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Exhibit 10.26  

	
C L I F F O R D

C H A N C E	
 	

CLIFFORD CHANCE (TOKYO) LPS

GAIKOKUHO JIMUBENGOSHI JIMUSHO

TANAKA AKITA & NAKAGAWA
	T A N A K A

AKITA &

N A K A G A W A	 	EXECUTION VERSION

 

  SAMSONITE EUROPE NV 

AND

SAMSONITE
JAPAN CO., LTD. 

SUBLICENSE AND DISTRIBUTION AGREEMENT  

 

  

 
  
 

    CONTENTS    
    

	Clause
	 	 
	 	Page

	1.	 	Interpretation	 	1
	

2.	
 	

License and Territory	
 	

4
	

3.	
 	

Use of Intellectual Property	
 	

4
	

4.	
 	

Technical and Marketing Assistance	
 	

5
	

5.	
 	

Best Efforts of Licensee	
 	

5
	

6.	
 	

Materials, Manufacture and product safety	
 	

6
	

7.	
 	

Service After Sale	
 	

7
	

8.	
 	

Royalty	
 	

7
	

9.	
 	

Indemnification, Insurance and Infringement	
 	

8
	

10.	
 	

Assignment	
 	

9
	

11.	
 	

Copyrights	
 	

9
	

12.	
 	

Records	
 	

10
	

13.	
 	

Confidentiality	
 	

10
	

14.	
 	

Improvements	
 	

10
	

15.	
 	

Term and Termination	
 	

11
	

16.	
 	

Rights on Termination	
 	

12
	

17.	
 	

Time of Essence	
 	

12
	

18.	
 	

Amendments and No Waiver	
 	

13
	

19.	
 	

Entire Agreement	
 	

13
	

20.	
 	

Limitation of Rights	
 	

13
	

21.	
 	

Notices	
 	

13
	

22.	
 	

Governing Law And Arbitration	
 	

14
	

23.	
 	

Governing Language	
 	

14
	

24.	
 	

Counterparts	
 	

15
	

SCHEDULE 1    Samsonite Trademarks	
 	

17
	

SCHEDULE 2    Samsonite Patents	
 	

20

i

   THIS AGREEMENT is entered into as of 27 January 2005 

BETWEEN:  

	(1)
	Samsonite Europe NV, a corporation organized and existing under the laws of Belgium, having its registered office at Westerring 17,
9700 Oudenaarde, Belgium ("SamEurope"); and

	(2)
	Samsonite Japan Co., Ltd., a company incorporated in Japan, whose principal place of business is Akasaka Edosei Bldg. 4F,
7-10-8 Akasaka, Minato-ku, Tokyo 107-0052, Japan ("Licensee"). 

WHEREAS  

	(1)
	SamEurope
and Samsonite Corporation ("Samsonite") are parties to the license agreement between SamEurope and Samsonite dated 1
January 1999 (the "SamEurope License") pursuant to which Samsonite grants SamEurope certain licenses, on the terms and conditions set forth
therein.

	(2)
	Under
the SamEurope License, SamEurope has the right and authority to sublicense certain rights regarding patents, trademarks and know-how related to luggage and other
products.

	(3)
	Licensee
is a Kubushiki Kuisha incorporated in Japan and has at the date of this Agreement an authorized share capital divided into
1 billion ordinary shares, of which 10 million ordinary shares of JPYl each have been issued, are fully paid-up and are all held by Samsonite.

	(4)
	SamEurope
and Licensee wish to enter into this Agreement to provide for the sublicensing by SamEurope of certain rights to Licensee with respect to certain patents, trademarks,
know-how and other intellectual property rights related to the marketing, distribution and sale of Samsonite-owned brand products in Japan, on the terms and conditions of this Agreement. 

THE PARTIES AGREE as follows: 

1.     INTERPRETATION  

	1.1
	In
this Agreement: 

"Applicable Law" means as to any person, any law, regulation, statute, ordinance and regulation of any country or governmental entity having
jurisdiction over Licensee or its activities under this Agreement, including without limitation: 

	(i)
	consumer
protection laws and regulations;

	(ii)
	laws
of the Territory governing the use of the Samsonite Intellectual Property, such as the proper marking of items such as packages and labels; and

	(iii)
	to
the extent applicable, the laws of the United States of America (including without limitation the Foreign Corrupt Practices Act, as amended from time to time), Belgium and the
Territory; 

"EBITDA" means Earnings Before Interest Taxes Depreciation and Amortization; 

"ESY" means ESY Luggage Management LPS Investment Limited Partnership, whose registered office is at 2-2, Manmouchi 2-chome,
Chiyoda-ku, Tokyo, Japan; 

"Fiscal Year" means 1 January through 31 December, provided that the first Fiscal Year shall be from the Subscription Date through 31
December 2005; 

"Indemnified Parties" means any Samsonite Entity and the officers, directors, employees and agents of each of them; 

1

 

"Licensed Products" means the bags, items of luggage, business cases, personal leather goods, other travel articles and any other products which have
been specifically approved by SamEurope in writing as "Licensed Products" for the purposes of this Agreement, each of which: 

	(i)
	bears
a Samsonite Trademark;

	(ii)
	is
placed in commerce by Licensee in association with a Samsonite Trademark;

	(iii)
	is
covered in whole or in part by a Samsonite Patent; or

	(iv)
	is
made or sold using any Samsonite Know-How; 

"Net Sales" means the gross price invoiced by the Company for all Licensed Products to customers after deducting: (1) sales taxes or other taxes
separately stated on the invoice, (2) shipping and other transportation and insurance charges actually paid and separately stated on the invoice, (3) actual allowances, rebates, credits
and refunds for returned or defective goods, and (4) normal and customary trade and quantity discounts; 

"Samsonite Domain Name" means the Internet domain located at the address represented by the "Uniform Resource Locator http://www.samsonite.co.jp or as
otherwise mutually agreed; 

"Samsonite Entity" means Samsonite and any affiliate or subsidiary of Samsonite other than Licensee, in which Samsonite directly or indirectly holds a
controlling interest; 

"Samsonite Intellectual Property" means collectively, the Samsonite Name, Samsonite Domain Name, Samsonite Know-How, Samsonite Patents and
Samsonite Trademarks; 

"Samsonite Know-How" means any and all information made available to Licensee by or on behalf of Samsonite, which is not generally available
to the public in the form in which it is made available to Licensee, including without limitation: 

