Document:

Exhibit
10.03

 

Execution Copy

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This Executive
Employment Agreement (this “Agreement”) is made effective September 30,
2003, by and between KP Sports, Inc., a Maryland corporation doing
business as Under Armour Performance Apparel (hereinafter, the “Company”), and
Kevin A. Plank (hereinafter, the “Executive”). 
For purposes hereof, the Company and the Executive are referred to
collectively as the “Parties” and, individually, as a “Party.”

 

RECITALS

 

WHEREFORE,
the Company desires to employ the Executive as President and Chief Executive
Officer, subject to the terms and provisions of this Agreement, and the
Executive desires such employment with the Company, subject to the terms and
provisions of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties agree as follows:

 

1.                                      Term.  Unless earlier terminated as provided herein,
the Company hereby agrees to employ the Executive and the Executive hereby
accepts such employment for a five year period commencing September 30,
2003 and ending on September 30, 2008, upon the terms and conditions
hereinafter set forth.  Commencing on September 30,
2008 and each September 30th thereafter, the Term (as defined below) shall
automatically be extended for one additional year, unless the Executive’s
employment with the Company has been previously terminated pursuant to Section 9
of this Agreement or unless the Executive or the Company shall have given
written notice to the other at least sixty (60) days prior thereto that the
Term shall not be so extended.  For the
purposes of this Agreement, the employment term as defined in this Section,
including any extension thereof, shall be the “Term.”

 

2.                                      Duties.  During the Term, the Executive shall serve as
President and Chief Executive Officer (hereinafter, “President and CEO”) of the
Company and shall report to, and have those duties, responsibilities, and
authority assigned him from time to time by, the Board of Directors of the
Company (the “Board”).  The Executive
shall have the powers and authority consistent with such responsibilities,
duties, and authority.  The Executive
shall devote substantially all his working time, attention, knowledge, and
skills faithfully, diligently, and to the best of his ability, in furtherance
of the business and activities of the Company. 
During the Term, the Executive shall refrain from engaging in any activity
which is or may be contrary to the welfare, interests, or benefits of the
Company and from engaging in any activity which is or may be competitive with
the activities of the Company.  Nothing
in this Section shall preclude the Executive from engaging in charitable,
professional, and community activities, in each case as long as such

 

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activities do not interfere, conflict, or
give the appearance of conflicting in any way with the Executive’s performance
under this Agreement.  In addition, the
Executive shall be permitted to perform incidental duties and responsibilities
for his family investments provided that such family business duties shall not
interfere with his duties to the Company. 
The Executive agrees to abide by the rules, regulations, instructions,
personnel practices and policies of the Company and any changes therein that
may be adopted from time to time by the Company, and the Executive acknowledges
receipt of copies of all such rules, regulations, instructions, personnel
practices and policies of the Company committed to writing as of the date of
this Agreement.

 

3.                                      Base Salary.  In consideration for the services to be
rendered by the Executive hereunder and for all rights and covenants granted
herein, the Company shall pay to the Executive a gross salary at a rate of
$350,000 per year (hereinafter, the “Base Salary”).  This Base Salary shall be paid in equal
monthly or bi-weekly installments, in accordance with the customary payroll
practices of the Company and subject to such deductions and withholdings as are
required by law and applicable regulations. 
This Base Salary may be adjusted from time to time at the discretion of
the Compensation Committee of the Board (the “Compensation Committee”) or the
Board if there is no Compensation Committee.

 

4.                                      Bonus.  The Executive shall receive an annual
incentive bonus (the “Bonus”) equal to the sum of (a) three percent (3.0%)
of the Company’s EBITDA (as defined below) in excess of $5.0 million up to and
including $10.0 million and (b) seven percent (7.0%) of the Company’s
EBITDA in excess of $10.0 million, in each case in any fiscal year of the
Company during the Term, provided that the Bonus shall not exceed $2.5 million
in any fiscal year.  For purposes hereof,
“EBITDA” means the Company’s consolidated earnings before interest, taxes,
depreciation and amortization  calculated
in accordance with generally accepted accounting principles consistently
applied.  The Bonus shall be calculated
on the basis of the Company’s audited financial statements for each fiscal year
of the Company during the Term and shall be paid to the Executive no later than
120 days after the end of the applicable fiscal year.  Any Bonus will be subject to such deductions
and withholdings as are required by law and applicable regulations.

 

5.                                      Equity Incentives.  The Executive will be eligible in the sole
discretion of the Compensation Committee, or the Board if there is no
Compensation Committee, to receive equity incentives pursuant to the Company’s
Stock Incentive Plan.  All awards
pursuant to the Company’s Stock Incentive 
Plan shall be subject to the terms and provisions of that plan, or any
similar plan, and any award agreement with respect to such award.  The vesting, exercisability and termination
provisions regarding such awards shall be subject to the terms and provisions
of the Company’s Stock Incentive Plan, or other similar plan, pursuant to which
the award was made, and the corresponding award agreement.

 

6.                                      Employee Benefits.   The Executive shall be entitled to
participate in or receive benefits under any employee benefit plan, arrangement
or perquisite generally made available by the Company from time to time to all
of its executives and key management employees, subject to and on a basis
consistent with the terms, conditions

 

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and overall administration of such plans,
arrangements and perquisites.  Any
payments or benefits payable to the Executive hereunder in respect of any year
during which the Executive is employed by the Company for less than the entire
such year shall, unless otherwise provided in the applicable plan or
arrangement be prorated in accordance with the number of days in such year
during which he is so employed.  Nothing
contained in this Agreement shall prevent the Company from changing insurance
carriers or from effecting modifications in insurance coverage for the
Executive.  The Executive shall also
receive an automobile allowance of $1,000 per month.

 

7.                                      Vacations; Holidays.  The
Executive shall be entitled to vacation days in accordance with the applicable
vacation policies for senior executives of the Company established by the
Board, which shall be no less than three (3) weeks per year and which shall
be taken at a reasonable time or times. 
The Executive shall be entitled to all public holidays observed by the
Company.

 

8.                                      Reimbursement of Expenses. 
The Company shall
reimburse the Executive for all reasonable business expenses paid or incurred by
the Executive in connection with the performance of his duties and
responsibilities under this Agreement, upon presentation by the Executive of
documentation, expense statements, vouchers and/or such other supporting
information as the Company may reasonably request.

 

9.                                      Termination.  Notwithstanding the provisions of Section 1
hereof, the Executive’s employment with the Company shall terminate upon the
occurrence of any of the following:

 

(a) expiration
or non-extension of the Term in accordance with Section 1;

 

(b) at
any time during the Term, the Company may terminate the Executive’s employment
with the Company for Cause upon written notice to the Executive, which
termination shall be effective immediately upon such written notice except as
otherwise provide in this Section 9(b). 
For purposes hereof, “Cause” shall be defined as any of the following: (i) the
Executive’s willful material misconduct or neglect in the performance of his
duties as determined by the Board; (ii) the Executive’s conviction by a
court of competent jurisdiction, or the entry of a plea of guilty or nolo
contendere by the Executive, of any felony, offense punishable by imprisonment
in a state or federal penitentiary, or any offense, civil or criminal,
involving material dishonesty, fraud, moral turpitude or immoral conduct; (iii) the
Executive’s use of illegal drugs or abusive use of prescription drugs as
determined by a licensed physician or physicians designated by the Company to
examine the Executive; or (iv) the Executive’s willful material breach of
this Agreement as determined by the Board, which breach is not cured within
thirty (30) days after the Executive’s receipt of written notice from the
Company specifying such breach and demanding a cure thereof;

 

(c) at
any time during the Term, the Executive may terminate his employment with the
Company for “Good Reason” upon written notice to the Company, which termination
shall be effective as provided in this Section 9(c).  For the purposes of

 

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this Agreement, “Good Reason” shall mean (i) the
Company’s failure to perform or observe any of the material terms or provisions
of this Agreement and the continued failure of the Company to cure such default
within thirty (30) days after written demand for performance has been given to
the Company by the Executive, which demand shall describe specifically the
nature of such alleged failure to perform or observe such material terms or
provisions, (ii) a material reduction in the scope of the Executive’s
duties, authority, responsibilities or title as in effect immediately prior to
such reduction; (iii) the Company’s assignment to the Executive of duties
which are materially inconsistent with the Executive’s position as President
and CEO; (iv) a material reduction by the Company in the Executive’s Base
Salary, in the formula for determining the Bonus or in any other benefits made
available to other senior executives of the Company; or (v) the Executive’s
relocation to a facility or a location more than fifty (50) miles from the then
present location without the Executive’s prior written consent, and in each
case the failure of the Company to cure the same within thirty (30) days after
receipt of written notice thereof from the Executive specifying such Good
Reason and demanding cure thereof;

 

(d) 
at any time during the Term, the Company may terminate the Executive’s
employment with the Company for any reason other than Cause, which termination
shall be effective upon thirty (30) days prior written notice to the Executive;

 

(e) 
at any time during the Term, the Executive may terminate his employment with
the Company for any reason other than Good Reason, which termination shall be
effective upon thirty (30) days prior written notice to the Company; or

 

(f) at
any time during the Term upon the Executive’s death or Inability to Perform (as
defined herein), which termination shall be effective immediately upon the
Executive’s death or written notice by either Party of the Executive’s
Inability to Perform.  For the purposes
of this Agreement, “Inability to Perform” shall mean the Executive’s inability
to perform all of the Executive’s duties hereunder by reason of illness,
physical or mental incapacity or other similar condition, as determined by the
Board in its sole discretion, which inability shall exist for more than ninety
(90) days.

