Document:

Exhibit 10.05

 

Execution Copy

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

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

 

RECITALS

 

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

 

AGREEMENT

 

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

 

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

 

2.                                      Duties.  During the Term, the Executive shall serve as
Vice President of Sales (hereinafter, “Vice Sales”) of the Company and shall
report to, and have those duties, responsibilities, and authority assigned him
from time to time by, the Chief Executive Officer of the Company (hereinafter,
the “CEO”).  The Executive shall have the
powers and authority consistent with such responsibilities, duties, and
authority.  The Executive shall devote
substantially all his working time, attention, knowledge, and skills
faithfully, diligently, and to the best of his ability, in furtherance of the
business and activities of the Company. 
During the Term, the Executive shall refrain from engaging in any
activity which is or may be contrary to the welfare, interests, or benefits of
the Company and from engaging in any activity which is or may be competitive
with the

 

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activities of the Company.  Nothing in this Section shall preclude
the Executive from engaging in charitable, professional, and community
activities, in each case as long as such activities do not interfere, conflict,
or give the appearance of conflicting in any way with the Executive’s
performance under this Agreement.  The
Executive agrees to abide by the rules, regulations, instructions, personnel
practices and policies of the Company and any changes therein that may be
adopted from time to time by the Company, and the Executive acknowledges
receipt of copies of all such rules, regulations, instructions, personnel
practices and policies of the Company committed to writing as of the date of
this Agreement.

 

3.                                      Base Salary.  In consideration for the services to be
rendered by the Executive hereunder and for all rights and covenants granted
herein, the Company shall pay to the Executive a gross salary at a rate of
$185,000.00 per year (hereinafter, the “Base Salary”).  This Base Salary shall be paid in equal
monthly or bi-weekly installments, in accordance with the customary payroll
practices of the Company and subject to such deductions and withholdings as are
required by law and applicable regulations. 
This Base Salary may be adjusted from time to time at the discretion of
the CEO or the Compensation Committee of the Board of Directors of the Company
(the “Compensation Committee”) or the Board of Directors of the Company (the “Board”)
if there is no Compensation Committee.

 

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

 

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

 

6.                                      Employee Benefits.   The Executive shall be entitled to
participate in or receive benefits under any employee benefit plan, arrangement
or perquisite generally made available by the Company from time to time to all
of its executives and key

 

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management employees, subject to and on a
basis consistent with the terms, conditions and overall administration of such
plans, arrangements and perquisites.  Any
payments or benefits payable to the Executive hereunder in respect of any year
during which the Executive is employed by the Company for less than the entire
such year shall, unless otherwise provided in the applicable plan or arrangement
be prorated in accordance with the number of days in such year during which he
is so employed.  Nothing contained in
this Agreement shall prevent the Company from changing insurance carriers or
from effecting modifications in insurance coverage for the Executive.  The Executive shall also receive an
automobile allowance of $1,000.00 per month.

 

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

 

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

 

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

 

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

 

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

 

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(c) at
any time during the Term, the Executive may terminate his employment with the
Company for “Good Reason” upon written notice to the Company, which termination
shall be effective as provided in this Section 9(c).  For the purposes of this Agreement, “Good
Reason” shall mean (i) the Company’s failure to perform or observe any of
the material terms or provisions of this Agreement and the continued failure of
the Company to cure such default within thirty (30) days after written demand
for performance has been given to the Company by the Executive, which demand
shall describe specifically the nature of such alleged failure to perform or
observe such material terms or provisions, (ii) a material reduction in
the scope of the Executive’s duties, authority, responsibilities or title as in
effect immediately prior to such reduction; (iii) the Company’s assignment
to the Executive of duties which are materially inconsistent with the Executive’s
position as Vice President of Sales; (iv) a material reduction by the
Company in the Executive’s Base Salary or in any other benefits made available
to other senior executives of the Company; or (v) the Executive’s
relocation to a facility or a location more than fifty (50) miles from the then
present location without the Executive’s prior written consent, and in each
case the failure of the Company to cure the same within thirty (30) days after
receipt of written notice thereof from the Executive specifying such Good
Reason and demanding cure thereof;

