Document:

Exhibit 10.1 Ambassadair Asset Purchase Agreement

Exhibit 10.1

    

    ASSET
      PURCHASE AGREEMENT

    

    

    dated
      as of November 14, 2005

    

    

    by
      and among

    

    

    Grueninger
      Cruises and Tours, Inc.

    

    and

    

    Ambassadair
      Travel Club, Inc.

    

    and

    

    Amber
      Travel, Inc.

    

    and

    

    ATA
      Airlines, Inc.

    

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    ASSET
      PURCHASE AGREEMENT

     

    This
      Asset Purchase Agreement (this "Agreement")
      is
      entered into as of November 14, 2005 (the "Execution
      Date")
      by and
      between Grueninger
      Cruises and Tours, Inc.,
      an
      Indiana corporation (""Buyer"),
      Ambassadair
      Travel Club, Inc., an
      Indiana corporation ("Ambassadair"),
      Amber
      Travel, Inc.,
      an
      Indiana corporation ("Amber"
      and
      collectively with Ambassadair, "Sellers"),
      and
ATA
      Airlines, Inc.,
      an
      Indiana corporation ("ATA").

     

    WHEREAS,
      Ambassadair, Amber and ATA each are wholly owned subsidiaries of Holdings,
      and

     

    WHEREAS,
      Holdings, Ambassadair, Amber and ATA are each Debtors in Chapter 11 proceedings
      pending in the United States Bankruptcy Court for the Southern District of
      Indiana; and

     

    WHEREAS,
      Ambassadair is a membership- based travel club that provides trips, tours and
      other travel services to its members; and

     

    WHEREAS,
      Amber is a travel agency that provides travel agency services in conjunction
      with the businesses of Ambassadair and ATA; and

     

    WHEREAS,
      Buyer is an experienced and financially capable, Indianapolis, Indiana based
      provider of tours, trips and other travel services which will pursuant to this
      Agreement purchase certain of the assets of Ambassadair, Amber and ATA and,
      as a
      manager acting on behalf of Ambassadair, will operate and complete certain
      Ambassadair tours and trips which have been sold by Ambassadair to Ambassadair
      members, and as the purchaser of Ambassadair assets, will offer benefits and
      travel opportunities to current and former members of Ambassadair.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants, representations, warranties
      and agreements herein contained, Buyer, Ambassadair, Amber and ATA hereby agree
      as follows:

     

    ARTICLE
      I  

     

    PURCHASED
      ASSETS AND PURCHASED
      ATA EQUIPMENT

     

    1.1.  Purchase
      and Sale of Assets.

     

    
      	(a)  	
              Upon
                and subject to the terms and conditions of this Agreement, (i) Buyer
                shall
                purchase from Sellers, and Sellers shall sell, transfer, convey,
                assign
                and deliver to Buyer, at the Closing, for the consideration specified
                in
                this Agreement, all of Sellers' respective rights, title and interests
                in,
                to and under the Purchased Assets, and (ii) Buyer shall purchase
                from ATA,
                and ATA shall sell, transfer, convey, assign and deliver to Buyer,
                at the
                Closing, for the consideration specified in this Agreement, all of
                ATA's
                rights, title and interests in, to and under the Purchased ATA Equipment,
                with all of the Assets, being sold, transferred, conveyed and assigned
                by
                the Sellers and ATA free and clear of all claims, liens, restrictions,
                encumbrances or security interests of any nature, as provided in
                the
                Approval Order. The Purchased ATA Equipment is identified on
                Schedule 2.4(ii) to this
                Agreement.

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              The
                Parties acknowledge and agree that Sellers and ATA are not selling,
                assigning, or conveying to Buyer any of the Excluded Assets. The
                terms
                "Purchased Assets," " Purchased ATA Equipment" and "Assets," as used
                in
                this Agreement, do not include any of the Excluded
                Assets.

            

    

     

    1.2.  Assumption
      of Liabilities.

     

    Except
      as
      provided in Section 1.4 of this Agreement, Buyer shall not, directly or
      indirectly, assume or otherwise pay or perform any obligations, liabilities,
      claims or
      other
responsibilities
      of either of Sellers or ATA, including any relating to the ownership, operation
      or use of the Excluded Assets or the Businesses, and Buyer shall not assume
      any
      other liabilities of Sellers or ATA, of any character or description, including
      environmental liabilities, liabilities relating to current or former employees
      or any liabilities for any and all taxes (sales, property, income, corporate
      or
      otherwise).

     

    1.3.  Purchase
      Price. 

     

    In
      consideration of the assignment, transfer and conveyance to Buyer of all right,
      title, interest in and to the Assets and the other rights assigned, granted
      or
      transferred to Buyer pursuant hereto, and subject to the conditions and in
      accordance with the terms hereof, Buyer shall pay to the Sellers and ATA an
      aggregate Purchase Price of Three Hundred Thousand Dollars ($300,000.00) for
      the
      Assets, being allocated as follows: $50,000 to ATA for the Purchased ATA
      Equipment; and $250,000 to the Sellers for the Purchased Assets, with $25,000
      of
      this amount being allocated to Amber Travel for its part of the Purchased
      Assets, and the balance to Ambassadair for its part of the Purchased
      Assets.

     

    The
      Purchase Price will be paid as follows: (i) the sum of One Hundred Fifty
      Thousand Dollars ($150,000.00) cash at Closing, and (ii) the additional sum
      of
      One Hundred Fifty Thousand Dollars ($150,000.00) cash payable on January 2,
      2006.

     

    
      	(a)  	
              Release
                of Initial Deposit.
                In connection with that certain Letter Agreement executed between
                Sellers,
                ATA and Buyer on October 20, 2005 (the "Letter Agreement"), Buyer
                deposited for the account of Sellers One Hundred Thousand Dollars
                ($100,000), which deposit is held in the Trust Account of Baker &
                Daniels LLP (the "Initial Deposit"). Upon the closing of this Agreement
                and as a portion of the Purchase Price payable at Closing, Buyer
                shall
                authorize, in a writing addressed and delivered to Baker & Daniels
                LLP, the release and delivery to the Sellers as provided in this
                Agreement
                of the Initial Deposit as a cash credit of One Hundred Thousand Dollars
                ($100,000) to the Purchase Price. Of this payment, $25,000 shall
                be
                released and paid directly to Amber Travel and the balance shall
                be
                released and paid directly to
                Ambassadair.

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              Supplemental
                Payment.
                In addition, at Closing, Buyer shall pay directly to ATA, by wire
                transfer
                of immediately available funds to an account designated by ATA, the
                sum of
                $50,000 (the "Supplemental
                Payment").

            

    

     

    
      	(c)  	
              January
                2, 2006 Payment
                Buyer shall pay directly to Ambassadair, without relief from valuation
                and
                appraisement laws, the remaining balance of the Purchase Price, being
                $150,000, on January 2, 2006. This payment shall be made by wire
                transfer
                of immediately available funds to an account designated by Ambassadair.
                In
                the event this payment is not paid when due, the unpaid principal
                balance
                thereof shall bear interest at the rate of 12% per annum until paid
                in
                full, and Ambassadair shall be entitled to payment of all reasonable
                attorneys' fees incurred in the collection
                thereof.

            

    

     

    1.4.  Contracted
      Trips. 

     

    
      	(a)  	
              Buyer
                agrees to serve as manager of all operations of Ambassadair from
                and after
                the Closing relating to the providing, performance, delivery and
                completion of the Contracted Trips and the Remaining 2005 Trips (as
                those
                terms are defined in Article IX) and to manage, supervise and handle
                the
                refunding, return and repayment (from Restricted Cash or by an applicable
                credit card processor with a credit card holdback) of amounts paid
                to
                Ambassadair for cancelled Contracted Trips or cancelled Remaining
                2005
                Trips to those members/purchasers who are entitled to such refunds,
                returns and repayments. In addition, in the event as of the Closing
                there
                are refunds or repayments yet to be made by Ambassadair to
                members/purchasers for trips previously cancelled and for which there
                are
                funds for such refunding or repayment held in Restricted Cash or
                Customer
                Accounts Receivable, Buyer will manage and supervise the refunding
                and
                repayment of such funds by
                Ambassadair.

            

    

     

    
      	(b)  	
              Ambassadair
                shall pay to Buyer a one-time payment of $85,000 on January 2, 2006
                (which
                payment Buyer may credit against the balance of the Purchase Price
                payment
                due to Ambassadair on that date) for the management of the remaining
                2005
                Trips pursuant to this Agreement.

            

    

     

    
      	(c)  	
              Buyer
                shall exercise in its performance of its duties as manager the same
                care
                as it exercises in the ordinary course of its business the management,
                supervision, selling and providing of trips and
                tours.

            

    

     

    
      	(d)  	
              After
                Closing, Buyer, as manager of the Contracted Trips, shall have the
                right
                to cancel or modify Contracted Trips consistent with the policies
                of
                Ambassadair. Ambassadair retains the right to cancel any of the Remaining
                2005 Trips from time to time in accordance with its policies. In
                particular, Buyer is to review and re-evaluate from time to time
                after
                Closing each Contracted Trip to determine if the remaining costs
                to be
                incurred in the providing and completion of that Contracted Trip
                (after
                allowance for Prepaid Expenses and Other Deposits related to that
                Contracted Trip) do not exceed the sum of the Customer Accounts Receivable
                and Restricted Cash held by Ambassadair for that Contracted Trip,
                plus net
                revenues generated to Buyer from its sale for its own account of
                additional participation by members of Ambassadair or other persons
                in
                that Contracted Trip. If a Contracted Trip does not, in Buyer's business
                judgment, satisfy this financial test (such a Contracted Trip being
                called
                an "Underfunded Trip"), Buyer, as manager, may cancel the Underfunded
                Trip
                in accordance with and pursuant to Ambassadair policies for cancellation.
                

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Buyer
      shall have until November 23, 2005, to notify Ambassadair of its decision to
      cancel any Contracted Trips which have a departure date in January, 2006. Buyer
      shall have until December 12, 2005, to notify Ambassadair of Buyer's decision
      to
      cancel any Contracted Trips which have a departure date in February, 2006.
      Buyer
      shall have until December 27, 2005, to notify Ambassadair of Buyer's decision
      to
      cancel any Contracted Trips which has a departure date in March, 2006. If Buyer,
      as manager, does not provide Ambassadair a notice of its election to cancel
      a
      Contracted Trip by the cancellation notification deadline for that particular
      Contracted Trip as stated in this paragraph (any such Contracted Trip for which
      there has not been a timely notice of an election to cancel from the Buyer
      to
      Ambassadair being called an "Accepted Trip"), then even if that Accepted Trip
      is
      an Underfunded Trip, Buyer shall be responsible for and shall pay any costs
      for
      the providing, operating and completion of that Accepted Trip to the extent
      such
      costs are not covered by or reimbursed from the Prepaid Expenses and Other
      Deposits, Customer Accounts Receivable and Restricted Cash for that Accepted
      Trip. Buyer may elect to cancel an Accepted Trip, but Buyer shall be liable
      to
      pay to Ambassadair all additional losses suffered by Ambassadair as the result
      of any increase in penalties, forfeitures, reductions in refund percentages
      and
      other losses of Prepaid Expenses and Other Deposits for that particular Accepted
      Trip which result from Ambassadair not being able to cancel contractual
      commitments with the providers who have the Prepaid Expenses and Other Deposits
      within two days of the date when Buyer could have last given a notice of its
      election to cancel in order to keep the Accepted Trip from becoming an Accepted
      Trip. 

