Document:

exv4w2

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT dated August 3, 2010 (the “Agreement”) is entered into by
and among Tenneco Inc., a Delaware corporation (the “Company”), the guarantors listed in Schedule 1
hereto (the “Guarantors”), and the several initial purchasers listed in Schedule 2 hereto (the
“Initial Purchasers”), for whom Deutsche Bank Securities Inc. is acting as representative.

     The Company, the Guarantors and the Initial Purchasers are parties to the Purchase Agreement
dated July 29, 2010 (the “Purchase Agreement”), which provides for the sale by the Company to the
Initial Purchasers of $225 million aggregate principal amount of the Company’s 73/4% Senior Notes due
2018 (the “Securities”), which will be guaranteed by each of the Guarantors. As an inducement to
the Initial Purchasers to enter into the Purchase Agreement, the Company and the Guarantors have
agreed to provide to the Initial Purchasers and their direct and indirect transferees the
registration rights set forth in this Agreement. The execution and delivery of this Agreement is a
condition to the closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

          1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

     “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed.

     “Closing Date” shall mean the Closing Date as defined in the Purchase Agreement.

     “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

     “Exchange Act” shall mean the Securities Exchange Act of 1934 and the rules and regulations
thereunder, as amended from time to time.

     “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

     “Exchange Offer” shall mean the exchange offer by the Company and the Guarantors of Exchange
Securities for Registrable Securities pursuant to Section 2(a) hereof.

     “Exchange Offer Registration” shall mean a registration under the Securities Act effected
pursuant to Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall mean an exchange offer registration statement on
Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to
such registration statement, in each case including the Prospectus contained therein, all exhibits
thereto and any document incorporated by reference therein.

 

 

     “Exchange Securities” shall mean senior notes issued by the Company and guaranteed by the
Guarantors under the Indenture containing terms identical to the Securities (except that the
Exchange Securities will not be subject to restrictions on transfer or to any increase in annual
interest rate for failure to comply with this Agreement) and to be offered to Holders of Securities
in exchange for Registrable Securities pursuant to the Exchange Offer.

     “Filing Date” shall mean with respect to the Shelf Registration Statement required to be filed
pursuant to Section 2(b)(iii), the 60th day after the delivery of a notice pursuant to Section
2(b)(iii).

     “Guarantors” shall have the meaning set forth in the preamble and shall also include any
Guarantor’s successors.

     “Holders” shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect transferees who become
owners of Registrable Securities under the Indenture; provided that for purposes of Sections 4 and
5 of this Agreement, the term “Holders” shall include Participating Broker-Dealers.

     “Indenture” shall mean the Indenture relating to the Securities dated as of August 3, 2010
among the Company, the Guarantors and the Trustee, and as the same may be further amended, modified
or supplemented from time to time in accordance with the terms thereof.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
outstanding Registrable Securities; provided that whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder, Registrable Securities owned
directly or indirectly by the Company or any of its affiliates shall not be counted in determining
whether such consent or approval was given by the Holders of such required percentage or amount.

     “Participating Broker-Dealers” shall have the meaning set forth in Section 2 hereof.

     “Person” shall mean an individual, partnership, limited liability company, corporation, trust
or unincorporated organization, or a government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus included in a Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other
amendments and supplements to such prospectus, and in each case including any document incorporated
by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Registrable Securities” shall mean the Securities; provided that any Security shall cease to
be a Registrable Security (i) when a Registration Statement with respect to such Security has

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been
declared effective under the Securities Act and such Security has been exchanged or disposed of pursuant to such Registration Statement or (ii) when such Security ceases to be
outstanding.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company and the Guarantors with this Agreement, including, without limitation,
(i) all SEC, stock exchange or National Association of Securities Dealers, Inc. registration and
filing fees, (ii) all fees and expenses incurred in connection with compliance with state
securities or blue sky laws in the United States of America (including reasonable fees and
disbursements of counsel for any Underwriters or Holders in connection with blue sky qualification
in the United States of America of any Exchange Securities or Registrable Securities), (iii) all
expenses of any Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus and any amendments or supplements thereto,
any underwriting agreements, securities sales agreements or other similar agreements and any other
documents relating to the performance of and compliance with this Agreement, (iv) all rating agency
fees, (v) all fees and disbursements relating to the qualification of the Indenture under
applicable securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii)
the fees and disbursements of counsel for the Company and the Guarantors and, in the case of a
Shelf Registration Statement, the reasonable fees and disbursements of one counsel for the Holders
(which counsel shall be selected by the Majority Holders and which counsel may also be counsel for
the Initial Purchasers), (viii) the fees and disbursements of the independent public accountants of
the Company and the Guarantors, including the expenses of any special audits or “comfort” letters
required by or incident to the performance of and compliance with this Agreement, but excluding
fees and expenses of counsel to the Underwriters (other than fees and expenses set forth in clause
(ii) above) or the Holders and underwriting discounts and commissions and transfer taxes, if any,
relating to the sale or disposition of Registrable Securities by a Holder and (ix) in the case of
an Exchange Offer, the reasonable fees and disbursements of counsel for the Initial Purchasers.

     “Registration Statement” shall mean any registration statement of the Company and the
Guarantors filed with the SEC under the Securities Act that covers any of the Exchange Securities
or Registrable Securities pursuant to the provisions of this Agreement and all amendments and
supplements to any such registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and any document incorporated by
reference therein.

     “SEC” shall mean the Securities and Exchange Commission.

     “Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

     “Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

     “Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and
the Guarantors filed with the SEC under the Securities Act that covers all the Registrable
Securities (but no other securities unless approved by the Holders whose Registrable Securities

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are to be covered by such Shelf Registration Statement) on an appropriate form under Rule
415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including post-effective amendments, in
each case including the Prospectus contained therein, all exhibits thereto and any document
incorporated by reference therein.

     “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

     “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

     “Underwriter” shall have the meaning set forth in Section 3 hereof.

     “Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

          2. Registration Under the Securities Act.

          (a) To the extent not prohibited by any applicable law or applicable interpretations of the
Staff of the SEC, the Company and the Guarantors shall use their commercially reasonable efforts to
(i) cause to be filed an Exchange Offer Registration Statement covering an offer to the Holders to
exchange all the Registrable Securities for Exchange Securities and (ii) have such Registration
Statement remain effective until 180 days after the closing of the Exchange Offer. The Company and
the Guarantors shall commence the Exchange Offer promptly after the Exchange Offer Registration
Statement is declared effective by the SEC and use their commercially reasonable efforts to
complete the Exchange Offer not later than 60 days after such effective date.

     The Company and the Guarantors shall commence the Exchange Offer by mailing the related
Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder
stating, in addition to such other disclosures as are required by applicable law,

	(i)	 	that the Exchange Offer is being made pursuant to this Agreement and that all Registrable
Securities validly tendered and not properly withdrawn will be accepted for exchange;
	 
	(ii)	 	the dates of acceptance for exchange (which shall be a period of at least 20 Business Days
from the date such notice is mailed) (the “Exchange Dates”);
	 
	(iii)	 	that any Registrable Security not tendered will remain outstanding and continue to accrue
interest but will not retain any rights under this Agreement;
	 
	(iv)	 	that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to surrender such Registrable Security, together with the appropriate
letters of transmittal, to the institution and at the address (located in the Borough of
Manhattan, The City of New York) and in the manner specified in the notice, prior to the close
of business on the last Exchange Date; and

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	(v)	 	that any Holder will be entitled to withdraw its election, not later than the close of
business on the last Exchange Date, by sending to the institution and at the address (located
in the Borough of Manhattan, The City of New York) specified in the notice, a telegram, telex,
facsimile transmission or letter setting forth the name of such Holder, the principal amount
of Registrable Securities delivered for exchange and a statement that such Holder is
withdrawing its election to have such Securities exchanged.

     As a condition to participating in the Exchange Offer, a Holder will be required to represent
to the Company and the Guarantors that (i) any Exchange Securities to be received by it will be
acquired in the ordinary course of its business, (ii) at the time of commencement of the Exchange
Offer it has no arrangement or understanding with any Person to participate in the distribution
(within the meaning of the Securities Act) of the Exchange Securities, (iii) it is not an
“affiliate” (within the meaning of Rule 405 under Securities Act) of the Company or any Guarantor
and (iv) if such Holder is a broker-dealer that will receive Exchange Securities for its own
account in the Exchange Offer in exchange for Securities that were acquired by such broker-dealer
as a result of market-making or other trading activities (a “Participating Broker-Dealer”), then
such Holder will deliver a Prospectus in connection with any resale of such Exchange Securities.

     As soon as practicable after the last Exchange Date, the Company and the Guarantors shall

	(i)	 	accept for exchange Registrable Securities or portions thereof validly tendered and not
properly withdrawn pursuant to the Exchange Offer; and
	 
	(ii)	 	deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities
or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee
to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal
amount to the principal amount of the Registrable Securities surrendered by such Holder
provided that, except as may be otherwise required by the Indenture, in the case of any
Registrable Securities held in global form by a depositary, authentication and delivery to
such depositary of one or more Exchange Securities in global form in an equivalent principal
amount thereto for the account of such Holders in accordance with the Indenture shall satisfy
such authentication and delivery requirement.

     The Company and the Guarantors shall use their commercially reasonable efforts to complete the
Exchange Offer as provided above and shall comply with the applicable requirements of the
Securities Act, the Exchange Act and other applicable laws and regulations in connection with the
Exchange Offer. The Exchange Offer shall not be subject to any conditions, other than (i) that the
Exchange Offer does not violate any applicable law or applicable interpretations of the Staff of
the SEC and (ii) no action or proceeding shall have been instituted or threatened in any court or
by any governmental agency with respect to the Exchange Offer.

          (b) In the event that (i) the Company and the Guarantors determine that the Exchange Offer
Registration provided for in Section 2(a) above is not available or may not be completed as soon as
practicable after the last Exchange Date because it would violate any applicable law or applicable
interpretation of the Staff of the SEC, (ii) the Exchange Offer is not for any other reason
completed by the 210th day after the Closing Date, or (iii) if any Initial Purchaser

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holds any Securities acquired by it that have, or that are reasonably likely to be determined to have, the
status of an unsold allotment in an initial distribution, and any such Initial
Purchaser so requests in writing on or prior to the 60th day after the consummation of the
Exchange Offer, the Company and the Guarantors shall use commercially reasonable efforts to cause
to be filed as soon as practicable after such determination, date or request, as the case may be, a
Shelf Registration Statement providing for the sale of all the Registrable Securities by the
Holders (or, in the case of clause (iii), any requesting Initial Purchaser) thereof and to have
such Shelf Registration Statement declared effective by the SEC.

     In the event that the Company and the Guarantors are required to file a Shelf Registration
Statement pursuant to clause (iii) of the preceding sentence, the Company and the Guarantors shall
use commercially reasonable efforts to file and have declared effective by the SEC both an Exchange
Offer Registration Statement pursuant to Section 2(a) with respect to all Registrable Securities
and a Shelf Registration Statement (which may be a combined Registration Statement with the
Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities
held by the Initial Purchasers after completion of the Exchange Offer. Notwithstanding the
foregoing, the Company and the Guarantors may delay filing a Shelf Registration Statement, and any
amendment thereto, and may withhold efforts to cause such Shelf Registration Statement, and any
such amendment thereto, to become effective for a period of up to 60 days, if (i) the Company
determines in good faith that such Shelf Registration Statement, and any such amendment thereto,
might interfere with or affect the negotiation or completion of any transaction that is being
contemplated by the Company (whether or not a final decision has been made to undertake such
transaction) at the time the right to delay is exercised or (ii) such Shelf Registration Statement,
and any such amendment thereto, would otherwise require premature disclosure of non-public
information that, in the Company’s judgment, exercised reasonably and in good faith, would have a
material adverse effect on or otherwise be detrimental to the Company; provided,
however, the Company may only exercise such right of delay or withholding of efforts other
than for purposes of avoiding its obligations under this Agreement; provided
further however, that the Company may not exercise such right of delay or
withholding of efforts more frequently than two times in any 12-month period and the aggregate
period of any such delays or withholdings shall not exceed 60 days in any such 12-month period.

     The Company and the Guarantors agree to use commercially reasonable efforts to keep the Shelf
Registration Statement continuously effective until all of the Registrable Securities covered
thereby are eligible for resale under Rule 144(k) under the Securities Act upon the expiration of
the time period referred to in such rule or such earlier time when all the Registrable Securities
covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration
Statement (the “Shelf Effectiveness Period”). The Company and the Guarantors further agree to
supplement or amend the Shelf Registration Statement and the related Prospectus if required by the
rules, regulations or instructions applicable to the registration form used by the Company and the
Guarantors for such Shelf Registration Statement or by the Securities Act or by any other rules and
regulations thereunder for shelf registration or if reasonably requested by a Holder of Registrable
Securities with respect to information relating to such Holder, and to use commercially reasonable
efforts to cause any such amendment to become effective and such Shelf Registration Statement and
Prospectus to become usable as soon as thereafter practicable. The Company and the Guarantors
agree to furnish to the Holders of Registrable Securities covered

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by any such Shelf Registration Statement copies of any such supplement or amendment promptly after
its being used or filed with the SEC.

          (c) The Company and the Guarantors shall pay all Registration Expenses in connection with the
registration pursuant to Section 2(a) and Section 2(b) hereof. Each Holder shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of such Holder’s Registrable Securities pursuant to the Exchange Offer Registration
Statement or Shelf Registration Statement.

          (d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a Shelf
Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective
unless it has been declared effective by the SEC.

     In the event that (i) either the Exchange Offer is not completed or a Shelf Registration
Statement required under Section (2)(b)(i) or (ii) hereof is not declared effective on or prior to
the 210th day after the Closing Date (the “Target Registration Date”) or (ii) a Shelf Registration
Statement required under Section 2(b)(iii) hereof is not declared effective on or prior to the 60th
day following the Filing Date (also a “Target Registration Date”), the interest rate on the
Registrable Securities will be increased by (i) 0.25% per annum for the first 90-day period
immediately following the applicable Target Registration Date and (ii) an additional 0.25% per
annum with respect to each subsequent 90-day period, in each case until the Exchange Offer is
completed or the Shelf Registration Statement, if required hereby, is declared effective by the SEC
or the Securities covered thereby are eligible for resale under Rule 144(k) under the Securities
Act upon the expiration of the time period referred to in such rule; provided
however, that in no event shall the aggregate amount of additional interest accruing under
this paragraph exceed in the aggregate 1.00% per annum.

     If the Shelf Registration Statement has been declared effective and thereafter either ceases
to be effective or the Prospectus contained therein ceases to be usable at any time during the
Shelf Effectiveness Period, and such failure to remain effective or usable exists for more than 60
days (whether or not consecutive) in any 12-month period, then the interest rate on the Registrable
Securities will be increased by 1.00% per annum commencing on the 61st day in such 12-month period
and ending on such date that the Shelf Registration Statement has again been declared effective or
the Prospectus again becomes usable.

     In no event shall the Company or Guarantors be obligated to pay additional interest under more
than one provisions of this Section 2(d) at any one time. Upon the effectiveness of the Exchange
Offer Registration Statement or the Shelf Registration Statement (in the case of clauses (i) and
(ii) of the second paragraph of this Section 2(d), as applicable) or the Shelf Registration
Statement which had ceased to remain effective (in the case of the penultimate paragraph of this
Section 2(d)), or the Securities become eligible for sale pursuant to Rule 144(k) under the
Securities Act upon the expiration of the time period referred to in such rule (in the case of the
second and third paragraphs of this Section 2(d)), additional interest on the Securities as a
result of such provisions (or the relevant subclause thereof), as the case may be, shall cease to
accrue.

          (e) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Company and the Guarantors acknowledge that any failure by the Company or the

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Guarantors to comply with their obligations under Section 2(a) and Section 2(b) hereof may result in material
irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy
at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may
obtain such relief as may be required to specifically enforce the Company’s and the Guarantors’
obligations under Section 2(a) and Section 2(b) hereof.

          (f) No Holder of Registrable Securities may include any of its Registrable Securities in any
Shelf Registration if such Holder shall have failed to furnish to the Company the information with
respect to such Holder and the proposed disposition specified in Items 507 and 508 (as applicable)
of Regulation S-K under the Securities Act and any other applicable rules, regulations or policies
of the SEC for use in connection with any Shelf Registration or Prospectus included therein. No
Holder of Registrable Securities shall be entitled to additional interest pursuant to Section 2(b)
if such Holder shall have failed to provide all such information. Each selling Holder as to which
a Shelf Registration is being effected agrees to furnish promptly to the Company additional
information to be disclosed so that the information previously furnished to the Company by such
Holder does not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statement therein not misleading.

          3. Registration Procedures. In connection with their obligations pursuant to Section
2(a) and Section 2(b) hereof, the Company and the Guarantors shall as expeditiously as possible:

     (a) prepare and file with the SEC a Registration Statement on the appropriate form
under the Securities Act, which form (x) shall be selected by the Company and the
Guarantors, (y) shall, in the case of a Shelf Registration, be available for the sale of the
Registrable Securities to be included therein by the selling Holders thereof and (z) shall
comply as to form in all material respects with the requirements of the applicable form and
include all financial statements required by the SEC to be filed therewith; and use
commercially reasonable efforts to cause such Registration Statement to become effective and
remain effective for the applicable period in accordance with Section 2 hereof;

     (b) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement effective for
the applicable period in accordance with Section 2 hereof and cause each Prospectus to be
supplemented by any required prospectus supplement and, as so supplemented, to be filed
pursuant to Rule 424 under the Securities Act; and keep each Prospectus current during the
period described in Section 4(3) of and Rule 174 under the Securities Act that is applicable
to transactions by brokers or dealers with respect to the Registrable Securities or Exchange
Securities;

     (c) in the case of a Shelf Registration, furnish to each Holder of Registrable
Securities covered thereby, to counsel for the Initial Purchasers, to counsel for such
Holders and to each Underwriter of an Underwritten Offering of Registrable Securities, if
any, without charge, as many copies of each Prospectus, including each preliminary
Prospectus,

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and any amendment or supplement thereto, as may be reasonably requested in order
to facilitate the sale or other disposition of the Registrable Securities covered
thereunder; and the Company and the Guarantors consent to the use of such Prospectus and any
amendment or supplement thereto in accordance with applicable law by each of the
selling Holders of Registrable Securities and any such Underwriters in connection with
the offering and sale of the Registrable Securities covered by and in the manner described
in such Prospectus or any amendment or supplement thereto in accordance with applicable law;

     (d) use commercially reasonable efforts to register or qualify the Registrable
Securities under all applicable state securities or blue sky laws of such jurisdictions in
the United States of America as any Holder of Registrable Securities covered by a
Registration Statement shall reasonably request in writing by the time the applicable
Registration Statement is declared effective by the SEC; cooperate with the Holders in
connection with any filings required to be made with the National Association of Securities
Dealers, Inc.; and do any and all other acts and things that may be reasonably necessary or
advisable to enable each Holder to complete the disposition in each such jurisdiction of the
Registrable Securities owned by such Holder; provided that neither the Company nor any
Guarantor shall be required to (i) qualify as a foreign corporation or other entity or as a
dealer in securities in any such jurisdiction where it would not otherwise be required to so
qualify, (ii) file any general consent to service of process in any such jurisdiction or
(iii) subject itself to taxation in any such jurisdiction if it is not so subject;

     (e) in the case of a Shelf Registration, notify each Holder of Registrable Securities
covered thereby, counsel for such Holders and counsel for the Initial Purchasers promptly
and, if requested by any such Holder or counsel, confirm such advice in writing (i) when a
Registration Statement has become effective and when any post-effective amendment thereto
has been filed and becomes effective, (ii) of any request by the SEC or any state securities
authority for amendments and supplements to a Registration Statement and Prospectus or for
additional information after the Registration Statement has become effective, (iii) of the
issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings for that
purpose, (iv) if, between the effective date of a Registration Statement and the closing of
any sale of Registrable Securities covered thereby, the representations and warranties of
the Company or any Guarantor contained in any underwriting agreement, securities sales
agreement or other similar agreement, if any, relating to an offering of such Registrable
Securities cease to be true and correct in all material respects or if the Company or any
Guarantor receives any notification with respect to the suspension of the qualification of
the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding
for such purpose, (v) of the happening of any event during the period a Shelf Registration
Statement is effective that makes any statement made in such Registration Statement or the
related Prospectus untrue in any material respect or that requires the making of any changes
in such Registration Statement or Prospectus in order to make the statements therein not
misleading and of the delay in filing a Shelf Registration Statement, or any amendment
thereto, or of the withholding of efforts to cause such Shelf Registration Statement, or any
such amendment thereto, to become

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effective, pursuant to the third sentence of Section 2(b)
and (vi) of any determination by the Company or any Guarantor that a post-effective
amendment to a Registration Statement would be appropriate; provided that, in the
case of clause (iv), (v) or (vi), with respect to any event, development or transaction that
would permit the Company to exercise its rights of delay or withholding of efforts under the
third sentence of Section 2(b), the
Company shall provide written notice that, in its good faith judgment, such an event,
development or transaction has occurred or is pending and that it is exercising its rights
of delay or withholding of efforts pursuant to the third sentence of Section 2(b) of this
Agreement; provided further that the Company shall not be required to
describe such event, development or transaction in the written notice provided.