 

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

 

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

 

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

 

10.                               Effect of Termination.

 

(a)  Termination due
to expiration or
non-extension of the Term by the Company pursuant to Section 1.  Upon termination of the Executive’s
employment due to expiration or non-extension of the Term as described in Section 9(a) of
this Agreement by the Company, the Company shall continue to pay the Executive’s
Base Salary through the twelfth (12th) full month following the
effective date of the termination and pay the Executive’s COBRA premiums, on
the same terms as existed before termination, if the Executive elects and
continues COBRA coverage in connection with the health benefits plan that
covered him as an employee, through the twelfth (12th) full month
following the

 

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

 

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

 

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

 

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agreement containing a general release of
claims against the Company, in a form acceptable to the Company.

 

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

 

11.                               Restrictive Covenants.

 

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

 

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

 

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

 

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

 

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

 

(c)                                  Non-Solicitation and Non-Interference with Customers and
Other Business Relationships.  The Executive hereby covenants and agrees
that at no time during the Executive’s employment with the Company and for a
period of one (1) year immediately following termination of the Executive’s
employment with the Company, whether voluntary or involuntary, shall the
Executive (i) solicit (other than on behalf of the Company) business or
contracts for any products or services of the type provided, developed or under
development by the Company during the Executive’s employment by

 

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the Company, from or with (x) any person
or entity which was a customer of the Company for such products or services as
of, or within one year prior to the Executive’s date of termination of
employment with the Company, or (y) any prospective customer which the Company
had solicited as of, or within one year prior to the Executive’s termination of
employment with the Company or (ii) directly or indirectly contract with
any such customer or prospective customer for any product or service of the
type provided, developed or which was under development by the Company during
the Executive’s employment with the Company. 
Further, the Executive shall not during the Executive’s employment with
the Company and for a period of one (1) year immediately following
termination of the Executive’s employment with the Company, whether voluntary
or involuntary, knowingly interfere or attempt to interfere with any
transaction, agreement or business relationship in which the Company was
involved during the Executive’s employment with the Company.

 

(d)                                 Non-solicitation or hiring of employees.  The Executive hereby covenants and agrees that at no time during
the Executive’s employment with the Company and for a period of one (1) year
immediately following termination of the Executive’s employment with the
Company, whether voluntary or involuntary, will the Executive act in any way
with the purpose or effect of (i) hiring anyone who has been an employee
of the Company, its divisions or subsidiaries within the preceding six (6) months
or (ii) soliciting, recruiting or encouraging, directly or indirectly, any
of the Company’s employees to leave the employ of the Company, its divisions or
its subsidiaries.

 

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

 

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Executive of rights to intellectual
properties shall remain effective for such periods of time as applicable law
may permit with respect to the ownership of any such intellectual property or
materials.

 

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

 

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

 

(a)                                  If
the termination occurs within twelve (12) months after a Change of Control,
Company shall continue to pay the Executive’s Base Salary through the
twenty-fourth (24th) full month following the effective date of
termination.

 

(b)                                 To
the extent the Executive remains eligible, for twelve (12) months after
termination of his employment, the Company shall continue to allow the
Executive to remain covered by all applicable noncash benefit plans of the
Company, except for the retirement plans or retirement programs in which the
Executive participates or any successor plans or programs in effect on the date
of a Change in Control; provided,

 

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however, that if during such time the
Executive should enter into the employment of a competitor of the Company,
participation in such noncash benefit plans would cease.  In the event the Executive is ineligible
under the terms of such plans to continue to be so covered, the Company shall
use its best efforts to provide substantially equivalent coverage through other
sources.  If the Company is unable to
provide substantially equivalent coverage through other sources, then the
Company shall pay in cash to the Executive the amount the Company would have
had to expend to provide such coverage assuming standard risk.