	(v)
	specifications;

	(vi)
	technical
data;

	(vii)
	test
methods;

	(viii)
	blueprints,
drawings, models, computer files, or the like;

	(ix)
	technical
instructions;

	(x)
	scientific
and technical information;

	(xi)
	descriptions;

	(xii)
	marketing
or sales techniques or information;

	(xiii)
	processes;

	(xiv)
	accounting
or business methods or procedures;

	(xv)
	formulae;

	(xvi)
	strategic
or financial plans or reports;

	(xvii)
	trade
secrets;

	(xviii)
	other
data useful in the design, assembly, manufacture, distribution or sale of Licensed Products; and

	(xix)
	engineering
or design process or operating information; 

2

 

"Samsonite Name" means the trade name "Samsonite" whether used alone or as part of Licensee's name; 

"Samsonite Patents" means the patent applications and registrations listed on Schedule 2; 

"Samsonite Trademarks" means the trademark applications and registrations set forth on Schedule 1; 

"Shareholders Agreement" means the shareholders' agreement dated 27 January 2005 between Samsonite, Licensee and ESY; 

"Subscription Date" means 28 January 2005; 

"Territory" means Japan; 

"Third Party" means any person other than SamEurope and Licensee; 

"Trademark Materials" means anything which bears a Samsonite Trademark, other than a Licensed Product itself, including without limitation packaging,
labels, tags and emblems, advertising materials, marketing materials, publicity and other promotional materials, and work-in-progress; and 

"USD" means the lawful currency of me United States of America. 

	1.2
	The
following terms are defined in the clauses stated: 

	Term
	 	Clause

	"Approved Supplier"	 	6.1
	"Designated Currency"	 	8.4
	"GSD"	 	6.1
	"Improvements"	 	14.1
	"Materials"	 	3.3
	"Royalty"	 	8.1
	"Service"	 	7.1
	"Term"	 	15.1
	"Termination Event"	 	15.2

	1.3
	In
this Agreement, a reference to:

	1.3.1
	a
"person" includes, without limitation, a reference to any individual, firm, company, corporation or other body corporate,
government, state or agency of a state or any joint venture, association or partnership, works council or employee representative body (whether or not having a separate legal personality);

	1.3.2
	a
"party" is a reference to a party to this Agreement and "parties" shall be construed accordingly;

	1.3.3
	a
recital or clause, unless the context otherwise requires, is a reference to a recital or clause of this Agreement; and

	1.3.4
	(unless
me context otherwise requires) the singular shall include the plural and vice versa.

	1.4
	The
headings in this Agreement do not affect its interpretation 

3

 

2.     LICENSE AND TERRITORY  

	2.1
	SamEurope
hereby grants to Licensee during the Term in consideration for payment of the Royalty (as set forth in clause 8), and Licensee accepts:

	2.1.1
	a
nontransferable, nonexclusive license to use the Samsonite Name as part of its company name;

	2.1.2
	a
nontransferable, nonexclusive license to use the Samsonite Domain Name;

	2.1.3
	a
nontransferable, exclusive license to use the Samsonite Trademarks in the Territory, only in connection with the marketing, distribution and sale of Licensed Products; and

	2.1.4
	a
nontransferable, exclusive license under the Samsonite Patents and Samsonite Know-How to, subject to the provisions of clause 6, manufacture or have
manufactured (within or outside the Territory), Licensed Products to be marketed, distributed and sold within the Territory.

	2.2
	SamEurope
reserves the right to grant licenses to any Third Party to market, distribute, manufacture and sell Licensed Products:

	2.2.1
	outside
the Territory using any trademark, including a Samsonite Trademark, and

	2.2.2
	within
the Territory, but then only: 

        (i)    in
case, of the manufacture of Licensed Products for export outside the Territory; and 

        (ii)   with
respect to trademarks other than a Samsonite Trademark. 

	2.3
	Other
than sales to a Samsonite Entity or as otherwise provided in this clause 2, Licensee shall not sell Licensed Products outside the Territory or offer Licensed Products to
Third Parties, if Licensee knows or ought to be aware that such Third Party will or is likely to sell such Licensed Products outside the Territory. 

3.     USE OF INTELLECTUAL PROPERTY  

	3.1
	Licensee
shall use the Samsonite Intellectual Property only as set forth in this Agreement or as approved by SamEurope. SamEurope makes no representations, express or implied, and
shall have no obligation or liability with respect to the validity outside the Territory of (i) the Samsonite Patents, and (ii) the Samsonite Trademarks.

	3.2
	Any
interest that Licensee may acquire in any of the Samsonite Intellectual Property in any country, including the Territory, shall inure to the benefit of SamEurope. None of the
rights granted to Licensee under this Agreement shall affect Samsonite's exclusive ownership of the Samsonite Intellectual Property.

	3.3
	Licensee
shall use the Samsonite Trademarks only in the form as set forth in a style book issued by SamEurope, as amended from time to time, and shall place reasonably conspicuous
trademark notices on all Licensed Products and marketing, packaging, labeling and other materials associated with the Licensed Products ("Materials") in
a form directed and approved in writing by SamEurope.

	3.4
	To
maintain and enhance the goodwill and image of quality associated by the public with Samsonite and the Samsonite Intellectual Property, Licensee shall:

	3.4.1
	not
use any Materials which are false or misleading; 

4

 

	3.4.2
	ensure
that all Materials fully comply with all Applicable Laws and any SamEurope internal regulations or policies in effect from time to time;

	3.4.3
	conduct
its business operations in accordance with all Applicable Laws; and

	3.4.4
	distribute
and sell Licensed Products only to those Third Parties which:

	(a)
	have
a good business reputation;

	(b)
	to
the best of Licensee's knowledge, are in no way associated or generally thought to be associated with any unfair, misleading, illegal, vulgar, obscene, immoral, unsavory or
offensive activities;

	(c)
	maintain
an adequate image for merchandising the Licensed Products in a manner appropriate for the Licensed Products;

	(d)
	hire
and maintain trained and knowledgeable sales personnel; and

	(e)
	maintain
a reputation for always dealing in genuine trademarked goods.

