Document:

Exhibit 10.91-Innovo/Mattel

Exhibit 10.91

July 25, 2002

VIA OVERNIGHT MAIL

Mr. Jay Furrow

IAA/ Innovo Azteca Apparel, Inc.

5900 South Eastern Avenue

Commerce, California  90040

Re:       Letter of Intent – Hot Wheels License Agreement

Dear Mr Furrow:

This Letter of Intent sets forth the basic terms of the agreement between Mattel, Inc. (“Mattel”), on the one hand, Innovo Group Inc., (“Innovo”) and its wholly-owned subsidiaries Innovo Azteca Apparel,
Inc. (“IAA”) and Innovo, Inc. (“II”) on the other hand (Innovo, IAA and II, collectively hereinafter referred to as “Licensee), with respect to a limited license from Mattel to Licensee of the Hot Wheels® property in connection with
certain apparel and apparel accessory products as listed below.  Mattel, Innovo, IAA and II agree that they will negotiate in good faith, and enter into, a more definitive License Agreement concerning the matters set forth below (the “License
Agreement”).  The License Agreement shall be based upon the terms described in this Letter of Intent, and shall describe those terms in more specific operational detail.  The License Agreement shall also set forth such other terms (including, without
limitation, approval requirements, representations, warranties and indemnities) as are customary for Mattel’s licensing agreements.  Until the License Agreement is executed by the parties, this Letter of Intent shall be binding upon the parties, and shall
be deemed to incorporate Mattel’s standard terms and conditions. 

            Licensed Property: HOT WHEELS and related logos and images, only as pre-approved by Mattel.

            Term:   July 1, 2002 through December 31, 2007

            Marketing Date:            July 1, 2002

            Shelf Date:            September 1, 2002

   Products: 1. Men’s and Women’s apparel, targeted to the junior and contemporary markets only as follows: 

               Activewear, tops;

               Activewear, bottoms;

                        Sweatshirts, hooded and non-hooded;

                        Sweatpants;

                        Outerwear;

                        T-shirts.

                        2. Women’s apparel, targeted to the junior and contemporary markets only as
follows:

                        “Baby Tee’s” T-shirts.

                        3. Accessory products, targeted to the junior and contemporary markets , only as
follows:

                       

                        Backpacks;

                        Belts;

                        Headwear;

                        Hair Accessories;

                        Bags.

                       

                       

               Innovo shall have the right upon prior written notice to Mattel to sub-license to Innovo’s wholly-owned subsidiaries II and Iaa the
licensing rights granted hereunder.  Notwithstanding the grant of any such sub-license, Innovo shall continue to remain fully responsible for Licensee’s compliance with all terms and conditions of this agreement.

                        All Products shall be made of only the following fabrications:  denim, fleece,
knit, nylon, twill, leather.

                       

            Territory: Canada; United States of America; Puerto Rico

            Channels of Department Store and Specialty Apparel Retailers for the period June 1,

            Distribution: 2002 through December 31, 2007;

                        Mid-Tier Stores, Sporting Good Specialty Retailers, Extreme Sport Equipment Specialty
Stores, including Skate and Surf specialty shops, for the period June 1, 2003,  through December 31, 2007 only;

                       

                        Mass Market for the period January 1, 2004 through December 31, 2007 only.

            Non-Exclusivity: Non-Exclusive as to the Products in the approved Channels of Distribution. The parties acknowledge and understand that Mattel is   free
to license third parties to use the Licensed Property on or in connection with the Products through the Channels of Distribution in the Territory.

           

                       

            Royalty Rate: Standard Rate:  7%

                        Distributor Rate:  10%

                        FOB Rate: 10%

            Sales Forecast: USD$20,000,000 Wholesale

            Advance Guaranty: USD$56,000 non-refundable and payable upon execution of this Letter of Intent, but in no event later than November 1, 2002.  The Advance
Guaranty shall be applicable as $50,400 for royalties accruing from sales in the United States and Puerto Rico, and $5,600 for royalties accruing from sales in Canada.