 

10.                               Effect of Termination.

 

(a)  Termination due
to expiration or
non-extension of the Term pursuant to Section 1.  Upon termination of the Executive’s
employment due to expiration or non-extension of the Term as described in Section 9(a) of
this Agreement by the Company, the Company shall continue to pay the Executive’s
Base Salary through the twenty-fourth (24th) full month following
the effective date of the termination and pay the Executive’s COBRA premiums,
on the same terms as existed before termination, if the Executive elects and
continues COBRA coverage in connection with the health benefits plan that
covered him as an employee, through the twelfth (12th) full month
following the effective date of termination. 
In addition, the Executive shall be entitled to a Bonus based on the
EBITDA for the fiscal year in which the termination occurs, calculated in
accordance with Section 4 hereof, provided that the Bonus shall be
pro-rated based on the Executive’s length of service with the Company in that
fiscal year.  Any Bonus shall be paid to
the Executive no later than 120 days after the end of the fiscal year in which
the

 

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termination occurs, and any such Bonus will be subject
to such deductions and withholdings as are required by law and applicable
regulations.  The Company shall have no
further obligation or duties to the Executive except as provided in this Section 10(a),
and the Executive shall have no further obligations or duties to the Company
except as provided in Sections 11, 12, and 13 of this Agreement.  The Executive’s entitlement to amounts owing
pursuant to this Agreement shall not be dependent upon the Executive’s efforts
to “mitigate” loss or to find other employment, nor shall the amounts owing
pursuant to this Agreement be subject to offset by compensation earned from a
subsequent employer, provided, however, that the Company’s obligation to
continue to provide the Executive with payments equal to the premiums for COBRA
benefits shall cease if the Executive becomes eligible to participate in a
health benefits arrangement as an employee that is substantially similar to
those provided for under the COBRA continuation coverage.  Any benefits pursuant to this Section 10(a) are
contingent on the Executive’s executing an agreement containing a general
release of claims against the Company, in a form acceptable to the Company.

 

(b)  Termination by the Company for Cause or by the Executive for any reason
other than Good Reason.  Upon
termination of the Executive’s employment by the Company for Cause, as
described in Section 9(b) of this Agreement, or by the Executive for
any reason other than Good Reason, as described in Section 9(e) of
this Agreement, the Executive shall be entitled to only his Base Salary and
benefits up to the date of the termination of his employment, and the Company
shall have no further obligation or duties to the Executive except as provided
in this Section 10(b), and the Executive shall have no further obligation
or duties to the Company except as provided in Sections 11, 12 and 13.  The Executive shall not be entitled to any
Bonus for the fiscal year in which his employment is terminated by the Company
for Cause or by him for any reason other than Good Reason.

 

(c) 
Termination by the Company other than for Cause or by the Executive for Good
Reason.  Upon termination of the
Executive’s employment by the Company for any reason other than Cause, as described
in Section 9(d) of  this
Agreement, or by the Executive for Good Reason, as described in Section 9(c) of
this Agreement, the Company shall continue to pay the Executive’s Base Salary
through the twenty-fourth (24th) full month following the effective
date of the termination and pay the Executive’s COBRA premiums, on the same
terms as existed before termination, if the Executive elects and continues
COBRA coverage in connection with the health benefits plan that covered him as
an employee, through the twelfth (12th) full month following the
effective date of termination.  In
addition, the Executive shall be entitled to a Bonus based on the EBITDA for
the fiscal year in which the termination occurs, calculated in accordance with Section 4
hereof, provided that the Bonus shall be pro-rated based on the Executive’s
length of service with the Company in that fiscal year.  Any Bonus shall be paid to the Executive no
later than 120 days after the end of the fiscal year in which the termination
occurs, and any such Bonus will be subject to such deductions and withholdings
as are required by law and applicable regulations.  The Company shall have no further obligation
or duties to the Executive except as provided in this Section 10(c), and
the Executive shall have no further obligations or duties to Company except as
provided in Sections 11, 12, and 13 of this

 

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Agreement.  The Executive’s entitlement to amounts owing
pursuant to this Agreement shall not be dependent upon the Executive’s efforts
to “mitigate” loss or to find other employment, nor shall the amounts owing
pursuant to this Agreement be subject to offset by compensation earned from a
subsequent employer, provided, however, that the Company’s obligation to
continue to provide the Executive with payments equal to the premiums for COBRA
benefits shall cease if the Executive becomes eligible to participate in a
health benefits arrangement as an employee that is substantially similar to
those provided for under the COBRA continuation coverage.  Any benefits pursuant to this Section 10(c) are
contingent on the Executive’s executing an agreement containing a general
release of claims against the Company, in a form acceptable to the Company.

 

(d)                                 Termination
Due to the Executive’s Death or Inability to Perform.  If the Executive’s employment is terminated
by his death or by reason of his Inability to Perform, the Company shall pay to
the estate of the Executive or to the Executive, as the case may be, the Base
Salary and benefits up to the date of the termination of his termination of
employment with the Company.   In
addition, the estate of the Executive or the Executive, as the case may be
shall be entitled to a Bonus based on the EBITDA for the fiscal year in which
the termination occurs, calculated in accordance with Section 4 hereof,
provided that the Bonus shall be pro-rated based on the Executive’s length of
service with the Company in that fiscal year. 
Any Bonus shall be paid to the to the estate of the Executive or to the
Executive, as the case may be, no later than 120 days after the end of the
fiscal year in which the termination occurs, and any such Bonus will be subject
to such deductions and withholdings as are required by law and applicable regulations.  The Company shall have no further obligation
or duties to the Executive or to his estate or to his beneficiaries other than
as set forth in this Section 10(d).

 

11.                               Restrictive Covenants.

 

(a)                                  Confidentiality. 
During the Term and
continuing subsequent to any termination of the Executive’s employment with the
Company, the Executive shall maintain Confidential Information, as defined in Section 11(a)(i) below,
as secret and confidential unless the Executive is required to disclose
Confidential Information pursuant to the terms of a valid and effective order
issued by a court of competent jurisdiction or a governmental authority.  The Executive shall use Confidential
Information solely for the purpose of carrying out those duties assigned him as
an employee of the Company and not for any other purpose.  The disclosure of Confidential Information to
the Executive shall not be construed as granting to the Executive any license
under any copyright, trade secret or any right of ownership or right to use the
Confidential Information whatsoever.

 

(i)                                     For
the purposes of this Section 11, “Confidential Information” shall mean all
information related to the Company’s business that is not generally known to
the public. Confidential Information shall include, but shall not be limited
to: (w) any financial, business, planning, operations, services, potential
services, products, potential products, technical information, intellectual
property, trade secrets and/or know-how, formulas, production, purchasing, marketing,
sales, personnel, customer, supplier, or other information of the Company;
(x) any papers, data, records, processes,

 

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methods, techniques, systems, models,
samples, devices, equipment, compilations, invoices, customer lists, or
documents of the Company; (y) any confidential information or trade
secrets of any third party provided to the Company in confidence or subject to
other use or disclosure restrictions or limitations; and (z) any other information,
written, oral or electronic, whether existing now or at some time in the
future, whether pertaining to current or future developments, and whether
accessed prior to the Executive’s tenure with the Company or to be accessed
during his future employment or association with the Company, which pertains to
the Company’s affairs or interests or with whom or how the Company does
business.  The Company acknowledges and
agrees that Confidential Information shall not include information which is or
becomes publicly available other than as a result of a disclosure by the
Executive.

 

(ii)                                  The
Executive shall promptly notify the Company if he has reason to believe that
the unauthorized use, possession, or disclosure of any Confidential Information
has occurred or may occur.

 

(iii)                               All
physical items containing Confidential Information, including, without
limitation, the business plan, know-how, collection methods and procedures,
advertising techniques, marketing plans and methods, sales techniques,
documentation, contracts, reports, letters, notes, any computer media, customer
lists and all other information and materials of the Company’s business and
operations, shall remain the exclusive and confidential property of the Company
and shall be returned, along with any copies or notes that the Executive made
thereof or therefrom, to the Company when the Executive ceases his employment
with the Company.

 

(b)                                 Non-Competition. 
The Executive hereby covenants and
agrees that at no time during the Executive’s employment with Company and for a
period of two (2) years immediately following termination of the Executive’s
employment with the Company, whether voluntary or involuntary, shall the
Executive (i) develop, own, manage, operate, or otherwise engage in,
participate in, represent in any way or be connected with, as officer,
director, partner, owner, employee, agent, independent contractor, consultant,
proprietor, stockholder (except for the ownership of a less than 1% stock
interest in a publicly traded company), or otherwise, any business or activity
competing with the Company or its affiliates such that he performs duties
similar to those performed while employed by the Company or otherwise acts in
any capacity similar to the capacity in which the Executive served the Company,
or in any capacity in which the Executive may use or disclose any Confidential
Information, or use, profit from, or enable others to use or profit from the
Company’s goodwill or any goodwill developed by the Executive while an employee
of the Company, within any geographic area in which the Company does or plans
to do business while the Executive was employed, including but not limited to
the United States, Canada and Japan; (ii) act in any way, directly or
indirectly, with the purpose or effect of soliciting, diverting or taking away
any business, customer, client or any supplier of the Company; or (iii) otherwise
compete with Company in the sale or licensing, directly or indirectly, as
principal, agent or otherwise, of any products competitive with the products,
or services competitive with the services, developed or marketed by Company
within any geographic area in which the Company does or plans to do business
while the Executive was employed, including but not limited to the United
States, Canada and

 

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Japan. 
The Executive acknowledges that he will provide unique services to the
Company and that this covenant has unique, substantial, and immeasurable value
to the Company.