     (f) use their commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement at the earliest possible moment and
provide immediate notice to each Holder of the withdrawal of any such order;

     (g) in the case of a Shelf Registration, furnish to each Holder of Registrable
Securities covered thereby, without charge, at least one conformed copy of each Registration
Statement and any post-effective amendment thereto (without any documents incorporated
therein by reference or exhibits thereto, unless requested);

     (h) in the case of a Shelf Registration, cooperate with the selling Holders of
Registrable Securities covered thereby to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold and not bearing any restrictive
legends and enable such Registrable Securities to be issued in such denominations and
registered in such names (consistent with the provisions of the Indenture) as the selling
Holders may reasonably request at least one Business Day prior to the closing of any sale of
Registrable Securities;

     (i) subject to the third sentence of Section 2(b), in the case of a Shelf Registration,
upon the occurrence of any event contemplated by Section 3(e)(v) hereof, use their
commercially reasonable efforts to prepare and file with the SEC a supplement or
post-effective amendment to a Registration Statement or the related Prospectus or any
document incorporated therein by reference or file any other required document so that, as
thereafter delivered to purchasers of the Registrable Securities, such Prospectus will not
contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances under which they were
made, not misleading; and the Company and the Guarantors shall notify the Holders of
Registrable Securities covered by such Shelf Registration to suspend use of the Prospectus
as promptly as practicable after the occurrence of such an event, and such Holders hereby
agree to suspend use of the Prospectus until the Company and the Guarantors have amended or
supplemented the Prospectus to correct such misstatement or omission and expressly agree to
maintain the information contained in such notice confidential (except that such information
may be disclosed to their counsel) until it has been publicly disclosed by the Company;
provided that, with respect to any event, development or transaction that would
permit the Company and the Guarantors to exercise their rights of

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delay or withholding of efforts under the third sentence of Section 2(b), such
notice shall state that, in the Company’s good faith judgment, such an event, development or
transaction has occurred or is pending and that it is exercising its rights of delay or
withholding of efforts pursuant to the third sentence of Section 2(b) of this Agreement;
provided further that the Company shall not be required to describe such
event, development or transaction in such notice.

     (j) a reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or supplement to a
Prospectus or of any document that is to be incorporated by reference into a Registration
Statement or a Prospectus after initial filing of a Registration Statement, provide copies
of such document to the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, to the Holders of Registrable Securities covered thereby and their
counsel) and make such of the representatives of the Company and the Guarantors as shall be
reasonably requested by the Initial Purchasers or their counsel (and, in the case of a Shelf
Registration Statement, the Holders of such Registrable Securities or their counsel)
available for discussion of such document; and the Company and the Guarantors shall not, at
any time after initial filing of a Registration Statement, file any Prospectus, any
amendment of or supplement to a Registration Statement or a Prospectus, or any document that
is to be incorporated by reference into a Registration Statement or a Prospectus, of which
the Initial Purchasers and their counsel (and, in the case of a Shelf Registration
Statement, the Holders of Registrable Securities covered thereby and their counsel) shall
not have previously been advised and furnished a copy or to which the Initial Purchasers or
their counsel (and, in the case of a Shelf Registration Statement, such Holders or their
counsel) shall reasonably object on a timely basis, except for any Registration Statement or
amendment thereto or related Prospectus or supplement thereto (a copy of which has been
previously furnished as provided in the preceding sentence) which counsel to the Company has
advised the Company in writing (with a copy to the objecting Initial Purchasers or Holders,
as the case may be) is required to be filed in order to comply with applicable law;

     (k) obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the
case may be, not later than the effective date of a Registration Statement;

     (l) cause the Indenture to be qualified under the Trust Indenture Act in connection
with the registration of the Exchange Securities or Registrable Securities, as the case may
be; cooperate with the Trustee and the Holders to effect such changes to the Indenture as
may be required for the Indenture to be so qualified in accordance with the terms of the
Trust Indenture Act; and execute, and use their reasonable best efforts to cause the Trustee
to execute, all documents as may be required to effect such changes and all other forms and
documents required to be filed with the SEC to enable the Indenture to be so qualified in a
timely manner;

     (m) in the case of a Shelf Registration, make available for inspection by a
representative of the Holders of the Registrable Securities covered thereby (an
“Inspector”), any underwriter participating in any disposition pursuant to such Shelf
Registration

-11-

 

Statement, and attorneys and accountants designated by the Holders, at
reasonable times
and in a reasonable manner, all pertinent financial and other records, documents and
properties of the Company and the Guarantors, and cause the respective officers, directors
and employees of the Company and the Guarantors to supply all information reasonably
requested by any such Inspector, Underwriter, attorney or accountant in connection with a
Shelf Registration Statement; provided that each such representative, Underwriter, attorney
or accountant shall agree in writing that it will keep such information confidential and
that it will not disclose any of the information that the Company determines, in good faith,
to be confidential and notifies them is confidential unless (i) the disclosure of such
information is required by law (including as necessary to avoid or correct a material
misstatement or material omission in such Registration Statement or Prospectus), (ii) the
release of such information is ordered pursuant to a subpoena or other order from a court of
competent jurisdiction, or (iii) such information has been made generally available to the
public other than by any of such persons or their affiliates; provided,
however, that each such representative, underwriter, attorney or accountant shall
use commercially reasonable efforts to give prior notice as soon as practicable to the
Company of the potential disclosure of any information by such person pursuant to clause (i)
or (ii) of this sentence in order to permit the Company to obtain a protective order (or
waive the provisions of this paragraph (m));

     (n) if reasonably requested by any Holder of Registrable Securities covered by a
Registration Statement, promptly incorporate in a Prospectus supplement or post-effective
amendment such information with respect to such Holder as such Holder reasonably requests to
be included therein and make all required filings of such Prospectus supplement or such
post-effective amendment as soon as the Company has received notification of the matters to
be incorporated in such filing; and

     (o) in the case of a Shelf Registration, enter into such customary agreements and take
all such other actions in connection therewith (including those requested by the Holders of
a majority in principal amount of the Registrable Securities being sold) in order to
expedite or facilitate the disposition of such Registrable Securities including, but not
limited to, an Underwritten Offering and in such connection, (i) to the extent possible,
make such representations and warranties to the Holders and any Underwriters of such
Registrable Securities with respect to the business of the Company and its subsidiaries, the
Registration Statement, Prospectus and documents incorporated by reference or deemed
incorporated by reference, if any, in each case, in form, substance and scope as are
customarily made by issuers to underwriters in underwritten offerings and confirm the same
if and when requested, (ii) obtain opinions of counsel to the Company and the Guarantors
(which counsel and opinions, in form, scope and substance, shall be reasonably satisfactory
to the Holders and such Underwriters and their respective counsel) addressed to each selling
Holder and Underwriter of Registrable Securities, covering the matters customarily covered
in opinions requested in underwritten offerings, (iii) obtain “comfort” letters from the
independent certified public accountants of the Company and the Guarantors (and, if
necessary, any other certified public accountant of any subsidiary of the Company or any
Guarantor, or of any business acquired by the Company or any Guarantor for which financial
statements and financial data are or are required to be included

-12-

 

in the Registration
Statement) addressed to each selling Holder and Underwriter of Registrable Securities, such
letters to be in customary form and covering matters of the type
customarily covered in “comfort” letters in connection with underwritten offerings and
(iv) deliver such documents and certificates as may be reasonably requested by the Holders
of a majority in principal amount of the Registrable Securities being sold thereunder or the
Underwriters, and which are customarily delivered in underwritten offerings, to evidence the
continued validity of the representations and warranties of the Company and the Guarantors
made pursuant to clause (i) above and to evidence compliance with any customary conditions
contained in an underwriting agreement.

     In the case of a Shelf Registration Statement, each Holder of Registrable Securities agrees
that, upon receipt of any notice from the Company and the Guarantors of the happening of any event
of the kind described in Section 3(e)(iii) or 3(e)(v) hereof, such Holder will forthwith
discontinue disposition of Registrable Securities pursuant to a Registration Statement until such
Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section
3(i) hereof and, if so directed by the Company and the Guarantors, such Holder will deliver to the
Company and the Guarantors all copies in its possession, other than permanent file copies then in
such Holder’s possession, of the Prospectus covering such Registrable Securities that is current at
the time of receipt of such notice.

     If the Company and the Guarantors shall give any such notice to suspend the disposition of
Registrable Securities pursuant to a Registration Statement, the Company and the Guarantors shall
extend the period during which the Registration Statement shall be maintained effective pursuant to
this Agreement by the number of days during the period from and including the date of the giving of
such notice to and including the date when the Holders shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions. The Company and the
Guarantors may give any such notice only twice during any 365-day period and any such suspensions
shall not exceed 30 days for each suspension and there shall not be more than two suspensions in
effect during any 365-day period.

     The Holders of Registrable Securities covered by a Shelf Registration Statement who desire to
do so may sell such Registrable Securities in an Underwritten Offering. In any such Underwritten
Offering, the investment banker or investment bankers and manager or managers (the “Underwriters”)
that will administer the offering will be selected by the Majority Holders of the Registrable
Securities included in such offering.

          4. Participation of Broker-Dealers in Exchange Offer.

          (a) The Staff of the SEC has taken the position that any broker-dealer that receives Exchange
Securities for its own account in the Exchange Offer in exchange for Securities that were acquired
by a Participating Broker-Dealer may be deemed to be an “underwriter” within the meaning of the
Securities Act and must deliver a prospectus meeting the requirements of the Securities Act in
connection with any resale of such Exchange Securities.

     The Company and the Guarantors understand that it is the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution
containing a statement to the above effect and the means by which Participating Broker-Dealers

-13-

 

may resell the Exchange Securities, without naming the Participating Broker-Dealers or specifying the
amount of Exchange Securities owned by them, such Prospectus may be delivered by
Participating Broker-Dealers to satisfy their prospectus delivery obligation
under the Securities Act in connection with resales of Exchange Securities for their own accounts, so long as
the Prospectus otherwise meets the requirements of the Securities Act.

          (b) In light of the above, and notwithstanding the other provisions of this Agreement, the
Company and the Guarantors agree to amend or supplement the Prospectus contained in the Exchange
Offer Registration Statement, as would otherwise be contemplated by Section 3(i), for a period of
up to 180 days after the last Exchange Date (as such period may be extended pursuant to the
penultimate paragraph of Section 3 of this Agreement), if reasonably requested by the Initial
Purchasers or by one or more Participating Broker-Dealers, in order to expedite or facilitate the
disposition of any Exchange Securities by Participating Broker-Dealers consistent with the
positions of the Staff recited in Section 4(a) above. The Company and the Guarantors further agree
that Participating Broker-Dealers shall be authorized to deliver such Prospectus during such period
in connection with the resales contemplated by this Section 4.

          (c) The Initial Purchasers shall have no liability to the Company, any Guarantor or any Holder
with respect to any request that they may make pursuant to Section 4(b) above.

          5. Indemnification and Contribution.

          (a) The Company and each Guarantor, jointly and severally, agree to indemnify and hold
harmless each Initial Purchaser and each Holder, their respective affiliates, directors and
officers and each person, if any, who controls any Initial Purchaser or any Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any
and all losses, claims, damages and liabilities (including, without limitation, reasonable legal
fees and other expenses incurred in connection with any suit, action or proceeding or any claim
asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are
based upon, any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement or any Prospectus or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, except (i) insofar as
such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement
or omission or alleged untrue statement or omission made in reliance upon and in conformity with
any information relating to any Initial Purchaser or any Holder furnished to the Company in writing
by any Initial Purchaser or any selling Holder expressly for use therein or (ii) that with respect
to any such untrue statement in or omission from or alleged untrue statement in or omission from
any preliminary Prospectus, the indemnity provided in this Section 5(a) shall not inure to the
benefit of any Holder from whom the person asserting any such loss, claim, damage or liability
received Registrable Securities or Exchange Securities to the extent that such loss, claim, damage
or liability results from the fact that (A) such Holder was required under the Securities Act to
deliver a copy of the final Prospectus to such person at or prior to the written confirmation of
the sale of Registrable Securities or Exchange Securities to such person, (B) a copy of the final
Prospectus was not so sent or given to such person at or prior to the written confirmation of the
sale of such Registrable Securities or Exchange Securities to such person

-14-

 

and (C) such untrue
statement in or omission from or alleged untrue statement in or omission from the preliminary
Prospectus was corrected in the final Prospectus unless, in either case, such failure to deliver
the final Prospectus was a result of non-compliance by the Company or any of
the Guarantors with Section 2(b) or 3 hereof. In connection with any Underwritten Offering
permitted by Section 3, the Company and the Guarantors, jointly and severally, will also indemnify
the Underwriters, if any, selling brokers, dealers and similar securities industry professionals
participating in the distribution, their respective affiliates and each Person who controls such
Persons (within the meaning of the Securities Act and the Exchange Act) to the same extent as
provided above with respect to the indemnification of the Holders, if requested in connection with
any Registration Statement.

          (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company,
the Guarantors, the Initial Purchasers and the other selling Holders, their respective affiliates,
the directors of the Company and the Guarantors, each officer of the Company and the Guarantors who
signed the Registration Statement and each Person, if any, who controls the Company, the
Guarantors, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth
in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that
arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with any information relating to such Holder
furnished to the Company in writing by such Holder expressly for use in any Registration Statement
or any Prospectus.

          (c) If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any Person in respect of which indemnification
may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”)
shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have under this Section 5 except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the Indemnifying Person
shall not relieve it from any liability that it may have to an Indemnified Person otherwise than
under this Section 5. If any such proceeding shall be brought or asserted against an Indemnified
Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall
retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 5 that the Indemnifying
Person may designate in such proceeding and shall pay the reasonable fees and expenses of such
counsel related to such proceeding, as incurred. In any such proceeding, any Indemnified Person
shall have the right to retain its own counsel, but the reasonable fees and expenses of such
counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and
the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has
failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified
Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal
defenses available to it that are different from or in addition to those available to the
Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the Indemnifying Person and the Indemnified Person and representation

-15-

 

of both
parties by the same counsel would be inappropriate due to actual or potential differing interests
between them. It is understood and agreed that the Indemnifying Person shall not, in connection
with any proceeding or related proceeding in the same jurisdiction, be liable for the reasonable
fees and expenses of more than one separate firm (in addition to any local
counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed
as they are incurred. Any such separate firm (x) for any Initial Purchaser, its affiliates,
directors and officers and any control Persons of such Initial Purchaser shall be designated in
writing by Deutsche Bank Securities Inc., (y) for any other Holders, their affiliates, directors
and officers and any control Persons of such Holders shall be designated in writing by the Majority
Holders and (z) in all other cases shall be designated in writing by the Company. The Indemnifying
Person shall not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for the plaintiff, the
Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or
liability by reason of such settlement or judgment to the extent provided herein and therein.
Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested
that an Indemnifying Person reimburse the Indemnified Person for reasonable fees and expenses of
counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for any
settlement of any proceeding effected without its written consent if (i) such settlement is entered
into more than 60 days after receipt by the Indemnifying Person of such request and (ii) the
Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such
request prior to the date of such settlement. No Indemnifying Person shall, without the written
consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in
respect of which any Indemnified Person is or could have been a party and indemnification could
have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an
unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to
such Indemnified Person, from all liability on claims that are the subject matter of such
proceeding and (B) does not include any statement as to or any admission of fault, culpability or a
failure to act by or on behalf of any Indemnified Person.

          (d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an
Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying
such Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company and the
Guarantors from the offering of the Securities and the Exchange Securities, on the one hand, and by
the Holders from receiving Securities or Exchange Securities registered under the Securities Act,
on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the
Holders on the other in connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable considerations. The
relative fault of the Company and the Guarantors on the one hand and the Holders on the other shall
be determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company and the Guarantors or by the Holders and the parties’ relative

-16-

 

intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission.

          (e) The Company, the Guarantors and the Holders agree that it would not be just and equitable
if contribution pursuant to this Section 5 were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method
of allocation that does not take account of the equitable considerations referred to in paragraph
(d) above. The amount paid or payable by an Indemnified Person as a result of the losses, claims,
damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to
the limitations set forth above, any reasonable legal or other expenses incurred by such
Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of
this Section 5, in no event shall a Holder be required to contribute any amount in excess of the
amount by which the total price at which the Securities or Exchange Securities sold by such Holder
exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

          (f) The remedies provided for in this Section 5 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

          (g) The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Initial Purchasers or any Holder, their respective
affiliates or any Person controlling any Initial Purchaser or any Holder, or by or on behalf of the
Company or the Guarantors, their respective affiliates or the officers or directors of or any
Person controlling the Company or the Guarantors, (iii) acceptance of any of the Exchange
Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration Statement.

          6. General.

          (a) No Inconsistent Agreements. The Company and the Guarantors, jointly and severally,
represent, warrant and agree that (i) the rights granted to the Holders hereunder do not in any way
conflict with and are not inconsistent with the rights granted to the holders of any other
outstanding securities issued or guaranteed by the Company or any Guarantor under any other
agreement and (ii) neither the Company nor any Guarantor has entered into, or on or after the date
of this Agreement will enter into, any agreement that is inconsistent with the rights granted to
the Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions
hereof.

          (b) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given unless the Company and the Guarantors have obtained the
written consent of Holders of at least a majority in aggregate principal

-17-

 

amount of the outstanding Registrable Securities affected by such amendment,
modification, supplement, waiver or consent; provided that no amendment, modification,
supplement, waiver or consent to any departure from the provisions of Section 5 hereof shall be
effective as against any Holder of Registrable Securities unless consented to in writing by such
Holder. Any amendments, modifications, supplements, waivers or consents pursuant to this Section
6(b) shall be by a writing executed by each of the parties hereto.

          (c) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier
guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such
Holder to the Company by means of a notice given in accordance with the provisions of this Section
6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in
the Purchase Agreement; (ii) if to the Company and the Guarantors, initially at the Company’s
address set forth in the Purchase Agreement and thereafter at such other address, notice of which
is given in accordance with the provisions of this Section 6(c); and (iii) to such other persons at
their respective addresses as provided in the Purchase Agreement and thereafter at such other
address, notice of which is given in accordance with the provisions of this Section 6(c). All such
notices and communications shall be deemed to have been duly given at the time delivered by hand,
if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if
mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and on the
next Business Day if timely delivered to an air courier guaranteeing overnight delivery. Copies of
all such notices, demands or other communications shall be concurrently delivered by the Person
giving the same to the Trustee, at the address specified in the Indenture.

          (d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors, assigns and transferees of each of the parties, including, without limitation and
without the need for an express assignment, subsequent Holders; provided that nothing
herein shall be deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee
of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement,
and by taking and holding such Registrable Securities such Person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of this Agreement and
such Person shall be entitled to receive the benefits hereof. The Initial Purchasers (in their
capacity as Initial Purchasers) shall have no liability or obligation to the Company or the
Guarantors with respect to any failure by a Holder to comply with, or any breach by any Holder of,
any of the obligations of such Holder under this Agreement.

          (e) Purchases and Sales of Securities. The Company and the Guarantors shall not, and shall
use their reasonable best efforts to cause their affiliates (as defined in Rule 405 under the
Securities Act) not to, purchase and then resell or otherwise transfer any Registrable Securities.

          (f) Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Company and the Guarantors, on the one hand,

-18-

 

and the Initial
Purchasers, on the other hand, and shall have the right to enforce such agreements
directly to the extent it deems such enforcement necessary or advisable to protect its rights
or the rights of other Holders hereunder.

          (g) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

          (h) Headings. The headings in this Agreement are for convenience of reference only, are not a
part of this Agreement and shall not limit or otherwise affect the meaning hereof.

          (i) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

          (j) Miscellaneous. This Agreement contains the entire agreement between the parties relating
to the subject matter hereof and supersedes all oral statements and prior writings with respect
thereto. If any term, provision, covenant or restriction contained in this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the
remainder of the terms, provisions, covenants and restrictions contained herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated. The Company, the
Guarantors and the Initial Purchasers shall endeavor in good faith negotiations to replace the
invalid, void or unenforceable provisions with valid provisions the economic effect of which comes
as close as possible to that of the invalid, void or unenforceable provisions.

-19-

 

Exhibit 4.2

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	TENNECO INC.

 	 
	 	By:  	/s/ John E. Kunz
 	 
	 	 	Name:  	John E. Kunz 	 
	 	 	Title:  	Vice President, Treasurer and Tax 	 
	 
	 
	 	TENNECO AUTOMOTIVE OPERATING COMPANY INC.

 	 
	 	By:  	/s/ John E. Kunz
 	 
	 	 	Name:  	John E. Kunz 	 
	 	 	Title:  	Vice President, Treasurer and Tax 	 
	 
	 
	 	THE PULLMAN COMPANY

 	 
	 	By:  	/s/ John E. Kunz
 	 
	 	 	Name:  	John E. Kunz 	 
	 	 	Title:  	Vice President, Treasurer and Tax 	 
	 
	 
	 	CLEVITE INDUSTRIES INC.

 	 
	 	By:  	/s/ John E. Kunz
 	 
	 	 	Name:  	John E. Kunz 	 
	 	 	Title:  	Vice President, Treasurer and Tax 	 
	 
	 
	 	TENNECO GLOBAL HOLDINGS INC.

