Document:

Unassociated Document

    
      ROSS
MILLER

      Secretary
of State

      206
North Carson Street

      Carson
City, Nevada 89701-4299

      (775)
684 5708

      Website:
secretaryofstate.biz

       

       

      Certificate of
Designation 

       (PURSUANT
TO NRS 78.1955)

       

      
        
          
            	
                    USE
      BLACK INK ONLY-DO NOT HIGHLIGHT

                  	
                    ABOVE
      SPACE IS FOR OFFICE USE ONLY

                  
	
                    Certificate
      of Designation

                  
	
                    For
      Nevada Corporations

                  
	
                    (Pursuant
      to NRS 78.1955)

                  
	 
      
	
                    1.

                  	
                    Name
      of corporation:

                  
	 
      	PrismOne
      Group, Inc.
	 
      	 
      
	
                    2.

                  	
                    By
      resolution of the board of directors pursuant to a provision in the
      articles of incorporation this certificate establishes the following
      regarding the voting powers, designations, preferences, limitations,
      restrictions and relative rights of the following class or series of
      stock.

                  
	 	      
                    PRISMONE
      GROUP, INC.

                     

                    CERTIFICATE
      OF DESIGNATION OF

                    SERIES
      A PREFERRED STOCK

                     

                    The
      Undersigned, on behalf of PrismOne Group, Inc., a Nevada corporation (the
      “Corporation”), hereby certifies that the following resolutions were
      adopted by the Corporation’s board of directors effective as of June 16,
      2009, pursuant to the authority conferred upon the Board by the
      Corporation’s Articles of Incorporation and in accordance with the Nevada
      Revised Statutes:

                     

                    See attached Certificate of Designation of
      Series A Preferred Stock

                  
	 
      	
                     
      

                  
	
                    3.

                  	
                    Effective
      date of filing (optional):

                  
	 
      	 
      
	
                    4.

                  	
                    Signatures
      (required)

                  
	 
      	 
      
	 
      	
                    X
      /s/ Samir K.
      Burshan

                  	 
      	 
      
	 
      	
                    Signature

                  	 
      	 
      

          

        

      

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    PRISMONE
GROUP, INC.

    

    CERTIFICATE
OF DESIGNATION OF

    SERIES
A PREFERRED STOCK

    

    The
Undersigned, on behalf of PrismOne Group, Inc., a Nevada corporation (the
“Corporation”), hereby certifies that the following resolutions were adopted by
the Corporation’s board of directors effective as of June 16, 2009, pursuant to
the authority conferred upon the Board by the Corporation’s Articles of
Incorporation and in accordance with the Nevada Revised Statutes:

     

    RESOLVED:  that
pursuant to the authority granted to and vested in the Board in accordance with
the provisions of the Corporation’s Articles of Incorporation a series of
preferred stock of the Corporation is hereby created and designated with the
following relative rights, preferences, privileges, qualifications, limitations
and restrictions:

    

    1. Designation and
Number.  There shall be a series of preferred stock, par value
$0.001 per shares, designated as “Series A Preferred Stock,” and the number of
shares constituting such series shall be Two Hundred Seventy-Four Thousand
(274,000).

    

    2. Dividends. The
holders of shares of Series A Preferred Stock, in preference to the holders of
Common Stock, shall be entitled to receive when, as and if declared by the Board
of Directors out of funds legally available for the purpose, cumulative
dividends as provided in this Section 2.

    

    a. The
holders of the Series A Preferred Stock shall be entitled to receive cumulative
dividends, out of the funds legally available therefor, which shall accrue on
each share of Series A Preferred Stock (adjusted for any subdivisions,
combinations, consolidations or stock distributions or stock dividends with
respect to such shares) at the Dividend Rate.  Dividends shall be
payable annually to the holders of shares of Series A Preferred Stock at the
option of the Corporation in cash or Common Stock valued at the average closing
price of the stock for the twenty (20) trading days subsequent to Dividend Date.
The Dividend Rate is Six and a Half (6.5%) percent of the stated value (“Stated
Value”) per share of the shares of Series A Preferred Stock not to exceed one
percent (1%) of gross revenues as set forth in the Corporation’s financial
statements, but not less than two percent (2%) of the Stated Value of all then
outstanding shares of Series A Preferred Stock. Stated Value is defined as
$10.00 per outstanding share of Series A Preferred Stock.

