Document:

EX-10.1

ASSET PURCHASE AGREEMENT

among

COLLEGIATE PACIFIC INC.,

SALKELD & SONS, INC.

and

ALBERT A. MESSIER

1

Effective as of August 1, 2005TABLE OF CONTENTS

Page

	 	 	 
	APPENDIX A — Certain Defined Terms

	 
	 	 
	 

	 
	 	 
	SCHEDULES

	 	

	 
	 	 
	 

	 
	 	 
	2.2(a)

2.2(b)

2.2(c)

3.2(g)

6.13

6.14

7.4

	 	Excluded Assets (Motor Vehicles)

Excluded Assets (Real Estate)

Excluded Assets (Other)

Excluded Liabilities

Material Contracts of the Business

Employees of the Business

Parent and Buyer Consents

EXHIBITS

Exhibit A – Assignment and Assumption Agreement and Bill of Sale

Exhibit B – Lease Agreement

2

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is entered into this 3rd day of
August, 2005 to be effective as of August 1, 2005, among COLLEGIATE PACIFIC INC., a Delaware
corporation (“Parent”), SALKELD & SONS, INC., a Delaware corporation (“Buyer”), and ALBERT A.
MESSIER (“Seller”).

R E C I T A L S:

WHEREAS, Seller owns all of the Assets of Team Print, a sole proprietorship engaged in the
business of embroidery and screenprinting of sporting apparel and accessories (the “Business”); and

WHEREAS, Buyer desires to purchase from Seller, and Seller desires to sell to Buyer,
substantially all of the Assets used or held for use in connection with the Business, and in
connection therewith, Buyer has agreed to assume certain liabilities relating to the Business, all
on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

Article 1. Definitions

1.1. Definitions. The capitalized terms used in this Agreement will have the meanings set
forth in Appendix A hereto.

Article 2. Sale of Assets

2.1. Assets to be Sold. Subject to the terms and conditions set forth in this Agreement,
Seller shall sell, assign, transfer and deliver to Buyer on the Closing Date, and Buyer shall
purchase on the Closing Date, all of Seller’s right, title and interest in and to all of the
Assets, except the Excluded Assets set forth in Section 2.2 (the “Acquired Assets”), free and clear
of all Encumbrances. The Acquired Assets include the following:

(a) those Assets and rights reflected on the Closing Statement, including, but not
limited to all cash, accounts receivable, inventory, sales accessories, parts, machinery,
equipment, fixtures, supplies, trademarks, tradenames and service marks, telephone and
facsimile numbers, websites and prepaids;

(b) the list of customers and suppliers of the Business;

(c) Seller’s right to use the names “Team Print” and “Swiss Craft Embroidery” and all
variants thereof;

(d) all of Seller’s interest in and claims and rights under all Contracts, permits,
titles, copyrights and applications therefore relating to the Business;

(e) the books and records of Seller relating to the Acquired Assets and the Assumed
Liabilities;

(f) the goodwill of the Business; and

(g) all other Assets, rights, Claims, entitlements and business of every kind and
nature relating to the Business and owned or held by Seller, in which Seller has an interest
as of the Closing Date, whether known or unknown, fixed or unfixed, inchoate, accrued,
absolute, contingent or otherwise, whether or not specifically referred to in this
Agreement.

2.2. Excluded Assets. Seller shall retain all of its right, title and interest in and to,
and Buyer shall not acquire any interest in any of the following Assets (the “Excluded Assets”):

(a) the motor vehicles listed on Schedule 2.2(a);

(b) all real estate identified on Schedule 2.2(b);

(c) all Assets set forth on Schedule 2.2(c);

(d) All Business Records relating solely to internal proprietorship matters of the
Business, personnel records that Seller is required to retain, or any of the other Assets
listed in this Section 2.2; and

(e) All rights of Seller under this Agreement and the Bill of Sale and all
consideration payable to Seller pursuant to this Agreement.

Article 3. Assumption of Liabilities

3.1. Liabilities Assumed by Buyer. As of the Closing Date, Buyer shall assume and
undertake to pay, perform and discharge according to their terms only the following liabilities of
the Business (the “Assumed Liabilities”):

(a) except as otherwise set forth on Schedule 3.2(g), all liabilities reflected
on the Closing Statement;

(b) all liabilities and obligations under Contracts relating to the Business to which
Seller is a party or by which Assets are bound or subject, to the extent such Contracts
relate to the Acquired Assets; and

(c) if the transactions contemplated hereby are consummated, the reasonable fees and
expenses of Seller’s legal counsel and accountants incurred in connection with the
transactions contemplated hereby up to the Closing.

3.2. Excluded Liabilities. Buyer shall not assume or become liable or obligated in any
way, and Seller shall retain and remain solely liable for and obligated to pay, perform and
discharge all liabilities and obligations relating to the Business except as specifically provided
in Section 3.1 (the “Excluded Liabilities”). Without limiting the generality of the foregoing,
Buyer shall not assume any of the following:

(a) liabilities under or relating to any Excluded Assets;

(b) liabilities arising under or relating to any Acquired Assets that relate to the
time period prior to the Closing Date or arise out of events occurring prior to the Closing
Date;

(c) any Claim relating to the Business prior to the Closing Date;

(d) except for the reasonable fees and expenses of Seller’s legal counsel and
accountants incurred in connection with the transactions contemplated hereby up to the
Closing if the transactions contemplated hereby are consummated, any liability or obligation
of Seller arising out of or in connection with the negotiation and preparation of this
Agreement and the consummation and performance of the transactions contemplated hereby,
including, without limitation, any Tax liability so arising;

(e) except for accrued, but unpaid payroll Taxes for the employees of the Business that
are hired by Buyer, but only to the extent any such Taxes were not due and payable prior to
the Closing, liabilities with respect to Taxes, including any contractual liability with
respect to Taxes of another person, for any taxable period or portion thereof ending on or
before the Closing Date;

(f) any liability or obligation of Seller arising out of or relating to any breach of a
representation, warranty, covenant or agreement of Seller contained herein; and

(g) liabilities set forth on Schedule 3.2(g).

Article 4. Purchase Price and Payment

4.1. Purchase Price. The aggregate purchase price payable to the Seller in consideration
for the sale of the Acquired Assets (the “Purchase Price”) shall be (a) cash in the amount of
$1,000,001.28 (the “Cash Consideration”), and (b) 53,248 shares of fully paid and non-assessable
shares of common stock, $0.01 par value per share, of Parent (“Parent Common Stock”) (the “Stock
Consideration”).

4.2. Payment of Purchase Price. At the Closing, Buyer shall (a) pay the Cash Consideration
to the Seller by wire transfer of immediately available funds to accounts designated by the Seller,
and (b) cause Parent’s transfer agent to issue in the name of the Seller, or Seller’s designee, and
shall deliver to the Seller that number of fully paid and non-assessable shares of Parent Common
Stock equal to the Stock Consideration.

Article 5. Closing

5.1. Closing. The sale and delivery of the Acquired Assets to Buyer, the payment of the
Purchase Price to the Seller, and the consummation of the other respective obligations of the
parties contemplated by this Agreement (the “Closing”) shall take place at the offices of Vinson &
Elkins LLP, in Dallas, Texas, at 10:00 a.m. on August 3, 2005, or at such other time and place as
may be mutually agreed upon, to be effective as of August 1, 2005 (the “Closing Date”).

5.2. Closing Deliveries of Buyer and/or Parent. At the Closing, Buyer and/or Parent shall
deliver to Seller all of the following

(a) the Purchase Price;

(b) the Assignment and Assumption Agreement and Bill of Sale, in the form attached as
Exhibit A, executed by Buyer; and

(c) the Lease Agreement, in the form attached as Exhibit B, executed by Buyer.

5.3. Closing Deliveries of the Seller. At the Closing, Seller shall deliver to Buyer
and/or Parent, all of the following:

(a) Seller shall put Buyer in possession and control of all tangible Acquired Assets;

(b) the Assignment and Assumption Agreement and Bill of Sale, executed by Seller;

(c) the Lease Agreement, executed by Seller

(d) the Closing Statement; and

(e) such other and further documents and certificate as Parent or Buyer shall
reasonably request to consummate the transactions contemplated by this Agreement.

Article 6. Representations and Warranties of Seller

Seller represents and warrants to Parent and Buyer as of the date hereof as follows:

6.1. Authority. Seller has all necessary power and authority to enter into and deliver
this Agreement and the other Transaction Documents to which he is a party, to perform his
obligations hereunder and thereunder and to consummate the transactions contemplated hereby and
thereby. The execution and delivery of this Agreement and the other Transaction Documents to which
Seller is a party and the consummation of the transactions contemplated hereby and thereby have
been duly and validly authorized on the part of the Seller and no other proceedings on the part of
the Seller is necessary to authorize the execution or delivery of this Agreement or the other
Transaction Documents to which he is a party or to consummate the transactions contemplated hereby
or thereby. This Agreement and the other Transaction Documents to which Seller is a party have
been duly and validly executed and delivered by the Seller and, assuming the due authorization,
execution and delivery of Parent and Buyer, constitute the legal and binding obligations of the
Seller in accordance with their respective terms, subject to applicable bankruptcy, insolvency,
moratorium or other similar laws relating to creditors’ rights and general principles of equity.

6.2. No Conflict or Violations. The execution and delivery of this Agreement and the other
Transaction Documents to which Seller is a party by the Seller does not, and the performance by the
Seller of his obligations hereunder will not (a) conflict with or violate in any material respect
any term or provision of any Applicable Law or any writ, judgment, decree or injunction applicable
to the Business or to the Seller or by which any of the Acquired Assets is bound or subject, or (b)
conflict with or result in a material breach of, or constitute a material default under, any
Material Contract to which the Seller is a party or by which any of the Acquired Assets is bound or
subject.

6.3. Consents. The execution and delivery by the Seller of this Agreement do not, and the
consummation of the transactions contemplated hereby will not, require the Consent of any person.

6.4. Title to Acquired Assets; Related Matters. Seller has good and marketable title to
all of the Acquired Assets (other than any licensed or leased Acquired Assets, as to which Seller
has valid licenses or leasehold interests) and owns all of such Acquired Assets (including such
licenses or leasehold interests) free and clear of any Encumbrances. Subject to receipt of any
required Consents, the execution and delivery of this Agreement and Transaction Documents by Seller
at the Closing will convey to and vest in Buyer good and marketable title to the Acquired Assets
(or valid licenses or leasehold interests in the case of the licensed or leased Acquired Assets)
free and clear of any Encumbrances. The Acquired Assets constitute all of the material assets used
by the Seller in the conduct of the Business, except for the Excluded Assets. The tangible
Acquired Assets that are used in the conduct of the Business are in good condition and repair,
ordinary wear and tear excepted.

6.5. Financial Statements. The Seller has delivered to Buyer the unaudited balance sheet
and statements of operation and cash flows of the Business as of December 31, 2003 and 2004 and for
the 12-month periods then ended, and the Business’s unaudited balance sheet as of June 30, 2005
(the “Most Recent Balance Sheet”) and the Business’s unaudited statements of operations and cash
flow for the six-month period then ended (collectively, the “Financial Statements”). The Financial
Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the
period involved (except to the extent required by changes in GAAP) and the Financial Statements
present fairly in all material respects the financial condition and operating results and cash
flows of the Business in accordance with GAAP as of the dates, and for the periods, indicated in
the Agreement, subject in the case of the June 30, 2005 statements to normal year-end audit
adjustments.

6.6. Absence of Undisclosed Liabilities. There are no liabilities or obligations of any
nature (known or unknown, fixed, absolute, accrued, contingent or otherwise) of the Business except
(a) those reflected in the Most Recent Balance Sheet, and (b) those incurred in the Ordinary Course
of Business since the date of the Most Recent Balance Sheet, which individually or in the aggregate
have not resulted in or could not reasonably be expected to result in a Material Adverse Effect.

6.7. Absence of Changes. Since the date of the Most Recent Balance Sheet, the Seller has
conducted the Business only in the Ordinary Course of Business and there has not been (a) any event
or circumstance that has had or could reasonably be expected to have a Material Adverse Effect, (b)
any material change in the accounting methods, principles or practices of the Business, (c) any
entry by the Seller into any commitment or transaction material to the Business, except in the
Ordinary Course of Business or except in connection with the negotiation and execution and delivery
of this Agreement and the other Transaction Documents, (d) any material increase in, amendment to,
or establishment of any bonus, insurance, severance, deferred compensation, pension, retirement,
profit sharing or other Employee Benefit Plan, (e) granted any increase in compensation, bonus or
other benefits payable to the employees of the Business, except for increases occurring in the
Ordinary Course of Business, (f) paid any bonus to the directors, officers or employees of the
Business except for bonuses accrued on the Most Recent Balance Sheet, (g) any incurrence,
assumption or Guarantee of any indebtedness by the Business, or the grant of any Encumbrance on the
Acquired Assets to secure any indebtedness, (h) any sale or transfer of any material Assets of the
Business other than in the Ordinary Course of Business, or (i) any loan, advance or Investment in
any person by the Business (excluding any loan, advance or capital contribution to, or investment
in, the Business).

