date” shall mean the date on which the Committee formally acts to
grant an Award to a Grantee or such other date as the Committee shall so
designate at the time of taking such formal action.

 

(j)                                     “Parent” shall mean a corporation, whether
now or hereafter existing, within the meaning of the definition of “parent
corporation” provided in Section 424(e) of the Code, or any successor
thereto of similar import.

 

(k)                                  “Rule 16b-3” shall mean Rule 16b-3 as in effect under the Exchange Act
on the effective date of the Plan, or any successor provision prescribing
conditions necessary to exempt the issuance of securities under the Plan (and
further transactions in such securities) from Section 16(b) of the
Exchange Act.

 

(l) “Subsidiary” and “subsidiaries” shall mean only a corporation or
corporations, whether now or hereafter existing, within the meaning of the
definition of “subsidiary corporation” provided in Section 424(f) of
the Code, or any successor thereto of similar import.

 

3.                                      Administration

 

(a)                                  Procedure.  The Plan shall be administered by the
Board.  In the alternative, the Board may
appoint a Committee consisting of not less than two (2) members of the
Board to administer the Plan on behalf of the Board, subject to such terms and
conditions as the Board may prescribe. 
Once appointed, the Committee shall continue to serve until otherwise
directed by the Board.  From time to
time, the Board may increase the size of the Committee and appoint additional
members thereof, remove members (with or without cause) and appoint new members
in substitution therefor, fill vacancies, however caused, and remove all
members of the Committee and, thereafter, directly administer the Plan.  In the event that the Board is the
administrator of the Plan in lieu of a Committee, the term “Committee” as used
herein shall be deemed to mean the Board.

 

Members of the Board or
Committee who are either eligible for Awards or have been granted Awards may
vote on any matters affecting the administration of the Plan or the grant of
Awards pursuant to the Plan, except that no such member shall act upon the
granting of an Award to himself or herself, but any such member may be counted
in determining the existence

 

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of a quorum at any
meeting of the Board or the Committee during which action is taken with respect
to the granting of an Award to him or her.

 

The Committee shall meet
at such times and places and upon such notice as it may determine.  A majority of the Committee shall constitute
a quorum.  Any acts by the Committee may
be taken at any meeting at which a quorum is present and shall be by majority
vote of those members entitled to vote. 
Additionally, any acts reduced to writing or approved in writing by all
of the members of the Committee shall be valid acts of the Committee.

 

(b)                                 Procedure After Registration of Common Stock.  Upon
and after the point in time that the Common Stock or any other capital stock of
the Corporation becomes registered under Section 12 of the Exchange Act,
the Board shall take all action necessary to cause the Plan to be administered
in accordance with the then effective provisions of Rule 16b-3, provided
that any amendment to the Plan required for compliance with such provisions
shall be made in accordance with Section 11 of the Plan.

 

(c)                                  Powers of the Committee.  The Committee shall
have all the powers vested in it by the terms of the Plan, such powers to
include authority, in its sole and absolute discretion, to grant Awards under
the Plan, prescribe Grant Agreements evidencing such Awards and establish
programs for granting Awards.  The
Committee shall have full power and authority to take all other actions
necessary to carry out the purpose and intent of the Plan, including, but not
limited to, the authority to:

 

(i)                                     determine
the eligible persons to whom, and the time or times at which Awards shall be
granted,

 

(ii)                                  determine
the types of Awards to be granted,

 

(iii)                               determine
the number of shares to be covered by or used for reference purposes for each Award,

 

(iv)                              impose
such terms, limitations, restrictions and conditions upon any such Award as the
Committee shall deem appropriate,

 

(v)                                 modify,
extend or renew outstanding Awards, accept the surrender of outstanding Awards
and substitute new Awards, provided that no such action shall be taken with
respect to any outstanding Award which would adversely affect the grantee
without the grantee’s consent, and

 

(vi)                              accelerate
or otherwise change the time in which an Award may be exercised or becomes
payable and to waive or accelerate the lapse, in whole or in part, of any
restriction or condition with respect to such Award, including, but not limited
to, any restriction or condition with respect to the vesting or exercisability
of an Award following termination of any grantee’s employment.

