Exhibit 10.91
PORTIONS OF THIS EXHIBIT 10.91 MARKED BY AN *** HAVE BEEN OMITTED
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

 

 

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CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.
DMG
CKI/CKJE et al
Bridge Apparel — C&SA
18 Jan 11/26 Apr 11/2 Jun 11/9 Jun 11/16 Jun 11/12 Aug 11/12 Sep 11/24 Oct 11/26
Oct 11
D#8
31 October 2011
Warnaco Italy S.r.l. f/k/a
CK Jeanswear Europe S.r.l. (“CKJE”)
Via Provinciale Lucchese, 181/11
Sesto Fiorentino, Florence
Italy 50019
WF Overseas Fashion C.V. (“WFOF”)
501 Seventh Avenue
New York, New York 10018
United States

      Re:  
Calvin Klein Inc. (“CKI” or “Licensor”) and CKJE, and WFOF “CK/Calvin Klein
Bridge Apparel License” d. 31 Jan 06 as amended (“Bridge Apparel License”)

Ladies and Gentlemen:
CKI on the one hand and CKJE and WFOF (for themselves and their 100% owned
affiliates), on the other hand (hereinafter collectively as “Licensee”), are
parties to a license as captioned above, for the production and wholesale sale
of CK/Calvin Klein bridge apparel articles.
The parties agree, effective as of the date set forth above upon full execution
hereof, to amend the Bridge Apparel License, to expand the Territory to include
certain Central and South American countries as set forth below as an additional
region (“C&S America” or “C&SA Region”), under certain conditions as set forth
herein (“Amendment”) and otherwise as set forth in such Bridge Apparel License.
1. As to the C&SA Region, Licensed Products shall include those from each
seasonal Collection under the Bridge Apparel License together with those bridge
apparel localized Products referenced in §10 below, as approved by CKI.

 

 

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CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.
2. The specific countries listed below in C&S America shall, subject to terms of
this Amendment, be added to the Territory.

      Central America   South America
Belize
  Argentina
British West Indies
  Bolivia
Leeward Islands
  Brazil
Anguilla, Barbudo, St. Kitts
  Chile
(St. Christopher), Nevis
  Colombia
Windward Islands
  Ecuador
Grenada, St. Vincent, St. Lucia
  French Guyana
Costa Rica
  Guyana
Greater Antilles
  Paraguay
Haiti
  Peru
Dominican Republic
  Suriname
Grand Cayman Island
  Uruguay
Little Cayman Island
  Venezuela
Jamaica
   
Guatemala
   
El Salvador
   
Honduras
   
Nicaragua
   
Panama
   
Tortola
   
Virgin Gorda
   
(but specifically excluding
   
Cuba)
   

3. Licensee shall maintain a showroom in Sao Paulo, Brazil for the purpose of
displaying, promoting and selling to accounts in C&S America the following
products: Licensed Products, as well as the “CK/Calvin Klein” bridge accessories
articles under the “CK/Calvin Klein” bridge accessories license, dated 31
January 2006, as amended, and, as applicable, the “Calvin Klein Jeans” jeans
apparel articles under the jeans apparel license for North, Central, and South
America, dated 8 August 1994, as amended, and the “Calvin Klein Jeans” jeans
accessories articles under the jeans accessories license, dated 31 January 2006,
as amended.
4. The Minimum Net Sales Thresholds (“MNST’s”) for the C&SA Region (which are
separate and apart from the other MNST’s under the Bridge Apparel License) for
each Annual Period are as indicated below:

                  Annual Period   Year     Minimum Net Sales Thresholds*  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  
***
    ***       *** **
***
    ***       *** **
***
    ***       *** **

      *  
***
  **  
***

 

 

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CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.
If Licensee fails to attain the MNST’s of Licensed Products in the C&SA Region
during any Annual Period, as set forth above (except as specifically indicated
in the immediately following paragraph), such failure shall not be considered a
breach or default nor give rise to the right to terminate under §8.3 (I) or the
best efforts provision of §1.5.1 for such Annual Period, if within thirty
(30) days following the close of the applicable Annual Period in which Licensee
has failed to meet such MNST amounts, Licensee shall remit additional
“shortfall” Percentage Fees computed at the regular Percentage Fee rate, and
short fall Advertising Expenditure amounts, computed at the regular percentage
rate, based on the difference in the actual Net Sales during such Annual Period
(determined on the quarterly basis and year to date basis as to Percentage Fees
on sales) and such MNST amount without regard to Minimum Guaranteed Fees and
Minimum Advertising Expenditures paid or payable as to such Annual Period (or
reduced Percentage Fee rates for certain close-outs goods as applicable), for
the C&SA Region. Licensor shall have no right to terminate this Agreement for
the C&SA Region pursuant to §8.3 (I) or pursuant to §1.5.1 solely as a result of
failure to attain the MNST’s if Licensee timely remits the shortfall payments
described herein.
Notwithstanding the foregoing, if Licensee has failed to achieve the MNST’s set
forth above for the C&SA Region in the *** consecutive Annual Periods of the
then current *** year period under the Bridge Apparel License (i.e., ***, ***,
*** consecutive Annual Periods), or the MNST’s for the *** consecutive Annual
Periods (or the ***, *** consecutive Annual Periods) of the then current ***
year period, CKI may, on twelve (12) months prior written notice in either
instance, terminate this Agreement for the C & SA Region. Expiration or
termination of the C & SA Region, or of the Bridge Apparel License, shall not
affect any obligation of the Licensee to make payments hereunder accruing prior
to such expiration or termination.
Net Sales in the C&SA Region will not be applied towards satisfaction of the
other MNST’s under §2.1 of the Bridge Apparel License.
5. The Percentage Fee rate applicable to all Net Sales for the C&SA Region shall
be at the rate of ***.
Percentage Fees and advertising and other expenditure and/or remittable amounts
such as for co-op and public relations will be accounted for separately but
payable or expendable and/or remittable at the rate of ***.

