EXHIBIT 10.31 - XXXXXX LICENSE RENEWAL
[ Xxxxxx Letterhead]
Xxxxxxx X. Xxxxxx
General Counsel
By Fax (000.000.0000) and Regular Mail
March 27, 2002
Gerber Childrenswear, Inc.
c/o Xx. Xxxxx Xxxxxxx
0000 Xxxxxxxx, Xxxxx 000
Xxx Xxxx, XX 00000
Re: License Agreement Renewal Confirmation
Ladies/Gentlemen:
This letter concerns the Trademark License Agreement between Xxxxxx Sporting
Goods Co. ("Xxxxxx") and Auburn Hosiery Xxxxx, Inc., dated as of May 28, 1997,
and amended of December 8, 1997 (the "Agreement").
Xxxxxx confirms its receipt of your renewal notice dated January 31, 2002 (copy
attached). Xxxxxx confirms that such notice extended the Term of the Agreement
through December 31, 2007.
Xxxxxx also confirms its understanding, under the terms of the December 8, 1997
amendment, that all of the outstanding capital stock Auburn Hosiery Xxxxx, Inc.
was to be purchased by Gerber Childrenswear, Inc. Please let me know whether
this did or did not in fact occur, and whether Auburn Xxxxx, Inc. does or does
not exist as a legal entity today.
Wilson reserves all rights under the Agreement, as renewed.
Sincerely,
/s/ Xxx Xxxxxx
Xxx Xxxxxx
XXXXXX SPORTING GOODS CO.
0000 X. XXXX XXXX XXXXXX
XXXXXXX, XX 00000
TEL 000-000-0000 FAX 000-000-0000
EMAIL: XXXXXXXX@XXXXXXXXXXXX.XXX
ONLINE: xxxx://xxx.xxxxxxxxxxxx.xxx
[XXXXXX SPORT SOCKS COMPANY LETTERHEAD]
January 31, 2002
Xx. Xx Xxxxxx
Director of Licensing
Xxxxxx Sporting Goods Company
0000 Xxxx Xxxx Xxxx Xxxxxx
Xxxxxxx, Xx. 00000-3584
Dear Al:
For your information, attached is a recap of our Xxxxxx sales for the year 2001.
Our total sales for both the U.S. and International equate to $57,251,684. Total
royalties sent to Xxxxxx equal $2,715,067.
Despite losing K-Mart business of over 4 million dollars for 2001, our total
sales were down approximately 1.1 million from last year. Our Pro-Staff program
continues to benefit us with new programs in select Sporting Goods and Retail
accounts.
Our license agreement dated 5/28/97 gives us an option to renew for the years
2003-2007. This option is based on our achieving royalty bearing sales for years
1998 though 2001 of 110% of the listed targeted sales for those years. The
license spells out the total targeted sales for those years to be 204 million.
110% of that figure would equate to $224,400.000. Our total royalty bearing
sales for years in question equate to $228,786.782. We, therefore, formerly
advise you that we wish to exercise our option for years 2003-2007. Please
confirm in writing that the renewal option is in place.
We look forward to our continued growth with the Xxxxxx Sport sock brand.
Sincerely,
/s/ Xxxxx Xxxxxxx
Xxxxx Xxxxxxx
President/C.O.O.
KA:am
Enc.
Cc: Xx. Xxx Xxxxxx
Xx. Xxx Xxxxx
RENEWAL OPTION ACCEPTED
/s/ Xx Xxxxxx
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2/14/02
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2001 Xxxxxx Sales
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Quarter Xxxxxx, U.S. International Royalty
1st 10,855,984 3,215,258 $844,274
2nd 11,131,381 3,066,459 $711,489
3rd 9,397,780 3,820,091 $528,715
4th 12,972,531 2,792,200 $630,589
======================================================================
44,357,676 12,894,008 $2,715,067
Total Xxxxxx Sales = 57,251,684
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Xxxxxx Sport Socks
Auburn Hosiery Xxxxx
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Target Actual Royalty
Year Sales Bearing Sales
--------------------------------------------------------------------------------
1998 48,000,000 53,135,854
1999 50,000,000 60,072,078
2000 52,000,000 58,327,166
2001 54,000,000 57,251,684
================================================================================
204,000,000 228,786,782
x 110%
224,400,000
Total Royalty's Paid (4 Years)
$10,851,472
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