 

The Committee shall have
full power and authority to administer and interpret the Plan and to adopt such
rules, regulations, agreements, guidelines and instruments for the administration of

 

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the Plan and for the
conduct of its business as the Committee deems necessary or advisable and to
interpret same, all within the Committee’s sole and absolute discretion.

 

(d)                                 Limited Liability.  To the maximum extent permitted by
law, no member of the Board or Committee shall be liable for any action taken
or decision made in good faith relating to the Plan or any Award thereunder.

 

(e)                                  Indemnification.  To the maximum extent permitted by
law, the members of the Board and Committee shall be indemnified by the
Corporation in respect of all
their activities under the Plan.

 

(f)                                    Effect of Committee’s Decision. All actions taken and decisions and determinations made by the
Committee on all matters relating to the Plan pursuant to the powers vested in
it hereunder shall be in the Committee’s sole and absolute discretion and shall
be conclusive and binding on all parties concerned, including the Corporation,
its stockholders, any participants in the Plan and any other employee of the
Corporation, and their respective successors in interest.

 

4.                                      Shares
Available for the Plan; Maximum Awards

 

Subject to adjustments as
provided in Section 10 of the Plan, the shares of stock that may be delivered or purchased or used for
reference purposes (with respect to stock appreciation rights) under the Plan,
including with respect to incentive stock options intended to qualify under Section 422
of the Code, shall not exceed an aggregate of five hundred thirteen (513)
shares of Common Stock of the Corporation and the Corporation shall reserve
said number of shares of Common Stock for issuance pursuant to the Plan.  If any Award, or portion of an Award, under the Plan expires or
terminates unexercised, becomes unexercisable or is forfeited or otherwise
terminated, surrendered or canceled as to any shares, the shares subject to
such Award shall thereafter be available for further Awards under the Plan.

 

5.                                      Participation

 

Participation in the Plan
shall be open to all employees, officers, directors and consultants of the
Corporation, or of any Parent or Subsidiary of the Corporation, as may be
selected by the Committee from time to time. 
Notwithstanding the foregoing, participation in the Plan with respect to
Awards of incentive stock options shall be limited to employees of the
Corporation, or of any Parent or Subsidiary of the Corporation.

 

Awards may be granted to
such eligible persons and for or with respect to such number of shares of
Common Stock as the Committee shall determine, subject to the limitations in Section 4
of the Plan.  A grant of any type of
Award made in any one year to an eligible person shall neither guarantee nor
preclude a further grant of that or any other type of Award to such person in
that year or subsequent years.

 

6.                                      Stock
Options

 

Subject to the other
applicable provisions of the Plan, the Committee may from time to time grant to
eligible participants nonqualified stock options or incentive stock options as
that

 

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term is defined in
Section 422 of the Code.  The stock
options granted shall be subject to the following terms and conditions.

 

(a)                                  Grant of Option.  The grant of a stock option shall be
evidenced by a Grant Agreement, executed by the Corporation and the grantee,
stating the number of shares of Common Stock subject to the stock option
evidenced thereby and the terms and conditions of such stock option, in such
form as the Committee may from time to time determine.

 

(b)                                 Price. The price
per share payable upon the exercise of each stock option (“exercise price”)
shall be determined by the Committee.

 

(c)                                  Payment.  Stock options may be exercised in
whole or in part by payment of the exercise price of the shares to be acquired in accordance
with the provisions of the Grant Agreement, and/or such rules and
regulations as the Committee may have prescribed, and/or such determinations,
orders, or decisions as the Committee may have made.  Payment may be made in cash (or cash
equivalents acceptable to the Committee) or, if approved by the Committee, in
shares of Common Stock or a combination of cash and shares of Common Stock, or
by such other means as the Committee may prescribe.  The Fair Market Value of shares of Common
Stock delivered on exercise of stock options shall be determined as of the date
of exercise.  Shares of Common Stock
delivered in payment of the exercise price may be previously owned shares or,
if approved by the Committee, shares acquired upon exercise of the stock
option.  Any fractional share will be
paid in cash.  If approved by the Board
of Directors, the Corporation may make or guarantee loans to grantees to assist
grantees in exercising stock options and satisfying any related withholding tax
obligations.