     

    It
      is
      understood that Buyer, as manager, will be required to advance funds to pay
      costs of providing and completing Contracted Trips which are to be reimbursed
      from Restricted Cash and Customer Accounts Receivable related to that Contracted
      Trip. Buyer shall not be entitled to any interest on these advances, but shall
      be entitled to reimbursement from Ambassadair for all such advances from such
      Restricted Cash, when released from restriction, and such Customer Accounts
      Receivable, when proceeds thereof are received, such reimbursement not to exceed
      the amount of such Restricted Cash and Customer Accounts
      Receivable.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    In
      the
      event, as respects any Accepted Trip which is completed, there is a residual
      balance, after full reimbursement of Buyer's advances as provided above, of
      proceeds from the release of the Restricted Cash for that Accepted Trip and
      the
      proceeds received from Customer Accounts Receivable, such residual balance
      shall
      be paid to Buyer as its compensation for management of the Contracted
      Trips.

     

    
      	(e)  	
              Buyer
                shall be entitled at its option to sell, on its own account and not
                as
                manager participation, to any persons, including existing members
                of
                Ambassadair, in Contracted Trips from and after the Closing. It is
                recognized that many of the Contracted Trips may avoid being Underfunded
                Trips if Buyer is able to sell additional participation in the Contracted
                Trip. In the event a Contracted Trip, including an Accepted Trip,
                on which
                Buyer has sold participation, becomes a cancelled Contracted Trip,
                Buyer
                shall be solely responsible for all refunds and repayments to those
                persons who purchased participation in the Contracted Trip from or
                through
                Buyer. Buyer shall not be entitled to any other compensation for
                its
                service as manager of the Contracted Trips, except as provided by
                the
                terms of this Agreement.

            

    

     

    
      	(f)  	
              Ambassadair
                shall be entitled to handle on its own the communications with third
                party
                providers required to cancel and obtain refunds with respect to any
                Contracts related to any the Remaining 2005 Trips which may be cancelled
                or to cancel and obtain refunds with respect to any of the Contracts
                related to Contracted Trips which may be
                cancelled.

            

    

     

    
      	(g)  	
              At
                the Closing, ATA shall grant Buyer a paid up, non-exclusive license
                to use
                the AIRAS operation and reservation software of ATA in the performance
                of
                its duties as manager of the Contracted Trips, for the entire period
                in
                which Buyer is serving as manager for the Contracted
                Trips.

            

    

     

    1.5.  The
      Closing.

     

    
      	(a)  	
              The
                consummation of the purchase, assignment and transfer of all right,
                title
                and interest in and to the Assets shall take place at the offices
                of Baker
                & Daniels, LLP, 300 North Meridian Street, Suite 2700, Indianapolis,
                Indiana, subject to the satisfaction or waiver of the conditions
                set forth
                in Article V, as soon as practical, but in no event later than November
                18, 2005 (the "Closing Date"). All transactions at the Closing shall
                be
                deemed to take place simultaneously, effective 12:01 a.m. on the
                Closing
                Date, and no transaction shall be deemed to have been completed and
                no
                documents or certificates shall be deemed to have been delivered
                until the
                Transactions are completed and all documents and certificates are
                delivered.

            

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              At
                the Closing:

            

    

     

    
      	(i)  	
              Sellers
                and ATA shall each execute and deliver to Buyer the Master Bills
                of
                Sale-ATA and Master Bill of Sale-Sellers, and
                such other instruments of conveyance and assignment as Buyer may
                reasonably request in order to effect the sale, transfer, conveyance
                and
                assignment to Buyer of the Assets;
                and

            

    

     

    
      	(ii)  	
              Buyer
                shall authorize the release and payment to Sellers of the Initial
                Deposit,
                and shall have paid the Supplemental Payment to ATA.
                

            

    

     

    1.6.  Allocation.
      Unless
      extended by agreement of the Parties, Buyer shall, within sixty (60) days after
      the Closing Date, prepare and deliver to Sellers for their consent (which
      consent shall not be unreasonably withheld, conditioned or delayed) a schedule
      allocating to Sellers the Purchase Price (less the Fifty Thousand Dollars
      ($50,000.00) paid to ATA) among the Purchased Assets, all in accordance with
      Treasury Regulation 1.1060-1T (or any comparable provisions of state or local
      tax law) or any successor provision. If Sellers do not give their consent,
      Buyer
      and Sellers will negotiate in good faith to resolve such objections. Buyer
      and
      Sellers shall report and file all Tax Returns (including amended Tax Returns
      and
      claims for refund) consistent with the allocation, if any, consented to, or
      required to be consented to, by Sellers , and shall take no position contrary
      thereto or inconsistent therewith (including, without limitation, in any audits
      or examinations by any taxing authority or any other proceedings). Buyer and
      Sellers shall cooperate in the filing of any forms (including Form 8594) with
      respect to such allocation. If and to the extent the Parties are unable to
      agree
      on such allocation, each shall be free to make its own allocation for tax
      purposes. Notwithstanding any other provisions of this Agreement, the foregoing
      shall survive the Closing Date without limitation. 

     

    1.7.  Further
      Assurances.
      At any
      time and from time to time after the Closing without further consideration,
      the
      Parties shall each execute and deliver such other instruments of sale, transfer,
      conveyance and assignment and take such actions as the other Parties reasonably
      may request to
      accomplish the Transactions contemplated hereby.

     

    1.8.  Acknowledgment.
      Buyer
      acknowledges and agrees that it is acquiring the Assets "As Is" and "Where
      is",
      WITHOUT WARRANTY, EXPRESS OR IMPLIED, OTHER THAN AS SET FORTH EXPRESSLY IN
      THIS
      AGREEMENT. SELLERS AND ATA DISCLAIM ALL OTHER EXPRESS WARRANTIES AND DISCLAIM
      ALL IMPLIED WARRANTIES, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY
      OR
      FITNESS FOR A PARTICULAR PURPOSE. 

     

    1.9.   Executory
      Contracts.
      Buyer
      shall have forty-five (45) days following the Closing Date to designate those
      executory contracts to which either of Sellers is a party ("Contracts") that
      it
      desires to assume by providing written notice thereof to Sellers. Buyer shall
      not assume any Contracts for the purchase of services to be provided on any
      Remaining 2005 Trips, or any cancelled Contracted trip, unless buyer pays to
      Ambassadair the Prepaid Expenses and Other deposits made by Ambassadair with
      respect to that assumed Contract. Buyer will be responsible to pay any and
      all
      amounts required to cure any defaults to allow for the assumption of the
      Contracts which Buyer elects to assume. Sellers shall, at Seller's expense,
      obtain an appropriate court order authorizing the assumption and assignment
      of
      those Contracts being so assumed by Buyer, provided that it shall be Buyer's
      responsibility to demonstrate "adequate assurance of future performance" under
      the applicable Contracts. Sellers shall cooperate reasonably with Buyer in
      its
      election to assume or renegotiate any of the Contracts. Buyer shall be
      unconditionally liable and responsible for the payment, satisfaction,
      performance and discharge of all Contracts assumed by Buyer.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    1.10.  From
      the
      Closing Date until April 30, 2006, Buyer may be present in and perform its
      management services from the office space currently occupied by Ambassadair
      (the
      "Ambassadair Office Space"); provided that the occupied space may be reduced
      at
      ATA's option from time to time to adjust to the reduced number of employees
      of
      Buyer who will be working in the Ambassadair Office Space, and provided further
      that Buyer shall reimburse ATA monthly within 15 days of receipt of invoice
      from
      ATA for a pro-rata portion of actual cash costs incurred by ATA associated
      with
      the occupancy and use of the Ambassadair Office Space, other than rent. Buyer
      shall be entitled to leave the Purchased ATA Equipment in the Ambassadair Office
      Space during this period. In addition, until the Contracted Trips are completed,
      Sellers and/or ATA will cause all telephonic, electronic, and other inquiries
      regarding Contracted Trips to be forwarded to personnel designated by
      Buyer.

     

    ARTICLE
      II  

     

    

     

    REPRESENTATIONS
      AND WARRANTIES OF SELLERS AND ATA

     

    Sellers
      and ATA represent and warrant to Buyer that the statements contained in this
      Article II are true and correct as of the date of this Agreement and will be
      true and correct as of the Closing as though made as of the Closing, except
      to
      the extent such representations and warranties are specifically made as of
      a
      particular date (in which case such representations and warranties will be
      true
      and correct as of such date). Sellers
      and ATA's representations and warranties shall survive the Closing.

     

    2.1.  Organization,
      Qualification and Corporate Power.
      Amber
      is a corporation duly organized and validly existing under the laws of the
      State
      of Indiana. Ambassadair is a corporation duly organized and validly existing
      under the laws of the State of Indiana. ATA is a corporation duly organized
      and
      validly existing under the laws of the State of Indiana. Sellers and ATA are
      each duly qualified to conduct business under the laws of each jurisdiction
      where the nature of the business conducted by it or the properties owned or
      leased by it require qualification, except for those jurisdictions in which
      the
      failure to be so qualified, individually or in the aggregate, has not had and
      would not reasonably be expected to have a Seller Material Adverse Effect.
      Sellers and ATA each have all requisite corporate power and authority to carry
      on the businesses in which they are engaged, and to own and use the
      Assets.

    
 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    2.2.  Authorization
      of Transaction.
      Sellers
      and ATA each has the requisite corporate power and authority to execute this
      Agreement and the Ancillary Agreements, and pursuant to the Approval Order,
      Sellers and ATA each have the requisite power and authority to perform its
      respective obligations under this Agreement and the Ancillary Agreements. The
      execution and delivery of this Agreement and the Ancillary Agreements have
      been
      (or will be at the time of execution thereof) duly authorized by all necessary
      corporate or other organizational action on the part of Sellers and ATA. This
      Agreement has been duly and validly executed and delivered by Sellers and ATA
      and constitutes, and each of the Ancillary Agreements, upon its execution and
      delivery by Sellers or ATA, will constitute, a valid and binding obligation
      of
      Sellers and ATA, enforceable against the Sellers and ATA in accordance with
      its
      terms.