 

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

 

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

 

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

 

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

 

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

 

15.                               Gross
Up Payments                                      If
the payment provided under Section 14 of this Agreement (the “Contract
Payment”) is subject to the tax (the “Excise Tax”) imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (“Code”), the Company shall
pay the Executive on or before the fifth day following the date of termination,
an additional amount (the “Gross-Up Payment”) such that the net amount retained
by the Executive, after deduction of any Excise Tax on the Contract Payment and
such other Total

 

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Payments (as defined below) and any federal and state
and local income tax and Excise Tax upon the payment provided for by this
Section, shall be equal to the Contract Payment and such other Total
Payments.  For purposes of determining
whether any of the payments will be subject to the Excise Tax and the amount of
such Excise Tax, (i) any other payments or benefits received or to be
received by the Executive in connection with a Change of Control of the Company
or the Executive’s termination of employment, whether payable pursuant to the
terms of this Agreement or any other plan, arrangement or agreement with the
Company, its successors, any person whose actions result in a Change of Control
of the Company or any corporation affiliated (or which, as a result of the
completion of a transaction causing a Change of Control, will become
affiliated) with the Company within the meaning of Section 1504 of the
Code (together with the Contract Payment, the “Total Payments”) shall be
treated as “parachute payments” within the meaning of Section 280G(b)(2) of
the Code, and all “excess parachute payments” within the meaning of Section 280G(b)(1) shall
be treated as subject to the Excise Tax, unless in the opinion of tax counsel
selected by the Company and acceptable to the Executive, whose acceptance shall
not be unreasonably withheld, the Total Payments (in whole or in part) do not
constitute parachute payments, or such excess parachute payments (in whole or
in part) represent reasonable compensation for services actually rendered
within the meaning of Section 280G(b)(4) of the Code either in their
entirety or in excess of the base amount within the meaning of Section 280G(b)(3) of
the Code, or are otherwise not subject to the Excise Tax, (ii) the amount
of the Total Payments that shall be treated as subject to the Excise Tax shall
be equal to the lesser of (A) the total amount of the Total Payments or (B) the
amount of excess parachute payments within the meaning of Section 280G(b)(1) (after
applying clause (i), above), and (iii) the value of any non-cash benefits
or any deferred payment or benefit shall be determined by the Company’s
independent auditors in accordance with the principles of Sections 280G(b)(3) and
(4) of the Code.  For purposes of
determining the amount of the Gross-Up Payment, the Executive shall be deemed
to pay federal income taxes at the highest marginal rate of federal income
taxation in the calendar year in which the Gross-Up Payment is to be made and
state and local income taxes at the highest marginal rate of taxation in the
state and locality of the Executive’s residence on the date of termination, net
of the maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes. 
In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder at the time of termination of the
Executive’s employment, the Executive shall repay to the Company at the time
that the amount of such reduction in Excise Tax is finally determined the
portion of the Gross-Up Payment attributable to such reduction (plus the
portion of the Gross-Up Payment attributable to the Excise Tax and federal and
state and local income tax imposed on the Gross-Up Payment being repaid by the
Executive if such repayment results in a reduction in Excise Tax and/or a
federal state and local income tax deduction) plus interest on the amount of
such repayment at the rate provided in Section 1274(d) of the
Code.  In the event that the Excise Tax
is determined to exceed the amount taken into account hereunder at the time of
the termination of the Executive’s employment (including by reason of any
payment the existence or amount of which cannot be determined at the time of
the Gross-Up Payment), the Company shall make an additional Gross-Up Payment

 

11

 

in respect of such excess (plus any interest payable
with respect to such excess) at the time that the amount of such excess is
finally determined.

 

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

 

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

 

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

 

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

 

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

 

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

 

If
to the Executive:

 

12

 

	
  If to the Company:

  	
   

  	
  KP Sports, Inc.

  
	
   

  	
   

  	
  1020 Hull Street, 3rd Floor

  
	
   

  	
   

  	
  Baltimore, Maryland 21230

  

 

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

 

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

 

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

 

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

 

13

 

AWARD OR
JUDGMENT OBTAINED IN ACCORDANCE WITH THE PROVISIONS HEREOF.

