Collegiate Pacific Inc. entered into a Services Agreement with Sports Supply Group, Inc., in which it owns a 73% share. Under the terms of the Services Agreement, SSG will provide BOO with additional warehouse storage and office space at SSGs Dallas, Texas facilities, as well as will provide Collegiate Pacific and its wholly-owned subsidiaries with various payroll processing, human resource and risk management services. In addition, SSG will make a member of its financial management team available to assist the Company on various financial management projects on a limited, as-needed basis. The schedules to the Services Agreement contain a more detailed description of the services and the fees to be paid to SSG by the Company for those services. The Company and SSG engaged in arms-length negotiations of the fees and believe in each instance that the fees to be charged for the various services are consistent with comparable market rates. The foregoing description of the Services Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Services Agreement, a copy of which is attached as Exhibit 10.1 and incorporated herein by reference.