 	 
	 	By:  	/s/ John E. Kunz
 	 
	 	 	Name:  	John E. Kunz 	 
	 	 	Title:  	Vice President, Treasurer and Tax 	 
	 
	 
	 	TMC TEXAS INC.

 	 
	 	By:  	/s/ John E. Kunz
 	 
	 	 	Name:  	John E. Kunz 	 
	 	 	Title:  	Vice President, Treasurer and Tax 	 

Registration Rights Agreement

 

 

	 	 	 	 	 
	 	TENNECO INTERNATIONAL HOLDING CORP.

 	 
	 	By:  	/s/ John E. Kunz
 	 
	 	 	Name:  	John E. Kunz 	 
	 	 	Title:  	Vice President, Treasurer and Tax 	 

Registration Rights Agreement

 

 

	 	 	 	 	 
	Confirmed and accepted as of the date first written above:

DEUTSCHE BANK SECURITIES INC.

For itself and on behalf of the

several Initial Purchasers

 	 
	By:  	/s/ Edwin E. Roland
 	 
	 	Name:  	Edwin E. Roland 	 
	 	Title:  	Managing Director 	 
	 
	 	 	 
	By:  	                       /s/ Frank Fazio
 	 
	 	Name:  	Frank Fazio 	 
	 	Title:  	Managing Director 	 

Registration Rights Agreement

 

 

Schedule 1

List of Subsidiary Guarantors

	 	 	 
	Tenneco Automotive Operating Company Inc.

	 	Delaware
	The Pullman Company

	 	Delaware
	Clevite Industries Inc.

	 	Delaware
	Tenneco Global Holdings Inc.

	 	Delaware
	TMC Texas Inc.

	 	Delaware
	Tenneco International Holding Corp.

	 	Delaware

Registration Rights Agreement

 

 

Schedule 2

Initial Purchasers

Deutsche Bank Securities Inc.

Citigroup Global Markets Inc.

RBS Securities Inc.

Wells Fargo Securities, LLC

Morgan Stanley & Co. Incorporated

Fifth Third Securities, Inc.

Commerz Markets LLC

BNY Mellon Capital Markets, LLC

Scotia Capital (USA) Inc.

U.S. Bancorp Investments, Inc.

PNC Capital Markets LLC

Registration Rights AgreementExhibit 10(y)

Exhibit 10(Y)

The registrant has requested confidential treatment with regard to portions of this exhibit. This
exhibit omits such confidential information (denoted by asterisks) that has been filed separately
with the Securities and Exchange Commission.

LICENSE AGREEMENT

THIS LICENSE AGREEMENT (the “Agreement”), is made and entered into as of the 7th day of
October 2009 by and between Liz Claiborne, Inc. (referred to herein as “Licensor”), and J. C.
Penney Corporation, Inc., its parent, J.C. Penney Company, Inc. and their directly and indirectly
wholly owned subsidiaries (referred herein as “Licensee”).

WHEREAS, Licensor is the owner of the “Liz Claiborne”, “Liz & Co.”, “Claiborne”, “and
“Concepts By Claiborne” trademarks with various stylized designs, together with the trade dress and
the goodwill associated with the such trademarks; and

WHEREAS, Licensor and Licensee desire to enter into this License Agreement with respect to the
sale and manufacture of certain merchandise specified herein upon the terms and conditions herein
set forth.

NOW, THEREFORE, the parties hereto agree as follows:

1. DEFINITIONS. As used in this Agreement the following terms will mean:

1.1 Trademarks or Marks will mean only the “Liz Claiborne”, “Liz & Co.”, “Claiborne”,
and “Concepts By Claiborne” trademarks, with such logomarks and in the type styles and typefaces
that are related thereto as of the date hereof, as well as any taglines or phrases associated with
or created during the Term that function as trademarks and any of the logos created during the
Term.

1.2 Licensed Merchandise, Licensed Goods or Licensed Products will mean merchandise
designed by or for Licensor, or subject to Licensor’s prior approval, designed by or for Licensee,
which is offered by Licensee by virtue of the authority granted in this Agreement which displays
the Trademarks on such products, hang-tags, labels and/or other means of packaging or source
identification. Merchandise purchased from Licensor’s Existing Licensees is not Licensed
Merchandise for which any royalties are due under this Agreement.

1.3 Product Categories will mean the product categories listed on Exhibit A.

 

 

 

1.4 Territory will mean (i) worldwide only with respect to the manufacture of Licensed
Products; and (ii) for the sale, marketing, merchandising, advertising and promotion of Licensed
Products (a) retail stores in the United States (including the District of Columbia), and Puerto
Rico; and (b) normal distribution territory in the United States (including the District of
Columbia) and Puerto Rico for orders received by Licensee’s catalog and electronically enabled
commerce, whether currently known or hereafter coming into existence, and those United States
military installations throughout the world provided such sales originate in the United States (the
“Sales Territory”, with the “Sales Territory” being a subset of the “Territory”). Licensor agrees
that on a non-exclusive basis, a de minimus amount, as reasonably determined by Licensor, of
sales made through Licensee’s United States based catalog and e-commerce platforms may be shipped
to consumers outside of the United States. For the purposes of liquidation, Licensee agrees that
Licensee shall not knowingly authorize the sale, resale or transfer of any Licensed Products
outside the Sales Territory. Licensee agrees that it will not knowingly authorize the resale or
transfer of any Licensed Products to any other retailer, wholesaler, intermediary, or agent of any
other person or entity, foreign or domestic, that Licensee knew or should have known had the intent
to resell the Licensed Products, without Licensor’s consent, unless all tags, labels or other
references to the Licensed Marks have been, or will be before resale, removed or otherwise made
illegible and unidentifiable with the Licensed Marks.

 

2

 

1.5 Net Sales shall mean (i) for retail store sales, the actual retail price paid to
Licensee by Licensee’s retail customers (not including any sales or other taxes, transportation or
handling charge) for all Licensed Products sold, less any discounts, refunds, credits, or returns
given by Licensee to its customers; and (ii) for catalog, mail order and e-commerce sales, gross
shipments, less free transportation and handling promotional programs, less returns, less an amount not to exceed *** of the actual aggregate retail price paid to Licensee by Licensee’s
retail customers that represents customer order adjustments (as distinct from discounts, refunds,
credits or returns) for damaged or defective Licensed Products sold to retail customers via
Licensee’s catalog, mail order and e-commerce operations (“Customer Order Adjustments”).

1.6 Gross Profit will mean ***

1.7 IP Rights  will mean all intellectual and industrial property interests in or to
items now or hereafter owned and/or created by or on behalf of Licensor (including by Licensee),
other than the Trademarks, whether or not copyrightable or patentable, including, without
limitation, patterns, designs and trade dress in and to any products and to any prints, package
designs, labels, advertising and other promotional materials, used on or in conjunction with any of
the Trademarks or the Licensed Products.

 

3

 

1.8 Concept Sample will mean the prototype sample prepared by Licensee in accordance with
the design specifications described in Section 4, including color, concept and design aesthetic.

1.9 Affiliate will mean any entity having any relationship, contract, or arrangement
with either party with respect to any matter which affects or is affected by this Agreement wherein
this entity has or exercises or has the power to exercise, directly or indirectly, in any manner,
control, direction, or restraint of that party or wherein such entity and that party are subject to
common or mutual control, direction, or restraint or wherein that party has the power to exercise,
directly or indirectly, in any manner, control, direction, or restraint of such entity.

1.10 Contract Year will mean a 12 month period (other than for the First Contract
Year), as defined in Section 5.1.

2. GRANT OF LICENSE. Upon the terms and conditions contained in this Agreement, and
subject to Section 3, Licensor hereby grants to Licensee, and Licensee hereby accepts, the
non-exclusive right and license to use the Trademarks and IP Rights during the Term (i) to sell,
market, distribute, advertise, promote and/or otherwise exploit the Licensed Products in the
Product Categories in the Sales Territory (the “Sales Territory License”) and (ii) to manufacture
and/or have manufactured Licensed Products in the Product Categories worldwide (the “Manufacturing
License”); provided that the Sales Territory License (x) will become exclusive on August 1, 2010
(the “Exclusivity Effective Date”) and (y) will not include the right to grant sublicenses to third
parties, except to Licensee’s third party contract manufacturers of any Licensed Product. Licensee
agrees that, subject to the foregoing clause (y) and Section 12, the Sales Territory License and
the Manufacturing License are strictly personal to Licensee,..

 

4

 

Licensee and Licensor will devote sufficient financial resources to support their businesses
and operations as required hereunder. Licensee will use its reasonable best efforts to develop and maintain a substantial, enduring and expanding business under this Agreement, and to sell a
maximum quantity of Licensed Merchandise consistent with the high standards and prestige associated
with the Trademarks during the Term of this Agreement and consistent with the terms of this
Agreement.

3. EXCLUSIVITY.

(a) Licensor warrants and represents that it will not itself sell, distribute or otherwise
exploit, nor license or grant any other person or entity the rights to sell, distribute or
otherwise exploit any products bearing (i) the Trademarks; (ii) any mark that comprises, consists
of or includes ELIZABETH, LIZ, and/or CLAIBORNE; (iii) or any combination of the foregoing; (iv)
any derivative of any of the foregoing; or (iv) any mark confusingly similar to the foregoing in
the Sales Territory from the Exclusivity Effective Date and continuing throughout the Term of this
Agreement. Notwithstanding the preceding, Licensee acknowledges and agrees that:

(i) the Trademarks are subject to licenses for certain product categories with third parties
as indicated on Exhibit C (the “Existing Licenses”) and that Licensee’s rights hereunder do not
include rights to the categories of products listed on such Exhibit; ***

 

5

 

***

(ii) Licensor will retain the right to manufacture jewelry products (other than “watches” and
“fine jewelry”, defined as jewelry made of precious metals, such as karat gold and .925 silver,
jewelry set with genuine or created precious or semiprecious stones or pearls, and in-case watches)
bearing any of the Trademarks, provided that Licensor will sell such jewelry products only to
Licensee on terms to be agreed to by the parties from time to time. Licensor agrees to notify
Licensee of any changes to the current manufacturing structure for jewelry products it manufactures
under this subsection

(b) Furthermore, during the term of this Agreement, Licensor retains the following rights in
the Sales Territory:

(i) all rights to the Liz Claiborne New York trademark; provided that Licensor will limit
distribution in the Sales Territory to retail sales through Licensor’s retail stores (the “Outlet
Stores”) and through QVC, Inc. ***. It is understood that there shall be no limitation on
distribution outside of the Sales Territory.

(ii) all rights to the Lizwear trademark; provided that Licensor agrees that distribution of
Lizwear will be limited to ***.

 

6

 

(iii) all rights to the LizGolf trademark; provided that Licensor agrees that distribution of
LizGolf will be limited to ***; and

(iv) all rights to the Trademarks not otherwise granted under this Agreement.

(v) In addition, Licensee acknowledges that the lenders and certain other secured partners
under Licensor’s Amended and Restated Credit Agreement, together with any amendment, modification,
replacement, renewal, extension or refinancing thereof (the “Credit Agreement”), have been and may
in the future be granted, an irrevocable, royalty-free, non-exclusive license in order for the
lenders and such secured parties to exercise their rights in the event of a Licensor default under
the Credit Agreement.

4. DESIGN AND PRODUCTION.

4.1 During the Term, Licensor will provide design services to Licensee as provided in this
Section 4, and Licensee will only utilize designs provided or approved by Licensor on Licensed
Products. Licensor will reasonably adhere to Licensee’s design and sourcing calendar by category
and collection by season. A sample calendar is attached as Exhibit D. Design calendars may be
updated from time to time upon mutual agreement of the parties, any such updates to be agreed to in
adequate time for both parties to comply with such updated calendar.

4.2 Licensee agrees to consider Licensor’s suggestions regarding fabric and trim vendors.
Licensee has the final approval regarding which fabric and trim vendor will be utilized, provided
that Licensee meets the Licensor’s specifications in the product packages.

 

7

 

4.3 If Licensor provides the product design, Licensor is responsible for providing the design
aesthetic, including color, concept, print and pattern, substantially in the form of the product
packages in Exhibit E. Beginning on March 1, 2010, or as soon as the parties are reasonably able to meet software and technical requirements, both parties will be responsible
for directly utilizing the Flex PLM system, provided Licensee will be responsible for any license
fees related to the Flex PLM system incurred by Licensor. Licensor may, from time to time, request
that Licensee provide designs. In such event, Licensee will provide such designs for Licensor’s
approval, including color, concept, print and pattern.

4.4 ***

4.5 Licensee will provide the Concept Sample and submit to Licensor. Licensor will evaluate
the Concept Sample to ensure it meets the design specifications and for initial fit. On the
initial fit, Licensor will give feedback as to technical specifications and design aesthetic to
bring the Concept Sample in line with the original design aesthetic. If Licensor, in its
reasonable discretion, advises Licensee that such Concept Sample materially differs from the design
specifications or fit, Licensee will revise and resubmit a Concept Sample.

4.6 Licensee will be responsible for the final approval of color, production and fit,
consistent with the design specifications. Licensor will be responsible for the final approval of
print strike offs.

4.7 Licensee will provide a final confirmation sample to Licensor before Licensee’s final line
turnover.

4.8 Licensor will provide conceptual design for the product packaging in the form of digital
camera-ready artwork for the logos. Licensee will create a packaging style guide to be reviewed
and mutually agreed upon at the major divisional strategy meetings. Before November 20, 2009,
Licensor will review the logos to be utilized with the Trademarks. Such logos should be planned
for use for a reasonable period of time. Following the launch of the first seasonal offerings,
Licensor will review with Licensee any changes to its Trademark strategy in the Sales Territory, including any logo changes. In such event, both parties will discuss
Licensor’s Trademark strategy and the sharing of any expenses related to logo changes. In any
event, unless mutually agreed to by the parties, Licensee is not obligated to use any new versions
of the Trademarks or logos. Licensee will source all product packaging.

 

8

 

4.9 For samples or designs submitted under this Section 4 from the date of execution through
February 28, 2010, Licensor will have ten (10) business days to approve the sample or design, such
approval not to be unreasonably withheld. For samples or designs submitted under this Section 4
from March 1, 2010, through July 31, 2010, Licensor will have seven (7) business days to approve
the sample or design, such approval not to be unreasonably withheld. For samples or designs
submitted under this Section 4 from and after August 1, 2010, Licensor will have five (5) business
days to approve the sample or design, such approval not to be unreasonably withheld. If Licensor
fails to respond to a request for approval within the agreed time-frame, the sample will be deemed
approved.

4.10 Before the start of a design season, Licensee must provide a conceptual merchandise plan
that includes a number of styles by category, target cost and SKU count within an item. Licensor
will target developing styles at a minimum 2:1 ratio to the number of styles in the conceptual
merchandise plan, unless otherwise agreed upon by the parties.

4.11 Licensor agrees to maintain 15-20 full time employees dedicated to design for the
Licensed Merchandise. Licensee agrees to maintain a sourcing and product development team for the
Licensed Products in Plano, Texas. In Asia, Licensee agrees that the Licensed Merchandise will
receive the same type of staffing that Licensee normally affords to its similar private brands.

 

9

 

4.12 A semi-annual review with Senior Product Development and Merchandising Management will be
held around the timing of the division strategy meetings as set forth on Exhibit D.

4.13 Licensee acknowledges that, subject to the Purchase Options and the licenses granted
under this Agreement, this Agreement does not grant any rights to Licensee with respect to any
design independently developed by Licensee or Licensee’s suppliers and used on any Licensed
Products. Subject to the Purchase Options, Licensee and Licensor agree and intend that all created
works of authorship including, but not limited to, such works comprising or included in Licensed
Products, advertising, packaging, and merchandising materials, created by Licensee or other persons
or entities and used with the Licensed Mark(s), are Works Made For Hire within the meaning of the
United States Copyright Act of 1976 shall be the property of Licensor who shall be entitled,
subject to the licenses granted to Licensee under this Agreement, to use and license others to use
such works of authorship. To the extent such works of authorship are not Works Made For Hire as
defined by the United States Copyright Act of 1976, Licensee shall assign to Licensor copyright in
such works of authorship.

5. EFFECTIVE DATE, TERM, TERMINATION, OPTIONS.

5.1 This Agreement shall be effective as of the date first written above and shall extend from
such effective date through July 31, 2020, (the “Expiration Date”) equaling 10 Contract Years
(defined below), unless earlier terminated as provided below, provided that, unless terminated for
default earlier, the first seasonal offering under this Agreement will be the Fall 2010 season and
the last seasonal offering will be the Summer season of the last Contract Year. All contract
periods referred to in this Agreement shall be 12-month periods, with each Contract Year commencing
the first day of Licensee’s fiscal month of August and each Contract Year expiring the last day of Licensee’s fiscal month of July (each such 12 month period a
“Contract Year”); provided that the First Contract Year will consist of approximately 20 months,
commencing on the date first written above (the “Commencement Date”) and expiring on the last day
of Licensee’s fiscal July 2011. Notwithstanding the commencement of this Agreement on the
Commencement Date, Licensee’s exclusive rights will not begin until August 1, 2010 (the
“Exclusivity Effective Date”).

 

10

 

5.2 Licensee will have the option to terminate this Agreement for convenience prior to the
Expiration Date (“Termination Option”). Licensee must exercise the Termination Option, if at all,
during the fourth Contract Year, but in no event later than July 31, 2014. If the Licensee
exercises the Termination Option, the term of this Agreement will expire at the end of the sixth
Contract Year.

5.3 It is the parties’ intention that the Licensee be granted options (the “Purchase Options”)
to acquire from Licensor the Option Assets (defined below) on the terms and conditions set forth in
this section. However, Licensee understands and acknowledges that pursuant to Licensor’s Credit
Agreement, the Option Assets are subject to a first priority lien in favor of the lenders and
certain other secured parties thereunder. Moreover, Licensee understands and acknowledges that
pursuant to the terms of the Credit Agreement, Licensor must obtain the consent of certain required
lenders under the Credit Agreement in order to grant an option (including the Purchase Option) to
the Option Assets (the “Lender Consent”). Upon Licensor obtaining the Lender Consent, Licensor
will grant to Licensee the Purchase Option, on the terms and subject to the conditions set forth in
this Section 5.3. Notwithstanding anything to the contrary contained in this Agreement, a Purchase
Option, if granted, may only be exercised by Licensee during an Option Period.

 

11

 

5.3.1 The “Option Assets” shall mean the “Acquired Assets” as defined in the Purchase
Agreement attached hereto as Exhibit G (the “Purchase Agreement”).

5.3.2 No later than 30 calendar days before the Year 4 Option Period (as defined below), and
the Year 10 Option Period, Licensor will provide Licensee with a then current draft Disclosure
Letter (as defined in the Purchase Agreement).

5.3.3 Year Four Purchase Option. During the period ending 10 calendar days after the
end of the fourth Contract Year (the “Year 4 Option Period”), Licensee may exercise the Purchase
Option.

(a) If Licensee elects to exercise the Year Four Purchase Option, Licensee shall deliver to
Licensor, during the Year 4 Option Period and in accordance with the requirements of Section 17.1
hereof, an irrevocable written notice (the “Exercise Notice”) of such exercise, together with two
originals of the Purchase Agreement, revised only to reflect the provisions of this Section 5.3.3
and to include a then current Disclosure Letter, duly executed by Licensee. Within 10 calendar
days after valid delivery of the Exercise Notice to Licensor by Licensee, Licensor shall date and
duly execute the two originals of the Purchase Agreement executed and delivered by Licensee to
Licensor and shall deliver to Licensee, in accordance with the requirements of Section 17.1 hereof,
one fully executed original of the Purchase Agreement, together with all required exhibits, annexes
and disclosure schedules thereto, which thereupon shall become binding on the parties in accordance
with its terms (the “Executed Year 4 Purchase Agreement”). Licensor shall not be obligated (i) in
connection with Licensee’s exercise of the Year Four Purchase Option, to accept any terms or
conditions, or to make any representations, warranties or covenants, regarding the Option Assets or
otherwise, that are not set forth in the Purchase Agreement or (ii) to sell the Option Assets to Licensee except in accordance with the terms and conditions set forth in the
Executed Year 4 Purchase Agreement.

 

12

 

(b) If Licensee elects to exercise the Year Four Purchase Option, this License Agreement will
terminate upon the Closing of the Executed Year 4 Purchase Agreement. If Licensee does not validly
exercise the Year Four Purchase Option during the Year 4 Option Period, the Year Four Purchase
Option shall terminate, and be of no further force and effect, as of the expiration of the Year 4
Option Period, in which event this Agreement will continue in full force and effect.

(c) If Licensee elects to exercise the Year 4 Purchase Option, the “Purchase Price” (as used
in the Purchase Agreement) to be paid by Licensee will be an amount equal to the greater of (i) ***
and (ii) *** times the average of the total payments paid or payable by Licensee in respect of the
fourth and fifth Contract Years, but not to exceed ***.

(d) If Licensee elects to exercise the Year 4 Purchase Option, the “Closing” (as used in the
Purchase Agreement) shall be subject to a closing condition, for the benefit of Licensor, that all
Fees in respect of all periods through and including the fifth Contract Year shall have been paid
in full.