     

    2.3.  Non-contravention.
      Neither
      the execution and delivery by Sellers and ATA of this Agreement or the Ancillary
      Agreements, nor the consummation by Sellers and ATA of the Transactions will
      (a)
      conflict with or violate any provision of the Certificate of
      Incorporation or
      Bylaws
      of Sellers and ATA, (b) conflict with, result in a breach of, constitute (with
      or without due notice or lapse of time or both) a default under, result in
      the
      acceleration of obligations under, create in any party the right to terminate,
      modify or cancel, or require any notice, consent or waiver under, any contract
      or instrument to which Sellers or ATA is a party or by which Sellers or ATA
      is
      bound or to which any of its respective assets is subject, except for (i) any
      conflict, breach, default, acceleration, termination, modification or
      cancellation which, individually or in the aggregate, would not have a Seller
      Material Adverse Effect and would not adversely affect the consummation of
      the
      Transactions, or (ii) any notice, consent or waiver, the absence of which,
      individually or in the aggregate, would not have a Seller Material Adverse
      Effect and would not adversely affect the consummation of the Transactions,
      (c)
      result in the imposition of any security interest upon the Assets, or (d)
      violate any order, writ, injunction, decree, statute, rule or regulation
      applicable to Sellers or ATA or any of the Assets.

     

    2.4.  Ownership
      and Condition of Assets.
      One of
      the Sellers as the true and lawful owner, has good marketable title to, all
      of
      the Purchased Assets and ATA, as the true and lawful owner has good and
      marketable title to all of the Purchased ATA Assets. Sellers and ATA each have
      the authority to transfer the Purchased Assets to Buyer free and clear of all
      claims, liens, restrictions, encumbrances or security interests of any nature
      as
      provided in the Approval Order. Schedule
      2.4(ii)
      sets
      forth a complete identification of the Purchased ATA Equipment.

     

    2.5.  Disclosure.
      No
      representation or warranty by Sellers or ATA contained in this Agreement or
      any
      other document, certificate or other instrument delivered or to be delivered
      by
      or on behalf of Sellers or ATA pursuant to this Agreement, contains or will
      contain any untrue statement of a material fact or omits or will omit to state
      any material fact necessary, in light of the circumstances under which it was
      or
      will be made, in order to make the statements herein or therein not misleading.
      

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III  

     

    

     

    REPRESENTATIONS
      AND WARRANTIES OF BUYER

     

    Buyer
      represents and warrants to Sellers, ATA and Holdings that the statements
      contained in this Article III are true and correct as of the date of
      this
      Agreement and will be true and correct as to the Closing as though made as
      of
      the Closing. Buyers' representations and warranties shall survive the
      Closing.

     

    3.1.  Organization
      and Corporate Power.
      Buyer
      is a corporation duly organized and validly existing under the laws of the
      State
      of Indiana. Buyer is duly qualified to conduct business under the laws of each
      jurisdiction where the nature of the business to be conducted by it after the
      Closing or the properties to be owned or leased by it after the Closing require
      qualification. Buyer has all requisite corporate power and authority to carry
      on
      the businesses in which it is engaged and to own and use the properties owned
      and used by it.

     

    3.2.  Authorization
      of the Transaction.
      Buyer
      has all requisite power and authority to execute and deliver this Agreement
      and
      the Ancillary Agreements and to perform its obligations hereunder and
      thereunder. The execution and delivery by Buyer of this Agreement and the
      Ancillary Agreements and the consummation by Buyer of the Transactions have
      been
      duly and validly authorized by all necessary corporate action on the part of
      Buyer. This Agreement has been duly and validly executed and delivered by Buyer
      and constitutes a valid and binding obligation of Buyer, enforceable against
      it
      in accordance with its terms.

     

    3.3.  Non-contravention.
      Neither
      the execution and delivery by Buyer of this Agreement or the Ancillary
      Agreements, nor the consummation by Buyer of the Transactions will (a) conflict
      with or violate any provision of the Certificate of Incorporation or Bylaws
      of
      Buyer, (b) conflict with, result in breach of, constitute (with or without
      due
      notice or lapse of time or both) a default under, result in the acceleration
      of
      obligations under, create in any party any right to terminate, modify or cancel,
      or require any notice, consent or waiver under, any contract or instrument
      to
      which Buyer is a party or by which it is bound or to which any of its assets
      is
      subject, or (c) violate any order, writ, injunction, decree, statute, rule
      or
      regulation applicable to Buyer or any of its properties or assets.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV  

     

    

     

    PRE-CLOSING
      COVENANTS

     

    4.1.  Closing
      Efforts.
      Each of
      the Parties shall use its Reasonable Best Efforts to take all actions and to
      do
      all things necessary, proper or advisable to consummate the Transactions,
      including using its Reasonable Best Efforts to insure that (i) its
      representations and warranties remain true and correct in all material respects
      through the Closing Date and (ii) the conditions to the obligations of the
      other
      Party to consummate the Transactions are satisfied.

     

    4.2.  Operating
      Businesses Pending Closing Date.Pending
      the Closing of the Transactions, Ambassadair shall operate its Businesses in
      a
      manner consistent with its current practices, and with Buyer being allowed
      to
      participate on-site in the oversight of operations related to Contracted Trips.
      Pending Closing, Sellers shall not enter into, modify or negotiate the terms
      of
      any Material
      Contract
      affecting the Assets without the approval of Buyer, which approval shall not
      be
      unreasonably withheld or delayed. Buyer will provide such approval, in its
      sole
      discretion, on a timely basis such that Ambassadair will be able to operate
      its
      Businesses in the ordinary course. 

     

    ARTICLE
      V  

     

    

     

    CONDITIONS
      TO CLOSING

     

    5.1.  Conditions
      to Obligations of Each Party.
      The
      obligations of Buyer, Sellers and ATA to consummate the Transactions to be
      consummated at the Closing, is subject to the Approval Order having been entered
      by the Bankruptcy Court.

     

    5.2.  Conditions
      to Obligations of Buyer.
      The
      obligations of Buyer shall not be subject to, or conditioned upon, any further
      due diligence by Buyer, or to any financing or other capital availability
      contingency. The obligation of Buyer to consummate the Transactions to be
      consummated at the Closing is subject to the satisfaction of, at or prior to
      Closing, all of the following additional conditions, any one or more of which
      may be waived in writing at the option of Buyer:

     

    
      	(a)  	
              All
                representations and warranties of Sellers and ATA in this Agreement,
                or in
                any exhibit, schedule or document delivered pursuant hereto, shall
                be true
                and correct in all material respects, in each case when made and
                on and as
                of the Closing Date as if made on and as of that date.
                

            

    

     

    
      	(b)  	
              All
                of the terms, covenants and conditions to be complied with and performed
                by Sellers and ATA on or prior to the Closing Date shall have been
                complied with or performed in all material respects.
                

            

    

     

    
      	(c)  	
              No
                action, suit or proceeding (including, without limitation, any proceeding
                over which the Bankruptcy Court has jurisdiction under 28 U.S.C.
§157(b)
                and (c)) shall be pending or overtly threatened by or before any
                Governmental Authority or pending or overtly threatened by any other
                Person to enjoin, restrain, prohibit or obtain substantial damages
                or
                significant equitable relief in respect of or related to any of the
                Transactions.

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	(d)  	
              Buyer
                shall have obtained employment arrangements between Buyer and key
                personnel of Sellers as reasonably determined by
                Buyer.

            

    

     

    
      	(e)  	
              There
                is no material adverse change in the condition of the Assets prior
                to
                Closing.

            

    

     

    5.3.  Conditions
      to Obligations of Sellers and ATA.
      The
      obligation of Sellers or ATA to consummate the Transactions to be consummated
      at
      the Closing is subject to the satisfaction of, at or prior to Closing, all
      of
      the following additional conditions, any one or more of which may be waived
      in
      writing at the option of Sellers and ATA:

     

    
      	(a)  	
              All
                representations and warranties of Buyer made in this Agreement or
                in any
                exhibit, schedule or document delivered pursuant hereto shall be
                true and
                correct in all material respects, in each case when made and as of
                the
                Closing Date as if made on and as of that date (other than such
                representations or warranties that expressly speak only as of an
                earlier
                date).

            

    

     

    
      	(b)  	
              All
                of the terms, covenants and conditions to be complied with and performed
                by Buyer on or prior to the Closing Date shall have been complied
                with or
                performed in all material respects.

            

    

     

    
      	(c)  	
              No
                action, suit or proceeding (including, without limitation, any proceeding
                over which the Bankruptcy Court has jurisdiction under 28 U.S.C.
                § 157(b) and (c)) shall be pending or overtly threatened by
                or before
                any Governmental Authority or pending or overtly threatened by any
                other
                Person to enjoin, restrain, prohibit or obtain substantial damages
                or
                significant equitable relief in respect of or related to any of the
                Transactions, or that would be reasonably likely to prevent or make
                illegal the consummation of the Transactions, and any such actions,
                suits
                or proceedings that have theretofore been brought and determined
                shall
                have become final orders without having any of the foregoing and
                without
                the imposition of any condition or requirement on Sellers and
                ATA.

            

    

     

    
      	(d)  	
              Buyer
                shall have demonstrated to Ambassadair's reasonable satisfaction
                that
                Buyer has added adequate staffing of qualified and experienced personnel
                to provide the management services required pursuant to this Agreement
                and
                is capitalized and financially able to serve as Ambassadair's manager
                for
                the Remaining 2005 Trips and the Contracted Trips in accordance with
                the
                terms of this Agreement.

            

    

     

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VI  

     

    

     

    POST-CLOSING
      COVENANTS

     

    6.1.  Sharing
      of Records.
      Buyer
      shall have the right for a period of seven years following the Closing Date
      to
      have reasonable access to those books, records and accounts that are retained
      by
      Sellers and ATA pursuant to the terms of this Agreement to the extent that
      any
      of the foregoing is needed by Buyer for the purpose of complying with its
      obligations under applicable laws and regulations. 

     

    6.2.  No
      Hiring.
      Effective upon Closing but terminating upon the earlier of one year from the
      date of Closing and any earlier date on which Buyer defaults in the payment
      of
      any amount payable under this Agreement to either of Sellers or ATA, , Holdings,
      Sellers and ATA agree not, directly or indirectly, to hire, engage or employ
      any
      Designated Buyer Employee. As used herein, the term "Designated Buyer Employee"
      means a person (including any current employees of ATA, Ambassadair or Amber)
      who within sixty (60) days after the Closing with Buyer becomes an employee
      of
      Buyer and for whom Buyer has given am employment notification to ATA by written
      notice. 

