Document:

Exhibit
10.48

 

Catastrophe
Workers’ Compensation

Reinsurance Contract

Effective: January 1, 2005

 

issued to

 

AmCOMP Preferred Insurance Company

North Palm Beach, Florida
AmCOMP Assurance Corporation
North Palm Beach, Florida

and

any and all insurance companies which are now or

hereafter come under the same ownership or management as the
AmCOMP Group

North Palm Beach, Florida

 

 

 

Table of
Contents

 

	
  Article

  	
   

  	
   

  	
  Page

  
	
  I

  	
   

  	
  Classes of Business
  Reinsured

  	
  1

  
	
  II

  	
   

  	
  Term

  	
  1

  
	
  III

  	
   

  	
  Special Termination

  	
  2

  
	
  IV

  	
   

  	
  Territory (BRMA 51A)

  	
  3

  
	
  V

  	
   

  	
  Exclusions

  	
  3

  
	
  VI

  	
   

  	
  Retention and Limit

  	
  7

  
	
  VII

  	
   

  	
  Reinstatement

  	
  7

  
	
  VIII

  	
   

  	
  Definitions

  	
  8

  
	
  IX

  	
   

  	
  Other Reinsurance

  	
  10

  
	
  X

  	
   

  	
  Annuities at Company’s
  Option

  	
  10

  
	
  XI

  	
   

  	
  Claims

  	
  11

  
	
  XII

  	
   

  	
  Commutation

  	
  11

  
	
  XIII

  	
   

  	
  Special Commutation

  	
  12

  
	
  XIV

  	
   

  	
  Subrogation

  	
  13

  
	
  XV

  	
   

  	
  Premium

  	
  14

  
	
  XVI

  	
   

  	
  Late
  Payments

  	
  14

  
	
  XVII

  	
   

  	
  Offset (BRMA 36C)

  	
  15

  
	
  XVIII

  	
   

  	
  Access to Records (BRMA
  1D)

  	
  16

  
	
  XIX

  	
   

  	
  Liability of the Reinsurer

  	
  16

  
	
  XX

  	
   

  	
  Net Retained Lines (BRMA
  32E)

  	
  16

  
	
  XXI

  	
   

  	
  Errors and Omissions

  	
  16

  
	
  XXII

  	
   

  	
  Currency (BRMA 12A)

  	
  16

  
	
  XXIII

  	
   

  	
  Taxes (BRMA 50B)

  	
  17

  
	
  XXIV

  	
   

  	
  Federal Excise Tax

  	
  17

  
	
  XXV

  	
   

  	
  Reserves

  	
  17

  
	
  XXVI

  	
   

  	
  Insolvency

  	
  19

  
	
  XXVII

  	
   

  	
  Arbitration

  	
  19

  
	
  XXVIII

  	
   

  	
  Service of Suit (BRMA 49C)

  	
  20

  
	
  XXIX

  	
   

  	
  Agency Agreement

  	
  21

  
	
  XXX

  	
   

  	
  Governing Law (BRMA 71B)

  	
  21

  
	
  XXXI

  	
   

  	
  Intermediary (BRMA 23A)

  	
  21

  

 

 

Catastrophe
Workers’ Compensation

Reinsurance Contract

Effective: January 1, 2005

 

issued to

 

AmCOMP Preferred Insurance Company

North Palm Beach, Florida
AmCOMP Assurance Corporation
North Palm Beach, Florida

and

any and all insurance companies which are now or

hereafter come under the same ownership or management as the
AmCOMP Group
North Palm Beach, Florida

(hereinafter referred to collectively as the
“Company”)

 

by

 

The Subscribing Reinsurer(s) Executing the

Interests and Liabilities Agreement(s)

Attached Hereto
(hereinafter
referred to as the “Reinsurer”)

 

Article I - Classes of Business
Reinsured

 

By
this Contract the Reinsurer agrees to reinsure the excess liability which may
accrue to the Company under its policies, contracts and binders of insurance or
reinsurance (hereinafter called “policies”) in force at the effective date
hereof or issued or renewed on or after that date, and classified by the
Company as Workers’ Compensation and Employers Liability business, subject to
the terms, conditions and limitations hereinafter set forth.

 

Article II - Term

 

A.           This Contract shall become effective on January 1, 2005, with
respect to losses arising out of occurrences commencing on or after that date,
and shall remain in force until December 31, 2005, both days inclusive.

 

B.             Unless otherwise mutually agreed, the
Reinsurer shall have no liability for losses arising out of occurrences
commencing after the effective date of termination or expiration.

 

C.             Notwithstanding the provisions above, in the
event that any policy subject to this Contract is required by statute,
regulation or by order of an insurance department to be continued in force, the
Reinsurer agrees to extend reinsurance coverage hereunder following the termination
or expiration of this Contract with respect to such policy until the first date
that the Company may lawfully non-renew, cancel or terminate such policy,
whether or not the

 

1

 

Company actually does non-renew, cancel or terminate
such policy. However, under no circumstances shall runoff coverage under this
paragraph exceed 23 months.

 

D.            Seven years after the termination or
expiration of this Contract, the Company shall advise the Reinsurer of any
outstanding claims and/or occurrences (each hereinafter referred to as a “claim”)
arising during the term hereof, which have not been finally settled and which
may cause a recovery under this Contract, and no liability shall attach
hereunder for any claim not reported to the Reinsurer within this seven year
period.

 

Article III - Special Termination

 

Notwithstanding
the provisions of paragraph A of Article II, the Company may terminate a
Subscribing Reinsurer’s percentage share in this Contract if any of the
following circumstances occur, such termination to be effective at any point in
time of the Company’s choosing, including retroactive, but not prior to the
beginning of the calendar quarter in which the triggering circumstance occurs
as respects subparagraphs 1 through 6 or from discovery as respects
subparagraph 7:

 

1.               The Subscribing Reinsurer’s policyholders’
surplus at the inception of this Contract has been reduced by more than 20.0%
of the amount of surplus 12 months prior to that date; or

 

2.               The Subscribing Reinsurer’s policyholders’
surplus at any time during the term of this Contract has been reduced by more
than 20.0% of the amount of surplus at the date of the Subscribing Reinsurer’s
most recent financial statement filed with regulatory authorities and available
to the public as of the inception of this Contract; or

 

3.               The Subscribing Reinsurer’s A.M. Best’s
rating has been assigned or downgraded below A- (including any “Not Rated”
rating) and/or Standard & Poor’s rating has been assigned or
downgraded below BBB+ (including any “Not Rated” rating); or

 

4.               The Subscribing Reinsurer has become merged
with, acquired by or controlled by any other company, corporation or
individual(s) not controlling the Subscribing Reinsurer’s operations
previously; or

 

5.               A State Insurance Department or other legal
authority has ordered the Subscribing Reinsurer to cease writing business; or

 

6.               The Subscribing Reinsurer has become
insolvent or has been placed into liquidation or receivership (whether
voluntary or involuntary) or proceedings have been instituted against the
Subscribing Reinsurer for the appointment of a receiver, liquidator, rehabilitator,
conservator or trustee in bankruptcy, or other agent known by whatever name, to
take possession of its assets or control of its operations; or

 

7.               The Subscribing Reinsurer has ceased assuming
new and renewal property and casualty treaty reinsurance business.

 

2

 

Article IV - Territory (BRMA 51A)

 

The territorial limits of this Contract shall be
identical with those of the Company’s policies.

 

Article V - Exclusions

 

A.           This Contract does not apply to and specifically excludes the
following:

 

1.               Reinsurance assumed by the Company, except:

 

a.               Agency reinsurance where the policies
involved are to be reunderwritten in accordance with the underwriting standards
of the Company and reissued as Company policies at the next anniversary or
expiration date;

 

b.              Intercompany reinsurance between any of the
reinsured companies under this Contract.

 

2.               Ex-gratia payments.

 

3.               Risks subject to a deductible in excess of
$25,000, or a self-insured retention excess of $25,000, unless such deductible
or self-insured retention is otherwise mandated by statute or regulatory
authority.

 

4.               Nuclear risks as defined in the “Nuclear Incident
Exclusion Clause - Liability - Reinsurance (U.S.A.)” and loss or liability
defined in the “Nuclear Incident Exclusion Clause - Reinsurance - No. 4”
attached to and forming part of this Contract.

 

5.               Pollution liability coverages excluded under
the provisions of the “Pollution Exclusion Clause - General Liability -
Reinsurance (BRMA 39C)” attached to and forming part of this Contract.

 

6.               Liability as a member, subscriber or
reinsurer of any Pool, Syndicate or Association, but this exclusion shall not apply
to Assigned Risk Plans or similar state-mandated plans.

 

7.               All liability of the Company arising by
contract, operation of law, or otherwise, from its participation or membership,
whether voluntary or involuntary, in any insolvency fund. “Insolvency fund”
includes any guaranty fund, insolvency fund, plan, pool, association, fund or
other arrangement, however denominated, established or governed, which provides
for any assessment of or payment or assumption by the Company of part or all of
any claim, debt, charge, fee or other obligation of an insurer, or its
successors or assigns, which has been declared by any competent authority to be
insolvent, or which is otherwise deemed unable to meet any claim, debt, charge,
fee or other obligation in whole or in part.

 

8.               Loss or liability as excluded in the “War
Risk Exclusion Clause (Reinsurance)” attached to and forming part of this
Contract.

 

3

 

9.               Operation under the jurisdiction of the
United States Longshore and Harbor Workers’ Compensation Act or the Jones Act,
except for incidental exposures (i.e., 10.0% or less of the insured’s estimated
payroll when the account is quoted).

 

10.         Operations employing the process of nuclear fission or fusion or
handling of radioactive material, which operations include but are not limited
to:

 

a.               The use of nuclear reactors such as atomic
piles, particle accelerators or generators; or

 

b.              The use, handling or transportation of
radioactive materials, or the use, handling or transportation of any weapon of
war or explosive device employing nuclear fission or fusion.

 

However, subparagraphs a and b above shall not apply
to:

 

i.                  The exclusive use of particle accelerators
incidental to ordinary industrial or education research pursuits, or

 

ii.               The exclusive use, handling or transportation
of radioisotopes for medical or industrial use, or to radium or radium
compounds.

 

11.         Operation of docks or wharves as related to port authorities.

 

12.         The manufacturing, mining, refining, processing, distribution,
installation, removal or encapsulment of asbestos.

 

13.         Risks involving known exposure to the following substances:

 

a.               Dioxin;

 

b.              Polychlorinated biphenols;

 

c.               Asbestos.

 

14.         All railway operations except sidetrack agreements.

 

15.         Amusement parks, carnivals or circuses. This exclusion shall not apply
to miniature golf courses or driving range operations.

 

16.         Subaquaeous operations.

 

17.         Underground mining; however, this exclusion shall not be construed to
apply to open pit-quarrying or “surface mining” operations.

 

18.         Blasting operations, except for incidental exposures (i.e., 10.0% or
less of the insured’s estimated payroll when the account is quoted).

 

19.         Demolition of buildings or structures in excess of five stories.

 

20.         Shoring, underpinning or moving of buildings or structures.

 

4

 

21.         Erection or repair of scaffolds if 10.0% or more of the insured’s
annual remuneration is attributed to NCCI Class Code 9529.

 

22.         Construction of tunnels or dams.

 

23.         Fireworks, fuses, or any explosive substance (as defined below) as
follows:

 

a.               Manufacturers or importers of such items;

 

b.              Loading of such items into containers for use
as explosive objects, propellant charges or detonation devices and the storage
thereof (except as previously provided for, on an incidental basis, in
exclusion 18);

 

c.               Manufacturers or importers of any product in
which such items are an ingredient;

 

d.              Handling, storage, transportation or use of
such items (except as previously provided for, on an incidental basis, in
exclusion 18).

 

“Explosive substance” is defined as any substance
manufactured for the express purpose of exploding as differentiated from
commodities used industrially and which are only incidentally explosive.

 

24.         Onshore and offshore gas and oil drilling operations.

 

25.         Operations where principal business includes the use of any owned or
unowned aircraft, or any device or machine intended for and/or aiding in the
achievement of atmospheric flight, projection or orbit, for flight, and/or the
ownership or operation of any airport. This exclusion shall not apply where
exposure is incidental (i.e., constitutes 10.0% or less of the insured’s
payroll) to the principal business operations and the aircraft contains eight
seats or fewer.

 

26.         Municipal law enforcement organizations and municipal fire fighting
organizations, whether professional or voluntary.

 

27.         Logging or forestry operations.

 

28.         Professional employment organizations (PEO’s).

 

29.         Professional sports teams.

 

30.         Operations where the principal business of the risk is manufacturing,
production, distribution, refining or storage of natural or artificial fuel,
gas, butane, propane, liquefied petroleum gases or gasoline. This exclusion
shall not apply to any risk whose principal business operations are any of the
following:

 

a.               Retail gasoline service station, either full
or self service;

 

b.              Convenience store with gasoline sales with
its petroleum gas and/or storage tanks located below ground.

 

5

 

31.         Notwithstanding any provision to the contrary within this Contract or
any amendment thereto, loss, damage, cost or expense directly or indirectly
caused by, contributed to by, resulting from or arising out of or in connection
with any “act of terrorism” as defined in the Terrorism Risk Insurance Act of
2002 (the “Terrorism Act”), regardless of any other cause or event contributing
concurrently or in any sequence to the loss.

 

In the event that the Terrorism Act terminates or
expires, then in respect of any occurrences commencing after the termination or
expiration of the Terrorism Act, the Reinsurer hereon will not be liable for
any “Foreign Act of Terrorism.” A Foreign Act of Terrorism is defined to be:

 

a.               A violent act or an act that is dangerous to:

 

i.                  Human life; or

 

ii.               Property; or

 

iii.            Infrastructure; and

 

b.              Which has resulted in damage within the
United States of America; and

 

c.               Which was committed by an individual or
individuals acting on behalf of any foreign person or foreign interest, as part
of an effort to coerce or put in fear the civilian population of the United
States of America or to influence the policy or affect the conduct of the
Government of the United States of America by coercion.

 

However, an act shall not be considered a “Foreign
Act of Terrorism” if the property and casualty insurance losses resulting from
the act, in the aggregate, do not exceed $5,000,000. “Property and casualty
insurance” as used herein shall have the meaning set forth in Section 102(12)
of the Terrorism Act, irregardless of whether the Terrorism Act has terminated
or expired.

 

Notwithstanding the above and subject otherwise to
the terms, conditions, and limitations of this Contract, this Contract will pay
actual loss, damage, cost, and expense caused by any act of terrorism which
does not meet the definition of “act of terrorism” set forth in the Terrorism
Act, or “Foreign Act of Terrorism” should the Terrorism Act no longer be
applicable, provided that in no event will this Contract provide coverage for
loss, damage, cost, or expense directly or indirectly caused by, contributed to
by, resulting from, or arising out of or in connection with biological,
chemical, or nuclear explosion, pollution, contamination and/or fire following
thereon.

 

B.             In the event the Company is inadvertently
bound on any risk which is excluded under subparagraph 9, subparagraphs 14
through 27, or subparagraph 30 of paragraph A above, the reinsurance provided
under this Contract shall apply on such risk until discovery by the Company of
the existence of such risk and for 30 days thereafter or for a period of time
specific to the applicable state cancellation requirements, not to exceed 120
days. This limitation shall not apply as respects Arizona. Coverage shall cease
after such time or at policy anniversary as respects Arizona policies, unless
the Company has received from the Reinsurer written notice of its approval of
such risk within 30 days.