5.3.4 Change of Control Purchase Option. Licensee may exercise the Purchase Option,
following a Change of Control (defined below), during the period of 10 calendar days after the
later of Licensee’s receipt of (i) written notice from Licensor of a Change of Control and (ii)
Licensor’s Disclosure Letter (the “Change of Control Option Period”).

 

13

 

(a) “Change of Control” shall mean the first occurrence of any of the following:

(i) the sale, in one or a series of related transactions, of all or substantially all of the
assets of the Licensor and its subsidiaries, taken as a whole;

(ii) the liquidation or dissolution of the Licensor;

(iii) the acquisition by any person or group (within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934) of beneficial ownership of more than 50% of the common stock of
Licensor; or

(iv) the Licensor consolidates with, or merges with or into, any person or group (within the
meaning of Section 13(d)(3) of the Securities Exchange Act of 1934), or any person or group (within
the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934), consolidates with, or
merger with or into, the Licensor, in any such event pursuant to a transaction in which the
outstanding voting stock of the Licensor is converted into or exchanged for cash, securities or
other property, other than any such transaction where the voting stock of the Licensor outstanding
immediately prior to such transaction is converted into or exchanged for voting stock of the
surviving or transferee person constituting a majority of the outstanding shares of such voting
stock of such surviving or transferee person immediately after giving effect to such transaction.

(b) If Licensee elects to exercise the Change of Control Purchase Option, Licensee shall
deliver to Licensor, during the Change of Control Option Period and in accordance with the
requirements of Section 17.1 hereof, the Exercise Notice, together with two originals of the
Purchase Agreement, revised only to reflect the provisions of this Section 5.3.4, and to include a
then current Disclosure Letter, duly executed by Licensee. Within 10 calendar days after valid
delivery of such Exercise Notice to Licensor by Licensee, Licensor shall date and duly execute the
two originals of the Purchase Agreement executed and delivered by Licensee to Licensor and shall
deliver to Licensee, in accordance with the requirements of Section 17.1 hereof, one fully executed
original of the Purchase Agreement, together with all required exhibits, annexes and disclosure
schedules thereto, which thereupon shall become binding on the parties in accordance with its terms
(the “Executed COC Purchase Agreement”). Licensor shall not be obligated (i) in connection with
Licensee’s exercise of the Change of Control Purchase Option, to accept any terms or conditions, or
to make any representations, warranties or covenants, regarding the Option Assets or otherwise, that are not set forth in the Purchase Agreement or (ii) to sell the
Option Assets to Licensee except in accordance with the terms and conditions set forth in the
Executed COC Purchase Agreement.

 

14

 

(c) If Licensee exercises the Change of Control Purchase Option, this License Agreement will
terminate upon the Closing of the Executed COC Purchase Agreement. If Licensee does not validly
exercise the Change of Control Purchase Option during the Change of Control Option Period, the
Change of Control Purchase Option shall terminate, and be of no further force and effect, as of the
expiration of the Change of Control Option Period, in which event this Agreement will continue in
full force and effect.

(d) If Licensee exercises the change of Control Purchase Option, the “Purchase Price” (as used
in the Purchase Agreement) to be paid by Licensee will be the sum of Fees payments due through the
Closing of the Executed COC Purchase Agreement plus the amounts shown below:

	 	 	 
	EXERCISE NOTICE IN CONTRACT YEAR(S)	 	AMOUNT
	***

	 	***
	***

	 	***
	***

	 	***
	***

	 	***

 

15

 

5.3.5 LCNY Purchase Option. Licensee may exercise the Purchase Option during the period of 10
calendar days after the later of (i) *** or (ii) Licensor’s Disclosure Letter (the “LCNY Option
Period”).

(a) If Licensee elects to exercise the LCNY Purchase Option (defined in Section 10.2.5),
Licensee shall deliver to Licensor, during the LCNY Option Period and in accordance with the
requirements of Section 17.1 hereof, the Exercise Notice, together with two originals of the
Purchase Agreement, revised only to reflect the provisions of this Section 5.3.5, and to include a
then current Disclosure Letter, duly executed by Licensee. Within 10 calendar days after valid
delivery of the Exercise Notice to Licensor by Licensee, Licensor shall date and duly execute the
two originals of the Purchase Agreement executed and delivered by Licensee to Licensor and shall
deliver to Licensee, in accordance with the requirements of Section 17.1 hereof, one fully executed
original of the Purchase Agreement, together with all required exhibits, annexes and disclosure
schedules thereto, which thereupon shall become binding on the parties in accordance with its terms
(the “Executed LCNY Purchase Agreement”). Licensor shall not be obligated (i) in connection with
Licensee’s exercise of the LCNY Purchase Option, to accept any terms or conditions, or to make any
representations, warranties or covenants, regarding the Option Assets or otherwise, that are not
set forth in the Purchase Agreement or (ii) to sell the Option Assets to Licensee except in
accordance with the terms and conditions set forth in the Executed LCNY Purchase Agreement.

(b) If Licensee exercises the LCNY Purchase Option, this License Agreement will terminate upon
the Closing of the Executed LCNY Purchase Agreement. If Licensee does not validly exercise the
LCNY Purchase Option during the LCNY Option Period, the LCNY Purchase Option shall terminate, and
be of no further force and effect, as of the expiration of the LCNY Option Period, in which event
this License Agreement will continue in full force and effect, unless Licensee exercises, or has
exercised, its right to terminate this Agreement.

 

16

 

(c) If Licensee exercises the LCNY Purchase Option, the “Purchase Price” (as used in the
Purchase Agreement) to be paid by Licensee will be the sum of Fees payments due through the Closing
of the Executed LCNY Purchase Agreement plus the amounts shown below:

	 	 	 
	EXERCISE NOTICE IN CONTRACT YEAR(S)	 	AMOUNT
	***

	 	***
	***

	 	***
	***

	 	***
	***

	 	***

5.3.6 Year Ten Option. Licensee may exercise the Purchase Option during the period
ending 10 calendar days after the end of the ninth Contract Year (“Year 10 Option Period”),
together with the Year 4 Option Period, the Change of Control Option Period and the LCNY Option
Period, the “Option Periods”).

(a) If Licensee elects to exercise the Year Ten Purchase Option, Licensee shall deliver to
Licensor, during the Year 10 Option Period and in accordance with the requirements of Section 17.1
hereof, the Exercise Notice, together with two originals of the Purchase Agreement, revised only to
reflect the provisions of this Section 5.3.6, and to include a then current Disclosure Letter, duly
executed by Licensee. Within 10 calendar days after valid delivery of the Exercise Notice to
Licensor by Licensee, Licensor shall date and duly execute the two originals of the Purchase
Agreement executed and delivered by Licensee to Licensor and shall deliver to Licensee, in
accordance with the requirements of Section 17.1 hereof, one fully executed original of the
Purchase Agreement, together with all required exhibits, annexes and disclosure schedules thereto, which thereupon shall become binding on the parties in accordance with its terms (the
“Executed Year 10 Purchase Agreement”). Licensor shall not be obligated (i) in connection with
Licensee’s exercise of the Year Ten Purchase Option, to accept any terms or conditions, or to make
any representations, warranties or covenants, regarding the Option Assets or otherwise, that are
not set forth in the Purchase Agreement or (ii) to sell the Option Assets to Licensee except in
accordance with the terms and conditions set forth in the Executed Year 10 Purchase Agreement.

 

17

 

(b) If Licensee exercises the Year Ten Purchase Option, this License Agreement will terminate
upon the Closing of the Executed Year 10 Purchase Agreement. If Licensee does not validly exercise
the Year Ten Purchase Option during the Year 10 Option Period, the Year 10 Purchase Option shall
terminate, and be of no further force and effect, as of the expiration of the Year 10 Option
Period, in which event this Agreement will continue in full force and effect.

(c) If Licensee exercises the Year 10 Purchase Option, the “Purchase Price” (as used in the
Purchase Agreement) to be paid by Licensee will be ***.

(d) If Licensee exercises the Year 10 Purchase Option, the “Closing” (as used in the Purchase
Agreement) shall be subject to a closing condition, for the benefit of Licensor, that all Fees in
respect of all periods through and including the tenth Contract Year shall have been paid in full.

5.4 If Licensor has not obtained the Lender Consent by October 8, 2010, the Licensee shall
have the right to request by notice delivered under Section 17.1 to renegotiate the terms hereof.
If Licensee has made such request and the parties have not reached an agreement on new terms within
sixty days from Licensor’s receipt of Licensee’s notice, either party can terminate this Agreement,
which shall be the sole and exclusive remedy of Licensee under this Agreement or otherwise against
Licensor as a result of the failure to obtain the Lender Consent.

 

18

 

6. RIGHTS ON TERMINATION/EXPIRATION.

(a) Upon the expiration or termination of this Agreement (whether by reason of the expiration
of the Term of this Agreement, or by earlier termination of this Agreement as provided hereunder or
otherwise, but not including if this Agreement is terminated following Licensee’s exercise of any
Purchase Option), all rights herein granted to Licensee shall terminate and revert automatically to
Licensor without any payment of consideration of any kind to Licensee, and, subject to Licensee’s
rights set forth in Section 6(d), Licensee hereby irrevocably releases and disclaims any right or
interest in or to any and all of the foregoing after the effective date of such expiration or
termination of this Agreement and neither Licensee nor any of its receivers, representatives,
trustees, agents, successors or assigns (by operation of law or otherwise) will have any right to
manufacture, exploit, advertise, merchandise, promote, sell, distribute or deal in or with Licensed
Merchandise, and Licensee and all of its assignees, successors or assigns (by operation of law or
otherwise) will forthwith discontinue all use of the IP Rights, Marks and any derivation,
component, variation or simulation thereof, or any mark confusingly similar therewith, and all
references thereto or hereto .

(b) Licensee agrees that from the date of expiration or termination of this Agreement (whether
by reason of the expiration of the term of this Agreement, or by earlier termination of this
Agreement as provided hereunder or otherwise but not including if this Agreement is terminated
following Licensee’s exercise of any Purchase Option), Licensee shall not place new orders for
Licensed Products to be manufactured.

 

19

 

(c) Following the expiration or termination of this Agreement (whether by reason of the
expiration of the term of this Agreement, or by earlier termination of this Agreement as provided
hereunder or otherwise but not including if this Agreement is terminated following Licensee’s
exercise of any Purchase Option), Licensee will maintain Licensor’s access to systems and
information for at least nine months after the termination or expiration.

(d) Following the expiration or termination of this Agreement (whether by reason of the
expiration of the term of this Agreement, or by earlier termination of this Agreement as provided
hereunder or otherwise, but not including if this Agreement is terminated following Licensee’s
exercise of any Purchase Option), Licensee may, on a non-exclusive basis use the Licensed Marks in
connection with the sale of Approved Licensed Merchandise for the six (6) month period immediately
following the expiration or termination (the “Sell-off Period”) provided Licensee fully complies
with the provisions of this Agreement in connection with such disposal. Licensee will be obligated
to pay Licensor the sale royalty of *** in respect of all of its sales of Licensed Merchandise
during the Sell-off Period.

6.1 Outlet Rights & Obligations. In the event Licensee exercises the Year 4 Purchase
Option, Licensor agrees that net sales of products bearing trademarks licensed to Licensor under
the Reverse License in the Purchase Agreement through its Outlet Stores (“Outlet Net Sales”) during
the period of the sixth Contract Year through the tenth Contract Year shall be subject to payment
of a commission to Licensee of ***. Outlet Net Sales shall mean the actual retail price paid to
Licensor by Licensor’s retail customers (not including any sales or other taxes, transportation or
handling charge) for all products sold under the Reverse License at its Outlet Stores, less any
discounts, refunds, credits, or returns given by Licensor to its customers. Licensor agrees to pay
Licensee any commissions due under this Subsection 6.1. on a quarterly basis within forty-five (45) days after the end of the fiscal calendar. If payments of such commissions
are delayed for any reason, interest will accrue on the unpaid principal amount of such payment at
the prime rate (as defined) plus two (2%) percent (the “Default Rate”). The “prime rate” shall be
as published from time to time by JP Morgan Chase Bank in New York City, adjusted each January 1
and July 1, to reflect the prime rate in effect at each such date, each such adjusted rate to apply
for the six (6) months immediately following such adjustment.

 

20

 

6.2 Notwithstanding any termination or expiration of this Agreement (whether by reason of the
expiration of the term of this Agreement, or by earlier termination of this Agreement as provided
hereunder or otherwise), the parties will have, and hereby reserve, all the rights and remedies
which either party may have, at law or in equity, including with respect to (a) the collection of
royalties or other funds payable by the other party pursuant to this Agreement; (b) the enforcement
of all rights relating to the establishment, maintenance and protection of the Licensed Mark(s);
and (c) damages for breach of this Agreement on the part of the other party.

6.3 Notwithstanding anything to the contrary contained in this Agreement, if this Agreement
expires or terminates other than under a Purchase Option, Licensor will have the right to grant
licenses with respect to Licensed Merchandise, in the Territory, at any time commencing twelve (12)
months prior to the expiration or termination of this Agreement, except that in no event may
Licensor or any third party licensee of Licensor ship for sale any Licensed Merchandise until after
the effective date of the termination or expiration of this Agreement, and the first collection of
Merchandise to be sold thereunder is the collection following the last seasonal collection sold
hereunder. Nothing contained herein will be construed to prevent any such third party licensee from showing such Licensed Merchandise and accepting orders
therefore prior to the termination hereof.

 

21

 

7. DESIGN SERVICE FEES AND ROYALTIES

7.1 Payment Periods. Each Contract Year will consist of four quarterly payment
periods, with the first quarterly period of each year commencing on the first day of Licensee’s
fiscal month of August and the fourth quarterly period ending on the last day of Licensee’s fiscal
month of July, with the first quarterly payment period of the first Contract Year commencing on the
first day of Licensee’s fiscal month of August 2010 and the last quarterly period of the first
Contract Year ending on the last day of Licensee’s fiscal month of July 2011. For each quarterly
payment period, Licensor will make a payment that includes a Design Service Fee and a Royalty, as
described below (collectively, “Fees”) within forty-five (45) days after the end of each fiscal
quarter.

7.2 Design Service Fee. In each Contract Year, Licensee will pay ***, in equal
quarterly payments, for the design services performed by Licensor, as described in Section 4 ***.

7.3 Royalty. In each Contract Year, Licensee will pay Licensor a Royalty, in
quarterly payments consisting of the Sales Royalty plus the Gross Profit Share (“Royalty”).

7.4 Sales Royalty. The Sales Royalty will be an amount equal to:

*** on Net Sales up to the first *** achieved in each Contract Year,
then

*** on Net Sales over *** achieved in such Contract Year

***

***

 

22

 

7.5 ***

7.6 Guaranteed Minimum Fee. At a minimum, in each Contract Year Licensee will pay to
Licensor for such Contract Year a guaranteed minimum royalty and Design Service fee (“Guaranteed
Minimum Fee” or “GMF”), as set forth below. Other than the First Contract Year, the GMF for each
Contract Year shall be paid in equal quarterly installments (each such amount a “Quarterly GMF”),
with each Quarterly GMF payment to be made within forty-five (45) days of the end of each of
Licensee’s fiscal quarters for such Contract Year. For the First Contract Year, Licensee shall pay
Licensor the amount of *** as part of the First Contract Year’s GMF payment, such amount to be
payable within five (5) business days of the Licensor notifying Licensee of the Lender Consent, and
the rest of the First Contract Year’s GMF in four equal quarterly installments within forty-five
(45) days of the end of each of the Licensee’s fiscal quarters for the First Contract Year. No
credit shall be permitted against the GMF paid or payable in respect of any Contract Year on
account of GMF or Fee paid or payable in respect of any other Contract Year.

 

23

 

7.7 Excess Royalty. For each quarterly payment period of each Contract Year, Licensee will
pay Licensor an excess royalty, which will be the amount by which the Royalty calculated for such
quarterly period exceeds the Quarterly GMF. Such payments will be made within forty-five (45)
days of the end of such quarterly payment period for such Contract Year (the “Excess Royalty”).
Each quarterly Royalty Payment will be adjusted so the year to date sum of Royalty payments within
such contract year is equal to the greater of year to date GMF or the total year to date royalty
calculated. Notwithstanding the preceding, the parties agree that for purposes of calculating the
First Contract Year’s Excess Royalty, in lieu of using such Contract Year’s Annual GMF to calculate
excess royalty payment and any true-up, the parties will use the amount of ***.

 

24

 

***

If at any time, Licensor owes Licensee after the Quarterly Royalty calculation, Licensee can apply
this credit towards quarterly GMF payments. If Licensor owes Licensee more than quarterly GMF due,
than Licensor must pay Licensee within 45 days of the end of Licensee’s fiscal quarterly period.

 

25

 

7.8 Guaranteed Minimum Fee Amounts

GUARANTEED MINIMUM FEES (GMF)

	 	 	 
	CONTRACT YEAR	 	AMOUNT
	***

	 	***
	***

	 	***
	***

	 	***
	***

	 	***
	***

	 	***
	***

	 	***
	***

	 	***
	***

	 	***
	***

	 	***
	***

	 	***

***

7.9 If the payment of any Fees is delayed for any reason, interest will accrue on the unpaid
principal amount of such payment at the prime rate (as defined) plus two (2%) percent (the “Default
Rate”). The “prime rate” shall be as published from time to time by JP Morgan Chase Bank in New
York City, adjusted each January 1 and July 1, to reflect the prime rate in effect at each such
date, each such adjusted rate to apply for the six (6) months immediately following such
adjustment.

7.10 ***

 

26

 

***

8. REPORTS, RECORD KEEPING AND AUDITS

8.1 Maintenance of Records. The parties shall keep true and accurate books of account
and records in accordance with generally accepted accounting principles, consistently applied,
covering all transactions relating to this Agreement and the licenses hereby granted or the Reverse
License granted in the Purchase Agreement (the “Books and Records”). Such Books and Records shall
be maintained for a period sufficient for the other party to perform any audits authorized by this
Agreement, such period to consist of at least a 24-month rolling period.

8.2 Quarterly Reports. All quarterly fee payments shall be accompanied by a report
(individually, the “Quarterly Report” and collectively, the “Quarterly Reports”) substantially in
the form set forth on Exhibit G.

8.3 Audit. Once a year for the prior 24 months only, a party and its duly authorized
financial representatives, following the other party’s Chief Financial Officer’s receipt of a
notice from the first party’s Chief Financial Officer, will have the right upon reasonable notice
and at all reasonable hours during normal business days to examine the Books and Records relevant
to the payments of amounts due by the other party under this Agreement or the Purchase Agreement,
and all other documents and materials in the possession or under the control of the party being
audited that are reasonably related to payment of amounts under this Agreement. Each party will
be responsible for its own costs of any such audit. Any undisputed amounts due under this
Agreement discovered as a result of such audit will be paid within five (5) business days.

This Section 8 will survive any termination of this Agreement.

 

27

 

9. STANDARDS OF QUALITY / QUALITY CONTROL 

9.1 Standards of Quality. The Licensed Merchandise and any expression by Licensee,
directly or indirectly, which by its nature conveys to others the existence of a relationship
between Licensee and the Trademarks or the Licensed Merchandise (including, without limitation, all
packaging, labeling, fixturing, advertising, point of sale and sales promotion materials and
product literature (any such expression is herein referred to as “Trademark Use Materials”) shall
be of a quality, style, appearance, distinctiveness and quality which shall be materially
consistent with Licensee’s private brand merchandise of a similar price and taste level and shall
in all respects (including, without limitation, the manufacture, sale, marketing and advertising)
be in accordance with all of the terms and provisions of this Agreement, with all applicable laws,
rules and regulations and with any approval decision made by Licensor, shall not materially and
adversely affect any rights of ownership of Licensor in the Trademarks and shall not materially
derogate or detract from the repute of Licensor or the Trademarks.

9.2 Manufacturing/Sourcing. (a) Licensee shall ensure that each of its suppliers of
Licensed Products agrees to the standards set forth in Licensee’s standard purchase contract forms,
and Licensee will monitor the performance of its contractors for compliance with such standards,
and will enforce such standards, all in the usual manner in which such standards are enforced in
regard to other suppliers of Licensee’s private brand merchandise. In addition, with respect to the
Licensed Products, Licensee shall (a) require that each of its suppliers (i) post Licensor’s
Standards of Engagement in a conspicuous place in such suppliers’ facilities, (ii) complies with
Licensor’s Standards of Engagement, as set forth in Exhibit H; and (b) provide Licensor with a copy
of its legal compliance survey for each supplier and make available details regarding such survey
upon request. Furthermore, Licensor shall have the right to review
Licensee’s supplier and manufacturer list. In addition, Licensor shall have

 

28

 

the right
to inspect, and audit, either directly or through its auditors or the Fair Labor Association or its
auditors, such suppliers and manufacturers, and Licensee shall take commercially reasonable efforts
to assist in the inspection and auditing of such suppliers and factories. Licensee agrees to cease
doing business with any supplier, with respect to Licensed Product, in the event such supplier
fails to permit such inspection and audit or fails to comply with .Licensee’s standards or
Licensor’s Standards of Engagement within sixty (60) days of such failure. All information or
documents provided to Licensor under this subsection will be held confidential and will not be used
other than to verify compliance with this section. In no instance will this information be shared
with Licensor’s sourcing organization.