            Minimum Guaranty: USD$1,050,000 broken down as follows: 

For Royalties Accruing from Sales in Canada:

$105,000 broken down and applicable to the following sales periods:

$5,600 for sales during the period 7/1/02 through 12/31/03, payable as the non-refundable Advance Guaranteed Royalty due upon execution of this Letter of Intent, but in no event later than November 1, 2002;

$7,000 for sales during the period 1/1/04 through 12/31/04, due no later than October 31, 2004;

$22,400 for sales during the period 1/1/05 through 12/31/05, due no later than October 31, 2005;

$30,800 for sales during the period 1/1/06 through 12/31/06, due no later than October 31, 2006;

$39,200 for sales during the period 1/1/07 through 12/31/07, due no later than October 31, 2007.

For Royalties Accruing from Sales in the United States of America and Puerto Rico:

$945,000 broken down and applicable to the following sales periods:

$50,400 for sales during the period 7/1/02 through 12/31/03, payable as the non-refundable Advance Guaranteed Royalty due upon execution;

$63,000 for sales during the period 1/1/04 through 12/31/04, due no later than October 31, 2004;

$201,600 for sales during the period 1/1/05 through 12/31/05, due no later than October 31, 2005;

$277,200 for sales during the period 1/1/06 through 12/31/06, due no later than October 31, 2006;

$352,800 for sales during the period 1/1/07 through 12/31/07, due no later than October 31, 2007.

The Minimum Guaranty is broken down into separate amounts due and royalties earned in excess of such amount in one period or in one country, as defined above, may not be credited towards the Minimum Guaranty amount for any
other period or country as defined above.  Notwithstanding, royalties earned in excess of the Minimum Guaranty amount for any one given period and country, may be credited towards the shortfall, if any, and only up to the shortfall amount, of the Minimum
Guaranty due for such country in any subsequent period during the Term hereof.

            Brand   Licensee agrees to pay two percent (2%) of quarterly “Net Sales,”     

            Development      payable to Licensor thirty (30) days after each quarter end, to be used by   

Initiatives:   and at the sole discretion of Licensor, for Brand Development Initiatives which shall include, but not be limited to, retail signage, consumer advertising, trade advertising, public relations initiatives,
brand directed retail placement programs, television and theatrical product placement programs, retail promotions and brand trade show presence.  Quarterly Brand Development Initiative payments shall be paid separately from Royalty payments and sent to Mattel,
Boys Licensing.

            Additional If Licensee does not achieve sales of the Products, in any one calendar

            Provisions year, such that royalties for that year will be equal to or greater than such year’s Minimum Guarantee obligations, either Licensee or Mattel
shall have the right to terminate the License Agreement by written notice to the other, which right shall be exercisable within thirty (30) days following Mattel’s receipt of final royalty report for such year.  In the event of such termination, Licensee
shall not be relieved of its liabilities accruing up to the time of such termination and shall immediately render payment to Mattel of (i) any unpaid balance of the Minimum Guaranty obligations for the year of termination, and (ii) the Minimum Guaranty
obligations for the succeeding one (1) year, the due date of such succeeding year’s Minimum Guaranty payments being accelerated to the date of termination.

                       

            Warranty Disclaimer: No warranty or indemnity is given by Mattel with respect to any demand, cause of action, damages, liability, cost or expense arising from
any claim that use by IAA of the Licensed Property infringes on any trademark right of any third party or otherwise constitutes unfair competition by reason of any prior rights acquired by such third party other than rights acquired by such third party from
Mattel.  It is expressly agreed that it is the sole responsibility of IAA to carry out such investigations as it may deem appropriate to establish that the Products, packaging, promotional and advertising material which are manufactured or created hereunder,
including any use made of the Licensed Property therewith, do not infringe such right of any third party, and Mattel shall not be liable to IAA  if such infringement occurs.

Please acknowledge your understanding and acceptance of the foregoing by signing below where indicated and returning an original signed copy of this Letter of Intent to the attention of JoAnn Magno in our Boy’s licensing
department.  Failure to sign and return this Letter of Intent by August 1, 2002 will terminate this solicitation of an offer.  If you have any questions or concerns, please feel free to contact myself or JoAnn Magno at 310-252-6614.