 

6

 

C.             Notwithstanding the foregoing, any
reinsurance falling within the scope of one or more of the exclusions set forth
above that is specially accepted by the Reinsurer from the Company shall be
covered under this Contract and subject to all of the terms and conditions
hereof, except as such terms are modified by the special acceptance. In the
event a reinsurer becomes a party to this Contract subsequent to one or more
special acceptances hereunder, the new reinsurer shall automatically accept
such special acceptance(s) as being covered hereunder.

 

Article VI - Retention and Limit

 

A.           The Company shall retain and be liable for the first $10,000,000 of
ultimate net loss (regardless of the combination of classes of business, number
of policies or number of interests involved) arising out of each occurrence.
The Reinsurer shall then be liable for the amount by which such ultimate net
loss exceeds the Company’s retention, but the liability of the Reinsurer shall
not exceed $10,000,000 as respects any one occurrence.

 

B.             The Company’s ultimate net loss, for the
purpose of this Contract, shall be deemed to be a maximum of $5,000,000 any one
life from the ground up.

 

Article VII - Reinstatement

 

A.           In the event all or any portion of the reinsurance hereunder is
exhausted by loss, the amount so exhausted shall be reinstated immediately from
the time the occurrence commences hereon. For each amount so reinstated the
Company agrees to pay additional premium equal to the product of the following:

 

1.               The percentage of the occurrence limit
reinstated (based on the loss paid by the Reinsurer); times

 

2.               The earned reinsurance premium for the term
of this Contract (exclusive of reinstatement premium).

 

B.             Whenever the Company requests payment by the
Reinsurer of any loss hereunder, the Company shall submit a statement to the
Reinsurer of reinstatement premium due the Reinsurer. If the earned reinsurance
premium for the term of this Contract has not been finally determined as of the
date of any such statement, the calculation of reinstatement premium due shall
be based on the annual deposit premium and shall be readjusted when the earned
reinsurance premium for the term of this Contract has been finally determined. Any
reinstatement premium shown to be due the Reinsurer as reflected by any such statement
(less prior payments, if any) shall be payable by the Company concurrently with
payment by the Reinsurer of the requested loss. Any return reinstatement
premium shown to be due the Company shall be remitted by the Reinsurer as
promptly as possible after receipt and verification of the Company’s statement.

 

C.             Notwithstanding anything stated herein, the
liability of the Reinsurer hereunder shall not exceed $10,000,000 as respects
loss or losses arising out of any one occurrence, nor shall it exceed
$20,000,000 in all during the term of this Contract.

 

7

 

Article VIII - Definitions

 

A.           “Ultimate net loss” as used herein is defined as the sum or sums
(including loss in excess of policy limits, extra contractual obligations and
any loss adjustment expense, as hereinafter defined) paid or payable by the
Company in settlement of claims and in satisfaction of judgments rendered on
account of such claims, after deduction of all recoveries from subrogation, all
recoveries and all claims on inuring insurance or reinsurance, whether
collectible or not. Nothing herein shall be construed to mean that losses under
this Contract are not recoverable until the Company’s ultimate net loss has been
ascertained.

 

B.             “Loss in excess of policy limits” and “extra
contractual obligations” as used herein shall be defined as follows:

 

1.               “Loss in excess of policy limits” shall mean
90.0% of any amount paid or payable by the Company in excess of its policy
limits, but otherwise within the terms of its policy, such loss in excess of
the Company’s policy limits having been incurred because of, but not limited
to, failure by the Company to settle within the policy limits or by reason of
the Company’s alleged or actual negligence or bad faith in rejecting an offer
of settlement or in the preparation of the defense or in the trial of an action
against its insured or reinsured or in the preparation or prosecution of an
appeal consequent upon such an action.

 

2.               “Extra contractual obligations” shall mean
90.0% of any punitive, exemplary, compensatory or consequential damages paid or
payable by the Company, not covered by any other provision of this Contract and
which arise from the handling of any claim on business subject to this
Contract, such liabilities arising because of, but not limited to, failure by
the Company to settle within the policy limits or by reason of the Company’s
alleged or actual negligence or bad faith in rejecting an offer of settlement or
in the preparation of the defense or in the trial of an action against its insured
or reinsured or in the preparation or prosecution of an appeal consequent upon
such an action. An extra contractual obligation shall be deemed, in all circumstances,
to have occurred on the same date as the loss covered or alleged to be covered
under the policy.

 

Notwithstanding anything stated herein, this
Contract shall not apply to any loss in excess of policy limits or any extra
contractual obligation incurred by the Company as a result of any fraudulent
and/or criminal act by any officer or director of the Company acting
individually or collectively or in collusion with any individual or corporation
or any other organization or party involved in the presentation, defense or
settlement of any claim covered hereunder.

 

If any provision of this paragraph B shall be
rendered illegal or unenforceable by the laws, regulations or public policy of
any state, such provision shall be considered void in such state, but this
shall not affect the validity or enforceability of any other provision of this
Contract or the enforceability of such provision in any other jurisdiction.

 

C.             “Occurrence” as used herein is defined as an
accident or occurrence or a series of accidents or occurrences arising out of
or caused by one event, whether involving one or more of the Company’s
policies, except that:

 

8

 

1.               As respects Workers’ Compensation policies,
each occupational or industrial disease or cumulative injury case contracted by
an employee of an insured shall be deemed to have been caused by a separate
occurrence commencing on:

 

a.               The date of disability for which compensation
is payable if the case is compensable under the Workers’ Compensation Law;

 

b.              The date disability due to the disease
actually began if the case is not compensable under the Workers’ Compensation
Law; or

 

c.               The date of cessation of employment if claim
is made after employment has ceased.

 

2.               Notwithstanding the provisions of
subparagraph 1 above, as respects losses resulting from occupational disease
and cumulative trauma suffered by employees of an insured for which the
employer is liable as a result of a sudden and accidental event not exceeding
72 hours in duration, all such losses shall be considered one occurrence and
may be combined with losses not classified as occupational disease or
cumulative trauma which arise out of the same event and the combination of such
losses shall be considered as one occurrence within the meaning hereof.

 

3.               Notwithstanding the foregoing, the following
shall apply to occurrences involving natural disasters:

 

a.               An occurrence shall be limited to damage,
injury or loss arising out of a natural disaster during any continuous 168 hour
period.

 

b.              The Company may choose the date and time when
such 168 hour period commences and if the occurrence is of greater duration
than 168 hours, the Company may divide such occurrence into two or more
occurrences, provided no two periods overlap and provided no period commences
earlier than the date and time of the first loss to the Company in such
occurrence.

 

c.                   “Natural disaster” shall mean loss caused by
the perils of tornado, cyclone, windstorm, hurricane and hail arising from the
same atmospheric disturbance; earthquake, including ensuing fire, landslide,
mudslide, flood, tidal wave; volcanic eruptions; flood; tides; tidal wave;
landslide/mudslide; and meteors.

 

D.            “Occupational or industrial disease” shall
mean any abnormal condition that fulfills all of the following conditions:

 

1.               It is not traceable to a definite compensable
accident occurring during the employee’s present or past employment; and

 

2.               It has been caused by exposure to a disease
producing agent or agents present in the workers’ occupational environment; and

 

3.               It has resulted in a disability or death.

 

E.              “Cumulative injury” is any injury that
fulfills all of the following conditions:

 

9

 

1.               It is not traceable to a definite compensable
accident occurring during the employee’s present or past employment; and

 

2.               It has occurred from, and has been aggravated
by, a repetitive employment-related activity; and

 

3.               It has resulted in a disability or death.

 

F.              “Loss adjustment expense” as used herein
shall mean expenses assignable to the investigation, appraisal, adjustment,
settlement, litigation, defense and/or appeal of specific claims, regardless of
how such expenses are classified for statutory reporting purposes. Loss
adjustment expense shall include, but not be limited to, interest on judgments,
expenses of outside adjusters and claims-specific declaratory judgment expenses
or other legal expenses and costs incurred in connection with coverage
questions and legal actions connected thereto, but shall not include office
expenses or salaries of the Company’s regular employees other than medical
management personnel whose cost the Company will bill to specific cases on a
time and expense basis.

 

Article IX - Other Reinsurance

 

A,           The Company shall be permitted to carry facultative reinsurance,
recoveries under which shall inure to the benefit of this Contract.

 

B.             The Company shall be permitted to carry
underlying excess of loss reinsurance and quota share reinsurance, recoveries
under which shall inure solely to the benefit of the Company and be entirely
disregarded in applying all of the provisions of this Contract.

 

Article X - Annuities at Company’s Option

 

A.           Whenever the Company is required, or elects, to purchase an annuity or
to negotiate a structured settlement in excess of the retention of this
Contract, either in satisfaction of a judgment or in an out-of-court settlement
or otherwise, the cost of the annuity or the structured settlement, as the case
may be, shall be deemed part of the Company’s ultimate net loss, provided such
annuity or structured settlement terms grant the Company full and final release
as respects the indemnity portion of the settlement. Additionally, it is the Company’s
intent to place all annuities or structured settlements with a carrier whose A.M.
Best’s rating is “A” or better.

 

B.             The terms “annuity” or “structured settlement”
shall be understood to mean any insurance policy, lump sum payment, agreement
or device of whatever nature resulting in the payment of a lump sum by the
Company in settlement of any or all future liabilities which may attach to it
as a result of an occurrence.

 

C.             In the event the Company purchases an annuity
which inures in whole or in part to the benefit of the Reinsurer, it is
understood that the liability of the Reinsurer is not released thereby. In the
event the Company is required to provide benefits not provided by the annuity
for whatever reason, the Reinsurer shall pay its proportional share of any
loss.

 

10

 

Article XI - Claims

 

A.           Whenever a claim or settlement by the Company appears likely, in the
sole judgment of the Company, to result in a claim under this Contract, the
Company shall notify the Reinsurer. Further, the Company shall notify the
Reinsurer whenever a claim involves a fatality, amputation, spinal cord damage,
brain damage, blindness or extensive burns, regardless of liability, including
all subsequent developments. The Reinsurer shall have the right to participate,
at its own expense, in the defense of any claim or suit or proceeding involving
this reinsurance.

 

B.             All claim settlements made by the Company,
provided such settlements are within the terms of this Contract, shall be
binding upon the Reinsurer, and the Reinsurer agrees to pay all amounts for
which it may be liable upon receipt of reasonable evidence of the amount paid
by the Company.

 

Article XII - Commutation

 

A.           Either the Company or the Reinsurer may request commutation of that
portion of any excess loss hereunder represented by any outstanding claim or
claims after seven years from the date of an occurrence. If both parties desire
to commute a claim or claims, then within 60 days after such agreement, the
Company shall submit a statement of valuation of the outstanding claim or
claims showing the elements considered reasonable to establish the ultimate net
loss and the Reinsurer shall pay the amount requested. Commutation of loss will
be calculated on the present value of the loss within the layer of coverage.

 

B.             If agreement, as outlined in the paragraph
above, cannot be reached, the effort can be abandoned or, alternately, the
Company and the Reinsurer may mutually appoint an actuary or appraiser to
investigate, determine and capitalize such claim or claims. If both parties
then agree, the Reinsurer shall pay its proportion of the amount so determined
to be the capitalized value of such claim or claims.

 

C.             If the parties, as outlined in the paragraphs
above, fail to agree, they may abandon the effort or they may agree to settle
any difference using a panel of three actuaries, one to be chosen by each party
and the third by the two so chosen. If either party refuses or neglects to
appoint an actuary within 60 days, the other party may appoint two actuaries. If
the two actuaries fail to agree on the selection of a third actuary within 60
days of their appointment, each of them shall name two, of whom the other shall
decline one and the decision shall be made by drawing lots. All the actuaries
shall be regularly engaged in the valuation of Workers’ Compensation claims and
shall be Fellows of the Casualty Actuarial Society or Members of the American
Academy of Actuaries. None of the actuaries shall be under the control of
either party to this Contract.

 

D.            Each party shall submit its case to its
actuary within 60 days of the appointment of the third actuary. The decision in
writing of any two actuaries, when filed with the parties hereto, shall be
final and binding on both parties. The expense of the actuaries and of the commutation
shall be equally divided between the two parties. Said commutation shall take place
in North Palm Beach, Florida, unless some other place is mutually agreed upon
by the Company and the Reinsurer.

 

11

 

Article XIII - Special Commutation

 

A.           In the event a Subscribing Reinsurer meets one or more of the following
conditions, the Company may require a commutation of that portion of any excess
loss hereunder represented by any outstanding claim or claims, including any
related loss adjustment expense.

 

1.               The Subscribing Reinsurer’s A.M. Best’s
rating has been assigned or downgraded below A- (including any “Not Rated”
rating) and/or Standard & Poor’s rating has been assigned or
downgraded below BBB+ (including any “Not Rated” rating); or

 

2.               The Subscribing Reinsurer has ceased assuming
new or renewal property and casualty treaty reinsurance business.

 

“Outstanding claim or claims” shall be defined as
known or unknown claims, including any billed yet unpaid claims. However,
unless otherwise mutually agreed, this paragraph A shall not apply unless the
outstanding claim or claims is for an amount not less than $5,000.

 

B.             If the Company elects to require commutation
as provided in paragraph A above, the Company shall submit a Statement of
Valuation of the outstanding claim or claims as of the last day of the month
immediately preceding the month in which the Company elects to require
commutation, as determined by the Company. Such Statement of Valuation shall include
the elements considered reasonable to establish the excess loss and shall set
forth or attach the information relied upon by the Company and the methodology
employed to calculate the excess loss. The Subscribing Reinsurer shall then pay
the amount requested within 30 calendar days of receipt of such Statement of
Valuation, unless the Subscribing Reinsurer needs additional information from
the Company to assess the Company’s Statement of Valuation or contests such
amount.

 

C.             If the Subscribing Reinsurer needs additional
information from the Company to assess the Company’s Statement of Valuation or
contests the amount requested, the Subscribing Reinsurer shall so notify the
Company within 15 calendar days of receipt of the Company’s Statement of
Valuation. The Company shall supply any reasonably requested information to the
Subscribing Reinsurer within 15 calendar days of receipt of the notification.
Within 30 calendar days of the date of the notification or of the receipt of
the information, whichever is later, the Subscribing Reinsurer shall provide
the Company with its Statement of Valuation of the outstanding claim or claims
as of the last day of the month immediately preceding the month in which the
Company elects to require commutation, as determined by the Subscribing
Reinsurer. Such Statement of Valuation shall include the elements considered
reasonable to establish the excess loss and shall set forth or attach the information
relied upon by the Subscribing Reinsurer and the methodology employed to calculate
the excess loss.

 

D.            In the event the Subscribing Reinsurer’s
Statement of Valuation of the outstanding claim or claims is viewed as
unacceptable to the Company, the Company may either abandon the commutation
effort, or may seek to settle any difference by using an independent actuary agreed
to by the parties.

 

E.              If the parties cannot agree on an acceptable
independent actuary within 15 calendar days of the date of the Subscribing
Reinsurer’s Statement of Valuation, then each party shall appoint an actuary as
party arbitrators for the limited and sole purpose of selecting an

 

12

 

independent actuary. If the actuaries cannot agree
on an acceptable independent actuary within 15 calendar days of the date of the
Subscribing Reinsurer’s Statement of Valuation, the Company shall supply the
Subscribing Reinsurer with a list of at least three proposed independent
actuaries, and the Subscribing Reinsurer shall select the independent actuary
from that list.