6.8. Accounts Receivable; Inventories. The accounts receivable of the Business are valid
and genuine, have arisen solely out of bona fide sales and deliveries of goods, performance of
services or other business transactions in the Ordinary Course of Business, and are not subject to
valid defenses, set-offs or counterclaims. The allowances for collection losses associated with
such accounts receivable reflected on the Business’s books have been determined in accordance with
GAAP and are consistent with past practice. The inventories of the Business reflected on the Most
Recent Balance Sheet and held by the Business on the date hereof do not include any items that are
not usable or saleable in the Ordinary Course of Business or are obsolete or discontinued items.
Such inventories have been reflected on the Most Recent Balance Sheet at the lower of cost or
market value (taking into account the usability or salability thereof) in accordance with GAAP.
Since the date of the Most Recent Balance Sheet, inventories of raw materials, supplies and
products have been purchased by the Seller in the Ordinary Course of Business, and the volumes of
purchases thereof and orders therefor have not been materially changed in anticipation of the
transactions contemplated by this Agreement. The Seller does not have any Knowledge of any
conditions materially affecting the supply of materials or products available to the Business, and,
to Seller’s Knowledge, the consummation of the transactions contemplated hereby will not adversely
affect any such supply.

6.9. Litigation. Since January 1, 2000, no Orders involving the Seller or the Business
have been issued. There is no Claim pending, or to Seller’s Knowledge, threatened against the
Seller or the Business nor is there any reasonable basis therefor.

6.10. Compliance. The Seller and the Business have complied in all material respects with
all Applicable Laws and no Claim has been made or, to Seller’s Knowledge, threatened against the
Seller or the Business alleging any material failure so to comply.

6.11. Taxes and Tax Returns.

(a) All Tax Returns required to be filed by the Seller with respect to the Business
have been duly filed on a timely basis or within appropriate extensions of time, and all
such Tax Returns were when filed, and continue to be, correct and complete in all material
respects. All Taxes owed by the Seller (whether or not shown on any Tax Return) with
respect to the Business for any taxable period or portion thereof ending on or before the
Closing Date have been timely paid or adequate provision has been or will be made therefore
prior to Closing. Seller currently is not the beneficiary of any extension of time within
which to file any Tax Return related to the Business. No written Claim has ever been made
by any Governmental Entity in a jurisdiction where the Seller does not file Tax Returns that
the Business is or may be subject to taxation by that jurisdiction. There are no liens with
respect to Taxes on any of the Assets.

(b) All Taxes required to have been withheld or collected and paid prior to the date
hereof in connection with amounts paid or owing to any employee, independent contractor,
creditor, member, any other third party, or otherwise relating to the Business have been
withheld or collected and paid by or on behalf of the Seller.

(c) The Seller has delivered to Parent correct and complete copies of all federal
income Tax Returns, examination reports, and statements of deficiencies assessed against or
agreed to by or on behalf of Business since January 1, 2003 and prior to the date hereof.

(d) No Claim with respect to Taxes or any Tax Return of the Business is pending or, to
Seller’s knowledge Seller, has been threatened.

6.12. Environmental Matters. To Seller’s Knowledge, (a) the Business is in compliance in
all material respects with all applicable Environmental Laws; (b) the Seller has not received any
written notices, demand letters or requests for information from any Governmental Entity or other
person indicating that the Business may be in violation of, or liable under, any Environmental Law
in any material respect; (c) no reports have been filed by the Seller concerning the release of any
Hazardous Substance or the threatened or actual violation of any Environmental Law by the Business;
(d) no Hazardous Substance has been disposed of, released or transported by the Business in
violation of any applicable Environmental Law; (e) there have been no environmental studies or
audits regarding compliance or noncompliance with any Environmental Law conducted by or which are
in the possession of the Seller relating to the activities of the Business or any of the real
property used by the Business that have not been delivered to Buyer; and (f) the Business is not
subject to any material liabilities or expenditures relating to any suit, settlement, court order,
administrative order, regulatory requirement, judgment or claim asserted or arising under any
Environmental Law.

6.13. Contracts. Except for Contracts terminable upon 90 days or less notice without
penalty, Schedule 6.13 sets forth all of the following Contracts to which the Seller is a
party or by which any of the Assets are bound (collectively, the “Material Contracts”): (a)
Contracts pertaining to the borrowing of money by or indebtedness of or relating to the Business;
(b) Contracts creating Guaranties relating to the Business; (c) Contracts relating to any single
capital expenditure of the Business in excess of $25,000; (d) Contracts for the purchase or sale of
real property, any business or line of business or for any merger or consolidation, in each case
related to the Business; (e) Material Leases; (f) employment agreements of the Business not
terminable upon one month’s notice without further severance and involving annual compensation in
excess of $50,000; and (g) other Contracts relating to the Business that individually require by
their respective terms after the date hereof the payment or receipt of more than $25,000 during any
12-month period or $50,000 in the aggregate. The Seller has complied in all material respects with
all of the terms and conditions of the Material Contracts to which it is a party and has not done
or performed any act which would invalidate or impair in any material respect its rights under any
Material Contract. There are no pending written assertions or claims that the Seller has breached,
violated or defaulted under any Material Contract in any material respect. True, correct and
complete copies of all Material Contracts have been delivered to Buyer.

6.14. Intellectual Property. To Seller’s Knowledge, the Business is not infringing upon or
violating in any material respect any intellectual property right, including without limitation any
trademark, trade name, domain name, patent, industrial design, trade secret, or copyright or any
registration or pending application therefor of any other person (collectively, “Intangible
Rights”), and the Seller does not have Knowledge of any pending or threatened claims thereof. To
Seller’s Knowledge, no person is infringing any Intangible Rights of the Business in any material
respect.

6.15. Employees. Schedule 6.15 lists all individuals performing services for the
Business as of the date of this Agreement and the annual compensation or rate of pay for each, with
each such individual identified as (a) salaried or hourly, (b) exempt or nonexempt, (c) full-time
or part-time, (d) temporary or permanent, and (e) active or inactive, including the reason for such
inactive status (e.g., leave of absence, suspension for substandard performance, FMLA, disability,
layoff, etc.). Except as set forth on Schedule 6.15, each of said individuals is a common
law employee, and none of said individuals is subject to a collective bargaining agreement.

6.16. Employee Benefit Plans. The Business does not maintain or contribute to any Employee
Benefit Plan.

6.17. Customers and Suppliers. No customer of the Business has advised the Seller that it
will stop, or materially decrease the rate of, buying materials, products or services from the
Business. No supplier of the Business has advised the Seller that it will stop, or materially
decrease the rate of, supplying materials, products, or services to the Business. To Seller’s
Knowledge, the consummation of the transactions contemplated hereby will not have a Material
Adverse Effect on the Business’s relationship with any customer or supplier.

6.18. Brokers. No person is entitled to receive any brokerage, finder’s or financial
advisory fee or commission in connection with the transactions contemplated by this Agreement based
upon arrangements made by or on behalf of the Seller.

6.19. Disclosure. No representation or warranty of the Seller contained in this Agreement
or any schedule to this Agreement contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements herein or therein, in light of the
circumstances in which they are made, not misleading.

6.20. Securities Laws Matters.

(a) Seller has no present intention of distributing any portion of the shares of Parent
Common Stock received pursuant to this Agreement (or any interest therein) in violation of
applicable securities laws. Seller understands that the shares of Parent Common Stock
issued to Seller will not be registered under the Securities Act at the time of such
issuance by reason of a specific exemption from the registration provisions of the
Securities Act which depends upon, among other things, the bona fide nature of the Seller’s
investment intent as expressed herein.

(b) Seller has such knowledge and experience in financial and business matters that
Seller is capable of evaluating the merits and risks of an investment in Parent Common Stock
and protecting Seller’s own interests in connection with such investment.

(c) Seller acknowledges that he is sufficiently aware of the Parent’s business affairs
and financial condition and has acquired sufficient information about Parent to reach an
informed and knowledgeable investment decision with respect to acquiring shares of Parent
Common Stock pursuant to this Agreement. Seller has relied upon, and is making his
investment decision upon, the information made available to Seller and other information
publicly available about Parent.

(d) Seller is not acquiring the shares of Parent Common Stock as a result of any
general solicitation or general advertising (as those terms are used in Regulation D under
the Securities Act), including advertisements, articles, notices or other communications
published in any newspaper, magazine or similar media or broadcast over radio or television,
or any seminar or meeting whose attendees have been invited by general solicitation or
general advertising.

(e) With respect to the tax and other economic considerations involved in acquiring the
 shares of Parent Common Stock, Seller is not relying on Parent or Buyer, and Seller has
carefully considered and has, to the extent Seller believes such discussion necessary,
discussed with Seller’s professional legal, tax, accounting and financial advisors the
implications of acquiring the shares of Parent Common Stock for the Seller’s particular tax,
financial and accounting situation.

Article 7. Representations and Warranties of Parent and Buyer

Parent and Buyer, jointly and severally, represent and warrant to Seller as follows:

7.1. Organization, Standing and Power. Each of Parent and Buyer is a corporation duly
organized, validly existing, and in good standing under the laws of the State of Delaware and have
all necessary corporate power and authority to enter into and deliver this Agreement and each other
Transaction Document to which either Parent or Buyer is a party, to perform their respective
obligations hereunder and hereunder and to consummate the transactions contemplated hereby and
thereby. The execution and delivery of this Agreement and each other Transaction Document to which
either Parent or Buyer is a party and the consummation of the transactions contemplated hereby and
thereby have been duly and validly authorized by all necessary corporate action on the part of
Parent and Buyer and no other corporate proceedings on the part of Parent or Buyer are necessary to
authorize the execution or delivery of this Agreement or any other Transaction Document to which
either Parent or Buyer is a party or to consummate the transactions contemplated hereby or thereby.
This Agreement and each other Transaction Document to which Parent or Buyer is a party has been
duly and validly executed and delivered by Parent and Buyer and, assuming the due authorization,
execution and delivery of the Seller, constitute the legal and binding obligations of Parent and
Buyer in accordance with their respective terms, subject to applicable bankruptcy, insolvency,
moratorium or other similar laws relating to creditors’ rights and general principles of equity.

7.2. Capitalization of Parent. As of the date hereof, the authorized capital stock of
Parent consists of 50,000,000 shares of Parent Common Stock and 1,000,000 shares of preferred
stock, par value $0.01 per share. Upon the issuance of the Parent Common Stock to the Seller as
provided in Section 4.2, such Parent Common Stock will be validly issued, fully paid and
non-assessable and will be free and clear of all Encumbrances created by or on behalf of Parent,
other than restrictions on transfer under Federal and state securities laws.

7.3. No Conflicts or Violations. Subject to obtaining the Consents contemplated by
Schedule 7.4, the execution and delivery of this Agreement and the other Transaction
Documents by Parent and Buyer do not, and the performance by Parent and Buyer of their respective
obligations hereunder and thereunder will not (a) conflict with or violate in any material respect
any term or provision of any Applicable Law or any writ, judgment, decree, or injunction applicable
to Parent or Buyer; (b) conflict with or result in a violation or breach of the Certificate of
Incorporation or Bylaws of Parent or Buyer; or (c) result in a material breach of, or constitute a
default under, any material Contract to which Parent or Buyer is a party or by which any of its
properties is bound or subject.

7.4. Consents. Except as set forth on Schedule 7.4, the execution and delivery of
this Agreement and the other Transaction Documents by Parent and Buyer do not, and consummation of
the transactions contemplated hereby will not, require Parent or Buyer to obtain any Consent except
for such Consents the failure of which to be made or obtained could not reasonably be expected to
have a material adverse effect on the validity or enforceability of this Agreement.

7.5. Litigation. There are no pending, or to the Knowledge of Parent and Buyer,
threatened, claims, actions, suits, proceedings, written inquiries or investigations by any
Governmental Entity or any other person against Parent or Buyer, except such claims, actions,
suits, proceedings written inquiries or investigations that could not reasonably be expected to
have a material adverse effect on the validity or enforceability of this Agreement.

7.6. SEC Filings. Parent has filed all forms, reports and documents required to be filed
by it with the SEC (collectively, the “SEC Filings”) on a timely basis. The SEC Filings filed
prior to the date hereof or the Closing Date (a) were prepared in all material respects in
accordance with the requirements of the Securities Act and the Exchange Act, as the case may be,
and (b) did not at the time they were filed (or if amended or superseded by a filing prior to the
date of this agreement, then on the date of such filing) contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements made therein, in
light of the circumstances under which they were made, not misleading.