 

If the Common Stock is
registered under Section 12(b) or 12(g) of the Exchange Act, the
Committee, subject to such limitations as it may determine, may authorize
payment of the exercise price, in whole or in part, by delivery of a properly
executed exercise notice, together with irrevocable instructions, to: (i) a
brokerage firm designated by the Corporation to deliver promptly to the
Corporation the aggregate amount of sale or loan proceeds to pay the exercise
price and any withholding tax obligations that may arise in connection with the
exercise, and (ii) the Corporation to deliver the certificates for such
purchased shares directly to such brokerage firm.

 

(d)                                 Terms of Options.  The term during which each stock
option may be exercised shall be determined by the Committee; provided,
however, that in no event shall a stock option be exercisable more than ten
years from the date it is granted.  Prior
to the exercise of the stock option and delivery of the shares certificates
represented thereby, the grantee shall have none of the rights of a stockholder
with respect to any shares represented by an outstanding stock option.

 

(e)                                  Restrictions on Incentive Stock Options.  Incentive
Stock Options granted under the Plan shall comply in all respects with Code Section 422
and, as such, shall meet the following additional requirements.

 

(i)                                     Grant
Date.  An incentive stock option must be
granted within 10 years of the earlier of the Plan’s adoption by the Board of
Directors or approval by the Corporation’s shareholders.

 

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(ii)                                  Exercise
Price and Term.  The exercise price of an
incentive stock option shall not be less than 100% of the Fair Market Value of
the shares on the date the stock option is granted and the term of the stock
option shall not exceed ten years.  Also,
the exercise price of any incentive stock option granted to a grantee who owns
(within the meaning of Section 422(b)(6) of the Code, after the
application of the attribution rules in Section 424(d) of the
Code) more than 10% of the total combined voting power of all classes of shares
of the Corporation or its Parent or Subsidiary corporations (within the meaning
of Sections 422 and 424 of the Code) shall be not less than 110% of the Fair
Market Value of the Common Stock on the grant date and the term of such stock
option shall not exceed five years.

 

(iii)                               Maximum
Grant.  The aggregate Fair Market Value
(determined as of the Grant Date) of shares of Common Stock with respect to
which all incentive stock options first become exercisable by any grantee in
any calendar year under this or any other plan of the Corporation and its
Parent and Subsidiary corporations may not exceed $100,000 or such other amount
as may be permitted from time to time under Section 422 of the Code.  To the extent that such aggregate Fair Market
Value shall exceed $100,000, or other applicable amount, such stock options
shall be treated as nonqualified stock options. 
In such case, the Corporation may designate the shares of Common Stock
that are to be treated as stock acquired pursuant to the exercise of an
incentive stock option by issuing a separate certificate for such shares and
identifying the certificate as incentive stock option shares in the stock
transfer records of the Corporation.

 

(iv)                              Grantee.  Incentive stock options shall only be issued
to employees of the Corporation, or of a Parent or Subsidiary of the
Corporation.

 

(v)                                 Designation.  No stock option shall be an incentive stock
option unless so designated by the Committee at the time of grant or in the
Grant Agreement evidencing such stock option.

 

(vi)                              Stockholder
Approval.  No stock option issued under
the Plan shall be an incentive stock option unless the Plan is approved by the
shareholders of the Corporation within 12 months of its adoption by the Board
in accordance with the Bylaws and Certificates of the Corporation and governing
law relating to such matters.

 

(f)                                    Other Terms and Conditions.  Stock options may contain such other
provisions, not inconsistent with the provisions of the Plan, as the Committee
shall determine appropriate from time to time.