     

    ARTICLE
      VII  

     

    

     

    INDEMNIFICATION

     

    7.1.  Indemnification
      by Sellers.
      Sellers
      shall defend and indemnify Buyer, for a period of twelve (12) months after
      the
      Closing Date (provided if any claim for indemnity is made by Buyer within such
      twelve (12) month period Sellers' duty to indemnify shall continue until the
      claim is resolved), in respect of, and hold Buyer harmless against, any
      liability, claim, loss, damage or expense incurred or suffered by Buyer
      resulting from, relating to or constituting:

     

    
      	(a)  	
              any
                breach, as of the date of this Agreement or as of the Closing Date,
                of any
                representation or warranty of Sellers and ATA contained in this Agreement
                or any Ancillary Agreement; any claim or liability related to the
                Excluded
                Assets, any claim relating to Sellers and ATA's ownership, use or
                operation of the Assets prior to Closing; any liabilities obligations
                or
                indebtedness of Sellers or ATA whether incurred or arising before
                or after
                Closing;

            

    

     

    
      	(b)  	
              any
                failure to perform any covenant or agreement of Sellers and ATA contained
                in this Agreement or any Ancillary Agreement;
                or

            

    

     

    
      	(c)  	
              any
                claim asserted by any third person against Buyer solely based on
                Buyer's
                status as manager of the Contracted Trips, or based on any act or
                omission
                taken or not taken in good faith by Buyer, as manager of the Contracted
                Trips, excluding only claims for obligations, costs or liabilities
                for
                which Buyer is to be responsible under the terms of this Agreement
                and
                claims based on any purported gross negligence or wilful misconduct
                of
                Buyer.

            

    

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    7.2.  Limitation
      on Indemnification by Sellers .
      Notwithstanding anything contained herein to the contrary, Sellers' liability
      for indemnity claims under Section 7.1 of this Agreement is limited to an amount
      equal to the Purchase Price.

     

    7.3.  Indemnification
      by Buyer.
      Buyer
      shall indemnify Sellers, ATA and Holdings in respect of, and hold each harmless
      against, any and all liability, claim, loss, damage or expense incurred or
      suffered by any resulting from, relating to or constituting:

     

    
      	(a)  	
              any
                breach, as of the date of this Agreement or as of the Closing Date,
                of any
                representation or warranty of Buyer contained in this Agreement or
                any
                Ancillary Agreement; 

            

    

     

    
      	(b)  	
              any
                failure to perform any covenant or agreement of Buyer contained in
                this
                Agreement or any Ancillary Agreement;
                or

            

    

     

    
      	(c)  	
              any
                sales, use or other taxes which may be claimed to be payable by Buyer
                in
                connection with the Transactions, or any failure of Sellers and ATA
                to
                collect any such taxes from Buyer. 

            

    

     

    7.4.  Limitation
      on Indemnification by Buyer.
      Notwithstanding anything contained herein to the contrary, Buyer's aggregate
      liability for indemnity claims under Section 7.3
      of this
      Agreement is limited to an aggregate sum of $300,000.

     

    7.5.  Exclusive
      Remedy.
      Except
      with respect to claims based on fraud, after the Closing, the rights of the
      Parties under this Article VII shall be the exclusive remedy of the Parties
      with
      respect to claims resulting from or relating to any misrepresentation, breach
      of
      warranty or failure to perform any covenant or agreement contained in this
      Agreement or any Ancillary Agreement.

     

    

    ARTICLE
      VIII  

     

    

     

    TERMINATION

     

    8.1.  Termination
      of Agreement.
      The
      Parties may terminate this Agreement prior to the Closing, as provided
      below:

     

    
      	(a)  	
              Mutual
                Agreement.
                Parties may terminate this Agreement by written agreement among all
                the
                Parties 

            

    

     

    
      	(b)  	
              By
                Buyer.
                Buyer may terminate this Agreement by giving written notice to Sellers
                and
                ATA in the event:

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	(i)  	
              Either
                Sellers or ATA are in breach of any of their respective representations,
                warranties or covenants contained in this Agreement, and such breach,
                (i)
                would cause the conditions set forth in Sections 5.1 or 5.2 not to
                be
                satisfied and (ii) is not cured within three (3) days following delivery
                by Buyer to Sellers or ATA, as appropriate, with written notice of
                such
                breach; 

            

    

     

    
      	(ii)  	
              The
                Closing shall not have occurred on or before November 18, 2005, (or
                such
                later date to which Buyer and ATA subsequent to the Execution Date
                may
                agree) by reason of the failure of any condition precedent under
                Section
                5.2 (unless the failure results primarily from a breach by Buyer
                of any
                representation, warranty or covenant contained in this Agreement);
                

            

    

     

    
      	(iii)  	
              of
                both the acceptance by Sellers of a Qualifying Bid and issuance of
                a
                Competing Bid Approval Order; 

            

    

     

    
      	(iv)  	
              of
                the failure to obtain the Approval Order on or before November 17,
                2005
                (or
                such later date to which Buyer and ATA subsequent to the Execution
                Date
                may agree);
                or

            

    

     

    
      	(v)  	
              of
                the failure to conduct Closing on or before November 18, 2005,
                (or
                such later date to which Buyer and ATA subsequent to the Execution
                Date
                may agree), through
                no fault of Buyer.

            

    

     

    
      	(c)  	
              By
                Sellers or ATA.
                Sellers or ATA may terminate this Agreement by giving written notice
                to
                Buyer in the event:

            

    

     

    
      	(i)  	
              Buyer
                is in breach of any representation, warranty or covenant contained
                in this
                Agreement, and such breach, (i) would cause the conditions set forth
                in
                clauses (a) or (b) of Section 5.3 not to be satisfied and (ii) is
                not
                cured within three (3) days following delivery by Sellers and ATA
                to Buyer
                of written notice of such breach;

            

    

     

    
      	(ii)  	
              Sellers
                or ATA may terminate this Agreement by giving written notice to Sellers
                and ATA if the Closing shall not have occurred on or before November
                18,
                2005, 2005 (or such later date to which ATA and Buyer shall agree)
                by
                reason of the failure of any condition precedent under Section 5.3
                (unless
                the failure results primarily from a breach by Sellers or ATA of
                any
                representation, warranty or covenant contained in this Agreement);
                

            

    

     

    
      	(iii)  	
              of
                both the acceptance by Sellers of a Qualifying Bid and the issuance
                of a
                Competing Bid Approval Order;

            

    

     

    
      	(iv)  	
              of
                the failure to obtain the Approval Order on or before November 17,
                2005
                (or such later date to which ATA and Buyer shall agree);
                or

            

    

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	(v)  	
              of
                the failure to conduct Closing on or before November 18, 2005,
                (or
                such later date to which Buyer and ATA subsequent to the Execution
                Date
                may agree), through
                no fault of Sellers or ATA.

            

    

     

    8.2.  Effect
      of Termination.
      

     

    
      	(i)  	
              If
                the Parties terminate this Agreement pursuant to Section 8.1(a),
                all
                obligations of the Parties hereunder shall terminate without any
                liability
                of any Party to any other Party (except for any liability of a Party
                for
                breaches of this Agreement) and the Initial Deposit shall be promptly
                refunded to Buyer.

            

    

     

    
      	(ii)  	
              If
                Sellers or ATA terminate this Agreement pursuant to Sections
                8.1(c)(i),(ii) or (iv), all obligations of the parties hereunder
                shall
                terminate without any liability of any Party to any other Party (except
                for any liability of a Party for breaches of this Agreement) and
                the
                Initial Deposit shall be promptly refunded to
                Buyer.

            

    

     

    
      	(iii)  	
              If
                any Party terminates this Agreement pursuant to Sections 8.1(b)(i),
                (iii),
                (iv) or (v), the Initial Deposit shall be promptly refunded to Buyer.
                

            

    

     

    
      	(iv)  	
              If
                this Agreement terminates pursuant to Sections 8.1(b)(iii) or 8.1(c)(iii),
                Sellers shall become obligated to (i) promptly refund to Buyer its
                Initial
                Deposit, and (ii) pay
                Buyer a break-up fee in an amount equal to $150,000 (the "Break-Up
                Fee"),
                unless Buyer is ultimately the Buyer of the Assets, to compensate
                the
                Buyer for its expenses and the substantial time and resources committed
                to
                due diligence in connection with acting as the "stalking horse" for
                this
                transaction. Notwithstanding any of the foregoing, (i) if following
                acceptance of a competing bid Sellers close a sale of the Purchased
                Assets
                to Buyer (as a back up bidder or otherwise), Buyer shall not be entitled
                to payment of the Break Up Fee, and if the Break Up Fee shall have
                been
                paid to Buyer, it shall be refunded at the closing of the sale to
                Buyer.
                No such reimbursement under this Section shall be payable in the
                event of
                a breach by Buyer under this
                Agreement.

            

    

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IX  

     

    

     

    DEFINITIONS

     

    For
      purposes of this Agreement, each of the following terms shall have the meaning
      set forth below.

     

    "Ambassadair
      Office Space"
      shall
      have the meaning ascribed to such term in Section 1.10 of this
      Agreement.

     

    "Ancillary
      Agreements"
      shall
      include the Master Bill of Sale-ATA, Master Bill of Sale - Sellers, and such
      other agreements referred to in this Agreement to be delivered at or after
      Closing.

     

    "Approval
      Order"
      shall
      mean an Order, in form and substance to be agreed upon by the parties prior
      to
      Closing, entered by the Bankruptcy Court in the Chapter 11 Case.

     

    "Assets"
      shall
      mean, collectively, the Purchased Assets and the Purchased ATA
      Equipment.

     

    "Avoidance
      Action(s)"
      shall
      mean means any and all Claims and causes of action which Sellers and ATA may
      assert under the Bankruptcy Code, including any
      and
      all Claims and causes of action arising under Sections 542, 543, 544, 545,
      546,
      547, 548, 549, 550 and 553 of the Bankruptcy Code or under comparable state
      law
      provisions, and Sellers
      and ATA's rights of setoff, recoupment, contribution, reimbursement, subrogation
      or indemnity (as those terms are defined by the non- bankruptcy law of any
      relevant jurisdiction) and any other direct or indirect Claim of any kind
      whatsoever, whenever and wherever arising or asserted.

     

    "Bankruptcy
      Code"
      shall
      mean 11 U.S.C. §§ 101 et seq.

     

    "Bankruptcy
      Court"
      shall
      mean the United States Bankruptcy Court for the Southern District of
      Indiana.

     

    "Break-Up
      Fee"
      shall
      have the meaning set forth in Section 8.2(iv).

     

    "Businesses"
      shall
      mean (i) as respects Ambassadair, its business of serving as a travel club
      and a
      tour club operator, and (ii) as respects Amber Travel, its business of serving
      as a travel agency.

     

    "Buyer"
      shall
      have the meaning set forth in the first paragraph of this
      Agreement.

     

    "Chapter
      11 Case"
      shall
      mean the Chapter 11 bankruptcy case filed by Sellers and ATA and pending in
      the
      Bankruptcy Court, and administratively consolidated as Case No.
      04-19866.