 

F.              Upon selection of the independent actuary,
both parties shall present their respective written submissions to the
independent actuary. The independent actuary may, at his or her discretion,
request additional information. The independent actuary shall issue his or her
decision within 45 calendar days after the written submissions have been filed
and any additional information has been provided.

 

G.             The decision of the independent actuary shall
be final and binding. The expense of the independent actuary shall be equally
divided between the two parties. For the purposes of this Article, unless
mutually agreed otherwise, an “independent actuary” shall be an actuary who
satisfies each of the following criteria:

 

1.               Is regularly engaged in the valuation of
claims resulting from lines of business subject to this Contract; and

 

2.               Is either a Fellow of the Casualty Actuarial
Society or of the American Academy of Actuaries; and

 

3.               Is disinterested and impartial regarding this
commutation.

 

H.            Notwithstanding paragraphs A, B and C above,
in the event that the Subscribing Reinsurer no longer meets any of the
conditions specified in subparagraph 1 or 2 in paragraph A above, this
commutation may continue on a mutually agreed basis.

 

I.                 Payment by the Subscribing Reinsurer of the
amount requested in accordance with paragraph B, C or F above, shall release
the Subscribing Reinsurer from all further liability for outstanding claim or
claims, known or unknown, under this Contract and shall release the Company from
all further liability for payments of salvage or subrogation amounts, known or
unknown, to the Subscribing Reinsurer under this Contract.

 

J.                In the event of any conflict between this Article and
any other article of this Contract, the terms of this Article shall
control.

 

K.            This Article shall survive the
expiration or termination of this Contract.

 

Article XIV - Subrogation

 

The
Reinsurer shall be credited with recoveries from subrogation (i.e.,
reimbursement obtained or recovery made by the Company, less the actual cost,
excluding salaries of officials and employees of the Company and sums paid to
attorneys as retainer, of obtaining such reimbursement or making such recovery)
on account of claims and settlements involving reinsurance hereunder. Recoveries
therefrom shall always be used to reimburse the excess carriers in the reverse
order of their priority according to their participation before being used in
any way to reimburse the Company for its primary loss. The Company hereby
agrees to

 

13

 

enforce
its rights to subrogation relating to any loss, a part of which loss was
sustained by the Reinsurer, and to prosecute all claims arising out of such
rights.

 

Article XV - Premium

 

A.           As premium for the reinsurance provided hereunder, the Company shall
pay the Reinsurer 0.20% of its net earned premium for the term of this
Contract, subject to a minimum premium of $482,400 (or a pro rata portion
thereof if this Contract is terminated prior to December 31, 2005).

 

B.             The Company shall pay the Reinsurer an annual
deposit premium of $536,000 in four equal installments of $134,000 on January 1,
April 1, July 1 and October 1 of 2005. However, no deposit
premium installments shall be due after the effective date of termination.

 

C.             Within 60 days following the termination or
expiration of this Contract and within 60 days following the 12-month period
thereafter, the Company shall provide a report to the Reinsurer setting forth
the premium due hereunder for the term of this Contract, computed in accordance
with paragraph A, and any additional premium due the Reinsurer shall be remitted
by the Company with its report. If the premium so computed is less than the previously
paid, but more than the minimum premium, the balance shall be refunded by the Reinsurer
to the Company within 30 days of the report.

 

D.            “Net earned premium” as used herein is
defined as the Company’s gross earned premium for the classes of business
subject to this Contract, adjusted for experience modification, discounts,
credits, surcharges, expense constants and deductible credits, plus or minus
the Reinsurer’s pro rata share of any premium arising from audit adjustments,
minus cancellation and return premium, minus premiums paid for facultative
reinsurance which inures to the benefit of this Contract.

 

Article XVI - Late Payments

 

A.           The provisions of this Article shall not be implemented unless
specifically invoked, in writing, by one of the parties to this Contract.

 

B.             In the event any premium, loss or other
payment due either party is not received by the intermediary named in Article XXXI
(hereinafter referred to as the “Intermediary”) by the payment due date, the
party to whom payment is due may, by notifying the Intermediary in writing,
require the debtor party to pay, and the debtor party agrees to pay, an
interest penalty on the amount past due calculated for each such payment on the
last business day of each month as follows:

 

1.               The number of full days which have expired
since the due date or the last monthly calculation, whichever the lesser, times

 

2.               1/365ths of the six-month United States
Treasury Bill rate as quoted in The Wall
Street Journal on the first business day of the month for which the
calculation is made; times

 

3.               The amount past due, including accrued
interest.

 

14

 

It is agreed that interest shall accumulate until
payment of the original amount due plus interest penalties have been received
by the Intermediary.

 

C.             The establishment of the due date shall, for
purposes of this Article, be determined as follows:

 

1.               As respects the payment of routine deposits
and premiums due the Reinsurer, the due date shall be as provided for in the
applicable section of this Contract. In the event a due date is not
specifically stated for a given payment, it shall be deemed due 30 days after
the date of transmittal by the Intermediary of the initial billing for each
such payment.

 

2.               Any claim or loss payment due the Company
hereunder shall be deemed due 30 business days after the proof of loss and
demand for payment is transmitted to the Reinsurer. If such loss or claim
payment is not received within the 30 days, interest will accrue on the payment
or amount overdue in accordance with paragraph B above, from the date the proof
of loss and demand for payment was transmitted to the Reinsurer.

 

3.               As respects any payment, adjustment or return
due either party not otherwise provided for in subparagraphs 1 and 2 above, the
due date shall be as provided for in the applicable section of this
Contract. In the event a due date is not specifically stated for a given
payment, it shall be deemed due 30 business days following transmittal of
written notification that the provisions of this Article have been invoked.

 

For purposes of interest calculations only, amounts
due hereunder shall be deemed paid upon receipt by the Intermediary.

 

D.            Nothing herein shall be construed as limiting
or prohibiting a Subscribing Reinsurer from contesting the validity of any
claim, or from participating in the defense of any claim or suit, or
prohibiting either party from contesting the validity of any payment or from
initiating any arbitration or other proceeding in accordance with the
provisions of this Contract. If the debtor party prevails in an arbitration or
other proceeding, then any interest penalties due hereunder on the amount in
dispute shall be null and void. If the debtor party loses in such proceeding,
then the interest penalty on the amount determined to be due hereunder shall be
calculated in accordance with the provisions set forth above unless otherwise determined
by such proceedings. If a debtor party advances payment of any amount it is contesting,
and proves to be correct in its contestation, either in whole or in part, the
other party shall reimburse the debtor party for any such excess payment made
plus interest on the excess amount calculated in accordance with this Article.

 

E.              Interest penalties arising out of the
application of this Article that are $1,000 or less from any party shall
be waived unless there is a pattern of late payments consisting of three or more
items over the course of any 12-month period.

 

Article XVII
- Offset
(BRMA 36C)

 

The
Company and the Reinsurer shall have the right to offset any balance or amounts
due from one party to the other under the terms of this Contract. The party
asserting the right of offset

 

15

 

may exercise such right any time whether the
balances due are on account of premiums or losses or otherwise.

 

Article XVIII - Access to Records (BRMA
1D)

 

The
Reinsurer or its designated representatives shall have access at any reasonable
time to all records of the Company which pertain in any way to this
reinsurance.

 

Article XIX - Liability of the Reinsurer

 

A.           The liability of the Reinsurer shall follow that of the Company in
every case and be subject in all respects to all the general and specific
stipulations, clauses, waivers and modifications of the Company’s policies and
any endorsements thereon. However, in no event shall this be construed in any
way to provide coverage outside the terms and conditions set forth in this
Contract.

 

B.             Nothing herein shall in any manner create any
obligations or establish any rights against the Reinsurer in favor of any third
party or any persons not parties to this Contract.

 

Article XX - Net Retained Lines (BRMA
32E)

 

A.           This Contract applies only to that portion of any policy which the
Company retains net for its own account (prior to deduction of any underlying
reinsurance specifically permitted in this Contract), and in calculating the
amount of any loss hereunder and also in computing the amount or amounts in
excess of which this Contract attaches, only loss or losses in respect of that
portion of any policy which the Company retains net for its own account shall
be included.

 

B.             The amount of the Reinsurer’s liability
hereunder in respect of any loss or losses shall not be increased by reason of
the inability of the Company to collect from any other reinsurer(s), whether
specific or general, any amounts which may have become due from such
reinsurer(s), whether such inability arises from the insolvency of such other reinsurer(s)
or otherwise.

 

Article XXI - Errors and Omissions

 

Except
as provided in paragraph D of Article II, inadvertent delays, errors or
omissions made in connection with this Contract or any transaction hereunder
shall not relieve either party from any liability which would have attached had
such delay, error or omission not occurred, provided always that such error or
omission is rectified as soon as possible after discovery.

 

Article XXII - Currency (BRMA 12A)

 

A.           Whenever the word “Dollars” or the “$” sign appears in this Contract,
they shall be construed to mean United States Dollars and all transactions
under this Contract shall be in United States Dollars.

 

16

 

B.             Amounts paid or received by the Company in
any other currency shall be converted to United States Dollars at the rate of
exchange at the date such transaction is entered on the books of the Company.

 

Article XXIII - Taxes (BRMA 50B)

 

In
consideration of the terms under which this Contract is issued, the Company
will not claim a deduction in respect of the premium hereon when making tax
returns, other than income or profits tax returns, to any state or territory of
the United States of America or the District of Columbia.

 

Article XXIV - Federal Excise Tax

 

A.           The Reinsurer has agreed to allow for the purpose of paying the Federal
Excise Tax the applicable percentage of the premium payable hereon (as imposed
under Section 4371 of the Internal Revenue Code) to the extent such
premium is subject to the Federal Excise Tax.

 

B.                 In the event of any return of premium
becoming due hereunder the Reinsurer will deduct the applicable percentage from
the return premium payable hereon and the Company or its agent should take
steps to recover the tax from the United States Government.

 

Article XXV - Reserves

 

(Applies
only to a reinsurer which (1) does not qualify for full credit with any
insurance regulatory authority having jurisdiction over the Company’s reserves,
or (2) which is or becomes rated “B++” or lower or holds a “Not Rated”
rating by A.M. Best or is or becomes rated BBB+ or lower by Standard &
Poor’s, unless the Reinsurer has an A.M. Best’s rating of “A” or Standard &
Poor’s rating of “A” and group policyholders’ surplus equal to or above
$2,000,000,000 at the beginning of this Contract)

 

A.           As regards policies or bonds issued by the Company coming within the
scope of this Contract, the Company agrees that when it shall file with the
insurance regulatory authority or set up on its books reserves for unearned
premium (includes deposit premiums paid in excess of ceded premiums earned by
the Reinsurer) losses covered hereunder which it shall be required by law to
set up, it will forward to the Reinsurer a statement showing the proportion of
such reserves which is applicable to the Reinsurer. The Reinsurer hereby agrees
to fund such reserves in respect of known outstanding losses that have been
reported to the Reinsurer and allocated loss adjustment expense relating
thereto, losses and allocated loss adjustment expense paid by the Company but
not recovered from the Reinsurer, plus reserves for losses and allocated loss
adjustment expense incurred but not reported, as shown in the statement
prepared by the Company (hereinafter referred to as “Reinsurer’s Obligations”)
by Regulation 114 trust accounts, funds withheld, cash advances or a Letter of
Credit, or combination thereof. The Reinsurer shall have the option of
determining the method of funding provided it is acceptable to the insurance
regulatory authorities having jurisdiction over the Company’s reserves.

 

17

 

B.             When funding by a Letter of Credit, the
Reinsurer agrees to apply for and secure timely delivery to the Company of a
clean, irrevocable and unconditional Letter of Credit issued by a bank meeting
the NAIC Securities Valuation Office credit standards for issuers of Letters of
Credit and containing provisions acceptable to the insurance regulatory
authorities having jurisdiction over the Company’s reserves in an amount equal
to the Reinsurer’s proportion of said reserves. Such Letter of Credit shall be
issued for a period of not less than one year, and shall contain an “evergreen”
clause, which automatically extends the term for one year from its date of
expiration or any future expiration date unless 30 days (60 days where required
by insurance regulatory authorities) prior to any expiration date the issuing
bank shall notify the Company by certified or registered mail that the issuing
bank elects not to consider the Letter of Credit extended for any additional
period.

 

C.             The Reinsurer and Company agree that the
Letters of Credit provided by the Reinsurer pursuant to the provisions of this
Contract may be drawn upon at any time, notwithstanding any other provision of
this Contract, and be utilized by the Company or any successor, by operation of
law, of the Company including, without limitation, any liquidator,
rehabilitator, receiver or conservator of the Company for the following
purposes, unless otherwise provided for in a separate Trust Agreement:

 

1.               To reimburse the Company for the Reinsurer’s
Obligations, the payment of which is due under the terms of this Contract and
which has not been otherwise paid;

 

2.               To make refund of any sum which is in excess
of the actual amount required to pay the Reinsurer’s Obligations under this
Contract, if so requested by the Reinsurer;

 

3.               To fund an account with the Company for the
Reinsurer’s Obligations, Such cash deposit shall be held in an interest bearing
account separate from the Company’s other assets, and interest thereon not in excess
of the prime rate shall accrue to the benefit of the Reinsurer;

 

4.               To pay the Reinsurer’s share of any other
amounts the Company claims are due under this Contract.

 

In the event the amount drawn by the Company on any
Letter of Credit is in excess of the actual amount required for subparagraphs 1
or 3, or in the case of subparagraph 4, the actual amount determined to be due,
the Company shall promptly return to the Reinsurer the excess amount so drawn.
All of the foregoing shall be applied without diminution because of insolvency
on the part of the Company or the Reinsurer.

 

D.            The issuing bank shall have no responsibility
whatsoever in connection with the propriety of withdrawals made by the Company
or the disposition of funds withdrawn, except to ensure that withdrawals are
made only upon the order of properly authorized representatives of the Company.

 

E.              At quarterly intervals and on an estimated
basis 45 days prior to each December 31, or more frequently as agreed but
never more frequently than quarterly, the Company shall prepare a specific
statement of the Reinsurer’s Obligations, for the sole purpose of amending the
Letter of Credit, in the following manner:

 

1.               If the statement shows that the Reinsurer’s
Obligations exceed the balance of credit as of the statement date, the
Reinsurer shall, within 30 days after receipt of notice of

 

18

 

such excess, secure delivery to the Company of an
amendment to the Letter of Credit increasing the amount of credit by the amount
of such difference.

 

2.               If, however, the statement shows that the
Reinsurer’s Obligations are less than the balance of credit as of the statement
date, the Company shall, within 30 days after receipt of written request from
the Reinsurer, release such excess credit by agreeing to secure an amendment to
the Letter of Credit reducing the amount of credit available by the amount of
such excess credit.

 

Article XXVI
- Insolvency

 

A.           In the event of the insolvency of one or more of the reinsured
companies, this reinsurance shall be payable directly to the company or to its
liquidator, receiver, conservator or statutory successor on the basis of the
liability of the company without diminution because of the insolvency of the
company or because the liquidator, receiver, conservator or statutory successor
of the company has failed to pay all or a portion of any claim. It is agreed,
however, that the liquidator, receiver, conservator or statutory successor of
the company shall give written notice to the Reinsurer of the pendency of a
claim against the company indicating the policy or bond reinsured which claim
would involve a possible liability on the part of the Reinsurer within a
reasonable time after such claim is filed in the conservation or liquidation
proceeding or in the receivership, and that during the pendency of such claim,
the Reinsurer may investigate such claim and interpose, at its own expense, in
the proceeding where such claim is to be adjudicated, any defense or defenses
that it may deem available to the company or its liquidator, receiver,
conservator or statutory successor. The expense thus incurred by the Reinsurer
shall be chargeable, subject to the approval of the Court, against the company
as part of the expense of conservation or liquidation to the extent of a pro
rata share of the benefit which may accrue to the company solely as a result of
the defense undertaken by the Reinsurer.