    

    b. Dividends
shall be calculated and compounded annually in arrears on December 31 of each
year (each a “Dividend Date”) in respect of the prior twelve month period
prorated on a daily basis for partial periods.  Dividends shall
commence to accrue on each share of Series A Preferred Stock from the date of
issuance thereof whether or not declared by the Board of Directors, and whether
or not there are profits, surplus or other funds of the Corporation legally
available for the payment of dividends, and shall continue to accrue thereon
until the Series A Preference Amount is paid in full.

     

    
      
         

      

      
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    c. To the
extent the Corporation has funds legally available for the payment of dividends,
as determined in good faith by the Board of Directors, the Corporation shall,
within thirty (30) days following each calendar quarter, so long as shares of
Series A Preferred Stock are issued and outstanding, declare and pay dividends
equal to the accrued and unpaid dividends on such Series A Preferred
Stock.  Except as otherwise provided herein, if at any time the
Corporation pays less than the total amount of dividends then accrued with
respect to the Series A Preferred Stock, such payment shall be distributed
ratably among the holders of the Series A Preferred Stock based upon the
aggregate accrued but unpaid dividends on the Series A Preferred Stock held by
each holder.

    

    d. No
dividends shall be declared or paid on the Common Stock until all dividends
accrued or declared but unpaid on the Series A Preferred Stock shall have been
paid in full.

    

    3. Liquidation Preference on
Dissolution, Sale of the Corporation or Reorganization.

    

    a. In the
event of any liquidation, dissolution or winding up of the affairs of the
Corporation, either voluntarily or involuntarily (a “Dissolution”), each holder
of Series A Preferred Stock shall be entitled, after provision for the payment
of the Corporation’s debts and other liabilities, to be paid in cash in full,
before any distribution is made on any Common Stock, an amount of $10.00 per
share, in cash (the “Series A Liquidation Amount”).  The Corporation
shall, not later than 20 days prior to the earlier of the record date for the
taking of a vote of stockholders with respect to any Dissolution or the date set
for the consummation of a Dissolution, provide to the holders of the Series A
Preferred Stock such information concerning the terms of the Dissolution and the
value of the assets of the Corporation as may be reasonably requested by the
holders of shares of Series A Preferred Stock.  If, upon a
Dissolution, the net assets of the Corporation distributable among the holders
of all outstanding Series A Preferred Stock shall be insufficient to permit the
payment of the Series A Liquidation Amount in full, then the entire net assets
of the Corporation remaining after the provision for the payment of the
Corporation’s debts and other liabilities shall be distributed among the holders
of the Series A Preferred Stock ratably in proportion to the full preferential
amounts to which they would otherwise be respectively entitled on account of
their Series A Preferred Stock.  Upon any such Dissolution, after the
holders of Series A Preferred Stock shall have been paid in full the Series A
Liquidation Amount, the remaining net assets of the Corporation shall be
distributed to the other stockholders of the Corporation as their respective
interests may appear.

    

    b. Upon
payment in full of the Series A Liquidation Amount to which the holders of
shares of the shares of Series A Preferred Stock are entitled, the holders of
shares of this Series will not be entitled to any further participation in any
distribution of assets by the Corporation.

    

    c. Neither a
consolidation or merger of the Corporation with or into any other corporation,
nor a merger of any other corporation with or into the Corporation, nor a sale
or transfer of all or any part of the Corporation’s assets for cash or
securities or other property shall be considered a Dissolution of the
Corporation within the meaning of this Section 3.

    

    d. Any
Reorganization of the Corporation required by any court or administrative body
in order to comply with any provision of law shall be deemed to be a Dissolution
of the Corporation unless the preferences, qualifications, limitations,
restrictions and special or relative rights granted to or imposed upon the
holders of Series A Preferred Stock are not adversely affected by such
Reorganization.

     

    
      
         

      

      
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    4. Voting Rights of Series A
Preferred Stock. The shares of the Series A Preferred Stock shall have
fifty (50) votes per share all matters submitted to a vote of the common
stockholders of the Corporation.

    

    5. Conversion
Rights.

    

    a. Conversion
Procedure.  At any time and from time to time, any holder of
Series A Preferred Stock shall have the right, at its option, to convert all or
any portion of the shares of Series A Preferred Stock (including any fraction of
a share) held by such holder into a number of shares of fully paid and
nonassessable Common Stock at the rate of fifty (50) shares of Common Stock for
each full share of Series A Preferred Stock (the “Conversion Rate”), subject to
adjustment as explained in this Section 5.