 

(c)                                  Non-Solicitation and Non-Interference with Customers and
Other Business Relationships.  The Executive hereby covenants and agrees
that at no time during the Executive’s employment with the Company and for a
period of two (2) years immediately following termination of the Executive’s
employment with the Company, whether voluntary or involuntary, shall the
Executive (i) solicit (other than on behalf of the Company) business or
contracts for any products or services of the type provided, developed or under
development by the Company during the Executive’s employment by the Company,
from or with (x) any person or entity which was a customer of the Company for
such products or services as of, or within one year prior to the Executive’s
date of termination of employment with the Company, or (y) any prospective
customer which the Company had solicited as of, or within one year prior to the
Executive’s termination of employment with the Company or (ii) directly or
indirectly contract with any such customer or prospective customer for any
product or service of the type provided, developed or which was under
development by the Company during the Executive’s employment with the
Company.  Further, the Executive shall
not during the Executive’s employment with the Company and for a period of two (2) years
immediately following termination of the Executive’s employment with the
Company, whether voluntary or involuntary, knowingly interfere or attempt to
interfere with any transaction, agreement or business relationship in which the
Company was involved during the Executive’s employment with the Company.

 

(d)                                 Non-solicitation or hiring of employees.  The Executive hereby covenants and agrees that at no time during
the Executive’s employment with the Company and for a period of two (2) years
immediately following termination of the Executive’s employment with the
Company, whether voluntary or involuntary, will the Executive act in any way
with the purpose or effect of (i) hiring anyone who has been an employee
of the Company, its divisions or subsidiaries within the preceding six (6) months
or (ii) soliciting, recruiting or encouraging, directly or indirectly, any
of the Company’s employees to leave the employ of the Company, its divisions or
its subsidiaries.

 

12.                               Discoveries, Inventions, Trade Secrets, Trade
Names, Copyrights, and Patents.  As part of the rights granted herein to the
Company, the Executive agrees that all right, title and interest of any kind
and nature whatsoever in and to any inventions, product, know-how, trade
secrets, patents, trademarks, methods, procedures, copyrights, seminars,
discoveries, improvements, ideas, creations, and other technical properties,
whether or not patentable or subject to rights of copyright and/or trademark,
which are conceived or made by the Executive during the Term, and which are
related to any of the business and/or activities of the Company and any other lines of business which the Company
subsequently pursues in any form to include but not be limited to a strategic
plan, research, feasibility studies, development, manufacturing, and customer
contact (including but not limited to intellectual property, know-how, trade
secrets, and patents in process or granted) or the performance by the Executive
of his services hereunder, shall be considered “Works for Hire” and shall be
and become the sole

 

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and exclusive property of the Company for
all purposes.  The Executive shall
promptly disclose to the Company any such conception or other work product of
the type as is generally described in the immediately preceding sentence.  The Executive agrees to execute any and all
applications, assignments and other written instruments that the Company may
deem necessary and appropriate to confirm the title and interest of the Company
therein and thereto.  The obligations of
the Executive under this Section 12 shall be binding upon his assignees,
employers, other corporate or research affiliates, executors, administrators
and heirs.  The grant, transfer and
assignment to the Company by the Executive of rights to intellectual properties
shall remain effective for such periods of time as applicable law may permit
with respect to the ownership of any such intellectual property or materials.

 

13.                               Enforcement; Remedies.   The Executive understands and agrees that he
will provide unique services to the Company and that the restrictions contained
in Sections 11 and 12 of this Agreement are reasonable, fair, and equitable in
scope, terms, and duration, are necessary to protect the legitimate business
interests, trade secrets, and good will of the Company, and are a material
inducement to the Company to enter into this Agreement, and that any breach or
threatened breach of the restrictions stated in Sections 11 and 12 would cause
the Company substantial and irreparable harm for which there is no adequate
remedy at law.  The Executive further
acknowledges that the restrictions set forth in Sections 11 and 12 may limit
his employment opportunities, but he represents that he will be able to obtain suitable
employment without violating the provisions of Sections 11 and 12.  Therefore, the Executive agrees and consents
to the issuance of injunctive relief in favor of the Company by any court of
competent jurisdiction, where, in the Company’s sole discretion, the Company
has acted upon reasonable information concerning a breach or potential breach
of this Agreement, to enjoin the breach of any of the covenants of the
Executive contained in Sections 11 and 12 of this Agreement.  The Executive will provide the Company a full
accounting of all proceeds and profits received by the Executive as a result of
or in connection with a breach of this Agreement.  Unless prohibited by law, the Company shall
have the right to retain any amounts otherwise payable by the Company to the
Executive to satisfy any obligations of the Executive as a result of any breach
of this Agreement.  The Executive hereby
agrees to indemnify and hold harmless the Company from and against any damages
incurred by the Company as assessed by a court of competent jurisdiction as a
result of any breach of Sections 11 and 12 of this Agreement by the
Executive.  Nothing contained in this Section shall
invalidate or waive any other rights or remedies which the Company may have at
law or in equity.

 

14.                               Change in Control. 
Notwithstanding any
other provisions of this Agreement, the Company agrees that in the event a
Change of Control (as hereinafter defined) occurs and the Executive leaves the
employ of the Company and the combined entity for whatever reason (other than (i) termination
for Cause, (ii) death, (iii) Inability to Perform as described in Section 9(f) of
this Agreement or (iv) by Executive for any reason other than Good
Reason):

 

(a)                                  If
the termination occurs within twelve (12) months after a Change of Control, the
Company shall continue to pay the Executive’s Base Salary through

 

9

 

the thirty-sixth (36th) full
month following the effective date of termination.  In addition, the Executive shall be entitled
to a Bonus based on the EBITDA for the fiscal year in which the termination
occurs, calculated in accordance with Section 4 hereof, provided that the
Bonus shall be pro-rated based on the Executive’s length of service with the
Company in that fiscal year.  Any Bonus
shall be paid to the Executive no later than 120 days after the end of the
fiscal year in which the termination occurs, and any such Bonus will be subject
to such deductions and withholdings as are required by law and applicable regulations

 

(b)                                 To
the extent the Executive remains eligible, for twelve (12) months after
termination of his employment, the Company shall continue to allow the
Executive to remain covered by all applicable noncash benefit plans of the
Company, except for the retirement plans or retirement programs in which the
Executive participates or any successor plans or programs in effect on the date
of a Change in Control; provided, however, that if during such time the
Executive should enter into the employment of a competitor of the Company,
participation in such noncash benefit plans would cease.  In the event the Executive is ineligible
under the terms of such plans to continue to be so covered, the Company shall
use its best efforts to provide substantially equivalent coverage through other
sources.  If the Company is unable to
provide substantially equivalent coverage through other sources, then the
Company shall pay in cash to the Executive the amount the Company would have
had to expend to provide such coverage assuming standard risk.

 

(c)                                  The
Executive’s payments received hereunder shall be considered severance pay in
consideration of past service, continued service from the date of this
Agreement, and full adherence to all restrictions that survive the termination
of this Agreement, and entitlement thereto shall not be governed by any duty to
mitigate damages by seeking further employment nor offset by any compensation
which may be received from future employment.

 

(d)                                 The
Executive’s payments received hereunder shall be in lieu of any payments or
other benefits that the Executive would be entitled to receive pursuant to
Sections 10(a) or 10(c) of this Agreement.

 

(e)                                  The
specific arrangements referred to above are not intended to exclude the
Executive’s participation in other benefits available to executive personnel
generally or to preclude other compensation or benefits as may be authorized by
the Board from time to time, or as a result of the Change of Control.

 

(f)                                    This
Section shall be binding upon and shall inure to the benefit of the
respective successors, assigns, legal representatives and heirs to the Parties
hereto.

 

(g)                                 For
the purpose of this Agreement, a “Change of Control” shall mean: (i) a
merger, reorganization or consolidation of the Company into or with another
entity, a sale of stock or other similar transaction or series of related
transactions in which the stockholders of the Company immediately prior to such
merger, reorganization, consolidation, sale of stock or similar transaction own
less than a majority of the surviving

 

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entity’s voting securities immediately after such
merger, reorganization, consolidation, sale of stock or other similar
transaction or (ii) the sale, transfer or lease of all or substantially
all of the assets of the Company, including assets of the Company’s
subsidiaries taken as a whole, to an unaffiliated third party in one or a
series of related transactions.