10. PROTECTION OF TRADEMARKS

10.1 Acknowledgments and Agreements of Licensee. As a material inducement to Licensor
to enter into this Agreement, and as a material part of the consideration to Licensor hereunder,
Licensee hereby acknowledges and agrees that:

10.1.1 (i) As between the parties, Licensor owns the Trademarks in the Sales Territory and all
rights, registrations, applications and filings with respect to such Trademarks and all renewals
and extensions of any such registrations, applications and filings; and (ii) Licensee is acquiring
hereby only the right to use the Trademarks for the purpose stated in and pursuant to the terms and
conditions of the Agreement.

 

29

 

10.1.2 (i) Great value is placed on the Trademarks, and the goodwill associated therewith;
(ii) the Trademarks and the IP rights and all rights therein and goodwill pertaining thereto belong exclusively to Licensor; and (iii) all authorized use of the Trademarks and the
IP rights by Licensee shall inure to the benefit of Licensor.

10.1.3 The consuming public and the industry associate the Trademarks with products of
consistently high quality.

10.2 Protection of Rights

10.2.1 Restriction on Use. Licensee shall not use or permit the use of the Trademarks
for any purpose or use other than the uses licensed under this Agreement.

10.2.2 General. Licensee shall cooperate fully and in good faith with Licensor, at
Licensor’s sole expense, for the purpose of securing and preserving Licensor’s rights in and to the
Trademarks and in connection with protecting lenders’ and other secured parties’ rights under the
Credit Agreement. Licensee shall cause to appear on and in connection with the Licensed Products
and the stores and advertising such reasonable statutory trademark notices and other notices
proclaiming and identifying the Trademarks as property of Licensor as Licensor may deem appropriate
from time to time.

10.2.3 Registration. Licensee shall, upon reasonable request and at Licensor’s sole
expense, supply to Licensor enough specimens of advertisements, tags, labels and other uses of the
Trademarks as may be required in connection with any of Licensor’s Trademark applications or
registrations in the Territory. Licensee shall execute any instrument Licensor shall reasonably
deem necessary or desirable to record or cancel Licensee as a registered user of the Trademarks, it
being understood and agreed that Licensee’s right to use the Trademarks in the event that the
filing of a registered user application is required or is requested by Licensor shall commence only
upon the filing of such registered user application, and shall continue only so long as this
Agreement remains in effect.

 

30

 

10.2.4 Customer Complaints. Licensee shall, in connection with its duty to use the
Trademarks so as to promote the continuing goodwill thereof, give immediate attention and take any
reasonably necessary action, consistent with its customer relations and other policies, to satisfy
all legitimate customer complaints brought against Licensee in connection with the Licensed
Products. Licensee shall give Licensor immediate written notice of all complaints that might
result in legal action between Licensor and any third party.

10.2.5 ***

 

31

 

10.3 Covenants and Agreements of Licensor. As a material inducement to Licensee to
enter into this Agreement, Licensor hereby agrees that: (i) subject to the Credit Agreement and the
Existing Licenses, as each such Existing License exists as of the effective date of this Agreement,
Licensor will not (and shall not permit any third party to) assign, transfer or convey any of the
Trademarks or IP Rights or encumber any of the Trademarks or IP Rights in any manner in the Sales Territory, including, without limitation, by way of granting or permitting
any Lien (as defined below) on any of the Trademarks or IP Rights; (ii) Licensor will use
commercially reasonable efforts to maintain the standards set forth in the Existing Licenses with
respect to the prestige associated with each of the Trademarks; (iii) Licensor will periodically
confer with Licensee with respect to the prosecution and maintenance of all applications to
register and registrations for any of the Trademarks in the Territory; (iv) upon Licensee’s written
request and at Licensee’s cost and expense, Licensor will promptly file application(s) to register
any of the Trademarks for goods and/or services for which Licensee intends to use such Trademarks
and for which there is not, at the time of such request by Licensee, any pending application or
valid and unexpired registration for such Trademarks for such goods and/or services; (v) Licensor
will diligently prosecute all applications for registration of any of the Trademarks in the
Territory and obtain registrations for such Trademarks in the Territory; (vi) Licensor will
maintain in full force and effect all registrations for any Trademarks in the Territory; and (vii)
Licensor will pay all applicable fees and make all applicable filings when due with respect to all
of the foregoing in clauses (iv), (v) and (vi). For purposes of this Agreement, “Lien” means any
charge, claim, pledge, condition, encumbrance, equitable interest, option, security interest,
mortgage, right of first refusal, or restriction of any kind, including, without limitation, any
restriction on use, transfer, receipt of income or exercise of any other attribute of ownership.

10.4 Additional Covenant and Agreement of the Parties. Neither party will take any
action or omit to take any action (and shall not permit any third party to take any action or omit
to take any action) that is reasonably likely to tarnish or diminish the reputation or goodwill
associated with any of the Trademarks or the IP Rights;

 

32

 

10.5 Enforcement. Each party agrees to reasonably promptly notify the other party in
writing of any infringement, dilution or violation of any of the Trademarks in the Sales Territory
by any third party of which such party becomes aware (collectively, “Violation”). Licensor will,
at its sole cost and expense, promptly take all action the parties mutually deem necessary to abate
such Violation. If any such Violation is not completely abated to the parties’ mutual satisfaction
within ninety (90) days after Licensor first becomes aware of such Violation, Licensor will, if
mutually agreed upon by the parties in their reasonable business judgment, promptly commence, and
diligently prosecute, litigation or other appropriate legal proceeding against such third party
engaged in such Violation (or reasonably suspected to be engaged in such Violation). As between
the parties, Licensor will control the prosecution of any such litigation or proceeding unless
otherwise mutually agreed upon by the parties in writing, provided that Licensor will regularly
confer with Licensee regarding, and keep Licensee apprised of the current status of, such
prosecution and will in good faith consider the comments, suggestions and other input of Licensee
and/or its counsel with respect to such prosecution. If Licensor controls such prosecution, the
parties agree that Licensee may, at its own expense, retain its own legal counsel to monitor such
prosecution. Licensee agrees to reasonably cooperate with Licensor, at Licensor’s expense, in
connection with any such litigation or proceeding (including, without limitation, by providing
documents and information as may be necessary or helpful in connection therewith). In the event
Licensor is awarded any damages or receives any settlement amounts in connection with any such
litigation or proceeding, such damages or settlement amounts, as the case may be, shall first be
distributed to the parties to reimburse each party for the out-of-pocket costs and expenses
incurred by such party in connection with such litigation or proceeding (in the case of Licensee,
including, without limitation, the expenses incurred by Licensee to retain its own legal counsel to monitor the prosecution of such litigation or proceeding), and any such damages or settlement
amounts, as the case may be, remaining thereafter shall be distributed equally between the parties.

 

33

 

11. EVENTS OF DEFAULT; TERMINATION.

11.1. Each of the following constitutes an event of default under this Agreement:

(a) If Licensee fails to pay any undisputed funds owing to Licensor pursuant to this Agreement
as and when due, provided that with respect to the first such failure by Licensee, Licensor will
not be entitled to call a default under this Section 11.1(a) until it gives Licensee notice thereof
and Licensee fails to cure such default within five business (5) days of such notice; or

(b) if either party institutes proceedings to be adjudicated a voluntary bankrupt or
insolvent, or consents to the filing of a bankruptcy proceeding against it, or files a petition or
answer seeking reorganization or arrangement under any bankruptcy act or any other similar
applicable law of any country, or consents to the appointment of a receiver or liquidator or
trustee or assignee in bankruptcy or insolvency for itself, or any of its property, or makes an
assignment for the benefit of creditors, or is unable to pay its debts generally as they become
due, or shall cease doing business as a going concern, or corporate action is taken by it in
furtherance of any of the foregoing purposes; or

(c) if an order, judgment or decree of a court having jurisdiction is entered adjudicating
Licensee, a bankrupt or insolvent, or approving, as properly filed, a petition seeking
reorganization of Licensee, or of all or a substantial part of its properties or assets under any
bankruptcy act or other similar applicable law, as from time to time amended, or appointing a
receiver, trustee or liquidator of Licensee, and such order, judgment or decree remains in force,
undischarged and unstayed for a period of thirty (30) days, or a judgment or lien for the payment
of money in excess of $500,000 which is secured by a security interest in the licensed merchandise is rendered or
entered against it and the same remains undischarged or unbonded for a period of thirty (30) days,
or any writ or warrant or attachment shall be issued or levied against a substantial part of its
property and the same is not released, vacated or bonded within thirty (30) days after issue or
levy; or

 

34

 

(d) if Licensee defaults, subject to applicable cure or waiver provisions, on any obligation
in excess of $500,000 which is secured by a security interest in Licensed Merchandise; or

(e) if Licensee for any reason completely discontinues the sale of all Licensed Merchandise,
or shall liquidate or dissolve; or

(f) if Licensee fails to materially comply with any of the quality requirements set forth
herein, subject to the ability to cure such failure within thirty (30) days; or

(g) if either party conducts its business hereunder in a manner which causes the other party
to send such party two or more notices of a default under this Section 11.1 in any consecutive
12-month period; or

(h) if Licensee has not begun the bona fide sale of Licensed Merchandise on or before
September 2010, unless a delay in such sales has been approved in advance in writing by Licensor;
or

 

35

 

(i) if any representation or warranty of either party contained herein is or becomes false or
misleading in any material respect, or if either party fails to perform or observe any material
term, condition, agreement or covenant in this Agreement on its part to be performed or observed, other than as provided in Paragraphs (a) through (h) of this Section 11.1, and such
default is not remedied within thirty (30) days after written notice thereof from the nondefaulting
party, unless such default is curable but is not capable of being cured through the defaulting
party’s diligent and continuous effort within such thirty (30) day period, and such party
immediately commences to cure such default, and thereafter applies its diligent and continuous best
efforts to cure such default, and does in fact cure such default within ninety (90) days of the
initial notice of default.

11.2 As used in this Agreement, the term “default” shall mean any condition, event or state of
facts which, after notice or lapse of time, or both, would be an event of default.

11.3 If any event of default occurs and is continuing, the nondefaulting party may, by written
notice to the defaulting party, immediately terminate this Agreement, subject to the cure periods
set forth in this Agreement; provided that in the event of default under Sections 11.1(b), (c),
(d), (e) (f) or (g), this Agreement will terminate automatically.

12. ASSIGNMENTS. Neither this Agreement nor any of the rights or duties hereunder may
be assigned or otherwise transferred in any way by Licensor, without the prior written consent and
agreement of Licensee, which consent shall not be unreasonably withheld; provided, that no consent
will be required in connection with any collateral assignment of this Agreement, or the rights
hereunder, to the lenders or other secured parties under the Credit Agreement. For the avoidance
of doubt, a change in control of Licensor (including any Change of Control) shall not constitute an
assignment requiring Licensee’s consent. Neither this Agreement nor any of the rights granted to or
obligations undertaken by Licensee hereunder may be transferred, assigned, pledged, sold,
mortgaged, sublicensed (except as provided in Section 2) or otherwise hypothecated or disposed of,
either directly or indirectly, in whole or in part, by operation of law or otherwise to any third-party without the prior written approval of
Licensor, which may be withheld in Licensor’s sole discretion; any attempted transfer shall be
null, void, and of no force or effect.

 

36

 

13. INDEMNIFICATIONS

13.1 Indemnification of Licensor. Licensee shall defend, indemnify and hold Licensor
and its affiliates, directors, officers, employees and agents harmless from and against any and all
third party liability claims, causes of action, suits damages and expenses (including reasonable
attorneys’ fees and expenses) (collectively, “Indemnified Losses”), which Licensor may become
liable for, or may incur, or be compelled to pay, by reason of any acts or alleged acts, whether of
omission or commission, that may arise under or in connection with this Agreement, in connection
with Licensed Merchandise manufactured by or on behalf of Licensee, except to the extent such
liability results from a breach of this Agreement by Licensor or from requirements supplied or
imposed by Licensor on a Licensed Product.

13.2 Indemnification of Licensee. Licensor shall defend, indemnify and hold Licensee
and its affiliates, directors, officers, employees and agents harmless of, from and against
Indemnified Losses, which Licensor may become liable for, or may incur, or be compelled to pay, by
reason of any claim of any third party with respect to Licensee’s use of the Marks or the IP
Rights, including without limitation, Trademark, Trade Dress, copyright or design infringement
arising out of the use of Licensee of the Trademarks as authorized in this Agreement, except to the
extent such liability results from a breach of this Agreement by Licensee.

 

37

 

13.3 An indemnified party will immediately give notice to the indemnifying party of any claim,
action or suit that may give rise to liability under this Section 13, provided that the failure of
any indemnified party to provide such notice will not relieve the indemnifying party of its obligations hereunder except to the extent of actual prejudice against an indemnifying
party. The indemnifying party will have the option to defend any such claim, action or suit,
including the right to select counsel, control the defense, assert counterclaims and crossclaims,
bond any lien or judgment, take any appeal and to settle on such terms as it, in its discretion,
reasonably deems advisable, provided prior notice of any settlement is given to the indemnified
party and such party provides its express prior consent thereto. No settlement of any claim may be
effected without the prior written consent of the indemnifying party

14. WARRANTIES

Each party represents and warrants to the other that:

14.1 It is authorized to enter into this Agreement; that this Agreement has been duly executed
by an authorized signatory of such party and constitutes the valid and binding obligation
enforceable in accordance with its terms; that at all times during the term of this Agreement, it
shall have the power and authority to perform all of its obligations under this Agreement; and that
the execution, delivery, and performance of this Agreement will not violate any agreement or
instrument to which it is a party.

14.2 This Agreement has been duly executed and delivered and constitutes a legal, valid and
binding obligation enforceable in accordance with its terms;

14.3 Neither the execution and delivery of this Agreement or any of the instruments or
agreements herein referred to nor the consummation of any of the transactions contemplated hereby
or thereby nor the performance of this Agreement or any of the instruments or agreements herein
requires the consent, approval, order or authorization of, or registration with, or the giving of
notice to, any third party or any governmental agency, public body or authority, other than any required consent under the Credit Agreement, including the Lender Consent
described above.

 

38

 

14.4 Neither the execution and delivery of this Agreement or any of the instruments or
agreements referred to nor the consummation of any of the transactions contemplated hereby or
thereby nor compliance with any of their respective terms and provisions will contravene any
existing federal, state or local law, rule or regulation or any judgement, decree or order or will
contravene or result in any breach of, or constitute any default under any agreement or instrument.

15. ADDITIONAL REPRESENTATIONS AND WARRANTIES OF LICENSOR

Licensor represents and warrants to Licensee that:

15.1 Except as set forth on Exhibit I, as of the date hereof, Licensor exclusively owns all
right, title and interest in and to the Trademarks in the Sales Territory. The Trademarks that are
registered in the Sales Territory are valid and enforceable.

15.2 Except as set forth on Exhibit I, as of the date hereof, (a) to Licensor’s knowledge, no
person or entity is infringing, conflicting with, violating or diluting any of the Trademarks in
the Sales Territory in any material respect, and (b) within the three (3) year period prior to the
date hereof, Licensor has not provided any written or, to Licensor’s knowledge, unwritten notice or
other communication to any person or entity, and no action or proceeding or claim has been asserted
by Licensor, alleging that any person or entity is infringing, conflicting with, violating or
diluting any of the Trademarks in the Sales Territory.

 

39

 

15.3 Except as set forth on Exhibit I, as of the date hereof, (a) to Licensor’s knowledge,
none of the Trademarks or the use, practice or exploitation of any of the Trademarks infringes, conflicts with, violates or dilutes any intellectual property rights owned by any
person or entity; (b) within the three (3) year period prior to the date hereof, no written claim,
notice or other communication alleging that any of the Trademarks infringes, conflicts with,
violates or dilutes any intellectual property rights owned by any person or entity has been served
on or otherwise received by Licensor from any person or entity; and (c) there is no claim or action
or proceeding pending or threatened against Licensor with respect to any of the Trademarks or the
ownership, use, validity or enforceability thereof, other than any non-final determinations of any
governmental authority with respect to the Trademarks.

15.4 All necessary registration, maintenance, renewal and other relevant filing fees in
connection with any registrations or pending applications for any of the Trademarks have been
timely paid, and all necessary documents, certificates and other relevant filings in connection
with any registrations or pending applications for any of the Trademarks have been timely filed,
with the relevant governmental authorities for the purpose of maintaining the Trademarks and all
registrations and applications therefor. No registration obtained by Licensor for any of the
Trademarks in the Territory has been cancelled, abandoned or not renewed except where Licensor has,
in its reasonable business judgment, decided to cancel, abandon or not renew such registration.

15.5 Licensor makes no representation that the use of the Marks or IP Rights in connection
with the Manufacturing License does not or will not infringe or violate the rights of any third
party.

 

40

 

16. INSURANCE

Both parties will maintain from and after the effective date and until the expiration or
termination of this Agreement, insurance of the following kinds and amounts, or in the amounts
required by law, whichever is greater:

16.1 Worker’s Compensation Insurance. Worker’s Compensation and Employer’s Liability
Insurance affording (a) protection under the Worker’s Compensation Law of the state in which work
is to be performed, or containing an all-states endorsement; and (b) Employer’s Liability
protection subject to a limit of not less than ***.

16.2 General Liability Insurance. Commercial General Liability Insurance written on
an occurrence basis in amounts not less than:

	 	 	 
	Bodily Injury	 	Property Damage
	 
	 	 
	*** per person

	 	*** per occurrence
	 
	 	 
	*** annual aggregate

	 	*** annual aggregate

This insurance shall include (a) products and completed operations liability coverage; and (b)
contractual liability coverage for the liabilities assumed under this Agreement for which such
policy applies. The commercial general liability insurance will be written as a primary policy not
contributing with any other coverage which a party may carry.

All insurance policies required to be maintained under this Agreement will be procured from
insurance companies rated at least A-VIII or better by the then current edition of Best’s Insurance
Reports published by A.M. Best Co. Upon request, each party will provide the other party with
certificates of insurance evidencing the required coverage concurrently with the execution of this
Agreement and upon each renewal of such policies thereafter, including a clause that obligates the insurer to give that party at least thirty (30) days prior written notice of any
material change or cancellation of such policies.

 

41

 

If any portion of the obligations of either party covered under this Agreement is
subcontracted, Licensee shall require each subcontractor to maintain and furnish satisfactory
evidence that such subcontractor has Worker’s Compensation and Employer’s Liability and such other
forms and amounts of insurance as Licensor deems reasonably adequate.

So long as Licensee has a net worth in excess of ***, Licensee may self-insure with respect to
the insurance coverage described herein as long as Licensee has adopted a bona fide and legally
qualified plan of self insurance with respects to such coverage that is sufficient to provide for
any losses that occur in connection with Licensee’s obligations covered by this Agreement

This section shall in no way affect the indemnification, remedy, or warranty provisions set
forth in this Agreement.

17. GENERAL PROVISIONS

17.1 Notices. All notices and other communications required or permitted to be given
under this Agreement shall be in writing and shall be delivered either by personal service,
overnight delivery service, facsimile or by United States mail, registered or certified mail,
postage prepaid, return receipt requested, and addressed as follows:

If to Licensor:

Liz Claiborne, Inc.

Attn: Executive Vice President — Partnered Brands

1441 Broadway

New York, NY 10018

 

42

 

With a copy to:

Liz Claiborne, Inc.

Attn: Legal Department

One Claiborne Ave

North Bergen, NJ 07047

If to Licensee:

General Merchandise Manager

responsible for applicable Product Category

J. C. Penney Corporation, Inc.

6501 Legacy Drive

Plano, TX 75024

With a copy to

Legal Department

J. C. Penney Corporation, Inc.

6501 Legacy Drive

Plano, TX 75024

If delivered personally or by overnight delivery service, such notices or other communications
shall be deemed delivered upon delivery. If sent by fax, such notice or other communications shall
be deemed delivered when received provided that the sender has confirmation of receipt. If sent by
United States mail, registered or certified mail, postage prepaid, return receipt requested, such
notices or other communications shall be deemed delivered upon delivery or refusal to accept
delivery as indicated on the return receipt. Either party may change its address at any time by
written notice to the other party as set forth above.

17.2 Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the parties with respect to the subject matter hereof and supersedes any and
all prior negotiations, discussions and agreements relating to the subject matter hereof. This
Agreement may not be orally changed, altered, modified or amended in any respect.

 

43

 

17.3 Successors and Assigns. This Agreement shall be binding upon and shall insure to
the benefit of the successors and permitted assigns of the parties.

17.4 Choice of Law and Jury Waiver. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAW THEREOF. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

17.5 Equitable Relief. Each party acknowledges that the other will suffer great and
irreparable harm as a result of the breach of any covenant or agreement to be performed or observed
under this Agreement other than the covenants to make monetary payments, and, whether such breach
occurs before or after the termination of this Agreement, each party acknowledges that the
non-breaching party will be entitled to apply for and receive from any court of competent
jurisdiction a temporary restraining order, preliminary injunction and permanent injunction,
without any necessity of proving damages or any requirement for the posting of a bond or other
security, enjoining the breaching party from further breach of this Agreement or further
infringement or impairment of Licensor’s rights in and to the Marks. Such relief will be in
addition to and not in substitution of any other remedies available to the non-breaching party
pursuant to this Agreement or otherwise.