    

    b. Subdivision
or Combination of Common Stock.  If the Corporation at any time
subdivides (by any stock split, stock dividend, recapitalization or otherwise)
its outstanding shares of Common Stock into a greater number of shares, the
Series A Conversion Rate in effect immediately prior to such subdivision shall
be proportionately reduced, and conversely, in the event the outstanding shares
of Common Stock shall be combined (by reverse stock split or otherwise) into a
smaller number of shares, the Series A Conversion Rate in effect immediately
prior to such combination shall be proportionately increased.

    

    c. Adjustment
for Certain Dividends and Distributions.  In the event the Corporation
at any time or from time to time after the Series A Original Issue Date shall
make or issue, or fix a record date for the determination of holders of Common
Stock entitled to receive, a dividend or other distribution payable on the
Common Stock in additional shares of Common Stock, then and in each such event
the Series A Conversion Rate in effect immediately before such event shall be
decreased as of the time of such issuance or, in the event such a record date
shall have been fixed, as of the close of business on such record date, by
multiplying the Series A Conversion Rate then in effect by a
fraction:

    

    i. the
numerator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date, and

    ii. the
denominator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or distribution;

    

    provided,
however, that if such record date shall have been fixed and such dividend is not
fully paid or if such distribution is not fully made on the date fixed therefor,
the Series A Conversion Rate shall be recomputed accordingly as of the close of
business on such record date and thereafter the Series A Conversion Rate shall
be adjusted pursuant to this subsection as of the time of actual payment of such
dividends or distributions; and provided further, however, that no such
adjustment shall be made if the holders of Series A Preferred Stock
simultaneously receive a dividend or other distribution of shares of Common
Stock in a number equal to the number of shares of Common Stock as they would
have received if all outstanding shares of Series A Preferred Stock had
been converted into Common Stock on the date of such event.

     

    
      
         

      

      
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    d. Adjustments
for Other Dividends and Distributions. In the event the Corporation at any time
or from time to time after the Series A Original Issue Date shall make or issue,
or fix a record date for the determination of holders of Common Stock of the
Corporation entitled to receive a dividend or other distribution payable in
securities of the Corporation (other than a distribution of shares of Common
Stock in respect of outstanding shares of Common Stock) or in other property,
then and in each such event the holders of Series A Preferred Stock shall
receive, simultaneously with the distribution to the holders of such Common
Stock, a dividend or other distribution of such securities or other property in
an amount equal to the amount of such securities or other property as they would
have received if all outstanding shares of Series A Preferred Stock had
been converted into Common Stock on the date of such event.

    

    e. Adjustment
for Merger or Reorganization, etc.  If there shall occur any
reorganization, recapitalization, consolidation or merger involving the
Corporation in which the Common Stock (but not the Series A Preferred Stock) is
converted into or exchanged for securities, cash or other property, then, as a
part of and a condition to such reorganization, recapitalization, consolidation
or merger, provision shall be made so that thereafter each share of Series A
Preferred Stock shall be convertible into the same kind and amount of
securities, cash or other property of the Corporation, or of the successor
corporation resulting from such reorganization, recapitalization, consolidation
or merger, which a holder of the number of shares of Common Stock of the
Corporation issuable upon conversion of one share of Series A Preferred Stock
immediately prior to such reorganization, recapitalization, consolidation or
merger would have been entitled to receive pursuant to such
transaction.

    

    f. Notices.

    

    i. Immediately
upon any adjustment of the Series A Conversion Rate, the Corporation shall give
written notice thereof to all holders of such Series A Preferred Stock, setting
forth in reasonable detail and certifying the calculation of such adjustment and
the facts upon which such adjustment is based.

    

    ii. The
Corporation shall give written notice to all holders of Series A Preferred Stock
at least five (5) days prior to the date on which the Corporation closes its
books or takes a record (a) with respect to any dividend or distribution upon
Common Stock, (b) with respect to any pro rata subscription offer to holders of
Common Stock, (c) with respect to any dissolution or liquidation or any merger,
consolidation, reorganization, recapitalization or similar event or (d) with
respect to any other right afforded to any holder of Common Stock.

     

    
      
         

      

      
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    6. Corporate
Redemption.