7.7. Brokers. No person is or will become entitled to receive any brokerage, finder’s or
financial advisory fee or commission in connection with the transactions contemplated by this
Agreement based upon arrangements made on or on behalf of Buyer.

Article 8. Covenants and Agreements

8.1. Public Information. During the two year period following the Closing Date, to the
extent that Rule 144 may be utilized for the resale of the Parent Common Stock delivered as Stock
Consideration, Parent shall (a) use commercially reasonable efforts to make current public
information available that may be required by Rule 144(c) and (b) furnish to Seller upon written
request, (i) a written statement as to its compliance with the requirements of Rule 144(c) and the
reporting requirements of the Securities Act and the Exchange Act and (ii) a copy of the most
recent annual or quarterly report of Parent.

8.2. Notification of Certain Matters. Each of Seller, Parent and Buyer shall give prompt
notice to the other parties of the occurrence, or failure to occur, of any event, which occurrence
or failure to occur would be likely to cause (a) any representation or warranty contained in this
Agreement to be untrue or inaccurate in any material respect at any time from the date of this
Agreement to the Closing Date, or (b) any material failure of Seller, Parent or Buyer, as the case
may be, or of any officer, director, employee or agent thereof, to comply with or satisfy any
covenant, condition or agreement to be complied with or satisfied by it under this Agreement.
Notwithstanding the foregoing, the delivery of any notice pursuant to this Section 8.2 shall not
limit or otherwise affect the remedies available hereunder to the party receiving such notice.

8.3. Tax Matters. Seller shall pay the cost of all sales, transfer and use Taxes arising
out of the transfer of the Acquired Assets pursuant to this Agreement. Seller shall pay all costs
and expenses (including, without limitation, recording fees and real estate transfer Taxes and real
estate transfer stamps) incurred in connection with obtaining or recording title to the Acquired
Assets. The sales, use and transfer Tax returns required by reason of said transfer shall be
timely prepared and filed by the party normally obligated by law or regulation to make such filing.
Seller and Buyer agree to reasonably cooperate with each other in connection with the preparation
and filing of such returns, in obtaining all available exemptions from such sales, use and transfer
Taxes, and in timely providing each other with resale certificates and any other documents
necessary to satisfy any such exemptions.

8.4. Accounts Receivable. Following the Closing, the right to collect payment on all
accounts receivable included in the Acquired Assets shall belong to Buyer. Following the Closing,
to the extent that the Seller receives any cash payments with respect to any such accounts
receivable, or any other accounts receivable of Buyer or Parent arising from the Business from and
after the Closing Date, Seller shall remit such payments to Buyer or Parent within three business
days after the end of the month in which the cash was collected, together with a detailed summary
of all such collections.

8.5. Employees. Promptly following the Closing, Buyer will offer employment to each
employee listed on Schedule 6.15.

8.6. Noncompetition; Solicitation.

(a) As additional consideration for Buyer, and as a material inducement for Buyer to
enter into this Agreement and to consummate the transactions contemplated hereby, Seller
agrees that he shall not, during the five-year period beginning on May 11, 2005, in any
manner except in the scope of his employment by the Company, directly or indirectly:

(i) Own, engage in, manage, operate, join, control, or participate in the
ownership, management, operation, or control of, or be connected as a stockholder,
director, officer, employee, agent, partner, joint venturer, member, beneficiary, or
otherwise with, any corporation, limited liability company, partnership, sole
proprietorship, association, business, trust, or other organization, entity or
individual which conducts Company Activities in the Protected Area; provided,
however, that Seller may own, directly or indirectly, securities of any entity
traded on any national securities exchange or listed on any National Association of
Securities Dealers Automated Quotation System if the Seller does not, directly or
indirectly, individually own 1% or more of any class of equity securities, or
securities convertible into or exercisable or exchangeable for 5% or more of any
class of equity securities, of such entity;

(ii) Solicit or attempt to solicit, any business from any customers of Parent,
Buyer, the Business or any of their Affiliates for purposes of engaging in any
Company Activities in any Protected Area;

(iii) Recruit or hire away or attempt to recruit or hire away, on his behalf or
on behalf of any other organization, entity or person, any employee of Parent,
Buyer, the Business or any of their Affiliates, or induce or attempt to influence
any such employee to terminate his or her employment with Parent, Buyer, the
Business or any of their Affiliates; or

(iv) Interfere with or otherwise attempt to affect Parent’s, Buyer’s or the
Business’s relationship with any vendor or customer of Parent, Buyer, the Business
or any of their Affiliates.

(b) Seller understands and acknowledges that the Parent and Buyer have made substantial
investments to develop their respective business interests and goodwill. Seller agrees that
such investments are worthy of protection, and that the Parent’s and Buyer’s need for the
protection afforded by this Section 8.6 is greater than any hardship Seller might experience
by complying with its terms. Seller agrees that the limitations as to time, geographic
area, and scope of activity to be restrained contained in this Agreement are reasonable and
are not greater than necessary to protect the Company Activities and/or the goodwill or
other business interests of Parent and Buyer .

(c) Although Parent, Buyer and Seller believe the limitations as to time, geographic
area, and scope of activity contained in this Section 8.6 are reasonable and do not impose a
greater restraint than necessary to protect the Company Activities, goodwill, and other
legitimate business interest of Parent and Buyer, if this is judicially determined not to be
the case, Parent, Buyer and Seller specifically request that, notwithstanding Section 10.6,
the limitations contained in this Section 8.6 be reformed to the extent necessary to make
this Agreement enforceable. It is the express intent of Parent, Buyer and Seller that the
terms of this Section 8.6 be enforced to the full extent permitted by law.

Article 9. Indemnification

9.1. Indemnification of Parent and Buyer. From and after the Closing and subject to the
provisions of this Article 9 and Section 10.2 below, Seller agrees to indemnify and hold harmless
the Buyer Indemnified Parties from and against any and all Buyer Indemnified Costs.

9.2. Indemnification of Seller. From and after the Closing and subject to the provisions
of this Article 9 and Section 10.2 below, Parent and Buyer, jointly and severally, agree to
indemnify and hold harmless Seller from and against any and all Seller Indemnified Costs.

9.3. Defense of Third-Party Claims. An Indemnified Party shall give prompt written notice
to any Indemnifying Party of the commencement or assertion of any Claim by a third party
(collectively, a “Third Party Claim”) in respect of which such Indemnified Party shall seek
indemnification hereunder. Any failure so to notify an Indemnifying Party shall not relieve such
Indemnifying Party from any liability that it, he, or she may have to such Indemnified Party under
this Article 9 except to the extent the failure to give such notice materially and adversely
prejudices such Indemnifying Party. The Indemnifying Party shall have the right to assume control
of the defense of, settle, or otherwise dispose of such Third-Party Claim on such terms as it deems
appropriate; provided, however, that:

(a) The Indemnified Party shall be entitled, at its own expense, to participate in the
defense of such Third-Party Claim (provided, however, that the Indemnifying Parties shall
pay the legal fees of the Indemnified Party if (i) the employment of separate counsel shall
have been authorized in writing by all Indemnifying Parties in connection with the defense
of such Third-Party Claim, (ii) the Indemnifying Parties shall not have employed counsel
reasonably satisfactory to the Indemnified Party to defend such Third-Party Claim, (iii) the
Indemnified Party shall have reasonably concluded that there may be defenses available to
such Indemnified Party that are different from or additional to those available to the
Indemnifying Party, or (iv) the Indemnified Party’s counsel shall have advised the
Indemnified Party in writing, with a copy delivered to the Indemnifying Party, that there is
a material conflict of interest that could reasonably be expected to violate applicable
standards of professional conduct to have common counsel);

(b) The Indemnifying Party shall obtain the prior written approval of the Indemnified
Party before entering into or making any settlement, compromise, admission, or
acknowledgment of the validity of such Third-Party Claim or any liability in respect thereof
if, pursuant to or as a result of such settlement, compromise, admission, or acknowledgment,
injunctive or other equitable relief would be imposed against the Indemnified Party or if,
in the opinion of the Indemnified Party, such settlement, compromise, admission, or
acknowledgment could have a material adverse effect on the Indemnified Party;

(c) No Indemnifying Party shall consent to the entry of any judgment or enter into any
settlement that does not include as an unconditional term thereof the giving by each
claimant or plaintiff to each Indemnified Party of a release from all liability in respect
of such Third-Party Claim; and

(d) The Indemnifying Party shall not be entitled to control (but shall be entitled to
participate at its own expense in the defense of), and the Indemnified Party shall be
entitled to have sole control over, the defense or settlement, compromise, admission, or
acknowledgment of any Third-Party Claim (i) as to which the Indemnifying Party fails to
assume the defense within a reasonable length of time; or (ii) to the extent the Third-Party
Claim seeks an order, injunction, or other equitable relief against the Indemnified Party
which, if successful, would materially adversely affect the business, operations, assets, or
financial condition of the Indemnified Party; provided, however, that the Indemnified Party
shall make no settlement, compromise, admission, or acknowledgment that would give rise to
liability on the part of any Indemnifying Party without the prior written consent of such
Indemnifying Party.

The parties hereto shall extend reasonable cooperation in connection with the defense of any
Third-Party Claim pursuant to this Article 9 and, in connection therewith, shall furnish such
records, information, and testimony and attend such conferences, discovery proceedings, hearings,
trials, and appeals as may be reasonably requested.

9.4. Direct Claims. In any case in which an Indemnified Party seeks indemnification
hereunder which is not subject to Section 9.3 because no Third-Party Claim is involved, the
Indemnified Party shall notify the Indemnifying Party in writing of any Indemnified Costs which
such Indemnified Party claims are subject to indemnification under the terms hereof. Subject to
the limitations set forth in Sections 9.5 and 10.2, the failure of the Indemnified Party to
exercise promptness in such notification shall not amount to a waiver of such claim except to the
extent the resulting delay materially prejudices the position of the Indemnifying Party with
respect to such claim.

9.5. Limitations. Subject to Section 10.2 hereof, the following provisions of this Section
9.5 shall be applicable after the time of the Closing:

(a) Minimum Loss. Except with respect to Buyer Indemnified Tax Costs, Buyer
Indemnified Liabilities, Buyer Indemnified Representation Costs arising out of any breach or
default of the representations and warranties contained in Section 6.18 (relating to
brokers’ fees) and Seller Indemnified Representation Costs arising out of any breach or
default of the representations and warranties contained in the last sentence of Section 7.2
(relating to the issuance of the shares of Parent Common Stock to the Seller) or in Section
7.7 (relating to brokers’ fees), no Indemnifying Party shall be required to indemnify an
Indemnified Party for Indemnified Representation Costs unless and until the aggregate amount
of such Indemnified Representation Costs for which the Indemnified Party is otherwise
entitled to indemnification pursuant to this Article 9 exceeds $25,000 (the “Minimum Loss”).
After the Minimum Loss is exceeded, the Indemnified Party shall be entitled to be paid the
entire amount of its Indemnified Representation Costs, including the Minimum Loss, subject
to the limitations on recovery and recourse set forth in this Section 9.5.

(b) Limitation as to Time. No Indemnifying Party shall be liable for any
Indemnified Representation Costs pursuant to this Article 9 unless a written claim for
indemnification in accordance with Section 9.3 or 9.4 is given by the Indemnified Party to
the Indemnifying Party with respect thereto on or before the eighteen-month anniversary of
the Closing Date, except that this time limitation shall not apply to any (i) Claims for
fraud pursuant to Section 10.2; (ii) claims for breaches of the representations and
warranties contained in Section 6.1 (with respect to authority), Section 6.4 (relating to
ownership of the Acquired Assets) and Section 6.11 (relating to Taxes), which
representations and warranties shall survive until the expiration of the applicable statute
of limitations. Except for Claims for fraud pursuant to Section 10.2, no Indemnifying Party
shall be liable for any Indemnified Costs in excess of the Purchase Price.

(c) No Contribution. The Seller shall be liable for any Buyer Indemnified
Costs sustained by any Buyer Indemnified Parties subject to the terms, limitations and
conditions of this to Article 9. The Seller hereby waives and releases any and all rights
that they it have under this Agreement or any other Transaction Document to assert claims of
contribution against the Business.

9.6. Tax Treatment. The parties agree that any payment required under this Article 9 shall
be treated by the parties for all Tax purposes as an adjustment to the Purchase Price.