     

    "Closing"
      shall
      mean the closing of the Transactions.

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    "Closing
      Date"
      shall
      have the meaning described in Section 1.5(a) of this Agreement.

     

    "Competing
      Bid Acceptance Order"
      shall
      mean an order approving the sale Transactions pursuant to 11 USC §§ 363(b) and
      (f) and § 365, which is issued by the Bankruptcy Court with respect to a bidder
      (other than Buyer or any of its affiliates or shareholders) competitive with
      Buyer.

     

    "Contracted
      Trips"
      shall
      mean, collectively, those trips identified on Exhibit "A" to this Agreement
      as
      originating at any time during the period from and after January 1, 2006, and
      March 31, 2006, and for which Ambassadair has sold participation to one or
      more
      of its members or another purchaser and which Ambassadair has determined should
      not be cancelled prior to the Closing.

     

    "Customer
      Accounts Receivable"
      shall
      mean, collectively, all amounts owing to either of Sellers for the purchase
      of
      participation in any Contracted Trip.

     

    "Excluded
      Assets"
      shall
      mean, collectively, the following assets and properties of Sellers and ATA,
      all
      of which shall be excluded from the Purchased Assets and the Purchased ATA
      Equipment: (i)
      all
      Customer Accounts Receivable and other accounts receivable of each of Sellers
      and ATA, all Prepaid Expenses and Other Deposits, and all Avoidance Actions
      of
      either of Sellers or ATA or any rights, defenses, cross claims or counterclaims
      with respect to any Avoidance Actions; (ii) any pension plan, profit sharing
      plan, or other plan or program providing benefits to current or former employees
      of Sellers; (iii) all unrestricted cash and Restricted Cash, including cash
      equivalents and marketable securities, and all rights to any tax refund not
      yet
      received by either of Sellers, ATA or Holdings; (iv) insurance and workers’
      compensation premium refunds and tax refunds, whether or not applied for and
      any
      claims under insurance policies; (v) copies of all business and financial
      records and other information (including computer files), relating to the
      conduct of the Businesses prior to the Closing Date, the originals of which
      will
      be conveyed to Buyer, provided that Buyer shall acquire, and Holdings and
      Sellers shall not retain or obtain copies of customer lists, prospect lists,
      marketing materials, budgets, strategic plans and related information which
      may
      provide Buyer with a competitive advantage in the Businesses to be conducted
      after the Closing Date; (vi) the Net Tax Assets and the Net Intercompany
      Receivable as such terms are used in the July Consolidated Balance Sheet
      previously delivered to Buyer; (vii) any claims against Buyer for breach of
      this
      Agreement or any Ancillary Agreement; (viii) the Two Hundred Thousand and 00/100
      Dollar ($200,000.00) deposit made with TransMeridian Airlines, Inc. and all
      claims of any sort held by any of Sellers or ATA against TransMeridian Airlines,
      Inc.; (ix) any software or other intellectual property which is licensed to
      Sellers and is not assignable without consent of licensor, and which consent
      is
      not obtained within thirty (30) days after Closing; (xi) all claims and causes
      of action against directors, officers, shareholders, employees or Insiders
      (as
      that term is defined in Section 101(31) of the Bankruptcy Code) of the Sellers,
      ATA, Holdings or any other subsidiaries of Holdings, including ATA; (xi)
      corporate books and records; (xii) the
      $200,000 surety bond deposit made by ATA and/or Ambassadair with National City
      Bank under a Public Charter Operator Surety Trust Agreement, dated effective
      as
      of December 15, 2003, and all other deposits and prepayments or prepaid expenses
      of any sort of Ambassadair or Amber Travel;
      (xii)
      all causes of action, rights of action or recovery and counterclaims and set
      offs rights of any sort; (xiii) all telephone numbers; and (xiv) any other
      property of Sellers not specifically identified in the definition of "Purchased
      Assets".

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    "Execution
      Date"
      shall
      mean the date of this Agreement.

     

    "Governmental
      Authority"
      shall
      mean any court, arbitrational tribunal, administrative agency or commission
      or
      other governmental or regulatory authority or agency.

     

    "Holdings"
      shall
      mean ATA Holdings Corp., an Indiana corporation.

     

    "Initial
      Deposit"
      shall
      mean the sum of One Hundred Thousand Dollars ($100,000) paid by Buyer for the
      account of Sellers and held in the Baker & Daniels Trust Account in
      accordance with Sections 1.3(a) hereof.

     

    "Letter
      Agreement"
      shall
      have the meaning set forth in Section 1.3(a) hereof.

     

    "Master
      Bill of Sale - ATA"
      shall
      mean a bill of sale in form and substance to be agreed upon by ATA and Buyer
      prior to Closing which transfers ownership of the Purchased ATA Equipment to
      Buyer.

     

    "Master
      Bill of Sale - Sellers"
      shall
      mean a bill of sale in form and substance to be agreed upon by Sellers and
      Buyer
      prior to Closing which transfers ownership of the Purchased Assets to
      Buyer.

     

    "Material
      Contract"
      shall
      mean a contract involving goods or services for which Sellers are obligated
      to
      pay more than five Thousand Dollars ($5,000), but not including any contracts
      for the sale of travel or tours made in the ordinary course of business or
      any
      at will employment of an employee to fill an open employment position in the
      ordinary course of business. 

     

    "Parties"
      shall
      mean Buyer, Sellers and ATA. 

     

    "Person"
      shall
      mean and include an individual, partnership, association, joint venture,
      corporation, limited liability company, limited liability partnership, trust,
      trustee, any other entity or organization and any governmental
      entity.

     

    "Prepaid
      Expenses and Other Deposits"
      shall
      mean, collectively, all prepayments, advances and deposits made by either of
      Sellers or ATA, made or funded in advance of the origination of any Remaining
      2005 Trip or any Contracted Trip, with any contracted provider of air, ground
      or
      water transportation, lodging, food or meal services, entertainment, ground
      handling services or other services which are to be provided as a part of that
      Remaining 2005 Trip or Contracted Trip

     

    "Purchased
      Assets"
      shall
      mean, collectively, all of the following assets of each of Sellers, as existing
      on the Execution Date, but excluding for all purposes the Excluded Assets:
      

     

    (i)  All
      trademarks, trade names and service marks and infringement claims relating
      to
      same) owned by the Sellers and the exclusive right to use the name
      "Ambassadair," "Ambassadair Travel Club," provided, that r than each of Sellers
      may continue to use its corporate name so long as they are in Chapter
      11;

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (ii)  Subject
      to being assumed by Buyer pursuant to Paragraph 1.10 hereof, all rights of
      Sellers under all Contracts which Buyer elects to assume, including ARC and
      IATAN appointments;

     

    (iii)  All
      customer lists of each of Sellers, including lists of all past, present and
      prospective customers of each of Sellers and all members of Ambassadair, sales
      and marketing materials, including artwork and collateral materials, mailing
      lists, marketing lists, prospect lists, employee lists, and related information;
      

     

    (iv)  All
      software and intellectual property owned exclusively by either of Sellers and
      any
      software or other intellectual property which is licensed to Sellers and is
      assignable without consent of licensor, or with consent and for which consent
      to
      assign to Buyer is obtained within thirty (30) days after Closing;
      and

     

    (v)  All
      pre-printed, unused paper supplies and other items having the Ambassadair or
      Amber names, whether owned by Sellers or ATA

     

    "Purchase
      Price"
      shall
      have the meaning set forth in Section 1.3 of this Agreement. 

     

    "Purchased
      ATA Equipment"
      shall
      mean those certain assets described on Schedule 2.4(ii) to this
      Agreement..

     

    "Qualifying
      Bid"
      shall
      mean a competing bid meeting the requirements of the Sale Procedures Order
      (any,
      a "Qualifying Bid", and all, "Qualifying Bids"). 

     

    "Reasonable
      Best Efforts"
      shall
      mean best efforts, to the extent commercially reasonable.

     

    "Remaining
      2005 Trips"
      shall
      mean,
      collectively, those trips identified on Exhibit "A" to this Agreement as
      originating prior to January 1, 2006.

     

    "Restricted
      Cash"
      shall
      mean, collectively, all restricted cash of either of Sellers and funded by
      customers for the purchase of Remaining 2005 Trips or Contracted Trips,
      including escrowed funds and credit card hold backs for purchases of Contracted
      Trips made by a consumer with a credit card.

     

    "Sale
      Order"
      shall
      mean that certain Order entered by the Bankruptcy Court on ___________, 2005,
      in
      Case No. 04-19866.

     

    "Seller
      Material Adverse Effect"
      shall
      mean any material adverse change, event, circumstance or development with
      respect to, or material adverse effect on, Buyer’s title, possession, use or
      enjoyment of the Assets after Closing.

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    "Subsidiary"
      shall
      mean any corporation, partnership, trust, limited liability company or other
      non-corporate business enterprise in which Sellers and ATA (or another
      Subsidiary) holds stock or other ownership interests representing (a) more
      than
      50% of the voting power of all outstanding stock or ownership interests of
      such
      entity or (b) the right to receive more than 50% of the net assets of such
      entity available for distribution to the holders of outstanding stock or
      ownership interests upon a liquidation or dissolution of such
      entity.

     

    "Supplemental
      Payment"
      shall
      have the meaning ascribed to such term in Section 1.3(b) of this
      Agreement.

     

    "Tax
      Returns"
      shall
      mean all reports, returns, declarations, statements or other information
      required to be supplied to a taxing authority in connection with
      Taxes.

     

    "Transactions"
      shall
      mean the transactions contemplated by this Agreement. and any Ancillary
      Agreement.

     

    "Underfunded
      Trip"
      shall
      have the meaning ascribed to such term in Section 1.4(b) of this
      Agreement.

     

    ARTICLE
      X  

     

    

     

    MISCELLANEOUS

     

    10.1.  No
      Third Party Beneficiaries.
      This
      Agreement shall not confer any rights or remedies upon any person other than
      the
      Parties and their respective successors and permitted assigns.

     

    10.2.  Entire
      Agreement.
      This
      Agreement (including the documents referred to herein) constitutes the entire
      agreement between the Parties and supersedes any prior understandings,
      agreements, or representations by or between the Parties, written or oral,
      with
      respect to the subject matter hereof.

     

    10.3.  Succession
      and Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties named
      herein and their respective successors and permitted assigns. Neither Party
      may
      assign either this Agreement or any of its rights, interests, or obligations
      hereunder without the prior written approval of the other Party.

     

    10.4.  Counterparts
      and Facsimile Signature.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which together shall constitute one and the same
      instrument. This Agreement may be executed by facsimile signature.

     

    10.5.  Headings.
      The
      section headings contained in this Agreement are inserted for convenience only
      and shall not affect in any way the meaning or interpretation of this
      Agreement.