	3.5
	Licensee
shall not use any of the Samsonite Trademarks, in whole or in part, in such a manner that any of the Samsonite Trademarks may in any way be diluted in respect of
distinctiveness or validity, or may in any way impair or negate any of the rights in the Samsonite Trademarks. Licensee shall not advertise, exploit, promote, market or otherwise offer Licensed
Products in any manner that may adversely affect the reputation of any Samsonite Entity or Licensee. 

4.     TECHNICAL AND MARKETING ASSISTANCE  

	4.1
	SamEurope
shall use reasonable efforts to make available to Licensee during the Term appropriate Samsonite Know-How that is applicable to the distribution, marketing and
sale of Licensed Products.

	4.2
	SamEurope
shall permit Licensee's representatives to visit SamEurope facilities to observe the application and use of Samsonite Know-How.

	4.3
	SamEurope
shall permit Licensee's authorized representatives to attend appropriate global and/or local design meetings, at Licensee's sole cost and expense, to learn about new designs
for, and technical improvements of, Licensed Products manufactured at various SamEurope facilities.

	4.4
	SamEurope
shall use reasonable efforts to make available to Licensee information on marketing efforts for Licensed Products being undertaken by other Samsonite Entities outside the
Territory.

	4.5
	SamEurope
shall provide to Licensee the same ongoing technical assistance with respect to the marketing, sale and distribution of Licensed Products on no less favorable terms and
conditions as it provides to other similarly situated Licensees. 

5.     BEST EFFORTS OF LICENSEE  

	5.1
	Licensee
shall use its best efforts to:

	5.1.1
	create
a high standard, exclusive market for Licensed Products in the Territory;

	5.1.2
	market,
advertise and promote the sale of each of the Licensed Products in the Territory;

	5.1.3
	maximize
sales of Licensed Products in the Territory; and

	5.1.4
	fully
satisfy the market for Licensed Products in the Territory. 

5

 

	5.2
	Upon
reasonable advance notice from SamEurope, Licensee shall meet with SamEurope, at Licensee's sole cost and expense, to review key business information pertaining to this Agreement
including but not limited to sales, marketing, product development, manufacturing and distribution information. 

6.     MATERIALS, MANUFACTURE AND PRODUCT SAFETY  

	6.1
	Licensee
may place orders directly for Licensed Products to a Third Party identified and qualified in advance in writing by Samsonite's Global Sourcing Division (the  "GSD") pursuant to approved designs created
directly by Licensee or included in Samsonite's global range of products (an  "Approved Supplier"), but only so long as such Third Party remains approved by Samsonite. Samsonite reserves the right, in
its absolute discretion, to
approve and withdraw approval at any time with respect to an Approved Supplier.

	6.2
	Licensee
shall cause an Approved Supplier to manufacture and/or assemble Licensed Products under this Agreement strictly for Licensee, and not for sale to any Third Party.

	6.3
	With
respect to Licensed Products manufactured outside the Territory, Licensee shall directly conduct price negotiations with Approved Suppliers, with assistance, as requested, from
the GSD. Licensee shall be responsible for all payments for all Licensed Products purchased from any Approved Supplier.

	6.4
	Licensee
shall not change an Approved Supplier previously approved by Samsonite without notifying SamEurope and Samsonite at least two (2) months in advance, giving Samsonite
an opportunity to assess whether to approve a new supplier as an Approved Supplier.

	6.5
	With
respect to Licensed Products manufactured by an Approved Supplier in the Territory, Licensee shall:

	6.5.1
	only
proceed with the final design of the Licensed Products after obtaining the approval of me product concept from SamEurope;

	6.52
	engage
in product development; provided that, Licensee may in its sole discretion request the assistance of the GSD in such product development;

	65.3
	ensure
that factories where the Licensed Products are manufactured have been approved by the GSD;

	6.5.4
	follow
all standard Samsonite procedures with respect to collateral materials and identification;

	6.5.5
	ensure
that all Licensed Products are quality tested by Samsonite's Global Supply Coordination Center;

	6.5.6
	ensure
that inspection procedures to inspect the Licensed Products are established and that such inspections take place on a timely basis at me Approved Supplier's place of business
or at Licensee's warehouse, to the satisfaction of SamEurope;

	6.5.7
	order
and pay for the Licensed Products in a timely manner, to the satisfaction of SamEurope; and

	6.5.8
	directly
conduct price negotiations for Licensed Products with Approved Suppliers; provided that, Licensee may at its discretion request me assistance of the GSD in such price
negotiations.

	6.6
	Licensee
shall cause all Licensed Products manufactured and/or assembled under this Agreement by an Approved Supplier to be manufactured or assembled only in accordance with the
specifications, technical instructions and descriptions communicated by SamEurope to 

6

 

Licensee
and to the end that such products when finished shall be of the same standard and quality as equivalent products made or assembled by SamEurope or Samsonite entities in their own factories.
Licensee represents and warrants that the Licensed Products manufactured or assembled for it under this Agreement shall be manufactured or assembled to high standards, and Licensee shall establish and
maintain a thorough quality control program for such Licensed Products. Upon request by SamEurope, Licensee shall send random production samples of such Licensed Products to SamEurope for inspection.
SamEurope shall confine its requests to reasonable intervals and reasonable amounts. Licensee shall not sell or otherwise distribute for sale any items manufactured and/or assembled for it under this
Agreement which do not, in the sole discretion and opinion of SamEurope, meet with SamEurope's standards of quality. 

	6.7
	Licensee
shall create and maintain a product safety program satisfactory to SamEurope which incorporates safety audits, consideration of feedback from distributors, consumers and
other appropriate third parties, implementation of safety improvements, product recall, and procedures to assure compliance with all Applicable Laws and industry standards.

	6.8
	Licensee
shall include with each Licensed Product proper instructions and warning labels, appropriate to the respective Licensed Product, prudent to apprise the consumer of its proper
operation, use, care and maintenance and to warn of the reasonably foreseeable misuses and possible hazards associated therewith.

	6.9
	Licensee
shall ensure that all Licensed Products meet or exceed all applicable industry, national, prefectural and local statutes, standards, regulations and guidelines throughout the
Territory, including with respect to health and product safety.

	6.10
	Licensee
shall immediately provide SamEurope with a copy of any notice received by Licensee of a pending or threatened claim of personal injury arising from the use of a Licensed
Product. Licensee shall immediately notify SamEurope in writing if Licensee becomes aware of any material defects in a Licensed Product.