 

B.             Where two or more reinsurers are involved in
the same claim and a majority in interest elect to interpose defense to such
claim, the expense shall be apportioned in accordance with the terms of this
Contract as though such expense had been incurred by the company.

 

C.             It is further understood and agreed that, in
the event of the insolvency of one or more of the reinsured companies, the
reinsurance under this Contract shall be payable directly by the Reinsurer to
the company or to its liquidator, receiver or statutory successor, except as provided
by Section 4118(a) of the New York Insurance Law or except (1) where
this Contract specifically provides another payee of such reinsurance in the
event of the insolvency of the company or (2) where the Reinsurer with the
consent of the direct insured or insureds has assumed such policy obligations
of the company as direct obligations of the Reinsurer to the payees under such
policies and in substitution for the obligations of the company to such payees.

 

Article XXVII - Arbitration

 

A.           As a condition precedent to any right of action hereunder, in the event
of any dispute or difference of opinion hereafter arising with respect to this
Contract, it is hereby mutually agreed that such dispute or difference of
opinion shall be submitted to arbitration. One Arbiter shall be chosen by the
Company, the other by the Reinsurer, and an Umpire shall

 

19

 

be chosen by the two Arbiters before they enter upon
arbitration, all of whom shall be active or retired disinterested executive
officers of insurance or reinsurance companies or Lloyd’s London Underwriters.
In the event that either party should fail to choose an Arbiter within 30 days
following a written request by the other party to do so, the requesting party
may choose two Arbiters who shall in turn choose an Umpire before entering upon
arbitration. If the two Arbiters fail to agree upon the selection of an Umpire
within 30 days following their appointment, the Umpire shall be appointed in
accordance with the procedures of the American Arbitration Association.

 

B.             Each party shall present its case to the
Arbiters within 30 days following the date of appointment of the Umpire. The
Arbiters shall consider this Contract as an honorable engagement rather than
merely as a legal obligation and they are relieved of all judicial formalities
and may abstain from following the strict rules of law. The decision of
the Arbiters shall be final and binding on both parties; but failing to agree,
they shall call in the Umpire and the decision of the majority shall be final
and binding upon both parties. Judgment upon the final decision of the Arbiters
may be entered in any court of competent jurisdiction.

 

C.             If more than one reinsurer is involved in the
same dispute, all such reinsurers shall constitute and act as one party for
purposes of this Article and communications shall be made by the Company
to each of the reinsurers constituting one party, provided, however, that
nothing herein shall impair the rights of such reinsurers to assert several,
rather than joint, defenses or claims, nor be construed as changing the
liability of the reinsurers participating under the terms of this Contract from
several to joint.

 

D.            Each party shall bear the expense of its own
Arbiter, and shall jointly and equally bear with the other the expense of the
Umpire and of the arbitration. In the event that the two Arbiters are chosen by
one party, as above provided, the expense of the Arbiters, the Umpire and the
arbitration shall be equally divided between the two parties.

 

E.              Any arbitration proceedings shall take place
at a location mutually agreed upon by the parties to this Contract, but
notwithstanding the location of the arbitration, all proceedings pursuant
hereto shall be governed by the law of the state in which the Company has its principal
office.

 

Article XXVIII - Service of Suit (BRMA
49C)

 

(Applicable
if the Reinsurer is not domiciled in the United States of America, and/or is
not authorized in any State, Territory or District of the United States where
authorization is required by insurance regulatory authorities)

 

A.           It is agreed that in the event the Reinsurer fails to pay any amount
claimed to be due hereunder, the Reinsurer, at the request of the Company, will
submit to the jurisdiction of a court of competent jurisdiction within the
United States. Nothing in this Article constitutes or should be understood
to constitute a waiver of the Reinsurer’s rights to commence an action in any
court of competent jurisdiction in the United States, to remove an action to a
United States District Court, or to seek a transfer of a case to another court
as permitted by the laws of the United States or of any state in the United
States.

 

20

 

B.             Further, pursuant to any statute of any
state, territory or district of the United States which makes provision
therefor, the Reinsurer hereby designates the party named in its Interests and
Liabilities Agreement, or if no party is named therein, the Superintendent,
Commissioner or Director of Insurance or other officer specified for that
purpose in the statute, or his successor or successors in office, as its true
and lawful attorney upon whom may be served any lawful process in any action,
suit or proceeding instituted by or on behalf of the Company or any beneficiary
hereunder arising out of this Contract.

 

Article XXIX - Agency Agreement

 

If
more than one reinsured company is named as a party to this Contract, the first
named company shall be deemed the agent of the other reinsured companies
(subject to the provisions of Article XXVI) for purposes of sending or
receiving notices required by the terms and conditions of this Contract, and
for purposes of remitting or receiving any monies due any party.

 

Article XXX - Governing Law (BRMA 71B)

 

This
Contract shall be governed by and construed in accordance with the laws of the
State of Florida.

 

Article XXXI - Intermediary (BRMA 23A)

 

Benfield
Inc. is hereby recognized as the Intermediary negotiating this Contract for all
business hereunder. All communications (including but not limited to notices,
statements, premium, return premium, commissions, taxes, losses, loss
adjustment expense, salvages and loss settlements) relating thereto shall be
transmitted to the Company or the Reinsurer through Benfield Inc. Payments by
the Company to the Intermediary shall be deemed to constitute payment to the
Reinsurer Payments by the Reinsurer to the Intermediary shall be deemed to
constitute payment to the Company only to the extent that such payments are
actually received by the Company.

 

In
Witness Whereof, the Company by its
duly authorized representative has executed this Contract as of the date
undermentioned at:

 

	
  North Palm Beach, Florida, this 28th day of April in the year 2005.

  
	
   

  
	
   

  	
  /s/ ILLEGIBLE

  
	
   

  	
  AmCOMP Preferred Insurance Company

  
	
   

  	
  AmCOMP Assurance Corporation

  
	
   

  	
  any and all insurance companies which are now or hereafter come under

  
	
   

  	
  the same ownership or management as the AmCOMP Group

  

 

 

21

 

Nuclear
Incident Exclusion Clause - Liability - Reinsurance (U.S.A.)

(Approved by Lloyd’s Underwriters’ Fire and
Non-Marine Association)

 

(1)              This reinsurance does not cover any loss or
liability accruing to the Reassured as a member of, or subscriber to, any
association of insurers or reinsurers formed for the purpose of covering
nuclear energy risks or as a direct or indirect reinsurer of any such member,
subscriber or association.

 

(2)               Without in any way restricting the operation
of paragraph (1) of this Clause it is understood and agreed that for all purposes
of this reinsurance all the original policies of the Reassured (new, renewal
and replacement) of the classes specified in Clause II of this paragraph (2) from
the time specified in Clause III in this paragraph (2) shall be deemed to
include the following provision (specified as the Limited Exclusion Provision):

 

Limited Exclusion Provision.*

 

I.                      It is agreed that the policy does not apply under any liability
coverage, to

(injury, sickness, disease, death
or destruction

(bodily injury or property damage

with respect to which an insured under the policy is
also an insured under a nuclear energy liability policy issued by Nuclear
Energy Liability Insurance Association, Mutual Atomic Energy Liability
Underwriters or Nuclear insurance Association of Canada, or would be an insured
under any such policy but for its termination upon exhaustion of its limit of
liability.

II.                  Family Automobile Policies (liability only),
Special Automobile Policies (private passenger automobiles, liability only),
Farmers Comprehensive Personal Liability Policies (liability only),
Comprehensive Personal Liability Policies (liability only) or policies of a
similar nature; and the liability portion of combination forms related to the
four classes of policies stated above, such as the Comprehensive Dwelling
Policy and the applicable types of Homeowners Policies.

III.              The inception dates and thereafter of all
original policies as described in II above, whether new, renewal or
replacement, being policies which either

(a)              become effective on or after 1st May, 1960, or

(b)             become effective before that date and contain
the Limited Exclusion Provision set out above;

provided this paragraph (2) shall not be
applicable to Family Automobile Policies, Special Automobile Policies, or
policies or combination policies of a similar nature, issued by the Reassured
on New York risks, until 90 days following approval of the Limited Exclusion
Provision by the Governmental Authority having jurisdiction thereof.

 

(3)              Except for those classes of policies specified
in Clause II of paragraph (2) and without in any way restricting the
operation of paragraph (1) of this Clause, it is understood and agreed
that for all purposes of this reinsurance the original liability policies of
the Reassured (new, renewal and replacement) affording the following coverages:

 

Owners, Landlords and Tenants Liability, Contractual
Liability, Elevator Liability, Owners or Contractors (including railroad)
Protective Liability, Manufacturers and Contractors Liability, Product Liability,
Professional and Malpractice Liability, Storekeepers Liability. Garage
Liability. Automobile Liability (including Massachusetts Motor Vehicle or
Garage Liability)

 

shall be deemed to include, with respect to such
coverages, from the time specified in Clause V of this paragraph (3), the
following provision (specified as the Broad Exclusion Provision):

 

Broad Exclusion Provision.*

 

It is agreed that the policy
does not apply:

I.                      Under any Liability Coverage to

(injury, sickness, disease, death
or destruction 

(bodily injury or property damage

(a)                with respect to which an insured under the
policy is also an insured under a nuclear energy liability policy issued by
Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability
Underwriters or Nuclear Insurance Association of Canada, or would be an insured
under any such policy but for its termination upon exhaustion of its limit of
liability; or

(b)               resulting from the hazardous properties of
nuclear material and with respect to which (1) any person or organization
is required to maintain financial protection pursuant to the Atomic Energy Act
of 1954, or any law amendatory thereof, or (2) the insured is, or had this
policy not been issued would be, entitled to indemnity from the United States
of America, or any agency thereof, under any agreement entered into by the
United States of America, or any agency thereof, with any person or
organization.

 

1

 

II.                  Under any Medical Payments Coverage, or under
any Supplementary Payments Provision relating to

(immediate
medical or surgical relief

(first aid, 

to expenses incurred with respect to

(bodily
injury, sickness, disease or death

(bodily injury

resulting from the hazardous properties of nuclear
material and arising out of the operation of a nuclear facility by any person
or organization.

III.              Under any Liability Coverage to

(injury, sickness, disease, death
or destruction 

(bodily injury or property damage 

resulting from the hazardous properties of nuclear
material, if

(a)              the nuclear material (1) is at any
nuclear facility owned by, or operated by or on behalf of, an insured or (2) has
been discharged or dispersed therefrom;

(b)             the nuclear material is contained in spent
fuel or waste at any time possessed, handled, used, processed, stored,
transported or disposed of by or on behalf of an insured; or

(c)              the

(injury, sickness, disease, death
or destruction

(bodily injury or property damage

arises out of the furnishing by an insured of
services, materials, parts or equipment in connection with the planning,
construction, maintenance, operation or use of any nuclear facility, but if
such facility is located within the United States of America, its territories,
or possessions or Canada, this exclusion (c) applies only to

(injury to or destruction of
property at such nuclear facility

(property damage to such nuclear facility and any
property thereat.

IV.              As used in this endorsement:

“hazardous properties” include radioactive, toxic or
explosive properties; “nuclear material” means source material, special nuclear
material or byproduct material; “source material”, “special nuclear material”,
and “byproduct material” have the meanings given them in the Atomic Energy Act
of 1954 or in any law amendatory thereof; “spent fuel” means any fuel element
or fuel component, solid or liquid, which has been used or exposed to radiation
in a nuclear reactor; “waste” means any waste material (1) containing
byproduct material and (2) resulting from the operation by any person or
organization of any nuclear facility included within the definition of nuclear
facility under paragraph (a) or (b) thereof; “nuclear facility” means

(a)              any nuclear reactor,

(b)             any equipment or device designed or used for (1) separating
the isotopes of uranium or plutonium, (2) processing or utilizing spent
fuel, or (3) handling processing or packaging waste,

(c)              any equipment or device used for the
processing, fabricating or alloying of special nuclear material if at any time
the total amount of such material in the custody of the insured at the premises
where such equipment or device is located consists of or contains more than 25
grams of plutonium or uranium 233 or any combination thereof, or more than 250
grams of uranium 235,

(d)             any structure, basin, excavation, premises or
place prepared or used for the storage or disposal of waste, and includes the
site on which any of the foregoing is located, all operations conducted on such
site and all premises used for such operations; “nuclear reactor” means any
apparatus designed or used to sustain nuclear fission in a self-supporting
chain reaction or to contain a critical mass of fissionable material;

(With respect to injury to or
destruction of property, the word “injury” or “destruction,”

(“property damage” includes all forms of radioactive
contamination of property,

(includes all forms of radioactive
contamination of property.

V.      The inception dates and thereafter of all
original policies affording coverages specified in this paragraph (3), whether
new, renewal or replacement, being policies which become effective on or after
1st May, 1960, provided this paragraph (3) shall not be applicable to

(i)                  Garage and Automobile Policies issued by the
Reassured on New York risks, or

(ii)               statutory liability insurance required under
Chapter 90, General Laws of Massachusetts, until 90 days following approval of
the Broad Exclusion Provision by the Governmental Authority having jurisdiction
thereof.

(4)               Without in any way restricting the operation
of paragraph (1) of this Clause, it is understood and agreed that
paragraphs (2) and (3) above are not applicable to original liability
policies of the Reassured in Canada and that with respect to such policies this
Clause shall be deemed to include the Nuclear Energy Liability Exclusion
Provisions adopted by the Canadian Underwriters’ Association or the Independent
Insurance Conference of Canada.

 

*NOTE. The words printed in italics in the Limited Exclusion
Provision and in the Broad Exclusion Provision shall apply only in relation to
original liability policies which include a Limited Exclusion Provision or a
Broad Exclusion Provision containing those words.

 

2

 

Nuclear
Incident Exclusion Clause Reinsurance - No. 4

 

(1)                                  This reinsurance does not cover any loss or
liability accruing to the Reassured as a member of, or subscriber to, any
association of insurers formed for the purpose of covering nuclear energy risks
or as a direct or indirect reinsurer of any such member, subscriber or
association.

 

(2)                                  Without in any way restricting the operations
of Nuclear Incident Exclusion Clause No. 1B - Liability, No. 2 -
Physical Damage, No. 3 - Boiler and Machinery and paragraph (1) of
this clause, it is understood and agreed that for all purposes as respects the
reinsurance assumed by the Reinsurer from the Reassured, all original insurance
policies or contracts of the Reassured (new, renewal and replacement) shall be
deemed to include the applicable existing Nuclear Clause and/or Nuclear
Exclusion Clause(s) in effect at the time and any subsequent revisions thereto
as agreed upon and approved by the Insurance Industry and/or a qualified
Advisory or Rating Bureau.

 

 

Pollution
Exclusion Clause - General Liability - Reinsurance

 

A.                This reinsurance excludes all loss and/or
liability accruing to the reinsured company as a result of:

 

1.                    bodily injury or property damage arising out
of the actual, alleged or threatened discharge, dispersal, release or escape of
pollutants:

 

a.                   at or from premises owned, rented or occupied
by a named insured;

 

b.                  at or from any site or location used by or
for a named insured or others for the handling, storage, disposal, processing
or treatment of waste;

 

c.                   which are at any time transported, handled,
stored, treated, disposed of, or processed as waste by or for a named insured
or any person or organization for whom a named insured may be legally
responsible; or

 

d.                  at or from any site or location on which a
named insured or any contractors or subcontractors working directly or
indirectly on behalf of a named insured are performing operations:

 

(i)                  if the pollutants are brought on or to the
site or location in connection with such operations; or

 

(ii)               if the operations are to test for, monitor,
clean up, remove, contain, treat, detoxify or neutralize the pollutants;

 

2.                    any governmental direction or request that a
named insured test for, monitor, clean up, remove, contain, treat, detoxify or
neutralize pollutants.