 

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

 

25.                               Entire Agreement.  This Agreement constitutes the entire
agreement of the Parties and supersedes any and all previous agreements between
the Parties relating to the subject matter hereof, including the Employment
Agreement between the Company and the Executive dated April 1, 2001 (the “Prior
Agreement”).  Upon the execution by the
Parties of this Agreement, the Prior Agreement immediately shall be terminated
and of no further force and effect.  This
Agreement may not be modified orally, but only by an agreement in writing
supplied by the party against whom enforcement of any waiver, change, modification,
extension, or discharge is sought.

 

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

 

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

 

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

 

14

 

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

 

[Remainder
of Page Intentionally Left Blank]

 

15

 

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

 

	
  COMPANY:

  	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
  KP SPORTS, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Kevin A. Plank

  	
   

  	
   

  	
  /s/ Ryan Wood

  	
   

  
	
   

  	
   

  	
  Ryan Wood

  
	
  Name:

  	
  Kevin A. Plank

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  September 30, 2003

  	
   

  
	
  Title:

  	
  President and Chief Executive

  Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  September 30, 2003

  	
   

  	
   

  	
   

  
									

 

16Exhibit 10.06

 

BUY-SELL AGREEMENT

 

THIS BUY-SELL AGREEMENT (hereinafter referred to as
the “Agreement”) is made this 30th day of September, 2003, by and
between Kevin A. Plank (the “Employee”) and KP SPORTS, INC., a Maryland
corporation (the “Company”).

 

Explanatory Statement

 

A.                                   The
Employee is a full time employee of the Company and has rendered valuable
service to the Company.

 

B.                                     The
Employee is a stockholder of the Company and is the record owner of 5,400,00
shares of the Company’s Common Stock, par value $.001 per share (the “Common
Stock”).

 

C.                                     The
parties hereto believe it is desirable and in their mutual best interests to
control the ownership of the Common Stock of the Company and thereby to help
facilitate the continuous, harmonious and effective management of the affairs,
policies, and operations of the Company.

 

D.                                    It
is the intention of the parties to provide for repurchases by the Company of
shares of Common Stock held by the Employee upon the death of the Employee.

 

E.                                      Concurrently
herewith, the Company, the Employee, the other existing stockholders of the
Company, and certain investors in the Company are entering into a Stockholders’
Agreement, dated the date hereof (the “Stockholders’ Agreement”), which
Stockholders’ Agreement provides, among other things, for certain restrictions
relating to the transfer of the Common Stock.

 

NOW, THEREFORE, in consideration of the Explanatory
Statement and the mutual covenants, promises and agreements of the parties
hereto, the parties do hereby covenant, promise and agree as follows:

 

1.                                       Insurance.

 

Subject to the provisions of
this Section 1, the Company shall be obligated to purchase and take out
and maintain in force so long as the Employee is a stockholder of the Company,
such policy or policies of insurance on the life of the Employee with an
aggregate death benefit of $16,000,000.00 (collectively the

 

1

 

“Policies”).  The proceeds of the Policies (the “Proceeds”)
shall be held in trust and used by the Company to purchase shares of Common
Stock from the Employee’s Estate (as hereinafter defined), which are offered to
the Company as a result of the death of the Employee pursuant to Section 3
hereof (the “Employee Offered Stock”). 
Notwithstanding the foregoing, if in the reasonable judgment of the
Company, the Employee is, or becomes, for health or other reasons, uninsurable
or cannot be insured upon economically reasonable terms, the Company shall have
no obligation to purchase or take out or to maintain in force life insurance on
the Employee.  The Company shall be the
sole owner and beneficiary of any Policy purchased or taken out hereunder.  Proceeds which are held by the Company shall
not be deemed an asset of the Company or otherwise considered by any appraiser
or appraisers or by any other person for the purpose of determining the
purchase price for the Employee Offered Stock pursuant to Section 4
hereof.  The Company shall pay premiums
on all Policies as they become due and may, in its discretion, apply any
dividends declared and paid on such policies to the payment of such premiums.