 

15.                               Gross
Up Payments  If the payment provided
under Section 14 of this Agreement (the “Contract Payment”) is subject to
the tax (the “Excise Tax”) imposed by Section 4999 of the Internal Revenue
Code of 1986, as amended (“Code”), the Company shall pay the Executive on or
before the fifth day following the date of termination, an additional amount
(the “Gross-Up Payment”) such that the net amount retained by the Executive,
after deduction of any Excise Tax on the Contract Payment and such other Total
Payments (as defined below) and any federal and state and local income tax and
Excise Tax upon the payment provided for by this Section, shall be equal to the
Contract Payment and such other Total Payments. 
For purposes of determining whether any of the payments will be subject to
the Excise Tax and the amount of such Excise Tax, (i) any other payments
or benefits received or to be received by the Executive in connection with a
Change of Control of the Company or the Executive’s termination of employment,
whether payable pursuant to the terms of this Agreement or any other plan,
arrangement or agreement with the Company, its successors, any person whose
actions result in a Change of Control of the Company or any corporation
affiliated (or which, as a result of the completion of a transaction causing a
Change of Control, will become affiliated) with the Company within the meaning
of Section 1504 of the Code (together with the Contract Payment, the “Total
Payments”) shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of
the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) shall
be treated as subject to the Excise Tax, unless in the opinion of tax counsel
selected by the Company and acceptable to the Executive, whose acceptance shall
not be unreasonably withheld, the Total Payments (in whole or in part) do not
constitute parachute payments, or such excess parachute payments (in whole or
in part) represent reasonable compensation for services actually rendered
within the meaning of Section 280G(b)(4) of the Code either in their
entirety or in excess of the base amount within the meaning of Section 280G(b)(3) of
the Code, or are otherwise not subject to the Excise Tax, (ii) the amount
of the Total Payments that shall be treated as subject to the Excise Tax shall
be equal to the lesser of (A) the total amount of the Total Payments or (B) the
amount of excess parachute payments within the meaning of Section 280G(b)(1) (after
applying clause (i), above), and (iii) the value of any non-cash benefits
or any deferred payment or benefit shall be determined by the Company’s
independent auditors in accordance with the principles of Sections 280G(b)(3) and
(4) of the Code.  For purposes of
determining the amount of the Gross-Up Payment, the Executive shall be deemed
to pay federal income taxes at the highest marginal rate of federal income
taxation in the calendar year in which the Gross-Up Payment is to be made and
state and local income taxes at the highest marginal rate of taxation in the
state and locality of the Executive’s residence on the date of termination, net
of the maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes. 
In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder at the time of termination of the
Executive’s employment, the Executive shall repay to the Company at the time
that the amount of such reduction in Excise Tax is finally determined

 

11

 

the portion of the Gross-Up Payment attributable to
such reduction (plus the portion of the Gross-Up Payment attributable to the
Excise Tax and federal and state and local income tax imposed on the Gross-Up
Payment being repaid by the Executive if such repayment results in a reduction
in Excise Tax and/or a federal state and local income tax deduction) plus
interest on the amount of such repayment at the rate provided in Section 1274(d) of
the Code.  In the event that the Excise
Tax is determined to exceed the amount taken into account hereunder at the time
of the termination of the Executive’s employment (including by reason of any
payment the existence or amount of which cannot be determined at the time of
the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in
respect of such excess (plus any interest payable with respect to such excess)
at the time that the amount of such excess is finally determined.

 

16.                               Termination and Survivability.  This Agreement shall terminate upon the termination
of the Executive’s employment with the Company; provided, however,
that the provisions of Sections 10, 11, 12, 13, 14, 15 and 18 through 29 of
this Agreement shall survive its termination.

 

17.                               Section Titles.  The titles of the sections of this Agreement
are for convenience only and shall not affect the interpretation of any section of
this Agreement.

 

18.                               Waiver.  A waiver by either Party of any of the terms
or conditions of this Agreement in any instance shall not be deemed or
construed to be a waiver of such term or condition for the future, or of any
subsequent breach of this Agreement.  All
remedies, rights, undertakings, obligations and agreements contained in this
Agreement shall be cumulative and none of them shall be in limitation of any other
remedy, right, undertaking, obligation or agreement of either Party.

 

19.                               Severability.  The rights
and restrictions in this Agreement may be exercised and are applicable only to
the extent that they do not violate applicable laws, and are intended to be
limited to the extent necessary so that they will not render this Agreement
illegal, invalid, or unenforceable.  If
any provision of this Agreement shall be deemed to be invalid or unenforceable,
then that provision shall be modified to make it enforceable to the maximum
extent possible, and the remaining provisions of this Agreement shall not be
affected thereby and shall remain in full force and effect.

 

20.                               Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of both Parties and their respective successors and
assigns, including any entity with which or into which the Company may be
merged or which may succeed to its assets or business; provided, however,
that this Agreement requires the personal services of the Executive only, and
the Executive shall not be entitled to assign any portion of his duties or
obligations hereunder.

 

21.                               Notices.  For the purposes of this Agreement, notices,
demands and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when delivered or (unless
otherwise specified) mailed

 

12

 

by United States certified or registered
mail, return receipt requested, postage prepaid, addressed as follows:

 

	
  If to the Executive:

  	
   

  	
  Kevin A. Plank

  
	
   

  	
   

  	
  2901 Boston Street, #511

  
	
   

  	
   

  	
  Baltimore, Maryland 21224

  
	
   

  	
   

  	
   

  
	
  If to the Company:

  	
   

  	
  KP Sports, Inc.

  
	
   

  	
   

  	
  1020 Hull Street, 3rd Floor

  
	
   

  	
   

  	
  Baltimore, Maryland 21230

  

 

22.                               Governing Law.  This Agreement has been made and executed in
the State of Maryland and shall be governed by the laws of Maryland applicable
to contracts fully to be performed therein (but without giving effect to the
conflicts or choice of law provisions of this Agreement that would give rise to
the application of the domestic substantive law of any other jurisdiction).

 

23.                               Waiver of Jury Trial.  THE PARTIES HEREBY WAIVE THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT
MATTER OF THIS TRANSACTION.  THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE
FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
AGREEMENT.  EACH OF THE PARTIES
REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL. 
THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED
EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS TO (OR ASSIGNMENTS OF) THIS
AGREEMENT.  IN THE EVENT OF LITIGATION,
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL (WITHOUT A
JURY) BY THE COURT.

 

24.                               Consent to Jurisdiction.  (a) 
EACH OF THE PARTIES HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE COURTS
OF MARYLAND AND THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF THE STATE
OF MARYLAND SITTING IN BALTIMORE CITY, MARYLAND, AS WELL AS TO THE JURISDICTION
OF ALL COURTS TO WHICH AN APPEAL MAY BE TAKEN FROM SUCH COURTS, FOR THE
PURPOSE OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF, OR IN
CONNECTION WITH, THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(b)                                 EACH PARTY HEREBY EXPRESSLY WAIVES ANY AND ALL
RIGHTS TO BRING ANY SUIT, ACTION OR OTHER PROCEEDING

 

13

 

IN OR BEFORE
ANY COURT OR TRIBUNAL OTHER THAN THE COURTS OF THE STATE OF MARYLAND AND COVENANTS
THAT IT SHALL NOT SEEK IN ANY MANNER TO RESOLVE ANY DISPUTE OTHER THAN AS SET
FORTH IN THIS SECTION 24 OR TO CHALLENGE OR SET ASIDE ANY DECISION, AWARD
OR JUDGMENT OBTAINED IN ACCORDANCE WITH THE PROVISIONS HEREOF.

 

(c)                                  EACH OF THE PARTIES EXPRESSLY WAIVES ANY AND
OBJECTIONS IT MAY HAVE TO VENUE, INCLUDING, WITHOUT LIMITATION, THE
INCONVENIENCE OF SUCH FORUM, IN ANY OF SUCH COURTS.  IN ADDITION, EACH OF THE PARTIES CONSENTS TO
THE SERVICE OF PROCESS BY PERSONAL SERVICE OR ANY MANNER IN WHICH NOTICES MAY BE
DELIVERED HEREUNDER IN ACCORDANCE WITH SECTION 21.

 

25.                               Entire Agreement.  This Agreement constitutes the entire
agreement of the Parties and supersedes any and all previous agreements between
the Parties relating to the subject matter hereof, including the Employment
Agreement between the Company and the Executive dated September 30, 2001
(the “Prior Agreement”).  Upon the
execution by the Parties of this Agreement, the Prior Agreement immediately
shall be terminated and of no further force and effect.  This Agreement may not be modified orally,
but only by an agreement in writing supplied by the party against whom
enforcement of any waiver, change, modification, extension, or discharge is
sought.

 

26.                               Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall
deemed to be an original but all of which together will constitute one and the
same instrument.

 

27.                               Legal Expenses.  In
the event that any legal action is
pursued to enforce any term or provision of this Agreement, including but not
limited to any action seeking injunctive relief to prevent breach or reasonably
anticipated breach of any term or provision of this Agreement, the prevailing
party shall be entitled to recover all costs and expenses incurred thereby,
specifically including reasonable attorneys’ fees.

 

28.                               Representations of the Executive.  The Executive hereby represents to the
Company as follows: (i) he is not bound by the terms of any agreement with
any previous employer or other party to refrain from using or disclosing any
trade secret or confidential or proprietary information in the course of his
employment with the Company or to refrain from competing, directly or
indirectly, with the business of such previous employer or other party, (ii) his
performance of all of the terms of this Agreement and as an employee of the
Company does not and will not breach any agreement to keep in confidence
proprietary information, knowledge or data acquired by him in confidence or in
trust prior to his employment with the Company, (iii) he has carefully
read this Agreement, understands the contents herein, and freely and
voluntarily assents to all of the terms and conditions of this Agreement, and (iv) he
has had an opportunity to fully discuss and review the terms of this Agreement
with an attorney

 

14

 

29.                               Miscellaneous.  The Parties agree to execute all other such
documents as may be required to effectuate or more readily carry out the
provisions of this Agreement.