 

B.                 Subparagraphs A(1)(a) and A(1)(d)(i) above
do not apply to bodily injury or property damage caused by heat, smoke or fumes
from a hostile fire.

 

C.                 “Hostile fire” means a fire which becomes
uncontrollable or breaks out from where it was intended to be.

 

D.                “Pollutants” means any solid, liquid, gaseous
or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids,
alkalis, chemicals and waste. Waste includes material to be recycled,
reconditioned or reclaimed.

 

 

War Risk
Exclusion Clause (Reinsurance)

 

As
regards interests which at time of loss or damage are on shore, no liability
shall attach hereto in respect of any loss or damage which is occasioned by
war, invasion, hostilities, acts of foreign enemies, civil war, rebellion,
insurrection, military or usurped power, or martial law or confiscation by
order of any government or public authority.

 

Nevertheless, this clause shall not be construed to
apply to loss or damage occasioned by riots, strikes, civil commotion,
vandalism or malicious damage.

 

3Exhibit 10.01

 

 

UNDER ARMOUR, INC.

 

2005 OMNIBUS LONG-TERM INCENTIVE PLAN

 

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  PURPOSE

  	
   

  
	
  2.

  	
  DEFINITIONS

  	
   

  
	
  3.

  	
  ADMINISTRATION
  OF THE PLAN

  	
   

  
	
   

  	
  3.1.

  	
  General

  	
   

  
	
   

  	
  3.2.

  	
  Deferral Arrangement

  	
   

  
	
   

  	
  3.3.

  	
  No Liability

  	
   

  
	
   

  	
  3.4.

  	
  Book Entry

  	
   

  
	
  4.

  	
  STOCK SUBJECT TO
  THE PLAN

  	
   

  
	
  5.

  	
  EFFECTIVE
  DATE, DURATION AND AMENDMENTS

  	
   

  
	
   

  	
  5.1.

  	
  Term

  	
   

  
	
   

  	
  5.2.

  	
  Amendment and Termination of
  the Plan

  	
   

  
	
  6.

  	
  AWARD
  ELIGIBILITY AND LIMITATIONS

  	
   

  
	
   

  	
  6.1.

  	
  Service Providers and Other
  Persons

  	
   

  
	
   

  	
  6.2.

  	
  Successive Awards

  	
   

  
	
   

  	
  6.3.

  	
  Stand-Alone, Additional,
  Tandem, and Substitute Awards

  	
   

  
	
  7.

  	
  AWARD AGREEMENT

  	
   

  
	
  8.

  	
  TERMS AND
  CONDITIONS OF OPTIONS

  	
   

  
	
   

  	
  8.1.

  	
  Option Price

  	
   

  
	
   

  	
  8.2.

  	
  Vesting

  	
   

  
	
   

  	
  8.3.

  	
  Term

  	
   

  
	
   

  	
  8.4.

  	
  Termination of Service

  	
   

  
	
   

  	
  8.5.

  	
  Limitations on Exercise of
  Option

  	
   

  
	
   

  	
  8.6.

  	
  Method of Exercise

  	
   

  
	
   

  	
  8.7.

  	
  Rights of Holders of Options

  	
   

  
	
   

  	
  8.8.

  	
  Delivery of Stock
  Certificates

  	
   

  
	
   

  	
  8.9.

  	
  Transferability of Options

  	
   

  
	
   

  	
  8.10.

  	
  Family Transfers

  	
   

  
	
   

  	
  8.11.

  	
  Limitations on Incentive
  Stock Options

  	
   

  
	
  9.

  	
  TERMS
  AND CONDITIONS OF STOCK APPRECIATION RIGHTS

  	
   

  
	
   

  	
  9.1.

  	
  Right to Payment

  	
   

  
	
   

  	
  9.2.

  	
  Other Terms

  	
   

  
	
  10.

  	
  TERMS
  AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS

  	
   

  
	
   

  	
  10.1.

  	
  Restrictions

  	
   

  
	
   

  	
  10.2.

  	
  Restricted Stock Certificates

  	
   

  
	
   

  	
  10.3.

  	
  Rights of Holders of
  Restricted Stock

  	
   

  
	
   

  	
  10.4.

  	
  Rights of Holders of
  Restricted Stock Units

  	
   

  
	
   

  	
   

  	
  10.4.1.

  	
  Voting and Dividend Rights

  	
   

  
	
   

  	
   

  	
  10.4.2.

  	
  Creditor’s Rights

  	
   

  
	
   

  	
  10.5.

  	
  Termination of Service

  	
   

  
	
   

  	
  10.6.

  	
  Purchase of Restricted Stock

  	
   

  

 

i

 

	
   

  	
  10.7.

  	
  Delivery of Stock

  	
   

  
	
  11.

  	
  TERMS
  AND CONDITIONS OF UNRESTRICTED STOCK AWARDS

  	
   

  
	
  12.

  	
  FORM OF
  PAYMENT FOR OPTIONS AND RESTRICTED STOCK

  	
   

  
	
   

  	
  12.1.

  	
  General Rule

  	
   

  
	
   

  	
  12.2.

  	
  Surrender of Stock

  	
   

  
	
   

  	
  12.3.

  	
  Cashless Exercise

  	
   

  
	
   

  	
  12.4.

  	
  Other Forms of Payment

  	
   

  
	
  13.

  	
  TERMS
  AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS

  	
   

  
	
   

  	
  13.1.

  	
  Dividend Equivalent Rights

  	
   

  
	
   

  	
  13.2.

  	
  Termination of Service

  	
   

  
	
  14.

  	
  TERMS
  AND CONDITIONS OF PERFORMANCE AND ANNUAL INCENTIVE AWARDS

  	
   

  
	
   

  	
  14.1.

  	
  Performance Conditions

  	
   

  
	
   

  	
  14.2.

  	
  Performance or Annual
  Incentive Awards Granted to Designated Covered Employees

  	
   

  
	
   

  	
   

  	
  14.2.1.

  	
  Performance Goals Generally

  	
   

  
	
   

  	
   

  	
  14.2.2.

  	
  Business Criteria

  	
   

  
	
   

  	
   

  	
  14.2.3.

  	
  Timing for Establishing
  Performance Goals

  	
   

  
	
   

  	
   

  	
  14.2.4.

  	
  Settlement of Performance or
  Annual Incentive Awards; Other Terms

  	
   

  
	
   

  	
  14.3.

  	
  Written Determinations

  	
   

  
	
   

  	
  14.4.

  	
  Status of Section 14.2
  Awards Under Code Section 162(m)

  	
   

  
	
  15.

  	
  REQUIREMENTS OF LAW

  	
   

  
	
   

  	
  15.1.

  	
  General

  	
   

  
	
   

  	
  15.2.

  	
  Rule 16b-3

  	
   

  
	
  16.

  	
  EFFECT
  OF CHANGES IN CAPITALIZATION

  	
   

  
	
   

  	
  16.1.

  	
  Changes in Stock

  	
   

  
	
   

  	
  16.2.

  	
  Definition of Change in
  Control

  	
   

  
	
   

  	
  16.3.

  	
  Effect of Change of Change in
  Control

  	
   

  
	
   

  	
  16.4.

  	
  Reorganization Which Does
  Not Constitute a Change in Control

  	
   

  
	
   

  	
  16.5.

  	
  Adjustments

  	
   

  
	
   

  	
  16.6.

  	
  No Limitations on Company

  	
   

  
	
  17.

  	
  GENERAL PROVISIONS

  	
   

  
	
   

  	
  17.1.

  	
  Disclaimer of Rights

  	
   

  
	
   

  	
  17.2.

  	
  Nonexclusivity of the Plan

  	
   

  
	
   

  	
  17.3.

  	
  Withholding Taxes

  	
   

  
	
   

  	
  17.4.

  	
  Captions

  	
   

  
	
   

  	
  17.5.

  	
  Other Provisions

  	
   

  
	
   

  	
  17.6.

  	
  Number and Gender

  	
   

  
	
   

  	
  17.7.

  	
  Severability

  	
   

  
	
   

  	
  17.8.

  	
  Governing Law

  	
   

  
	
   

  	
  17.9.

  	
  Section 409A

  	
   

  
	
   

  	
   

  	
  17.9.1.

  	
  Short-Term Deferrals

  	
   

  
	
   

  	
   

  	
  17.9.2.

  	
  Adjustments

  	
   

  

 

ii

 

UNDER ARMOUR, INC.

 

2005 OMNIBUS LONG-TERM INCENTIVE PLAN

 

Under Armour, Inc., a Maryland corporation (the “Company”),
sets forth herein the terms of its 2005 Omnibus Long-Term Incentive Plan (the “Plan”),
as follows:

 

1.             PURPOSE

 

The Plan is intended to enhance the Company’s and its Affiliates’ (as
defined herein) ability to attract and retain highly qualified officers,
directors, key employees, and other persons, and to motivate such officers, directors,
key employees, and other persons to serve the Company and its Affiliates and to
expend maximum effort to improve the business results and earnings of the
Company, by providing to such persons an opportunity to acquire or increase a
direct proprietary interest in the operations and future success of the
Company.  To this end, the Plan provides
for the grant of stock options, stock appreciation rights, restricted stock,
restricted stock units, unrestricted stock, dividend equivalent rights and cash
awards.  Any of these awards may, but
need not, be made as performance incentives to reward attainment of annual or
long-term performance goals in accordance with the terms hereof.  Stock options granted under the Plan may be
non-qualified stock options or incentive stock options, as provided herein.

 

2.             DEFINITIONS

 

For purposes of interpreting the Plan and related documents (including
Award Agreements), the following definitions shall apply:

 

2.1           “Affiliate” means any company or other trade or
business that “controls,” is “controlled by” or is “under common control” with
the Company within the meaning of Rule 405 of Regulation C under the
Securities Act, including, without limitation, any Subsidiary.

 

2.2           “Annual Incentive Award” means an Award
made subject to attainment of performance goals (as described in Section 14) over a performance period of a duration as
specified by the Committee).

 

2.3           “Award” means a grant of an Option, Stock
Appreciation Right, Restricted Stock, Restricted Stock Unit, Unrestricted
Stock, Dividend Equivalent Rights, or cash award under
the Plan.

 

2.4           “Award Agreement” means the written agreement between
the Company and a Grantee that evidences and sets out the terms and conditions
of an Award.

 

2.5           “Board” means the Board of Directors of the
Company.

 

 

2.6           “Cause” means, as determined by the
Board and unless otherwise provided in an applicable agreement with the Company
or an Affiliate at or before the Grant Date, (i) gross negligence or
willful misconduct in connection with the performance of duties; (ii) conviction
of a criminal offense (other than minor traffic offenses); or (iii) material
breach of any term of any employment, consulting or other services,
confidentiality, intellectual property or non-competition agreements, if any,
between the Service Provider and the Company or an Affiliate.

 

2.7           “Change in Control” shall have the meaning set forth in Section 16.2.

 

2.8           “Code” means the Internal Revenue Code of 1986, as now in effect or as
hereafter amended.

 

2.9           “Committee” means the Compensation Committee of the Board, or such other
committee as determined by the Board.

 

2.10         “Company”
means Under Armour, Inc.

 

2.11         “Covered Employee”
means a Grantee who is a “covered employee” within the meaning of Section 162(m)(3) of the Code as qualified by Section 14.4 herein.

 

2.12         “Disability”
means the Grantee is unable to perform each of the essential duties of such
Grantee’s position by reason of a medically determinable physical or mental
impairment which is potentially permanent in character or which can be expected
to last for a continuous period of not less than 12 months; provided, however,
that, with respect to rules regarding expiration of an Incentive Stock
Option following termination of the Grantee’s Service, Disability shall mean
the Grantee is unable to engage in any substantial gainful activity by reason
of a medically determinable physical or mental impairment which can be expected
to result in death or which has lasted or can be expected to last for a
continuous period of not less than 12 months.

 

2.13         “Dividend Equivalent Right” means a right, granted to a Grantee under Section 13
hereof, to receive cash, Stock, other Awards or other property equal in value
to dividends paid with respect to a specified number of shares of Stock, or
other periodic payments.

 

2.14         “Effective Date” means
           
        , 2005, the effective date of
the Company’s Initial Public Offering.

 

2.15         “Exchange Act” means the Securities Exchange Act of 1934, as now
in effect or as hereafter amended.

 

2.16         “Fair Market Value” means the value of a share of Stock, determined as
follows:  if on the Grant Date the Stock
is listed on an established national or regional stock exchange, is admitted to
quotation on The Nasdaq Stock Market, Inc. or is publicly traded on an
established securities market, the Fair Market Value of a share of Stock shall
be the closing price of the Stock on such exchange or in such market (if there
is more than one such exchange or market the Committee shall determine the appropriate
exchange or

 

2

 

market) on the
Grant Date or (or if there is no such reported closing price, the Fair Market
Value shall be the mean between the highest bid and lowest asked prices or
between the high and low sale prices on such trading day) or, if no sale of
Stock is reported for such trading day, on the next preceding day on which any
sale shall have been reported.  If the
Stock is not listed on such an exchange, quoted on such system or traded on such
a market, Fair Market Value shall be the value of the Stock as determined by
the Committee in good faith using a reasonable valuation method in accordance
with Section 409A of the Code.

 

2.17         “Family Member”
means a person who is a spouse, former spouse, child, stepchild, grandchild,
parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law,
including adoptive relationships, of the applicable individual, any person
sharing the applicable individual’s
household (other than a tenant or employee), a trust in which any one or more
of these persons have more than fifty percent of the beneficial interest, a
foundation in which any one or more of these persons (or the applicable
individual) control the management of assets, and any other entity in which one
or more of these persons (or the applicable individual) own more than fifty
percent of the voting interests.

 

2.18         “Grant Date” means, as determined by the Committee, the latest
to occur of (i) the date as of which the Committee approves an Award, (ii) the
date on which the recipient of an Award first becomes eligible to receive an
Award under Section 6 hereof, or (iii) such other date as may be
specified by the Committee in the Award Agreement.

 

2.19         “Grantee” means a person who receives or holds an Award
under the Plan.

 

2.20         “Incentive Stock Option” means an “incentive stock option” within the
meaning of Section 422 of the Code, or the corresponding provision of any
subsequently enacted tax statute, as amended from time to time.

 

2.21         “Non-qualified Stock Option” means an Option that is not an Incentive Stock
Option.

 

2.22         “Option” means an option to purchase one or more shares of
Stock pursuant to the Plan.

 

2.23         “Option Price” means the exercise price for each share of Stock
subject to an Option.

 

2.24         “Outside Director” means a member of the Board who is not an officer
or employee of the Company or an Affiliate.

 

2.25         “Performance Award” means an Award made subject to the attainment of
performance goals (as described in Section 14) over a performance period of up to ten (10) years.

 

2.26         “Plan” means this the Under Armour, Inc. 2005
Omnibus Long-Term Incentive Plan.

 

3

 

2.27         “Purchase Price” means the purchase price for each share of Stock
pursuant to a grant of Restricted Stock or Unrestricted Stock.