Article 10. General Provisions

10.1. Survival of Representations, Warranties, and Covenants. Regardless of any
investigation at any time made by or on behalf of any party hereto or of any information any party
may have in respect thereof, each of the representations and warranties made in this Agreement or
any other Transaction Document shall survive the Closing except as provided below. The
representations and warranties set forth in this Agreement (other than the representations and
warranties contained in Section 6.1 (with respect to authority), Section 6.4 (relating to ownership
of the Acquired Assets), and Section 6.11 (relating to Taxes), which representations and warranties
shall survive until the expiration of the applicable statute of limitations) or any other
Transaction Document shall terminate at 5:00 p.m. Central time on the eighteen month anniversary of
the Closing Date. Following the date of termination of a representation or warranty, no claim can
be brought with respect to a breach of such representation or warranty, but no such termination
shall affect any claim for a breach of a representation or warranty that was asserted in writing
pursuant to Section 9.3 or Section 9.4 hereof before the date of termination. To the extent that
such are performable after the Closing, each of the covenants and agreements contained in each of
the Transaction Documents shall survive the Closing indefinitely.

10.2. No Waiver Relating to Claims for Fraud. The liability of any party under Article 9
shall be in addition to, and not exclusive of, any other liability that such party may have at law
or equity based on such party’s acts or omissions which constitute fraud under Applicable Law.
None of the provisions set forth in this Agreement, including but not limited to the provisions set
forth in Sections 9.5, shall be deemed a waiver by any party to this Agreement of any right or
remedy which such party may have at law or equity based on any other party’s acts or omissions
which constitute fraud under Applicable Law, nor shall any such provisions limit, or be deemed to
limit, (a) the amounts of recovery sought or awarded in any such claim for fraud, (b) the time
period during which a claim for fraud may be brought, or (c) the recourse which any such party may
seek against another party with respect to a claim for fraud; provided, that with respect to such
rights and remedies at law or equity, the parties further acknowledge and agree that none of the
provisions of this Section 10.2, nor any reference to this Section 10.2 throughout this Agreement,
shall be deemed a waiver of any defenses which may be available in respect of actions or claims for
fraud, including but not limited to, defenses of statutes of limitations or limitations of damages.

10.3. Amendment and Modification. This Agreement may not be amended except by an
instrument in writing signed by the parties hereto.

10.4. Waiver of Compliance. Any failure of Parent or Buyer on the one hand, or Seller, on
the other hand, to comply with any obligation, covenant, agreement, or condition contained herein
may be waived only if set forth in an instrument in writing signed by the party or parties to be
bound by such waiver, but such waiver or failure to insist upon strict compliance with such
obligation, covenant, agreement, or condition shall not operate as a waiver of, or estoppel with
respect to, any other failure.

10.5. Specific Performance. The parties recognize that in the event Seller should refuse
to perform under the provisions of this Agreement, monetary damages alone will not be adequate.
Parent and Buyer shall therefore be entitled, in addition to any other remedies which may be
available, including money damages, to obtain specific performance of the terms of this Agreement.
In the event of any action to enforce this Agreement specifically, the Seller hereby waives the
defense that there is an adequate remedy at law. In no event shall the Seller be entitled to seek
specific performance with respect to any of the Parent’s or Buyer’s obligations arising under this
Agreement.

10.6. Severability. If any term or other provision of this Agreement is determined by a
court of competent jurisdiction to be invalid, illegal, or incapable of being enforced under any
rule of applicable law, or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or legal substance of
the transactions contemplated herein are not affected in any manner materially adverse to any
party. Upon such determination that any term or other provision is invalid, illegal, or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as
to effect the original intent of the parties as closely as possible in a mutually acceptable manner
in order that the transactions contemplated herein are consummated as originally contemplated to
the fullest extent possible.

10.7. Expenses and Obligations. Except as otherwise expressly provided in this Agreement,
all costs and expenses incurred by the Seller, on the one hand, and Parent and Buyer, on the other,
in connection with this Agreement and the other Transactions Documents shall be borne by each
respectively; provided, however, that, in the event of a dispute between the parties in connection
with this Agreement and the transactions contemplated hereby, each of the parties hereto hereby
agrees that the prevailing party shall be entitled to reimbursement by the other party or parties
of reasonable legal fees and expenses incurred in connection with any such action or proceeding.

10.8. Notices. All notices and other communications hereunder shall be in writing and
shall be deemed given if delivered personally, telecopied, or mailed by registered or certified
mail (return receipt requested), or sent by Federal Express or other recognized overnight courier,
to the parties at the following addresses (or at such other address for a party as shall be
specified by like notice):

(a) If to the Seller:

Albert A. Messier

1605 Commerce Drive

Bourbonnais, Illinois 60914

with a copy to:

Dennis Marek

Ackman, Marek, Meyer & Boyd, Ltd.

1 Dearborn Square, Suite 400

Kankakee, IL 60901

Facsimile: 815.933.6623

(b) If to Parent or Buyer, to:

	 
	Collegiate Pacific Inc.
13950 Senlac
Suite 100
Farmers Branch, TX 75234
Fax: 972.243.8316
Attention:Michael J. Blumenfeld

	with a copy to:

	 	 	 	 	 
	Vinson & Elkins LLP
	 	 	 	 
	3700 Trammel Crow Center

	2001 Ross Avenue
Dallas, TX 75201
Fax: 214.999.7857
Attention:
	 	Alan J. Bogdanow

Any of the above addresses may be changed at any time by notice given as provided above;
provided, however, that any such notice of change of address shall be effective only upon receipt.
All notices, requests or instructions given in accordance herewith shall be deemed received on the
date of delivery, if hand delivered, on the date of receipt, if telecopied, three business days
after the date of mailing, if mailed by registered or certified mail, return receipt requested, and
one business day after the date of sending, if sent by Federal Express or other recognized
overnight courier.

10.9. Assignment. Neither this Agreement nor any of the rights, interests, or obligations
hereunder shall be assigned by any of the parties hereto, whether by operation of law or otherwise;
provided, however, that upon notice to the Seller and without releasing Parent or Buyer from any of
their respective obligations or liabilities hereunder Parent or Buyer may assign or delegate any or
all of their respective rights or obligations under this Agreement to any Affiliate of Parent any
person with or into which Parent or any parent company of Parent merges or consolidates. In the
event of such an assignment, the provisions of this Agreement shall inure to the benefit of and be
binding on Parent’s and Buyer’s assigns. Any attempted assignment in violation of this Section
10.9 shall be null and void.

10.10. Counterparts. This Agreement may be executed and delivered (including by facsimile
transmission) in one or more counterparts, all of which shall be considered one and the same
agreement and shall become effective when one or more counterparts have been signed by each of the
parties and delivered to the other parties, it being understood that all parties need not sign the
same counterpart.

10.11. Entire Agreement. This Agreement (which term shall be deemed to include the
exhibits and schedules hereto and the other certificates, documents and instruments delivered
hereunder) constitutes the entire agreement of the parties hereto and supersedes all prior
agreements, letters of intent and understandings, both written and oral, among the parties with
respect to the subject matter hereof. There are no representations or warranties, agreements, or
covenants other than those expressly set forth in this Agreement.

10.12. Governing Law; Choice of Forum. This Agreement shall be construed in accordance
with and governed by the internal law of the State of Delaware (without reference to its rules as
to conflicts of law). The parties hereby irrevocably submit to the non-exclusive jurisdiction of
any state or federal court in Dallas County, Texas with respect to any action or proceeding arising
out of or relating to this Agreement. The Seller hereby irrevocably waive any right that they
otherwise might have (a) to remove such action or proceeding (or any claims within such action or
proceeding) to a federal court in the event that Buyer selects a state court forum or (b) to
transfer such action or proceeding (or any claims within such action or proceeding) to any court
other than the court selected by Buyer. The parties hereby consent to and grant to any such court
jurisdiction over the persons of such parties and over the subject matter of any such dispute and
agree that delivery or mailing of any process or other papers in the manner provided herein, or in
such other manner as may be permitted by law, shall be valid and sufficient service thereof.

10.13. Headings. The headings of this Agreement are for convenience of reference only and
are not part of the substance of this Agreement.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

IN WITNESS WHEREOF, the Seller, Parent and Buyer have caused this Agreement to be executed as
of the date first above written.

COLLEGIATE PACIFIC INC.

By: /s/ Michael J. Blumenfeld

Name: Michael J Blumenfeld

Title: Chief Executive Officer

SALKELD & SONS INC.

By: /s/ Michael J. Blumenfeld

Name: Michael J Blumenfeld

Title: Chief Executive Officer

/s/ Albert A. Messier

ALBERT A. MESSIER

3

APPENDIX A

Certain Defined Terms

“Acquired Assets” has the meaning set forth in Section 2.1.

“Affiliate” means, with respect to any person, any other person controlling, controlled by or
under common control with such person. For purposes of this definition and this Agreement, the
term “control” (and correlative terms) means the power, whether by contract, equity ownership or
otherwise, to direct the policies or management of a person.

“Agreement” has the meaning set forth in the first paragraph hereof.

“AMEX” means the American Stock Exchange.

“Applicable Laws” means, with respect to a party, all laws, statutes, rules, regulations,
ordinances, judgments, orders, decrees, injunctions, and writs of any Governmental Entity having
jurisdiction over such party.

“Assets” shall mean all assets or properties of every kind, nature, character and description,
including all tangible, intangible, personal, real or mixed, necessary or useful in the conduct of
the Business.

“Assumed Liabilities” has the meaning set forth in Section 3.1.

“Business” has the meaning set forth in the recitals.

“Business Records” means any and all books, records, files, documentation, data or information
of Seller that have been or now are used in connection with the Business.

“Buyer” has the meaning set forth in the first paragraph of this Agreement and includes its
permitted successors and assigns.

“Buyer Indemnified Costs” means (a) all Buyer Indemnified Representation Costs, (b) all Buyer
Indemnified Liabilities (c) all Buyer Indemnified Tax Costs, and (d) all damages, losses, claims,
liabilities, demands, charges, suits, penalties, costs, and expenses (including court costs and
reasonable legal fees and expenses incurred in investigating and preparing for any litigation or
proceeding) that any of the Buyer Indemnified Parties incurs and that arise out of any breach by
Seller of any other covenants or agreements of Seller under this Agreement or any other Transaction
Document executed in connection herewith.

“Buyer Indemnified Liabilities” means (a) the Excluded Liabilities, (b) accounts payable
incurred other than in the Ordinary Course of Business, (c) accounts payable not paid in the
Ordinary Course of Business, and (d) obligations with respect to the Excluded Assets.

“Buyer Indemnified Parties” means Parent, Buyer and each officer and director of Parent and
Buyer.

“Buyer Indemnified Representation Costs” means any and all damages, losses, claims,
liabilities, demands, charges, suits, penalties, costs, and expenses (including court costs and
reasonable legal fees and expenses incurred in investigating and preparing for any litigation or
proceeding) that any of the Buyer Indemnified Parties incurs and that arise out of any breach or
default by Seller of any of the representations or warranties under this Agreement or any agreement
or document executed in connection herewith.

“Buyer Indemnified Tax Costs” means any and all Taxes together with any costs, expenses,
losses or damages (including court and administrative costs and reasonable legal fees and expenses
incurred in investigating and preparing for any audit, litigation or other proceeding) arising out
of or incident to the determination, assessment or collection of such Taxes (a) imposed on the
Seller or the Business in respect of its income, business, property or operations or for which it
may otherwise be liable for any taxable period or portion thereof ending on or prior to the Closing
Date (determined by an interim closing of the books as of the end of the Closing Date except for ad
valorem Taxes which shall be prorated on a daily basis), (b) imposed on or with respect to the
Seller for any taxable period or portion thereof ending on or prior to the Closing Date, (c)
resulting from the breach of the representations and warranties set forth in Section 6.11 (without
regard to materiality or knowledge qualifiers that may be contained therein) or covenants set forth
in Section 8.3, (d) of any member of an affiliated, consolidated, combined or unitary group of
which the Seller (or any predecessor) is or was a member on or prior to the Closing Date by reason
of the liability of the Seller or the Business pursuant to Treasury Regulation §1.1502-6(a) or any
analogous or similar state, local or foreign law, (e) of any other person for which the Seller may
be liable as a transferee or successor, by contract or otherwise, or (f) imposed on Parent, Buyer
or the Business under Code Section 1374 with respect to any taxable period or portion thereof
ending on or prior to the Closing Date including any such Tax resulting from transactions
contemplated by the Transaction Documents.

“Cash Consideration” has the meaning set forth in Section 4.1.

“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of
1980 (42 U.S.C. § 9601 et seq.).

“Claim” means any action, suit, claim, lawsuit, charge, complaint, demand, inquiry, hearing,
investigation, notice of violation or noncompliance, litigation, proceeding, arbitrations, appeal
or other dispute, whether civil, criminal, administrative or otherwise.

