Document:

EX-10.1

 

 

BANCO POPULAR

 

 

May 14, 2003

 

 

Mr. James F. Callahan

Corporate Controller

Wallace International de Puerto
Rico, Inc.

175 McClellan Highway

East Boston, Massachusetts
02128

 

 

VIA FACSIMILE (617) 568-1370

 

 

Dear Mr. Callahan:

 

 

Please be advised that Wallace
International de Puerto Rico, Inc. has authorized line of credit with Banco
Popular de Puerto Rico for the amount of Five hundred Thousand dollars
($500,000).  This facility bears
interest at a floating rate per annum equal to the sum of the Index Rate plus
two hundred (200) basis points.  It is
required an annual clean up to fifteen (15) calendar days during each approval
period.  The expiration date for this
line is January 30, 2004.

 

Please be advised that the
current Line of Credit Agreement needs to be amended to reflect the above
stated changes. Guarantees will continue in full force and effect.

 

We trust this information is
useful to you.

 

 

Sincerely,

 

 

/s/ Joffre Gomez

Credit & Commercial
Relationships Officer

Mayaguez Commercial Banking Center

 

cc Luis
SantiagoExhibit 10.2

 

LICENSE AGREEMENT

 

THIS AGREEMENT
(the “Agreement”) made as of this 16th day of April 2003, by and between V.E.W.
LTD., 225 West 39th Street, New York, New York 10018 (“VEW”), and
Syratech Corporation, 175 McClellan Highway, East Boston, Massachusetts 02128
(“Syratech”).

 

NOW,
THEREFORE, in consideration of the mutual promises herein contained and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:

 

1.                                      Definitions.

 

(a)                                  “Accounting
Period” shall mean each three (3) month period during a Contract Year  (i) commencing January 1 and ending March
31, (ii) commencing April 1 and ending June 30, (iii) commencing July 1 and
ending September 30, and (iv) commencing October 1 and ending December 31.

 

(b)                                 “Advertising
Commitment” means the non-refundable, non-recoupable monies required to be
expended by Syratech pursuant to Paragraph 9(a) in connection with consumer
advertising, marketing and promotion of the Licensed Property.

 

(c)                                  “Advertising
Expenses” means the non-refundable, non-recoupable fee required to be paid by
Syratech to VEW pursuant to Paragraph 9(e) during the Term to be used by VEW in
its discretion in connection with advertising and promoting the Licensed
Property, including, without limitation, the costs of advertising materials,
fees paid to outside agencies, etc.

 

(d)                                 “Agreement”
has the meaning set forth in the introductory paragraph above.

 

(e)                                  “Change
of Control Event” has the meaning set forth in Paragraph 22.

 

(f)                                    “Claims”
has the meaning set forth in Paragraph 20(a).

 

 

(g)                                 “Closeout
Customers” means those retailers located in the Territory that (i)
predominantly sell “off-price” branded merchandise (as such term is customarily
understood in the retail industry) and (ii) are approved by VEW in advance in
writing.  By way of illustration only,
and without limitation, Closeout Customers may include MarMaxx (including TJ
Maxx, Marshalls and Home Goods), Tuesday Morning, Ross Stores, Nordstroms – The
Rack, Neiman Marcus – Last Call, Saks Off Fifth, Crate Outlet Stores and
Spiegel Outlet Stores.  Syratech shall
submit a list of proposed Closeout Customers to VEW by August 30th
of each Contract Year during the Term commencing with Year One and VEW shall
approve or disapprove such list of proposed Closeout Customers by September 30th
of such Contract Year.

 

(h)                                 “Closeout
Licensed Property” means only those items of Licensed Property approved in
advance in writing by VEW for sale and distribution to Closeout Customers.

 

(i)                                     “Contract
Year” means a calendar year (January 1 through December 31) during the Term,
provided that the first Contract Year shall be deemed to commence as of the
date of execution of this Agreement and end on December 31, 2003 (inclusive).

 

(j)                                     “Coop
Ad Spend” means the non-refundable, non-recoupable monies required to be
expended by Syratech pursuant to Paragraph 9(f) from the Advertising Commitment
during the Term for cooperative advertising, marketing and/or promotion of the
Licensed Property to the general public by High-End Stores, including, without
limitation, in-store point-of-sale materials and displays, trade shows and
brochures and pamphlets and any other promotional or collateral material
produced by High-End Stores for dissemination or display directly to retail
consumers.

 

(k)                                  “Excess”
has the meaning set forth in Paragraph 9(a).

 

(l)                                     “Exclusive
Negotiating Period” has the meaning set forth in Paragraph 6(b).

 

(m)                               “Foreign
Territory” means any territory that is not included in the Territory and is a
recognized geographical nation or group of nations.

 

(n)                                 “Foreign
Territory Proposal” means a written proposal submitted by Syratech to VEW
pursuant to Paragraph 7 that sets forth proposed terms and conditions

 

2

 

for VEW to license Syratech the
exclusive right to exploit the Licensed Property in a Foreign Territory and
that includes, without limitation, a proposed sales plan for the Licensed
Property in the applicable Foreign Territory for the Term that (i) is
consistent in all respects with the prestige luxury status of the Vera Wang
brand; and (ii) establishes that, if the Licensed Property is exploited in
the applicable Foreign Territory pursuant to such sales plan, sales of the Licensed
Property in the applicable Foreign Territory will exceed a threshold minimum
amount to be mutually agreed to in good faith by the Parties.

 

(o)                                 “Guaranteed
Minimum Royalty” means a guaranteed non-returnable royalty payment by Syratech
to VEW as set forth in Paragraph 5(a). 
The Guaranteed Minimum Royalty shall be recoupable by Syratech as set
forth in Paragraph 5(c).

 

(p)                                 “High-End
Stores” means only the first class department stores, first class retail stores
and first class boutiques that (i) carry products substantially similar to the
Licensed Articles that are sold by or on behalf of other prestige luxury brands
and (ii) are approved by VEW in advance in writing.  By way of illustration only, and without limitation, High-End
Stores may include Federated Department Stores, Marshall Fields, Dayton and
Hudson, Bed, Bath & Beyond, Saks Fifth Avenue, Neiman Marcus and Fortunoff.  Syratech
shall submit a list of proposed High-End Stores to VEW by August 30th
of each Contract Year during the Term commencing with Year One and VEW shall
approve or disapprove such list of proposed High-End Stores by September 30th
of such Contract Year.  High-End Stores
do not include discounters or mass distributors that sell consumer products
(which may, from time to time, include prestige luxury consumer goods) at
prices below their suggested retail prices in the regular course of
business.  By way of illustration only,
existing discounters and/or mass distributors currently include, without
limitation, Target, K-Mart, Sears, J.C. Penney, Costco and Wal-Mart.

 

(q)                                 “Insurance”
has the meaning set forth in Paragraph 17.

 

(r)                                    “Internet
Rights” has the meaning set forth in Paragraph 2(d).

 

(s)                                  “Launch”
means the advertising, marketing and promotional activities specifically in
connection with the initial launch of the Licensed Property, including, without
limitation, advertising campaigns and special events.

 

3

 

(t)                                    “Launch
Budget” means the monies required to be expended by Syratech pursuant to
Paragraph 9(h) in the amount of up to Twenty Five Thousand Dollars ($25,000);
except that VEW may expend some or all of the Launch Budget to the extent
mutually agreed by the Parties in a separate writing pursuant to
Paragraph 9(h).

 

(u)                                 “Licensed
Articles” means only items within the product categories set forth in Schedule
A attached hereto and incorporated herein by this reference, as such Schedule A
may be amended from time to time pursuant to a written agreement executed by
the Parties.

 

(v)                                 “Licensed
Property” means the Licensed Articles on or in which the Trademarks are
incorporated.

 

(w)                               “License
Fee” has the meaning set forth in Paragraph 3.

 

(x)                                   “Manufacturer”
has the meaning set forth in Paragraph 11(g).

 

(y)                                 “Material”
has the meaning set forth in Paragraph 16(a).

 

(z)                                   “Net
Wholesale Sales” means all consideration received by and/or credited to the
account of Syratech (and/or any of its affiliated or related entities) in
respect of each unit of the Licensed Property, including, without limitation,
Closeout Licensed Property, if any, sold in the Territory, less only the
following amounts:

 

(i)                                     refunded amounts
actually paid by Syratech to retail purchasers (i.e., High-End Stores) of the
Licensed Property from Syratech for returns thereof, and any cash or other
discounts or rebates or returns given or granted by Syratech in respect of the
Licensed Property, or taken by retailers, including, without limitation,
cooperative advertising;

 

(ii)                                  all actual,
reasonable freight charges paid to third parties applicable to (A) such sales
of the Licensed Property that were actually billed to and paid by the retail
purchasers (i.e., High-End Stores) of such Licensed Property from Syratech and
(B) such sales of the Closeout Licensed Property that were actually billed to
and paid by Closeout Customers of such Closeout Licensed

 

4

 

Property from Syratech, if any, in either
case solely if and as set forth on the invoices to such retail purchasers or
Closeout Customers, as applicable; and

 

(iii)                               actual sales and excise
taxes applicable to sales of the Licensed Property, including, without
limitation, Closeout Licensed Property, if any, that were (A) incurred
during the Accounting Period that such units of the Licensed Property and/or
Closeout Licensed Property, if any, were sold, (B) validly and mandatorily paid
to legitimate government entities with jurisdiction over such sales of the
Licensed Property or Closeout Licensed Property, if any, pursuant to applicable
laws and (C) actually billed to and paid by the retail purchasers (i.e.,
High-End Stores) of such Licensed Property from Syratech and actually billed to
and paid by Closeout Customers of such Closeout Licensed Property from
Syratech, if any, in either case solely if and as set forth on the invoices to
such retail purchasers or Closeout Customers, as applicable.

 

In no event
may the amounts described in sub-clause (i) above equal more than fifteen
percent (15%) of all consideration received by and/or credited to the account
of Syratech (and/or any of its affiliated or related entities) in respect of
each unit of the Licensed Property, including, without limitation, Closeout
Licensed Property, if any, sold in the Territory.

 

(aa)                            “Packaging
Budget” means the monies required to be expended by Syratech in connection with
the designing and prototyping of the Licensed Property pursuant to Paragraph
9(i) in the amount of up to Twenty Five Thousand Dollars ($25,000).

 

(bb)                          “Party”
means either VEW or Syratech individually, and “Parties” means VEW and Syratech
collectively.

 

(cc)                            “Personal
Appearances” means appearances on and at mutually agreed dates, times and
places for mutually agreed promotional purposes and/or mutually agreed special
events (including, without limitation, in-store, television and/or press
appearances) relating to the Licensed Property.

 

5

 

(dd)                          “Photography/Production/Media
Budget” means the non-refundable, non-recoupable monies required to be expended
by Syratech pursuant to Paragraph 9(g) from the Advertising Commitment during
the Term in connection with photography, production and media, including,
without limitation, the following:

 

(i)                                     Photography costs
and expenses (e.g., (A) photographer’s and photographer assistants’ fees, (B)
film and processing costs, (C) equipment and lighting costs, (D) studio rental
fees and expenses, (E) production expenses (including, without limitation,
transportation, parking and miscellaneous), (F) prop stylists and prop stylist
assistants, (G) props, backgrounds and other supplies, (H) other stylists
and other stylist assistants, (I) models, and (J) agency fees and
commissions);

 

(ii)                                  Production costs and
expenses (e.g., (A) scanning and retouching of images, (B) print and film
supervision, (C) stripping and mechanicals, (D) press proofs, (E) media
run-of-book (making images print-ready) and (F) agency fees and commissions);
and

 

(iii)                               Media costs and expenses
(e.g., the costs of media buys, the prices of which may reflect market rates as
determined by the publications in which media is purchased, including, without
limitation, fashion, so-called “shelter” and/or other consumer publications).

 

(ee)                            “Portfolio
Fee” means the non-refundable, non-recoupable fee required to be paid by
Syratech to VEW pursuant to Paragraph 9(b) during the Term to be used by VEW in
its discretion in connection with advertising and promotion of the Vera Wang
brand as a prestige luxury brand, which advertising and promotion may include,
without limitation, master branding campaigns, fashion events or shows, charity
events and/or promotions on websites (it being acknowledged and agreed that any
promotion of the Licensed Products on the VEW website, other than the general
promotion of the Licensed Products with other VEW products on the VEW website,
if any, shall be in VEW’s discretion and shall require the payment of
additional fees by Syratech to be negotiated in good faith by the Parties).

 

6

 

(ff)                                “PR
Expenses” means the actual fee required to be paid by Syratech to VEW pursuant
to Paragraph 9(d) during the Term to be used by VEW in its discretion in
connection with its public relations activities, including, without limitation,
the costs of press kits, special promotional events, etc.