 

7.                                      Stock
Appreciation Rights

 

(a)                                  Award of Stock Appreciation
Rights.  Subject to the other
applicable provisions of the Plan, the Committee may at any time and from time
to time grant stock appreciation rights (“SARs”) to eligible participants,
either on a free-standing basis (without regard to or in addition to the grant
of a stock option) or on a tandem basis (related to the grant of an underlying
stock option), as it determines.  SARs
granted in tandem with or in addition to a stock option may be granted either
at the same time as the stock option or at a later time; provided, however, that
a

 

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tandem
SAR shall not be granted with respect to any outstanding incentive stock option
Award without the consent of the grantee. 
SARs shall be evidenced by Grant Agreements, executed by the Corporation
and the grantee, stating the number of shares of Common Stock subject to the
SAR evidenced thereby and the terms and conditions of such SAR, in such form as
the Committee may from time to time determine. 
The term during which each SAR may be exercised shall be determined by
the Committee.  In no event shall a SAR
be exercisable more than ten years from the date it is granted.  The grantee shall have none of the rights of
a stockholder with respect to any shares of Common Stock represented by a SAR.

 

(b)                                 Restrictions of Tandem SARs.  No incentive stock option may be
surrendered in connection with the exercise of a tandem SAR unless the Fair
Market Value of the Common Stock subject to the incentive stock option is
greater than the exercise price for such incentive stock option.  SARs granted in tandem with stock options
shall be exercisable only to the same extent and subject to the same conditions
as the stock options related thereto are exercisable.  The Committee may, in its discretion,
prescribe additional conditions to the exercise of any such tandem SAR.

 

(c)                                  Amount of Payment Upon Exercise
of SARs.  A SAR shall entitle the
grantee to receive, subject to the provisions of the Plan and the Grant
Agreement, a payment having an aggregate value equal to the product of (i) the
excess of (A) the Fair Market Value on the exercise date of one share of
Common Stock over (B) the base price per share specified in the Grant
Agreement, times (ii) the number of shares specified by the SAR, or
portion thereof, which is exercised.  In
the case of exercise of a tandem SAR, such payment shall be made in exchange
for the surrender of the unexercised related stock option (or any portion or
portions thereof which the grantee from time to time determines to surrender
for this purpose).

 

(d)                                 Form of Payment Upon
Exercise of SARs.  Payment by the
Corporation of the amount receivable upon any exercise of a SAR may be made by
the delivery of Common Stock or cash, or any combination of Common Stock and
cash, as determined in the sole discretion of the Committee from time to
time.  If upon settlement of the exercise
of a SAR a grantee is to receive a portion of such payment in shares of Common
Stock, the number of shares shall be determined by dividing such portion by the
Fair Market Value of a share of Common Stock on the exercise date.  No fractional shares shall be used for such
payment and the Committee shall determine whether cash shall be given in lieu
of such fractional shares or whether such fractional shares shall be eliminated.

 

8.                                      Withholding
Of Taxes

 

The Corporation may
require, as a condition to the grant of any Award under the Plan or exercise
pursuant to such Award or to the delivery of certificates for shares issued or
payments of cash to a grantee pursuant to the Plan or a Grant Agreement
(hereinafter collectively referred to as a “taxable event”), that the grantee
pay to the Corporation, in cash or, if approved by the Corporation, in shares
of Common Stock, including shares acquired upon grant of the Award or exercise
of the Award, valued at Fair Market Value on the date as of which the
withholding tax liability is determined, any federal, state or local taxes of
any kind required by law to be withheld with respect to any taxable event under
the Plan.  The Corporation, to the extent
permitted or required by law, shall have the right to deduct from any payment
of any kind (including salary or

 

7

 

bonus) otherwise
due to a grantee any federal, state or local taxes of any kind required by law
to be withheld with respect to any taxable event under the Plan, or to retain
or sell without notice a sufficient number of the shares to be issued to such
grantee to cover any such taxes.

 

9.                                      Transferability

 

No Award granted under
the Plan shall be transferable by a grantee otherwise than by will or the laws of descent
and distribution.  Unless otherwise
determined by the Committee in accord with the provisions of the immediately
preceding sentence, an Award may be exercised during the lifetime of the
grantee, only by the grantee or, during the period the grantee is under a legal
disability, by the grantee’s guardian or legal representative.