    

    a. Redemption.   The
shares of Series A Preferred Stock are redeemable at the option of the
Corporation in cash at $10.00 per share or in shares of Common Stock in the
ratio of fifty (50) shares of Common Stock for each share of Series A Preferred
Stock redeemed at the choice of the Corporation (the “Redemption Price”). No
redemption of Series A Preferred Stock shall be made in shares of Common Stock
unless the Common Stock is trading at an average of $20.00 per share for a
period of least twenty (20) consecutive days prior to the Redemption Notice. The
Corporation shall notify each holder of Series A Preferred Stock in writing (a
“Redemption Notice”) of the Corporation’s intent to exercise the rights afforded
by this Section 6(a), specifying the number of shares of Series A Preferred
Stock to be redeemed, the date not less than thirty (30) nor more than sixty
(60) days from the date of such notice on which such Series A Preferred Stock
shall be redeemed (the “Redemption Date”), and the place or places at which the
shares called for redemption shall, upon presentation and surrender of such
certificates representing such shares, be redeemed.  Subject to
Section 6(b), the Corporation shall redeem a pro rata amount from each holder of
Series A Preferred Stock (based on the total number of shares of Series A
Preferred Stock outstanding); provided however, if a holder of Series A
Preferred Stock desires more or less than such holder’s pro rata amount to be
redeemed, such holder shall notify the Corporation in writing at least ten (10)
days prior to the Redemption Date and the Corporation shall make efforts to
allocate the redemption in a manner consistent with the notices received from
the holder’s of the Series A Preferred Stock but subject to the full redemption
of the amount the Corporation has provided notice to redeem (such allocation
shall be made by the Board of Directors).

    

    b. Conversion
Rights.  Notwithstanding Section 6(a), upon receipt of the Redemption
Notice, each holder of Series A Preferred Stock may, in lieu of having such
holder’s applicable shares of Series A Preferred Stock being redeemed pursuant
to Section 6(a), convert all or any portion of the shares of Series A Preferred
Stock subject to Redemption by notifying the Corporation in writing at least ten
(10) days prior to the Redemption Date of its intent to convert such shares,
which conversion shall be subject to the provisions of Section 5 (and the
Conversion Date of such shares shall be the Redemption Date).

    

    c. Notices.  The
notices provided for in this Certificate of Designation shall be sent, if by or
on behalf of the Corporation, to the holders of the Series A Preferred Stock at
their respective addresses as shall then appear on the records of the
Corporation, or if by any holder of Series A Preferred Stock to the Corporation,
by certified first class mail, postage prepaid.

    

    d. Surrender
of Certificates; Payment. On or before the applicable Redemption Date, each
holder of shares of Series A Preferred Stock to be redeemed on such Redemption
Date, unless such holder has exercised his, her, or its right to convert such
shares as provided in Section 4 hereof, shall surrender the certificate or
certificates representing such shares to the Corporation (or, if such registered
holder alleges that such certificate has been lost, stolen or destroyed, a lost
certificate affidavit and agreement of such holder -- in form reasonably
acceptable to the Corporation -- to indemnify the Corporation against any claim
that may be made against the Corporation on account of the alleged loss, theft
or destruction of such certificate), at the place designated in the Redemption
Notice, and on the Redemption Date the Redemption Price for such shares shall be
paid to the order of the person whose name appears on such certificate or
certificates as the owner thereof, and each surrendered certificate shall be
canceled and retired. In the event less than all of the shares of Series A
Preferred Stock represented by a certificate are redeemed, a new certificate
representing the unredeemed shares of Series A Preferred Stock shall promptly be
issued to such holder.  In the event a holder fails to surrender such
holder’s certificate (and/or a lost certificate affidavit and agreement to
indemnify) for the redeemed Series A Preferred Stock on or before the applicable
Redemption Date, such stock shall be redeemed as of the Redemption Date
regardless, and the Redemption Price shall be paid to such holder upon surrender
of the applicable certificate (and/or lost certificate affidavit and agreement
to indemnify).

     

    
      
         

      

      
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    e. Status of
Reacquired Shares.  Any shares of Series A Preferred Stock redeemed
pursuant to this Section 6 or otherwise acquired by the Corporation in any
manner whatsoever shall be canceled and shall not under any circumstances be
reissued; and the Corporation may from time to time take such appropriate
corporate action as may be necessary to reduce accordingly the number of
authorized shares of Series A Preferred Stock.