 

2.                                       Purchase and Sale.

 

(a)                                  No Common Stock shall be Transferred (as such
term is defined in the Stockholders’ Agreement) by the Employee to a Permitted
Transferee (as such term is defined in the Stockholders’ Agreement), other than
a repurchase of the Common Stock by the Company, unless, as a condition of
receiving title to such Common Stock:

 

(i)                                     the Common Stock so transferred shall remain
subject to all the provisions of this Agreement;

 

(ii)                                  the Permitted Transferee agrees to become a
party to this Agreement and to be bound by all of the provisions and terms or
conditions hereof; and

 

(iii)                               such person or entity executes such other
documents as are contemplated hereby, including a counterpart of this
Agreement, which shall be deemed a supplement to this Agreement setting forth
the foregoing agreements and to which all Common Stock then and thereafter
acquired by such person or entity shall be subject.

 

(b)                                 Any purported Transfer of the Common Stock
other than in accordance with this Agreement by the Employee shall be null and
void, and the Company shall refuse to recognize any such Transfer and shall not
reflect on its records any change in record ownership of the Common Stock
pursuant to any such Transfer.

 

(c)                                  For purposes hereof, the Employee and each of
his Permitted Transferees shall be referred to herein as an “Employee
Stockholder.”

 

2

 

(d)                                 Each Employee Stockholder agrees that during
the term of this Agreement, he or it shall not Transfer any or all of the
shares of Common Stock of the Company owned of record or beneficially by him or
it except pursuant to the Stockholders’ Agreement.

 

3.                                       Purchase Upon Death.

 

Upon the death of the
Employee, if the Policies are then in effect, the Company shall be obligated to
use the Proceeds of the Policies to purchase shares of Common Stock of the
Company held by the Employee’s estate or any Employee Stockholder
(collectively, the “Estate”), and the Estate shall be obligated to sell said
shares.  Purchases pursuant to this Section 3
shall be made from the persons or entities constituting the Estate as the
Estate shall determine.  If the Estate
cannot come to a determination within five (5) business days of the
receipt of the Proceeds by the Company, the shares will be purchased on a pro
rata basis from all of the persons or entities constituting the Estate.  The price per share for purchases pursuant to
this Section 3 shall be the higher of the amount of the Book Value (as
defined in Section 4(a)) or the Market Value (as defined in Section 4(b))
and shall be paid in cash on the Closing Date (as defined in Section 5).  If for any reason the Company does not expend
all of the Proceeds to purchase shares, any such remaining or unused Proceeds
shall be retained by the Company.  The
number of shares of Common Stock to be purchased from the Estate shall equal
the amount of the Proceeds divided by the price per share as determined in
accordance with this Section 3.

 

4.                                       Book Value and Market Value.

 

(a)                                  “Book Value” as used in this Agreement shall
be the value, computed on the same accounting basis as the Company’s regular
method of accounting, of the net aggregate stockholder’s equity of the Company
divided by the total number of shares of the Common Stock of the Company
outstanding on a fully-diluted basis on the date on which said Book Value is
computed and determined (as hereinafter provided); provided, however, that
anything contained in this Section 4(a) to the contrary
notwithstanding, the computation of such Book Value shall be subject to the
following provisions:

 

(i)                                     in no event shall the determination of the
Book Value include any of the Proceeds;

 

(ii)                                  no additional allowance of any kind shall be
made for the goodwill, tradenames or any other intangible asset or assets
(hereinafter referred to as the “Intangible Assets”) of the Company other
than that aggregate dollar amount for any of such Intangible Assets appearing on the most recent balance sheet of
the Company prior to those dates set forth below for determining Book Value;

 

3

 

(iii)                               the Book Value shall be computed and
determined as of the end of the last month immediately preceding the month in
which the death of the Employee occurred for purposes of Section 4 of this
Agreement; and

 

(iv)                              the Book Value shall be determined in
accordance with generally accepted accounting principles, applied in a
consistent manner with prior periods, by the independent accountant at that
time examining the books and accounts of the Company or, if there be none, then
by the last independent accountant who had performed such services for the
Company, and a determination by such independent accountant shall, for purposes
of this Agreement, be final, conclusive and binding upon each of the parties
hereto.