 

(gg)                          “PR
Fee” means the non-refundable, non-recoupable expenses required to be paid by
Syratech to VEW pursuant to Paragraph 9(c) during the Term to be used by VEW in
its discretion in connection with VEW’s public relations overhead, personnel
and expenses allocated or otherwise related to the Licensed Property,
including, without limitation, travel, accommodations and costs incurred in
connection with public relation materials and events.

 

(hh)                          “Rights”
has the meaning set forth in Paragraph 16(b).

 

(ii)                                  “Royalty”
has the meaning set forth in Paragraph 4(b).

 

(jj)                                  “Seasonal
Items” has the meaning set forth in Paragraph 13(g).

 

(kk)                            “Sell-Off
Period” means the period commencing on the date this Agreement is terminated
and ending on the date that is twelve (12) months thereafter.

 

(ll)                                  “Shortfall”
means the amount by which the Royalties for a Contract Year fall short of the
Guaranteed Minimum Royalty for such Contract Year.

 

(mm)                      “Start Date”
has the meaning set forth in Paragraph 6(b).

 

(nn)                          “Surplus”
means the amount by which Royalties for a Contract Year exceed the Guaranteed
Minimum Royalty for such Contract Year.

 

(oo)                          “Syratech”
has the meaning set forth in the introductory paragraph above.

 

(pp)                          “Syratech
Covered Claim” has the meaning set forth in Paragraph 20(a).

 

(qq)                          “Syratech
Material” has the meaning set forth in Paragraph 16(c).

 

(rr)                                “Targeted
Amounts” has the meaning set forth in Paragraph 9(j).

 

7

 

(ss)                            “Term”
has the meaning set forth in Paragraph 6.

 

(tt)                                “Territory”
means the United States, Canada and the United Kingdom and each of their
respective territories, commonwealths and possessions; provided that with
respect to the United Kingdom, the rights granted hereunder to Syratech must be
exploited by the start of the 2005 Contract Year or the United Kingdom will
become a Foreign Territory as defined in Paragraph 1(m) above and shall be
subject to the provisions of Paragraph 7 below.

 

(uu)                          “Tooling”
has the meaning set forth in Paragraph 16(a).

 

(vv)                          “Trademarks”
means (i) only those trademarks incorporating the name “Vera Wang”, and such
variations and stylized forms thereof, that are designated and/or approved by
VEW in its sole discretion pursuant to Paragraph 11 or otherwise and (ii) all
trademarks created or commercially exploited in connection with the Licensed
Property other than to the extent such trademarks incorporate the mark
“Syratech” or any mark owned by Syratech. 
As of the date of this Agreement,
the Trademarks include the marks “Vera Wang”, “Vera Wang Luxe” and the “VW” (or
the stylized form thereof).

 

(ww)                      “VEW” has
the meaning set forth in the introductory paragraph above.

 

(xx)                              “VEW
Competitor” has the meaning set forth in Paragraph 13(e).

 

(yy)                          “VEW
Covered Claim” has the meaning set forth in Paragraph 20(b).

 

(zz)                              “VEW
Licensed Names” has the meaning set forth in Paragraph 13(b).

 

(aaa)                      “Year One”
means the period commencing upon execution of this Agreement and ending
December 31, 2003.

 

(bbb)                   “Year Two”
means the period commencing January 1, 2004 and ending December 31,
2004.

 

(ccc)                      “Year Three”
means the period commencing January 1, 2005 and ending December 31,
2005.

 

8

 

(ddd)                   “Year Four”
means the period commencing January 1, 2006 and ending December 31, 2006.

 

(eee)                      “Year Five”
means the period commencing January 1, 2007 and ending December 31, 2007.

 

(fff)                            “Year
Six” means the period commencing January 1, 2008 and ending December 31,
2008.

 

2.                                      License.

 

(a)                                  Subject
to all the terms and conditions of this Agreement and Syratech’s full
performance of all its material obligations in accordance therewith, VEW
licenses to Syratech and its wholly-owned subsidiaries the limited exclusive
right to use the Trademarks throughout the Territory solely during the Term
solely to (i) design, develop and manufacture the Licensed Articles and
the Licensed Property; (ii) distribute and sell the Licensed Property to
High-End Stores, and the Closeout Licensed Property to Closeout Customers
subject to Paragraph 13(f) below, and (iii) advertise and promote the Licensed
Property.  Syratech shall have no right
to, and shall not, use or otherwise exploit the Licensed Articles, the
Trademarks and/or the Licensed Property in any manner other than as expressly
authorized herein.

 

(b)                                 Syratech
shall use all commercially reasonable efforts to exploit the rights licensed
hereunder and to sell the maximum quantity of the Licensed Property in the
Territory during the Term, in all cases in accordance with this Agreement and
consistent with the highest business and quality standards and the prestige
luxury status of the Vera Wang brand.  Without limitation of the
foregoing, the Parties acknowledge and agree that it is of the essence of this
Agreement that (i) Syratech commence distributing and selling the Licensed
Property to High-End Stores in the Territory not later than Fall 2004 (it being
acknowledged by the Parties that they shall use all commercially reasonable efforts
to commence selling and distributing the Licensed Property hereunder in Spring
2004) and (ii) Syratech, during each Contract Year, distribute and sell in the
Territory the number of collections of the Licensed Property set forth on
Schedule B attached hereto and incorporated herein by this reference.

 

(c)                                  The Parties
acknowledge and agree that the Licensed Articles only include, and Syratech
shall only have the right to use the Trademarks in, the items in the

 

9

 

product categories set forth on
Schedule A.  All rights not expressly
licensed by VEW to Syratech pursuant to this Agreement are hereby reserved
exclusively to VEW for its use and disposition in its sole discretion in any
manner throughout the universe in perpetuity in any and all languages, formats
and media whether now or hereafter known or existing, with no obligation
whatsoever (financial, legal or otherwise) to Syratech or any third party.
Nothing in this Agreement shall in any way restrict VEW or any third party
authorized by VEW from (i) designing, developing, manufacturing,
distributing, selling or otherwise exploiting rights in the product categories
that are set forth on Schedule A, other than in the materials expressly
described on Schedule A, or in any product categories that are not set forth on
Schedule A, anywhere in the world at anytime; (ii) using or authorizing
the use of accents of any materials contained in the Licensed Articles (e.g.,
silver, and/or any other precious or non-precious metals) in items in the
non-exclusive product categories that are set forth on Schedule A (by way of
illustration only, and without limitation, VEW may itself sell and distribute,
or license a third party to sell and distribute, a silver lipped crystal decanter,
etc.); (iii) using or authorizing the use of any materials contained in the
Licensed Articles (e.g., silver, and/or any other precious or non-precious
metals) in connection with any product categories not set forth on Schedule A;
and/or (iv) using or authorizing the use of the Trademarks and/or any
other VEW trademarks in any way other than in connection with the Licensed
Property.

 

(d)                                 In
addition to the foregoing, during the Term, Syratech shall have the right to
advertise, promote, market, sell and distribute the Licensed Property via the
Internet (the “Internet Rights”); provided that the Internet Rights shall only
be exercised in connection with internet websites that (i) sell products
substantially similar to the Licensed Articles that are sold by or on behalf of
other prestige luxury brands (including, without limitation, vivre.com,
macys.com, bloomingdales.com, rosssimon.com, saksfifthavenue.com and
eluxury.com)  and (ii) are specifically
approved in each instance by VEW in advance in writing (which approval may be
withdrawn upon thirty (30) days prior notice). 
In any event, the Internet Rights shall not be exercised unless and
until Syratech obtains written agreements in advance from the parties that own
or control such internet websites pursuant to which such parties agree that the
manner in which items of the Licensed Property are displayed and promoted on
such websites shall be subject to the prior written approval of VEW.  Notwithstanding any contrary provision of
this Agreement, the Parties acknowledge and agree that, due to the global
nature of internet access, Syratech’s Internet Rights are non-exclusive;
provided that if VEW determines (in its reasonable discretion) that internet
technology is such that access to the internet can be restricted on a
territory-by-territory basis at no cost and expense to VEW, then

 

10

 

Syratech shall have exclusive
Internet Rights in the Territory. It is acknowledged and agreed that during the
Term, VEW shall not itself sell or distribute the Licensed Property via the
internet other than on the VEW website; provided that the foregoing shall not
prohibit VEW from granting Internet Rights to a third party licensee in any
Foreign Territory on a non-exclusive basis (unless access to the internet can
be restricted on a territory-by-territory basis in accordance with the
immediately preceding sentence, in which case such Internet Rights may be
exclusive), it being acknowledged and agreed that such Internet Rights shall in
no event include the right to use the mark “Syratech” or any mark owned by
Syratech.

 

3.                                      License
Fee.

 

In
consideration for all rights licensed herein during the Term by VEW to
Syratech, Syratech shall pay VEW a one-time, non-refundable, non-recoupable
license fee in the amount of Fifty Thousand Dollars ($50,000) (the “License
Fee”) simultaneously upon execution of this Agreement.

 

4.                                      Royalties.

 

(a)                                  Subject
to Paragraph 4(b) below, Syratech shall pay VEW the following non-refundable
royalties with respect to sales of the Licensed Property as follows:

 

(i)                                     With respect to
any and all Net Wholesale Sales of the Licensed Property to High-End Stores and
Net Wholesale Sales of the Closeout Licensed Property to Closeout Customers, if
any, a sales royalty in the amount of six and three-tenths percent (6.3%) of
such Net Wholesale Sales.

 

(ii)                                  Notwithstanding
anything to the contrary in Paragraph 4(a)(i) above, with respect to those
cumulative Net Wholesale Sales of the Licensed Property to High-End Stores and Net
Wholesale Sales of the Closeout Licensed Property to Closeout Customers, if
any, during the Term that are in excess of Twenty Million Dollars
($20,000,000), the sales royalty shall be in the amount of nine and
three-tenths percent (9.3%) of such Net Wholesale Sales.

 

11

 

(b)                                 The royalties and fees
payable to VEW pursuant to clauses (i) and (ii) of Paragraph 4(a) above may be
referred to herein collectively as the “Royalty”.

 

5.                                      Guaranteed
Minimum Royalty.

 

(a)                                  During
the Term, Syratech shall pay VEW a Guaranteed Minimum Royalty, payable as
follows:

 

(i)                                     Two Hundred Fifty
Thousand Dollars ($250,000) in Year One payable as follows:  Eighty Three Thousand Three Hundred Thirty
Three Dollars and Thirty Four Cents ($83,333.34) on or before April
1, 2003 and Eighty Three Thousand Three Hundred Thirty Three Dollars and
Thirty Three Cents ($83,333.33) on or before each of July 1, 2003 and October
1, 2003;

 

(ii)                                  Two Hundred
Seventy-Five Thousand Dollars ($275,000) in Year Two payable in equal calendar
quarterly payments of Sixty-Eight Thousand Seven Hundred Fifty Dollars
($68,750) each on or before January 1, 2004, April 1, 2004, July 1, 2004,
and October 1, 2004;

 

(iii)                               Three Hundred Fifty
Thousand Dollars ($350,000) in Year Three payable in equal calendar quarterly
payments of Eighty-Seven Thousand Five Hundred Dollars ($87,500) each on or
before January 1, 2005, April 1, 2005, July 1, 2005, and October 1, 2005;

 

(iv)                              Four Hundred Thousand
Dollars ($400,000) in Year Four payable in equal calendar quarterly payments of
One Hundred Thousand Dollars ($100,000) each on or before January 1, 2006,
April 1, 2006, July 1, 2006, and October 1, 2006;

 

(v)                                 Four Hundred Thousand
Dollars ($400,000) in Year Five payable in equal calendar quarterly payments of
One Hundred Thousand Dollars ($100,000) each on or before January 1, 2007,
April 1, 2007, July 1, 2007, and October 1, 2007; and

 

12

 

(vi)                              Five Hundred Thousand
Dollars ($500,000) in Year Six payable in equal calendar quarterly payments of
One Hundred Twenty-Five Thousand Dollars ($125,000) each on or before January
1, 2008, April 1, 2008, July 1, 2008, and October 1, 2008;

 

(b)                                 If
the Royalties for Year One are less than the Guaranteed Minimum Royalty for
Year One, Syratech may credit the Shortfall for Year One against Royalties for
Year Two solely to the extent (if any) that the Royalties for Year Two exceed
the Guaranteed Minimum Royalty for Year Two. 
If the Shortfall in Year One is greater than the Surplus (if any) in
Year Two, or if there is instead a Shortfall in Year Two, Syratech may credit
the remaining Shortfall from Year One (or the entire Shortfall from Year One if
there is a Shortfall in Year Two) against the Surplus (if any) in Year
Three.  If there is still a Shortfall
from Year One remaining after crediting such Shortfall against the Surplus (if
any) in Year Three, or if there is a Shortfall in Year Three, Syratech may
credit the remaining Shortfall from Year One (or the entire Shortfall from Year
One if there is a Shortfall in Year Three) against the Surplus (if any) in Year
Four.  If there is a Shortfall in Year
Two, Syratech may credit the Shortfall from Year Two in an amount not to exceed
Seventy Five Thousand Dollars ($75,000) against the Surplus (if any) in Year
Three.  For all Contract Years after
Year Four, Syratech shall not be entitled to carry forward any such Shortfall
and Syratech shall only be entitled to recoup the portion of the Guaranteed
Minimum Royalty paid to VEW during any such subsequent Contract Year by
crediting such portion of the Guaranteed Minimum Royalty solely against
Royalties payable to VEW in the same Contract Year.