    

    7. Exclusion of Other Rights.  Except
as may otherwise be required by law, the shares of Series A Preferred Stock
shall not have any preferences or relative, participating, optional or other
special rights, other than those specifically set forth in this Certificate of
Designation.

    

    8. Rank.  The
Series A Preferred Stock shall rank senior in right as to dividends and upon
liquidation, dissolution or winding up to all Common Stock whenever
issued.

    

    9. Identical Rights.  Each
share of Series A Preferred Stock shall have the same relative rights and
preferences as, and shall be identical in all respects with, all other shares of
the Series A Preferred Stock.

    

    10. Certificates.  So
long as any shares of the Series A Preferred Stock are outstanding, there shall
be set forth on the face or back of each stock certificate issued by the
Corporation a statement that the Corporation shall furnish without charge to
each stockholder who so requests, a full statement of the designation and
relative rights, preferences and limitations of each class of stock or series
thereof that the Corporation is authorized to issue and of the authority of the
Board of Directors to designate and fix the relative rights, preferences and
limitations of each series.

    

    11. Defeasance.  Any
of the rights, powers or preferences of the holders of Series A Preferred Stock
set forth herein may be waived or defeased by the affirmative consent or vote of
the Series A Majority Holders.

    

    12. Definitions.

     

    “Articles
of Incorporation” shall mean the Articles of Incorporation of the Corporation,
as amended from time to time.

     

    “Common
Stock” shall have the meaning set forth in the Articles of Incorporation of the
Corporation.

     

    
      
         

      

      
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     “Conversion
Rate” shall have the meaning set forth in Section 5(a) hereof.

     

    “Corporation”
shall have the meaning set forth in the preamble hereof.

     

     “Dissolution”
shall have the meaning set forth in Section 3(a) hereof.

     

    “Dividend
Date” shall have the meaning set forth in Section 2(b) hereof.

     

     “Person”
shall mean an individual, partnership, corporation, limited liability company,
association, trust, joint venture, unincorporated organization and any
government, governmental department or agency or political subdivision
thereof.

     

    “Preferred
Stock” shall have the meaning set forth in the Articles of Incorporation of the
Corporation.

     

    “Redemption”
shall have the meaning set forth in Section 6(a).

     

    “Redemption
Date” shall have the meaning set forth in Section 6(a).

     

    “Redemption
Notice” shall have the meaning set forth in Section 6(a).

     

    “Redemption
Price” shall have the meaning set forth in Section 6(a).

     

    “Sale of
the Corporation” shall mean a single transaction or a series of transactions
pursuant to which an unaffiliated Person or Persons acquire (i) Capital Stock of
the Corporation possessing the voting power to elect a majority of the
Corporation’s board of directors or more than fifty percent (50%) of the voting
power of the Corporation (whether by merger, consolidation or sale or transfer
of the Corporation’s Capital Stock), provided, however, (a) that an initial
public offering that results in an acquisition of voting power shall not be a
Sale of the Corporation and (b) a merger shall not be a Sale of the Corporation
as long as the stockholders of the Corporation own a majority of the Common
Stock of the surviving entity immediately following the merger); or (ii) all or
a substantial portion of the Corporation’s assets determined on a consolidated
basis.

     

     “Series
A Liquidation Amount” shall have the meaning set forth in Section 3(a)
hereof.

     

     “Series
A Preferred Stock” shall have the meaning set forth in Section 1
hereof.ex-10_1.htm

    
      Exhibit
10.1

       

      FIRST
AMENDMENT TO CREDIT AGREEMENT

       

      THIS
FIRST AMENDMENT TO CREDIT AGREEMENT is made as of June 19, 2009 (the “First Amendment
to Credit Agreement,” or this “Amendment”),
among SPORT SUPPLY
GROUP, INC., a
Delaware corporation (“Borrower”),
the lenders party hereto (the “Lenders”) and BANK OF AMERICA, N.A., as
administrative agent for the Lenders (“Administrative
Agent”).

       

      R E C I T A L S

      

      A.           Borrower,
Administrative Agent and the Lenders are parties to that certain Credit
Agreement dated as of February 9, 2009, as modified pursuant to the terms
of that certain letter dated as of April 1, 2009 from Administrative Agent to
Borrower (the “Original Credit
Agreement”).