17.6 No Waiver. No waiver by either party, whether express or implied, of any
provision of this Agreement or of any breach or default of any party, shall constitute a continuing
waiver of such provision or any other provisions of this Agreement, and no such waiver by any party shall prevent such party from acting upon the same or any subsequent breach or default of the
other party of the same or any other provision of this Agreement.

 

44

 

17.7 No Joint Venture. Nothing in this Agreement shall create a partnership or joint
venture or establish the relationship of principal and agent, franchise and franchiser, or any
other relationship of a similar nature between the parties hereto, and neither Licensee nor
Licensor shall have the power to obligate or bind the other in any manner whatsoever.

17.8 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

17.9 Authority. Each individual signing on behalf of a party hereto represents and
warrants that he or she is authorized to execute this Agreement on behalf of such party.

 

45

 

17.10 Confidential Information. Each party, acting in any capacity, may provide the
other with, or allow access to, certain proprietary information not generally known to the public.
Such information shall be known as “Confidential Information.” The parties shall not at any time
disclose, permit the disclosure of, release, disseminate, or transfer, whether orally or by any
other means, any part of the disclosing party’s Confidential Information to any other person or
entity, whether corporate, governmental, or individual, without the express written consent of the
other party except as required by applicable law or in connection with legal process. However,
disclosure is permitted to those persons who are involved in the final contract negotiations
between the respective parties. The provisions of this Section shall not apply to any Confidential
Information which: (a) at the time disclosed or obtained is in the public domain; (b) after being
disclosed or obtained becomes part of the public domain through no act, omission or fault of any
party; (c) was in a party’s possession at the time of disclosure or receipt and was not acquired, directly or indirectly, under an obligation of confidence; (d) such party demonstrates that
the Confidential Information was received by it from a third party after the time it was disclosed
or obtained hereunder and was not acquired by the third party, directly or indirectly, from the
party sharing the Confidential Information or from a director, employee, agent or other
representative of that party under an obligation of confidence with the other; (e) a party is
legally required to disclose. This Section shall continue in full force and effect and any rights
or remedies either party may have with respect to the other arising out of the other’s termination
of this Agreement for a period of three (3) years.

17.11 Non Disclosure. Other than as may be legally required, neither party shall
publicly disclose the existence or terms of this Agreement or its terms without the prior written
consent of the other party.

 

46

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written.

	 	 	 	 	 	 	 	 	 
	LICENSEE:	 	J. C. PENNEY CORPORATION, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	J. C. PENNEY COMPANY, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	LICENSOR:	 	LIZ CLAIBORNE, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

 

EXHIBITS

A. Product Categories

B. ***

C. Existing Licenses

D. Design Calendar

E. Product Packages

F. Purchase Agreement

G. Quarterly Report Samples

H. Standards of Engagement

I. Trademark Disclosure

 

 

 

EXHIBIT A

Product Categories

 

 

 

EXHIBIT A

Product Categories

Set forth
below is the list of product categories. This list is subject to the
Existing Licenses, as set forth on Schedule 3. No trademark licensed pursuant to the Existing Licenses is included in
the product categories below.

Women’s Apparel: Missy, Petites, Women’s, Swimwear, Outerwear, Sleepwear, and Dresses

Accessories
(Men & Women): Scarves/Wraps, Cold Weather, Sunglasses,
Optical, Belts, Hosiery, Intimates, Watches and Fine Jewelry (defined as defined in License Agreement) Handbags, Small Leather Good’s (SLG’s)

Men’s:
Sportswear, Big & Tall, Tailored Clothing, Dress Shirts, Neckwear, Belts, Underwear, Sleepwear, Classification Pants, Denim, Outerwear, Suited Separates, Dress Trousers & Sportcoats

Footwear: Women’s & Men’s

Home
& Travel: Bath, Bedding, Window, Tabletop, Floor Covering, Lighting, Furniture & Luggage

Children: Boys & Girls

Cosmetics and Fragrance

 

 

 

EXHIBIT B

***

 

 

 

***

(one page redacted)

 

 

 

EXHIBIT C

Existing Licenses

 

 

 

	 	 	 	 	 	 	 
	SCHEDULE 3	 	Product Category	 	Trademarks	 	Licensed Categories
	 
	 	 	 	 	 	 
	1

	 	Men’s Hosiery
	 	Concepts by Claiborne	 	 
	 
	 	 	 	 	 	 
	2

	 	Belts, Cold Weather Accessories (Felt Hats,
Leather Gloves, Woven Scarves, Knit Hats, Knit
Gloves, Knit Scarves), Soft Accessories
(Scarves, Capes, Wraps, Ruanas)
	 	Liz Claiborne,	 	 
	 
	 	 	 	 	 	 
	3

	 	Women’s sleepwear, loungewear, and robes
	 	Liz Claiborne, Liz
Claiborne Woman, Liz
& Co;	 	 
	 
	 	 	 	 	 	 
	4

	 	Women’s foundations, daywear, underwear, and
shapewear sold in intimate apparel or
foundations and daywear departments of
Department Stores including bras, panties,
t-shirts, camisoles, boxer shorts, garter
belts, and any other coordinated pieces
typically sold in these departments
	 	Liz Claiborne, Liz
Claiborne Woman, Liz
Claiborne, Liz & Co.	 	 
	 
	 	 	 	 	 	 
	5

	 	cosmetics and fragrance products including
cologne, perfume, eau de parfum, and eau de
toilette, and scented ancillary products in
any form which bear the Licensed Marks, as the
case may be. The term “ancillary products”
means scented body lotions, bath/shower gels,
soaps, powder, deodorant, antiperspirants,
suntan lotions, scrubs, body lotions, body
soufflés, and body mists to be rubbed, poured,
sprinkled or sprayed on, introduced into, or
otherwise applied to the human body or any
part thereof for cleansing, beautifying, or
promoting attractiveness, and any scented
candles, sachets, potpourri or home fragrance
products that use the same scent properties as
those used for colognes, perfumes, eau de
parfum or eau de toilette products.
	 	Liz Claiborne,
Claiborne for
Men,Concepts by
Claiborne, Liz & Co	 	 
	 
	 	 	 	 	 	 
	6

	 	Men’s footwear. Licensee shall have a right of
first negotiation with respect to boy’s
footwear
	 	Claiborne, Concepts
by Claiborne	 	 
	 
	 	 	 	 	 	 
	7

	 	Boy’s dress apparel sizes 4-7 and 8-20, as
sold as a collection, including suits, suiting
separates, i.e. blazers, dress shirts, dress
pants (including khakis), sweaters and vests;
boys’ apparel, sizes 2T-4T, boys’ apparel
sizes 2-3, boys’ school uniforms sizes 4 to 20
and girls’ uniforms sizes 4 to 16x.
	 	Claiborne and Liz
Claiborne with
respect to girls’
uniform merchandise	 	 
	 
	 	 	 	 	 	 
	8

	 	Men’s suits, suit separates, sport-coats,
trousers, vests, other than vests for tuxedos,
raincoats, and overcoats characterized as
“tailored” clothing; casual pants and slacks
	 	Claiborne and
Concepts by
Claiborne	 	 

 

 

 

	 	 	 	 	 	 	 
	SCHEDULE 3	 	Product Category	 	Trademarks	 	Licensed Categories
	 
	 	 	 	 	 	 
	9

	 	Men’s Dress Shirts
	 	CLAIBORNE, CONCEPTS
BY CLAIBORNE	 	 
	 
	 	 	 	 	 	 
	10

	 	Men’s robes, loungewear, pajamas, jog suits,
swim suits, boxers, and, on a non-exclusive
basis, knit underwear, as sold in main floor
classification departments
	 	Claiborne; right of
first negotiation
with respect to the
Concepts by
Claiborne trademark;	 	 
	 
	 	 	 	 	 	 
	11

	 	Women’s career, career casual, casual and
sport shoes (including sneakers and other
vulcanized shoes)
	 	Liz Claiborne, Liz
Claiborne New York,
Liz & Co.	 	 
	 
	 	 	 	 	 	 
	12

	 	Women’s Socks, Trouser Socks, Tights and Sheers
	 	Liz Claiborne, Liz
Claiborne Woman	 	 
	 
	 	 	 	 	 	 
	13

	 	(a) Women’s fashion outerwear and rainwear,
which include overcoats and raincoats made of
wool, cotton, synthetics, leather, suede and
fake fur and (b) men’s fashion outerwear and
rainwear, including raincoats and overcoats
and outerwear made of cotton, synthetics,
suede and leather, excluding dress wool
overcoats
	 	LIZ CLAIBORNE,
CLAIBORNE, LIZ
CLAIBORNE WOMAN, LIZ
& CO, CONCEPTS BY
CLAIBORNE, LIZWEAR	 	 
	 
	 	 	 	 	 	 
	14

	 	Men’s neckwear,and formal wear, limited to
ties, cummerbunds, and pocket squares, and
shall not include any other items whatsoever
	 	Claiborne	 	 
	 
	 	 	 	 	 	 
	15

	 	Area rugs, Accent rugs
	 	Liz Claiborne Home	 	 
	 
	 	 	 	 	 	 
	16

	 	Men’s and boy’s neckwear
	 	Concepts by Claiborne	 	 
	 
	 	 	 	 	 	 
	17

	 	Luggage, garment bags, business cases,
portfolios, satchels, backpacks, and related
travel organizers and accessories, all to be
sold only as a separate classification to
luggage departments of approved customers
	 	Claiborne, Concepts
by Claiborne, Liz &
Co. and Liz
Claiborne	 	 
	 
	 	 	 	 	 	 
	18

	 	Solid color, woven and print decorative home
fabrics / piece goods. Home Decorative
Trimmings, including but not limited to
cording, brushed fringe, tassel fringe, bail
fringe, loop fringe, gimp, borders, rosettes,
chair tassels, pillow tassels and cord curtain
tie-backs.
	 	Liz Claiborne, Liz
Claiborne Collection
and Liz Claiborne
Home	 	 
	 
	 	 	 	 	 	 
	19

	 	Sunglasses Products, consisting of sunglasses
and cases made specifically for sunglasses;
and, Optics Products, consisting of ophthalmic
eyewear frames which shall include sunglass
clips made specifically for such frames and
any replacement sunglass clips sold with such
frames, non-prescription reading glasses, and
eyewear cases made specifically for such
eyewear frames.
	 	Claiborne, Liz
Claiborne, Concepts
by Claiborne, Liz &
Co.	 	 

 

 

 

	 	 	 	 	 	 	 
	SCHEDULE 3	 	Product Category	 	Trademarks	 	Licensed Categories
	 
	 	 	 	 	 	 
	20

	 	Men’s belts, jewelry (including cuff links,
studs, tie clips, but excluding watches),
braces & small leather goods (such as without
limitation, wallets, billfolds, trifolds,
hipfolds, credit card cases, secretaries, key
fobs & agendas) and shall not include any
other items whatsoever
	 	Concepts by
Claiborne, Claiborne	 	 
	 
	 	 	 	 	 	 
	21

	 	Women’s swimwear, including coordinating
cover-ups, sold in swimwear departments only
	 	Liz Claiborne, Liz
Claiborne Woman, Liz & Co	 	 

 

 

 

EXHIBIT D

Design Calendar

 

 

 

***

(two pages redacted)

 

 

 

EXHIBIT E

Product Packages

 

 

 

***

(31 pages redacted)

 

 

 

EXHIBIT F

Purchase Agreement

 

 

 

PURCHASE AGREEMENT

This PURCHASE AGREEMENT (this “Agreement”) is made as of this [_____] day of [_____],
20[_], by and among [                    ], a [                    ] (“Purchaser”) and
[                    ], a [                    ] (“Seller”).

W I T N E S S E T H

WHEREAS, Seller and Purchaser are parties to the Existing License Agreement whereby Seller has
granted Purchaser the right to use the Trademarks;

WHEREAS, the Existing License Agreement grants Purchaser the option to purchase the Acquired
Assets;

WHEREAS, Purchaser has validly exercised such option and desires to purchase from Seller, and
Seller desires to sell to Purchaser, all of Seller’s right, title and interest in and to the
Acquired Assets upon the terms and conditions set forth herein; and

WHEREAS, Seller and Purchaser wish to enter into this Agreement to supersede all previous
agreements, arrangements, communications, and understandings, both written and oral, regarding the
subject matter hereof.

NOW, THEREFORE, for and in consideration of the representations, warranties, covenants and
agreements contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound,
agree as follows:

ARTICLE 1

DEFINITIONS

1.1 Definitions.

As used herein, the following terms shall have the following meanings:

“Acquired Assets” shall have the meaning ascribed thereto in Section 2.1 hereof.

“Acquired Designs” means the following owned, used or held for use by Seller in the
Territory: (a) all designs, patterns, trade dress and related materials for any goods bearing or
sold or otherwise exploited under any of the Acquired Trademarks in the Territory, and any prints,
package designs, labels, hang tags, advertising and promotional materials related to any such goods
in the Territory; and (b) all Intellectual Property in the Territory in and to any of the foregoing
in clause (a).

 

 

 

“Acquired Domain Names” means (a) ***, (b) *** and (c) all goodwill associated with
any of the foregoing and all registrations, applications for registration, renewals and extensions
of any of the foregoing.

“Acquired Intellectual Property” means (a) all Acquired Trademarks, (b) all Acquired
Designs, (c) all Acquired Domain Names and (d) all other Intellectual Property in the Territory
owned, used or held for use by Seller in the Territory to the extent related to the business in the
Territory related to and symbolized by the Acquired Trademarks.

“Acquired Trademarks” means the following Marks owned, used or held for use by Seller
in the Territory in any form or style: the Marks set forth on Schedule 1.1(a) of the
Disclosure Letter, including “Liz Claiborne”, “Liz & Co.”, “Lizwear”, “Claiborne”, “Concepts By
Claiborne” and “Liz Claiborne New York”.

“Actions or Proceedings” means any action, suit, proceeding, arbitration or
investigation.

“Affiliate” means any Person directly or indirectly controlling, controlled by or
under common control with such other Person.

“Agreement” shall have the meaning ascribed thereto in the Preamble hereof.

“Assigned Contracts” shall have the meaning ascribed thereto in Section 2.1(e) hereof.

“Assumed Contracts” means all written or oral agreements, arrangements, licenses,
sublicenses, understandings, permissions, instruments or other contractual or similar arrangements
or commitments, in each case to the extent granting the right to use or otherwise relating to the
Acquired Assets.

“Assumed Liabilities” shall have the meaning ascribed thereto in Section 2.4 hereof.

“Claims” shall have the meaning ascribed thereto in Section 9.2 hereof.

“Closing” shall have the meaning ascribed thereto in Section 4.1 hereof.

“Closing Date” means the date on which the Closing occurs.

“Control” or “control” (including, with correlative meaning, the terms
“controlled by” and “under common control with”) shall mean, with respect to a Person, the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of securities or as trustee or executor,
by contract or credit arrangement or otherwise.

 

2

 

“Disclosure Letter” means, subject to Section 8.6, the letter, dated as of the date
hereof, from Seller to Purchaser, containing all of the schedules to this Agreement, and which may
include one or more schedules to any of the representations and warranties set forth in Article 7
notwithstanding the absence of a reference to a schedule therein.

“Excluded Assets” means all Property of the Seller and its Affiliates other than the
Acquired Assets. Without limiting the generality of the foregoing, Excluded Assets include the
following Properties of Seller and/or any of its Affiliates: ***.

“Excluded Liabilities” shall have the meaning ascribed thereto in Section 2.5 hereof.

“Existing License Agreement” means that certain License Agreement, dated as of October
7, 2009, by and between Liz Claiborne, Inc. and J. C. Penney Company, Inc., as the same may be
amended, modified, supplemented or assigned from time to time.

“Governmental Authority” means any government or governmental or regulatory body
thereof, or political subdivision thereof, whether federal, state, local or foreign, or any agency,
instrumentality or authority thereof, or any court or arbitrator (public or private).

“Intellectual Property” means all intellectual property and industrial property rights
and related priority rights under the Laws of the United States (including any state thereof or the
District of Columbia) or Puerto Rico, including all: (a) patents and patent applications, including
design patents and design patent applications, and all renewals and extensions of any of the
foregoing (“Patents”); (b) trademarks, service marks, trade dress, logos, trade names,
corporate names and other source or business identifiers (whether registered or unregistered),
together with the goodwill associated with any of the foregoing, and all registrations,
applications for registration, renewals and extensions of any of the foregoing (“Marks”);
(c) copyrights and works of authorship (whether registered or unregistered) and Moral Rights, and
all registrations, applications for registration, renewals, extensions and reversions of any of the
foregoing; and (d) trade secrets and all intellectual property and industrial property rights in or
to confidential and proprietary information, know-how, designs, inventions, compositions,
processes, drawings, patterns and other materials, in each case excluding any rights in respect of
any of the foregoing in this subclause (d) that comprise or are protected by issued Patents or
published Patent applications.

 

3

 

“Laws” means all laws, statutes, rules, regulations, ordinances and other
pronouncements having the effect of law of the United States, any foreign country or any domestic
or foreign state, county, city or other political subdivision or of any Governmental Authority.

“Liability” means any liability or obligation, whether accrued, known or unknown,
choate or inchoate, secured or unsecured, absolute, contingent or otherwise and whether due or to
become due.

“Licensee” shall have the meaning ascribed thereto in the Existing License Agreement.

“Licensor” shall have the meaning ascribed thereto in the Existing License Agreement.

“Lien” means any charge, claim, pledge, condition, encumbrance, equitable interest,
option, security interest, mortgage, right of first refusal, or restriction of any kind, including
any restriction on use, transfer, receipt of income or exercise of any other attribute of
ownership.

“Moral Rights” shall have the meaning ascribed thereto in Section 8.5 hereof.

“Order” means any writ, judgment, decree, injunction or similar order of any
Governmental Authority (in each such case whether preliminary or final).

“Person” means any individual, corporation, partnership, joint venture, trust,
association, limited liability company, unincorporated organization, other entity, or Governmental
Authority.

“Property” or “Properties” means all property and assets of whatsoever nature,
including real and personal property, whether tangible or intangible, and claims, rights and choses
in action.

“Purchase Price” means the applicable purchase price for Purchaser’s acquisition of
the Option Assets set forth in the Existing License Agreement.

“Purchaser” shall have the meaning ascribed thereto in the Preamble hereof.

“Registered Intellectual Property” means all issuances and registrations for any
Acquired Intellectual Property and all applications for issuance or registration of any Acquired
Intellectual Property in the Territory.

“Required Consents” shall mean each notice, consent and approval set forth in
Schedule 1.1(b) of the Disclosure Letter.

“Reverse License” shall have the meaning ascribed thereto in Section 5.2(c) hereof.

 

4

 

“Seller” shall have the meaning ascribed thereto in the Preamble hereof.

“Territory” means the United States (including any state thereof and the District of
Columbia) and Puerto Rico.

“Trademarks” shall have the meaning ascribed thereto in the Existing License
Agreement.

“USPTO” shall mean the United States Patent and Trademark Office, its affiliated
offices and any successor offices.

ARTICLE 2

SALE AND PURCHASE OF ASSETS

2.1 Sale and Purchase of Assets. At the Closing, upon the terms and subject to the
conditions of this Agreement, Purchaser shall purchase from Seller, and Seller shall sell, convey,
assign and otherwise transfer to Purchaser, all of Seller’s right, title and interest (whether
statutory, common law or otherwise) in and to the following, in each case as in existence as of the
Closing but excluding the Excluded Assets (collectively, the “Acquired Assets”):

(a) all Acquired Intellectual Property;

(b) the goodwill of Seller’s business connected with, and symbolized by, the Acquired
Intellectual Property;

(c) all Registered Intellectual Property, and all renewals, extensions and reversions thereof;

(d) the following Marks owned, used or held for use by Seller in the Territory in any form or
style: (i) any Mark that comprises, consists of or includes any Acquired Trademark; (ii) any
combination of any of the Acquired Trademarks and/or any of foregoing (in each of the foregoing
cases, with or without any other Mark, word, term, phrase or other element); and (iii) any Mark
confusingly similar to any of the foregoing.

(e) all rights, claims and privileges related to any of the Acquired Intellectual Property in
the Territory after the Closing, including the right to prosecute applications for issuance or
registration for any Acquired Intellectual Property in the Territory after the Closing, the right
to maintain any issuances or registrations for any Acquired Intellectual Property in the Territory
after the Closing and the right to sue and recover for, and the right to the profits or damages due
or accrued arising out of or in connection with, any and all infringements or passing off or
dilution of or damage, degradation or injury to any of the Acquired Intellectual Property in the
Territory after the Closing; and

(f) all Assumed Contracts set forth on Schedule 2.1(f) of the Disclosure Letter
(collectively, the “Assigned Contracts”).

 

5

 

2.2 Excluded Assets. In no event shall Seller sell, convey, assign or transfer to
Purchaser, and in no event shall Purchaser purchase from Seller, any of the right, title or
interest of Seller or any of its Affiliates in and to any of the Excluded Assets.