	6.11
	At
all times during the Term, Licensee shall cause SamEurope to have the right to inspect all of the offices, manufacturing areas and plants of Licensee and its Approved Suppliers
for the purpose of assuring compliance with the terms of this Agreement. 

7.     SERVICE AFTER SALE  

	7.1
	With
respect to Licensed Products covered by a worldwide guarantee that are purchased outside the Territory and are brought to Licensee for service including repairs
("Service"), Licensee shall make all required Service without charging the cost of such Service to any other Samsonite Entity.

	7.2
	With
respect to Licensed Products covered by a worldwide guarantee that are purchased in the Territory and are brought to a Samsonite Entity other than Licensee for Service, SamEurope
shall require that the relevant Samsonite Entity shall bear the cost of such Service and shall not request payment from Licensee for such Service. 

8.     ROYALTY  

	8.1
	In
consideration of the rights, licenses, consents and services specified in this Agreement, Licensee shall pay to SamEurope during the Term for the use of Samsonite Intellectual
Property in the Territory a royalty in the amount of five percent (5%) of Licensee's Net Sales of Licensed Products (the "Royalty"). 

7

 

	8.2
	The
Royalty shall:

	8.2.1
	be
calculated and accrued for each one (1) month period during the Term; and

	8.2.2
	first
be payable no later than 28 February 2006 for the period from the Subscription Date through 31 December 2005. Thereafter, Licensee shall pay to SamEurope the
Royalty no later than 28 February of the following year for the immediately preceding Fiscal Year during the Term.

	8.3
	Licensee
shall keep detailed records showing the Net Sales of all Licensed Products in the Territory in sufficient detail to enable SamEurope or its representative to verify the
amount of Royalty payable. Such records shall be maintained for at least ten (10) years following the latest date covered by such records. On or before 28 February following each Fiscal Year
during the Term, and within fifteen (15) days after termination of this Agreement for any reason, Licensee shall deliver to SamEurope:

	8.3.1
	a
statement executed by an authorized officer of Licensee indicating the Net Sales of Licensed Products by Licensee during the preceding Fiscal Year; and

	8.3.2
	the
Royalty due to SamEurope under this Agreement for the preceding Fiscal Year the statement referred to in paragraph 8.3.1 above.

	8.4
	All
Royalty payments due under this Agreement shall be calculated and paid in USD (the "Designated Currency") to SamEurope. In
determining the amount of Designated Currency due SamEurope under this Agreement, the Net Sales made by Licensee shall be converted to the Designated Currency at the exchange rate quoted by Mizuho
Bank, Toranomon Bank, as of the last day of the month for which such Royalty payment is due.

	8.5
	SamEurope
or its designated representative shall have the right during normal business hours and at SamEurope's sole cost and expense, to audit all pertinent books and records of
Licensee pertaining to the sale of Licensed Products for the purpose of verifying the actual amounts of Net Sales and Royalties due.

	8.6
	Taxes
lawfully levied by governmental bodies within the Territory on payments due to SamEurope under this Agreement shall be borne by SamEurope. However, Licensee shall try to obtain
on SamEurope's behalf any reduction of the rate of withholding which is applicable under any law or double taxation treaty. If required by Applicable Law, Licensee shall:

	8.6.1
	withhold
the amount of each such tax payment due prior to payment to SamEurope;

	8.6.2
	pay
the amount of such tax to the appropriate authority in a timely manner; and

	8.6.3
	promptly
transmit to SamEurope official tax receipts or such other documentary evidence of payment as may reasonably be required by SamEurope. 

9.     INDEMNIFICATION, INSURANCE AND INFRINGEMENT  

	9.1
	Licensee
shall defend, indemnify and hold harmless the Indemnified Parties and each of them from any and all damage, expense and liability related to any:—

	9.1.1
	default
by an Approved Supplier;

	9.1.2
	act
or omission of an Approved Supplier with whom Licensee contracts for the manufacture, assembly, distribution, and/or sale of Licensed Products or components thereof; 

8

 

	9.1.3
	suit,
action, legal proceeding, claim, or demand of any kind or character, based upon:

	(a)
	an
alleged or actual defect in a Licensed Product, its packaging, or the use or condition thereof;

	(b)
	an
allegation of passing off, unfair competition or false or misleading advertising involving a Licensed Product; or

	(c)
	an
allegation of infringement of any patent, copyright, industrial design, trademark or other right of a Third Party arising from the manufacture, assembly, advertisement, promotion,
sale and/or use of a Licensed Product; except for allegations arising out of the use of Samsonite Intellectual Property in a manner authorized by this Agreement.

	9.1.4
	use
of any Samsonite Intellectual Property in a manner not authorized by this Agreement; and

	9.1.5
	breach
of a warranty, representation or obligation of Licensee under this Agreement.

	9.2
	The
duty to indemnify and hold harmless from liability set out in this clause 9 shall, without limitation, apply to all damages, reasonable legal fees, costs and expenses which
may be levied against or incurred by the Indemnified Parties, or any of them, in connection with any such suit, action, legal proceeding, claim or demand.

	9.3
	At
all times during the Term, Licensee shall obtain and maintain in effect general liability insurance which names the Indemnified Parties as additional insureds and is otherwise in
amounts, form and substance satisfactory to SamEurope in its reasonable discretion. Upon SamEurope's request, Licensee shall deliver to SamEurope a certificate of insurance evidencing that insurance
complying with the foregoing requirements is in full force and effect. If such insurance is a "claims made" form of insurance, then Licensee shall maintain it in effect for a period of three years
following Licensee's last sale of a Licensed Product.

	9.4
	In
the event that any Samsonite Intellectual Property is infringed in the Territory by any party not having rights under such Samsonite Intellectual Property, then the party gaining
knowledge of such infringement shall immediately notify the other party. Such notice shall include sufficient information and data so that the party receiving the notice may determine whether
infringement exists. At the request of SamEurope, Licensee shall join in sending any notice of infringement. SamEurope may elect to bring suit for infringement of such Samsonite Intellectual Property
but shall not be obligated to do so. At the request of SamEurope, Licensee shall join in such suit, in which case the expense thereof shall be paid equally and the proceeds of any recovery shall be
shared equally. Licensee shall not have any right to direct or control such suit but SamEurope shall confer closely with Licensee. 