“Closing” has the meaning set forth in Section 5.1.

“Closing Date” has the meaning set forth in Section 5.1.

“Closing Statement” means the balance sheet of the Business as of July 31, 2005 and the
related statement of income for the seven-month period then ended.

“Code” shall mean the United States Internal Revenue Code of 1986, as amended. All references
to the Code, U.S. Treasury regulations or other governmental pronouncements shall be deemed to
include references to any applicable successor regulations or amending pronouncement.

“Consents” means all governmental consents and approvals, and all consents and approvals of
third parties, in each case that are necessary in order to transfer the Acquired Assets, or the
control of the Business and its Assets, to Buyer and otherwise to consummate the transactions
contemplated hereby.

“Contracts” means, with respect to a party, all agreements, contracts, or other binding
commitments, arrangements or plans, written or oral (including any amendments and other
modifications thereto), to which such party is a party or is otherwise bound.

“Company Activities” (a) manufacturing, distributing, designing, selling or installing sports
equipment or sporting goods or related parts or supplies that are competitive with those
manufactured, distributed, designed, sold or installed by Parent, Buyer, the Business or their
Affiliates, (b) engaging in the silk screening, embroidery or twill work on sports equipment or
sporting goods or apparel or related parts or supplies that are competitive with those
manufactured, distributed, designed, sold or installed by Parent, Buyer, the Business or their
Affiliates or (c) engaging in any other business activities which are conducted, offered or
provided by Parent, Buyer, the Business or any of their Affiliates, in each case during the
five-year period beginning on May 11, 2005.

“Employee Benefit Plans” means all employee benefit plans as defined in Section 3(3) of ERISA
and all bonus, stock option, stock purchase, stock appreciation right, restricted stock, phantom
stock, incentive, deferred compensation, medical, disability or life insurance, cafeteria benefit,
dependent care, disability, director or employee loan, fringe benefit, sabbatical, supplemental
retirement, severance or other benefit plans, programs or arrangements, and all employment,
termination, severance or other contracts or agreements sponsored, maintained, contributed to or
agreed to for the benefit of employees, former employees, independent contractors or agents of the
Business.

“Encumbrances” means any and all restrictions on or conditions to transfer or assignment,
claims, liens, pledges, mortgages, restrictions, and encumbrances of any kind, whether accrued,
absolute, contingent or otherwise affecting the Acquired Assets.

“Environmental Laws” means all federal, state and local laws relating to public health, or to
pollution or protection of the environment (including, without limitation, ambient air, surface
water, groundwater, land surface or subsurface strata) including, without limitation, the Clean Air
Act, as amended, CERCLA, the RCRA, the Toxic Substances Control Act, the Federal Water Pollution
Control Act, as amended, the Safe Drinking Water Act, as amended, the Hazardous Materials
Transportation Act, as amended, the Oil Pollution Act of 1990, any state laws implementing the
foregoing federal laws, and all other Applicable Laws relating to or regulating (a) emissions,
discharges, releases, or cleanup of pollutants, contaminants, chemicals, polychlorinated biphenyls
(PCB’s), oil and gas exploration and production wastes, brine, solid wastes, or toxic or Hazardous
Substances or wastes (collectively, the “Polluting Substances”), (b) the generation, processing,
distribution, use, treatment, handling, storage, disposal, or transportation of Polluting
Substances, or (c) environmental conservation or protection.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

“Excluded Assets” has the meaning set forth in Section 2.2.

“Excluded Liabilities” has the meaning set forth in Section 3.2.

“Financial Statements” has the meaning set forth in Section 6.5.

“GAAP” means generally accepted accounting principles in the United States.

“Guarantee” means any guarantee or other contingent liability (other than any endorsement for
collection or deposit in the Ordinary Course of Business), direct or indirect with respect to any
obligations of another person, through a Contract or otherwise, including, without limitation, (a)
any endorsement or discount with recourse or undertaking substantially equivalent to or having
economic effect similar to a guarantee in respect of any such obligations and (b) any Contract (i)
to purchase, or to advance or supply funds for the payment or purchase of, any such obligations,
(ii) to purchase, sell or lease property, products, materials or supplies, or transportation or
services, in respect of enabling such other person to pay any such obligation or to assure the
owner thereof against loss regardless of the delivery or non delivery of the property, products,
materials or supplies or transportation or services or (iii) to make any loan, advance or capital
contribution to or other Investment in, or to otherwise provide funds to or for, such other person
in respect of enabling such person to satisfy an obligation (including any liability for a
dividend, stock liquidation payment or expense) or to assure a minimum equity, working capital or
other balance sheet condition in respect of any such obligation.

“Governmental Entity” means any governmental department, commission, board, bureau, agency,
court or other instrumentality of the United States or any state, county, parish or municipality,
jurisdiction, or other political subdivision thereof.

“Hazardous Substances” means any substance or material which if present in the environment
would under Applicable Law require assessment, remediation, or corrective action including, without
limitation, chemicals, pollutants, contaminants, wastes, toxic substances, petroleum and petroleum
products which are classified as hazardous, toxic, radioactive, dangerous or otherwise regulated by
or form the basis for liability under any Environmental Law, whether or not identified as hazardous
wastes under the RCRA or hazardous substances under CERCLA.

“Indemnified Costs” means the Buyer Indemnified Costs or the Seller Indemnified Costs, as the
case may be.

“Indemnified Parties” means the Buyer Indemnified Parties or the Seller, as the case may be.

“Indemnified Representation Costs” means the Buyer Indemnified Representation Costs or the
Seller Indemnified Representation Costs, as the case may be.

“Indemnifying Party” means any person who is obligated to provide indemnification hereunder.

“Intangible Rights” has the meaning set forth in Section 6.14.

“Investment” means (a) any direct or indirect ownership, purchase or other acquisition by a
person of any notes, obligations, instruments, capital stock, options, warrants, securities or
ownership interests (including partnership interests and joint venture interests) of any other
person, and (b) any capital contribution or similar obligation by a person to any other person.

“IRS” means the Internal Revenue Service of the United States.

“Knowledge” means, with respect to a specified party hereto, the actual knowledge of such
party (including, but not limited to, the actual knowledge of any officers, directors, employees,
consultants or counsel of such party), together with such additional knowledge as would be acquired
by a reasonable inquiry concerning the subject matter in question.

“Material Adverse Effect” means a material adverse effect on the business, operations,
properties, condition (financial or otherwise), results of operations or assets, liabilities or
prospects of the Business.

“Material Contract” has the meaning set forth in Section 6.13.

“Material Leases” shall mean any lease or sublease of real or personal property of or by the
Business involving a term of more than 12 months and payment obligations exceeding $50,000 per
year.

“Minimum Loss” has the meaning set forth in Section 9.5(a).

“Most Recent Balance Sheet” has the meaning set forth in Section 6.5.

“Order” means any writ, decree, order, judgment, injunction, rule, ruling, Encurmbrance,
voting right, consent of or by a Governmental Entity.

“Ordinary Course of Business” means the ordinary course of the operations of the Seller and
the Business consistent with past practices since the earliest time covered by the Financial
Statements.

“Parent” has the meaning set forth in the first paragraph of this Agreement, and includes its
permitted successors and assign.

“Parent Common Stock” has the meaning set forth in Section 4.1.

“person” means an individual, corporation, partnership, limited liability company,
association, trust, unincorporated organization, or other entity.

“Protected Area” means any jurisdiction in the United States in which Parent, Buyer, the
Business, or any Affiliate of either of them, conducts or conducted, as the case may be, Company
Activities at any time during the period beginning May 11, 2004 and ending on May 11, 2010.

“Purchase Price” means the consideration payable by Buyer as provided in Section 4.1.

“RCRA” means the Resource Conservation and Recovery Act of 1976, as amended.

“SEC” means the Securities and Exchange Commission.

“SEC Filings” has the meaning set forth in Section 7.6.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

“Seller” has the meaning set forth in the first paragraph of this Agreement.

“Seller Indemnified Costs” means (a) all Seller Indemnified Representation Costs, and (b) any
and all damages, losses, claims, liabilities, demands, charges, suits, penalties, costs, and
expenses (including court costs and reasonable legal fees and expenses incurred in investigating
and preparing for any litigation or proceeding) that any of the Seller Indemnified Parties incurs
and that arise out of any breach by Parent or Buyer of any of the covenants or agreements under
this Agreement or any other Transaction Documents.

“Seller Indemnified Representation Costs” means any and all damages, losses, claims,
liabilities, demands, charges, suits, penalties, costs, and expenses (including court costs and
reasonable legal fees and expenses incurred in investigating and preparing for any litigation or
proceeding) that Seller incurs and that arise out of any breach or default by Parent or Buyer of
any of their representations or warranties under this Agreement or any agreement or document
executed in connection herewith.

“Stock Consideration” has the meaning set forth in Section 4.1.

“Tax” (or “Taxes”) means (a) any net income, alternative or add-on minimum, gross income,
gross receipts, sales, use, ad valorem, value added, transfer, franchise, profits, license,
withholding on amounts related to the Business paid by the Seller, payroll, employment, excise,
production, severance, stamp, occupation, premium, property, environmental or windfall profit tax,
custom, duty or other tax, governmental fee or other like assessment or charge of any kind
whatsoever, together with any interest and/or any penalty, addition to tax or additional amount
imposed by any taxing authority, (b) any liability of the Seller for the payment of any amounts of
the type described in clause (a) as a result of being a member of an affiliated or consolidated
group or arrangement whereby liability of the Seller for the payment of such amounts was determined
or taken into account with reference to the liability of any other person for any period and (c)
liability of the Seller with respect to the payment of any amounts of the type described in clause
(a) or (b) as a result of any express or implied obligation to indemnify any other person.

“Tax Return” means any return, declaration, report, statement, estimate, information return
and statement required to be filed by or with respect to the Business in respect of any Taxes,
including, without limitation, (a) any consolidated federal income Tax return in which the Business
is included and (b) any state, local or foreign income Tax returns filed on a consolidated,
combined or unitary basis (for purposes of determining tax liability) in which the Business is
included.

“Third Party Claim” has the meaning set forth in Section 9.3.

“Transaction Documents” means this Agreement, and all other documents to be executed by any of
the Seller, Parent or Buyer in connection with the consummation of the transactions contemplated in
this Agreement.

4EX-10.2

LEASE AGREEMENT

This Lease Agreement (“Lease”) is entered into effective as of the 1st day of
August, 2005 (“Commencement Date”), by and between ALBERT A. MESSIER (“Landlord”),
and SALKELD & SONS, INC., a Delaware corporation (“Tenant”).

ARTICLE 1: LEASE OF PROPERTY

Section 1.1. Premises Leased. Landlord, in consideration of the rents, covenants, agreements,
and conditions herein set forth which Tenant hereby agrees shall be paid, kept, and performed, does
hereby lease unto Tenant, and Tenant does hereby rent and lease from Landlord, that certain land in
Kankakee County, Illinois, particularly described in Exhibit “A” hereto (the
“Land”) and municipally numbered 1605 Commerce Drive, Bourbonnais, Illinois, together with
all of Landlord’s rights, interests, estates, and appurtenances thereto, and all improvements
thereon, including without limitation (i) the building and improvements located upon the Land
(together, the “Building”), and (ii) all other rights, titles, interests, and estates, if
any, of the Landlord in other portions of the Land and adjacent streets and roads (all of the above
are hereinafter collectively referred to as the “Premises”).

Section 1.2. Landlord’s Construction. Landlord at Landlord’s sole cost and expense, shall
construct as part of the Premises 12,000 square feet of additional screen print and distribution
space in the Building (the “Additional Space”). The Additional Space shall be constructed
by Landlord in a good and workmanlike fashion and completed on or before February 1, 2006.
Landlord shall be responsible for obtaining all necessary certificates of occupancy from
Governmental Authorities (defined in Section 4.1(a) below) for Tenant to occupy the Premises and
conduct its operations therein.

ARTICLE 2: TERM OF LEASE

Section 2.1. Term. Unless sooner terminated as herein provided, the initial term of
this Lease (the “Initial Term”) shall be five (5) years, commencing on the Commencement
Date. So long as Tenant is not in Default under the terms of this Lease, Tenant shall have an
option to extend the term of this Lease for six (6) additional two (2) year terms following the
Initial Term (together, the “Extended Terms,” or separately an “Extended Term”).
Tenant’s option to enter into an Extended Term shall be exercised only by written notice from
Tenant to Landlord, given no less than sixty (60) days prior to the expiration of the Initial Term
or the then current Extended Term, as the case may be. Tenant shall hold the Premises during any
Extended Term upon the same terms, covenants and conditions herein contained, provided that Base
Rent for each Extended Term shall be increased by two (2%) from the monthly rental in effect in the
immediately proceeding Initial Term or Extended Term, as the case may be. For the purposes of this
Lease, the “Term” shall mean the Initial Term, and any Extended Terms.