Sincerely,

Jeffrey Orridge

Vice President

World Wide Boys Licensing

cc:            J.Magno, Mattel

            S. Rosenbaum, Mattel

AGREED AND ACCEPTED BY:

INNNOV AZTECA APPAREL, INC.               
                       

By:                  
                                   

Name:              
                                   

Title:                
                                   

Date:Exhibit 10.92 Innovo/Bongo Amendment

Exhibit 10.92

                                    AMENDMENT TO
LICENSE AGREEMENT

      This Amendment, effective as of April 1, 2003, by and between IP Holdings LLC, with offices located at 104 Foulk Road, Wilmington, DE (“Licensor”) and Innovo Inc., with offices
located at 2333 Kingston Pike, Suite 100, Knoxville, TN 37919 ("Licensee") (collectively, the "Parties"). 

              WHEREAS, the Parties have entered into a certain license agreement dated as of March 26, 2001, which was amended as of July 26, 2002 (the
“License”); and 

            WHEREAS, the Parties would like to further amend the License as set forth herein and in the attached Exhibit B; and .

            NOW THEREFORE, in consideration of their mutual premises, the Parties hereby amend the License as follows (all capitalized terms used herein are used as in the
License unless otherwise defined).

      1.   This Amendment shall be effective as of April 1, 2003. 

	The definition of Articles in Section 1.1 shall state as follows:

      “Bags and small leather/pvc goods”. 

	Section 2.1 shall be deleted in its entirety and replaced with the following:

      “2.1 Term.  The Term of this Agreement shall be the period commencing as of April 1, 2003 and continuing through March 31, 2007.” 

4.      Section 2.2 shall be deleted in full and replaced with the following:

      “2.2  Definition of Year and Quarter.  (a) the first Year of the Term shall be the period from April 1, 2003 through March 31, 2004.  The second Year of the Term shall
be the period 4/1/04 through 3/31/05.  The third Year of the Term shall be the period 4/1/05 through 3/31/06.  The fourth Year of the Term shall be the period 4/1/06 through 3/31/07.       Each quarter of each Year commencing
January 1, April 1, July 1 and October 1 shall be deemed a “Quarter”).

	The following Section 2.3 shall be added:

      “2.3  Renewal Term.  Licensee shall have the option to renew thisAgreement for one additional term of four Years (the “Renewal
Term”, referred to together with the Term, as applicable, as the “Term”), provided that, with respect to such renewal, (i)  Licensee notifies Licensor of its desire to renew this Agreement no later than 6 months prior to the
expiration date of the Term, (ii) Licensee has fully complied with its obligations pursuant hereto and has maintained a performance standard acceptable to Licensor during the Term and (iii) Licensee has provided reasonable projections for the fourth Year of the 
Term to Licensor upon which Licensor can rely in determining whether Licensee will meet the Renewal Threshold.   Notwithstanding the foregoing, in the event that Net Sales  for the Term are  projected to be less than $10,000,000 (the
“Renewal Threshold”), then Licensee’s renewal rights with respect to the Renewal Term shall be void and unenforceable.   In the event that Licensee provides projections upon which a renewal is based and they are not achieved, it
shall be deemed a material default under this Agreement. “

6.   Sections 5.1, 5.2, 5.3 and 5.4 shall be deleted in their entirety and replaced with the following:

5.1            Minimum Royalties.   At all times that the Agreement shall remain in

effect, Licensee shall pay to Licensor in the manner provided for in Section 11.5  and in conjunction with the reporting requirements set forth in Section 7, guaranteed Minimum Royalties as set forth in Exhibit B hereto
(the “Minimum Royalties”).   Minimum Royalties shall be paid in equal quarterly installments on the first day of each Quarter, commencing on April 1, 2003 and continuing through all Renewal Terms and shall be
non-refundable. 

5.2      Percentage Royalties.  At all times that the Agreement shall remain in effect, Licensee shall pay Licensor in the manner provided for in Section 11.5, and in conjunction with the
reporting requirements set forth in Section 7, percentage royalties equal to five percent (5%) of Net Sales, as defined herein (“Percentage Royalties”).    Percentage Royalties shall be accounted for on the basis of each Quarter, and
shall be paid in United States Dollars within thirty (30) days following the last day of each Quarter (or portion thereof in the event of prior termination of this Agreement for any reason). 