 

 

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CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.
§4.1.4 of the Bridge Apparel License, ***, is hereby deleted in its entirety.
6. All caps, limits and percentage limits under the Bridge Apparel License
applicable to discounts, deductions, reduced Percentage Fee rates (i.e. for OP
sales of Close-out Articles) shall be separately applied to Net Sales in the
C&SA Region from the rest of the Territory.
7. The MGF’s in the C&SA Region for each Annual Period shall be as indicated
below (and payable as set forth in §4.1.3 under the Bridge Apparel License), and
may be credited towards earned Percentage Fees on Net Sales in the C&SA Region
only.

                  Annual Period   Year     Minimum Guaranteed Fee (MGF) (US$)  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  
***
    ***       *** **
***
    ***       *** **
***
    ***       *** **
***
    ***       *** **
***
    ***       *** **
***
    ***       *** **

      **  
***

8. The MAE for each Annual Period, for the C&SA Region shall be as provided
below as to the minimum dollar amounts and otherwise as provided under §5.1.2,
and may be credited towards earned advertising amounts on Net Sales in the C&SA
Region only.

                  Annual Period   Year     Minimum Advertising Expenditure  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  
***
    ***       ***  

 

 

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CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.
9. The various amounts payable, expendable or reimbursable to CKI by Licensee
(e.g. §6.8, §7.5.2) as to any and all other expenditures and out-of-pocket
reimbursement and travel and related (e.g. room and board) costs and expenses,
and maximum and/or annual amounts referenced or contemplated thereunder shall
apply separately and in addition to those “limits” referred to therein (as
applicable to such provisions, which relate to seasonal Collections of Licensed
Products and also to anti-counterfeiting and similar matters), for the C & SA
Region (e.g. §6.8, US$25,000 maximum amount referenced shall apply separately up
to US$25,000 as to the C & SA Region).
10. The parties agree to reasonably co-operate with each other in connection
with requests by Licensee or recommendations of CKI for additions of localized
Products in accordance with the usual development, production, and various
review and approval procedures related to the seasonal collections of Licensed
Products. Licensee acknowledges that CKI will incur additional costs and
expenses (including, without limitation, additional travel costs and expenses)
in connection with the development, review and approval of any such localized
Products, and Licensee agrees to pay (or reimburse) CKI such additional costs
and expenses in accordance with the Bridge Apparel License. The provisions of
§5.4 of the Bridge Apparel License relating to samples shall separately and
additionally apply as to C&S America and seasonal Collections of Licensed
Products and Promo Articles.
11. In addition to any and all other termination provisions under the Bridge
Apparel License, this Amendment and the C&SA Region as part of the Territory
shall terminate automatically and forthwith on the earliest to terminate of:

  (i)  
Central & South America collectively (or either Central America or South America
separately) under the Jeans Apparel License, covering North, Central, and South
America, dated 8 August 1994, as amended (“Jeans Apparel License”)
    (ii)  
the Jeans Apparel License,
    (iii)  
the Bridge Accessories License, dated as of 31 January 2006 as amended.

12. Except as modified hereby, the Bridge Apparel License, shall remain in full
force and effect. Capitalized terms used herein and not otherwise defined
herein, shall have the same meaning as set forth in the Bridge Apparel License.
This Amendment may not be modified or terminated except by written amendment
signed and delivered by the parties.

            Very truly yours,

Calvin Klein, Inc.
      By:   /s/ Tom Murry    

Acknowledged and Agreed to:
Warnaco Italy S.r.l.

         
By:
  /s/ Stanley Silverstein
 
   

 

 

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CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.
WF Overseas Fashions C.V.
By: Warnaco U.S., Inc., its general partner

         
By:
  /s/ Stanley Silverstein