	 	 	 
	ARTICLE 3:

Section 3.1.

	 	RENT

Base Rent.
	
 
	 	 

(a) Subject to Section 3.1(b) hereof, Tenant shall pay to Landlord monthly base rent for the
Premises (the “Base Rent”) in advance on or before the first day of each month, without
demand, deduction or set off (except as otherwise provided herein), in the amount of (i) $6,000.00
per month, prior to the Landlord’s completion and Tenant’s occupancy of the Additional Space, and
(ii) $10,500.00 per month following Landlord’s completion and Tenant’s occupancy of the Additional
Space.

(b) The first monthly installment of Base Rent shall be due on the Commencement Date;
thereafter, monthly installments of Base Rent shall be due on the first day of each calendar month
following the Commencement Date. If the Initial Term or any Extended Term begins or ends on a day
other than the first day of a month, the Base Rent under Section 3.1(a) for such partial month
shall be prorated.

Section 3.2. Payment of Rent. All amounts required to be paid by Tenant under the
terms of this Lease, including Base Rent, are herein from time to time collectively referred to as
“Rent”. Rent shall be payable to Landlord at the original or changed address of Landlord
as set forth in Section 12.1 or to such other persons or at such other addresses as Landlord may
designate from time to time in writing to Tenant. Rent shall be paid to Landlord by Tenant in
lawful money of United States of America without notice (except as may be expressly provided for in
this Lease) or demand.

Section 3.3. Late Payments. Tenant agrees to pay, as additional rent, interest for
each payment due hereunder that is more than five business days delinquent, interest to accrue
until the date paid at a rate of twelve percent (12%) per annum.

	 	 	 
	ARTICLE 4:

Section 4.1.

	 	IMPOSITIONS; UTILITIES; SERVICES

Landlord Impositions and Tenant Impositions Defined.
	
 
	 	 

(a) The term “Landlord Impositions” shall mean (i) any and all real property taxes
and assessments attributable to the Property during the Term, and (ii) any income tax, capital
levy, estate, succession, inheritance or transfer taxes, or similar tax of Landlord, or any income,
profits, or revenue tax, assessment, or charge imposed upon the rent or other benefit received by
Landlord under this Lease by any municipality, county, state, the United States of America, or any
other governmental body, subdivision, agency, or authority (hereinafter all of the foregoing
governmental bodies are collectively referred to as “Governmental Authorities”).

(b) The term “Tenant Impositions” shall mean all taxes, assessments, use and occupancy
taxes, rates and rents, excises, levies, license and permit fees, and other charges by any public
authority, attributable to (i) Tenant’s personal property located within the Premises or any part
thereof, and (ii) the rent and income received by or for the account of Tenant from any sublessees
or for any use or occupation of the Premises.

Section 4.2. Obligation to Pay Impositions. Landlord will pay as and when the same
shall become due all Landlord Impositions for the entire Term. Tenant will pay as and when the
same shall become due all Tenant Impositions for the entire Term. The terms of this Section 4.2
shall survive the termination of this Lease.

Section 4.3. Utilities. Tenant shall pay all charges for gas, electricity, light,
heat, air conditioning, power, telephone and other communication services, and all other utilities
and similar services rendered or supplied to the Premises, and all water rents, sewer service
charges, or other similar charges levied or charged against, or in connection with, the Premises.

	 	 	 
	ARTICLE 5:

Section 5.1.

	 	IMPROVEMENTS

Landlord Improvements; Alterations and Additions.
	
 
	 	 

(a) Tenant shall not remove any Landlord Improvements or portions of Landlord Improvements
situated upon the Land except with the prior written consent of Landlord. As used hereafter, the
term “Landlord Improvements” shall mean the Building, structures, landscaping, or other
improvements or fixtures located upon the Land at the Commencement Date, in whole or in part,
including without limitation heating, ventilating, and air conditioning, plumbing, and electrical
systems, fixtures, and equipment; but Landlord Improvements will not include removable
trade fixtures, trade dress, equipment, furniture, and signage of Tenant (but Landlord Improvements
do include the poles or other structural supports for signage) (herein collectively called
“Tenant’s Equipment”). The Landlord Improvements shall at all times be the property of
Landlord and may not be removed by Tenant.

(b) Tenant may, without the prior written consent of Landlord, make alterations, additions and
improvements to the Premises (including, without limitation, interior decorating additions and
erection and placement of items constituting Tenant’s Equipment) if any such alterations, additions
and improvements are made in compliance with all applicable laws and in a good and workmanlike
manner and would not (i) materially affect the Building Structure (as hereinafter defined), (ii)
reduce the load bearing capacity of any portion of the Building (other than by reason of the weight
of the alterations, additions and improvements themselves, as long as total capacity is not
exceeded), (iii) involve slab penetrations or curtain wall penetrations of the Building, or (iv)
materially affect the functioning of the electrical, mechanical or plumbing system of the Building
after the end of the Term (collectively, “Tenant Improvements”). As used herein
“Building Structure” shall mean the paving, sidewalks, and curbs on the Premises, the
Building’s roofs, the Building’s foundations, the structural members of the Building’s interior and
exterior walls (including any interior columns), and the underslab and underground plumbing system
of the Building. Any Tenant Improvements that would affect (i) through (iv) shall require the
prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed.
Upon completion of any Tenant Improvement, Tenant shall, upon reasonable written request of
Landlord, deliver to Landlord accurate, reproducible as-built plans therefor. All work performed
by Tenant in the Premises (including that relating to the installations, repair, replacement, or
removal of any item) shall be performed in accordance with applicable law and as to Tenant
Improvements requiring Landlord’s consent with Landlord’s reasonable specifications and
requirements, and so as not to damage or alter the Building Structure. Except as otherwise agreed
in writing by Landlord and Tenant, all Tenant Improvements shall become the property of Landlord.

(c) Tenant shall have no right, authority, or power to bind Landlord or any interest of
Landlord in the Premises for any claim for labor or for material or for any other charge or expense
incurred in construction of any Improvements or performing any alteration, renovation, repair,
refurbishment, or other work with regard thereto, nor to render Landlord’s interest in the Premises
liable for any lien or right of lien for any labor, materials, or other charge or expense incurred
in connection therewith, and Tenant shall in no way be considered as the agent of Landlord in the
construction, erection, or operation of any such Improvements. If any liens or claims for labor or
materials supplied or claimed to have been supplied to the Premises shall be filed, Tenant shall
promptly pay or bond such liens to Landlord’s reasonable satisfaction or otherwise obtain the
release or discharge thereof.

Section 5.2. Right to Remove. Tenant shall have the right to remove all Tenant
Equipment at any time and from time to time during the Term, provided that Tenant promptly repairs
all damage caused by such removal.

ARTICLE 6: USE, MAINTENANCE, AND REPAIRS

Section 6.1. Use. Tenant shall use the Premises for the manufacturing, distribution,
design and sale of sports equipment and sporting goods and related parts and supplies and silk
screening, embroidery and twill work on sports equipment and sporting goods and apparel and related
parts and supplies, and for other uses ancillary and appurtenant thereto, and in accordance with
all applicable laws. Tenant shall not use or occupy, permit the Premises to be used or occupied,
nor do or permit anything to be done in or on the Premises in a manner which would in any way make
void or voidable any insurance then in force with respect thereto, which would make it impossible
to obtain the insurance required to be furnished by Tenant hereunder, which would constitute a
public or private nuisance, or which would violate any laws, regulations, ordinances, or
requirements of any Governmental Authority having jurisdiction.

Section 6.2. Maintenance and Repairs. The Tenant shall maintain the Premises in a
clean, neat, and orderly condition at all times. Tenant shall pay for all maintenance,
replacements, alterations and repairs to the Premises, except for repairs or replacements to the
roof, heating and cooling system, foundation, plumbing, and exterior walls which shall be the
responsibility of the Landlord, and Landlord agrees to repair and maintain the same in good repair
and condition. However, subject to the provisions of Section 7.2(b) below, if any of such repairs
or replacements to the roof, heating and cooling system, foundation, plumbing, or exterior walls
shall be made necessary by reason of (a) the fault or negligence of the Tenant, the Tenant’s
agents, invitees, licensees, employees, or anyone claiming under the Tenant, or (b) a default in
the performance or observance of any of the terms, covenants, or conditions on the part of the
Tenant to be performed or observed in this Lease, the Tenant shall reimburse the Landlord on demand
for all costs of such repairs and replacements plus interest at the rate of 12% per annum accruing
from the date of such demand until payment in full.

Section 6.3. Repair Obligations in Connection with Casualty and Condemnation.It is
hereby agreed by Landlord and Tenant that any repairs, maintenance or replacements that are
necessary as a result of any event of casualty or condemnation shall be covered by the provisions
of Sections 8.1 and 8.2, as applicable, and that the provisions of such Sections shall control the
responsibilities and obligations of Landlord and Tenant with respect thereto notwithstanding
anything to the contrary set out in Sections 8.1 or 8.2 hereof.

	 	 	 
	ARTICLE 7:

Section 7.1.

	 	INSURANCE AND INDEMNITY

Insurance.
	
 
	 	 

(a) From and after the Commencement Date, Tenant shall maintain commercial general liability
insurance (with contractual liability endorsement), including personal injury and property damage
in the amount of $1,000,000 per occurrence combined single limit for personal injuries and death of
persons and property damage occurring in or about the Premises. Such policy shall (A) name
Landlord as an additional insured, (B) be on terms reasonably acceptable to Landlord, (C) provide
that such insurance may not be canceled unless 30-days’ prior written notice is first given to
Landlord, and (D) be, or certificates thereof be, delivered to Landlord by Tenant on or before the
Commencement Date and at least 15 days before each renewal thereof (and in the event certificates
are delivered, copies of policies shall be delivered promptly upon receipt by Tenant).

(b) From and after the Commencement Date, Landlord shall maintain fire and extended coverage
insurance covering the replacement cost of the Premises (the “Casualty Insurance”). Such
policy shall provide that such insurance may not be canceled unless 30-days’ prior written notice
is first given to Tenant. A copy of such policies or a certificate evidencing such coverage shall
be delivered to Tenant before the Commencement Date and at least 15 days before each renewal.

Section 7.2. Indemnities.

(a) Tenant hereby indemnifies and holds Landlord harmless from and against any and all claims
brought by third parties arising from (i) any injury or property damage to the extent caused by
Tenant, its agents, employees or contractors on or about the Premises, and (ii) any claim by any
agent, contractor, employee or invitee of Tenant or its contractors (except to the extent covered
by Landlord’s indemnity in the immediately following sentence), and from and against all costs,
reasonable attorneys’ fees, expenses and liabilities incurred in or related to any and all such
claims or any actions or proceeding brought thereon. Landlord hereby indemnifies and holds Tenant
harmless from and against any and all claims brought by third parties arising from (i) any injury
or property damage to the extent caused by Landlord, its agents, employees or contractors on or
about the Premises, and (ii) any claim by any agent, contractor, employee or invitee of Landlord or
its contractors (except to the extent covered by Tenant’s indemnity in the immediately preceding
sentence), and from and against all costs, reasonable attorneys’ fees, expenses and liabilities
incurred in or related to any and all such claims or any actions or proceeding brought thereon.

(b) Notwithstanding anything to the contrary contained in this Lease, whenever (i) any loss,
cost, damage or expense resulting from damage to property from fire, explosion or any other
casualty or occurrence is incurred by either of the parties to this Lease in connection with the
Premises, and (ii) such party is then covered (or is required under this Lease to be covered) in
whole or in part by insurance with respect to such loss, cost, damage or expense, then the party so
insured hereby releases (and waives all claims against) the other party, its employees, agents and
contractors from any liability it may have on account of such loss, cost, damage or expense and
waives any right of subrogation which might otherwise exist on account thereof. THE RELEASE AND
WAIVER CONTAINED IN THIS SECTION IS INTENDED TO EXPRESSLY RELEASE AND WAIVE THE LIABILITY OF EACH
PARTY FROM THE CONSEQUENCES OF ITS NEGLIGENT ACTS OR OMISSIONS, SUBJECT TO THE TERMS OF THIS
SECTION. The release and waiver of claims in this section shall also operate as a waiver of
subrogation from Landlord’s and Tenant’s respective insurance carriers.

(c) The terms of this Section 7.2 shall survive the termination or expiration of this Lease.

	 	 	 
	ARTICLE 8:

Section 8.1.

	 	CASUALTY AND CONDEMNATION

Casualty.
	