 

6.                                      Term.

 

(a)                                  Subject
to all the terms and conditions of this Agreement and Syratech’s full
performance of all of its material obligations in accordance therewith, and
subject to any and all rights of termination available to VEW and/or Syratech
at law or in equity, the term of this Agreement shall commence as of the date
of execution of this Agreement and shall terminate on December 31, 2008 unless
terminated earlier pursuant to this Agreement (the “Term”).

 

(b)                                 From
the date that is twelve (12) months prior to the expiration of the Term (the
“Start Date”), the Parties shall have a period of ninety (90) days (the
“Exclusive Negotiating Period”) to negotiate in good faith with respect to the
extension of this Agreement beyond the Term. 
If prior to the Start Date either Party notifies the

 

13

 

other Party that it does not
desire to negotiate for the extension of this Agreement beyond the Term or if
during the Exclusive Negotiating Period (i) either Party decides to terminate
such negotiations and/or (ii) the Parties do not enter  a final binding written agreement with
respect to such an extension, then this Agreement shall terminate at the end of
the Term and neither Party shall have any further obligation to the other
whatsoever (financial, legal or otherwise), other than as expressly set forth
herein.

 

7.                                      Territory;
Foreign Territories.

 

(a)                                  Subject
to all the terms and conditions of this Agreement and Syratech’s full
performance of all of its material obligations in accordance therewith,
Syratech shall have the exclusive right to exploit the Licensed Property in the
Territory.

 

(b)                                 Subject
to all the terms and conditions of this Agreement and Syratech’s full
performance of all of its material obligations in accordance therewith,
Syratech may seek to obtain the right to exploit the Licensed Property in any
Foreign Territory during the Term (provided that VEW has not theretofore
granted a third party the right to exploit the Licensed Property in any such
Foreign Territory in accordance with Paragraphs 7(c) or 7(d) below) solely in accordance
with the following provisions:

 

(i)                                     Syratech may at
any time provide VEW with written notice of its desire to submit to VEW a
Foreign Territory Proposal with respect to any Foreign Territory for which
Syratech desires to obtain the exclusive license to exploit the Licensed
Property.  If VEW fails to notify
Syratech in writing within fifteen (15) days after receiving Syratech’s notice,
or if VEW notifies Syratech in writing that it does not desire to license Syratech
the exclusive right to exploit the Licensed Property in any Foreign Territory
set forth in Syratech’s notice, then Syratech shall have no right whatsoever to
exploit the Licensed Property in the applicable Foreign Territory; provided
that VEW’s right to exploit the Licensed Property in the applicable Foreign
Territory shall remain subject to Paragraphs 7(c) and 7(d) below.

 

(ii)                                  If VEW notifies
Syratech in writing that it agrees to negotiate with Syratech with respect to
any Foreign Territory set forth in Syratech’s notice to VEW pursuant to clause
(i) above, then

 

14

 

Syratech shall submit a Foreign Territory
Proposal to VEW with respect to each such Foreign Territory within thirty (30)
days after VEW’s notice to Syratech.  If
Syratech fails to submit a Foreign Territory Proposal to VEW pursuant to this
clause (ii), then Syratech shall have no right whatsoever to exploit the
Licensed Property in the applicable Foreign Territory, and VEW shall be free to
solicit, negotiate and/or enter any agreement with any third party with respect
to such Foreign Territory in its sole discretion without any obligation
whatsoever (financial, legal or otherwise) to Syratech or any other party.

 

(iii)                               If Syratech submits a
Foreign Territory Proposal to VEW pursuant to clause (ii) above, the Parties
shall negotiate exclusively in good faith with respect thereto for up to sixty
(60) days after VEW’s receipt thereof. 
If at any time during such sixty (60) day period the Parties agree to
terminate such negotiations and/or if the Parties do not enter a final binding
written agreement within such sixty (60) day period, then Syratech shall have
no right whatsoever to exploit the Licensed Property in the applicable Foreign
Territory.  If VEW thereafter receives a
written proposal from a third party setting forth terms and conditions for a
license to exploit the Licensed Articles in the Foreign Territory for which
Syratech previously submitted a Foreign Territory Proposal, VEW shall so notify
Syratech and Syratech shall have the right to negotiate on a non-exclusive
basis with VEW in good faith with respect to the terms and conditions for a
license to exploit the Licensed Articles in such Foreign Territory.  It is expressly acknowledged and agreed that
unless the Parties reach and enter an agreement with respect to such terms and
conditions for such Foreign Territory, VEW shall have the right to license to
third parties the rights to exploit the Licensed Articles in such Foreign
Territory without any further obligation to Syratech or any third parties
deriving rights from Syratech whatsoever (financial, legal or otherwise).

 

(c)                                  Subject
to all the terms and conditions of this Agreement and Syratech’s full
performance of all of its material obligations in accordance therewith, if VEW
desires to exploit the Licensed Articles in any Foreign Territory and Syratech
does not already

 

15

 

have a license from VEW to
exploit the Licensed Articles therein, VEW shall so notify Syratech and Syratech
shall have the right to negotiate exclusively with VEW in good faith for up to
sixty (60) days after Syratech’s receipt of such notice with respect to the
terms and conditions for a license to exploit the Licensed Articles in such
Foreign Territory.  If at any time
during such sixty (60) day period the Parties agree to terminate such
negotiations and/or if the Parties do not enter a final binding written
agreement within such sixty (60) day period, then Syratech shall have no right
whatsoever to exploit the Licensed Articles in the applicable Foreign
Territory.  If VEW thereafter receives a
written proposal from a third party setting forth terms and conditions for a
license to exploit the Licensed Articles in such Foreign Territory, VEW shall
so notify Syratech and Syratech shall have the right to negotiate on a
non-exclusive basis with VEW in good faith with respect to the terms and
conditions for a license to exploit the Licensed Articles in such Foreign
Territory.  It is expressly acknowledged
and agreed that unless the Parties reach and enter an agreement with respect to
such terms and conditions for such Foreign Territory, VEW shall have the right
to license to third parties the rights to exploit the Licensed Articles in such
Foreign Territory without any further obligation to Syratech or any third
parties deriving rights from Syratech whatsoever (financial, legal or
otherwise).

 

(d)                                 Subject
to all the terms and conditions of this Agreement and Syratech’s full
performance of all of its material obligations in accordance therewith, if VEW
receives a written proposal from a third party setting forth terms and
conditions for a license to exploit the Licensed Articles in any Foreign
Territory and Syratech does not already have a license to exploit the Licensed
Articles therein (and Syratech has not previously failed to submit a Foreign
Territory Proposal for such Foreign Territory in accordance with Paragraph
7(b)(ii) above), VEW shall notify Syratech and Syratech shall have the right to
negotiate on a non-exclusive basis with VEW in good faith with respect to the
terms and conditions for a license to exploit the Licensed Articles in such
Foreign Territory.  It is expressly
acknowledged and agreed that unless the Parties reach and enter an agreement
with respect to such terms and conditions for such Foreign Territory, VEW shall
have the right to license to third parties the rights to exploit the Licensed
Articles in such Foreign Territory without any further obligation to Syratech
or any third parties deriving rights from Syratech whatsoever (financial, legal
or otherwise).

 

(e)                                  Notwithstanding
any contrary provisions of this Agreement, Syratech shall have no right to
distribute, sell, advertise, promote and/or otherwise exploit the Licensed
Property or any rights therein in any Foreign Territory unless and until
expressly authorized in advance in writing by VEW and solely in accordance with
this Paragraph 7.

 

16

 

The Parties intend that, except
to the extent they otherwise agree in writing, any final agreement entered into
by the Parties in connection with the authorized exploitation of the Licensed
Property in any Foreign Territory by or on behalf of Syratech shall be subject
to all the same terms and conditions of this Agreement applicable to the
authorized exploitation in the Territory, including, without limitation, VEW’s
approvals set forth in Paragraph 11 and the Royalty payments provided for
in Paragraph 4; provided that Net Wholesale Sales of the Licensed Property in
any such Foreign Territory shall not be applied towards Syratech’s recoupment
of any Guaranteed Minimum Royalty. 
Notwithstanding the provisions of Paragraphs 7(b)(iii) and 7(c) above,
if Syratech submits a Foreign Territory Proposal to VEW for Japan, or if VEW
desires to exploit the Licensed Articles in Japan, any negotiation between
Syratech and VEW for such Foreign Territory shall be non-exclusive and shall
not be required to be for a specific period of time.

 

8.                                      Payments/Statements.

 

(a)                                  On
a calendar quarterly basis, within forty-five (45) days after the end of each
Accounting Period, Syratech shall deliver to VEW the Royalty due VEW for such
Accounting Period, together with a written statement which shall be certified
as accurate by an authorized Syratech officer and shall set forth, in line
itemized detail (by product category, style, retailer, country and/or other
recognized geographical nation and/or group of nations), Net Wholesale Sales of
the Licensed Property with respect to the relevant Accounting Period and on a
year-to-date basis and all information relevant to the calculation thereof,
including, without limitation, Syratech’s actual sales of the Licensed
Property, the actual prices charged by Syratech for each unit thereof, actual
returns of such units and the Royalty due VEW in respect of such sales, as well
as such substantiating documentation as may be reasonably requested by VEW, in
form and substance satisfactory to VEW. 
Such statements shall be furnished to VEW whether or not any Royalties
are payable with respect to the relevant Accounting Period.  In addition to the foregoing, Syratech shall
provide VEW with monthly statements of Net Wholesale Sales of the Licensed
Property not later than fifteen (15) days following the end of the month to
which such statement relates.

 

(b)                                 All
payments hereunder shall be made in United States dollars.  Payments based on Net Wholesale Sales of the
Licensed Property denominated in a currency other than United States dollars
shall be converted to United States dollars at the New York foreign exchange
selling rate as published in the Wall Street
Journal (or comparable

 

17

 

source in the event the Wall Street Journal ceases to exist or
fails to publish such exchange rate) on the last business day of each
Accounting Period in which such Net Wholesale Sales occur.

 

(c)                                  Interest
at the rate of the overnight prime rate of Citibank in New York, New York, in
effect on the date any payment is due hereunder plus three (3) percentage
points, shall accrue from and after such date on any amount due but not paid to
VEW until the date of actual payment by Syratech.  Such interest shall be calculated daily at the aforesaid rate
until payment is made by Syratech.  The
payment of such interest in accordance with the terms hereof is in addition to
all other remedies available to VEW in the event of a default or termination.

 

(d)                                 Syratech
shall maintain complete and accurate records of sales and returns of the Licensed
Property, third party agreements and/or other documents relating to the
Licensed Property and the exercise of any rights licensed pursuant to this
Agreement, Royalty computations and payment statements.  All statements rendered by Syratech shall be
conclusively binding upon VEW unless VEW objects in writing within two (2)
years from the date such statement is received by VEW.

 

(e)                                  During
the Term and for four (4) years thereafter, VEW may, at its own expense, audit
Syratech’s books, records, agreements and other documents relating to this
Agreement and/or the exercise of any rights or performance of any obligations
hereunder, including, without limitation, to verify amounts expended and/or
consideration received.  VEW may
initiate such audit only by giving notice to Syratech at least thirty (30) days
prior to the date VEW intends to commence VEW’s audit.  VEW’s audit may be conducted only during
regular business hours at such place(s) where Syratech regularly keeps the
books, records, agreements and other documents to be examined and such audit
shall not unreasonably disrupt Syratech’s business activities at such
location.  VEW shall only be entitled to
conduct one (1) audit during each one (1) year period.  After rendering a report to VEW, VEW’s
auditor will review his written finding with a member of Syratech’s finance
staff designated by Syratech so as to attempt to remedy any factual errors and
clarify issues that may have resulted from misunderstanding.  If a discrepancy in VEW’s favor is
discovered after the review of the auditor’s findings by VEW, Syratech shall
immediately pay to VEW the full amount of such discrepancy, and if the amount
of such discrepancy is greater than five percent (5%) of any amount paid or
required to have been paid to VEW, Syratech shall, together with such payment,
also

 

18

 

reimburse VEW for VEW’s actual
costs of conducting the audit that disclosed such discrepancy, up to a maximum
of Ten Thousand Dollars ($10,000).