 

10.                               Adjustments;
Business Combinations

 

In the event of a
reclassification, recapitalization, stock split, reverse stock split, stock
dividend, combination of shares, or other similar event, the maximum number and
kind of shares reserved for issuance or with respect to which Awards may be
granted under the Plan as provided in Section 4 shall be adjusted to
reflect such event, and the Committee shall make such adjustments as it deems
appropriate and equitable in the number, kind and price of shares covered by
outstanding Awards made under the Plan, and in any other matters which relate
to Awards and which are affected by the changes in the Common Stock referred to
above.

 

In the event of any
proposed Change in Control, the Committee shall take such action as it deems
appropriate and equitable to effectuate the purposes of this Plan and to
protect the grantees of Awards, which action may include, but without
limitation, any one or more of the following: (i) acceleration or change
of the exercise and/or expiration dates of any Award to require that exercise
be made, if at all, prior to the Change in Control; (ii) cancellation of
any Award upon payment to the holder in cash of the Fair Market Value of the
Common Stock subject to such Award as of the date of (and, to the extent
applicable, as established for purposes of) the Change in Control, less the
aggregate exercise price, if any, of the Award; and (iii) in any case
where equity securities of another entity are proposed to be delivered in
exchange for or with respect to Common Stock of the Corporation, arrangements
to have such other entity replace the Awards granted hereunder with awards with
respect to such other securities, with appropriate adjustments in the number of
shares subject to, and the exercise prices under, the award.

 

The Committee is
authorized to make adjustments in the terms and conditions of, and the criteria
included in, Awards in recognition of unusual or nonrecurring events
(including, without limitation, the events described in the preceding two
paragraphs of this Section 10) affecting the Corporation, or the financial
statements of the Corporation or any Subsidiary, or of changes in applicable
laws, regulations, or accounting principles, whenever the Committee determines
that such adjustments are appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan.

 

In the event the
Corporation dissolves and liquidates (other than pursuant to a plan of merger
or reorganization), then notwithstanding any restrictions on exercise set forth
in this Plan or any Grant Agreement, or other agreement evidencing a stock
option or stock appreciation

 

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right: (i) each
grantee shall have the right to exercise his stock option or stock appreciation
right at any time up to ten (10) days prior to the effective date of such
liquidation and dissolution; and (ii) the Committee may make arrangements
with the grantees for the payment of appropriate consideration to them for the
cancellation and surrender of any stock option or stock appreciation right that
is so canceled or surrendered at any time up to ten (10) days prior to the
effective date of such liquidation and dissolution.  The Committee may establish a different
period (and different conditions) for such exercise, delivery, cancellation, or
surrender to avoid subjecting the grantee to liability under Section 16(b) of
the Exchange Act.  Any stock option or
stock appreciation right not so exercised, canceled, or surrendered shall
terminate on the last day for exercise prior to such effective date.

 

Except as hereinbefore
expressly provided, issuance by the Corporation of shares of stock of any class
or securities convertible into shares of stock of any class, for cash,
property, labor or services, upon direct sale, upon the exercise of rights or
warranty to subscribe therefore, or upon conversion of shares or obligations of
the Corporation convertible into such shares or other securities, and in any
case whether or not for fair value, shall not affect, and no adjustment by
reason thereof shall be made with respect to, the number of shares of Common
Stock subject to Awards theretofore granted or the purchase price per share of
Common Stock subject to Awards.

 

11.                               Termination
and Modification of the Plan

 

The Board, without
further approval of the stockholders, may modify or terminate the Plan or any
portion thereof at any time, except that no modification shall become effective
without prior approval of the stockholders of the Corporation to increase the
number of shares of Common Stock subject to the Plan or if stockholder approval
is necessary to comply with any tax or regulatory requirement or rule of
any exchange or Nasdaq System upon which the Common Stock is listed or quoted
(including for this purpose stockholder approval that is required for continued
compliance with Rule 16b-3 or stockholder approval that is required to
enable the Committee to grant incentive stock options pursuant to the Plan).

 

The Committee shall be
authorized to make minor or administrative modifications to the Plan as well as
modifications to the Plan that may be dictated by requirements of federal or
state laws applicable to the Corporation or that may be authorized or made
desirable by such laws.  The Committee
may amend or modify the grant of any outstanding Award in any manner to the
extent that the Committee would have had the authority to make such Award as so
modified or amended.  No modification may
be made that would materially adversely affect any Award previously made under
the Plan without the approval of the grantee.