2.3 Non-Assignment of Assets. Notwithstanding any other provision of this Agreement
to the contrary, this Agreement shall not constitute an agreement to assign or transfer and shall
not effect the assignment or transfer of any Acquired Asset if an attempted assignment thereof,
without the approval, authorization or consent of, or granting or issuance of any license or permit
by, any third party thereto, would constitute a breach thereof, and to the extent such approval,
authorization, consent, license or permit is not obtained, or if any such attempted assignment
would be ineffective, from and after the Closing, Purchaser shall nevertheless perform in the name
of Seller (and indemnify Seller against) all Liabilities thereunder and Seller and Purchaser shall
cooperate in a mutually agreeable arrangement under which Purchaser would obtain the benefits
thereunder in accordance with this Agreement. With respect to any Acquired Asset that is not
transferred to Purchaser on the Closing Date, Seller and Purchaser shall treat, for all income tax
purposes, Purchaser as the owner of such Acquired Asset beginning after the Closing Date and Seller
and Purchaser shall not file any tax return in a manner inconsistent with such treatment, unless
otherwise required by applicable law. Purchaser shall promptly reimburse Seller for all reasonable
documented expenses paid by Seller after the Closing in connection with the foregoing matters set
forth in this Section 2.3.

2.4 Assumed Liabilities. At the Closing, upon the terms and subject to the conditions
of this Agreement, Purchaser shall assume and be obligated to pay when due and perform or
discharge, from and after the Closing, all Liabilities of the Seller and its Affiliates directly or
indirectly relating to or arising from or in connection with the Acquired Assets, or the ownership,
use or disposition thereof, in all cases ***, including (without limiting the generality of the
foregoing) the following Liabilities (collectively, the “Assumed Liabilities”):

(a) ***; and

(b) ***.

From and after Closing, Purchaser shall indemnify and hold harmless Seller and its Affiliates from
and against all claims, losses, Liabilities, demands, and expenses, including attorneys’ fees,
which may be made or brought against Seller or its Affiliates or which Seller or its Affiliates may
suffer or incur as a result of or arising out of any of the Assumed Liabilities, except to the
extent arising from breach of any representation, warranty or covenant contained in this Agreement
or any agreement or document delivered in connection herewith or any right to indemnification
hereunder.

 

6

 

2.5 Excluded Liabilities. Seller acknowledges and agrees that Purchaser will not
assume any Liability of Seller, other than the Assumed Liabilities, pursuant to the terms and
provisions of this Agreement (collectively, the “Excluded Liabilities”). From and after
Closing, Seller shall indemnify and hold harmless Purchaser and its Affiliates from and against all
claims, losses, Liabilities, demands, and expenses, including attorney’s fees, which may be made or
brought against Purchaser or its Affiliates or which Purchaser or its Affiliates may suffer or
incur as a result of or arising out of any of the Excluded Liabilities, except to the extent such
claims, losses, Liabilities, demands or expenses (i) arise from a breach by Purchaser of any
representation, warranty or covenant contained in this Agreement or any agreement or document
delivered in connection herewith or any right to indemnification hereunder, (ii) constitute Assumed
Liabilities or (iii) arise from an action or omission of Purchaser or its Affiliates after the
Closing.

ARTICLE 3

PURCHASE PRICE

3.1 Purchase Price. At the Closing, Purchaser will pay to Seller, or its designee(s)
as agent for the Seller, by wire transfer of immediately available funds to an account or accounts
at a bank or banks designated by Seller in writing to Purchaser an amount equal to the Purchase
Price. Seller shall notify Purchaser in writing of the relevant details regarding the bank
account(s) to be used at least five (5) business days prior to the Closing Date.

ARTICLE 4

CLOSING AND CONDITIONS PRECEDENT TO CLOSING

4.1 Closing. Subject to the satisfaction or waiver of all of the conditions contained in
Section 4.2 and Section 4.3, the closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place (a) at 10:00 a.m. on the third (3rd) business day after the day
on which the last of the conditions contained in Section 4.2 and Section 4.3 (other than any
conditions that by their terms are to be satisfied at the Closing, but subject to the satisfaction
or waiver of such conditions at the Closing in accordance with this Agreement) is satisfied or
waived in accordance with this Agreement or (b) at such other time or on such other date as
Purchaser and Seller may agree in writing.

 

7

 

4.2 Conditions to the Obligations of Purchaser. The obligation of Purchaser to
consummate the transactions provided for herein is subject to the fulfillment at or prior to the
Closing of each of the following conditions unless waived by Purchaser in a writing delivered to
Seller:

(a) ***;

(b) Seller shall have performed in all material respects all of its obligations required under
the terms of this Agreement to be performed prior to Closing;

(c) (i) all applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act
of 1976, as amended, with respect to the transactions contemplated hereby shall have expired or
been terminated; (ii) no Governmental Authority shall have enacted, issued, promulgated, enforced
or entered any laws, rules or regulations, and no orders or injunctions shall have been entered,
that restrain, enjoin or otherwise prohibit consummation of the transactions contemplated hereby;
and (iii) ***;

(d) ***;

(e) ***; and

(f) At the Closing, Seller shall have made all deliveries required by Section 5.1 of this
Agreement.

4.3 Conditions to the Obligations of Seller. The obligation of Seller to consummate
the transactions provided for herein is subject to the fulfillment at or prior to the Closing of
each of the following conditions unless waived by Seller in a writing delivered to Purchaser:

(a) ***;

(b) Purchaser shall have performed in all material respects all of its obligations required
under the terms of this Agreement to be performed prior to Closing;

(c) (i) all applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act
of 1976, as amended, with respect to the transactions contemplated hereby shall have expired or
been terminated; (ii) no Governmental Authority shall have enacted, issued, promulgated, enforced
or entered any laws, rules or regulations, and no orders or injunctions shall have been entered,
that restrain, enjoin or otherwise prohibit consummation of the transactions contemplated hereby;
and (iii) ****; and

(d) At the Closing, Purchaser shall have made all deliveries required by Section 5.2 of this
Agreement.

 

8

 

4.4 Termination. Notwithstanding anything contained in this Agreement to the
contrary, this Agreement may be terminated at any time prior to the Closing Date by Purchaser or
Seller ***. If this Agreement is terminated pursuant to this Section 4.4, all further obligations
of the parties under this Agreement shall be terminated without further liability of any Person
hereunder.

ARTICLE 5

DELIVERIES AT CLOSING

5.1 Deliveries by Seller. At the Closing, Seller shall deliver or cause to be
delivered to Purchaser the following:

(a) a duly-executed trademark assignment document in the form of Exhibit A hereto for
recordal with the USPTO and, if applicable, the Puerto Rican Trademark Office;

(b) such other general conveyances as Purchaser may reasonably request, executed by Seller,
conveying the Acquired Assets to Purchaser, in each case in form reasonably agreed upon by Seller’s
counsel and Purchaser’s counsel prior to Closing (it being understood, however, that such
conveyances shall not require Seller or any other Person to make any additional representations,
warranties, covenants or agreements, express or implied, not expressly set forth in this
Agreement); and

(c) all documents, correspondence and files in the possession or control of Seller or its
legal counsel regarding the prosecution or maintenance of any Registered Intellectual Property
(including all such documents and correspondence filed with or received from any Governmental
Authority).

5.2 Deliveries by Purchaser. At the Closing, Purchaser shall deliver, or cause to be
delivered to Seller, the following:

(a) the Purchase Price;

(b) such general assumptions as Seller may reasonably request, executed by Purchaser, assuming
the Assumed Liabilities, in each case in form reasonably agreed upon by Seller’s counsel and
Purchaser’s counsel prior to Closing (it being understood, however, that such assumptions shall not
require Purchaser or any other Person to make any additional representations, warranties, covenants
or agreements, express or implied, not expressly set forth in this Agreement); and

(c) ***.

 

9

 

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF PURCHASER

Purchaser hereby represents and warrants to Seller (assuming, in each case, the accuracy of
the representations and warranties of Seller in Article 7) as follows:

6.1 Organization, Good Standing and Power. Purchaser is a [                    ] duly organized,
validly existing and in good standing under the laws of the State of [                    ]. Purchaser has
all requisite power and authority to own, use and operate its assets and properties and to carry on
its business as now or heretofore owned, used and operated. Purchaser has, as of the date hereof,
and will have, as of the Closing, sufficient funds to satisfy all of its obligations to Seller
hereunder.

6.2 Authority Relative to this Agreement; Execution and Binding Effect. The
execution, delivery and performance of this Agreement by Purchaser and the consummation of the
transactions contemplated hereby have been duly authorized by Purchaser, and no other act or
proceeding on the part of Purchaser is necessary to approve the execution and delivery of this
Agreement, the performance by Purchaser of its obligations hereunder, or the consummation of the
transactions contemplated hereby. This Agreement has been duly and validly executed and delivered
by Purchaser and, assuming that this Agreement is a valid and binding obligation of Seller,
constitutes a legal, valid and binding obligation of Purchaser, enforceable in accordance with its
terms, except as enforceability may be limited by bankruptcy laws, other similar laws affecting
creditors’ rights and general principles of equity affecting the availability of specific
performance and other equitable remedies.

6.3 No Breach. The execution, delivery and performance by Purchaser of this Agreement
and the consummation of the transactions contemplated hereby do not and will not: (a) with or
without the giving of notice or the lapse of time, or both, violate or conflict with, or result in
any breach of or constitute a default under, the provisions of any agreement or order to which
Purchaser is subject or a party or by which it is bound; (b) violate or conflict with Purchaser’s
certificate of incorporation or bylaws (or comparable instruments); or (c) violate or conflict with
any applicable Law.

 

10

 

6.4 Governmental and Other Consents. Except for filing under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, no consent, notice, authorization or approval of,
or exemption by, any Governmental Authority or by any other Person, whether pursuant to contract or
otherwise, is required in connection with the execution, delivery and performance of this Agreement
or any of the instruments or agreements herein referred to or the taking of any action herein or
therein contemplated by Purchaser.

6.5 No Brokers. Neither Purchaser nor any of its Affiliates has taken any action that
would cause Seller or any of its Affiliates to have any obligation or liability to any Person for
finders’ fees, brokerage fees, agents’ commissions or like payments in connection with the
execution and delivery of this Agreement or the consummation of the transactions contemplated
hereby.

ARTICLE 7

REPRESENTATIONS AND WARRANTIES OF SELLER

Except (i) as set forth in the Disclosure Letter (with reference to the section of this
Article 7 to which the information stated in the Disclosure Letter relates; provided that any
matter disclosed in any section of the Disclosure Letter with reference to any section of this
Article 7 will be deemed to be disclosed in any other section of the Disclosure Letter with
reference to any section of this Article 7 and for purposes of any other representation or warranty
made elsewhere in this Article 7 to the extent that that such disclosure is applicable to such
other section of the Disclosure Letter (notwithstanding the omission of a reference or cross
reference thereto) or such other representation or warranty, to the extent that the application
thereto can be reasonably ascertained), and (ii) with respect to any Excluded Assets or Excluded
Liabilities, as to which no representations or warranties are made by Seller hereunder, and
assuming, in each case, the accuracy of the representations and warranties of Purchaser in Article
6, Seller hereby represents and warrants to Purchaser as follows:

7.1 Organization, Good Standing and Power. Seller is a [                    ] duly organized,
validly existing and in good standing under the laws of the State of [                    ]. Seller has all
requisite power and authority to own, use and operate its assets and properties and to carry on its
business as now or heretofore owned, used and operated.

7.2 Authority Relative to this Agreement; Execution and Binding Effect. The
execution, delivery and performance of this Agreement by Seller and the consummation of the
transactions contemplated hereby have been duly authorized by the Seller, and no other act or
proceeding on the part of Seller is necessary to approve the execution and delivery of this
Agreement, the performance by Seller of its obligations hereunder or the consummation of the
transactions contemplated hereby. This Agreement has been duly and validly executed and delivered
by Seller, and assuming that this Agreement is a valid and binding obligation of Purchaser,
constitutes a legal, valid and binding obligation of Seller, enforceable against Seller in
accordance with its terms, except as enforceability may be limited by bankruptcy laws, other
similar laws affecting creditors’ rights and general principles of equity affecting the
availability of specific performance and other equitable remedies.

 

11

 

7.3 No Breach. Assuming Seller obtains all Required Consents, the execution, delivery
and performance by Seller of this Agreement and the consummation of the transactions contemplated
hereby do not and will not: (a) with or without the giving of notice or the lapse of time, or both,
violate or conflict with, or result in any breach of or constitute a default under, the provisions
of any agreement or order to which Seller is subject or a party or by which it is bound; (b)
violate or conflict with any provision of Seller’s certificate of incorporation or bylaws (or
comparable instruments); or (c) violate or conflict with any applicable Law.

7.4 Governmental and Other Consents. Except for the Required Consents and for filing
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, no consent, notice,
authorization or approval of, or exemption by, any Governmental Authority, or by any other Person,
whether pursuant to contract or otherwise, is required by Seller in connection with the execution,
delivery and performance of this Agreement or any of the instruments or agreements herein referred
to or the taking of any action herein or therein contemplated by Seller.

7.5 No Brokers. Neither Seller nor any of its Affiliates has taken any action that
would cause Purchaser or any of its Affiliates to have any obligation or liability to any person
for finders’ fees, brokerage fees, agents’ commissions or like payments in connection with the
execution and delivery of this Agreement or the consummation of the transactions contemplated
hereby.

7.6 Acquired Intellectual Property.

(a) Schedule 7.6(a)(i) of the Disclosure Letter sets forth a true, correct and
complete list of all Registered Intellectual Property, including, for each item of Registered
Intellectual Property (i) the record owner (and, if different from the record owner, the beneficial
owner) of such item of Registered Intellectual Property, (ii) the jurisdiction within the Territory
in which such item of Registered Intellectual Property has been issued or registered or is pending
and (iii) the date and number of such item of Registered Intellectual Property. Except as set
forth on Schedule 7.6(a)(ii) of the Disclosure Letter, as of the date hereof, Seller
exclusively owns all right, title and interest in and to the Acquired Intellectual Property
included in the Acquired Assets and has the right to sell, assign and transfer the Acquired
Intellectual Property included in the Acquired Assets as contemplated herein. The Acquired
Trademarks included in the Acquired Assets and subject to registration are valid and enforceable
and, to Seller’s knowledge, all other Acquired Intellectual Property included in the Acquired
Assets is valid and enforceable.

(b) Except as set forth on Schedule 7.6(b) of the Disclosure Letter, (i) to Seller’s
knowledge, no Person is infringing, conflicting with, violating or diluting any of the Acquired
Intellectual Property included in the Acquired Assets in the Territory, except for such
infringements, conflicts, violations and dilutions that would not reasonably be expected to
materially detract from the Purchaser’s expected benefits of the transactions contemplated hereby,
and (ii) within the three (3) year period prior to the date hereof, Seller has not provided any
written or, to Seller’s knowledge, unwritten notice or other communication to any Person, and no
Action or Proceeding or claim has been asserted by Seller, alleging that any Person is infringing, conflicting with, violating or diluting any of the Acquired Intellectual Property
in the Territory.

 

12

 

(c) Except as set forth on Schedule 7.6(c) of the Disclosure Letter, (i) to Seller’s
knowledge, none of the Acquired Intellectual Property included in the Acquired Assets or the use,
practice or exploitation of any of the Acquired Intellectual Property included in the Acquired
Assets in the Territory infringes, conflicts with, violates or dilutes any Intellectual Property
rights owned by any Person; (ii) within the three (3) year period prior to the date hereof, no
written claim, notice or other communication alleging that any of the Acquired Intellectual
Property included in the Acquired Assets infringes, conflicts with, violates or dilutes any
Intellectual Property rights owned by any Person has been served on or otherwise received by Seller
from any Person; and (iii) there is no claim or Action or Proceeding pending or, to Seller’s
knowledge, threatened against Seller with respect to any of the Acquired Intellectual Property
included in the Acquired Assets or the ownership, use, validity or enforceability thereof, other
than any non-final determinations of any Governmental Authority with respect to the Registered
Intellectual Property (copies of which have been made available by Seller to Purchaser prior to the
date hereof).

(d) All necessary registration, maintenance, renewal and other relevant filing fees in
connection with the Registered Intellectual Property have been timely paid, and all necessary
documents, certificates and other relevant filings in connection with the Registered Intellectual
Property have been timely filed, with the relevant Governmental Authorities for the purpose of
maintaining the Registered Intellectual Property and all issuances, registrations and applications
therefor. Except as set forth on Schedule 7.6(d) of the Disclosure Letter, there are no
annuities, payments, fees, responses to office actions or other filings required to be made and
having a due date with respect to any Registered Intellectual Property within one hundred twenty
(120) days after the date of this Agreement. No registration obtained by Seller for any of the
Acquired Intellectual Property in the Territory has been cancelled, abandoned or not renewed except
where Seller has, in its reasonable business judgment, decided to cancel, abandon or not renew such
registration.

(e) Neither this Agreement nor any transaction contemplated by this Agreement will result in
the grant by Seller to any Person of any ownership interest, license, right or protection from any
Action or Proceeding with respect to any of the Acquired Intellectual Property included in the
Acquired Assets pursuant to any contract to which Seller is a party or by which any assets or
properties of Seller are bound.

7.7 No Liens. As of immediately prior to Closing, the Acquired Assets will be free
and clear of any contractual lien under any credit agreement (or similar agreement in respect of
indebtedness for borrowed money) to which Seller or any of its subsidiaries is a party.

 

13

 

7.8 Contracts.

(a) A list of Assumed Contracts to which Seller is a party, as of the date hereof, is set
forth on Schedule 7.8(a) of the Disclosure Letter.

(b) As of the date hereof, (i) all of the Assigned Contracts are in full force and effect and
are the legal, valid and binding obligations of Seller and, to Seller’s knowledge, any other party
thereto, and (ii) Seller has performed all of its material obligations thereunder and is not in
material violation or breach of or default under any Assigned Contract. To Seller’s knowledge, the
other parties to each Assigned Contract are not in violation or breach of or default under such
Assigned Contract.

7.9 Litigation. Except as set forth on Schedule 7.9 of the Disclosure Letter,
as of the date hereof, there are no material Actions or Proceedings pending or, to Seller’s
knowledge, threatened against, and there are no Orders outstanding against, Seller, in each case,
to the extent relating to the Acquired Assets.

7.10 Compliance with Laws. Seller is in compliance, in all material respects, with
all applicable Laws with respect to the Acquired Assets.

ARTICLE 8

COVENANTS AND AGREEMENTS

8.1 Transaction Expenses. Except as otherwise provided in this Agreement, each party
hereto shall pay its own expenses incurred in connection with the authorization, preparation,
negotiation, execution and performance of this Agreement, including all fees and expenses of
attorneys, accountants, agents and other representatives. Purchaser shall bear all costs and
expenses related to the filing of instruments substantially in the form of Exhibit A with
the USPTO, the Puerto Rican Trademark Office (if applicable) and any other applicable intellectual
property registry or Governmental Authority.

8.2 Use of Intellectual Property. ***.

8.3 Further Assurances. Each party shall, from time to time after the Closing,
without further consideration execute and deliver such instruments and, at Purchaser’s sole cost
and expense, take such further actions as may be reasonably necessary or desirable to carry out the
provisions hereof and the transactions contemplated hereby. ***

 

14

 

***

8.4 Public Announcements. Notwithstanding anything herein to the contrary, no party
hereto shall, except as otherwise required by law, issue any press release or make any public
announcement relating to the subject matter of this Agreement or the terms and conditions hereof
without the other party’s consent.

8.5 Moral Rights. The sale, conveyance, assignment and transfer of the Acquired
Assets under this Agreement includes all rights of paternity, attribution, integrity, disclosure
and withdrawal and any other rights that may be known as or referred to as “moral rights”
(collectively, “Moral Rights”). To the extent Moral Rights cannot be transferred or
assigned under applicable law and to the extent allowed by law, Seller hereby waives all Moral
Rights with respect to all copyrights and copyrightable works included in the Acquired Assets, and
all uses thereof, and consents to any action of Purchaser that would violate such Moral Rights in
the absence of such waiver or consent.

8.6 Updating of Disclosure Letter. ***

 

15

 

ARTICLE 9

SURVIVAL; INDEMNIFICATION

9.1 Survival. The representations and warranties of Seller and Purchaser contained in
this Agreement shall survive the Closing, provided, that the representations and warranties
of Seller in Sections 7.6, 7.8, 7.9 and 7.10 shall only survive until ***, at which time each such
representation and warranty shall be extinguished and no claims may be asserted against Seller or
Purchaser, as the case may be, in respect thereof; provided, however, that claims
first asserted in writing and in good faith with specificity within the period referred to above
shall not thereafter be time-barred. The agreements of Purchaser and Seller contained in this
Agreement to be performed at or after Closing shall survive the Closing in accordance with their
terms or, if no term is specified, ***. The covenants and agreements of Seller and Purchaser
contained in this Agreement to the extent to be complied with or performed prior to Closing shall
survive the Closing until ***; provided that claims first asserted in writing and in good
faith with specificity within the period referred to above shall not thereafter be time-barred.

