What is the main purpose of this 8-K/A filing?

The main purpose is to amend a prior 8-K filing to provide details on a new Covenant Not to Compete and Non-Disclosure Agreement entered into between NIKE, Inc. and its President and CEO, Mark G. Parker, on February 28, 2006.

What are the key terms of the new Covenant Not to Compete and Non-Disclosure Agreement?

The agreement includes a two-year non-compete period following the termination of Mr. Parker's employment. It also outlines monthly payments during this period, with the amount dependent on whether the termination is initiated by the Company or is a voluntary resignation by Mr. Parker. The previous agreement's terms for voluntary resignation in 2007 were more favorable to Mr. Parker.

Under what circumstances would Mr. Parker receive payments during the non-compete period?

Mr. Parker would receive monthly payments equal to 1/12th of his then current Annual Nike Income if his employment is terminated by the Company. If he voluntarily resigns, he would receive monthly payments equal to 1/24th of his then current Annual Nike Income. These payments are contingent on the non-compete covenant not being waived.

Can the non-compete covenant be waived?

Yes, the non-compete covenant can be mutually waived if Mr. Parker is terminated without cause. The Company may unilaterally waive the covenant if Mr. Parker is terminated for cause. If the covenant is waived, the Company is not obligated to make the corresponding severance payments.

NKE 8-K: Leadership Changes

Summary

This 8-K/A filing from NIKE, Inc. (NKE) serves as an amendment to a previous report concerning the appointment of Mark G. Parker as President and CEO. The primary purpose of this amendment is to provide details on a new Covenant Not to Compete and Non-Disclosure Agreement (the "Agreement") entered into by the Company and Mr. Parker on February 28, 2006. This new agreement supersedes a previous one and outlines specific terms related to non-competition and severance payments should Mr. Parker's employment be terminated.

Key Highlights

1Amendment to a previous 8-K filing regarding CEO Mark G. Parker's appointment.
2Disclosure of a new Covenant Not to Compete and Non-Disclosure Agreement between NIKE and Mark G. Parker, dated February 28, 2006.
3The new agreement supersedes a prior agreement dated December 28, 2004.
4The non-compete clause extends for two years following the termination of Mr. Parker's employment.
5Severance payments are stipulated for a two-year non-compete period if employment is terminated by the Company.
6Payment terms differ based on whether termination is by the Company or voluntary resignation by Mr. Parker.
7The agreement outlines conditions for waiving the non-compete covenant in cases of termination for cause or without cause.

NIKE, Inc. 8-K/A Report, Executive Changes (Mar 6, 2006)

Summary

Key Highlights

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