 

12.                               Non-Guarantee
of Employment

 

Nothing in the Plan or in
any Grant Agreement thereunder shall confer any right on an employee to
continue in the employ of the Corporation or shall interfere in any way with
the right of the Corporation to terminate an employee at any time.

 

13.                               Termination
of Employment

 

For purposes of
maintaining a grantee’s continuous status as an employee and accrual of rights
under any Award, transfer of an employee among the Corporation and the
Corporation’s

 

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Parent or
Subsidiaries shall not be considered a termination of employment.  Nor shall it be considered a termination of
employment for such purposes if an employee is placed on military or sick leave
or such other leave of absence which is considered as continuing intact the
employment relationship; in such a case, the employment relationship shall be
continued until the date when an employee’s right to reemployment shall no
longer be guaranteed either by law or contract.

 

14.                               Written
Agreement

 

Each Grant Agreement
entered into between the Corporation and a grantee with respect to an Award
granted under the Plan shall incorporate the terms of this Plan and shall
contain such provisions, consistent with the provisions of the Plan, as may be
established by the Committee.

 

15.                               Non-Uniform
Determinations

 

The Committee’s
determinations under the Plan (including without limitation determinations of
the persons to receive Awards, the form, amount and timing of such Awards, the
terms and provisions of such Awards and the agreements evidencing same) need
not be uniform and may be made by it selectively among persons who receive, or
are eligible to receive, Awards under the Plan, whether or not such persons are
similarly situated.

 

16.                               Limitation
on Benefits

 

With respect to persons
subject to Section 16 of the Exchange Act, transactions under this Plan
are intended to comply with all applicable conditions of Rule 16b-3.  To the extent any provision of the Plan or
action by the Committee fails to so comply, it shall be deemed null and void,
to the extent permitted by law and deemed advisable by the Committee.

 

17.                               Listing and
Registration

 

If the Corporation
determines that the listing, registration or qualification upon any securities
exchange or upon any listing or quotation system established by the National
Association of Securities Dealers, Inc. 
(“Nasdaq System”) or under any law, of shares subject to any Award is
necessary or desirable as a condition of, or in connection with, the granting
of same or the issue or purchase of shares thereunder, no such Award may be
exercised in whole or in part and no restrictions on such Award shall lapse,
unless such listing, registration or qualification is effected free of any conditions
not acceptable to the Corporation.

 

18.                               Compliance
with Securities Law

 

The Corporation may
require that a grantee, as a condition to exercise of an Award, and as a
condition to the delivery of any share certificate, provide to the Corporation,
at the time of each such exercise and each such delivery, a written
representation that the shares of Common Stock being acquired shall be acquired
by the grantee solely for investment and will not be sold or transferred
without registration or the availability of an exemption from registration
under the Securities Act and applicable state securities laws.  The Corporation may also require that a
grantee submit other written representations which will permit the Corporation
to comply with

 

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federal and
applicable state securities laws in connection with the issuance of the Common
Stock, including representations as to the knowledge and experience in
financial and business matters of the grantee and the grantee’s ability to bear
the economic risk of the grantee’s investment. 
The Corporation may require that the grantee obtain a “purchaser
representative” as that term is defined in applicable federal and state
securities laws.  The stock certificates
for any shares of Common Stock issued pursuant to this Plan may bear a legend
restricting transferability of the shares of Common Stock unless such shares
are registered or an exemption from registration is available under the
Securities Act and applicable state securities laws.  The Corporation may notify its transfer agent
to stop any transfer of shares of Common Stock not made in compliance with
these restrictions.  Common Stock shall
not be issued with respect to an Award granted under the Plan unless the
exercise of such Award and the issuance and delivery of share certificates for
such Common Stock pursuant thereto shall comply with all relevant provisions of
law, including, without limitation, the Securities Act, the Exchange Act, the rules and
regulations promulgated thereunder, and the requirements of any national
securities exchange or Nasdaq System upon which the Common Stock may then be
listed or quoted, and shall be further subject to the approval of counsel for
the Corporation with respect to such compliance to the extent such approval is
sought by the Committee.