     

    10.6.  Notices.
      All
      notices, requests, demands, claims, and other communications hereunder shall
      be
      in writing. Any notice, request, demand, claim, or other communication hereunder
      shall be deemed duly delivered four business days after it is sent by registered
      or certified mail, return receipt requested, postage prepaid, or one business
      day after it is sent for next business day delivery via a reputable nationwide
      overnight courier service, in each case to the intended recipient as set forth
      below: 

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	
              If
                to Sellers and ATA:

               

              ATA
                Airlines, Inc., Ambassadair Travel Club

              and
                Amber Travel

              7337
                West Washington Street

              Indianapolis,
                Indiana 46251-0609

              Attention:
                Chief Executive Officer

              Facsimile:
                317-282-7091

            	
              Copy
                to:
                (which shall not constitute notice)

               

              Baker
                & Daniels, LLP

              300
                North Meridian Street, Suite 2700

              Indianapolis,
                Indiana 46204

              Attention:
                Mr. Stephen A. Claffey, Esq.

              Facsimile:
                (317) 237-8234

              Email:
                steve.claffey@bakerd.com

            
	
              If
                to Buyer:

               

              Grueninger
                Cruises and Tours Inc.

              Meridian
                Tower

              201
                West 103rd Street, Suite 380

              Indianapolis,
                IN 46290

              Attention: Mike
                Grueninger

              Facsimile:
                (317) 479-1000

              Email:
                mike@grueningertours.com

            	
              Copy
                to:
                (which shall not constitute notice)

               

              Dann
                Pecar Newman & Kleiman, P.C.

              2300
                OneAmerica® Tower 

              Box
                82008

              Indianapolis,
                IN 46282 

              Attention:
                David H. Kleiman

              Facsimile:
                (317) 632-2962

              Email:
                dkleiman@dannpecar.com

            

    

    Any
      Party
      may give any notice, request, demand, claim, or other communication hereunder
      using any other means (including personal delivery, expedited courier, messenger
      service, telecopy, telex, ordinary mail, or electronic mail), but no such
      notice, request, demand, claim, or other communication shall be deemed to have
      been duly given unless and until it actually is received by the party for whom
      it is intended. Any Party may change the address to which notices, requests,
      demands, claims, and other communications hereunder are to be delivered by
      giving the other Parties notice in the manner herein set forth.

     

    10.7.  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of Indiana, without giving effect to any choice or conflict
      of
      law provision or rule (whether of the State of Indiana or any other
      jurisdiction) that would cause the application of laws of any jurisdictions
      other than those of the State of Indiana.

     

    10.8.  Amendments
      and Waivers.
      The
      Parties may mutually amend any provision of this Agreement at any time prior
      to
      the Closing. No amendment of any provision of this Agreement shall be valid
      unless the same shall be in writing and signed by each of the Parties. No waiver
      by either Party of any right or remedy hereunder shall be valid unless the
      same
      shall be in writing and signed by the Party giving such waiver. No waiver by
      either Party with respect to any default, misrepresentation, or breach of
      warranty or covenant hereunder shall be deemed to extend to any prior or
      subsequent default, misrepresentation, or breach of warranty or covenant
      hereunder or affect in any way any rights arising by virtue of any prior or
      subsequent such occurrence.

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    10.9.  Severability.
      Any term
      or provision of this Agreement that is invalid or unenforceable in any situation
      in any jurisdiction shall not affect the validity or enforceability of the
      remaining terms and provisions hereof or the validity or enforceability of
      the
      offending term or provision in any other situation or in any other jurisdiction.
      If the final judgment of a court of competent jurisdiction declares that any
      term or provision hereof is invalid or unenforceable, the Parties agree that
      the
      court making the determination of invalidity or unenforceability shall have
      the
      power to limit the term or provision, to delete specific words or phrases,
      or to
      replace any invalid or unenforceable term or provision with a term or provision
      that is valid and enforceable and that comes closest to expressing the intention
      of the invalid or unenforceable term or provision, and this Agreement shall
      be
      enforceable as so modified.

     

    10.10.  Expenses.
      Each
      Party shall bear its own costs and expenses (including legal fees and expenses)
      incurred in connection with this Agreement and the transactions contemplated
      hereby and its performance of its obligations pursuant to this Agreement. Buyer
      agrees to indemnify and hold harmless Sellers and ATA against any liability,
      claim, loss, damage or expense incurred by Buyer relating to any fees or
      commissions owed to any broker, finder or financial advisor as a result of
      the
      Closing of the Transactions.

     

    10.11.  Submission
      to Jurisdiction.
      So long
      as Sellers and/or ATA are subject to the jurisdiction of the Bankruptcy Court,
      the Bankruptcy Court shall have jurisdiction of all disputes arising under
      this
      Agreement. Thereafter, each Party (a) submits to the jurisdiction of any state
      or federal court sitting in Indiana in any action or proceeding arising out
      of
      or relating to this Agreement or the Ancillary Agreements, (b) agrees that
      all
      claims in respect of such action or proceeding may be heard and determined
      in
      any such court, (c) waives any claim of inconvenient forum or other challenge
      to
      venue in such court, (d) agrees not to bring any action or proceeding arising
      out of or relating to this Agreement or the Ancillary Agreements in any other
      court, and (e) waives any right it may have to a trial by jury with respect
      to
      any action or proceeding arising out of or relating to this Agreement or the
      Ancillary Agreements. Each party agrees to accept service of any summons,
      complaint or other initial pleading made in the manner provided for the giving
      of notices in Section 10.6 of this Agreement, provided that nothing in this
      Section 10.11 shall affect the right of any Party to serve such summons,
      complaint or other initial pleading in any other manner permitted by
      law.

     

    10.12.  Specific
      Performance.
      Each
      Party acknowledges and agrees that the other Parties will be damaged irreparably
      in the event any of the provisions of this Agreement are not performed in
      accordance with their specific terms or otherwise are breached. Accordingly,
      each Party agrees that the other Parties shall be entitled to an injunction
      or
      other equitable relief to prevent breaches of the provisions of this Agreement
      and to enforce specifically this Agreement and the terms and provisions hereof
      in any action instituted in any court of the United States or any state thereof
      having jurisdiction over the Parties and the matter, in addition to any other
      remedy to which it may be entitled, at law or in equity. 

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    10.13.  Construction.

     

    
      	(a)  	
              The
                language used in this Agreement shall be deemed to be the language
                chosen
                by the Parties to express their mutual intent, and no rule of strict
                construction shall be applied against any
                Party.

            

    

     

    
      	(b)  	
              Any
                reference to any federal, state, local, or foreign statute or law
                shall be
                deemed also to refer to all rules and regulations promulgated thereunder,
                unless the context requires
                otherwise.

            

    

     

    
      	(c)  	
              Any
                reference herein to "including" shall be interpreted as "including
                without
                limitation".

            

    

     

    
      	(d)  	
              Any
                reference to any Article, Section or paragraph shall be deemed to
                refer to
                an Article, Section or paragraph of this Agreement, unless the context
                clearly indicates otherwise.

            

    

     

    10.14.  Confidentiality.
      None of
      the Parties to this Agreement shall make, or cause to be made, any press release
      or public announcement in respect of this Agreement or the Transactions
      contemplated hereby or otherwise communicate with the news media without the
      prior written consent of the other parties, except as may otherwise be required
      by applicable law or regulation or by any authorized administrative agency
      and
      as are required pursuant to the Bankruptcy Code and applicable bankruptcy
      regulations to obtain the Approval Order and any amendment to the existing
      order
      respecting the procedures to be followed with respect to this sale.

     

    
      
        
           

          

        

        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Parties have executed this Agreement as of Execution
      Date.

     

    

    Ambassadair
      Travel Club, Inc.

    

    
      By:
        /s/
        Sean Frick 

      Its:
        VP
& CRO      

    

    

    Amber
      Travel, Inc.

    

    By:
      /s/
      Sean Frick      

    Its:
      VP
& CRO      

        (Collectively
      "Sellers")

    

    ATA
      Airlines, Inc.

    

     
      
      By:
        /s/
        Sean Frick      

      Its:
        VP
& CRO 

       

          ("ATA")

    

    

    Grueninger
      Cruises and Tours Inc.

    

    By:
      /s/
      Mike Grueninger       

    Its: President     

        ("Buyer")

    

    
       

      
        
          
          

        

        
          24__________________________________________________________________

 

UNDER ARMOUR, INC.

 

2005 OMNIBUS LONG-TERM INCENTIVE PLAN

__________________________________________________________________

 

 

 

	
             
 	
             
 	
             
 

 

 

 

 

TABLE OF CONTENTS

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	 Page  
	  
	 1.  	  	 PURPOSE  	  	  	  	 1  
	 2.  	  	 DEFINITIONS  	  	  	  	 1  
	 3.  	  	 ADMINISTRATION OF THE PLAN  	  	 5  
	  	  	 3.1.  	 General  	  	 5  
	  	  	 3.2.  	 Deferral Arrangement  	  	 6  
	  	  	 3.3.  	 No Liability  	  	 6  
	  	  	 3.4.  	 Book Entry  	  	 6  
	 4.  	  	 STOCK SUBJECT TO THE PLAN  	  	 6  
	 5.  	  	 EFFECTIVE DATE, DURATION AND AMENDMENTS  	  	 7  
	  	  	 5.1.  	 Term  	  	  	  	 7  
	  	  	 5.2.  	 Amendment and Termination of the Plan  	  	 7  
	 6.  	  	 AWARD ELIGIBILITY AND LIMITATIONS  	  	 7  
	  	  	 6.1.  	 Service Providers and Other Persons  	  	 7  
	  	  	 6.2.  	 Successive Awards  	  	 8  
	  	  	 6.3.  	 Stand-Alone, Additional, Tandem, and Substitute Awards  	  	 8  
	 7.  	  	 AWARD AGREEMENT  	  	 8  
	 8.  	  	 TERMS AND CONDITIONS OF OPTIONS  	  	 9  
	  	  	 8.1.  	 Option Price  	  	 9  
	  	  	 8.2.  	 Vesting  	  	 9  
	  	  	 8.3.  	 Term  	  	  	  	 9  
	  	  	 8.4.  	 Termination of Service  	  	 9  
	  	  	 8.5.  	 Limitations on Exercise of Option  	  	 9  
	  	  	 8.6.  	 Method of Exercise  	  	 10  
	  	  	 8.7.  	 Rights of Holders of Options  	  	 10  
	  	  	 8.8.  	 Delivery of Stock Certificates  	  	 10  
	  	  	 8.9.  	 Transferability of Options  	  	 10  
	  	  	 8.10.  	 Family Transfers  	  	 10  
	  	  	 8.11.  	 Limitations on Incentive Stock Options  	  	 11  
	 9.  	  	 TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS  	  	 11  
	  	  	 9.1.  	 Right to Payment  	  	 11  
	  	  	 9.2.  	 Other Terms  	  	 11  
	 10.  	  	 TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK  	  	  
	  	  	 UNITS  	  	  	  	 12  
	  	  	 10.1.  	 Restrictions  	  	 12  
	  	  	 10.2.  	 Restricted Stock Certificates  	  	 12  
	  	  	 10.3.  	 Rights of Holders of Restricted Stock  	  	 12  
	  	  	 10.4.  	 Rights of Holders of Restricted Stock Units  	  	 12  
	  	  	  	 10.4.1.    Voting and Dividend Rights     	  	 12  
	  	  	  	 10.4.2.     Creditor’s Rights  	  	 13  
	  	  	 10.5.  	 Termination of Service  	  	 13  
	  	  	 10.6.  	 Purchase of Restricted Stock  	  	 13  
	  	  	 10.7.  	 Delivery of Stock  	  	 13  
	  	  	  	  	  	  	  	  