       

      B.           The
parties desire to amend the Original Credit Agreement as hereinafter
provided.

       

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

       

      1.           Same
Terms.  All terms used herein which are defined in the Original
Credit Agreement shall have the same meanings when used herein, unless the
context hereof otherwise requires or provides.  In addition, all
references in the Loan Documents to the “Agreement” shall
mean the Original Credit Agreement, as amended by this First Amendment to Credit
Agreement, as the same shall hereafter be amended from time to
time.  In addition, the following term has the meaning set forth
below:

       

      “Effective
Date” means June 19, 2009.

       

      2.           Amendments
to Original Credit Agreement.  On the Effective Date, the
Original Credit Agreement shall be amended as follows:

       

      (a)           The
definition of “Permitted
Acquisition” shall be amended and restated as follows:

       

      “Permitted
Acquisition” means, (a) any Acquisition by a Loan Party so long as the
Dollar amount of such Acquisition, together with the aggregate Dollar amount of
all other Acquisitions (including Acquisitions permitted by Section
7.02(m)) made by any Loan Party after the Closing Date, does not exceed
$2,000,000, and (b)
any Acquisition by a Loan Party that does not meet the requirements in part (a)
above, so long as it satisfies each of the following requirements:

       

      (i)           if
such Acquisition is an Acquisition of Equity Interests of a Person, such
newly-created or acquired Subsidiary shall comply with the requirements of Section
6.12;

       

      (ii)           such
Acquisition shall not include or result in any contingent liabilities that could
reasonably be expected to have a Material Adverse Effect;

       

      (iii)           the
target of such Acquisition shall not have had an operating loss for the period
of 12 consecutive months ending on the date of the acquisition

       

      
        
          
          

        

        
          
            FIRST
AMENDMENT TO CREDIT AGREEMENT– Page
1 

          

          
            

          

        

        
          
          

        

      

       

      (the
calculation of such operation gain or loss in each case shall include such
adjustments as may be reasonable to reflect items not reflective of the target
or assets to be acquired, and non-recurring items, which calculations shall be
in form and substance reasonably acceptable to the Administrative
Agent);

       

      (iv)           immediately
after giving effect to such Acquisition, the Consolidated Leverage Ratio would
not exceed 2.50 to 1.0;

       

      (v)           (A)
immediately before and immediately after giving pro forma effect to any such
Acquisition, no Event of Default shall have occurred and be continuing and (B)
immediately after giving effect to such Acquisition, the Companies shall be in
pro forma compliance with all of the Financial Covenants, such compliance to be
determined on the basis of the financial information most recently delivered to
the Administrative Agent and the Lenders pursuant to Section 6.01 as
though such Acquisition had been consummated as of the first day of the fiscal
period covered thereby;

       

      (vi)           the
Senior Convertible Subordinated Notes shall have been repaid in full prior to
such Acquisition; and

       

      (vii)           the
Borrower shall have delivered to the Administrative Agent and each Lender such
other information concerning the Acquisition as the Administrative Agent shall
reasonably request.

       

      (b)           Section
7.02(m) shall be amended and restated as follows:

       

      “(m)           other
Investments (other than Acquisitions) not exceeding $500,000 in the aggregate in
any fiscal year of the Borrower.”

       

      3.           Certain
Representations.  Borrower represents and warrants that, as of
the Effective Date:  (a) each Loan Party has full power and
authority to execute this Amendment and this Amendment executed by each Loan
Party constitutes the legal, valid and binding obligation of such Loan Party
enforceable in accordance with its terms, except as enforceability may be
limited by general principles of equity and applicable bankruptcy, insolvency,
reorganization, moratorium, and other similar laws affecting the enforcement of
creditors’ rights generally; and (b) no authorization, approval, consent or
other action by, notice to, or filing with, any governmental authority or other
person is required for the execution, delivery and performance by each Loan
Party thereof except for (i) filings necessary to perfect and maintain the
perfection of the Liens granted under the Security Agreements, (ii) the
approvals, consents, and authorizations which have been duly obtained, taken,
given, or made and are in full force and effect and (iii) those approvals,
consents, exemptions, authorizations or other actions, notices or filings, the
failure of which to obtain or make could not reasonably be expected to have a
Material Adverse Effect.  In addition, Borrower represents that all
representations and warranties contained in the Original Credit Agreement are
true and correct in all material respects on and as of the Effective Date except
to the extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct as of such earlier
date, and except that for purposes of Section 4.02 of the
Original Credit Agreement, the representations and warranties contained in
subsections (a) and (b) of Section 5.05 of the
Original Credit Agreement shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the
Original Credit Agreement.