 

19.                               No Trust or
Fund Created

 

Neither the Plan nor any
Award shall create or be construed to create a trust or separate fund of any
kind or a fiduciary relationship between the Corporation and a grantee or any
other person.  To the extent that any
grantee or other person acquires a right to receive payments from the
Corporation pursuant to an Award, such right shall be no greater than the right
of any unsecured general creditor of the Corporation.

 

20.                               No Limit on
Other Compensation Arrangements

 

Nothing contained in the
Plan shall prevent the Corporation or its Parent or Subsidiary corporations
from adopting or continuing in effect other compensation arrangements (whether
such arrangements be generally applicable or applicable only in specific cases)
as the Committee in its discretion determines desirable, including without
limitation the granting of stock options, stock awards, stock appreciation
rights or phantom stock units otherwise than under the Plan.

 

21.                               No
Restriction of Corporate Action

 

Nothing contained in the
Plan shall be construed to prevent the Corporation or any Parent or Subsidiary
from taking any corporate action which is deemed by the Corporation or such
Parent or Subsidiary to be appropriate or in its best interest, whether or not
such action would have an adverse effect on the Plan or any Award issued under
the Plan.  No employee, beneficiary or
other person shall have any claim against the Corporation or any Parent or
Subsidiary as a result of such action.

 

22.                               Governing
Law

 

The validity,
construction and effect of the Plan, of Grant Agreements entered into pursuant
to the Plan, and of any rules, regulations, determinations or decisions made by
the Board or Committee relating to the Plan or such Grant Agreements, and the
rights of any and all

 

11

 

persons having or
claiming to have any interest therein or thereunder, shall be determined
exclusively in accordance with applicable federal laws and the laws of the
State of Maryland without regard to its conflict of laws rules and
principles.

 

23.                               Plan Subject
to Charter and By-Laws

 

This Plan is subject to
the Charter and By-Laws of the Corporation, as they may be amended from time to
time.

 

24.                               Effective
Date; Termination Date

 

The Plan is effective as
of the date on which the Plan was adopted by the Board; provided that no stock
options issued hereunder shall be treated as incentive stock options,
regardless of the designation in the Grant Agreement, unless the Plan is
approved by the shareholders of the Corporation as provided in Section 6(e)(vi).  No Award shall be granted under the Plan
after the close of business on the day immediately preceding the tenth
anniversary of the effective date of the Plan. 
Subject to other applicable provisions of the Plan, all Awards made
under the Plan prior to such termination of the Plan shall remain in effect
until such Awards have been satisfied or terminated in accordance with the Plan
and the terms of such Awards.

 

Date Approved by the
Board: March 1, 2001

Date Approved by the
Shareholders: March 1, 2001

 

12Exhibit 10.02(a)

AMENDMENT

 

TO THE

 

KP SPORTS 2000 STOCK OPTION PLAN

 

WHEREAS, the Board of Directors of KP Sports, Inc.
(the “Corporation”) has adopted and the stockholders of the Corporation have
approved the KP Sports, Inc. Stock Option Plan;

 

WHEREAS, the Corporation desires to amend the Plan to
permit the grant of restricted shares of Class A common
stock of the Corporation;

 

WHEREAS, Section 11 of the Plan permits the Board to
amend the Plan; and

 

WHEREAS, capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to them in the Plan.

 

 

                Effective February 2, 2005, the Plan is hereby
amended as follows:

 

1.                             Section
1 is hereby amended by the addition of the following two sentences at the end
of the section:

 

                                “Effective
February 2, 2005, the Plan also permits the grant of restricted stock.  For the purpose of the Plan, the term “Award”
shall also include restricted stock.

 

2.                             A
new section 25 entitled “Restricted Stock” is hereby added to read as follows:

 

25.                           RESTRICTED
STOCK

 

(a)                           Grant
of Restricted Stock.

 

The Committee may from time to time grant to eligible participants
shares of Common Stock that are subject to restrictions and to a risk of
forfeiture (referred to as “restricted stock”). 
Restricted stock shall be subject to such restrictions, conditions and
other terms as the Committee may determine.