10.   ASSIGNMENT  

Without
the prior written consent of SamEurope, Licensee shall not assign any of its rights under this Agreement nor delegate any of its duties under this Agreement to any Third Party. Any attempted
assignment in violation of this clause 10 shall be invalid. SamEurope shall have the right to assign any or all of its rights and obligations under this Agreement. 

11.   COPYRIGHTS  

The
copyright in Trademark Materials shall be the sole and exclusive property of Samsonite. Licensee shall affix a copyright notice in Samsonite's name and in compliance with the Universal 

9

 

Copyright
Convention to all such materials. Licensee shall execute such assignments or other documents as may be necessary to perfect and confirm Samsonite's ownership of such copyrights. 

12.   RECORDS  

In
addition to the records specified in clause 8.3, Licensee shall set up a customer record system covering statistics of customer information, including information such as a list of
customers, annual purchases by customers, classification and type of customer, volume by trading area and country and analysis of sales by item. SamEurope shall have the right to inspect such record
system during the Term upon reasonable notice to Licensee, and upon termination of this Agreement, such system shall be promptly delivered by Licensee as SamEurope directs. 

13.   CONFIDENTIALITY  

	13.1
	For
the purposes of this clause, "Confidential Information" means all information of a confidential nature disclosed (whether in
writing, verbally or by any other means and whether directly or indirectly) by one party (the "Disclosing Party") to any other party (the  "Receiving Party") whether before or after the date of this Agreement.

	13.2
	During
the Term and for a period of two (2) years after termination or expiration of this Agreement for any reason whatsoever the Receiving Party shall:

	13.2.1
	keep
the Confidential Information confidential;

	13.2.2
	not
disclose the Confidential Information to any other person other than with the prior written consent of the Disclosing Party or in accordance with clauses 13.3 and 13.4; and

	13.2.3
	not
use the Confidential Information for any purpose other than the performance of its obligations under this Agreement.

	13.3
	The
Receiving Party may disclose Confidential Information to its employees and to any Approved Supplier and to any employees of any Approved Supplier on a "need to know basis", only
to the extent that it is necessary for the purposes of this Agreement and shall procure that each such person is made aware of and complies with all the Receiving Party's obligations of
confidentiality under this Agreement.

	13.4
	The
obligations contained in clauses 13.1 and 13.2 shall not apply to any Confidential Information which:

	13.4.1
	is
at the date of this Agreement or at any time after the date of this Agreement comes into the public domain other than through breach of this Agreement by the Receiving Party;

	13.4.2
	can
be shown by the Receiving Party to the reasonable satisfaction of the Disclosing Party to have been known to the Receiving Party prior to it being disclosed by the Disclosing
Party to the Receiving Party;

	13.4.3
	subsequently
comes lawfully into the possession of the Receiving Party from a third party; or

	13.5
	is
required to be disclosed by law, stock exchange rules or governmental orders or regulations. 

14.   IMPROVEMENTS  

	14.1
	During
the Term, Licensee shall disclose immediately in writing to SamEurope full information, technical and otherwise, regarding any and all inventions and/or improvements which
Licensee makes or contemplates regarding the design, manufacture, assembly, 

10

 

marketing,
distribution and/or sale of Licensed Products under this Agreement ("Improvements"), and shall promptly forward to SamEurope designs, plans,
samples and all other pertinent items and data with respect thereto. All Improvements shall be owned by Samsonite. Samsonite shall have the right to tile any applications with respect to Improvements,
including patent applications, to secure its rights therein. 

	14.2
	Licensee
shall, upon the request of SamEurope, execute and procure the execution of any and all documents necessary or desirable to protect all Improvements and whatever assignment
or transfer instruments necessary or required to effect ownership of such Improvements in Samsonite, in all countries specified by Samsonite; provided that, the expense of obtaining and maintaining
rights in Improvements shall be borne by Samsonite. In the event that no patent application is filed by Samsonite with respect to an Improvement, Licensee shall have the right to proceed with such
application; provided that, SamEurope or its designee shall have the right of first refusal with respect to an exclusive worldwide license at a reasonable Royalty rate with the right to sublicense. In
the event that no patent application is filed by SamEurope or Licensee for any reason whatsoever, Samsonite may in its sole discretion agree in writing that Samsonite Trademarks may be used on any
products manufactured by Licensee on the basis of the above inventions and/or improvements. 

15.   TERM AND TERMINATION  

	15.1
	The
term of this Agreement shall commence on the date hereof and terminate on the earlier of (i) termination of the Shareholders Agreement, (ii) termination by
SamEurope due to a Termination Event, as set forth in clause 15.2 below, or (iii) termination of the SamEurope License (the "Term").

	15.2
	SamEurope
may terminate this Agreement immediately by written notice to Licensee upon the occurrence of any of the following events (each a "Termination
Event"), without prejudice to any other accrued rights SamEurope may have as of the date of such termination:

	15.2.1
	failure
of Licensee to pay Royalties as and when due under this Agreement;

	15.2.2
	unauthorized
or unlawful use of any of any Samsonite Intellectual Property or use of any Samsonite Intellectual Property in breach of this Agreement;

	15.2.3
	the
voting power of the shareholders of Licensee is ineffective for 60 days or more either by reason of nationalization of the particular industry in which Licensee is
engaged or by reason of the intervention of any governmental or military or other power in the affairs of Licensee, whether or not accompanied by war or civil strife;

	15.2.4
	the
Board of Directors of Licensee for any reason whatsoever ceases for a period of thirty (30) days or more to have effective control over the operations or any property of
Licensee;

	15.2.5
	Licensee's
breach of any of its obligations under this Agreement which is incapable of cure or which remains uncured for a thirty (30) day period after receiving notice
thereof from SamEurope; or

	15.2.6
	Licensee
is declared insolvent or bankrupt. 

11

 

16.   RIGHTS ON TERMINATION  

	16.1
	Upon
termination of this Agreement, Licensee shall cease and shall cause any Authorized Supplier manufacturing or assembling Licensed Products to cease:

	16.1.1
	Marketing,
selling, distributing and having manufactured and assembled Licensed Products, and any component parts thereof; and

	16.1.2
	using
the Samsonite Intellectual Property and any intellectual property similar to the Intellectual Property;

	16.2
	Upon
termination of this Agreement, any rights of Licensee to the use of the Samsonite Intellectual Property shall cease and automatically revert to SamEurope and Licensee shall not
thereafter use the Samsonite Intellectual Property in any way whatsoever, including marketing, having manufactured, using, distributing or selling any product which incorporates an invention or design
covered by any Samsonite Patent.