 

2.28         “Reporting Person” means a person who is required to file reports
under Section 16(a) of the Exchange Act.

 

2.29         “Restricted Stock” means shares of Stock, awarded to a Grantee
pursuant to Section 10 hereof.

 

2.30         “Restricted Stock Unit” means
a bookkeeping entry representing the equivalent of shares of Stock, awarded to
a Grantee pursuant to Section 10
hereof.

 

2.31         “SAR Exercise Price” means the per share exercise price of an SAR
granted to a Grantee under Section 9 hereof.

 

2.32         “Section 409A” shall mean Section 409A of the Code and the
regulations promulgated thereunder.

 

2.33         “Securities Act” means the Securities Act of 1933, as now in effect
or as hereafter amended.

 

2.34        “Service” means service as a Service Provider to the Company
or an Affiliate.  Unless otherwise stated
in the applicable Award Agreement, a Grantee’s change in position or duties
shall not result in interrupted or terminated Service, so long as such Grantee
continues to be a Service Provider to the Company or an Affiliate.  Subject to the preceding sentence, whether a
termination of Service shall have occurred for purposes of the Plan shall be
determined by the Committee, which determination shall be final, binding and
conclusive; provided if any Award governed by Section 409A is to be
distributed on a termination of Service, then the definition of Service for
such purposes shall comply with the definition provided in Section 409A.

 

2.35         “Service Provider” means an employee, officer or
director of the Company or an Affiliate, or a consultant or adviser currently
providing services to the Company or an Affiliate.

 

2.36         “Stock” means the class A common stock, par
value $.0003 1/3 per share, of the Company.

 

2.37         “Stock Appreciation Right” or “SAR” means a right granted to a Grantee under Section 9
hereof.

 

2.38         “Subsidiary” means any “subsidiary corporation”
of the Company within the meaning of Section 424(f) of the Code.

 

2.39         “Termination Date” means the date upon which an Option
shall terminate or expire, as set forth in Section 8.3 hereof.

 

4

 

2.40         “Ten Percent Stockholder” means an individual who owns more
than ten percent (10%) of the total combined voting power of all classes of
outstanding stock of the Company, its parent or any of its Subsidiaries.  In determining stock ownership, the
attribution rules of Section 424(d) of the Code shall be applied.

 

2.41         “Unrestricted Stock” means an Award pursuant to Section 11 hereof.

 

3.             ADMINISTRATION
OF THE PLAN

 

3.1.         General.

 

The Committee shall have such powers and authorities
related to the administration of the Plan as are consistent with the Company’s
certificate of incorporation and bylaws and applicable law.  The Committee shall have full power and
authority to take all actions and to make all determinations required or
provided for under the Plan, any Award or any Award Agreement, and shall have full
power and authority to take all such other actions and make all such other
determinations not inconsistent with the specific terms and provisions of the
Plan that the Committee deems to be necessary or appropriate to the
administration of the Plan.  The
interpretation and construction by the Committee of any provision of the Plan,
any Award or any Award Agreement shall be final, binding and conclusive.  Without limitation, the Committee, shall have
full and final authority, subject to the other terms and conditions of the
Plan, to:

 

(i)            designate
Grantees,

 

(ii)           determine
the type or types of Awards to be made to a Grantee,

 

(iii)          determine
the number of shares of Stock to be subject to an Award,

 

(iv)          establish
the terms and conditions of each Award (including, but not limited to, the
Option Price of any Option, the nature and duration of any restriction or
condition (or provision for lapse thereof) relating to the vesting, exercise,
transfer, or forfeiture of an Award or the shares of Stock subject thereto, and
any terms or conditions that may be necessary to qualify Options as Incentive
Stock Options),

 

(v)           prescribe
the form of each Award Agreement, and

 

(vi)          amend,
modify, or supplement the terms of any outstanding Award including the
authority, in order to effectuate the purposes of the Plan, to modify Awards to
foreign nationals or are individuals who are employed outside the
United States to recognize differences in local law, tax policy, or
custom.

 

Notwithstanding the foregoing, no amendment or modification
may be made to an outstanding Option or SAR that (i) that causes the
Option or SAR to become subject to Section 409A, (ii) reduces the
Option Price or SAR Exercise Price, either by lowering the Option Price or SAR
Exercise Price or by canceling the outstanding Option or SAR and granting a
replacement Option or SAR with a lower Option Price or SAR Exercise Price or

 

5

 

(iii) would be treated as a repricing under the rules of
The Nasdaq Stock Market, Inc. or
the otherwise applicable stock exchange without the approval of the
stockholders of the Company, provided, that, appropriate adjustments may be
made to outstanding Options and SARs pursuant to Section 16.

 

The Company may retain the right in an Award Agreement
to cause a forfeiture of the gain realized by a Grantee on account of actions
taken by the Grantee in violation or breach of or in conflict with any
employment agreement, non-competition agreement, any agreement prohibiting
solicitation of employees or clients of the Company or any Affiliate thereof or any confidentiality obligation with respect to
the Company or any Affiliate thereof or
otherwise in competition with the Company or any Affiliate thereof, to the
extent specified in such Award Agreement applicable to the Grantee.  Furthermore, the Company may annul an Award
if the Grantee is an employee of the Company or an Affiliate thereof and is
terminated for Cause as defined in the applicable Award Agreement or the Plan,
as applicable. The grant of any Award shall be contingent upon the Grantee
executing the appropriate Award Agreement.

 

3.2.         Deferral
Arrangement.

 

The Committee may permit or require the deferral of
any Award payment into a deferred compensation arrangement, subject to such rules and
procedures as it may establish and in accordance with Section 409A, which
may include provisions for the payment or crediting of interest or dividend
equivalents, including converting such credits into deferred Stock equivalents
and restricting deferrals to comply with hardship distribution
rules affecting 401(k) plans.

 

3.3.         No Liability.

 

No member of the Board or of the Committee shall be
liable for any action or determination made in good faith with respect to the
Plan, any Award or Award Agreement.

 

3.4.         Book Entry.

 

Notwithstanding any other provision of this Plan to
the contrary, the Company may elect to satisfy any requirement under this Plan
for the delivery of stock certificates through the use of book-entry.

 

4.             STOCK
SUBJECT TO THE PLAN

 

Subject to adjustment as provided in Section 16 hereof, the maximum number of shares of
Stock available for issuance under the Plan shall be 2.7 million.  All such
shares of Stock available for issuance under the Plan shall be available for
issuance pursuant to Incentive Stock Options.  Stock issued or to be issued under the Plan
shall be authorized but unissued shares; or, to the extent permitted by
applicable law, issued shares that have been reacquired by the Company.

 

6

 

The Committee may adopt reasonable counting procedures
to ensure appropriate counting, avoid double counting (as, for example, in the
case of tandem or substitute awards) and make adjustments in accordance with
this Section 4.  If the Option Price of any Option granted
under the Plan, or if pursuant to Section 17.3 the
withholding obligation of any Grantee with respect to an Option or other Award,
is satisfied by tendering shares of Stock to the Company (by either actual
delivery or by attestation) or by withholding shares of Stock, the number of
shares of Stock issued net of the shares of Stock tendered or withheld shall be
deemed delivered for purposes of determining the maximum number of shares of
Stock available for delivery under the Plan. 
To the extent that an Award under the Plan is canceled, expired,
forfeited, settled in cash, settled by issuance of fewer shares than the number
underlying the Award, or otherwise terminated without delivery of shares to the
Grantee, the shares retained by or returned to the Company will be available
under the Plan; and shares that are withheld from such an Award or separately
surrendered by the Grantee in payment of any exercise price or taxes relating
to such an Award shall be deemed to constitute shares not delivered to the
Grantee and will be available under the Plan. 
In addition, in the case of any Award granted in assumption of or in
substitution for an award of a company or business acquired by the Company or a
subsidiary or affiliate or with which the Company or a subsidiary or affiliate
combines, shares issued or issuable in connection with such substitute Award
shall not be counted against the number of shares reserved under the Plan.

 

5.             EFFECTIVE
DATE, DURATION AND AMENDMENTS

 

5.1.         Term.

 

The Plan shall be effective as of the Effective Date
and shall terminate automatically as of the first meeting of stockholders at
which directors are to be elected that occurs after the close of the third
calendar year following the calendar year in which the initial public offering
occurs unless the Plan is approved by the stockholders of the Company prior to
such meeting but subsequent to the Effective Date.  In the event that the Plan is approved by the
stockholders during the time prescribed in the preceding sentence, then the
Plan shall terminate automatically on the ten (10) year anniversary of the
Effective Date and may be terminated on any earlier date as provided in Section 5.2.

 

5.2.         Amendment
and Termination of the Plan.

 

The Board may, at any time and from time to time,
amend, suspend, or terminate the Plan as to any Awards which have not been
made.  An amendment shall be contingent
on approval of the Company’s stockholders to the extent stated by the Board, required
by applicable law or required by applicable stock exchange listing
requirements.  No Awards shall be made
after termination of the Plan.  No
amendment, suspension, or termination of the Plan shall, without the consent of
the Grantee, impair rights or obligations under any Award theretofore awarded.

 

7

 

6.             AWARD
ELIGIBILITY AND LIMITATIONS

 

6.1.         Service
Providers and Other Persons.

 

Subject to this Section 6,
Awards may be made to: (i) any Service Provider, including any Service
Provider who is an officer or director of the Company or of any Affiliate, as
the Committee shall determine and designate from time to time, (ii) any
Outside Director, and (iii) any other individual whose participation in
the Plan is determined to be in the best interests of the Company by the
Committee.

 

6.2.         Successive Awards.

 

An eligible person may receive more than one Award,
subject to such restrictions as are provided herein.

 

6.3.         Stand-Alone,
Additional, Tandem, and Substitute Awards.

 

Awards may, in the discretion of the Committee, be
granted either alone or in addition to, in tandem with, or in substitution or
exchange for, any other Award or any award granted under another plan of the
Company, any Affiliate, or any business entity to be acquired by the Company or
an Affiliate, or any other right of a Grantee to receive payment from the
Company or any Affiliate.  Such
additional, tandem, and substitute or exchange Awards may be granted at any
time.  If an Award is granted in
substitution or exchange for another Award, the Committee shall have the right
to require the surrender of such other Award in consideration for the grant of
the new Award.  The Board shall have the
right, in its discretion, to make Awards in substitution or exchange for any
other award under another plan of the Company, any Affiliate, or any business
entity to be acquired by the Company or an Affiliate.  In addition, Awards may be granted in lieu of
cash compensation, including in lieu of cash amounts payable under other plans
of the Company or any Affiliate, in which the value of Stock subject to the
Award is equivalent in value to the cash compensation (for example, Restricted
Stock Units or Restricted Stock).

 

7.             AWARD
AGREEMENT

 

Each Award shall be evidenced by an Award Agreement,
in such form or forms as the Committee shall from time to time determine.  Award Agreements granted from time to time or
at the same time need not contain similar provisions but shall be consistent
with the terms of the Plan.  Each Award
Agreement evidencing an Award of Options shall specify whether such Options are
intended to be Non-qualified Stock Options or Incentive Stock Options, and in
the absence of such specification such options shall be deemed Non-qualified
Stock Options.

 

8

 

8.             TERMS
AND CONDITIONS OF OPTIONS

 

8.1.         Option Price.

 

The Option Price of each Option shall be fixed by the
Committee and stated in the related Award Agreement.  The Option Price of each Option shall be at
least the Fair Market Value on the Grant Date of a share of Stock; provided,
however, that (a) in the event that a Grantee is a Ten Percent
Stockholder as of the Grant Date, the Option Price of an Option granted to such
Grantee that is intended to be an Incentive Stock Option shall be not less than
110 percent of the Fair Market Value of a share of Stock on the Grant Date, and
(b) with respect to Awards made in substitution for or in exchange for
awards made by an entity acquired by the Company or an Affiliate, the Option
Price does not need to be at least the Fair Market Value on the Grant
Date.  In no case shall the Option Price
of any Option be less than the par value of a share of Stock.

 

8.2.         Vesting.

 

Subject to Section 8.3 hereof,
each Option shall become exercisable at such times and under such conditions as
shall be determined by the Committee and stated in the Award Agreement.  For purposes of this Section 8.2,
fractional numbers of shares of Stock subject to an Option shall be rounded
down to the next nearest whole number.

 

8.3.         Term.

 

Each Option shall terminate, and all rights to
purchase shares of Stock thereunder shall cease, upon the expiration of ten
years from the Grant Date, or under such circumstances and on such date prior
thereto as is set forth in the Plan or as may be fixed by the Committee and
stated in the related Award Agreement (the “Termination Date”); provided,
however, that in the event that the Grantee is a Ten Percent
Stockholder, an Option granted to such Grantee that is intended to be an
Incentive Stock Option at the Grant Date shall not be exercisable after the
expiration of five years from its Grant Date.

 

8.4.         Termination
of Service.

 

Each Award Agreement at the Grant Date shall set forth
the extent to which the Grantee shall have the right to exercise the Option
following termination of the Grantee’s Service. 
Such provisions shall be determined in the sole discretion of the
Committee, need not be uniform among all Options issued, and may reflect
distinctions based on the reasons for termination of Service.

 

8.5.         Limitations
on Exercise of Option.

 

Notwithstanding any other provision of the Plan, in no
event may any Option be exercised, in whole or in part, (i) prior to the
date the Plan is approved by the stockholders of the Company as provided herein
or (ii) after the occurrence of an event referred to in Section 16 hereof which results in termination of the
Option.

 

9

 

8.6.         Method of Exercise.

 

An Option that is exercisable may be exercised by the
Grantee’s delivery to the Company of written notice of exercise on any business
day, at the Company’s principal office, on the form specified by the
Company.  Such notice shall specify the
number of shares of Stock with respect to which the Option is being exercised
and shall be accompanied by payment in full of the Option Price of the shares
for which the Option is being exercised plus the amount (if any) of federal
and/or other taxes which the Company may, in its judgment, be required to
withhold with respect to an Award.  The
minimum number of shares of Stock with respect to which an Option may be
exercised, in whole or in part, at any time shall be the lesser of (i) 100
shares or such lesser number set forth in the related Award Agreement and
(ii) the maximum number of shares available for purchase under the Option
at the time of exercise.

 

8.7.         Rights
of Holders of Options.

 

Unless otherwise stated in the related Award
Agreement, an individual holding or exercising an Option shall have none of the
rights of a stockholder (for example, the right to receive cash or dividend
payments or distributions attributable to the subject shares of Stock or to
direct the voting of the subject shares of Stock ) until the shares of Stock
covered thereby are fully paid and issued to him.  Except as provided in Section 16
hereof, no adjustment shall be made for dividends, distributions or other
rights for which the record date is prior to the date of such issuance.

 

8.8.         Delivery
of Stock Certificates.

 

Promptly after the exercise of an Option by a Grantee
and the payment in full of the Option Price, such Grantee shall be entitled to
the issuance of a stock certificate or certificates evidencing his or her
ownership of the shares of Stock subject to the Option.

 

8.9.         Transferability
of Options.

 

Except as provided in Section 8.10,
during the lifetime of a Grantee, only the Grantee (or, in the event of legal
incapacity or incompetence, the Grantee’s guardian or legal representative) may
exercise an Option.  Except as provided
in Section 8.10, no Option shall be
assignable or transferable by the Grantee to whom it is granted, other than by
will or the laws of descent and distribution.