 
	 	 

(a) If any portion of the Premises shall be damaged or destroyed by fire or other casualty,
then Landlord shall within twenty (20) days after such casualty provide to Tenant a written report
(“Repair Report”) prepared by a contractor or licensed architect in Kankakee County,
Illinois, reasonably acceptable to Tenant, setting forth an estimate of the time required for the
repair and restoration as a result of such casualty, and an estimate of the cost thereof.

(b) In any of the aforesaid circumstances, Base Rent shall abate in an amount that is fair and
reasonable under the circumstances during the period and to the extent that the Building or any
portion thereof is rendered untenantable. If neither Landlord nor Tenant elects to (or has a right
to) terminate this Lease, this Lease shall continue in full force and effect and repairs will be
made in accordance with the provisions hereinafter set forth.

(c) If the damage to the Premises is seventy-five percent (75%) or more of its then
replacement cost (above the foundation), then Landlord shall have the right to terminate this Lease
by giving Tenant written notice thereof within thirty (30) days after such damage.

(d) If the damage to the Premises is such that more than twenty-five percent (25%) of the
Building would, pursuant to the Repair Report, be rendered actually untenantable for more than one
hundred twenty (120) days from the date of the Repair Report, Tenant shall have the right to
terminate this Lease by giving Landlord timely written notice thereof at any time within thirty
(30) days after Landlord has delivered to Tenant the Repair Report. If Tenant elects not to
terminate the Lease, and Landlord either does not have the right to or does not elect to terminate
the Lease, then if Landlord has not completed the repair and restoration of the affected portion of
the Premises within ninety (90) days after the date of such casualty, then Tenant shall have the
right, by delivery of timely written notice within thirty (30) days after the expiration of such
restoration period, to terminate this Lease.

(e) If either Tenant or Landlord shall elect to terminate this Lease as permitted in this
Section 8.1, then (i) such termination shall be effective thirty (30) days after such notice is
deemed received, and (ii) all Base Rent and other sums payable by Tenant to Landlord hereunder
shall be prorated and paid up to the time of such fire or other casualty.

(f) In the event of a casualty, if neither Landlord nor Tenant elects to (or has the right to)
terminate this Lease pursuant to the express terms hereof, Landlord shall commence and proceed with
reasonable diligence to restore the Premises with a contractor mutually agreeable to Landlord and
Tenant (including the Landlord Improvements and, to the extent Tenant makes proceeds available for
the same, the Tenant Improvements).

(g) Tenant shall not be entitled to receive any credit or payment with respect to any portion
of the insurance proceeds received by Landlord and not actually spent upon restoration of the
Premises. Other than as set forth in Section 8.1(b), Landlord shall not be liable for any
inconvenience or annoyance to Tenant or injury to the business of Tenant resulting in any way from
such damage or the repair thereof. Upon the completion of the restoration so as to permit
occupancy as evidenced by the issuance of a certificate of occupancy or its equivalent for the
Premises by the appropriate governmental entity having jurisdiction over the Premises for the
purpose of issuing such certificate, such restoration shall be deemed fit for occupancy by Tenant
whereupon Tenant’s obligation to pay Base Rent without any abatement shall immediately then be
reinstated and again become due and payable in accordance with the applicable terms of the Lease.

(h) All repairs to be performed by Landlord pursuant to this Section 8.1 shall be performed in
such a manner so as not to unreasonably interfere with Tenant’s use and occupancy of the Premises.

Section 8.2. Condemnation.

(a) If all or any portion of the Premises is taken for any public or quasi-public use by right
of eminent domain or private purchase in lieu thereof (a “Taking”), Tenant may terminate
this Lease by delivering to Landlord written notice thereof within 30 days after the Taking, in
which case Rent shall be abated during the unexpired portion of the Term, effective on the date of
such Taking. If a Taking of the Premises occurs but the Lease does not so terminate, the Rent
payable during the unexpired portion of the Term shall be reduced to such extent as may be fair and
reasonable under the circumstances. All compensation awarded for any Taking shall be allocated in
accordance with applicable law, provided, however, that Landlord shall have no
interest in any award made to Tenant for loss of business, goodwill, moving expenses or for the
taking of Tenant’s trade fixtures, if a separate award for such items is made to Tenant.

(b) If this Lease is not terminated pursuant to Section 8.2(a) hereof, Landlord will
diligently repair the Premises to substantially its previous condition. If this Lease is not
terminated pursuant to Section 8.2(a) hereof and in the event any damage caused by a Taking is not
repaired within ninety (90) days after such Taking, Tenant shall be entitled to terminate this
Lease upon ten (10) days’ prior written notice to Landlord.

(c) If this Lease is terminated pursuant to this Section 8.2, Rent shall be apportioned and
paid or refunded up to the time of the Taking. All repairs to be performed by Landlord pursuant to
this Section 8.2 shall be performed in such a manner so as not to unreasonably interfere with
Tenant’s use and occupancy of the Premises.

Section 8.3. Voluntary Dedication. Tenant shall have no right to voluntarily devote
or dedicate any portion of the Premises to public use without Landlord’s prior written consent.

Section 8.4. Cooperation. Landlord and Tenant covenant and agree to fully cooperate
in any condemnation, eminent domain, or similar proceeding in order to maximize the total award
receivable in respect thereof.

ARTICLE 9: ASSIGNMENT AND SUBLETTING; ENCUMBRANCES

Section 9.1. Assignment and Subleases. Tenant may assign or sublease its rights
hereunder only with Landlord’s prior written approval; provided, however, that
Tenant may assign or sublease its rights hereunder to a Tenant Affiliate without Landlord’s prior
approval. For the purposes of this Lease, a “Tenant Affiliate” shall mean any entity that
is controlling, controlled by, or under common control with, Tenant and the term “control” (and the
correlative terms) shall mean the power, whether by contract, equity ownership, or otherwise, to
direct the policies or management of an entity. Landlord’s consent shall not be unreasonably
withheld or delayed for any assignment or sublease of this Lease to any assignee or sublessee which
is reasonably capable of performing hereunder. As used in this Lease the term “sublease”
shall include any leases, licenses, occupancy agreements, franchise or other similar rights,
agreements, or arrangements of whatever nature relating to the use or occupancy of any part of the
Premises.

Section 9.2. Encumbrances. Other than its leasehold estate, Tenant shall not encumber
any interest in the Premises. Further and without limitation upon the foregoing, Tenant shall have
the right to encumber Tenant’s Equipment or other inventory of Tenant located on the Premises with
liens for purchase money or other uses, and Landlord agrees, at Tenant’s expense, to take such
actions and execute such documents as Tenant may reasonably request with respect to any such
leasehold deed of trust.

Section 9.3 Landlord’s Assignment. Landlord is expressly given the right to assign
all of its interest, rights, or obligations under the terms of this Lease to any party acquiring
Landlord’s underlying interest in the Premises, provided that any such assignee expressly assume
Landlord’s obligations under this Lease.

ARTICLE 10: WARRANTY OF PEACEFUL POSSESSION

Section 10.1. Warranty of Peaceful Possession. Landlord covenants that Tenant, on
paying the Base Rent and performing and observing the covenants and agreements herein contained and
provided to be performed by Tenant, shall and may peaceably and quietly have, hold, occupy, use,
and enjoy the Premises during the Term, and may exercise all of its rights hereunder, subject only
to the provisions of this Lease, all matters of record affecting the Premises, and applicable
governmental laws, rules, and regulations; and Landlord agrees to warrant and forever defend
Tenant’s right to such occupancy, use, and enjoyment and the title to the Premises against the
claims of any and all persons whomsoever lawfully claim the same, or any part thereof, by, through
or under Landlord, but not otherwise, subject only to provisions of this Lease, all matters of
record affecting the Premises, and all applicable governmental laws, rules, and regulations.

ARTICLE 11: DEFAULT AND REMEDIES

Section 11.1. Default. Each of the following shall be deemed a “Default” or
“Event of Default” by Tenant hereunder and a material breach of this Lease:

(a) Whenever Tenant shall fail to pay any installment of Rent or any other sum payable by
Tenant to Landlord under this Lease on the date upon which the same is due to be paid, and such
default shall continue for five (5) business days after Tenant shall have been given written notice
specifying same.

(b) Whenever Tenant shall fail to keep, perform, or observe any of the covenants, agreements,
terms, or provisions contained in this Lease that are to be kept or performed by Tenant other than
with respect to payment of Rent or other liquidated sums of money, and Tenant shall fail to
commence and take such steps as are necessary to remedy the same within thirty (30) days after
Tenant shall have been given a written notice specifying the same, or having so commenced, shall
thereafter fail to proceed diligently and with continuity to remedy the same as soon as
practicable;

(c) Whenever an involuntary petition shall be filed against Tenant under any bankruptcy or
insolvency law or under the reorganization provisions of any law of like import or whenever a
receiver of Tenant, or of all or substantially all of the property of Tenant, shall be appointed
without acquiescence, and such petition or appointment is not discharged or stayed within sixty
(60) days after the happening of such event; or

(d) Whenever Tenant shall make an assignment of its property for the benefit of creditors or
shall file a voluntary petition under any bankruptcy or insolvency law, or seek relief under any
other law for the benefit of debtors.

Section 11.2. Remedies.

(a) Upon any Event of Default, Landlord may, in addition to all other rights and remedies
afforded Landlord hereunder or by law, take any of the following actions:

(i) Terminate this Lease by giving Tenant written notice thereof, in which event,
Tenant shall pay to Landlord the sum of (1) all Rent accrued hereunder through the date of
termination, (2) all amounts due under Section 11.2(b), and (3) an amount equal to (A) the
total Rent that Tenant would have been required to pay for the remainder of the Term (but
excluding any unexercised Extension Terms) discounted to present value at a per annum rate
equal to the rate of interest set forth for 26-week U.S. governmental bills sold at a
discount from face value in units of $10,000 to $1,000,000 as published on the date this
Lease is terminated by The Wall Street Journal, in its listing of “Money Rates” under the
heading “Treasury Bills” (or, if no such rate is published, the “Discount Rate” as published
on such date under the “Money Rate” listing), minus (B) the then present fair rental
value of the Premises for such period, similarly discounted; or

(ii) Terminate Tenant’s right to possess the Premises without terminating this Lease by
giving written notice thereof to Tenant, in which event Tenant shall pay to Landlord (1) all
Rent and other amounts accrued hereunder to the date of termination of possession, (2) all
amounts due from time to time under Section 11.2(b), and (3) all Rent and other sums
required hereunder to be paid by Tenant during the remainder of the Term, diminished by any
net sums thereafter received by Landlord through reletting the Premises during such period.
Landlord shall use reasonable efforts to relet the Premises on such terms and conditions as
Landlord, in its sole discretion, may determine (including a term different than the Term,
rental concessions, alterations to, and improvement of, the Premises). Tenant shall not be
entitled to the excess of any consideration obtained by reletting over the rent due
hereunder. Reentry by Landlord in the Premises shall not affect Tenant’s obligations
hereunder for the unexpired Term; rather, Landlord may, from time to time, bring action
against Tenant to collect amounts due by Tenant, without the necessity of Landlord’s waiting
until the expiration of the Term. Unless Landlord delivers written notice to Tenant
expressly stating that it has elected to terminate this Lease, all actions taken by Landlord
to exclude or dispossess Tenant of the Premises shall be deemed to be taken under this
Section 11.2(a)(2). If Landlord elects to proceed under this Section 11.2(a)(ii), it may at
any time elect to terminate this Lease under Section 11.2(a)(i).

Additionally, Landlord may perform Tenant’s unperformed obligations hereunder.

(b) Tenant shall pay to Landlord all reasonable costs incurred by Landlord (including court
costs and reasonable attorneys’ fees and expenses) in obtaining possession of the Premises and
removing and storing Tenant’s or any other occupant’s property. Landlord’s acceptance of Rent
following an Event of Default shall not waive Landlord’s rights regarding such Event of Default.
No waiver by Landlord of any violation or breach of any of the terms contained herein shall waive
Landlord’s rights regarding any future violation of such term or violation of any other term. If
Landlord repossesses the Premises pursuant to the authority herein granted, Landlord shall
relinquish possession of all or any portion of such furniture, fixtures, equipment and other
property to any person (a “Claimant”) who presents to Landlord a copy of any instrument
executed by Tenant (or any predecessor of Tenant) granting Claimant the right under various
circumstances to take possession of such property. Landlord will either (i) escort Tenant to the
Premises to retrieve any property of Tenant and/or its employees or (ii) obtain a list from Tenant
of such property of Tenant and/or its employees, and make such property available to Tenant and/or
Tenant’s employees; however, Tenant first shall pay in cash all costs and estimated expenses to be
incurred in connection with the removal of such property and making it available. The rights of
Landlord herein stated are in addition to any and all other rights that Landlord has or may
hereafter have at law or in equity.