	16.3
	Upon
termination of this Agreement, Licensee shall immediately return any Samsonite Know-How previously received in any form, including without limitation originals,
copies, reprints, translations, and samples thereof.

	16.4
	Licensee
grants to SamEurope the option, exercisable upon the termination of this Agreement, to purchase from Licensee, and to have Licensee cause any Authorized Supplier
manufacturing or assembling Licensed Products on behalf of Licensee, to sell to SamEurope all or any part of:

	16.4.1
	the
tooling or equipment related to the manufacture and/or assembly of Licensed Products, at the cost thereof less normal depreciation;

	16.4.2
	the
inventory of finished Licensed Products of Licensee and/or its sub-contractor as of the date of termination, at the actual cost thereof; and

	16.4.3
	any
work in process and raw materials used in the production of Licensed Products, all at the actual cost thereof.

	16.5
	Such
purchases shall be made at the Licensee's or subcontractor's landed cost, as applicable, within sixty (60) days after lists containing descriptions, quantities and prices
of all items included under this Agreement have been furnished by Licensee to SamEurope. Licensee shall give such lists to SamEurope within ten days after termination of this Agreement. If SamEurope
does not elect to make such purchases, Licensee shall have the right to sell the same for the best price obtainable; provided that, the Samsonite Name and all Samsonite Trademarks are first either
completely removed or permanently obliterated therefrom.

	16.6
	Upon
termination of this Agreement, SamEurope may apply for cancellation of any record of this Agreement with any government authority. Licensee hereby specifically consents to such
cancellation and shall execute all documents necessary for such cancellation.

	16.7
	Upon
termination of this Agreement, any Samsonite Entity or Third Party authorized by SamEurope shall have the right without paying any compensation or fee to deal With Licensee's
customers and to sell Licensed Products in the Territory. 

17.   TIME OF ESSENCE  

Any
time or period mentioned in any provision of this Agreement may be extended by mutual agreement between the parties but as regards any time, date or period originally fixed or any time, date or
period so extended as aforesaid time shall be of the essence. 

12

 

18.   AMENDMENTS AND NO WAIVER  

	18.1
	A
variation of this Agreement is valid only if it is in writing and signed by or on behalf of each party.

	18.2
	The
failure to exercise or delay in exercising a right or remedy provided by this Agreement or by law does not impair or constitute a waiver of the right or remedy or an impairment
of or a waiver of other rights or remedies. No single or partial exercise of a right or remedy provided by this Agreement or by law prevents further exercise of the right or remedy or the exercise of
another right or remedy. 

19.   ENTIRE AGREEMENT  

This
Agreement and each document referred to in it constitute the entire agreement and supersede any previous agreements between the parties relating to the subject matter of this Agreement. 

20.   LIMITATION OF RIGHTS  

	20.1
	This
Agreement is made pursuant to the SamEurope License and is hereby expressly limited by the rights granted to SamEurope under the SamEurope License. Any inconsistency between
this Agreement and the SamEurope License shall be controlled based on the terms, conditions and rights granted to SamEurope in the SamEurope License.

	20.2
	No
person who is not party to this Agreement shall have or acquire any right to enforce any term of this Agreement. 

21.   NOTICES  

	21.1
	A
notice or other communication under or in connection with this Agreement (a "Notice") shall be in writing and delivered personally
or sent by post (and air mail if overseas) or by fax to the party due to receive the Notice to the address set out in clause 21.3 or to another address specified by that party by not less than
seven (7) days' written notice to the other parties received before the Notice was dispatched.

	21.2
	Unless
there is evidence that it was received earlier, a Notice is deemed given if:

	21.2.1
	delivered
personally, when left at the address referred to in clause 21.1;

	21.2.2
	sent
by mail, except air mail, two (2) Business Days after posting it;

	21.2.3
	sent
by air mail, six (6) Business Days after posting it; and

	21.2.4
	sent
by fax, when confirmation of its transmission has been recorded by the sender's fax machine. 

13

 

	21.3
	The
addresses referred to in clause 21.1 are: 

	Samsonite Japan Co., Ltd.:	 	Akasaka Edosei Building 4th Floor, 10-8

Akasaka 7-chome, Minato-ku

Tokyo 107-0052, Japan

Fax No: (813) 5545-6771
	

Attention:	
 	

Jun Morimoto
	

Samsonite Europe NV:	
 	

Westerring 17, 9700 Oudenaarde, Belgium

Fax No: (32) 5531-5660
	

Attention:	
 	

Caroline Giraldo
	

ESY Luggage Management

LPS Investment Limited Partnership:	
 	

Marunouchi 2-2-2, Chiyoda-ku,

Tokyo 100-0005, Japan

Fax No: (813) 5220-1267
	

Attention:	
 	

Yumiko Kawaguchi

22.   GOVERNING LAW AND ARBITRATION  

	22.1
	This
Agreement is governed by Japanese law

	22.2
	Any
dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or validity thereof, shall, if the same cannot be amicably settled by the
parties upon the written request of any party, be settled by arbitration. The award of the arbitrators shall be final and binding upon the parties.

	22.3
	The
arbitration shall be held in Tokyo, Japan in accordance with the arbitration rules of the Japan Commercial Arbitration Association in force when such arbitration is commenced
(the "Rules"). The language used for the arbitration shall be English. Unless otherwise agreed by the parties, the number of arbitrators shall be three,
to be nominated by the parties in the manner provided for in the Rules.

	22.4
	If
any of the provisions of this Agreement shall be held by a court or other tribunal of competent jurisdiction to be unenforceable, the remaining portions of this Agreement shall
(unless the unenforceable provision is material to the operation of this Agreement as intended by the parties) remain in full force and effect and such portions shall be enforced to the extent
permissible.

	22.5
	All
costs of the arbitration shall be borne equally by the parties involved. Judgment upon any arbitration award may be entered in any court of law having jurisdiction. 

23.   GOVERNING LANGUAGE  

	23.1
	This
Agreement is in the English language only, which language shall be controlling in all respects. No translation of this Agreement into any other language shall be of any force or
effect in the interpretation of this Agreement or in the determination of the intent of the parties.