 

8.10.       Family Transfers.

 

If authorized in the applicable Award Agreement, a
Grantee may transfer, not for value, all or part of an Option which is not an
Incentive Stock Option to any Family Member. 
For the purpose of this Section 8.10,
a “not for value” transfer is a transfer which is (i) a gift, (ii) a
transfer under a domestic relations order in settlement of marital property
rights; or (iii) a transfer to an entity in which more than fifty percent
of the voting interests are owned by Family Members (or the Grantee) in
exchange for an interest in that entity. 
Following a transfer under this Section 8.10,
any such Option shall continue to be subject to the same terms and conditions
as were applicable immediately prior to transfer.  Subsequent transfers of transferred Options
are prohibited except to Family 

 

10

 

Members of the original Grantee in accordance with this Section 8.10 or by will or the laws of descent and
distribution.  Notwithstanding the
foregoing, the Committee may also provide that Options may be transferred to
persons other than Family Members.  The
events of termination of Service of Section 8.4
hereof shall continue to be applied with respect to the original Grantee,
following which the Option shall be exercisable by the transferee only to the
extent, and for the periods specified, in Section 8.4.

 

8.11.       Limitations
on Incentive Stock Options.

 

An Option shall constitute an Incentive Stock Option
only (i) if the Grantee of such Option is an employee of the Company or
any Subsidiary of the Company; (ii) to the extent specifically provided in
the related Award Agreement; and (iii) to the extent that the aggregate
Fair Market Value (determined at the time the Option is granted) of the shares
of Stock with respect to which all Incentive Stock Options held by such Grantee
become exercisable for the first time during any calendar year (under the Plan
and all other plans of the Grantee’s employer and its Affiliates) does not
exceed $100,000.  This limitation shall
be applied by taking Options into account in the order in which they were
granted.

 

9.             TERMS
AND CONDITIONS OF STOCK APPRECIATION RIGHTS

 

9.1.         Right to Payment.

 

An SAR shall confer on the Grantee a right to receive,
upon exercise thereof, the excess of (A) the Fair Market Value of one
share of Stock on the date of exercise over (B) the SAR Exercise Price, as
determined by the Committee.  The Award
Agreement for an SAR shall specify the SAR Exercise Price, which may be fixed
at the Fair Market Value of a share of Stock on the Grant Date or may vary in
accordance with a predetermined formula while the SAR is outstanding; provided
that the SAR Exercise Price may not be less than the Fair Market Value of a
share of Stock on the Grant Date. SARs
may be granted alone or in conjunction with all or part of an Option or at any
subsequent time during the term of such Option or in conjunction with all or
part of any other Award.  An SAR
granted in tandem with an outstanding Option following the Grant Date of such
Option may have a grant price that is equal to the Option Price; provided,
however, that the SAR’s grant price may not be less than the Fair Market
Value of a share of Stock on the Grant Date of the SAR.

 

9.2.         Other Terms.

 

The Committee shall determine at the Grant Date or
thereafter, the time or times at which and the circumstances under which an SAR
may be exercised in whole or in part (including based on achievement of
performance goals and/or future service requirements), the time or times at
which SARs shall cease to be or become exercisable following termination of
Service or upon other conditions, the method of exercise, method of settlement,
form of consideration payable in settlement, method by or forms in which Stock
will be delivered or deemed to be delivered to Grantees, whether or not an SAR
shall be in tandem or in combination with any other Award, and any other terms
and conditions of any SAR.

 

11

 

10.          TERMS AND CONDITIONS OF RESTRICTED STOCK AND RESTRICTED
STOCK UNITS

 

10.1.       Restrictions.

 

At the time of grant, the Committee may, in its sole
discretion, establish a period of time (a “restricted period”) and any
additional restrictions including the satisfaction of corporate or individual
performance objectives applicable to an Award of Restricted Stock or Restricted
Stock Units in accordance with Section 14.1
and 14.2.  Each Award of Restricted Stock or Restricted
Stock Units may be subject to a different restricted period and additional
restrictions.  Neither Restricted Stock
nor Restricted Stock Units may be sold, transferred, assigned, pledged or
otherwise encumbered or disposed of during the restricted period or prior to
the satisfaction of any other applicable restrictions.

 

10.2.       Restricted
Stock Certificates.

 

The Company shall issue stock, in the name of each
Grantee to whom Restricted Stock has been granted, stock certificates or other
evidence of ownership representing the total number of shares of Restricted
Stock granted to the Grantee, as soon as reasonably practicable after the Grant
Date.  The Committee may provide in an Award
Agreement that either (i) the Secretary of the Company shall hold such
certificates for the Grantee’s benefit until such time as the Restricted Stock
is forfeited to the Company or the restrictions lapse, or (ii) such
certificates shall be delivered to the Grantee, provided, however,
that such certificates shall bear a legend or legends that comply with the
applicable securities laws and regulations and makes appropriate reference to
the restrictions imposed under the Plan and the Award Agreement.

 

10.3.       Rights
of Holders of Restricted Stock.

 

Unless the Committee otherwise provides in an Award
Agreement, holders of Restricted Stock shall have the right to vote such Stock
and the right to receive any dividends declared or paid with respect to such
Stock.  The Committee may provide that
any dividends paid on Restricted Stock must be reinvested in shares of Stock,
which may or may not be subject to the same restrictions applicable to such
Restricted Stock.  All distributions, if
any, received by a Grantee with respect to Restricted Stock as a result of any
stock split, stock dividend, combination of shares, or other similar
transaction shall be subject to the restrictions applicable to the original
Award.

 

10.4.       Rights
of Holders of Restricted Stock Units.

 

10.4.1.    Settlement
of Restricted Stock Units.

 

Restricted Stock Units may be settled in cash or
Stock, as determined by the Committee and set forth in the Award
Agreement.  The Award Agreement shall
also set forth whether the Restricted Stock Units shall be settled
(i) within the time period specified in Section 17.9.1
for short term deferrals or (ii) otherwise within the
requirements of Section 409A, in which case the Award Agreement shall
specify upon which events such Restricted Stock Units shall be settled.

 

12

 

10.4.2.    Voting
and Dividend Rights.

 

Holders of Restricted Stock Units shall have no rights
as stockholders of the Company.  The
Committee may provide in an Award Agreement that the holder of such Restricted
Stock Units shall be entitled to receive, upon the Company’s payment of a cash
dividend on its outstanding Stock, a cash payment for each Restricted Stock
Unit held equal to the per-share dividend paid on the Stock, which may be
deemed reinvested in additional Restricted Stock Units at a price per unit
equal to the Fair Market Value of a share of Stock on the date that such
dividend is paid to shareholders.

 

10.4.3.    Creditor’s
Rights.

 

A holder of Restricted Stock Units shall have no
rights other than those of a general creditor of the Company.  Restricted Stock Units represent an unfunded
and unsecured obligation of the Company, subject to the terms and conditions of
the applicable Award Agreement.

 

10.5.       Termination
of Service.

 

Unless the Committee otherwise provides in an Award
Agreement or in writing after the Award Agreement is issued, upon the
termination of a Grantee’s Service, any Restricted Stock or Restricted Stock
Units held by such Grantee that have not vested, or with respect to which all
applicable restrictions and conditions have not lapsed, shall immediately be
deemed forfeited, and the Grantee shall have no further rights with respect to
such Award.

 

10.6.       Purchase
of Restricted Stock.

 

The Grantee shall be required, to the extent required
by applicable law, to purchase the Restricted Stock from the Company at a
Purchase Price equal to the greater of (i) the aggregate par value of the
shares of Stock represented by such Restricted Stock or (ii) the Purchase
Price, if any, specified in the related Award Agreement.  If specified in the Award Agreement, the
Purchase Price may be deemed paid by Services already rendered.  The Purchase Price shall be payable in a form
described in Section 12 or, in the
discretion of the Committee, in consideration for past Services rendered.

 

10.7.       Delivery of Stock.

 

Upon the expiration or termination of any restricted
period and the satisfaction of any other conditions prescribed by the
Committee, the restrictions applicable to shares of Restricted Stock or
Restricted Stock Units settled in Stock shall lapse, and, unless otherwise
provided in the Award Agreement, a stock certificate for such shares shall be
delivered, free of all such restrictions, to the Grantee or the Grantee’s
beneficiary or estate, as the case may be.

 

11.          TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS

 

The Committee may, in its sole discretion, grant (or
sell at par value or such other higher purchase price determined by the
Committee) an Award of Unrestricted Stock to any Grantee pursuant to which such
Grantee may receive shares of Stock free of any restrictions

 

13

 

(“Unrestricted Stock”) under the Plan.  Awards of Unrestricted Stock may be granted
or sold as described in the preceding sentence in respect of past Services
rendered and other valid consideration, or in lieu of, or in addition to, any
cash compensation due to such Grantee. 
Unless otherwise provided by the Committee, Awards of Unrestricted Stock
shall be paid within the time period specified in Section 17.9.1 for short-term deferrals.

 

12.          FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK

 

12.1.       General Rule.

 

Payment of the Option Price for the shares purchased
pursuant to the exercise of an Option or the Purchase Price for Restricted
Stock shall be made in cash or in cash equivalents acceptable to the Company,
except as provided in this Section 12.

 

12.2.       Surrender of Stock.

 

To the extent the Award Agreement so provides, payment
of the Option Price for shares purchased pursuant to the exercise of an Option
or the Purchase Price for Restricted Stock may be made all or in part through
the tender to the Company of shares of Stock, which shares, if acquired from
the Company and if so required by the Company, shall have been held for at
least six months at the time of tender and which shall be valued, for purposes
of determining the extent to which the Option Price or Purchase Price has been
paid thereby, at their Fair Market Value on the date of exercise or surrender.

 

12.3.       Cashless Exercise.

 

With respect to an Option only (and not with respect
to Restricted Stock), to the extent permitted by law and to the extent the
Award Agreement so provides, payment of the Option Price may be made all or in
part by delivery (on a form acceptable to the Committee) of an irrevocable
direction to a licensed securities broker acceptable to the Company to sell
shares of Stock and to deliver all or part of the sales proceeds to the Company
in payment of the Option Price and any withholding taxes described in Section 17.3.

 

12.4.       Other
Forms of Payment.

 

To the extent the Award Agreement so provides, payment
of the Option Price or the Purchase Price may be made in any other form that is
consistent with applicable laws, regulations and rules.

 

13.          TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS

 

13.1.       Dividend
Equivalent Rights.

 

A Dividend Equivalent Right is an Award entitling the
Grantee to receive credits based on cash distributions that would have been
paid on the shares of Stock specified in

 

14

 

the Dividend Equivalent Right (or other award to which
it relates) if such shares had been issued to and held by the Grantee.  A Dividend Equivalent Right may be granted
hereunder to any Grantee as a component of another award or as a freestanding
Award.  The terms and conditions of
Dividend Equivalent Rights shall be specified in the Award Agreement.  Dividend equivalents credited to the holder
of a Dividend Equivalent Right may be paid currently or may be deemed to be
reinvested in additional shares of Stock, which may thereafter accrue
additional equivalents.  Any such
reinvestment shall be at Fair Market Value on the date of reinvestment.  Dividend Equivalent Rights may be settled in
cash or Stock or a combination thereof, in a single installment or
installments, all determined in the sole discretion of the Committee.  Unless otherwise provided in an Award
Agreement, Dividend Equivalent Rights shall be paid within the time period
specified in Section 17.9.1
for short-term deferrals.  A Dividend
Equivalent Right granted as a component of another award may provide that such
Dividend Equivalent Right shall be settled upon exercise, settlement, or
payment of, or lapse of restrictions on, such other award, and that such
Dividend Equivalent Right shall expire or be forfeited or annulled under the
same conditions as such other award.  A
Dividend Equivalent Right granted as a component of another Award may also
contain terms and conditions different from such other award.

 

13.2.       Termination
of Service.

 

Except as may otherwise be provided by the Committee either in the
Award Agreement or in writing after the Award Agreement is issued, a Grantee’s
rights in all Dividend Equivalent Rights or interest equivalents shall
automatically terminate upon the Grantee’s termination of Service for any
reason.

 

14.          TERMS AND CONDITIONS OF PERFORMANCE AND ANNUAL INCENTIVE
AWARDS

 

14.1.       Performance
Conditions.

 

The right of a Grantee
to exercise or receive a grant or settlement of any Award, and the timing
thereof, may be subject to such performance conditions as may be specified by
the Committee.  The Committee may use
such business criteria and other measures of performance as it may deem
appropriate in establishing any performance conditions, and may exercise its
discretion to reduce the amounts payable under any Award subject to performance
conditions, except as limited under Sections 14.2 hereof
in the case of a Performance Award or Annual Incentive Award intended to
qualify under Code Section 162(m).

 

14.2.       Performance
or Annual Incentive Awards Granted to Designated Covered Employees.

 

If and to the extent
that the Committee determines that a Performance or Annual Incentive Award to
be granted to a Grantee who is designated by the Committee as likely to be a
Covered Employee should qualify as “performance-based compensation” for

 

15

 

purposes of Code Section 162(m),
the grant, exercise and/or settlement of such Performance or Annual Incentive
Award shall be contingent upon achievement of pre-established performance goals
and other terms set forth in this Section 14.2.

 

14.2.1.    Performance
Goals Generally.

 

The performance goals for such Performance or Annual
Incentive Awards shall consist of one or more business criteria and a targeted
level or levels of performance with respect to each of such criteria, as
specified by the Committee consistent with this Section 14.2.  Performance goals shall be objective and
shall otherwise meet the requirements of Code Section 162(m) and
regulations thereunder including the requirement that the level or levels of
performance targeted by the Committee result in the achievement of performance
goals being “substantially uncertain.” 
The Committee may determine that such Performance or Annual Incentive
Awards shall be granted, exercised and/or settled upon achievement of any one
performance goal or that two or more of the performance goals must be achieved
as a condition to grant, exercise and/or settlement of such Performance or
Annual Incentive Awards.  Performance
goals may differ for Performance or Annual Incentive Awards granted to any one
Grantee or to different Grantees.

 

14.2.2.    Business
Criteria.

 

One or more of the following business criteria for the
Company, on a consolidated basis, and/or specified subsidiaries or business
units of the Company (except with respect to the total stockholder return and
earnings per share criteria), shall be used exclusively by the Committee in
establishing performance goals for such Performance or Annual Incentive Awards:
(1) total stockholder return; (2) such total stockholder return as
compared to total return (on a comparable basis) of a publicly available index
such as, but not limited to, the Standard & Poor’s 500 Stock Index;
(3) net income; (4) pretax earnings; (5) earnings before
interest expense, taxes, depreciation and amortization; (6) pretax
operating earnings after interest expense and before bonuses, service fees, and
extraordinary or special items; (7) operating margin; (8) earnings
per share; (9) return on equity; (10) return on capital; (11) return
on investment; (12) operating earnings; (13) working capital; (14) ratio of
debt to stockholders’ equity and (15) revenue.

 

14.2.3.        Timing
for Establishing Performance Goals.

 

Performance goals shall be established not later than
90 days after the beginning of any performance period applicable to such
Performance or Annual Incentive Awards, or at such other date as may be
required or permitted for “performance-based compensation” under Code
Section 162(m).

 

14.2.4.        Settlement
of Performance or Annual Incentive Awards; Other Terms.

 

Settlement of such Performance or Annual Incentive
Awards shall be in cash, Stock, other Awards or other property, in the discretion
of the Committee.  The Committee may, in
its discretion, reduce the amount of a settlement otherwise to be made in
connection with such Performance or Annual Incentive Awards.  The Committee shall specify the

 

16

 

circumstances in which such Performance or Annual Incentive Awards
shall be paid or forfeited in the event of termination of Service by the
Grantee prior to the end of a performance period or settlement of Performance
Awards.