 

(b)                                 “Market Value” as used in this Agreement with
respect to the value of shares of the Company’s Common Stock, shall be the per
share dollar value of the Company’s Common Stock last determined by a
resolution of the Board of Directors of the Company, acting in good faith, as
recorded in the minute book of the Company. 
In the event that the Board of Directors has not determined a per share
dollar value for the Corporation’s Common Stock within eighteen (18) months of
its last determination of the per share dollar value for the Corporation’ s
Common Stock, then the “Market Value” with respect to the value of shares of
the Company’s Common Stock, shall be the fair market value as determined by an
accountant who is employed by or is a partner or principal in a nationally or
regionally recognized accounting firm who is knowledgeable and experienced in
evaluating and determining the fair market value of shares of stock or other
equity interests in companies that are generally similar to the Company.  The “Market Value” as determined in
accordance with this Section 4(b) shall, for purposes of this
Agreement, be final, conclusive and binding upon each of the parties hereto.

 

5.                                       Delivery of Certificates.

 

Closing on the sale of any
shares of Common Stock sold pursuant to this Agreement, unless otherwise agreed to in
writing by the Company and the Employee Stockholder, shall be held at the principal place of
business of the Company five (5) business days from the later of (x) the
date the Proceeds are received by the Company and (y) the receipt by the
Company of written instructions from the Estate as to whom the Proceeds should
be paid, which instructions the Company is entitled to rely on (the “Closing
Date”).  On the Closing Date, upon
payment of the purchase price for the purchase of the Common Stock hereunder,
the stock certificate or certificates representing the Common Stock shall be
delivered to the Company, with appropriate stock powers or endorsements duly
executed in blank and guaranteed by a national bank or member of the New York
Stock Exchange.  If the certificates
representing any shares of Common Stock have not been surrendered by the
Employee Stockholder or shall not be delivered contemporaneously with the
tender of the purchase price, then the Company, shall

 

4

 

be appointed, and the same
is hereby irrevocably constituted and appointed, the attorney-in-fact with full
power and authority to execute the necessary stock powers and to perform all
other acts necessary and proper in order to transfer such stock certificate or
certificates to the purchaser, in accordance with the provisions of this
Agreement and all rights of the Employee Stockholder thereof with respect to
said Common Stock (including voting rights) nonetheless shall cease and
terminate.  Each Employee Stockholder
shall also deliver to the Company at the Closing (a) all documentation
required by Section 2 hereof for the transfer of such Employee Stockholder’s
Stock, as applicable; and (b) a full and unconditional general release
signed by the Employee Stockholder in the form and substance required by the
Company.

 

6.                                       Securities Laws and Endorsements of Stock
Certificates.

 

(a)                                  Each Employee Stockholder acknowledges that
the Common Stock of the Company acquired by it has not been registered under
the Securities Act of 1933 (hereinafter referred to as the “Act”) or any state
securities law (the “State Act”).  Each
Employee Stockholder severally represents and warrants that it has acquired the
shares of Common Stock of the Company without a view to, the offer, offer for
sale, or sale in connection with, the distribution of such shares of the Common
Stock, and that it will hold such shares of Common Stock indefinitely unless
subsequently registered under the Act and the State Acts or unless exemption
from such registration is available and an opinion of counsel for the Company,
in form and substance satisfactory to the Company, is obtained to that
effect.  The provisions of Section 2
hereof are in all respects subject to the restrictions of the Act and the State
Acts and regulations thereunder.  All
certificates representing shares of Common Stock subject to this Agreement
shall be conspicuously legended in substantially the following form:

 

“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS.  SUCH SECURITIES MAY NOT BE
SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”

 

Each Employee Stockholder
realizes that the Company does not file, and does not in the foreseeable future
contemplate filing, periodic reports in accordance with the provisions of Section 13
or 15(d) of the Securities and Exchange Act of 1934, and also understands
that the Company has not agreed to register any of its securities for
distribution in accordance with the provisions of the Act or to take any
actions

 

5

 

respecting the obtaining of
an exemption from registration for such securities or any transaction with
respect thereto.