 

1

 

(b)                           Restrictions.

 

At the time an award of restricted stock is made, the Committee shall
establish a restriction period applicable to such restricted stock.  Each Award of restricted stock may be subject
to a different restriction period.  The
Committee may, in its sole discretion, at the time a grant of restricted stock
is made, prescribe conditions that must be satisfied prior to the expiration of
the restriction period, including the satisfaction of corporate or individual
performance objectives or continued Service, in order that all or any portion
of the restricted stock shall vest.  The
Committee also may, in its sole discretion, shorten or terminate the
restriction period or waive any of the conditions applicable to all or a
portion of the restricted stock.  The
restricted stock may not be sold, transferred, assigned, pledged or otherwise
encumbered or disposed of during the restriction period or prior to the
satisfaction of any other conditions prescribed by the Committee with respect
to such restricted stock.

 

(c)                           Restricted
Stock Certificates.

 

The Corporation shall issue, in the name of each eligible participant to
whom restricted stock has been granted, stock certificates representing the
total number of shares of restricted stock granted to the grantee, as soon as
reasonably practicable after the grant date. 
The Board may provide in an Award that either (i) the Secretary of the
Corporation shall hold such certificates for the grantee’s benefit until such
time as the restricted stock is forfeited to the Corporation, or the
restrictions lapse, or (ii) such certificates shall be delivered to the
grantee, provided, however, that such certificates shall bear a legend or
legends that complies with the applicable securities laws and regulations and
makes appropriate reference to the restrictions imposed under the Plan and the
Grant Agreement.  The Corporation may
also use the book-entry method of share recordation in lieu of issuing share
certificates.

 

(d)                           Rights
of Holders of Restricted Stock.

 

Unless the Committee otherwise provides in an Grant Agreement, holders
of restricted stock shall have the right to vote such stock and the right to
receive any dividends declared or paid with respect to such stock.  The Committee may provide that any dividends
paid on restricted stock must be reinvested in shares of stock, which may or
may not be subject to the same vesting conditions and restrictions applicable
to such restricted stock.  All
distributions, if any, received by a grantee with respect to restricted stock
as a result of any stock split, stock dividend,

 

2

 

combination of shares, or other similar transaction shall be subject to
the restrictions applicable to the original Award.

 

(e)                           Termination
of Employment.

 

Unless otherwise provided by the Committee in the applicable Grant
Agreement, upon the termination of a grantee’s employment with the Corporation
(including if a non-employee director of the Corporation shall cease to be a
director), any shares of restricted stock held by such grantee that have not
vested, or with respect to which all applicable restrictions and conditions
have not lapsed, shall immediately be deemed forfeited.  Upon forfeiture of restricted stock, the
grantee shall have no further rights with respect to such Award, including but
not limited to any right to vote restricted stock or any right to receive
dividends with respect to shares of restricted stock.

 

(f)                            Purchase
and Delivery of Stock.

 

The grantee shall be required to purchase the restricted stock from the
Corporation at a purchase price equal to the greater of (i) the aggregate par
value of the shares of Stock represented by such restricted stock or (ii) the
purchase price, if any, specified in the Grant Agreement relating to such
restricted stock.  The purchase price
shall be payable by cash or cash equivalents or, in the discretion of the Committee,
in consideration for past services rendered to the Corporation.  Upon the expiration or termination of the
restriction period and the satisfaction of any other conditions prescribed by
the Committee, having properly paid the purchase price, the restrictions
applicable to shares of restricted stock shall lapse, and, unless otherwise
provided in the Grant Agreement, a stock certificate for such shares shall be
delivered, free of all such restrictions, to the grantee or the grantee’s
beneficiary or estate, as the case may be.

 

In all respects
not amended, the Plan is confirmed and ratified.

                This Amendment to the Plan was duly approved by the
Board of Directors of the Corporation on the 2 day of February, 2005.

	
   

  	
   

  	
   

  	
   

  	
  /s/ J. Scott Plank

  
	
   

  	
   

  	
   

  	
   

  	
  J. Scott Plank, Secretary

  
	
   

  	
   

  	
   

  	
   

  	
  KP Sports, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

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