       

      
        
          
          

        

        
          
            FIRST
AMENDMENT TO CREDIT AGREEMENT– Page
2

          

          
            

          

        

        
          
          

        

      

       

      4.           Limitation
on Agreements.  The modifications set forth herein are limited
precisely as written and shall not be deemed (a) to be a consent under or a
waiver of or an amendment to any other term or condition in the Original Credit
Agreement or any of the Loan Documents, or (b) to prejudice any right or
rights which Lender now has or may have in the future under or in connection
with the Original

       

      Credit
Agreement and the Loan Documents, each as amended hereby, or any of the other
documents referred to herein or therein. This Amendment shall constitute a Loan
Document for all purposes.

       

      5.           Counterparts.  This
Amendment may be executed in any number of counterparts, each of which when
executed and delivered shall be deemed an original, but all of which constitute
one instrument.  In making proof of this Amendment, it shall not be
necessary to produce or account for more than one counterpart thereof signed by
each of the parties hereto.

       

      6.           Incorporation
of Certain Provisions by Reference.  The provisions of Section
10.14 of the Original Credit Agreement captioned “Governing Law,” and the
provisions of Section 10.15 of the Original Credit Agreement captioned
“Dispute Resolution Provision” are incorporated herein by reference for all
purposes.

       

      7.           Entirety,
Etc.  This instrument and all of the other Loan Documents
embody the entire agreement between the parties.  THIS AMENDMENT AND
ALL OF THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

       

      [Remainder
of Page Intentionally Blank; Signatures Begin on Next Page]

       

      
        
          
          

        

        
          
            FIRST
AMENDMENT TO CREDIT AGREEMENT– Page
3

          

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the parties hereto have executed this Amendment to be effective
as of the Effective Date.

       

      
        
          
            
              
                
                  	 	BANK OF AMERICA,
      N.A.,
as Administrative Agent, Swing Line Lender
and L/C
      Issuer	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	  
    	
                          By:
      

                        	/s/
      Charles Dale 	 
	 	 	Charles Dale	 
	 	 	Senior
      Vice President	 
	 	 	 	 

                

              

            

          

        

      

       

      
        
          
            
              	 	BANK OF AMERICA,
      N.A.,
as a Lender	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	  
    	
                      By:
      

                    	 /s/
      Charles Dale	 
	 	 	Charles
      Dale 	 
	 	 	Senior
      Vice President	 
	 	 	 	 

            

          

        

      

       

      
        
          
          

        

        
          
            FIRST
AMENDMENT TO CREDIT AGREEMENT

          

          
            

          

        

        
          
          

        

      

       

      
        	 	SPORT SUPPLY GROUP,
      INC.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	  
    	
                By:
      

              	 /s/
      John E. Pitts	 
	 	 	John
      E. Pitts 	 
	 	 	Chief
      Financial Officer 	 
	 	 	 	 

      

       

      
        
          
          

        

        
          
            FIRST
AMENDMENT TO CREDIT AGREEMENT

          

          
            

          

        

        
          
          

        

      

       

      The terms
of this Amendment are acknowledged and agreed to by the following Guarantors,
and such Guarantors agree that the “Guaranteed Debt” (as defined in the
Guaranty) shall include the Obligations as amended by this
Amendment.

       

      
         

        
          
            
              
                
                  
                    
                      	 	GUARANTORS:	 
	 	 	 
	 	KESSLERS TEAM SPORTS,
      INC.,
a Delaware corporation	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	  
    	
                              By:
      

                            	 /s/ John E.
      Pitts	 
	 	 	John
      E. Pitts	 
	 	 	Chief
      Financial Officer	 
	 	 	 	 

                    

                  

                

              

            

          

        

         

        
          
            
              
                	 	DIXIE SPORTING GOODS CO.,
      INC.,
a Virginia corporation	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	  
    	
                        By:
      

                      	 /s/
      John E. Pitts	 
	 	 	John
      E. Pitts 	 
	 	 	Chief
      Financial Officer 	 
	 	 	 	 

              

            

          

        

         

      

       

      
        FIRST
AMENDMENT TO CREDIT AGREEMENT

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