 

(b)                                 Upon the execution of this Agreement, the
certificates representing shares of Common Stock subject to this Agreement
shall be conspicuously legended as follows:

 

“THE SHARES OF STOCK
REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED AS TO TRANSFER BY THE TERMS,
CONDITIONS AND COVENANTS OF AN AGREEMENT WITH RESPECT THERETO DATED THE     
DAY OF SEPTEMBER, 2003, A COPY OF WHICH IS ON FILE WITH THE COMPANY.  THE COMPANY WILL GRATUITOUSLY FURNISH A COPY
OF SAID AGREEMENT TO ANY PARTY HAVING A VALID INTEREST THEREIN.  ANY TRANSFER OF STOCK OTHER THAN IN
ACCORDANCE WITH SAID AGREEMENT SHALL BE ABSOLUTELY NULL AND VOID.”

 

All certificates for any shares of Common Stock
hereinafter issued to an Employee Stockholder shall bear the same legend, and
this Agreement shall cover all such stock.

 

7.                                       Stock Issued In The Future.

 

Nothing in this Agreement
shall be construed as preventing the Company from issuing its shares of any
class to any other person at any other time free of any restrictions including,
without limitation, the restrictions provided for herein.

 

8.                                       After-Acquired Stock.

 

Whenever an Employee
Stockholder acquires any additional shares of Common Stock of the Company or
any other “securities” (as said term is defined in the Act) of the Company
other than the shares of Common Stock owned at the time of the execution of
this Agreement, such shares of Common Stock or such other securities (as the
term is defined in the Act) of the Company so acquired shall be subject to all
of the terms of this Agreement, and the certificates therefor shall be
surrendered to the Company for legending in accordance with Section 6 of
this Agreement, unless already so legended.

 

9.                                       Termination.

 

This Agreement shall remain
in effect until the happening of any of the events listed below, upon the first
to occur of such events, all rights and obligations

 

6

 

other than the obligations
relating to registration under or exemption from the Act and the State Acts, as
set forth in Section 6 of this Agreement, and rights and obligations
respecting the payments pursuant to Section 3 shall cease:

 

(a)                                  the adjudication of the Company as a
bankrupt, the execution by the Company of an assignment for the benefit of
creditors or the appointment of a receiver for the Company;

 

(b)                                 the voluntary dissolution of the Company;

 

(c)                                  in the event that there shall be only one (1) owner
of issued and outstanding shares of Common Stock of the Company;

 

(d)                                 the Company’s IPO (as such term is defined in
the Stockholders’ Agreement); or

 

(e)                                  the Company’s Change of Control (as such term
is defined in the Stockholders’ Agreement).

 

10.                                 Notices.

 

All notices, offers,
acceptances, exercises of options, waivers and other acts under this Agreement
shall be in writing and shall be deemed to have been duly given when delivered
in person or mailed by certified or registered mail to the Employee Stockholder
at his or its address on the Company records and to the Company as follows:

 

KP Sports, Inc. 

1020 Hull Street, Third Floor 

Baltimore, Maryland 21230

Attn: Kevin Plank, President and CEO

 

Any party hereto may change
his or its address for notice by written notice to the others, in the manner
hereinabove provided.

 

11.                                 Additional Actions And Documents.

 

Each of the parties hereto
agrees to take or cause to be taken further actions, to execute and deliver or
cause to be executed and delivered such further instruments and to use his or
its best efforts to obtain such requisite consents as any other party may from
time to time reasonably request in order to fully effectuate the purposes,
terms and conditions of this Agreement.

 

7

 

12.                                 Miscellaneous.

 

(a)                                  This instrument contains the entire agreement
between the parties and supersedes all prior oral or written agreements,
commitments or understandings with respect to the purchase of securities of the
Company held by the Employee Stockholders on the Employee’s death, and no
modification shall be binding upon the party affected unless set forth in
writing and duly executed by each party affected.

 

(b)                                 The Employee represents and warrants that he
is the sole owner of the number of shares of the Common Stock set forth
opposite his signature hereto, evidenced by the certificate number or numbers
shown immediately after such number of shares, that all of such shares are free
and clear of all liens, claims, charges, security interests, or encumbrances of
any kind, and that he has the right and lawful authority to sell or otherwise
transfer such shares.