 

15

 

IN WITNESS WHEREOF, the
Executive and the Company have executed this Agreement.

 

	
  COMPANY:

  	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
  KP SPORTS, INC.

  	
   

  	
  Kevin A. Plank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ J. S. Plank

  	
   

  	
   

  	
  /s/ Kevin A. Plank

  	
   

  
	
   

  	
   

  	
  Kevin A. Plank

  
	
  Name:

  	
  J. S. Plank

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  September 30, 2003

  	
   

  
	
  Title:

  	
  VP Finance

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  9/30/05

  	
   

  	
   

  	
   

  
									

 

16Exhibit 10.04

 

Execution Copy

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This Executive
Employment Agreement (this “Agreement”) is made effective September 30,
2003, by and between KP Sports, Inc., a Maryland corporation doing
business as Under Armour Performance Apparel (hereinafter, the “Company”), and
J. Scott  Plank (hereinafter, the “Executive”).  For purposes hereof, the Company and the
Executive are referred to collectively as the “Parties” and, individually, as a
“Party.”

 

RECITALS

 

WHEREFORE,
the Company desires to employ the Executive as Vice President of Finance,
subject to the terms and provisions of this Agreement, and the Executive
desires such employment with the Company, subject to the terms and provisions
of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties agree as follows:

 

1.                                      Term.  Unless earlier terminated as provided herein,
the Company hereby agrees to employ the Executive and the Executive hereby
accepts such employment for a five year period commencing September 30,
2003 and ending on September 30, 2006, upon the terms and conditions
hereinafter set forth.  Commencing on September 30,
2006 and each September 30th thereafter, the Term (as defined below) shall
automatically be extended for one additional year, unless the Executive’s
employment with the Company has been previously terminated pursuant to Section 9
of this Agreement or unless the Executive or the Company shall have given
written notice to the other at least sixty (60) days prior thereto that the
Term shall not be so extended.  For the
purposes of this Agreement, the employment term as defined in this Section,
including any extension thereof, shall be the “Term.”

 

2.                                      Duties.  During the Term, the Executive shall serve as
Vice President of Finance (hereinafter, “Vice President of Finance”) of the
Company and shall report to, and have those duties, responsibilities, and
authority assigned him from time to time by, the Chief Executive Officer of the
Company (hereinafter, the “CEO”).  The
Executive shall have the powers and authority consistent with such
responsibilities, duties, and authority. 
The Executive shall devote substantially all his working time,
attention, knowledge, and skills faithfully, diligently, and to the best of his
ability, in furtherance of the business and activities of the Company.  During the Term, the Executive shall refrain
from engaging in any activity which is or may be contrary to the welfare,
interests, or benefits of the Company and from engaging in any activity which
is or may be competitive with the activities of the Company.  Nothing in this Section shall preclude
the Executive from engaging in charitable, professional, and community
activities, in each case as long as such

 

1

 

activities do not interfere, conflict, or
give the appearance of conflicting in any way with the Executive’s performance
under this Agreement.  In addition, the
Executive shall be permitted to perform incidental duties and responsibilities
for his family investments provided that such family business duties shall not
interfere with his duties to the Company. 
The Executive agrees to abide by the rules, regulations, instructions,
personnel practices and policies of the Company and any changes therein that
may be adopted from time to time by the Company, and the Executive acknowledges
receipt of copies of all such rules, regulations, instructions, personnel
practices and policies of the Company committed to writing as of the date of
this Agreement.

 

3.                                      Base Salary.  In consideration for the services to be
rendered by the Executive hereunder and for all rights and covenants granted
herein, the Company shall pay to the Executive a gross salary at a rate of
$160,000 per year (hereinafter, the “Base Salary”).  This Base Salary shall be paid in equal
monthly or bi-weekly installments, in accordance with the customary payroll
practices of the Company and subject to such deductions and withholdings as are
required by law and applicable regulations. 
This Base Salary may be adjusted from time to time at the discretion of
the CEO or the Compensation Committee of the Board (the “Compensation Committee”)
or the Board of Directors of the Company (the “Board”) if there is no
Compensation Committee.

 

4.                                      Bonus.  The Executive shall be eligible to receive an
annual bonus.  The actual bonus amount,
if any, will be determined by the CEO or the Compensation Committee, or the
Board if there is no Compensation Committee, in his or its sole discretion
based upon certain factors including the Company’s performance and the
Executive’s performance.  Any bonus
payment will be subject to such deductions and withholdings as are required by
law and applicable regulations.  The
Executive understands that the Company is not obligated under this Agreement to
pay any bonus to the Executive, and further that the payment of a bonus under
this Section by the Company does not establish any obligation or duty on
the part of the Company to continue such bonus payment.

 

5.                                      Equity Incentives.  The Executive will be eligible in the sole
discretion of the Compensation Committee, or the Board if there is no
Compensation Committee, to receive equity incentives pursuant to the Company’s
Stock Incentive Plan.  All awards
pursuant to the Company’s Stock Incentive 
Plan shall be subject to the terms and provisions of that plan, or any
similar plan, and any award agreement with respect to such award.  The vesting, exercisability and termination
provisions regarding such awards shall be subject to the terms and provisions
of the Company’s Stock Incentive Plan, or other similar plan, pursuant to which
the award was made, and the corresponding award agreement.

 

6.                                      Employee Benefits.   The Executive shall be entitled to
participate in or receive benefits under any employee benefit plan, arrangement
or perquisite generally made available by the Company from time to time to all
of its executives and key management employees, subject to and on a basis
consistent with the terms, conditions and overall administration of such plans,
arrangements and perquisites.  Any
payments or benefits payable to the Executive hereunder in respect of any year
during which the

 

2

 

Executive is employed by the Company for
less than the entire such year shall, unless otherwise provided in the
applicable plan or arrangement be prorated in accordance with the number of
days in such year during which he is so employed.  Nothing contained in this Agreement shall
prevent the Company from changing insurance carriers or from effecting
modifications in insurance coverage for the Executive.  The Executive shall also receive an
automobile allowance of $1,000 per month.

 

7.                                      Vacations; Holidays.  The
Executive shall be entitled to vacation days in accordance with the applicable
vacation policies for senior executives of the Company established by the
Board, which shall be no less than three (3) weeks per year and which
shall be taken at a reasonable time or times. 
The Executive shall be entitled to all public holidays observed by the
Company.

 

8.                                      Reimbursement of Expenses. 
The Company shall
reimburse the Executive for all reasonable business expenses paid or incurred
by the Executive in connection with the performance of his duties and
responsibilities under this Agreement, upon presentation by the Executive of
documentation, expense statements, vouchers and/or such other supporting
information as the Company may reasonably request.

 

9.                                      Termination.  Notwithstanding the provisions of Section 1
hereof, the Executive’s employment with the Company shall terminate upon the
occurrence of any of the following:

 

(a) expiration
or non-extension of the Term in accordance with Section 1;

 

(b) at
any time during the Term, the Company may terminate the Executive’s employment
with the Company for Cause upon written notice to the Executive, which
termination shall be effective immediately upon such written notice except as
otherwise provide in this Section 9(b). 
For purposes hereof, “Cause” shall be defined as any of the following: (i) the
Executive’s willful material misconduct or neglect in the performance of his
duties as determined by the Board; (ii) the Executive’s conviction by a
court of competent jurisdiction, or the entry of a plea of guilty or nolo
contendere by the Executive, of any felony, offense punishable by imprisonment
in a state or federal penitentiary, or any offense, civil or criminal,
involving material dishonesty, fraud, moral turpitude or immoral conduct; (iii) the
Executive’s use of illegal drugs or abusive use of prescription drugs as
determined by a licensed physician or physicians designated by the Company to
examine the Executive; or (iv) the Executive’s willful material breach of
this Agreement as determined by the Board, which breach is not cured within
thirty (30) days after the Executive’s receipt of written notice from the
Company specifying such breach and demanding a cure thereof; or (v) any
conduct that is materially injurious to the reputation, business or business
relationships of the Company;

 

(c) at
any time during the Term, the Executive may terminate his employment with the
Company for “Good Reason” upon written notice to the Company, which termination
shall be effective as provided in this Section 9(c).  For the purposes of this Agreement, “Good
Reason” shall mean (i) the Company’s failure to perform or observe

 

3

 

any of the material terms or provisions
of this Agreement and the continued failure of the Company to cure such default
within thirty (30) days after written demand for performance has been given to
the Company by the Executive, which demand shall describe specifically the
nature of such alleged failure to perform or observe such material terms or
provisions, (ii) a material reduction in the scope of the Executive’s
duties, authority, responsibilities or title as in effect immediately prior to
such reduction; (iii) the Company’s assignment to the Executive of duties
which are materially inconsistent with the Executive’s position as Vice
President of Finance; (iv) a material reduction by the Company in the
Executive’s Base Salary, in the formula for determining the Bonus or in any
other benefits made available to other senior executives of the Company; or (v) the
Executive’s relocation to a facility or a location more than fifty (50) miles
from the then present location without the Executive’s prior written consent,
and in each case the failure of the Company to cure the same within thirty (30)
days after receipt of written notice thereof from the Executive specifying such
Good Reason and demanding cure thereof;

 

(d) 
at any time during the Term, the Company may terminate the Executive’s
employment with the Company for any reason other than Cause, which termination
shall be effective upon thirty (30) days prior written notice to the Executive;

 

(e) 
at any time during the Term, the Executive may terminate his employment with
the Company for any reason other than Good Reason, which termination shall be
effective upon thirty (30) days prior written notice to the Company; or

 

(f) at
any time during the Term upon the Executive’s death or Inability to Perform (as
defined herein), which termination shall be effective immediately upon the
Executive’s death or written notice by either Party of the Executive’s
Inability to Perform.  For the purposes
of this Agreement, “Inability to Perform” shall mean the Executive’s inability
to perform all of the Executive’s duties hereunder by reason of illness,
physical or mental incapacity or other similar condition, as determined by the
Board in its sole discretion, which inability shall exist for more than ninety
(90) days.