9.2 Indemnification. Subject to the provisions of this Article 9, from and after the
Closing, Seller shall indemnify and hold harmless Purchaser from and against all claims, losses,
demands, and expenses, including the reasonable, out-of-pocket fees of counsel, but which shall not
include any amounts in respect of lost profits or indirect, special, punitive, incidental or
consequential damages (collectively referred to as “Claims”), which may be made or brought against
Purchaser or which it may suffer or incur as a result of or arising out of any breach of any
representation, warranty, covenant or agreement of Seller contained in this Agreement; provided,
that (a) Purchaser shall notify Seller within thirty (30) days of the date of its receipt of any
third-party Claim or its determination that it wishes to make a Claim, as the case may be, (b)
Seller shall have the right to conduct and control, through counsel of its choosing that is
reasonably acceptable to Purchaser, the defense, compromise and settlement of any third-person
Claim against the Purchaser (provided, that (i) Purchaser shall co-operate reasonably in connection
therewith and shall furnish such records, information and testimony and attend such conferences,
discovery proceedings, hearings, trials and appeals as may be reasonably requested by Seller in
connection therewith and (ii) Seller shall not be entitled to settle or compromise any such Claim
without the consent of Purchaser, unless the settlement or compromise involves no damages or relief
other than the payment of monetary damages that are subject to this Section 9.2) and (c) Purchaser
shall not settle or compromise any Claim without the prior written consent or agreement of Seller
(it being agreed that upon any breach by Purchaser of this proviso, Purchaser shall waive any right
to indemnity therefor hereunder). ***

***

 

16

 

ARTICLE 10

MISCELLANEOUS

10.1 Governing Law. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New York, without regard to the provisions thereof
regarding conflicts of law that would result in the application of the laws of other jurisdictions.

10.2 WAIVER OF JURY TRIAL. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, THE RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

10.3 Severability. Any term or provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so
broad as to be unenforceable, the provision shall be interpreted to be only so broad as is
enforceable.

10.4 Entire Agreement. This Agreement supersedes any and all oral or written
agreements and understandings heretofore made relating to the subject matter hereof and contains
the entire agreement of the parties hereto relating to the subject matter hereof. Exhibits and
Schedules, including the Disclosure Letter, and attachments to this Agreement are incorporated into
this Agreement by reference and made a part hereof.

10.5 Waiver. No consent or waiver, express or implied, by any party to or of any
breach or default by any other party in the performance by such other party of its obligations
hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or
default in the performance by such other party of the same or any other obligation of such party
hereunder. Failure on the part of any party to complain of any act or failure to act of the
another party or to declare such other party in default, irrespective of how long such failure
continues, shall not constitute a waiver by such party of its rights hereunder. No consent or
waiver shall, except as otherwise specifically provided in this Agreement, be effective unless it
is in writing and is signed by or on behalf of both parties.

 

17

 

10.6 Binding Agreement; Assignment. This Agreement shall be binding upon and inure to
the benefit of the parties and their successors and permitted assigns. This Agreement, and the
rights and obligations hereunder, may not be assigned by either party without the prior written
consent of the other party.

10.7 Notices. Any notice or other communication required or permitted pursuant to
this Agreement shall be effective only if it is in writing and delivered personally, by facsimile
transmission, by a national overnight courier service or by registered or certified return-receipt
mail, postage prepaid addressed as follows:

If to Seller to:

[          ]

[          ]

[          ]

with a copy (which shall not constitute notice) to:

[          ]

[          ]

[          ]

If to Purchaser to:

[          ]

[          ]

[          ]

with a copy (which shall not constitute notice) to:

[          ]

[          ]

[          ]

or to such other person or address as any such party may designate by notice to the other party.
Notice shall be deemed to be given on the date of delivery when personally delivered, upon receipt
of a legible copy when transmitted by facsimile or five (5) days after posting by certified mail
with postage prepaid.

 

18

 

10.8 Independent Contractor. Nothing in this Agreement shall create any joint
venture, franchisee-franchisor or principal-agent relationship between Seller and Purchaser.

10.9 No Third Party Beneficiaries. This Agreement shall inure to the benefit of and
be binding upon the parties hereto and their respective successors and permitted assigns. Nothing
contained in this Agreement, express or implied, is intended to or shall confer upon any person
other than the parties hereto and their respective successors and permitted assigns, any right,
benefit or remedy of any nature whatsoever under or by reason of this Agreement.

10.10 Remedies. Except as otherwise provided herein, no remedy herein conferred or
reserved is intended to be exclusive of any other available remedy or remedies, and each and every
remedy shall be cumulative and shall be in addition to every remedy under this Agreement or now or
hereafter existing at law or in equity. Notwithstanding the foregoing, except as expressly
provided in Section 9.2, Seller and its Affiliates shall not have any Liability, whether for
indemnification, contribution, or any other obligation, for any losses, damages, claims or
Liabilities that Purchaser and its Affiliates may suffer or incur resulting from or by reason of,
or arising out of or in connection with the subject matter of this Agreement or the transactions
contemplated hereby, and the Purchaser shall not avoid the limitations on liability set forth in
Section 9.2 by seeking damages for breach of contract or tort or pursuant to any other theory of
liability.

10.11 No Additional Representations. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT,
ALL OF THE ACQUIRED ASSETS (A) ARE SOLD TO PURCHASER ON AN “AS IS, WHERE IS” CONDITION, WITHOUT
RECOURSE AND (B) IN ALL CASES ARE SOLD WITHOUT ANY OTHER REPRESENTATION OR WARRANTY, EXPRESSED OR
IMPLIED, INCLUDING ANY IMPLIED REPRESENTATION OR WARRANTY AS TO MERCHANTABILITY, FITNESS FOR ANY
PARTICULAR PURPOSE OR COLLECTABILITY WITH RESPECT TO THE ACQUIRED ASSETS OR THE ACCURACY OR
COMPLETENESS OF ANY INFORMATION REGARDING THE ACQUIRED ASSETS OR ASSUMED LIABILITIES FURNISHED OR
MADE AVAILABLE TO THE PURCHASER OR ANY OTHER PERSON. EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT, NEITHER SELLER NOR ANY OF ITS AFFILIATES SHALL HAVE OR BE SUBJECT TO ANY LIABILITY TO
PURCHASER OR ANY OTHER PERSON UNDER THIS AGREEMENT OR OTHERWISE RESULTING FROM THE DELIVERY TO
PURCHASER OR ANY OTHER PERSON, OR PURCHASER’S OR ANY OTHER PERSON’S USE, OF ANY INFORMATION
DESCRIBED IN THE PRECEDING SENTENCE.

10.12 Amendments. Except as otherwise provided herein, this Agreement may be amended
only by an instrument in writing signed by both of the parties hereto.

10.13 Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument and shall become effective when one or more counterparts have been signed by each party
hereto and delivered to the other party hereto.

 

19

 

10.14 Definitions; Sections and Headings. The headings used in this Agreement are
inserted for convenience of reference only and are not intended to be a part of or to affect the
meaning or interpretation of this Agreement. Words, terms and titles (including terms defined
herein) in the singular form shall be construed to include the plural and vice versa, unless the
context otherwise requires. All references in this Agreement to Exhibits, Schedules, Articles,
Sections, subsections and other subdivisions refer to the corresponding Exhibits, Schedules,
Articles, Sections, subsections and other subdivisions of or to this Agreement unless expressly
provided otherwise. All references in the Disclosure Letter to any agreement, document, instrument
or report shall be deemed to be a reference to such agreement, document, instrument or report in
its entirety, including all amendments, modifications and attachments thereto, and any attachments
to the Disclosure Letter and the contents of any agreement, document, instrument or report referred
to in the Disclosure Letter shall be deemed to be incorporated by reference into the Disclosure
Letter, but only to the extent that such agreement, document, instrument or report has been
provided to Purchaser upon Purchaser’s request. The words “this Agreement,” “herein,” “hereby,”
“hereunder” and “hereof,” and words of similar import, refer to this Agreement as a whole and not
to any particular subdivision unless expressly so limited. The words “this Article,” “this
Section” and “this subsection,” and words of similar import, refer only to the Article, Section or
subsection hereof in which such words occur. The word “or” is disjunctive but not necessarily
exclusive, and the word “including” (in its various forms) means “including without limitation”.
Each of the parties hereto agree that they have been represented by counsel during the negotiation
and execution of this Agreement and that they have participated substantially in the negotiation
and drafting of this Agreement and, accordingly, each party hereby disclaims any defense or
assertion in any action or proceeding and waives the application of any applicable law or rule of
construction providing that any ambiguity in this Agreement should be construed against the
draftsperson.

[Remainder of page intentionally left blank]

 

20

 

IN WITNESS WHEREOF, the parties have caused their duly authorized officers to execute this
Agreement as of the day and year first above written.

	 	 	 	 	 
	 	[SELLER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[PURCHASER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Purchase Agreement

 

 

 

Exhibit A

TRADEMARK ASSIGNMENT

THIS TRADEMARK ASSIGNMENT (THIS “ASSIGNMENT”) IS MADE AND ENTERED INTO AS OF                      _____, 20_____ 

BY [                    ], A [JURISDICTION] [TYPE OF ENTITY] (“ASSIGNOR”), IN FAVOR OF
[                    ], A [JURISDICTION] [TYPE OF ENTITY] (“ASSIGNEE”). CAPITALIZED TERMS USED BUT NOT
DEFINED HEREIN HAVE THE MEANINGS ASSIGNED TO THEM IN THAT CERTAIN PURCHASE AGREEMENT DATED AS OF
                    
 _____, 20_____ 

(AS AMENDED, THE “PURCHASE AGREEMENT”) BETWEEN ASSIGNOR AND ASSIGNEE.

Pursuant to the Purchase Agreement, Assignor has agreed to assign, convey and transfer to
Assignee all of its right, title and interest in and to certain trademarks, including, without
limitation, the registered trademarks and trademark applications listed on Schedule 1
attached hereto (the “Assigned Trademarks”), together with the goodwill of Assignor’s
business to the extent connected with, and symbolized by, the Assigned Trademarks.

The parties wish to execute this Assignment for purposes of recording the assignment and
transfer of the Assigned Trademarks from Assignor to Assignee pursuant to the Purchase Agreement
with the United States Patent and Trademark Office and all applicable foreign intellectual property
offices, as may be necessary or desirable to effectuate, record and perfect the assignment and
transfer of the Assigned Trademarks from Assignor to Assignee.

In consideration of the promises and the mutual representations, warranties, covenants and
agreements contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Assignor hereby assigns, conveys and transfers to Assignee all of its right, title and
interest in and to:

(a) the Assigned Trademarks solely in the United States (including any state thereof
and the District of Columbia) and Puerto Rico (the “Territory”);

(b) the trademark registrations and applications for registration of trademarks in the
Territory for the Assigned Trademarks listed on Schedule 1 attached hereto;

(c) the goodwill of Assignor’s business to the extent connected with, and symbolized
by, the Assigned Trademarks in the Territory; and

(d) all rights, claims and privileges related to any of the Assigned Trademarks in the
Territory, including, without limitation, (i) the right to prosecute applications for
registration of trademarks in the Territory and maintain trademark registrations for the
Assigned Trademarks in the Territory and (ii) the right to sue and recover for, and the
right to the profits or damages due or accrued arising out of or in connection with any and
all past, present or future infringements or passing off or dilution of or damage,
degradation or injury to the Assigned Trademarks in the Territory.

 

 

 

2. Assignor hereby acknowledges and agrees that from and after the date hereof, Assignee shall
be the exclusive owner of all of Assignor’s right, title and interest in and to the Assigned
Trademarks.

3. As further set forth in the Purchase Agreement, Assignor shall, at Assignee’s reasonable
request, take such further action and execute such additional agreements and instruments as may be
necessary to effect and perfect the assignment contemplated hereby.

[Remainder of page intentionally left blank.]

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be duly authorized and
executed as of the date hereof.

	 	 	 	 	 
	 	[SELLER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[PURCHASER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

 

SCHEDULE 1***

Trademarks

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mark
	 	Jurisdiction	 	App. No.	 	Reg. No

	 
	 

 

 

 

EXHIBIT G

Quarterly Report Samples

 

 

 

LCI Quarterly Royalty Statement — Royalty Tracking

Contract Year:

Contract Qtr:

Beg Period:

End Period:

Annual Royalty Tracking

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Net Sales	 	 	 	 	 	 	 
	 	 	Contract	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Royalty	 	 	Net Sales Royalty	 	 	Net Sales	 
	Contract Year	 	Quarter	 	 	Total Units	 	 	***	 	 	***	 	 	Tot Net Sales	 	 	***	 	 	***	 	 	Total Royalty	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 	 	$	—	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 	 	$	—	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 	 	$	—	 	 	$	—	 
	 
	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	$	—	 	 	 	 	 	 	$	—	 	 	$	—	 
	 
	 	 	 	 	 	 	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Paid	 
	 	 	Contract	 	 	Calculated	 	 	 	 	 	 	Calculated Excess	 	 	 	 	 	 	Paid	 	 	Paid	 	 	Total Royalty and	 
	Contract Year	 	Quarter	 	 	GMF	 	 	***	 	 	Royalty	 	 	Calculated Royalty	 	 	GMF	 	 	Excess	 	 	Design Svc Fee	 
	 
	 	 	 	 	 	 	 	 	 	$	—	 	 	$	—	 	 	$	—	 	 	 	 	 	 	$	—	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	$	—	 	 	$	—	 	 	$	—	 	 	 	 	 	 	$	—	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	$	—	 	 	$	—	 	 	$	—	 	 	 	 	 	 	$	—	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	$	—	 	 	 	 	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	$	—	 	 	 	 	 	 	 	 	 	 	$	—	 	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 

	 	 	 
	*	 	GMF includes Design Service Fee

 

 

 

LCI Quarterly Royalty Statement — Units & Net Sales

Contract Year:

Contract Qtr:

Beg Period:

End Period:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	***	 	 	 	 	 	 	 	Net Sales Units	 	 	Net Sales Dollars	 
	 	 	 	 	 	 	 	 	 	 	 	 	Stores	 	 	Stores	 	 	Store	 	 	Direct	 	 	Direct	 	 	Direct	 	 	Direct +	 	 	Stores	 	 	Stores	 	 	Stores	 	 	Direct	 	 	Direct	 	 	Direct	 	 	Direct +	 
	 	 	 	 	 	 	 	 	 	 	 	 	Gross	 	 	Cust	 	 	Net	 	 	Gross	 	 	Cust	 	 	Net	 	 	Stores	 	 	Gross	 	 	Cust	 	 	Net	 	 	Gross	 	 	Cust	 	 	Net	 	 	Stores	 
	Div	 	Div Name	 	Ent	 	Ent Name	 	Sub	 	Sub Name	 	Sales	 	 	Returns	 	 	Sales	 	 	Sales	 	 	Returns	 	 	Sales	 	 	Net Sales	 	 	Sales	 	 	Returns	 	 	Sales	 	 	Sales	 	 	Returns	 	 	Sales	 	 	Net Sales	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	 
	 	Wmn Access	 	 	 	Wmn Access	 	 	 	Scarves / Wraps	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Wmn Access	 	 	 	Cold Weather Accessories	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Wmn Access	 	 	 	Wmns Optical	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Wmn Access	 	 	 	Wmns Sunglasses	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Wmn Access	 	 	 	Wmns Belts	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Wmn Access	 	 	 	Hosiery	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Fine Jewelry	 	 	 	Fine Jewelry	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Bras	 	 	 	Bras	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Sleepwear	 	 	 	Sleepwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	HB’s & SLG’s	 	 	 	Non-Leather Handbags	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	HB’s & SLG’s	 	 	 	Wallets & Gifts	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Hosiery	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Underwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Sleepwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Dress Shirts	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Personal Leather Goods	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Neckwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Hats & Cold Weather	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Belts & Suspenders	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Mens Optical	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Men’s Sun	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Bottoms / Seasonal	 	 	 	Class Pants	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Bottoms / Seasonal	 	 	 	Denim	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Bottoms / Seasonal	 	 	 	Outerwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Clothing	 	 	 	Suits	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Clothing	 	 	 	Mens Sportswear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Clothing	 	 	 	Suited Separates	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Clothing	 	 	 	Mens Dress Trousers	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Sportswear	 	 	 	Mens Sportswear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Big & Tall	 	 	 	Big & Tall Bottoms	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Big & Tall	 	 	 	Big & Tall Sportswear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Home	 	 	 	Travel	 	 	 	Travel	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Home	 	 	 	Bedding	 	 	 	Bedding	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Home	 	 	 	Window	 	 	 	Window	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Home	 	 	 	Bath	 	 	 	Bath	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Home	 	 	 	Tabletop	 	 	 	Tabletop	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Footwear	 	 	 	Footwear	 	 	 	Womens Footwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Footwear	 	 	 	Footwear	 	 	 	Mens Footwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Womens Apparel	 	 	 	Dresses / Suits	 	 	 	Collection Dresses	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Womens Apparel	 	 	 	Dresses / Suits	 	 	 	Special Occasion Dresses	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Womens Apparel	 	 	 	Pettites	 	 	 	Petite Collections	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Womens Apparel	 	 	 	Misses Sports	 	 	 	Misses	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Womens Apparel	 	 	 	Misses Sports	 	 	 	Misses Swimwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Womens Apparel	 	 	 	Womens Sportswear	 	 	 	Womens Collections	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Womens Apparel	 	 	 	Outerwear	 	 	 	Outerwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	aaa         a	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	*** Totals	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	***	 	 	 	 	 	 	Net Sales Units	 	 	Net Sales Dollars	 
	 	 	 	 	 	 	 	 	 	 	 	 	Stores	 	 	Stores	 	 	Store	 	 	Direct	 	 	Direct	 	 	Direct	 	 	Direct +	 	 	Stores	 	 	Stores	 	 	Stores	 	 	Direct	 	 	Direct	 	 	Direct	 	 	Direct +	 
	 	 	 	 	 	 	Gross	 	 	Cust	 	 	Net	 	 	Gross	 	 	Cust	 	 	Net	 	 	Stores	 	 	Gross	 	 	Cust	 	 	Net	 	 	Gross	 	 	Cust	 	 	Net	 	 	Stores	 
	Div	 	Div Name	 	Ent	 	Ent Name	 	Sub	 	Sub Name	 	Sales	 	 	Returns	 	 	Sales	 	 	Sales	 	 	Returns	 	 	Sales	 	 	Net Sales	 	 	Sales	 	 	Returns	 	 	Sales	 	 	Sales	 	 	Returns	 	 	Sales	 	 	Net Sales	 
	 
	 	Wmn Access	 	 	 	Wmn Access	 	 	 	Hosiery	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Fashion Jewelry	 	 	 	Fashion Jewelry	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Bras	 	 	 	Bras	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	Sleepwear	 	 	 	Sleepwear	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	HB’s & SLG’s	 	 	 	Non-Leather Handbags	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Wmn Access	 	 	 	HB’s & SLG’s	 	 	 	Wallets & Gifts	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	Mens Division	 	 	 	Mens Acc / Furnishings	 	 	 	Hosiery	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	* * * Totals	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

***

(two pages redacted)

 

 

 

EXHIBIT H

Standards of Engagement

 

 

 

Standards of Engagement

Liz Claiborne, Inc. and its subsidiaries are committed to producing high quality products at a good
value to our consumer. The Company follows the letter and spirit of all applicable laws, and
maintains a high standard of business ethics and regard for human rights. Moreover, we require
sound business ethics from our suppliers. Suppliers must observe all applicable laws of their
country, including laws relating to employment, discrimination, the environment, safety and the
apparel and related fields. Suppliers must comply with all applicable United States laws relating
to the import of products, including country of origin labeling, product labeling and fabric and
product testing. If local or industry practices exceed local legal requirements, the higher
standard applies.

Forced Labor. There shall not be any use of forced labor, whether in the form of prison
labor, indentured labor, bonded labor or otherwise.

Child Labor. No person shall be employed at an age younger than 15 or younger than the age
for completing compulsory education in the country of manufacture where such age is higher than 15.

Harassment or Abuse. Every employee shall be treated with respect and dignity. No
employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse.

Nondiscrimination. No person shall be subject to any discrimination in employment,
including hiring, salary, benefits, advancement, discipline, termination or retirement, on the
basis of gender, race, religion, age, disability, sexual orientation, nationality, political
opinion, or social or ethnic origin.

Health and Safety. Employers shall provide a safe and healthy working environment to
prevent accidents and injury to health arising out of, linked with or occurring in the course of
work as a result of the operation of employer facilities.

Freedom of Association and Collective Bargaining. Employers shall recognize and respect
the right of employees to freedom of association and collective bargaining.

Wages and Benefits. Employers recognize that wages are essential to meeting employees’
basic needs. Employers shall pay employees, as a floor, at least the minimum wage required by
local law or the prevailing industry wage, whichever is higher, and shall provide legally mandated
benefits.

 

 

 

Hours of Work. Except in extraordinary business circumstances, employees shall not be
required to work more than the lesser of 60 hours per week or the limits on regular and overtime
hours allowed by the law of the country of manufacture. Except in extraordinary circumstances,
employees shall be entitled to at least one day off every seven day period.

Overtime Compensation. In addition to their compensation for regular hours of work,
employees shall be compensated for overtime hours at such premium rate as is legally required in
the country of manufacture or, in those countries where such laws do not exist, at a rate at least
equal to their regular hourly compensation rate.

If you believe that these Standards of Engagement are not being upheld or if you have any questions
regarding these Standards of Engagement, please contact the Liz Claiborne country manager. Your
identity will be kept in confidence.

 

 

 

EXHIBIT I

Trademark Disclosure

 

 

 

EXHIBIT I

Trademark Disclosure

License Agreement Section 15.1 None

License Agreement Section 15.2 None

License Agreement Section 15.3 None

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