 

9.                                      Marketing.

 

(a)                                  Minimum
Advertising Commitment.  Subject to
Paragraphs 9(b), 9(c), 9(d), 9(e), 9(g), 9(h), 9(i), 9(j), 9(k) and 9(l),
Syratech shall expend the Advertising Commitment for the Term as follows:

 

(i)                                     In an amount to be
determined by the Parties in accordance with the terms of this Agreement, but
in no event less than One Hundred Twelve Thousand Five Hundred Dollars
($112,500) in Year One (unless the Packaging Budget is expended in Year Two in
accordance with Paragraph 9(i) below);

 

(ii)                                  One Million Dollars
($1,000,000) in Year Two;

 

(iii)                               One Million Dollars
($1,000,000) in Year Three;

 

(iv)                              One Million Dollars
($1,000,000) in Year Four;

 

(iv)                              One Million Dollars
($1,000,000) in Year Five; and

 

(v)                                 One Million Dollars
($1,000,000) in Year Six.

 

Notwithstanding the foregoing,
the Advertising Commitment shall equal, and Syratech shall expend, the greater
of One Million Dollars ($1,000,000) or three and one-quarter percent (3.25%) of
Net Wholesale Sales each Contract Year beginning with Year Two; provided,
however, that if three and one-quarter percent (3.25%) of Net Wholesale Sales
for such Contract Year exceeds One Million Dollars ($1,000,000), then Syratech
shall expend such excess amount (the “Excess”) during the immediately
subsequent Contract Year as part of the Advertising Commitment for such
subsequent Contract Year set forth above. 
For example and for the avoidance of doubt, if three and one-quarter
percent (3.25%) of Net Wholesale Sales at the end of Year Two equals One
Million One Hundred Thousand Dollars ($1,100,000) then Syratech shall expend an
additional One Hundred Thousand Dollars ($100,000) as the Advertising
Commitment in Year Three for a total Advertising Commitment in Year Three of
One Million One Hundred Thousand Dollars

 

19

 

($1,100,000).  If at the end of Year Six there is an
Excess, and the Parties agree to extend the Agreement beyond the Term in
accordance with Paragraph 6(b) above, Syratech shall expend the Excess for Year
Six in the first year or partial year of such extension in addition to and as
part of the Advertising Commitment for such year or partial year.

 

(b)                                 Portfolio
Fee.  During the Term Syratech shall
pay VEW a Portfolio Fee as follows:  (i)
Fifty Thousand Dollars ($50,000) in Year One payable as follows: Sixteen
Thousand Six Hundred Sixty Six Dollars and Sixty Seven Cents ($16,666.67) on or
before April 1, 2003 and Sixteen Thousand Six Hundred Sixty Six Dollars and
Sixty Six Cents ($16,666.66) on or before each of July 1, 2003 and October 1,
2003; and (ii) One Hundred Thousand Dollars ($100,000) for each Contract Year
thereafter payable as follows: Twenty Five Thousand Dollars ($25,000) in equal
calendar quarterly payments on or before January 1, April 1, July 1 and October
1 of each Contract Year.  Syratech may
deduct the Portfolio Fee actually paid to VEW during any Contract Year from the
Advertising Commitment to be expended by Syratech during the same Contract
Year.  VEW shall use reasonable efforts
to provide Syratech with up to five (5) complimentary guest passes to all
fashion and/or charity events produced and/or sponsored by VEW; it being
acknowledged and agreed that (i) VEW shall have no obligation to provide any
such guest passes to fashion and/or charity events if in VEW’s reasonable
opinion attendance at such events must be limited (e.g., the event is solely
for fashion magazine editors, etc.); and (ii) in any event VEW’s failure to
provide such guest passes shall not be deemed a breach of this Agreement.  VEW has the right to acknowledge its
licensees as sponsors at any fashion and/or charity event, at VEW’s
discretion.  If VEW chooses to
acknowledge Syratech as a sponsor of any such fashion and/or charity event, VEW
shall acknowledge Syratech as a sponsor of such fashion and/or charity event on
comparable terms as VEW accords any other comparable licensee of VEW sponsoring
such fashion and/or charity event.

 

(c)                                  Public
Relations Fee.  During the Term
Syratech shall pay VEW a PR Fee payable as follows:

 

(i)                                     In Year One,
Syratech shall pay VEW Twenty Five Thousand Dollars ($25,000) on July 1, 2003;

 

(ii)                                  In Year Two, Syratech
shall pay VEW Fifty Thousand Dollars ($50,000) in equal calendar quarterly
payments of Twelve

 

20

 

Thousand Five Hundred Dollars ($12,500) each
on or before January 1, 2004, April 1, 2004, July 1, 2004 and October 1, 2004;

 

(iii)                               In Year Three, Syratech
shall pay VEW Fifty Two Thousand Five Hundred Dollars ($52,500) in equal
calendar quarterly payments of Thirteen Thousand One Hundred Twenty Five
Dollars ($13,125) each on or before January 1, 2005, April 1, 2005, July 1,
2005 and October 1, 2005;

 

(iv)                              In Year Four, Syratech
shall pay VEW Fifty Five Thousand One Hundred Twenty Five Dollars ($55,125) in
equal calendar quarterly payments of Thirteen Thousand Seven Hundred Eighty One
Dollars and Twenty Five Cents ($13,781.25) each on or before January 1, 2006,
April 1, 2006, July 1, 2006 and October 1, 2006;

 

(v)                                 In Year Five, Syratech
shall pay VEW Fifty Seven Thousand Eight Hundred Eighty One Dollars ($57,881)
in equal calendar quarterly payments of Fourteen Thousand Four Hundred Seventy
Dollars and Twenty Five Cents ($14,470.25) each on or before January 1, 2007,
April 1, 2007, July 1, 2007 and October 1, 2007; and

 

(vi)                              In Year Six, Syratech
shall pay VEW Sixty Thousand Seven Hundred Seventy Five Dollars ($60,775) in
equal calendar quarterly payments of Fifteen Thousand One Hundred Ninety Three
Dollars and Seventy Five Cents ($15,193.75) each on or before January 1, 2008,
April 1, 2008, July 1, 2008 and October 1, 2008.

 

Syratech may deduct the PR Fee
actually paid to VEW during any Contract Year from the Advertising Commitment
to be expended by Syratech during the same Contract Year.

 

(d)                                 Public
Relations Expenses.

 

(i)                                     During the Term
Syratech shall pay VEW PR Expenses payable as follows:  In Year One, Syratech shall pay VEW Twelve
Thousand Five Hundred Dollars ($12,500) on July 1, 2003.  For each

 

21

 

Contract Year during the Term thereafter,
Syratech shall pay VEW Twenty Five Thousand Dollars ($25,000) in equal calendar
quarterly payments of Six Thousand Two Hundred Fifty Dollars ($6,250) each on
or before January 1, April 1, July 1 and October 1 of each Contract Year.

 

(ii)                                  Upon Syratech’s prior
written request at the end of any Contract Year, VEW shall provide Syratech
with reasonable documentation substantiating the aggregate dollar amount of its
expenditures in connection with public relations activities promoting the
Licensed Property (alone and/or together with other Vera Wang branded products)
during such Contract Year.  VEW shall
not use more than Five Thousand Dollars ($5,000) of the PR Expenses to pay for
any single item without Syratech’s prior written approval.  To the extent such documentation indicates
that such expenditures are less than the PR Expenses actually paid to VEW
during such Contract Year, Syratech shall have the right to credit the difference
against the portion of the Advertising Commitment to be expended by Syratech
during the immediately succeeding Contract Year pursuant to Paragraphs 9(f) and
9(g).   Without limitation of the
foregoing, Syratech may credit the PR Expenses actually paid to VEW during each
Contract Year against the Advertising Commitment to be expended by Syratech
during the same Contract Year.

 

(e)                                  Advertising
Expenses.

 

(i)                                     During the Term
Syratech shall pay VEW Advertising Expenses payable as follows:  Beginning with Year Two, for each Contract
Year during the Term, Syratech shall pay VEW Twenty Five Thousand Dollars
($25,000) in equal calendar quarterly payments of Six Thousand Two Hundred
Fifty Dollars ($6,250) each on or before January 1, April 1, July 1 and October
1 of each Contract Year.  For the avoidance
of doubt the Parties acknowledge that no Advertising Expenses will be payable
to VEW in Year One.

 

22

 

(ii)                                  Upon Syratech’s prior
written request at the end of any Contract Year, VEW shall provide Syratech
with reasonable documentation substantiating the aggregate dollar amount of its
expenditures in connection with advertising and promoting the Licensed Property
(alone and/or together with other Vera Wang branded products) during such
Contract Year.  VEW shall not use more
than Five Thousand Dollars ($5,000) of the Advertising Expenses to pay for any
single item without Syratech’s prior written approval.  To the extent such documentation indicates
that such expenditures are less than the Advertising Expenses actually paid to
VEW during such Contract Year, Syratech shall have the right to credit the
difference against the portion of the Advertising Commitment to be expended by
Syratech during the immediately succeeding Contract Year pursuant to Paragraphs
9(f) and 9(g).   Without limitation of
the foregoing, Syratech may credit the Advertising Expenses actually paid to
VEW during each Contract Year against the Advertising Commitment to be expended
by Syratech during the same Contract Year.

 

(f)                                    Cooperative
Advertising.  Subject to Paragraph
9(j), during the Term Syratech’s Coop Ad Spend shall be a minimum of Five
Percent (5%) of Net Wholesale Sales per year. 
The Coop Ad Spend shall be payable directly by Syratech to High-End
Stores that distribute or sell the Licensed Property to the general
public.  Syratech shall cause the
High-End Stores to produce and disseminate to the general public a reasonable
amount of cooperative advertising, marketing and/or promotion of the Licensed
Property in exchange for receiving a portion of the Coop Ad Spend.  Syratech shall (i) use all commercially
reasonable efforts to ensure that such cooperative advertising is consistent
with the high prestige luxury status and first-class quality associated with
the Vera Wang brand and VEW and (ii) require any third party recipient of any
portion of the Coop Ad Spend pursuant to this Paragraph to immediately withdraw
and refrain from any such cooperative advertising in response to a reasonable
and good faith objection to such cooperative advertising by VEW.  Notwithstanding any contrary provision of
this Agreement, Syratech shall provide VEW with so-called “advertising slicks”
of such cooperative advertising for VEW’s prior written approval with respect
to all aspects of the use and/or exploitation of the Trademark in connection
with the cooperative advertising of the Licensed Property, and Syratech shall
use all commercially reasonable

 

23

 

efforts to cause all retailers
of the Licensed Property to use only such advertising slicks as are mutually
approved by the Parties.

 

(g)                                 Photography/Production/Media
Budget.   Subject to Paragraph 9(j),
during the Term Syratech shall expend the Photography/Production/Media Budget
as follows: (i) Seven Hundred Seventy Five Thousand Dollars ($775,000) in Year
Two; (ii) Seven Hundred Ninety Seven Thousand Five Hundred Dollars ($797,500)
in Year Three; (iii) Seven Hundred Ninety Four Thousand Eight Hundred Seventy
Five Dollars ($794,875) in Year Four; (iv) Seven Hundred Ninety Two Thousand
One Hundred Nineteen Dollars ($792,119) in Year Five; and (v) Seven Hundred
Eighty Nine Thousand Two Hundred Twenty Five Dollars ($789,225) in Year
Six.  Syratech shall (A actively, regularly
and meaningfully consult with VEW with respect to all expenditures of the
Photography/Production/Media Budget and (B) use the
Photography/Production/Media Budget only to advertise in high-end prestige
magazines (such as  InStyle or Vogue) that are approved by VEW.  Notwithstanding any contrary provision of
this Agreement, any advertising in audio, audio-visual or other media shall be
subject to the mutual approval of the Parties, subject to VEW’s final approval
rights over all creative aspects of any such advertising.  Syratech may credit the
Photography/Production/Media Budget actually expended by Syratech during each
Contract Year in accordance with this Agreement against the Advertising
Commitment to be expended by Syratech during the same Contract Year.