 

10.                               Effect of Termination.

 

(a)  Termination due
to expiration or
non-extension of the Term pursuant to Section 1.  Upon termination of the Executive’s
employment due to expiration or non-extension of the Term as described in Section 9(a) of
this Agreement by the Company, the Company shall continue to pay the Executive’s
Base Salary through the twelfth (12th) full month following the effective date
of the termination and pay the Executive’s COBRA premiums, on the same terms as
existed before termination, if the Executive elects and continues COBRA
coverage in connection with the health benefits plan that covered him as an
employee, through the twelfth (12th) full month following the
effective date of termination.  The
Company shall have no further obligation or duties to the Executive except as
provided in this Section 10(a), and the Executive shall have no further
obligations or duties to the Company except as provided in Sections 11, 12, and
13 of this Agreement.  The Executive’s
entitlement to amounts owing pursuant to this Agreement shall not be dependent
upon the Executive’s efforts to “mitigate” loss or to find other employment,
nor shall the amounts owing pursuant to this Agreement be subject to

 

4

 

offset by compensation earned from a subsequent
employer, provided, however, that the Company’s obligation to continue to
provide the Executive with payments equal to the premiums for COBRA benefits
shall cease if the Executive becomes eligible to participate in a health
benefits arrangement as an employee that is substantially similar to those
provided for under the COBRA continuation coverage.  Any benefits pursuant to this Section 10(a) are
contingent on the Executive’s executing an agreement containing a general
release of claims against the Company, in a form acceptable to the Company.

 

(b)  Termination by the Company for Cause or by the Executive for any reason
other than Good Reason.  Upon
termination of the Executive’s employment by the Company for Cause, as
described in Section 9(b) of this Agreement, or by the Executive for
any reason other than Good Reason, as described in Section 9(e) of
this Agreement, the Executive shall be entitled to only his Base Salary and
benefits up to the date of the termination of his employment, and the Company
shall have no further obligation or duties to the Executive except as provided
in this Section 10(b), and the Executive shall have no further obligation
or duties to the Company except as provided in Sections 11, 12 and 13.

 

(c) 
Termination by the Company other than for Cause or by the Executive for Good
Reason.  Upon termination of the
Executive’s employment by the Company for any reason other than Cause, as
described in Section 9(d) of 
this Agreement, or by the Executive for Good Reason, as described in Section 9(c) of
this Agreement, the Company shall continue to pay the Executive’s Base Salary
and pay the Executive’s COBRA premiums, on the same terms as existed before
termination, if the Executive elects and continues COBRA coverage in connection
with the health benefits plan that covered him as an employee, through the
twelfth (12th) full month following the effective date of
termination (hereinafter, the “Severance Period”), and the Executive shall have
no further obligations or duties to Company except as provided in
Sections 11, 12, and 13 of this Agreement. 
The Executive’s entitlement to amounts owing pursuant to this Agreement
shall not be dependent upon the Executive’s efforts to “mitigate” loss or to
find other employment, nor shall the amounts owing pursuant to this Agreement
be subject to offset by compensation earned from a subsequent employer,
provided, however, that the Company’s obligation to continue to provide the
Executive with payments equal to the premiums for COBRA benefits shall cease if
the Executive becomes eligible to participate in a health benefits arrangement
as an employee that is substantially similar to those provided for under the
COBRA continuation coverage.  Any
benefits pursuant to this Section 10(c) are contingent on the
Executive’s executing an agreement containing a general release of claims
against the Company, in a form acceptable to the Company.

 

(d) 
Termination Due to the Executive’s Death or Inability to Perform.  If the Executive’s employment is terminated
by his death or by reason of his Inability to Perform, the Company shall pay to
the estate of the Executive or to the Executive, as the case may be, the Base
Salary and benefits up to the date of the termination of his termination of
employment with the Company and the Company shall have no further obligation or
duties to the Executive or to his estate or to his beneficiaries.

 

5

 

11.                               Restrictive Covenants.

 

(a)                                  Confidentiality. 
During the Term and
continuing subsequent to any termination of the Executive’s employment with the
Company, the Executive shall maintain Confidential Information, as defined in Section 11(a)(i) below,
as secret and confidential unless the Executive is required to disclose
Confidential Information pursuant to the terms of a valid and effective order
issued by a court of competent jurisdiction or a governmental authority.  The Executive shall use Confidential
Information solely for the purpose of carrying out those duties assigned him as
an employee of the Company and not for any other purpose.  The disclosure of Confidential Information to
the Executive shall not be construed as granting to the Executive any license
under any copyright, trade secret or any right of ownership or right to use the
Confidential Information whatsoever.

 

(i)                                     For
the purposes of this Section 11, “Confidential Information” shall mean all
information related to the Company’s business that is not generally known to
the public. Confidential Information shall include, but shall not be limited
to: (w) any financial, business, planning, operations, services, potential
services, products, potential products, technical information, intellectual
property, trade secrets and/or know-how, formulas, production, purchasing,
marketing, sales, personnel, customer, supplier, or other information of the
Company; (x) any papers, data, records, processes, methods, techniques,
systems, models, samples, devices, equipment, compilations, invoices, customer
lists, or documents of the Company; (y) any confidential information or
trade secrets of any third party provided to the Company in confidence or
subject to other use or disclosure restrictions or limitations; and
(z) any other information, written, oral or electronic, whether existing
now or at some time in the future, whether pertaining to current or future
developments, and whether accessed prior to the Executive’s tenure with the
Company or to be accessed during his future employment or association with the
Company, which pertains to the Company’s affairs or interests or with whom or
how the Company does business.  The
Company acknowledges and agrees that Confidential Information shall not include
information which is or becomes publicly available other than as a result of a
disclosure by the Executive.

 

(ii)                                  The
Executive shall promptly notify the Company if he has reason to believe that
the unauthorized use, possession, or disclosure of any Confidential Information
has occurred or may occur.

 

(iii)                               All
physical items containing Confidential Information, including, without
limitation, the business plan, know-how, collection methods and procedures,
advertising techniques, marketing plans and methods, sales techniques,
documentation, contracts, reports, letters, notes, any computer media, customer
lists and all other information and materials of the Company’s business and
operations, shall remain the exclusive and confidential property of the Company
and shall be returned, along with any copies or notes that the Executive made
thereof or therefrom, to the Company when the Executive ceases his employment
with the Company.

 

(b)                                 Non-Competition. 
The Executive hereby covenants and
agrees that at no time during the Executive’s employment with Company and for a
period of two (2) years immediately following termination of the Executive’s
employment with the

 

6

 

Company, whether voluntary or
involuntary, shall the Executive (i) develop, own, manage, operate, or
otherwise engage in, participate in, represent in any way or be connected with,
as officer, director, partner, owner, employee, agent, independent contractor,
consultant, proprietor, stockholder (except for the ownership of a less than 1%
stock interest in a publicly traded company), or otherwise, any business or
activity competing with the Company or its affiliates such that he performs
duties similar to those performed while employed by the Company or otherwise
acts in any capacity similar to the capacity in which the Executive served the
Company, or in any capacity in which the Executive may use or disclose any
Confidential Information, or use, profit from, or enable others to use or
profit from the Company’s goodwill or any goodwill developed by the Executive
while an employee of the Company, within any geographic area in which the
Company does or plans to do business while the Executive was employed,
including but not limited to the United States, Canada and Japan; (ii) act
in any way, directly or indirectly, with the purpose or effect of soliciting,
diverting or taking away any business, customer, client or any supplier of the
Company; or (iii) otherwise compete with Company in the sale or licensing,
directly or indirectly, as principal, agent or otherwise, of any products
competitive with the products, or services competitive with the services,
developed or marketed by Company within any geographic area in which the
Company does or plans to do business while the Executive was employed,
including but not limited to the United States, Canada and Japan.  The Executive acknowledges that he will
provide unique services to the Company and that this covenant has unique,
substantial, and immeasurable value to the Company.