 

(c)                                  All of the covenants and agreements in this
Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of their respective heirs, guardians, personal and legal
representatives, successors and assigns.

 

(d)                                 This Agreement shall be construed and
enforced in accordance with, and the rights of the parties shall be governed
by, the laws of the State of Maryland, without regard to principles of
conflicts of law.

 

(e)                                  It is the express intention of the parties
that the agreements contained herein shall have the widest application
possible.  If any agreement contained
herein is found by a court having jurisdiction to be unreasonable in scope or
character, the agreement shall not be rendered unenforceable thereby; but rather
the scope or character of such agreement shall be deemed reduced or modified
with retroactive effect to render such agreement reasonable and such agreement
shall be enforced as thus modified.  If
the court having jurisdiction will not review the agreement, then the parties
shall mutually agree to a revision having an effect as close as permitted by
law to the provision declared unenforceable. 
In the event that a court having jurisdiction determines that one or
more of the provisions of this Agreement shall be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby.

 

(f)                                    Inasmuch as the shares of Common Stock cannot
be readily purchased or sold in the open market, irreparable damage would
result in the event this Agreement is not specifically enforced.  In the event of a breach of this Agreement,
any non-breaching party hereto may maintain an action for specific performance
against the party or parties hereto who are alleged to have breached any of the
terms, conditions, representations, warranties, or agreements herein contained
and it is hereby further agreed that no objection to the form of action in any
proceeding for specific performance of this Agreement shall be raised by any

 

8

 

party hereto so that such specific
performance of this Agreement may not be obtained by the aggrieved party.  Anything contained herein to the contrary
notwithstanding, this Section 12(f) shall not be construed to limit
in any manner whatsoever any other rights and remedies an aggrieved party may
have by virtue of any breach of this Agreement.

 

(g)                                 The descriptive headings of the several
sections and paragraphs’ of this
Agreement are inserted for convenience only and do not constitute a part of
this Agreement.

 

(h)                                 Unless the context otherwise requires,
whenever used in this Agreement, the singular shall include the plural, the
plural shall include the singular, and the masculine gender shall include the
neuter and feminine gender, and vice-versa.

 

(i)                                     This Agreement may be executed in
counterparts, each of which shall be an original, but all of which shall
together constitute one document.

 

13.                                 Wills.

 

The Employee agrees to
either prepare and execute a Will or amend his existing Will to instruct his
personal representative to strictly comply with the terms and conditions of
this Agreement; provided that any failure of an Employee to comply with the
provisions of this Section shall not affect in any way the agreements and
obligations otherwise imposed upon them by this Agreement.

 

14.                                 Representation by Counsel.

 

In the negotiation of this
Agreement, each party has had the opportunity to be represented by legal
counsel and independent accountants. 
This Agreement is a fair and reasonable agreement, is not the result of
any fraud, duress or undue influence exercised by any party or by any other
person and has been signed freely and voluntarily, without relying upon any
representations, warranties or statements other than those expressly set forth
herein.

 

15.                                 Amendment.

 

Any term or condition set
forth in this Agreement may be amended, modified, altered or waived, and
additional terms and conditions may be incorporated into this Agreement with
the express written consent of the Company and the holders of a majority of the
shares of Common Stock held by the Employee Stockholders under this
Agreement.  All of such amendments,
modifications, alterations, waivers or additions shall be effective as of the
date of such consent, shall be in writing and shall be provided to each of the
parties.

 

9

 

IN WITNESS WHEREOF, the
parties have hereunto set their hands and seals and acknowledged this Agreement
as of the date first above written.

 

	
  ATTEST:

  	
   

  	
  KP SPORTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    /s/ Joanne Hillman

  	
   

  	
   

  	
  By:

  	
    /s/ J. Scott Plank

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    /s/ Joanne Hillman

  	
   

  	
   

  	
     /s/ Kevin A. Plank

  	
   

  
	
   

  	
   

  	
  Name: Kevin A. Plank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of Shares: 5,400,000

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Certificate No(s): 8

  

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]