 

(h)                                 Launch
Budget.  Syratech shall expend the
Launch Budget solely in connection with the Launch in a manner mutually
approved by the Parties, provided that, in the event the Parties disagree,
(i) VEW’s decision shall control with respect to all creative aspects of
the Launch (including, without limitation, the locations, guest lists, catering
and other matters relating to any event in connection with the Launch), and
(ii) Syratech’s decision shall control with respect to the financial and other
non-creative aspects of such Launch. 
The Parties will endeavor in good faith to reach a compromise if and
when the creative and financial aspects conflict with one another.  The Launch Budget shall be non-refundable
and non-recoupable against Royalties. 
Notwithstanding the foregoing, if the Parties mutually agree that
Syratech shall manage some or all of the Launch, all aspects of the Launch and
all expenditures of the Launch Budget shall be subject to VEW’s prior written
approval, not to be unreasonably denied. 
Syratech may deduct the Launch Budget actually paid to VEW during the
Contract Year in which the Launch occurs from the Advertising Commitment to be
expended by Syratech during such Contract Year.

 

24

 

(i)                                     Packaging
Budget.  Syratech shall spend the
Packaging Budget during Year One or, solely if mutually agreed to by the
Parties, in Year Two.  If the Packaging
Budget is spent in Year One, Syratech may deduct the Packaging Budget from the
Advertising Commitment to be expended by Syratech in Year One.  If the Packaging Budget is spent in Year
Two, Syratech may not deduct the Packaging Budget from the Advertising
Commitment to be expended by Syratech in Year Two.  All expenditures of the Packaging Budget shall be subject to the
mutual approval of the Parties, provided that, in the event the Parties
disagree, (i) VEW’s decision shall control with respect to all creative
aspects of packaging for the Licensed Property and (ii) Syratech’s decision
shall control with respect to the financial and other non-creative aspects of
such packaging.  The Parties will
endeavor in good faith to reach a compromise if and when the creative and
financial aspects conflict with one another. 
Notwithstanding the foregoing, if VEW incurs any costs or expenses in
connection with designing and packaging for the Licensed Property, Syratech
shall reimburse VEW for such actual costs and expenses and may use the
Packaging Budget for such reimbursement.

 

(j)                                     Guidelines
and Adjustments.  Notwithstanding
any contrary provision of this Paragraph 9, but provided Syratech pays VEW the
Portfolio Fee, the PR Fee, the PR Expenses and the Advertising Expenses as
required herein, the Parties acknowledge and agree that the amounts Syratech is
required to expend pursuant to Paragraphs 9(f), 9(g), 9(h) and 9(i) (the
“Targeted Amounts”) are intended to be guidelines and that the amounts actually
expended pursuant to such clauses may be more or less than the Targeted
Amounts, subject to the following:

 

(i)                                     The Coop Ad Spend
during any Contract Year shall in no event be less than five percent (5%) of
the projected Net Wholesale Sales for such Contract Year;

 

(ii)                                  Any expenditures with
respect to the Photography/Production/Media Budget, the Launch Budget and/or
the Packaging Budget that are materially greater than or less than the
applicable Targeted Amount shall be subject to the mutual approval of the
Parties; and

 

(iii)                               Each Contract Year
Syratech shall expend the entire portion of the Advertising Commitment
applicable to such Contract Year.

 

25

 

(k)                                  Advertising,
Media, Marketing and Public Relations Plans.

 

(i)                                     The Parties shall
collaborate with each other to (A) create annual advertising budgets and media,
marketing and public relations plans for the Licensed Property (which budgets
and plans shall conform to mutually agreed business standards applicable to the
markets for the Licensed Property in the Territory (and, if applicable, the
markets for the Licensed Property in any Foreign Territory for which VEW
licenses Syratech the right to exploit the Licensed Property pursuant to this
Agreement) and be consistent with the prestige luxury status of the Trademarks)
and (B) select outside advertising and/or public relations agencies to be
retained in connection with the development and/or implementation of such
budgets and plans.  In the event the
Parties disagree with respect to the creation, development and/or
implementation of any such budgets and plans, (i) VEW’s decision shall
control with respect to all creative aspects of such budgets and plans,
including, without limitation, the selection of persons actually providing
creative services (e.g., photographers, artists, copywriters, etc.) and all
advertisements and marketing and public relations materials and events, and
(ii) Syratech’s decision shall control with respect to all the financial and
all the other non-creative aspects of such budgets and plans, including,
without limitation, media buys and the allocation of funds for media
production.  The Parties will endeavor
in good faith to reach a compromise if and when the creative and financial
aspects conflict with one another.

 

(ii)                                  (A) All advertising
campaigns and all advertising, marketing, public relations and promotional
materials and (B) the implementation of all advertising campaigns, the
placement of all advertisements and the execution of public relations and
promotional events, shall be consistent with the prestige luxury status of the
Trademarks and the Vera Wang brand, and all creative aspects thereof shall be
subject to VEW’s approval.

 

26

 

(l)                                     Creative
Services.

 

(i)                                     The advertising
agencies to be used to provide creative services in connection with advertising
and promoting the Licensed Property shall (A) have substantial and meaningful
experience providing creative services in connection with advertising and
promoting products sold by or on behalf of prestige luxury designers and/or
brands and (B) be subject to the mutual approval of the Parties.  Syratech shall bear and be responsible for
all fees, costs and expenses payable or reimbursable to any such advertising
agencies, and, provided that all such fees, costs and expenses are in
accordance with an advertising budget mutually approved by the Parties in
accordance with Paragraph 9(k)(i), Syratech shall be entitled to deduct such
fees, costs and expenses actually paid to such advertising agencies during any
Contract Year (solely to the extent such fees, costs and expenses directly pertain
to advertising and promotion of the Licensed Products) from the Advertising
Commitment to be expended by Syratech during the same Contract Year.

 

(ii)                                  Notwithstanding any
contrary provision of this Agreement the Parties may mutually agree to use
VEW’s own in-house creative services department provide creative services in
connection with the creation and development of advertising and/or promotional
materials, including, without limitation, consumer advertising, product videos,
press kits, media purchases and web-site development and maintenance.  If VEW so chooses to use its own in-house
creative services department, the Parties acknowledge and agree that (A)
Syratech shall pay VEW for all its costs and expenses in connection with
providing services and creating materials hereunder plus a fee of eighteen
percent (18%) of all such costs and expenses and (B) Syratech shall be entitled
to deduct such monies paid to VEW pursuant to this Paragraph 9(l)(ii) during
any Contract Year from the Advertising Commitment to be expended by Syratech
during the same Contract Year.

 

27

 

10.                               Gifts
and VEW Purchases; Statement Pieces; Samples and Prototypes.

 

(a)                                  During
each Contract Year of the Term, Syratech shall provide VEW (at no cost to VEW)
with items of the Licensed Property as and when requested by VEW for VEW’s
non-resale use in connection with gifts for celebrities and the press.  The aggregate costs of the items provided to
VEW pursuant to this Paragraph 10(a) shall not exceed Fifteen Thousand Dollars
($15,000) per Contract Year based on Syratech’s actual wholesale price less
forty percent (40%) without Syratech’s prior approval.  In addition, VEW shall have the right to
purchase additional items of the Licensed Property for VEW’s non-resale
purposes at prices equal to Syratech’s actual wholesale price less forty
percent (40%).

 

(b)                                 The
Parties agree to collaborate in connection with the design and manufacturing of
so-called “inspirational pieces” to be showcased and used for editorial and
promotional purposes.  The number of,
designs and costs of such inspirational pieces shall be subject to the mutual
approval of the Parties.

 

11.                               Approvals
and Responsibilities.

 

(a)                                  General.  Except as expressly set forth in this Agreement
(including, without limitation, as set forth in Paragraph 11(b)), Syratech
shall be solely responsible for all obligations (financial, legal and
otherwise) in connection with the design, manufacture, distribution, sale,
advertising, promotion and/or other exploitation of rights in the Licensed
Property.

 

(b)                                 Design
and Manufacturing.  VEW and Syratech
shall collaborate with respect to all aspects of merchandising and product
development for the Licensed Property in order to take maximum advantage of each
Party’s expertise, provided that all aspects of the design of the Licensed
Property shall be subject to VEW’s approval, and Syratech shall not manufacture
any pre-production sample, production sample or item of Licensed Property
hereunder without VEW’s approval. 
Subject to the immediately preceding sentence, the design and
manufacturing process hereunder with respect to items of Licensed Property
shall be as follows:

 

(i)                                     Designs;
Pre-Production Samples.  During each
Contract Year, (A) VEW shall provide Syratech with designs for the Licensed

 

28

 

Property, (B) Syratech shall have the right,
but not the obligation, to provide VEW with its own designs for the Licensed
Property for VEW’s approval and (C) either Party may provide the other Party
with suggestions for additions and/or other changes.  If VEW provides its approval of the design of any item of the
Licensed Property (whether designed by VEW or designed by Syratech in
accordance with this Paragraph 11(b)) Syratech shall produce a pre-production
sample of such item that conforms in all material respects to the design
approved by VEW for such item, and Syratech shall submit such pre-production
sample to VEW for VEW’s approval.

 

(ii)                                  Production
Samples; Manufacture.  If VEW
approves the pre-production sample of any item of the Licensed Property,
Syratech shall manufacture a production sample that conforms in all material
respects to the approved pre-production sample for such item and submit such
production sample to VEW for VEW’s approval before proceeding to the
large-scale manufacture, distribution and/or sale of such item of the Licensed
Property as permitted hereunder.  VEW
will consider each production sample submitted hereunder in good faith; provided
that VEW is under no obligation to approve any minimum number of production
samples.  If VEW approves a production
sample of any item of the Licensed Property, all units of such item of the
Licensed Property manufactured, distributed, sold and/or otherwise exploited
pursuant to this Agreement shall conform in all material respects to the
approved production sample for such item (i.e. other than incidental changes
which do not materially alter the design).

 

(c)                                  Packaging.  Subject to VEW’s approval and ownership
rights set forth herein, Syratech shall be responsible for all obligations
(financial, legal and otherwise) in connection with designing and producing the
packaging for the Licensed Property. 
All aspects of the packaging materials for the Licensed Property,
including, without limitation, the costs thereof, shall be reasonably
consistent with the prestige luxury status of the VEW brand and other VEW
packaging.  All packaging for the
Licensed Property shall be subject to the mutual approval of the Parties,
provided that in the event the Parties disagree,  (i) VEW’s decision shall control with respect to all
creative aspects of 

 

29

 

packaging for the Licensed
Property and (ii) Syratech’s decision shall control with respect to all the
financial and all the other non-creative aspects of such packaging.  The Parties will endeavor in good faith to
reach a compromise if and when the creative and financial aspects conflict with
one another.  Without limitation of the
foregoing, Syratech shall regularly and meaningfully consult with VEW and seek
VEW’s input in connection with the design and manufacture of such packaging,
including, without limitation, creating and revising proposed packaging designs
for the Licensed Property based on Syratech’s and/or VEW’s ideas and
recommendations and submitting such designs to VEW in reasonable advance time
for VEW to exercise its approval rights hereunder in accordance with Syratech’s
reasonable production schedule and until such time as any packaging design is
finally approved.

 

(d)                                 Approvals.  With respect to any instance in which VEW’s
approval is required hereunder, (i) such approval shall only be valid if it is
given in advance and in writing, (ii) VEW shall seek to exercise its approval
rights within a reasonable time period after its receipt of a request therefor
and (iii) in instances where VEW does not provide its approval, it shall inform
Syratech of the basis for VEW’s disapproval. 
Notwithstanding any contrary provision of this Agreement and without
limitation of any other approval rights of VEW hereunder, (i) Syratech shall
not manufacture, distribute and/or sell any item of the Licensed Property
without VEW’s prior written approval thereof, (ii) all advertising, marketing,
promotion and publicity in connection with the Licensed Property shall be
subject to VEW’s prior written approval, (iii) VEW shall have prior written
approval in its sole and absolute discretion over all aspects of the use and/or
exploitation of the Trademarks, whether or not used in connection with the
Licensed Property and/or in connection with the marketing, advertising and/or
promoting of the Licensed Property and (iv) if VEW does not grant or deny any
approval within ten (10) business days after its receipt of Syratech’s request
therefor, such request shall be deemed disapproved.

 

(e)                                  Personal
Appearances.

 

(i)                                     During the Term,
VEW shall cause Vera E. Wang to be available for up to five (5) days per
Contract Year (including travel days and in no event for more than three (3)
consecutive days) for Personal Appearances. 
Notwithstanding any contrary provision of this Agreement, Vera E. Wang’s
failure to make any particular Personal Appearance shall not be a breach of
this Agreement so

 

30

 

long as she is actually available for up to
five (5) days per Contract Year during the Term to make Personal Appearances
pursuant to this clause (i).