 

(c)                                  Non-Solicitation and Non-Interference with Customers and
Other Business Relationships.  The Executive hereby covenants and agrees
that at no time during the Executive’s employment with the Company and for a
period of two (2) years immediately following termination of the Executive’s
employment with the Company, whether voluntary or involuntary, shall the
Executive (i) solicit (other than on behalf of the Company) business or
contracts for any products or services of the type provided, developed or under
development by the Company during the Executive’s employment by the Company,
from or with (x) any person or entity which was a customer of the Company for
such products or services as of, or within one year prior to the Executive’s
date of termination of employment with the Company, or (y) any prospective
customer which the Company had solicited as of, or within one year prior to the
Executive’s termination of employment with the Company or (ii) directly or
indirectly contract with any such customer or prospective customer for any
product or service of the type provided, developed or which was under
development by the Company during the Executive’s employment with the
Company.  Further, the Executive shall
not during the Executive’s employment with the Company and for a period of two (2) years
immediately following termination of the Executive’s employment with the
Company, whether voluntary or involuntary, knowingly interfere or attempt to
interfere with any transaction, agreement or business relationship in which the
Company was involved during the Executive’s employment with the Company.

 

(d)                                 Non-solicitation or hiring of employees.  The Executive hereby covenants and agrees that at no time during
the Executive’s employment with the Company and for a period of two (2) years
immediately following termination of the

 

7

 

Executive’s employment with the Company, whether
voluntary or involuntary, will the Executive act in any way with the purpose or
effect of (i) hiring anyone who has been an employee of the Company, its
divisions or subsidiaries within the preceding six (6) months or (ii) soliciting,
recruiting or encouraging, directly or indirectly, any of the Company’s
employees to leave the employ of the Company, its divisions or its
subsidiaries.

 

12.                               Discoveries, Inventions, Trade Secrets, Trade
Names, Copyrights, and Patents.  As part of the rights granted herein to the
Company, the Executive agrees that all right, title and interest of any kind
and nature whatsoever in and to any inventions, product, know-how, trade
secrets, patents, trademarks, methods, procedures, copyrights, seminars,
discoveries, improvements, ideas, creations, and other technical properties,
whether or not patentable or subject to rights of copyright and/or trademark,
which are conceived or made by the Executive during the Term, and which are
related to any of the business and/or activities of the Company and any other lines of business which the Company
subsequently pursues in any form to include but not be limited to a strategic
plan, research, feasibility studies, development, manufacturing, and customer
contact (including but not limited to intellectual property, know-how, trade
secrets, and patents in process or granted) or the performance by the Executive
of his services hereunder, shall be considered “Works for Hire” and shall be
and become the sole and exclusive property of the Company for all
purposes.  The Executive shall promptly
disclose to the Company any such conception or other work product of the type
as is generally described in the immediately preceding sentence.  The Executive agrees to execute any and all
applications, assignments and other written instruments that the Company may
deem necessary and appropriate to confirm the title and interest of the Company
therein and thereto.  The obligations of
the Executive under this Section 12 shall be binding upon his assignees,
employers, other corporate or research affiliates, executors, administrators
and heirs.  The grant, transfer and
assignment to the Company by the Executive of rights to intellectual properties
shall remain effective for such periods of time as applicable law may permit
with respect to the ownership of any such intellectual property or materials.

 

13.                               Enforcement; Remedies.   The Executive understands and agrees that he
will provide unique services to the Company and that the restrictions contained
in Sections 11 and 12 of this Agreement are reasonable, fair, and equitable in
scope, terms, and duration, are necessary to protect the legitimate business
interests, trade secrets, and good will of the Company, and are a material
inducement to the Company to enter into this Agreement, and that any breach or
threatened breach of the restrictions stated in Sections 11 and 12 would cause
the Company substantial and irreparable harm for which there is no adequate
remedy at law.  The Executive further
acknowledges that the restrictions set forth in Sections 11 and 12 may limit
his employment opportunities, but he represents that he will be able to obtain
suitable employment without violating the provisions of Sections 11 and
12.  Therefore, the Executive agrees and
consents to the issuance of injunctive relief in favor of the Company by any
court of competent jurisdiction, where, in the Company’s sole discretion, the
Company has acted upon reasonable information concerning a breach or potential
breach of this Agreement, to enjoin the breach of any of the covenants of the
Executive contained in Sections 11 and 12 of this Agreement.  The Executive will provide

 

8

 

the Company a full accounting of all
proceeds and profits received by the Executive as a result of or in connection
with a breach of this Agreement.  Unless
prohibited by law, the Company shall have the right to retain any amounts
otherwise payable by the Company to the Executive to satisfy any obligations of
the Executive as a result of any breach of this Agreement.  The Executive hereby agrees to indemnify and
hold harmless the Company from and against any damages incurred by the Company
as assessed by a court of competent jurisdiction as a result of any breach of
Sections 11 and 12 of this Agreement by the Executive.  Nothing contained in this Section shall
invalidate or waive any other rights or remedies which the Company may have at
law or in equity.

 

14.                               Change in Control. 
Notwithstanding any
other provisions of this Agreement, the Company agrees that in the event a
Change of Control (as hereinafter defined) occurs and the Executive leaves the
employ of the Company and the combined entity for whatever reason (other than (i) termination
for Cause, (ii) death, (iii) Inability to Perform as described in Section 9(f) of
this Agreement or (iv) by Executive for any reason other than Good
Reason):

 

(a)                                  If
the termination occurs within twelve (12) months after a Change of Control, the
Company shall continue to pay the Executive’s Base Salary through the
thirty-sixth (36th) full month following the effective date of
termination.  In addition, the Executive
shall be entitled to a Bonus based on the EBITDA for the fiscal year in which
the termination occurs, calculated in accordance with Section 4 hereof,
provided that the Bonus shall be pro-rated based on the Executive’s length of
service with the Company in that fiscal year. 
Any Bonus shall be paid to the Executive no later than 120 days after
the end of the fiscal year in which the termination occurs, and any such Bonus
will be subject to such deductions and withholdings as are required by law and
applicable regulations

 

(b)                                 To
the extent the Executive remains eligible, for twelve (12) months after
termination of his employment, the Company shall continue to allow the
Executive to remain covered by all applicable noncash benefit plans of the
Company, except for the retirement plans or retirement programs in which the
Executive participates or any successor plans or programs in effect on the date
of a Change in Control; provided, however, that if during such time the
Executive should enter into the employment of a competitor of the Company,
participation in such noncash benefit plans would cease.  In the event the Executive is ineligible
under the terms of such plans to continue to be so covered, the Company shall
use its best efforts to provide substantially equivalent coverage through other
sources.  If the Company is unable to
provide substantially equivalent coverage through other sources, then the
Company shall pay in cash to the Executive the amount the Company would have
had to expend to provide such coverage assuming standard risk.

 

(c)                                  The
Executive’s payments received hereunder shall be considered severance pay in
consideration of past service, continued service from the date of this
Agreement, and full adherence to all restrictions that survive the termination
of this Agreement, and entitlement thereto shall not be governed by any duty to
mitigate damages by seeking further employment nor offset by any compensation
which may be received from future employment.

 

9

 

(d)                                 The
Executive’s payments received hereunder shall be in lieu of any payments or
other benefits that the Executive would be entitled to receive pursuant to
Sections 10(a) or 10(c) of this Agreement.

 

(e)                                  The
specific arrangements referred to above are not intended to exclude the
Executive’s participation in other benefits available to executive personnel
generally or to preclude other compensation or benefits as may be authorized by
the Board from time to time, or as a result of the Change of Control.

 

(f)                                    This
Section shall be binding upon and shall inure to the benefit of the
respective successors, assigns, legal representatives and heirs to the Parties
hereto.

 

(g)                                 For
the purpose of this Agreement, a “Change of Control” shall mean: (i) a
merger, reorganization or consolidation of the Company into or with another
entity, a sale of stock or other similar transaction or series of related
transactions in which the stockholders of the Company immediately prior to such
merger, reorganization, consolidation, sale of stock or similar transaction own
less than a majority of the surviving entity’s voting securities immediately
after such merger, reorganization, consolidation, sale of stock or other
similar transaction or (ii) the sale, transfer or lease of all or
substantially all of the assets of the Company, including assets of the Company’s
subsidiaries taken as a whole, to an unaffiliated third party in one or a
series of related transactions.