 

14.3.       Written
Determinations.

 

All determinations by
the Committee as to the establishment of performance goals, the amount of any
Performance Award pool or potential individual Performance Awards and as to the
achievement of performance goals relating to Performance Awards, and the amount
of any Annual Incentive Award pool or potential individual Annual Incentive
Awards and the amount of final Annual Incentive Awards, shall be made in
writing in the case of any Award intended to qualify under Code
Section 162(m).  To the extent
permitted by Code Section 162(m), the Committee may delegate any
responsibility relating to such Performance Awards or Annual Incentive Awards.

 

14.4.       Status of Section 14.2 Awards Under
Code Section 162(m).

 

It is the intent of the
Company that Performance Awards and Annual Incentive Awards under Section 14.2 hereof granted to persons who are
designated by the Committee as likely to be Covered Employees within the
meaning of Code Section 162(m) and regulations thereunder shall, if so
designated by the Committee, constitute “qualified performance-based
compensation” within the meaning of Code Section 162(m) and regulations
thereunder.  Accordingly, the terms of Section 14.2, including the definitions of Covered
Employee and other terms used therein, shall be interpreted in a manner
consistent with Code Section 162(m) and regulations thereunder.  The foregoing notwithstanding, because the
Committee cannot determine with certainty whether a given Grantee will be a
Covered Employee with respect to a fiscal year that has not yet been completed,
the term Covered Employee as used herein shall mean only a person designated by
the Committee, at the time of grant of Performance Awards or an Annual
Incentive Award, as likely to be a Covered Employee with respect to that fiscal
year.  If any provision of the Plan or
any agreement relating to such Performance Awards or Annual Incentive Awards
does not comply or is inconsistent with the requirements of Code Section 162(m)
or regulations thereunder, such provision shall be construed or deemed amended
to the extent necessary to conform to such requirements.

 

15.          REQUIREMENTS
OF LAW

 

15.1.       General.

 

The Company shall not be required to sell or issue any
shares of Stock under any Award if the sale or issuance of such shares would
constitute a violation by the Grantee, any other individual exercising an
Option, or the Company of any provision of any law or regulation of any
governmental authority, including without limitation any federal or state
securities laws or regulations.  If at
any time the Company shall determine, in its discretion, that the listing,
registration or qualification of any shares 
subject to an Award upon any securities exchange or under any
governmental regulatory body is necessary or desirable as a condition of, or in
connection with, the issuance or purchase of shares hereunder, no shares of

 

17

 

Stock may be issued or sold to the Grantee or any other individual
exercising an Option pursuant to such Award unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of
any conditions not acceptable to the Company, and any delay caused thereby
shall in no way affect the date of termination of the Award.  Specifically, in connection with the
Securities Act, upon the exercise of any Option or the delivery of any shares
of Stock underlying an Award, unless a registration statement under such Act is
in effect with respect to the shares of Stock covered by such Award, the
Company shall not be required to sell or issue such shares unless the Committee
has received evidence satisfactory to it that the Grantee or any other
individual exercising an Option may acquire such shares pursuant to an
exemption from registration under the Securities Act.  Any determination in this connection by the
Committee shall be final, binding, and conclusive.  The Company may, but shall in no event be obligated
to, register any securities covered hereby pursuant to the Securities Act.  The Company shall not be obligated to take
any affirmative action in order to cause the exercise of an Option or the
issuance of shares of Stock pursuant to the Plan to comply with any law or
regulation of any governmental authority. 
As to any jurisdiction that expressly imposes the requirement that an
Option shall not be exercisable until the shares of Stock covered by such
Option are registered or are exempt from registration, the exercise of such
Option (under circumstances in which the laws of such jurisdiction apply) shall
be deemed conditioned upon the effectiveness of such registration or the
availability of such an exemption.

 

15.2.       Rule 16b-3.

 

During any time when the Company has a class of equity
security registered under Section 12 of the Exchange Act, it is the intent
of the Company that Awards and the exercise of Options granted hereunder will
qualify for the exemption provided by Rule 16b-3 under the Exchange
Act.  To the extent that any provision of
the Plan or action by the Board or Committee does not comply with the
requirements of Rule 16b-3, it shall be deemed inoperative to the extent
permitted by law and deemed advisable by the Board, and shall not affect the
validity of the Plan.  In the event that
Rule 16b-3 is revised or replaced, the Board may exercise its discretion
to modify this Plan in any respect necessary to satisfy the requirements of, or
to take advantage of any features of, the revised exemption or its replacement.

 

16.          EFFECT OF CHANGES IN CAPITALIZATION

 

16.1.       Changes in Stock.

 

If the number of outstanding shares of Stock is increased or decreased
or the shares of Stock are changed into or exchanged for a different number or
kind of shares or other securities of the Company on account of any
recapitalization, reclassification, stock split, reverse split, combination of
shares, exchange of shares, stock dividend or other distribution payable in
capital stock, or other increase or decrease in such shares effected without
receipt of consideration by the Company occurring after the Effective Date, the
number and kinds of shares for which grants of Options and other Awards may be
made under the Plan shall be adjusted proportionately and accordingly by the
Company; provided that any such adjustment shall comply with Section 409A.  In addition, the number and kind of shares
for

 

18

 

which Awards are
outstanding shall be adjusted proportionately and accordingly so that the
proportionate interest of the Grantee immediately following such event shall,
to the extent practicable, be the same as immediately before such event.  Any such adjustment in outstanding Options or
SARs shall not change the aggregate Option Price or SAR Exercise Price payable
with respect to shares that are subject to the unexercised portion of an
outstanding Option or SAR, as applicable, but shall include a corresponding
proportionate adjustment in the Option Price or SAR Exercise Price per
share.  The conversion of any convertible
securities of the Company shall not be treated as an increase in shares
effected without receipt of consideration.  
Notwithstanding the foregoing, in the event of any distribution to the
Company’s stockholders of securities of any other entity or other assets
(including an extraordinary cash dividend but excluding a non-extraordinary
dividend payable in cash or in stock of the Company) without receipt of
consideration by the Company, the Company may, in such manner as the Company
deems appropriate, adjust (i) the number and kind of shares subject to
outstanding Awards and/or (ii) the exercise price of outstanding Options
and Stock Appreciation Rights to reflect such distribution.

 

16.2.       Definition of Change in Control.

 

“Change in Control” shall mean the occurrence of any of the following:

 

a.     Any ‘person’ (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) becomes the ‘beneficial
owner’ (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or
more of the total voting power represented by the Company’s then-outstanding
voting securities, provided, however, that a Change in Control
shall not be deemed to occur if an employee benefit plan (or a trust forming a
part thereof) maintained by the Company, and/or by Kevin Plank and/or his
immediate family members, directly or indirectly, become the beneficial owner,
of more than fifty percent (50%) of the then-outstanding voting securities of
the Company after such acquisition;

 

b.     A change in the composition of the Board
occurring within a two-year period, as a result of which fewer than a majority
of the directors are Incumbent Directors. 
‘Incumbent Directors’ shall mean directors who either (A) are directors
of the Company as of the Effective Date, or (B) are elected, or nominated
for election, to the Board with the affirmative votes of at least a majority of
the Incumbent Directors at the time of such election or nomination (but shall
not include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the
Company);

 

c.     The consummation of a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in (a) the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or being converted into voting securities of the
surviving entity) at least fifty percent (50%) of the total voting power
represented

 

19

 

by the voting securities
of the Company or such surviving entity outstanding immediately after such
merger or consolidation in substantially the same proportion as prior to such
merger or consolidation; or (b) the directors of the Company immediately
prior thereto continuing to represent at least fifty percent (50%) of the
directors of the Company or such surviving entity immediately after such merger
or consolidation; or

 

d.     The consummation of the sale or disposition
by the Company of all or substantially all of the Company’s assets.

 

Notwithstanding the
foregoing, the Company will not be deemed to have undergone a Change in Control
unless the Company is deemed to have undergone a change in control pursuant to
the definition in Section 409A.

 

16.3.       Effect of Change in Control

 

The Committee shall
determine the effect of a Change in Control upon Awards, and such effect shall
be set forth in the appropriate Award Agreement.  Unless otherwise determined by the Committee,
Awards that would become vested within the twelve months following the
effective date of such Change in Control shall be immediately vested on such
Change in Control.  The Committee may
provide in the Award Agreements at the time of grant, or any time thereafter
with the consent of the Grantee, the actions that will be taken upon the
occurrence of a Change in Control, including, but not limited to, accelerated
vesting, termination or assumption.  The
Committee may also provide in the Award Agreements at the time of grant, or any
time thereafter with the consent of the Grantee, for different provisions to
apply to an Award in place of those described in Sections
16.1 and 16.2.

 

16.4.       Reorganization Which Does Not Constitute
a Change in Control.

 

If the Company undergoes
in any reorganization, merger, or consolidation of the Company with one or more
other entities which does not constitute a Change in Control, any Option or SAR
theretofore granted pursuant to the Plan shall pertain to and apply to the
securities to which a holder of the number of shares of Stock subject to such
Option or SAR would have been entitled immediately following such
reorganization, merger, or consolidation, with a corresponding proportionate
adjustment of the Option Price or SAR Exercise Price per share so that the
aggregate Option Price or SAR Exercise Price thereafter shall be the same as
the aggregate Option Price or SAR Exercise Price of the shares remaining
subject to the Option or SAR immediately prior to such reorganization, merger,
or consolidation.  Subject to any
contrary language in an Award Agreement, any restrictions applicable to such
Award shall apply as well to any replacement shares received by the Grantee as
a result of the reorganization, merger or consolidation.

 

16.5.       Adjustments.

 

Adjustments under this Section 16
related to shares of Stock or securities of the Company shall be made by the
Committee, whose determination in that respect shall be

 

20

 

final, binding and conclusive. 
No fractional shares or other securities shall be issued pursuant to any
such adjustment, and any fractions resulting from any such adjustment shall be
eliminated in each case by rounding downward to the nearest whole share.

 

16.6.       No Limitations on Company.

 

The making of Awards
pursuant to the Plan shall not affect or limit in any way the right or power of
the Company to make adjustments, reclassifications, reorganizations, or changes
of its capital or business structure or to merge, consolidate, dissolve, or
liquidate, or to sell or transfer all or any part of its business or assets.

 

17.          GENERAL
PROVISIONS

 

17.1.       Disclaimer of Rights.

 

No provision in the Plan
or in any Award Agreement shall be construed to confer upon any individual the
right to remain in the employ or service of the Company or any Affiliate, or to
interfere in any way with any contractual or other right or authority of the
Company either to increase or decrease the compensation or other payments to
any individual at any time, or to terminate any employment or other
relationship between any individual and the Company.  In addition, notwithstanding anything
contained in the Plan to the contrary, unless otherwise stated in the
applicable Award Agreement, no Award granted under the Plan shall be affected
by any change of duties or position of the Grantee, so long as such Grantee
continues to be a Service Provider, if applicable.  The obligation of the Company to pay any
benefits pursuant to this Plan shall be interpreted as a contractual obligation
to pay only those amounts described herein, in the manner and under the
conditions prescribed herein.  The Plan
shall in no way be interpreted to require the Company to transfer any amounts
to a third party trustee or otherwise hold any amounts in trust or escrow for
payment to any Grantee or beneficiary under the terms of the Plan.

 

17.2.       Nonexclusivity of the Plan.

 

Neither the adoption of
the Plan nor the submission of the Plan to the stockholders of the Company for
approval shall be construed as creating any limitations upon the right and
authority of the Board to adopt such other incentive compensation arrangements
(which arrangements may be applicable either generally to a class or classes of
individuals or specifically to a particular individual or particular
individuals), including, without limitation, the granting of stock options as
the Board in its discretion determines desirable.

 

17.3.       Withholding Taxes.

 

The Company or an
Affiliate, as the case may be, shall have the right to deduct from payments of
any kind otherwise due to a Grantee any federal, state, or local taxes of any
kind required by law to be withheld (i) with respect to the vesting of or
other lapse of restrictions applicable to an Award, (ii) upon the issuance
of any shares of Stock upon the exercise of an Option, or (iii) pursuant
to an Award.  At the time of such
vesting, lapse, or exercise, the Grantee shall pay to the Company or the Affiliate,
as the case may be, any amount that the Company or the Affiliate may reasonably
determine to be necessary to satisfy such withholding obligation.  Subject to the prior approval of the Company
or the Affiliate, which

 

21

 

may be withheld by the Company or the Affiliate, as the case may be, in
its sole discretion, the Grantee may elect to satisfy such obligations, in
whole or in part, (i) by causing the Company or the Affiliate to withhold
shares of Stock otherwise issuable to the Grantee or (ii) by delivering to
the Company or the Affiliate shares of Stock already owned by the Grantee.  The shares of Stock so delivered or withheld
shall have an aggregate Fair Market Value equal to such withholding
obligations.  The Fair Market Value of
the shares of Stock used to satisfy such withholding obligation shall be
determined by the Company or the Affiliate as of the date that the amount of
tax to be withheld is to be determined. 
A Grantee who has made an election pursuant to this Section 17.3
may satisfy his or her withholding obligation only with shares of Stock that
are not subject to any repurchase, forfeiture, unfulfilled vesting, or other
similar requirements.

 

17.4.       Captions.

 

The use of captions in this Plan or any Award
Agreement is for the convenience of reference only and shall not affect the
meaning of any provision of the Plan or any Award Agreement.

 

17.5.       Other Provisions.

 

Each Award Agreement may
contain such other terms and conditions not inconsistent with the Plan as may
be determined by the Committee, in its sole discretion.

 

17.6.       Number and Gender.

 

With respect to words
used in this Plan, the singular form shall include the plural form, the
masculine gender shall include the feminine gender, etc., as the context
requires.

 

17.7.       Severability.

 

If any provision of the
Plan or any Award Agreement shall be determined to be illegal or unenforceable
by any court of law in any jurisdiction, the remaining provisions hereof and
thereof shall be severable and enforceable in accordance with their terms, and
all provisions shall remain enforceable in any other jurisdiction.

 

17.8.       Governing Law.

 

The validity and
construction of this Plan and the instruments evidencing the Award hereunder
shall be governed by the laws of the State of Maryland, other than any
conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of this Plan and the instruments evidencing the
Awards granted hereunder to the substantive laws of any other jurisdiction.

 

17.9.       Section 409A.

 

17.9.1.    Short-Term
Deferrals.

 

For each Award intended
to comply with the short-term deferral exception provided for under
Section 409A, the related Award Agreement shall provide that such Award
shall be paid out by the later of (i) the 15th day of the third
month following the Grantee’s first taxable year in which the Award is no
longer subject to a substantial risk of forfeiture or

 

22

 

(ii) the 15th day of the third month following the end
of the Company’s first taxable year in which the Award is no longer subject to
a substantial risk of forfeiture.

 

17.9.2.    Adjustments.

 

To the extent that the
Board determines that a Grantee would be subject to the additional 20% tax
imposed on certain deferred compensation arrangements pursuant to
Section 409A as a result of any provision of any Award, to the extent
permitted by Section 409A, such provision shall be deemed amended to the
minimum extent necessary to avoid application of such additional tax.  The Board shall determine the nature and
scope of such amendment.

 

*         
*           *

 

To record adoption of the
Plan by the Board as of
                 
       , 2005, and approval of the Plan by
the stockholders on                  
       , 2005, the Company has caused its
authorized officer to execute the Plan.

 

 

	
   

  	
  UNDER ARMOUR, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

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