 

(ii)                                  With respect to each
Personal Appearance, Syratech shall, at VEW’s option, pay or reimburse VEW for
first-class round-trip airfare, separate first-class hotel accommodations and
private and exclusive ground transportation for each of Vera E. Wang and Chet
Hazzard, and round-trip airfare (coach class for domestic flights; business
class for international flights), hotel accommodations and ground
transportation, approved in advance by Syratech, for all other personnel
required by VEW for purposes of each such Personal Appearance.

 

(f)                                    Performance
of Obligations; Syratech Representatives. 
Syratech shall at all times perform all its obligations hereunder and
otherwise conduct itself in a first-class manner consistent with the prestige
luxury status of the Vera Wang brand. 
Upon execution of this Agreement, Syratech agrees to assign one (1)
dedicated marketing manager to work exclusively with VEW and third parties on
matters relating to this Agreement who shall be an executive of Syratech with
significant experience in prestige luxury flatware, prestige luxury silver gift
products and other luxury goods.  The
marketing manager shall oversee the strategic plans for the Licensed Property,
including without limitation, the development and implementation of strategic
initiatives, advertising, marketing and sales plans, etc.  VEW may in good faith request that Syratech
replace the dedicated marketing manager assigned pursuant to this Paragraph
11(f), and, upon such request, Syratech shall assign a new person to serve as
the dedicated marketing manager subject to the foregoing qualifications set
forth in this Paragraph 11(f).  Syratech
shall also, at its own cost and expense, (i) make one (1) or more persons
(subject to VEW’s reasonable approval) available to work with VEW’s staff and
representatives for the purpose of educating Syratech with respect to the image
and status of the Vera Wang brand and the Trademarks and the building and
maintenance of such image and status in the Territory through exploitation of
the Licensed Property, and (ii) participate in not less than two (2) design
meetings relating to the Licensed Articles and Licensed Property during each
Contract Year.  VEW agrees to assign one
(1) executive who is dedicated to the home or decoration markets to work
non-exclusively with Syratech and third parties on matters relating to this
Agreement.

 

31

 

(g)                                 Compliance
with Human Rights and Labor Standards. 
Syratech represents and warrants that the development, manufacture,
distribution, sale, advertising, promotion and/or other exploitation of the
Licensed Property shall in each instance be in accordance with all applicable
federal, state, provincial, local, and municipal laws, orders and
regulations.  Syratech shall require all
third parties providing services and/or materials to Syratech to sign a
Certification of Compliance in the form attached hereto as Schedule C with
respect to human rights and labor standards, and Syratech shall immediately
terminate any such third parties providing services to Syratech upon ascertaining,
whether through VEW or otherwise, that any such third parties are not in
compliance with such human rights and/or labor standards.  VEW may, upon reasonable prior written
notice, require the inspection of the manufacture of the Licensed Property and
Syratech’s facilities and of any other persons or entities (each a
“Manufacturer”) engaged in manufacturing or supplying Licensed Property.  The parties hereby agree that such
inspection shall be performed at Licensor’s sole expense by an independent
inspector who (i) is approved by each of the Parties, such approval not to be
unreasonably delayed or denied; and (ii) agrees to enter into a confidentiality
provision which adheres to the confidentiality provisions set forth in this
Agreement.  VEW shall have the right to
refuse approval of any items of Licensed Property manufactured by a
Manufacturer that such third party independent inspector determines were not
made in accordance with the human rights and labor standards described in
Schedule C; in which case Syratech shall reimburse VEW for VEW’s actual costs
of conducting such third party inspection, including the costs and expenses of
such independent inspector, up to a maximum of Fifteen Thousand Dollars
($15,000).

 

(h)                                 Inspections.  VEW and/or its duly authorized
representatives shall have the right, during the Term during normal business
hours and upon reasonable prior notice, to inspect the facilities utilized by
Syratech or its sub-licensees or affiliates in connection with the manufacture
of the Licensed Property and to examine items of the Licensed Property in
process of manufacture, including, without limitation, to certify compliance
with all trademark, copyright, human rights and labor (including, without
limitation, child labor) and environmental laws, rules, regulations and ethical
standards.

 

12.                               Costs
and Expenses.

 

The Parties
shall have mutual approval over all costs and expenses not otherwise provided
for herein to be incurred in connection with the design, manufacture,
production, distribution, sale, advertising and promotion of the Licensed
Articles and the

 

32

 

Licensed Property, including,
without limitation, all costs and expenses to be incurred by VEW arising out of
actions undertaken by or on behalf of VEW at Syratech’s request, including,
without limitation, services, materials, travel and accommodations; provided
that Syratech shall be solely responsible (financially, legally and otherwise)
for all such costs and expenses. 
Syratech shall pay all costs and expenses incurred by VEW pursuant to
this Paragraph within thirty (30) days after VEW’s submission of bills to
Syratech for such costs and expenses.

 

13.                               Restrictions
on Use.

 

(a)                                  Syratech
shall not, and shall contractually obligate any third parties with whom
Syratech enters any agreements in connection with the development, manufacture,
distribution, sale, advertisement, promotion and/or other authorized use of the
Licensed Property hereunder not to, use nor cause, authorize or permit any use
of the Trademarks, the Licensed Articles, the Licensed Property and/or any
component of any of the foregoing for any purpose not expressly authorized
hereunder.  For the avoidance of doubt,
other than with respect to the distribution and sale of Closeout Licensed
Property to Closeout Customers, Syratech shall not, and shall have no right to,
engage in any distribution or sales of the Licensed Property to consumers other
than to High-End Stores.

 

(b)                                 Syratech
acknowledges and agrees that: (i) VEW exclusively retains all authority to
control and owns all right, title and interest, including, without limitation,
all copyrights, trademarks and other rights therein (and all renewals and
extensions thereof), throughout the universe in perpetuity in and to (A) all
proprietary elements incorporated into the Licensed Property which belonged to
VEW prior to such incorporation; (B) the Trademarks, and all designs (other
than generic designs), logos, packaging and/or other materials that incorporate
the Trademarks, including, without limitation, the Licensed Property; and (C)
all trademarks created in connection with the Licensed Property other than to
the extent such new trademarks incorporate the trademarks “Syratech”,
including, without limitation, in connection with individual items of the
Licensed Property (all items set forth in clauses (A), (B) and (C) above are
collectively referred to hereafter as the “VEW Licensed Names”); (ii) all use
by Syratech of the VEW Licensed Names shall inure solely to VEW’s benefit; and
(iii) Syratech will obtain no proprietary or other rights in or to the VEW
Licensed Names by virtue of such incorporation, any use or exploitation
Syratech may make thereof or any other reason whatsoever.

 

33

 

(c)                                  Syratech
will exploit and display the VEW Licensed Names only in such form or manner as
shall be specifically approved in advance in writing by VEW.  Syratech recognizes the great value of the
publicity and good will associated with the VEW Licensed Names and acknowledges
that such good will belongs exclusively to VEW.  Syratech acknowledges and agrees that all use of the VEW Licensed
Names affect the image and goodwill associated with VEW, its businesses and
activities.  Syratech shall obtain VEW’s
prior written approval with respect to any activities hereunder relating to or
affecting the VEW Licensed Names and/or any other VEW-owned intellectual
property or goodwill for purposes of quality control and shall only use such
material in connection with Syratech’s rights pursuant to this Agreement.

 

(d)                                 Syratech
shall not use any name or names in connection with the Trademarks in any
advertising, publicity, labeling, packaging or printed matter of any kind
utilized by Syratech in connection with the Licensed Property except for
Syratech’s trade names and trademarks set forth on Schedule D hereto or  that are approved by VEW in advance in
writing to indicate that Syratech is selling the Licensed Property under the
Trademarks or as may otherwise be required by law or governmental rule or
regulation.  Syratech shall cause such
legends, markings and notices as VEW shall reasonably require to appear on all
units of the Licensed Property (and/or any tags, labels, containers, packaging
and the like used in connection therewith) for trademark, copyright, product
liability and/or other purposes. 
Notwithstanding the foregoing, VEW agrees that Syratech exclusively
retains all authority to control and owns all right title and interest to the
trademarks “Syratech”, “Wallace” and “Towle” to the extent Syratech owns such
trademarks as of the date of this Agreement.

 

(e)                                  During
the Term, Syratech shall not solicit, negotiate, or enter any agreement with
any third party with respect to the design, production, manufacture,
distribution, sale, advertisement, promotion and/or other exploitation of
flatware or silver gifts related to any fashion designers who primarily design
luxury women’s bridal apparel, as set forth on Schedule E (each a “VEW
Competitor”) attached hereto and incorporated herein by this reference (or any
of their parent, subsidiary, affiliated or related entities).  Notwithstanding any contrary provision of
this Agreement, Syratech shall not be obliged to cancel or terminate, or cause
to be cancelled or terminated, any agreement that an affiliate or subsidiary of
Syratech, or entity acquired by Syratech after the date of execution of this
Agreement, other than any Syratech affiliate or subsidiary exercising rights
pursuant to this Agreement, may have entered into with any third party set
forth on Schedule E prior to the date of execution of this Agreement (provided
that

 

34

 

Syratech has notified VEW in
writing of all such agreements and the subject matter thereof (but not the
financial terms contained therein) prior to execution of this Agreement.); or,
in case of any entity acquired by Syratech, prior to the date of such
acquisition.

 

(f)                                    During
any Contract Year Syratech shall not manufacture quantities of any items of the
Licensed Property in excess of the amount of such item(s) Syratech in its good
faith business judgment (which Syratech shall substantiate to VEW upon VEW’s
request by means of supporting documentation, including, without limitation,
verifiable sales plans) reasonably anticipates it can sell to High End Stores
during such Contract Year.  Without
limitation of the foregoing, the Parties acknowledge that during any given
Contract Year, there may be quantities of the Licensed Property which Syratech
is unable to sell to High End Stores after the exercise of commercially
reasonable efforts.  In such event,
Syratech shall submit for approval by VEW a detailed written report setting
forth the unsold items of Licensed Property which Syratech desires to sell as
Closeout Licensed Property.  VEW shall
determine within fifteen (15) days after receipt of such report which items of
Licensed Property, if any, are approved for sale to Closeout Customers as
Closeout Licensed Property and shall notify Syratech of the same, in which case
such Closeout Licensed Property may be sold to Closeout Customers subject to
the terms and conditions set forth herein, including without limitation, the
payment of Royalties to VEW in accordance with Paragraph 4.  For those items of the Licensed Property
which are not approved by VEW as Closeout Licensed Property, Syratech shall, as
directed by VEW in its discretion, either (i) provide such Licensed Property to
VEW and/or any VEW owned or controlled retail store at a price to be mutually
agreed to by the Parties; provided that Syratech shall not be obligated to pay
VEW a royalty on any such sales of Licensed Property to VEW and/or any VEW
owned or controlled retail store; or (ii) dispose of such Licensed Property by
another means of liquidation to be agreed upon by the Parties in good
faith.  Notwithstanding anything to the
contrary contained herein, in no event shall Syratech have the right during any
Contract Year to sell or distribute more than twenty percent (20%) of the aggregate
amount of Licensed Property produced during such Contract Year as Closeout
Licensed Property.

 

(g)                                 Notwithstanding
section (f) above, it is expressly acknowledged and agreed that the twenty
percent (20%) limitation on Licensed Property shall not apply to Licensed
Property that is seasonal in nature (e.g., a silver Christmas ornament)
(“Seasonal Items”).  During the Term,
the schedule for the sale of Seasonal Items to Closeout Customers shall be
subject to the mutual approval of Syratech and VEW; it being acknowledged and

 

35

 

agreed that such schedule shall
permit Syratech to sell Seasonal Items as expeditiously as possible.

 

14.                               Sales
to VEW.

 

(a)                                  Upon
VEW’s request at any time during the Term, Syratech agrees to sell items of the
Licensed Property to VEW in the quantities and styles requested by VEW (for
resale by VEW in VEW owned or controlled retail stores) at wholesale prices for
such Licensed Property less a discount of twenty-two percent (22%).  VEW acknowledges and agrees that Syratech
shall not be obligated to sell items of the Licensed Property to VEW in any
Contract Year in amounts that are in excess of five percent (5%) of Syratech’s
projected Net Wholesale Sales for such Contract Year.

 

(b)                                 All
sales to VEW pursuant to this Paragraph 14 shall be included in Net Wholesale
Sales hereunder.