 

15.                               Gross
Up Payments                                      If
the payment provided under Section 14 of this Agreement (the “Contract
Payment”) is subject to the tax (the “Excise Tax”) imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (“Code”), the Company shall
pay the Executive on or before the fifth day following the date of termination,
an additional amount (the “Gross-Up Payment”) such that the net amount retained
by the Executive, after deduction of any Excise Tax on the Contract Payment and
such other Total Payments (as defined below) and any federal and state and
local income tax and Excise Tax upon the payment provided for by this Section,
shall be equal to the Contract Payment and such other Total Payments.  For purposes of determining whether any of
the payments will be subject to the Excise Tax and the amount of such Excise
Tax, (i) any other payments or benefits received or to be received by the
Executive in connection with a Change of Control of the Company or the
Executive’s termination of employment, whether payable pursuant to the terms of
this Agreement or any other plan, arrangement or agreement with the Company,
its successors, any person whose actions result in a Change of Control of the
Company or any corporation affiliated (or which, as a result of the completion
of a transaction causing a Change of Control, will become affiliated) with the
Company within the meaning of Section 1504 of the Code (together with the
Contract Payment, the “Total Payments”) shall be treated as “parachute payments”
within the meaning of Section 280G(b)(2) of the Code, and all “excess
parachute payments” within the meaning of Section 280G(b)(1) shall be
treated as subject to the Excise Tax, unless in the opinion of tax counsel
selected by the Company and acceptable to the Executive, whose acceptance shall
not be unreasonably withheld, the Total Payments (in whole or in part) do not
constitute parachute payments, or such excess parachute payments (in whole or
in

 

10

 

part) represent reasonable compensation for services
actually rendered within the meaning of Section 280G(b)(4) of the
Code either in their entirety or in excess of the base amount within the
meaning of Section 280G(b)(3) of the Code, or are otherwise not
subject to the Excise Tax, (ii) the amount of the Total Payments that
shall be treated as subject to the Excise Tax shall be equal to the lesser of (A) the
total amount of the Total Payments or (B) the amount of excess parachute
payments within the meaning of Section 280G(b)(1) (after applying
clause (i), above), and (iii) the value of any non-cash benefits or any
deferred payment or benefit shall be determined by the Company’s independent
auditors in accordance with the principles of Sections 280G(b)(3) and (4) of
the Code.  For purposes of determining
the amount of the Gross-Up Payment, the Executive shall be deemed to pay
federal income taxes at the highest marginal rate of federal income taxation in
the calendar year in which the Gross-Up Payment is to be made and state and
local income taxes at the highest marginal rate of taxation in the state and
locality of the Executive’s residence on the date of termination, net of the
maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes. 
In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder at the time of termination of the
Executive’s employment, the Executive shall repay to the Company at the time
that the amount of such reduction in Excise Tax is finally determined the
portion of the Gross-Up Payment attributable to such reduction (plus the
portion of the Gross-Up Payment attributable to the Excise Tax and federal and
state and local income tax imposed on the Gross-Up Payment being repaid by the
Executive if such repayment results in a reduction in Excise Tax and/or a
federal state and local income tax deduction) plus interest on the amount of
such repayment at the rate provided in Section 1274(d) of the
Code.  In the event that the Excise Tax
is determined to exceed the amount taken into account hereunder at the time of
the termination of the Executive’s employment (including by reason of any
payment the existence or amount of which cannot be determined at the time of
the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in
respect of such excess (plus any interest payable with respect to such excess)
at the time that the amount of such excess is finally determined.

 

16.                               Termination and Survivability.  This Agreement shall terminate upon the
termination of the Executive’s employment with the Company; provided, however,
that the provisions of Sections 10, 11, 12, 13, 14, 15 and 18 through 29 of
this Agreement shall survive its termination.

 

17.                               Section Titles.  The titles of the sections of this Agreement
are for convenience only and shall not affect the interpretation of any section of
this Agreement.

 

18.                               Waiver.  A waiver by either Party of any of the terms
or conditions of this Agreement in any instance shall not be deemed or
construed to be a waiver of such term or condition for the future, or of any
subsequent breach of this Agreement.  All
remedies, rights, undertakings, obligations and agreements contained in this
Agreement shall be cumulative and none of them shall be in limitation of any
other remedy, right, undertaking, obligation or agreement of either Party.

 

11

 

19.                               Severability.                            The rights and restrictions in this Agreement may
be exercised and are applicable only to the extent that they do not violate
applicable laws, and are intended to be limited to the extent necessary so that
they will not render this Agreement illegal, invalid, or unenforceable.  If any provision of this Agreement shall be
deemed to be invalid or unenforceable, then that provision shall be modified to
make it enforceable to the maximum extent possible, and the remaining
provisions of this Agreement shall not be affected thereby and shall remain in
full force and effect.

 

20.                               Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of both Parties and their respective successors and
assigns, including any entity with which or into which the Company may be
merged or which may succeed to its assets or business; provided, however,
that this Agreement requires the personal services of the Executive only, and
the Executive shall not be entitled to assign any portion of his duties or
obligations hereunder.

 

21.                               Notices.  For
the purposes of this Agreement, notices, demands and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have
been duly given when delivered or (unless otherwise specified) mailed by United
States certified or registered mail, return receipt requested, postage prepaid,
addressed as follows:

 

	
  If to the Executive:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to the Company:

  	
   

  	
  KP Sports, Inc.

  
	
   

  	
   

  	
  1020 Hull Street, 3rd Floor

  
	
   

  	
   

  	
  Baltimore, Maryland 21230

  

 

22.                               Governing Law.  This Agreement has been made and executed in
the State of Maryland and shall be governed by the laws of Maryland applicable
to contracts fully to be performed therein (but without giving effect to the
conflicts or choice of law provisions of this Agreement that would give rise to
the application of the domestic substantive law of any other jurisdiction).

 

23.                               Waiver of Jury Trial.                            THE
PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS
BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT.  EACH OF THE PARTIES REPRESENTS AND WARRANTS
THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT IT KNOWINGLY
AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL.  THIS WAIVER IS IRREVOCABLE,
MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT

 

12

 

AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS
TO (OR ASSIGNMENTS OF) THIS AGREEMENT. 
IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL (WITHOUT A JURY) BY THE COURT.

 

24.                               Consent to Jurisdiction.  (a) 
EACH OF THE PARTIES HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE COURTS
OF MARYLAND AND THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF THE STATE
OF MARYLAND SITTING IN BALTIMORE CITY, MARYLAND, AS WELL AS TO THE JURISDICTION
OF ALL COURTS TO WHICH AN APPEAL MAY BE TAKEN FROM SUCH COURTS, FOR THE
PURPOSE OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF, OR IN
CONNECTION WITH, THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(b)                                 EACH PARTY HEREBY EXPRESSLY WAIVES ANY AND ALL
RIGHTS TO BRING ANY SUIT, ACTION OR OTHER PROCEEDING IN OR BEFORE ANY COURT OR
TRIBUNAL OTHER THAN THE COURTS OF THE STATE OF MARYLAND AND COVENANTS THAT IT
SHALL NOT SEEK IN ANY MANNER TO RESOLVE ANY DISPUTE OTHER THAN AS SET FORTH IN
THIS SECTION 24 OR TO CHALLENGE OR SET ASIDE ANY DECISION, AWARD OR
JUDGMENT OBTAINED IN ACCORDANCE WITH THE PROVISIONS HEREOF.

 

(c)                                  EACH OF THE PARTIES EXPRESSLY WAIVES ANY AND
OBJECTIONS IT MAY HAVE TO VENUE, INCLUDING, WITHOUT LIMITATION, THE
INCONVENIENCE OF SUCH FORUM, IN ANY OF SUCH COURTS.  IN ADDITION, EACH OF THE PARTIES CONSENTS TO
THE SERVICE OF PROCESS BY PERSONAL SERVICE OR ANY MANNER IN WHICH NOTICES MAY BE
DELIVERED HEREUNDER IN ACCORDANCE WITH SECTION 21.

 

25.                               Entire Agreement.  This Agreement constitutes the entire
agreement of the Parties and supersedes any and all previous agreements between
the Parties relating to the subject matter hereof, including the Employment
Agreement between the Company and the Executive dated September 30, 2001
(the “Prior Agreement”).  Upon the
execution by the Parties of this Agreement, the Prior Agreement immediately
shall be terminated and of no further force and effect.  This Agreement may not be modified orally,
but only by an agreement in writing supplied by the party against whom
enforcement of any waiver, change, modification, extension, or discharge is
sought.

 

26.                               Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall deemed to be an original but all of which together
will constitute one and the same instrument.

 

13

 

27.                               Legal Expenses.  In
the event that any legal action is
pursued to enforce any term or provision of this Agreement, including but not
limited to any action seeking injunctive relief to prevent breach or reasonably
anticipated breach of any term or provision of this Agreement, the prevailing
party shall be entitled to recover all costs and expenses incurred thereby,
specifically including reasonable attorneys’ fees.

 

28.                               Representations of the Executive.  The Executive hereby represents to the
Company as follows: (i) he is not bound by the terms of any agreement with
any previous employer or other party to refrain from using or disclosing any
trade secret or confidential or proprietary information in the course of his
employment with the Company or to refrain from competing, directly or
indirectly, with the business of such previous employer or other party, (ii) his
performance of all of the terms of this Agreement and as an employee of the
Company does not and will not breach any agreement to keep in confidence
proprietary information, knowledge or data acquired by him in confidence or in
trust prior to his employment with the Company, (iii) he has carefully
read this Agreement, understands the contents herein, and freely and
voluntarily assents to all of the terms and conditions of this Agreement, and (iv) he
has had an opportunity to fully discuss and review the terms of this Agreement
with an attorney

 

29.                               Miscellaneous.  The Parties agree to execute all other such
documents as may be required to effectuate or more readily carry out the
provisions of this Agreement.

 

14

 

IN WITNESS WHEREOF, the
Executive and the Company have executed this Agreement.

 

	
  COMPANY:

  	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
  KP SPORTS, INC.

  	
   

  	
  J. Scott Plank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Kevin A. Plank

  	
   

  	
   

  	
  /s/ J. Scott Plank

  	
   

  
	
   

  	
   

  	
  J. Scott Plank

  
	
  Name:

  	
  Kevin A. Plank

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date: September 30, 2003

  	
   

  
	
  Title:

  	
  President and Chief Executive

  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  September 30, 2003

  	
   

  	
   

  	
   

  
									

 

15

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