	23.2
	Each
notice, demand, request, statement, instrument, certificate or other communication given, delivered or made by a party to any other party under or in connection with this
Agreement shall be in English. 

14

 

24.   COUNTERPARTS  

This
Agreement may be executed in any number of counterparts, each of which when executed and delivered is an original and all of which together evidence the same agreement. 

[Remainder of page left intentionally blank]

15

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorised representatives on the date first written above. 

	

SAMSONITE EUROPE NV	
 	

 
	

By:	
 	

/s/  MARCELLO BOTTOLI      	
 	

 	
 	

 
	 	 	
	 	 	 	 
	Name:	 	Marcello Bottoli	 	 	 	 
	Title:	 	Managing Director	 	 	 	 
	

SAMSONITE JAPAN CO., LTD.	
 	

 
	

By:	
 	

/s/  JUN MORIMOTO      	
 	

 	
 	

 
	 	 	
	 	 	 	 
	Name:	 	Jun Morimoto	 	 	 	 
	Title:	 	Representative Director and Chief Executive Officer	 	 	 	 

16

  

 
 

SCHEDULE 1    
    
    SAMSONITE TRADEMARKS    
    

	Trademark Description
 
	 	Docket

Number
	 	Current

Registration

Number
	 	Current

Application

Number
	 	CL & NO

	AIRFLITE	 	T36570	 	1393579	 	96148/75	 	IN 18
	

AMERICAN TOURISTER	
 	

T70670	
 	

1891804	
 	

58-72296	
 	

IN 18
	

AMERICAN TOURISTER &

DESIGN (CHEVRONS)	
 	

T69220	
 	

4408457	
 	

11-30421	
 	

IN 18

IN 16

IN 25
	

AMERICAN TOURISTER &

DESIGN (GORILLA)	
 	

T71980	
 	

4,042,372	
 	

88482/1995	
 	

IN 18
	

AMERICAN TOURISTER &

DESIGN (I.D. TAG)	
 	

T70680	
 	

881,208	
 	

13546/69	
 	

IN 18
	

DEBONAIR	
 	

T36610	
 	

803863	
 	

252100/78	
 	

IN 18
	

DESIGN (3-CRESCENT SYMBOL)

(ASSOCIATE)	
 	

T29870	
 	

2457153	
 	

87436/89	
 	

IN 18
	

DESIGN (LARK BARS L DEVICE)	
 	

T17300	
 	

2010667	
 	

67521/85	
 	

IN 18
	

DESIGN (LARK BARS RHOMBUS)	
 	

T17280	
 	

2010668	
 	

67525/85	
 	

IN 25
	

EASYTURN	
 	

T70700	
 	

3182216	
 	

84559/93	
 	

IN 18
	

EZ CART (KATAKANA)	
 	

T73250	
 	

4218922	
 	

157112/97	
 	

IN 18
	

FASHIONAIRE	
 	

T36620	
 	

1493258	
 	

62643/1978	
 	

IN 18
	

HORIZON	
 	

T36630	
 	

1527135	
 	

102969/74	
 	

IN 18
	

LARK	
 	

T13960	
 	

881180	
 	

90175/1968	
 	

IN 18
	

LARK	
 	

T52071	
 	

4009646	
 	

64276/94	
 	

IN 42
	

LARK	
 	

T52060	
 	

3089992	
 	

282243/92	
 	

IN 37
	

LARK	
 	

T52070	
 	

T52070	
 	

282244/92	
 	

IN 39
	

PIGGYBACK	
 	

T56000	
 	

3208246	
 	

128600/93	
 	

IN 18
	

PIGGYBACK (KATAKANA)	
 	

T65160	
 	

4189929	
 	

134978/97	
 	

IN 18
	

ROYAL TRAVELLER	
 	

T63470	
 	

4170799	
 	

137589/96	
 	

IN 18
	

SAMMIES	
 	

T29490	
 	

2415425	
 	

123257/89	
 	

IN 18

IN 21
	

SAMSON (DEFENSIVE MARK)	
 	

T21950	
 	

2089674	
 	

70325/86	
 	

IN 18
	

SAMSONITE	
 	

T54230	
 	

3098850	
 	

23583/93	
 	

IN 20
	

SAMSONITE	
 	

T22050	
 	

597760	
 	

206996/82	
 	

IN 18
	

SAMSONITE	
 	

T60210	
 	

3300469	
 	

32452/95	
 	

IN 25
	

SAMSONITE	
 	

T52051	
 	

4001263	
 	

64275/94	
 	

IN 42
	 	 	 	 	 	 	 	 	 

17

 

	

SAMSONITE	
 	

T60330	
 	

4000881	
 	

40669/95	
 	

IN 9
	

SAMSONITE	
 	

T60200	
 	

3300470	
 	

32453/95	
 	

IN 26
	

SAMSONITE	
 	

T60490	
 	

332751	
 	

59064/95	
 	

IN 18
	

SAMSONITE	
 	

T60180	
 	

3325040	
 	

32455/95	
 	

IN 24
	

SAMSONITE	
 	

T60220	
 	

3300468	
 	

32451/95	
 	

IN 18
	

SAMSONITE	
 	

T52040	
 	

3089991	
 	

282241/92	
 	

IN 37
	

SAMSONITE	
 	

T52050	
 	

3096522	
 	

282242/92	
 	

IN 39
	

SAMSONITE	
 	

T31710	
 	

2453786	
 	

2943/90	
 	

IN 16
	

SAMSONITE	
 	

T60450	
 	

4098445	
 	

59065/95	
 	

IN 11
	

SAMSONITE	
 	

T60480	
 	

4082887	
 	

59063/95	
 	

IN 17
	

SAMSONITE	
 	

T60190	
 	

3350512	
 	

32454/95	
 	

IN 16
	

SAMSONITE & DESIGN (BLACK LABEL)	
 	

T75692	
 	

4540786	
 	

2001-037741	
 	

IN 25

IN 18
	

SAMSONITE & SYMBOL (BADGE)	
 	

T66120	
 	

4300921	
 	

79408/98	
 	

IN 18
	

SAMSONITE & SYMBOL (LINEAR)	
 	

T52830	
 	

3223850	
 	

1534/93	
 	

IN 14
	

SAMSONITE & SYMBOL (LINEAR)	
 	

T66090	
 	

4300919	
 	

79408/98	
 	

IN 18
	

SAMSONITE & SYMBOL (LINEAR)	
 	