 

15.                               Syratech
Showroom.

 

Syratech shall
spend a maximum of One Hundred Thousand Dollars ($100,000) to build out a
dedicated portion of its showroom located in New York City (clearly separated
from the other parts of the showroom) and/or build a first-class showroom in
New York City that reflects the style and prestige luxury status of the Vera
Wang brand at a location selected by Syratech. 
Syratech shall be solely responsible for all costs and expenses in
connection with building and maintaining the showroom, including, without
limitation, the costs of furniture, fixtures and décor, subject to a budget to
be mutually agreed to by the Parties.

 

16.                               Ownership
Rights.

 

(a)                                  Syratech
hereby irrevocably acknowledges and agrees that Syratech’s services, the
results and proceeds thereof and any and all contributions made to the Licensed
Property, Trademarks and/or VEW Licensed Names by Syratech and/or its agents
and/or their respective employees, and all materials related to any of the
foregoing (collectively, the “Material”) shall be deemed “work made for hire”
specially ordered and commissioned by VEW pursuant to the United States
Copyright Act and all similar laws throughout the universe in perpetuity
(collectively, the “Act”).  The Material
includes,

 

36

 

without limitation, all
trademarks, designs, plans, specifications, information and marketing materials
designed and/or created in connection with the Licensed Articles, Licensed
Property, Trademarks and/or VEW Licensed Names, but excludes the molds and
tooling created, designed and /or used to develop and manufacture the Licensed
Property (the “Tooling”).

 

(b)                                 Syratech
irrevocably acknowledges and agrees that VEW is and shall be the exclusive
owner of all now or hereafter known or existing rights of every kind pertaining
to the Material, the Trademarks, all other VEW trademarks and all elements of
each of the foregoing, for all uses, whether now or hereafter known or
existing, in any and all languages, formats and media now or hereafter known or
existing, throughout the universe in perpetuity, including, without limitation,
all copyrights, trademarks and other rights therein (and all renewals,
extensions, restorations and additional periods of protection now recognized or
hereafter enacted) (collectively, the “Rights”).  If, despite the intentions of the Parties, the Material or any
portion thereof is not deemed “work-made-for-hire” for VEW under the Act,
Syratech hereby irrevocably grants, assigns and vests all the Rights in the
Material exclusively to VEW throughout the universe in perpetuity.  Syratech shall promptly execute any documents
reasonably requested by VEW in order to evidence, effectuate, protect and/or
enforce VEW’s rights under this Agreement. 
Upon Syratech’s failure to execute such documents within five (5) days
following VEW’s request therefor, Syratech hereby appoints VEW as its
attorney-in-fact authorized to execute such documents (it being understood that
such appointment is a power coupled with an interest and therefore irrevocable)
with full power of substitution and delegation.

 

(c)                                  Notwithstanding
any contrary provision of this Agreement, all right, title and interest in and
to any and all Syratech trademarks, and designs, plans, marketing and other
materials created by Syratech but not submitted to VEW or submitted but not
approved by VEW and not used in connection with the Licensed Property, and the
Tooling are and shall be owned by Syratech (the “Syratech Material”); provided,
however, that nothing contained herein shall grant Syratech the right to use
any Material, or the  Tooling, except as
expressly set forth herein during the Term. 
Nothing contained herein shall grant VEW the right to use any Syratech
Materials except in connection with Licensed Property or as otherwise approved
by Syratech.

 

(d)                                 VEW
has registered and/or shall register and maintain the Trademarks in the
Territory during the Term at VEW’s cost and expense, and Syratech shall
promptly

 

37

 

execute any and all documents
VEW deems necessary or advisable to effectuate or facilitate such
registrations.  The Parties shall
consult with each other before applying for patent protection in connection
with the Licensed Property during the Term.

 

(e)                                  Syratech
agrees, and shall cause its employees and agents to agree, to promptly inform
VEW of any use by any person or entity of any copyright, trademark,
servicemark, design, mark, name or other designation or proprietary right, that
is similar to or in any way resembles the Trademarks, the Licensed Property,
any component thereof or any proprietary right of VEW which comes to the
attention of Syratech.  VEW shall have
the sole right to determine whether or not any action shall be taken on account
of any infringement and Syratech shall join in such action or otherwise assist
and cooperate with VEW at VEW’s expense if VEW so requests.  Syratech may only take action with respect
to the Licensed Property with prior written approval from VEW.

 

17.                               Insurance.

 

(a)                                  At
all times commencing upon the execution of this Agreement and continuing for so
long as any item of or material relating to the Licensed Property is
manufactured, distributed, sold, advertised, promoted and /or otherwise
exploited by or on behalf of Syratech pursuant to this Agreement or throughout
the Term, whichever period is longer, Syratech shall maintain in full force and
effect (at its sole cost and expense) insurance coverage in connection with the
exercise of rights granted herein, including without limitation, comprehensive
general liability insurance for coverage against all forms of liability for
death or injury to any individual, and for loss or damage to property, and
including product liability insurance covering any product, material, component
or activity relating to the Licensed Property in the amount of at least Five
Million Dollars ($5,000,000) per occurrence and Ten Million Dollars
($10,000,000) in the aggregate; and such Workers Compensation and any other
insurance as is required pursuant to applicable state law (all such insurance
coverage collectively, the “Insurance”). 
The Insurance shall be placed with an insurer or insurers of recognized
worth and reputation, duly licensed to carry on the business of insurance
throughout the Territory and shall name Vera Wang, VEW and their respective
affiliated and related entities and each of their respective officers,
directors, shareholders (if any), members, employees, successors, assigns,
heirs, representatives and agents as additional named insureds.  Notwithstanding any other insurance which
VEW may obtain or maintain, the Insurance shall provide for a reasonable and
customary deductible for which Syratech shall be solely responsible and may
provide for (i) only reasonable and customary

 

38

 

exclusions, which shall not
exclude VEW or any of its affiliates, subsidiaries or related entities; and
(ii) primary coverage and not contributory coverage.  Syratech shall provide not less than thirty (30) days prior
written notice to VEW of cancellation, termination or modification of the
Insurance and shall also provide VEW with a certificate of insurance as
evidence of the Insurance prior to, or as soon as practicable after, the
execution hereof.

 

(b)                                 Syratech
shall have the right, but not the obligation, to purchase for its own account
(and at its sole cost and expense) a life insurance policy on the life of Vera
E. Wang in such form as it deems advisable and in connection therewith VEW
shall cause Vera E. Wang to submit to one (1) physical examination to be
conducted by Vera E. Wang’s personal physician, the results of which VEW shall
cause to be provided directly to the insurance company from whom Syratech
intends to purchase such insurance. 
Notwithstanding the foregoing, such insurance is not a condition to any
rights or obligations under this Agreement, and Syratech’s election not to
obtain or failure to obtain any such insurance (unless due to Vera E. Wang’s
failure to submit to a physical examination) shall not relieve Syratech of any
of its obligations hereunder.

 

18.                               Termination.

 

(a)                                  Without
limiting any other termination right available to VEW at law or in equity, this
Agreement may be immediately terminated by VEW if:

 

(i)                                     Syratech
materially breaches or is in default of this Agreement or otherwise fails to
perform its obligations hereunder and such material breach or default or failure
continues uncured for a period of thirty (30) days after written notice thereof
to Syratech.

 

(ii)                                  Syratech
files a petition in bankruptcy or is adjudicated bankrupt or a petition in
bankruptcy is filed against Syratech and is not dismissed within sixty (60)
days thereafter, or Syratech becomes insolvent or makes an assignment for the
benefit of creditors or files a petition or otherwise seeks relief under or
pursuant to any applicable federal, state or provincial bankruptcy, insolvency
or reorganization statute or procedure, or a custodian, receiver or trustee is
appointed for Syratech or a substantial portion of its business or assets (and
such receivership is not discharged within sixty (60) days thereafter).

 

39

 

(iv)                              Syratech
sells, transfers, encumbers, hypothecates, parts with possession of, assigns or
sub-licenses any rights licensed or granted to Syratech hereunder (or attempts
to do any of the foregoing) except as expressly permitted herein.

 

(v)                                 Syratech
and/or any of its key officers or directors is convicted of any felony.

 

(vi)                              Syratech
sells or attempts to sell all or substantially all of its stock and/or assets
to a third party that, in VEW’s reasonable opinion, after giving full effect to
such third party’s acquisition of Syratech’s stock or Syratech’s operations
and/or assets, will not, (A) have a significant presence in the prestige luxury
flatware and/or silver gift market; (B) continue Syratech’s prestige luxury
business; (C) perform Syratech’s obligations hereunder in a manner that is
consistent with the prestige luxury status of the Vera Wang brand; (D) have top
management in place with experience and credentials in the prestige luxury
flatware and/or silver gift industries comparable to the top management
currently in place at Syratech on the date of execution of this Agreement; or
(E) provide such top management that is satisfactory to VEW.

 

(vii)                           Syratech
(A) engages in a public offering of its stock and in connection therewith less
than fifty percent (50%) of Syratech’s top management (as of the date Syratech
completes such a public offering) fails to be employed by Syratech on the date
that is eighteen (18) months thereafter; (B) sells all or substantially all its
flatware or silver gift operations and/or other assets, or assigns or attempts
to assign this Agreement or any of its rights or obligations hereunder, to a
VEW Competitor, and/or (C) and/or any of its parent or holding companies enters
or seeks to enter a transaction to effect a consolidation or merger with, or
sale of fifty percent (50%) or more of the stock of Syratech to, any VEW
Competitor.

 

40

 

(b)                                 Without
limiting any other termination right available to Syratech at law or in equity,
this Agreement may be immediately terminated by Syratech if:

 

(i)                                     VEW
materially breaches or is in default of this Agreement and such material breach
or default continues uncured for a period of thirty (30) days after written
notice thereof to VEW.

 

(ii)                                  VEW
files a petition in bankruptcy or is adjudicated bankrupt or a petition in
bankruptcy is filed against VEW and is not dismissed within sixty (60) days
thereafter, or VEW becomes insolvent or makes an assignment for the benefit of
creditors or files a petition or otherwise seeks relief under or pursuant to
any applicable federal, state or provincial bankruptcy, insolvency or
reorganization statute or procedure, or a custodian, receiver or trustee is
appointed for VEW or a substantial portion of its business or assets (and such
receivership is not discharged within sixty (60) days thereafter).

 

(iii)                               VEW,
Vera E. Wang and/or Chet Hazzard is convicted of any felony.

 

(c)                                  Upon
termination of this Agreement for any reason whatsoever, (i) all rights licensed
to Syratech hereunder shall automatically revert to VEW for VEW’s use and
disposition, in its sole discretion, throughout the universe in perpetuity in
any and all languages, formats and media, whether now or hereafter known or
existing, with no further obligation whatsoever (financial, legal or otherwise)
to Syratech or any third party, (ii) Syratech shall immediately deliver all the
Material to VEW; and (iii) Syratech shall have the right solely during the
Sell-Off Period to continue selling and distributing its then-existing
inventory of Licensed Property to High-End Stores in the Territory and Closeout
Licensed Property to Closeout Customers in the Territory (it being acknowledged
and agreed that such right shall not apply if this Agreement is terminated in
accordance with Paragraph 18(a)(i) above). 
Upon expiration of the Sell-Off Period, or in the event this Agreement
is terminated by VEW in accordance with Paragraph 18(a)(i) above, Syratech
shall, as directed by VEW in its discretion, either (A) sell its then-existing
inventory of Licensed Property to VEW and/or any VEW owned or controlled retail
store at a price to be mutually agreed to by the Parties; or
(B) completely destroy its

 

41

 

then-existing inventory of
Licensed Property at its sole cost and expense and certify to VEW that it has
done so in a written sworn statement of an officer of Syratech delivered to VEW
within fifteen (15) days after VEW’s direction to Syratech to so destroy such items.  All sales of the Licensed Property (if any)
during the Sell-Off Period shall constitute Net Wholesale Sales hereunder, and
Syratech shall pay VEW Royalties with respect thereto in accordance with
Paragraph 4 above and shall account to VEW for such sales in accordance with
Paragraph 8 above.

 

(d)                                 Notwithstanding
Paragraph 18(c)(iii) above, with respect to Licensed Property in the category
of flatware, after expiration or termination of the Term, Syratech shall continue to manufacture, distribute
and sell such Licensed Property using the Tooling in order to fulfill lifetime
guarantees to customers for product fill-ins of such Licensed Property on a
special order basis (in accordance with Syratech’s standard warranty for
flatware applicable to all flatware manufactured by Syratech) and in order to
protect the goodwill of the Vera Wang brand. 
Syratech shall continue to pay Royalties to VEW on the sale and
distribution of such Licensed Property in accordance with Paragraph 4 above and
to account to VEW for such sales in accordance with Paragraph 8 above.  If at any time Syratech ceases to
manufacture, distribute and sell such Licensed Property for any reason,
Syratech shall sell all Tooling applicable to such Licensed Property to VEW or
a licensee of VEW, as directed by VEW in its discretion, at the fair market
value at that time for such Tooling as determined by an independent third party
mutually selected by the Parties.