      5.3      Calculation of Royalties.  All payments of Minimum Royalties for each Quarter shall be credited against payment of Percentage Royalties for that
Quarter.  If at the end of any Quarter, the amount of Percentage Royalties due exceeds the Minimum Royalties paid, Licensee shall pay to Licensor in the manner provided in Section 11.5 the difference between the Minimum Royalties paid and the Percentage
Royalties owed for that Quarter.  Percentage Royalties payable for each Quarter shall be computed on the basis of Articles sold by Licensee during such Quarter.  During each Year, excess Percentage Royalties paid quarterly over the quarterly Minimum Royalty
amount shall be carried forward to succeeding Quarters in that Year as a credit against next due Minimum Royalty payments.  Fourth Quarter payments of Percentage Royalties shall not carry forward against payments due in any succeeding Years.  As of the end
of each Year (upon Licensor’s receipt of the Quarterly Statement and Percentage Royalties for the fourth Quarter thereof), the total amount of royalties paid by Licensee for such Year shall be the greater of five percent (5%) of Net Sales for such Year, or the
total Minimum Royalties due during that Year.  

      “5.4 Advertising Royalties. (a) At all times that the Agreement shall remain in effect, Licensee shall pay Licensor in the manner provided for in Section 11.5, and in
conjunction with the reporting requirements set forth in Section 7, a minimum advertising contribution to Licensor for national and institutional advertising of Articles equal to two percent (2%) of Net Sales for each Year (the "Minimum Advertising
Contribution").  The Minimum Advertising Contribution shall be accounted for on the basis of each Quarter, and shall be paid in United States Dollars within thirty (30) days following the last day of each Quarter (or portion thereof in the event of prior
termination of this Agreement for any reason).   (b) In addition to the payment of Advertising Royalties, Licensee shall spend such additional amounts as it sees fit on co-operative and trade advertising.”

    7.     The following Section 8.3 shall be added:

     “8.3    Payment of All Amounts Due Under Agreement.  In the event of a termination in accordance with this Section, Licensee shall promptly pay to Licensor all amounts due
hereunder that remain unpaid for the balance of the Term of this Agreement.”   

     8.            Section 11.5 shall be deleted in its entirety and replaced with the following:

11.5  Manner of Payment.   All amounts payable to Licensor by Licensee pursuant to this Agreement shall be paid by wire transfer in United States Dollars by Licensee to Licensor in accordance with the
reasonable instructions of Licensor, or by check sent to the attention of Beth Peoples, IP Holdings, Inc., 104 Foulk Road, Wilmington, DE, 19803.  Checks should be made payable to “IP Holdings LLC”, or to such payee
as Licensor shall designate at any time by written notice to Licensee. 

	Except as otherwise set forth in this Amendment, the License shall remain in

full force and effect as originally written.

IN WITNESS WHEREOF, the Parties hereto intending to be bound hereby execute this Amendment by their duly authorized representatives.

IP HOLDINGS LLC                
                                    INNOVO, INC.

By Its Manager                       
                                    Licensee

IP Management Corporation                            
                       

By: ___________________                                 
            By: ___________________

            Its:      
                       
                                   
            Its:                              

            EXHIBIT B

            Minimum Royalties                       
            Minimum Net Sales

Year 1 = 4/1/03 – 3/31/04                       
$50,000                                             
$1 million

Year 2 = 4/1/04 – 3/31/05                       
$75,000                                             
$1.5 million

Year 3 = 4/1/05 – 3/31/06                       
$87,500                                             
$1.75 million

Year 4 = 4/1/06 – 3/31/07                       
$100,000                                            $2.0
million

                                   
            Total = $312,500                                
Total = $6.25 million

Renewal Threshold = $10 million

Year 5 = 4/1/07 – 3/31/08                       
$125,000                                            $2.5
million

Year 6 = 4/1/08 – 3/31/09                       
$150,000                                            $3.0
million

Year 7 = 4/1/09 – 3/31/10                       
$175,000                                            $3.5
million

Year 8 = 4/1/10 – 3/31/11                       
$200,000                                            $4.0
million

                                   
            Total =$650,000                               Total = $13
million

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