 

	 

 

	
             
 	
            i
 	
             
 

 

 

	 11.  	  	 TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS  	  	 13  
	 12.  	  	 FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK  	  	 14  
	  	  	 12.1.  	 General Rule  	  	 14  
	  	  	 12.2.  	 Surrender of Stock  	  	 14  
	  	  	 12.3.  	 Cashless Exercise  	  	 14  
	  	  	 12.4.  	 Other Forms of Payment  	  	 14  
	 13.  	  	 TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS  	  	 15  
	  	  	 13.1.  	 Dividend Equivalent Rights  	  	 15  
	  	  	 13.2.  	 Termination of Service  	  	 15  
	 14.  	  	 TERMS AND CONDITIONS OF PERFORMANCE AND ANNUAL  	  	  
	  	  	 INCENTIVE AWARDS  	  	 15  
	  	  	 14.1.  	 Performance Conditions  	  	 15  
	  	  	 14.2.  	 Performance or Annual Incentive Awards Granted to  	  	  
	  	  	  	 Designated Covered Employees  	  	 16  
	  	  	  	 14.2.1.        Performance Goals Generally  	  	 16  
	  	  	  	 14.2.2.       Business Criteria  	  	 16  
	  	  	  	 14.2.3.        Timing for Establishing Performance Goals  	  	 16  
	  	  	  	 14.2.4.        Settlement of Performance or Annual Incentive  Awards; Other Terms	  	  
	  	  	 14.3.  	 Written Determinations  	  	 17  
	  	  	 14.4.  	 Status of Section 14.2 Awards Under Code Section 162(m)  	  	 17  
	 15.  	  	 REQUIREMENTS OF LAW  	  	 17  
	  	  	 15.1.  	 General.  	  	 17  
	  	  	 15.2.  	 Rule 16b-3  	  	 18  
	 16.  	  	 EFFECT OF CHANGES IN CAPITALIZATION  	  	 19  
	  	  	 16.1.  	 Changes in Stock  	  	 19  
	  	  	 16.2.  	 Definition of Change in Control  	  	 19  
	  	  	 16.3.  	 Effect of Change of Change in Control  	  	 20  
	  	  	 16.4.  	 Reorganization Which Does Not Constitute a Change in  	  	  
	  	  	  	 Control  	  	  	  	 20  
	  	  	 16.5.  	 Adjustments  	  	 21  
	  	  	 16.6.  	 No Limitations on Company  	  	 21  
	 17.  	  	 GENERAL PROVISIONS  	  	 21  
	  	  	 17.1.  	 Disclaimer of Rights  	  	 21  
	  	  	 17.2.  	 Nonexclusivity of the Plan  	  	 21  
	  	  	 17.3.  	 Withholding Taxes  	  	 22  
	  	  	 17.4.  	 Captions  	  	 22  
	  	  	 17.5.  	 Other Provisions  	  	 22  
	  	  	 17.6.  	 Number and Gender  	  	 22  
	  	  	 17.7.  	 Severability  	  	 22  
	  	  	 17.8.  	 Governing Law  	  	 23  
	  	  	 17.9.  	 Section 409A  	  	 23  
	  	  	  	 17.9.1. Short-Term Deferrals  	  	 23  
	  	  	  	 17.9.2. Adjustments  	  	 23  
	  
	  	  	  	  	  	  	  	  

 

 

 

 

	
             
 	
            ii
 	
             
 

 

 

 

 

UNDER ARMOUR, INC.

 

2005 OMNIBUS LONG-TERM INCENTIVE PLAN

 

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

	
            1.
 	
            PURPOSE
 

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

	
            2.
 	
            DEFINITIONS
 

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

 

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

 

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

 

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

 

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

 

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

 

2.6       “Cause” means, as determined by the Board and unless otherwise provided in an applicable agreement with the Company or an Affiliate at or before the 

 

 

	
             
 	
             
 	
             
 

 

 

 

Grant Date, (i) gross negligence or willful misconduct in connection with the performance of duties; (ii) conviction of a criminal offense (other than minor traffic offenses); or (iii) material breach of any term of any employment, consulting or other services, confidentiality, intellectual property or non-competition agreements, if any, between the Service Provider and the Company or an Affiliate.

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

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

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

2.10       “Company” means Under Armour, Inc.

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

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

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

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

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

2.16    “Fair Market Value” means the value of a share of Stock, determined as follows:  if on the Grant Date the Stock is listed on an established national or regional stock exchange, is admitted to quotation on The Nasdaq Stock Market, Inc. or is publicly traded on an established securities market, the Fair Market Value of a share of Stock shall be the closing price of the Stock on such exchange or in such market (if there is more than one such exchange or market the Committee shall determine the appropriate exchange or market) on the Grant Date or (or if there is no such reported closing price, the Fair Market Value shall be the mean between the highest bid and 

 

 

	
             
 	
            2
 	
             
 

 

 

 

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

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

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

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

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

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

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

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

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

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

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

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

 

 

	
             
 	
            3
 	
             
 

 

 

 

 

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

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

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

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

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

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

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

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

 

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

 

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

 

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

 

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

 

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

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

 

 

	
             
 	
            4
 	
             
 

 

 

 

 

	
            3.
 	
            ADMINISTRATION OF THE PLAN
 

	
             
  	
            3.1.
 	
            General.
 

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

 

(i)        designate Grantees,

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

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

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

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

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

Notwithstanding the foregoing, no amendment or modification may be made to an outstanding Option or SAR that (i) that causes the Option or SAR to become subject to Section 409A, (ii) reduces the Option Price or SAR Exercise Price, either by lowering the Option Price or SAR Exercise Price or by canceling the outstanding Option or SAR and granting a replacement Option or SAR with a lower Option Price or SAR Exercise Price or (iii) would be treated as a repricing under the rules of The Nasdaq Stock Market, Inc. or the otherwise applicable stock exchange without the approval of the stockholders of the Company, provided, that, appropriate adjustments may be made to outstanding Options and SARs pursuant to Section 16. 

The Company may retain the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee on account of actions taken by the Grantee in violation or breach of or in conflict with any employment agreement, non-competition agreement, any agreement prohibiting solicitation of employees or clients of the 

 

 

	
             
 	
            5
 	
             
 

 

 

 

Company or any Affiliate thereof or any confidentiality obligation with respect to the Company or any Affiliate thereof or otherwise in competition with the Company or any Affiliate thereof, to the extent specified in such Award Agreement applicable to the Grantee.  Furthermore, the Company may annul an Award if the Grantee is an employee of the Company or an Affiliate thereof and is terminated for Cause as defined in the applicable Award Agreement or the Plan, as applicable. The grant of any Award shall be contingent upon the Grantee executing the appropriate Award Agreement.

	
             
  	
            3.2.
 	
            Deferral Arrangement.  
 

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

	
             
  	
            3.3.
 	
            No Liability.
 

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

 

	
             
  	
            3.4.
 	
            Book Entry.
 

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

	
            4.
 	
            STOCK SUBJECT TO THE PLAN
 

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

 

The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or substitute awards) and make adjustments in accordance with this Section 4.  If the Option Price of any Option granted under the Plan, or if pursuant to Section 17.3 the withholding obligation of any Grantee with respect to an Option or other Award, is satisfied by tendering shares of Stock to the Company (by either actual delivery or by attestation) or by withholding shares of Stock, the number of shares of Stock issued net of the shares of Stock tendered or withheld shall be deemed delivered for purposes of determining the maximum number of shares of Stock available for delivery under the Plan.  To the 

 

	
             
 	
            6
 	
             
 

 

 

 

extent that an Award under the Plan is canceled, expired, forfeited, settled in cash, settled by issuance of fewer shares than the number underlying the Award, or otherwise terminated without delivery of shares to the Grantee, the shares retained by or returned to the Company will be available under the Plan; and shares that are withheld from such an Award or separately surrendered by the Grantee in payment of any exercise price or taxes relating to such an Award shall be deemed to constitute shares not delivered to the Grantee and will be available under the Plan.  In addition, in the case of any Award granted in assumption of or in substitution for an award of a company or business acquired by the Company or a subsidiary or affiliate or with which the Company or a subsidiary or affiliate combines, shares issued or issuable in connection with such substitute Award shall not be counted against the number of shares reserved under the Plan.

	
            5.
 	
            EFFECTIVE DATE, DURATION AND AMENDMENTS
 

	
             
  	
            5.1.
 	
            Term.  
 

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

	
             
  	
            5.2.
 	
            Amendment and Termination of the Plan.
 

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

 

	
            6.
 	
            AWARD ELIGIBILITY AND LIMITATIONS
 

	
             
  	
            6.1.
 	
            Service Providers and Other Persons.
 

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

 

 

	
             
 	
            7
 	
             
 

 

 

 

 

	
             
  	
            6.2.
 	
            Successive Awards.  
 

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

 

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

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

	
            7.
 	
            AWARD AGREEMENT
 

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

	
            8.
 	
            TERMS AND CONDITIONS OF OPTIONS
 

	
             
  	
            8.1.
 	
            Option Price.
 

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

 

 

	
             
 	
            8
 	
             
 

 

 

 

 

	
             
  	
            8.2.
 	
            Vesting.
 

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

	
             
  	
            8.3.
 	
            Term.  
 

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

	
             
  	
            8.4.
 	
            Termination of Service.  
 

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

	
             
  	
            8.5.
 	
            Limitations on Exercise of Option.  
 

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

	
             
  	
            8.6.
 	
            Method of Exercise.  
 

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

 

 

	
             
 	
            9
 	
             
 

 

 

 

 

	
             
  	
            8.7.
 	
            Rights of Holders of Options.
 

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

	
             
  	
            8.8.
 	
            Delivery of Stock Certificates.  
 

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

	
             
  	
            8.9.
 	
            Transferability of Options.
 

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

	
             
  	
            8.10.
 	
            Family Transfers.  
 