 

19.                               Representations/Warranties/Covenants.

 

(a)                                  Syratech
hereby represents, warrants and covenants as follows:

 

(i)                                     Syratech has the
full legal power, right and authority to enter into this Agreement and to fully
perform the activities contemplated by this Agreement.

 

(ii)                                  The development,
manufacture, distribution, sale, advertising, promotion and/or exploitation of
the Licensed Articles, the Licensed Property, the Material and/or any materials
used in connection therewith (excluding the Trademarks and the VEW Licensed
Names), and/or the exercise of any rights licensed to Syratech hereunder, shall
not violate or infringe any law or the

 

42

 

rights of any person or entity.  All materials used in connection with the
Licensed Articles, the Licensed Property, the Trademarks, the Material and/or
the exercise of rights licensed to Syratech in the Licensed Property shall be
fully cleared by Syratech, at its sole cost and expense, as reasonably
necessary for such use.

 

(iii)                               This Agreement and all
documents required by this Agreement to be executed by Syratech shall be valid,
legally binding obligations of and enforceable against Syratech and its
successors, assigns and licensees.

 

(iv)                              Syratech is not subject
to any claims, liens, disabilities or restrictions that may affect its ability
to perform its obligations under this Agreement, and neither the execution and
delivery of this Agreement, nor the performance of the obligations set forth
herein, will or might  conflict with or
result in a breach of any of the terms, conditions or provisions of, or constitute
a default under, any contract, agreement, document or instrument to which
Syratech is a party.

 

(v)                                 In the event that any
item or material relating to the Licensed Property is claimed to be defective,
in breach of warranty or in need of service, or any claim relating to product
liability, Syratech shall assume all obligations, liability, cost and expenses
relating to such a claim and Syratech shall take all reasonable steps necessary
to maintain customer good will. 
Syratech acknowledges and agrees that VEW assumes no liability
whatsoever for defects, breach of warranty or any type of product liability
claim whatsoever regarding the Licensed Property.

 

(b)                                 VEW
hereby represents, warrants and covenants as follows:

 

(i)                                     VEW has the full
legal power, right and authority to enter into this Agreement and to fully
perform the activities contemplated by this Agreement.

 

43

 

(ii)                                  VEW is the sole owner
of the Trademarks in the Territory.  VEW
has the right to license to Syratech the rights to use the Trademarks as
expressly authorized herein.  Subject to
Syratech’s representations, agreements and indemnities hereunder, Syratech’s
use of the Trademarks (if any) solely as and to the extent expressly authorized
herein shall not violate or infringe any law or the rights of any person or
entity.

 

(iii)                               This Agreement and all
documents required by this Agreement to be executed by VEW shall be valid,
legally binding obligations of and enforceable against VEW and its successors,
assigns and licensees.

 

(iv)                              VEW is not subject to any
claims, liens, disabilities or restrictions that will materially affect its
ability to perform its obligations under this Agreement, and neither the
execution and delivery of this Agreement, nor the performance of the
obligations set forth herein, will conflict with or result in a material breach
of any of the terms, conditions or provisions of, or constitute a default
under, any contract, agreement, document or instrument to which VEW is a party.

 

(v)                                 All existing
agreements as of the date of this Agreement between VEW and its licensees for
the license of the Trademarks require such licensees (A) to pay VEW guaranteed
minimum royalties; and (B) (but for one agreement existing as of the date of this
Agreement) to pay guaranteed minimum royalties at the beginning of each payment
period under the applicable agreement.

 

(vi)                              VEW hereby represents
that all existing agreements as of the date of this Agreement between VEW and
its licensees for the license of other VEW products which include the concept
of “portfolio fees” provide that such “portfolio fees” are to be used by VEW in
its discretion and no such agreements provide the licensees with approval over
the use of such portfolio fees by VEW.

 

44

 

20.                               Indemnification.

 

(a)                                  Syratech
agrees to defend, indemnify and hold harmless VEW, its officers, directors,
members, shareholders (if any), agents, employees and representatives against
any claims, demands, judgments and lawsuits (including, without limitation,
reasonable outside attorneys’ fees and disbursements) (collectively, “Claims”)
arising out of any act or omission in connection with the development,
manufacture, purchase, promotion, advertising, distribution, use or sale of the
Licensed Property or any breach or alleged breach of Syratech’s
representations, warranties, covenants or agreements contained herein (each, a
“Syratech Covered Claim”).  VEW shall
notify Syratech within a reasonable time after it receives a notice of any such
Syratech Covered Claim and Syratech shall promptly assume VEW’s defense at
Syratech’s expense.

 

(b)                                 VEW
agrees to defend, indemnify and hold harmless Syratech, its officers,
directors, shareholders (if any), agents, employees and representatives against
any Claims for copyright, trade dress, and trademark infringement, unfair trade
practice or other claims arising solely out of VEW’s failure to own and
maintain during the Term the rights in and to the Trademarks and VEW Licensed
Names that VEW represents herein that VEW owns or any material breach of VEW’s
representations, warranties, covenants or agreements contained herein except to
the extent covered by Syratech’s indemnification of VEW set forth in Paragraph
20(a) (each, an “VEW Covered Claim”). 
Syratech shall notify VEW within a reasonable time after it receives
notice of any VEW Covered Claim and VEW shall promptly assume Syratech’s
defense at VEW’s expense.

 

(c)                                  The
indemnifying party shall have the right to control the defense of any Claim for
which it is obligated to indemnify the indemnified party, provided that the
indemnified party shall have the right to join in the defense of any such Claim
with counsel of its own choosing at its own expense.  The indemnified party shall reasonably cooperate with the
indemnifying party in the defense of any Claim.  The indemnifying party shall not settle any third party claim
without the indemnified party’s prior written consent unless the terms of such
settlement are for monetary damages only and release such indemnified party
from any and all liability with respect to such third party claim.

 

21.                               Non-Solicitation.

 

During the Term neither Party will solicit for employment or employ any
employee of the other Party or solicit or induce any employee of the other
Party to

 

45

 

terminate,
alter or lessen such individual’s affiliation with the other Party or to
violate the terms of any agreement with the other Party.

 

22.                               Assignment.

 

(a)                                  Syratech
may assign this Agreement to a third party that acquires all or substantially
all of the assets of Syratech or all or substantially all of Syratech’s
flatware and silver gift operations by way of merger, consolidation,
reorganization, asset sale or stock sale (collectively, a “Change of Control
Event”); provided that (i) any such assignment must be in writing; (ii) the
entity to which this Agreement is to be assigned is not and will not be in
violation of any of the provisions of Paragraph 18(a)(vi) above and will comply
therewith as if such provisions applied directly to it; and (iii) such entity
is not, and is not controlled by, does not control and is not under common
control with, a VEW Competitor.  Syratech
may not assign this Agreement or any right or obligation hereunder except
pursuant to a Change of Control Event to any person or entity without VEW’s
prior written consent in its discretion.

 

(b)                                 VEW
may sell, grant, license, assign, or otherwise transfer this Agreement or any
of VEW’s rights and/or obligations under this Agreement.  VEW shall notify Syratech in the event of
any such sale, grant, license, assignment or other transfer.

 

(c)                                  This
Agreement shall inure to the benefit of the Parties’ permitted successors and
assigns.

 

23.                               Choice
of Law.

 

This Agreement
shall be construed and enforced in accordance with laws of the State of New
York without reference to conflict of law principles.  The courts located in the County of New York, State of New York
(federal or state, as applicable) shall have exclusive jurisdiction over all
disputes arising hereunder.  VEW and
Syratech each hereby submit to the personal jurisdiction and venue of such
courts and agree that any necessary service of process will be effective if
sent by certified mail to the addresses set forth in Paragraph 26 hereof.  Such service will be deemed effective ten
(10) days after mailing.

 

46

 

24.                               No
Joint Venture.

 

Neither Party
shall be or shall be deemed to be an agent, employee, partner, joint employer
or joint venturer of, for or with the other Party.

 

25.                               Confidentiality.

 

Syratech shall
maintain in confidence, and shall not use, disclose, confirm or deny to any
third party, any information contained in this Agreement or any non-public
information learned about Vera Wang, VEW and/or any of VEW’s activities or
businesses as a result of the relationship contemplated herein, including,
without limitation, non-public customer and subscription lists, financial
information, artistic or business activities planned or scheduled in connection
with this Agreement, unless such information becomes known to the general
public, is required by law to be disclosed, is required to enforce this
Agreement or with the prior written approval of VEW.  Syratech shall notify VEW of any disclosure of such information
required by law and shall undertake its reasonable good faith efforts to
disclose only such information as is actually required by law to be disclosed.  VEW shall maintain in confidence, and shall
not use or disclose to any third party, any information contained in this
Agreement or any non-public information learned by VEW about Syratech and/or
any of Syratech’s activities or businesses as a result of the relationship
contemplated herein, including, without limitation, non-public customer and
subscription lists, financial information, artistic or business activities
planned or scheduled in connection with this Agreement, unless such information
becomes known to the general public, is required by law to be disclosed, is
required to enforce this Agreement, or with the prior written approval of
Syratech.  VEW shall notify Syratech of
any disclosure of such information required by law and shall undertake its
reasonable good faith efforts to disclose only such information as is actually
required by law to be disclosed.

 

26.                               Notices.

 

All notices
and statements under this Agreement shall be in writing and deemed effective
upon receipt, and shall be delivered by registered mail with return receipt, guaranteed
overnight courier or facsimile with electronic confirmation of receipt) as
follows:

 

47

 

	
  If to VEW:

  	
   

  	
  V.E.W., LTD.

  225 W. 39th Street

  New York, New York 10018

  Attention:  Chet Hazzard

  Facsimile No.:  212.391.7332

  
	
   

  	
   

  	
   

  
	
  With a copy
  to

  	
   

  	
  Grubman
  Indursky & Schindler, P.C.

  152 West 57th Street

  New York, New York 10019

  Attention: Lawrence Shire, Esq.

  Facsimile No.:  212.554.0444

  
	
   

  	
   

  	
   

  
	
  If to
  Syratech:

  	
   

  	
  Syratech
  Corporation

  175 McClellan Highway

  East Boston, Massachusetts 02128

  Attention:  Greg Hunt

  Facsimile No.: 617.568.1377

  
	
   

  	
   

  	
   

  
	
  With a copy
  to

  	
   

  	
  Paul, Weiss,
  Rifkind, Wharton & Garrison LLP

  1285 Avenue of the Americas

  New York, New York 10019

  Attention: Charles H. Googe, Jr., Esq.

  Facsimile No.: 212.373.2831

  

 

27.                               Announcement.

 

No announcement, press release or other
publicity concerning this Agreement shall be made or released except as
mutually approved by the Parties in advance in writing.

 

28.                               No
Waiver.

 

The waiver of any breach or default hereof or
non-performance hereunder shall not be deemed a waiver of any prior or
subsequent breach or default hereof or non-performance hereunder.  All remedies with respect to this Agreement
shall be cumulative and the pursuit of one remedy shall not be deemed a waiver
of any other remedy.

 

48

 

29.                               Miscellaneous

 

(a)                                  Severability;
Modification.   If for any reason
any provision of this Agreement is adjudged by a court to be unenforceable,
such adjudication shall in no way affect any other provision of this Agreement
or the validity or enforcement of the remainder of this Agreement, and the
affected provision shall be modified or curtailed only to the least extent
necessary to bring it into compliance with applicable law.  This Agreement may be modified or amended
only by a writing signed by both parties.

 

(b)                                 Counterparts.   This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute a single instrument.

 

(c)                                  Integration.   This Agreement constitutes the complete
agreement between the Parties and supercedes all prior or contemporaneous
understandings, agreements, drafts, notes, communications or documents between
the parties, whether oral or written, with respect to the subject matter
hereof, including, without limitation, any and all term sheets.  No modification of the terms and conditions
hereof shall be binding unless set forth in a written instrument signed by both
Parties.

 

(d)                                 Survival.  The provisions of Paragraphs 1, 4, 8, 13,
16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28 and 29 shall survive any
termination of this Agreement.

 

49

 

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

 

	
   

  	
  V.E.W. LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  	
  Charles F.
  Hazzard

  	
   

  
	
   

  	
   

  	
   

  	
  Charles F.
  Hazzard

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SYRATECH
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  	
  Gregory W.
  Hunt

  	
   

  
	
   

  	
   

  	
   

  	
  Senior Vice
  President

  Chief Financial Officer

  Treasurer

  

 

50

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