(c) In the event of an Event of Default, Landlord shall use all reasonable efforts to mitigate
Tenant’s damages.

ARTICLE 12: MISCELLANEOUS

Section 12.1 Notices. Any notice provided for or permitted to be given hereunder must
be in writing and may be given by (i) depositing same in the United States Mail, postage prepaid,
registered or certified, with return receipt requested, addressed as set forth in this Section 12.1
(which notice shall be effective upon being deposited with the U.S. Postal Service); or (ii)
delivering (including, without limitation, by telefax) the same to the party to be notified, which
notice shall be effective upon delivery at the address of the addressee. For purposes of notice
the addresses of the parties hereto shall, until changed, be as follows:

	 	 	 	 	 
	Landlord:
	 	Albert A. Messier

	 
	 	 	 	 
	 
	 	1605 Commerce Drive
	 
	 	Bourbonnais, Illinois  60914

	with a copy to:
	 	Dennis Marek

	 
	 	Ackman, Marek, Meyer & Boyd, Ltd.

	 
	 	1 Dearborn Square, Suite 400
	 
	 	Kankakee, IL  60901

	 
	 	Facsimile: 815.933.6623

	Tenant:
	 	Collegiate Pacific Inc.

	 
	 	 	 	 
	 
	 	13950 Senlac
	 
	 	Suite 100

	 
	 	Farmers Branch, TX 75234

	 
	 	Fax:  972.243.8316

	 
	 	Attention:  Michael J. Blumenfeld

	and to:
	 	Vinson & Elkins LLP

3700 Trammel Crow Center

2001 Ross Avenue

Dallas, TX 75201

Fax: 214.999.7857

Attention: Alan J. Bogdanow

The parties hereto shall have the right from time to time to change their respective addresses for
purposes of notice hereunder to any other location within the United States by giving a notice to
such effect in accordance with the provisions of this Section 12.1.

Section 12.2 Landlord Default. Landlord shall not be in default of its obligations
hereunder unless and until Landlord shall have failed to perform any such obligations within thirty
(30) days after written notice to Landlord by Tenant, specifically describing such failure. In the
event of any such Landlord default, Tenant may pursue one or more or all of the following remedies
(i) take any reasonable action to cure Landlord’s default for the account of Landlord, and any
amount paid or expense incurred by Tenant in the performance of any such matter for the account of
Landlord shall be immediately reimbursed by Landlord to Tenant upon Landlord’s receipt of a demand
therefore, (ii) terminate this Lease upon written notice to Landlord, or (iii) pursue all or any
other remedies that Tenant may have at law, in equity or otherwise. Pursuit of any of the
foregoing remedies shall not preclude pursuit of any of the other remedies herein provided.

Section 12.3 Modification and Non-Waiver. No variations, modifications, or changes
herein or hereof shall be binding upon any party hereto unless set forth in a writing executed by
it or by a duly authorized officer or agent. No waiver by either party of any breach or default of
any term, condition, or provision hereof, including without limitation the acceptance by Landlord
of any Rent at any time or in any manner other than as herein provided, shall be deemed a waiver of
any other or subsequent breaches or defaults of any kind, character, or description under any
circumstance. No waiver of any breach or default of any term, condition, or provision hereof shall
be implied from any action of any party, and any such waiver, to be effective, shall be set out in
a written instrument signed by the waiving party.

Section 12.4 Governing Law. This Lease shall be construed and enforced in accordance
with the laws of the State of Illinois.

Section 12.5 Number and Gender; Captions; References. Pronouns, wherever used herein,
and of whatever gender, shall include natural persons and corporations and associations of every
kind and character, and the singular shall include the plural wherever and as often as may be
appropriate. Article and section headings in this Lease are for convenience of reference and shall
not affect the construction or interpretation of this Lease. Whenever the terms “hereof”,
“hereby”, “herein”, or words of similar import are used in this Lease they shall be construed as
referring to this Lease in its entirety rather than to a particular section or provision, unless
the context specifically indicates to the contrary. Any reference to a particular “Article” or
“Section” shall be construed as referring to the indicated article or section of this Lease.

Section 12.6 Estoppel Certificate. Landlord and Tenant shall execute and deliver,
promptly upon any request therefor by the other party, a certificate addressed as indicated by the
requesting party and stating:

(a) whether or not this Lease is in full force and effect;

(b) whether or not this Lease has been modified or amended in any respect, and submitting
copies of such modifications or amendments;

(c) whether or not there are any existing defaults hereunder known to the party executing the
certificate, and specifying the nature thereof;

(d) whether or not any particular Article, Section, or provision of this Lease has been
complied with to the knowledge of the party executing the certificate; and

(e) such other factual matters as may be reasonably requested.

Section 12.7 Severability. If any provision of this Lease or the application thereof
to any person or circumstance shall, at any time or to any extent, be invalid or unenforceable, and
the basis of the bargain between the parties hereto is not destroyed or rendered ineffective
thereby, the remainder of this Lease, or the application of such provision to persons or
circumstances other than those as to which it is held invalid or unenforceable, shall not be
affected thereby.

Section 12.8 Attorneys’ Fees. If litigation is ever instituted by either party hereto
to enforce, or to seek damages for the breach of, any provision hereof, the prevailing party
therein shall be promptly reimbursed by the other party for all attorneys’ fees reasonably incurred
by the prevailing party in connection with such litigation.

Section 12.9 Surrender of Premises; Holding Over. Upon termination or the expiration
of this Lease, Tenant shall peaceably quit, deliver up, and surrender the Premises, and, except as
otherwise specifically provided in Section 8.1 or 8.2, leave the Premises in good order, repair,
and condition, normal wear and tear excepted. Upon such termination or expiration Landlord may,
without further notice, enter upon, reenter, possess, and repossess itself of the Premises by
force, summary proceedings, ejectment, or otherwise, and may dispossess and remove Tenant from the
Premises and may have, hold, and enjoy the Premises and all rental and other income therefrom, free
of any claim by Tenant with respect thereto. Landlord shall not be deemed to have accepted a
surrender of the Premises by Tenant, or to have extended the Term, other than by execution of a
written agreement specifically so stating.

Section 12.10 Relation of Parties. It is the intention of Landlord and Tenant to
hereby create the relationship of landlord and tenant, and no other relationship whatsoever is
hereby created. Nothing in this Lease shall be construed to make Landlord and Tenant partners or
joint venturers or to render either party hereto liable for any obligation of the other.

Section 12.11 Entireties. This Lease constitutes the entire agreement of the parties
hereto with respect to its subject matter, and all prior agreements with respect thereto are merged
herein. Any agreements entered into between Landlord and Tenant of even date herewith are not,
however, merged herein.

Section 12.12 Recordation. Landlord and Tenant will, at the request of either of
them, promptly execute an instrument in recordable form constituting a short form of this Lease,
which shall be filed for record in the appropriate public records of Kankakee County, Illinois.

Section 12.13 Successors and Assigns.This Lease shall constitute a real right and
covenant running with the Premises, and, subject to the provisions hereof pertaining to Tenant’s
rights to assign or sublet, this Lease shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. Whenever a reference is made herein to
either party, such reference shall include the party’s successors and assigns.

Section 12.14 Entry. Landlord, its agents and employees, shall have the right to
enter the Premises from time to time at reasonable times following reasonable prior notice to
Tenant to examine the Premises, to show them to prospective purchasers and other persons, and to
make such repairs, alterations, improvements or additions as may be permitted hereunder. Base Rent
shall not abate during any such entry by Landlord, including without limitation, during the period
of any such repairs, alterations, improvements, or additions. In addition, during any apparent
emergency, Landlord, its agents and employees, may enter the Premises forcibly at any time without
liability therefor and without in any manner affecting Tenant’s obligations under this Lease.

Section 12.15 No Third Parties Benefited. The terms and provisions of this Lease
Agreement are for the sole benefit of Landlord and Tenant, and no third party whatsoever, is
intended to benefit therefrom.

Section 12.16 Survival. Any terms and provisions of this Lease pertaining to rights,
duties, or liabilities extending beyond the expiration or termination of this Lease shall survive
the end of the Term. The obligations to pay any amounts of money owing with respect to the Term
shall survive the expiration or termination of this Lease.

Section 12.17 Mortgages. Tenant hereby agrees that this Lease shall be subject and
subordinate to any deed of trust, mortgage or other security instrument (each, a
“Mortgage”), or any master lease or primary lease (each a “Primary Lease”), that
now or hereafter covers the Premises and to all renewals, modifications, consolidations,
replacements and extensions thereof and to each advance made or hereafter to be made thereunder,
provided the holder of such Mortgage or the lessor under such Primary Lease (and any of their
respective successors) (collectively, “Landlord’s Mortgagee”) delivers to Tenant a
Non-disturbance Agreement in a form reasonably acceptable to the Tenant whereby the Landlord’s
Mortgagee agrees not to disturb Tenant’s possession of the Premises so long as Tenant is not in
default under this Lease and further agrees to continue to recognize the interest of Tenant under
this Lease and that this Lease will continue with the same force and effect, without the necessity
of executing any new or amended lease, as if such holder or lessor (or its successor) had entered
into a lease on the same terms and conditions as those contained in this Lease. In confirmation of
such subordination, Tenant shall, at Landlord’s request, execute promptly any appropriate
certificate or instrument that Landlord may request. In the event of the enforcement by the
Landlord’s Mortgagee of the remedies provided for by law or by any such Mortgage or Primary Lease,
Tenant will, upon request of any person or party succeeding to the interest of said trustee,
beneficiary or landlord as a result of such enforcement, automatically become the tenant of, and
attorn to, such successor in interest without change in the terms or provisions of this Lease.

Section 12.18 Waiver of Landlord Lien. (a) Landlord hereby expressly waives any
statutory and/or common law landlord’s liens (as same may be enacted or may exist from time to
time) and any and all rights granted under any present or future laws to levy or distrain for rent
(whether in arrears or in advance) against any property of Tenant at the Premises and further
agrees to execute any reasonable instruments evidencing such waiver at any time or times hereafter
upon Tenant’s request.

(b) Landlord understands that Tenant may, from time to time, grant to its lender
(“Tenant’s Lender”) security interests in Tenant’s Equipment and other personal property
and fixtures to secure loans made for the purchase of such property or funds advanced under lines
of credit, revolving loans or other credit facilities. Landlord (1) consents to the granting of
such security interests, (2) agrees to give Tenant’s Lender written notice of any default by Tenant
under this Lease and allow Tenant’s Lender a reasonable time to cure such default (if Tenant’s
Lender so elects) before terminating this Lease or exercising any other remedy as a result of such
default by Tenant, (3) agrees to allow Tenant’s Lender access to the Premises at all reasonable
times in connection with the exercise by Tenant’s Lender of any rights with respect to any
collateral located in the Premises, and (4) agrees to execute any instruments reasonably requested
by Tenant’s Lender to confirm the matters described above and such other matters concerning the
rights and remedies of Tenant’s Lender with respect to such collateral.

Section 12.19 Right of First Refusal. The Landlord hereby grants to the Tenant the
right to match any bona fide offer to purchase the Premises upon the same terms and conditions of
said bona fide offer to purchase. In the event the Landlord receives a bona fide offer to purchase
the Premises that the Landlord intends to accept, the Landlord shall notify the Tenant in writing
of said offer and its terms; thereafter, the Tenant shall have twenty-one (21) days to notify the
Landlord in writing that the Tenant will match said offer and purchase the Premises upon such
terms. If the Tenant fails to so notify the Landlord within said twenty-one (21) days, the
Landlord shall be free to proceed to sell the Premises pursuant to said bona fide offer. Upon the
request of the Tenant, the Landlord and the Tenant agree to execute a memorandum (prepared by and
at the cost of the Tenant) evidencing this right of first refusal hereby granted to the Tenant by
the Landlord for purposes of recording (at the Tenant’s sole cost) and memorializing the same.

EXECUTED on August 3rd, 2005, to be effective as of the Commencement Date.

	 	 	 	 	 
	LANDLORD:

	 	 	 	/s/ Albert A. Messier
	
 
	 	 
	 	 
	
 
	 	ALBERT A. MESSIER
	 	

	 
	 	 	 	 
	TENANT:

	 	SALKED & SONS, INC.,

a Delaware corporation
	 	

	 
	 	 	 	 
	
 
	 	By:
	 	/s/ Michael J. Blumenfeld
	
 
	 	 	 	 

Name: Michael J. Blumenfeld Title: Chief Executive Officer

1

EXHIBIT A

Description of Land

All of Lot 7 in the Interstate Business Center, 1st Addition in part of the East Half of the
Northeast Quarter of Section 17, Township 31 North, Range 12 East of the 3rd Principal Meridian, in
Kankakee County, Illinois, containing approximately 1.68 acres.

2

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