If authorized in the applicable Award Agreement, a Grantee may transfer, not for value, all or part of an Option which is not an Incentive Stock Option to any Family Member.  For the purpose of this Section 8.10, a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity.  Following a transfer under this Section 8.10, any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer.  Subsequent transfers of transferred Options are prohibited except to Family Members of the original Grantee in accordance with this Section 8.10 or by will or
the laws of descent and distribution.  Notwithstanding the foregoing, the Committee may also provide that Options may be transferred to persons other than Family Members.  The events of termination of Service of Section 8.4 hereof shall continue to be applied with respect to the original Grantee, following which the Option shall be exercisable by the transferee only to the extent, and for the periods specified, in Section 8.4. 

	
             
  	
            8.11.
 	
            Limitations on Incentive Stock Options.  
 

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

 

	
             
 	
            10
 	
             
 

 

 

 

$100,000.  This limitation shall be applied by taking Options into account in the order in which they were granted.

	
            9.
 	
            TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS
 

	
             
  	
            9.1.
 	
            Right to Payment.  
 

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

	
             
  	
            9.2.
 	
            Other Terms.  
 

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

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

	
             
  	
            10.1.
 	
            Restrictions.  
 

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

 

 

	
             
 	
            11
 	
             
 

 

 

 

 

	
             
  	
            10.2.
 	
            Restricted Stock Certificates.  
 

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

	
             
  	
            10.3.
 	
            Rights of Holders of Restricted Stock.  
 

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

	
             
  	
            10.4.
 	
            Rights of Holders of Restricted Stock Units.  
 

	
             
  	
            10.4.1.
 	
            Settlement of Restricted Stock Units.
 

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

 

	
             
  	
            10.4.2.
 	
            Voting and Dividend Rights.
 

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

 

	
             
  	
            10.4.3.
 	
            Creditor’s Rights.
 

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

 

 

	
             
 	
            12
 	
             
 

 

 

 

 

	
             
  	
            10.5.
 	
            Termination of Service.  
 

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

	
             
  	
            10.6.
 	
            Purchase of Restricted Stock.
 

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

	
             
  	
            10.7.
 	
            Delivery of Stock.  
 

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

	
            11.
 	
            TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS
 

The Committee may, in its sole discretion, grant (or sell at par value or such other higher purchase price determined by the Committee) an Award of Unrestricted Stock to any Grantee pursuant to which such Grantee may receive shares of Stock free of any restrictions (“Unrestricted Stock”) under the Plan.  Awards of Unrestricted Stock may be granted or sold as described in the preceding sentence in respect of past Services rendered and other valid consideration, or in lieu of, or in addition to, any cash compensation due to such Grantee.  Unless otherwise provided by the Committee, Awards of Unrestricted Stock shall be paid within the time period specified in Section 17.9.1 for short-term deferrals.

	
            12.
 	
            FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK
 

	
             
  	
            12.1.
 	
            General Rule.
 

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

 

 

	
             
 	
            13
 	
             
 

 

 

 

 

	
             
  	
            12.2.
 	
            Surrender of Stock.
 

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

	
             
  	
            12.3.
 	
            Cashless Exercise.
 

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

	
             
  	
            12.4.
 	
            Other Forms of Payment.
 

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

	
            13.
 	
            TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS
 

	
             
  	
            13.1.
 	
            Dividend Equivalent Rights.
 

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

 

	
             
 	
            14
 	
             
 

 

 

 

same conditions as such other award.  A Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from such other award.

	
             
  	
            13.2.
 	
            Termination of Service.
 

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

	
            14.
 	
            TERMS AND CONDITIONS OF PERFORMANCE AND ANNUAL INCENTIVE AWARDS
 

	
             
  	
            14.1.
 	
            Performance Conditions.
 

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

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

If and to the extent that the Committee determines that a Performance or Annual Incentive Award to be granted to a Grantee who is designated by the Committee as likely to be a Covered Employee should qualify as “performance-based compensation” for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Performance or Annual Incentive Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 14.2.

	
             
  	
            14.2.1.
 	
            Performance Goals Generally.
 

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

 

	
             
 	
            15
 	
             
 

 

 

 

grant, exercise and/or settlement of such Performance or Annual Incentive Awards.  Performance goals may differ for Performance or Annual Incentive Awards granted to any one Grantee or to different Grantees.

 

	
             
  	
            14.2.2.
 	
            Business Criteria.  
 

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

 

	
             
  	
            14.2.3.
 	
            Timing for Establishing Performance Goals.  
 

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

 

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

Settlement of such Performance or Annual Incentive Awards shall be in cash, Stock, other Awards or other property, in the discretion of the Committee.  The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Performance or Annual Incentive Awards.  The Committee shall specify the circumstances in which such Performance or Annual Incentive Awards shall be paid or forfeited in the event of termination of Service by the Grantee prior to the end of a performance period or settlement of Performance Awards.

	
             
  	
            14.3.
 	
            Written Determinations.
 

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

 

 

	
             
 	
            16
 	
             
 

 

 

 

 

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

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

	
            15.
 	
            REQUIREMENTS OF LAW
 

	
             
  	
            15.1.
 	
            General.
 

The Company shall not be required to sell or issue any shares of Stock under any Award if the sale or issuance of such shares would constitute a violation by the Grantee, any other individual exercising an Option, or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or regulations.  If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares  subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance or purchase of shares hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual exercising an Option pursuant to such Award unless such listing, registration, qualification, consent or approval shall
have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award.  Specifically, in connection with the Securities Act, upon the exercise of any Option or the delivery of any shares of Stock underlying an Award, unless a registration statement under such Act is in effect with respect to the shares of Stock covered by such Award, the Company shall not be required to sell or issue such shares unless the Committee has received evidence satisfactory to it that the Grantee or any other individual exercising an Option may acquire such shares pursuant to an exemption from registration under the Securities Act.  Any determination in this connection by the Committee shall be final, binding, and conclusive.  The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act.  The Company shall not be obligated to take any
affirmative action in order to cause the exercise of an Option or the issuance of shares of Stock pursuant to the Plan to 

 

	
             
 	
            17
 	
             
 

 

 

 

comply with any law or regulation of any governmental authority.  As to any jurisdiction that expressly imposes the requirement that an Option shall not be exercisable until the shares of Stock covered by such Option are registered or are exempt from registration, the exercise of such Option (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption.

	
             
  	
            15.2.
 	
            Rule 16b-3.  
 

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

 

	
            16.
 	
            EFFECT OF CHANGES IN CAPITALIZATION 
 

	
             
  	
            16.1.
 	
            Changes in Stock.  
 

If the number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares for which grants of Options and other Awards may be made under the Plan shall be adjusted proportionately and accordingly by the Company; provided that any such adjustment shall comply with Section 409A.  In addition, the number and kind of shares for which Awards are outstanding shall be adjusted proportionately and accordingly so that the proportionate interest of the Grantee immediately following such event shall, to the
extent practicable, be the same as immediately before such event.  Any such adjustment in outstanding Options or SARs shall not change the aggregate Option Price or SAR Exercise Price payable with respect to shares that are subject to the unexercised portion of an outstanding Option or SAR, as applicable, but shall include a corresponding proportionate adjustment in the Option Price or SAR Exercise Price per share.  The conversion of any convertible securities of the Company shall not be treated as an increase in shares effected without receipt of consideration.   Notwithstanding the foregoing, in the event of any distribution to the Company's stockholders of securities of any other entity or other assets (including an extraordinary cash dividend but excluding a non-extraordinary dividend payable in cash or in stock of the Company) without receipt of consideration by the Company, the Company may, in such manner as the Company deems appropriate, adjust (i) the number and kind of shares
subject to outstanding Awards and/or (ii) the 

 

	
             
 	
            18
 	
             
 

 

 

 

exercise price of outstanding Options and Stock Appreciation Rights to reflect such distribution. 

	
             
  	
            16.2.
 	
            Definition of Change in Control.
 

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

 

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

 

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

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

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

 

 

 

	
             
 	
            19
 	
             
 

 

 

 

 

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

	
             
  	
            16.3.
 	
            Effect of Change in Control
 

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

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

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

 

	
             
  	
            16.5.
 	
            Adjustments.  
 

Adjustments under this Section 16 related to shares of Stock or securities of the Company shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive.  No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. 

	
             
  	
            16.6.
 	
            No Limitations on Company.  
 

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

 

 

	
             
 	
            20
 	
             
 

 

 

 

 

	
            17.
 	
            GENERAL PROVISIONS
 

	
             
  	
            17.1.
 	
            Disclaimer of Rights.
 

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

	
             
  	
            17.2.
 	
            Nonexclusivity of the Plan.
 

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

	
             
  	
            17.3.
 	
            Withholding Taxes.
 

The Company or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes of any kind required by law to be withheld (i) with respect to the vesting of or other lapse of restrictions applicable to an Award, (ii) upon the issuance of any shares of Stock upon the exercise of an Option, or (iii) pursuant to an Award.  At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or the Affiliate, as the case may be, any amount that the Company or the Affiliate may reasonably determine to be necessary to satisfy such withholding obligation.  Subject to the prior approval of the Company or the Affiliate, which may be withheld by the Company or the Affiliate, as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing
the Company or the Affiliate to withhold shares of Stock otherwise issuable to the Grantee or (ii) by delivering to the Company or the Affiliate shares of Stock already owned by the Grantee.  The shares of Stock so delivered or withheld shall have an aggregate Fair Market Value equal to such withholding obligations.  The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company or the Affiliate as of the date that the amount of tax to be withheld is to be determined.  A Grantee who has made an election pursuant to this Section 17.3 may satisfy his or her withholding 

 

	
             
 	
            21
 	
             
 

 

 

 

obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.

	
             
  	
            17.4.
 	
            Captions.
 

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

	
             
  	
            17.5.
 	
            Other Provisions.
 

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

	
             
 	17.6.	
            Number and Gender.
 

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

	
             
  	
            17.7.
 	
            Severability.
 

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

	
             
  	
            17.8.
 	
            Governing Law.
 

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

	
             
  	
            17.9.
 	
            Section 409A.
 

	
             
  	
            17.9.1.
 	
            Short-Term Deferrals.  
 

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

	
             
  	
            17.9.2.
 	
            Adjustments.
 

To the extent that the Board determines that a Grantee would be subject to the additional 20% tax imposed on certain deferred compensation arrangements pursuant to Section 409A as a result of any provision of any Award, to the extent permitted by 

 

 

	
             
 	
            22
 	
             
 

 

 

 

Section 409A, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax.  The Board shall determine the nature and scope of such amendment.

 

*          *           *

 

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

 

 

UNDER ARMOUR, INC.

 

 

	
             
 	
            By:
 	
            ________________________
 
	
             
 	
            Title:
 	
            ________________________
 

 

 

 

	
       
	
      23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]