T60320	
 	

4041246	
 	

40670/95	
 	

IN 9
	

SAMSONITE & SYMBOL (LINEAR)	
 	

T60470	
 	

4098447	
 	

59067/95	
 	

IN 11
	

SAMSONITE & SYMBOL (STACKED)	
 	

T52840	
 	

3223849	
 	

1535/93	
 	

IN 14
	

SAMSONITE & SYMBOL (STACKED)	
 	

T60340	
 	

4041247	
 	

40671/95	
 	

IN 9
	

SAMSONITE & SYMBOL (STACKED)	
 	

T66110	
 	

4300920	
 	

79407/98	
 	

IN 18
	

SAMSONITE & SYMBOL (STACKED)	
 	

T60460	
 	

4098446	
 	

59066/95	
 	

IN 11
	

SAMSONITE (DEFENSIVE MARK)	
 	

T01800	
 	

1830665	
 	

107386/82	
 	

IN 23
	

SATURN	
 	

T36680	
 	

818063	
 	

202265/79	
 	

IN 21
	

SECRETARY	
 	

T36690	
 	

1366733	
 	

139527/74	
 	

IN 21
	

SIGNAT	
 	

T36720	
 	

1363739	
 	

139526/74	
 	

IN 21
	

SILHOUETTE	
 	

T36730	
 	

1750039	
 	

132014/73	
 	

IN 21
	

SPECTRUM	
 	

T48540	
 	

2573730	
 	

100745/91	
 	

IN 21
	

SYMBOL	
 	

T60160	
 	

3308347	
 	

32456/95	
 	

IN 18
	

SYMBOL	
 	

T60140	
 	

3308348	
 	

32458/95	
 	

IN 26
	

SYMBOL	
 	

T52091	
 	

3333442	
 	

110194/94	
 	

IN 42
	

SYMBOL	
 	

T60130	
 	

3338437	
 	

32459/95	
 	

IN 16
	

SYMBOL	
 	

T60150	
 	

4006348	
 	

32457/95	
 	

IN 25
	 	 	 	 	 	 	 	 	 

18

 

	

SYMBOL	
 	

T52090	
 	

3115657	
 	

282246/92	
 	

IN 39
	

SYMBOL	
 	

T52080	
 	

3174861	
 	

282245/92	
 	

IN 37
	

SYMBOL	
 	

T36740	
 	

1375508	
 	

32225/73	
 	

IN 18
	

SYMBOL	
 	

T60170	
 	

3317488	
 	

32460/95	
 	

IN 24
	

SYMBOL	
 	

T52820	
 	

3223851	
 	

1535/93	
 	

IN 14
	

TRAVEL EXPO	
 	

T72148	
 	

4163234	
 	

107991/96	
 	

IN 42
	

TRUNK & CO.	
 	

T72171	
 	

4151361	
 	

117029/96	
 	

IN 18
	

WORLDPROOF	
 	

T64770	
 	

4178321	
 	

116781/97	
 	

IN 18

19

 
 
 

SCHEDULE 2    
    
    SAMSONITE PATENTS    
    

	Title
 
	 	Docket

Number
	 	Case

Type
	 	Application

Date
	 	Application

Number
	 	Grant

Date
	 	Patent

Number
	 	Expiry

Date

	ACCENT 350 SERIES PULLMAN	 	P64845	 	Inv	 	26/07/1999	 	2000-561852	 	Patent Pending
	

AIRSTOP HANDLE	
 	

P68470	
 	

D	
 	

12/07/2001	
 	

24064/2001	
 	

31/05/2002	
 	

1148046	
 	

31/05/2017
	

AIRSTOP UPRIGHT LUGGAGE CASE	
 	

P68471	
 	

D	
 	

12/07/2001	
 	

24062/2001	
 	

31/05/2002	
 	

1148044	
 	

31/05/2017
	

AIRSTOP ZIPPER PULL	
 	

P68472	
 	

D	
 	

12/07/2001	
 	

24063/2001	
 	

31/05/2002	
 	

1148045	
 	

31/05/2017
	

ALUMINUM LUGGAGE CASE (PULLMAN)	
 	

P66920	
 	

D	
 	

25/02/2000	
 	

8116/2000	
 	

15/12/2000	
 	

1101245	
 	

15/12/2015
	

ALUMINUM LUGGAGE CASE (UPRIGHT)	
 	

P66921	
 	

D	
 	

25/02/2000	
 	

8117/2000	
 	

15/12/2000	
 	

1101246	
 	

15/12/2015
	

BIG WHEEL	
 	

P64560	
 	

D	
 	

27/03/1998	
 	

8411/1998	
 	

04/06/1999	
 	

1048487	
 	

04/06/2014
	

EGG BOX MODULAR LUGGAGE	
 	

P50350	
 	

Inv	
 	

20/05/1992	
 	

151264/1992	
 	

19/09/2003	
 	

3472840	
 	

20/05/2012
	

ENIGMA ATTACHE CASE	
 	

P66251	
 	

D	
 	

25/11/1999	
 	

32361/1999	
 	

15/12/2000	
 	

1101251	
 	

15/12/2015
	

ENIGMA LOCK	
 	

P66250	
 	

D	
 	

25/11/1999	
 	

32360/1999	
 	

15/12/2000	
 	

1101250	
 	

15/12/2015
	

EPSILON PULLMAN	
 	

P60582	
 	

Inv	
 	

14/07/1995	
 	

505287/1996	
 	

Patent Pending
	

ERGONOMIC BACKPACK	
 	

P68011	
 	

D	
 	

24/11/2000	
 	

37476/2000	
 	

02/11/2001	
 	

1129680	
 	

02/11/2016
	

F'LITE UPRIGHT WHEEL HANDLE	
 	

P68825	
 	

D	
 	

18/09/2001	
 	

31070/2001	
 	

31/05/2002	
 	

1148051	
 	

31/05/2017
	

FEMALE ATTACHE	
 	

P64236	
 	

Inv	
 	

26/07/1999	
 	

2000-562280	
 	

Patent Pending
	

FOLDING HANGER	
 	

P65260	
 	

Inv	
 	

16/04/1998	
 	

544354/1998	
 	

Patent Pending
	

FOLDING HANGER	
 	

P65880	
 	

D	
 	

13/08/1999	
 	

21719/1999	
 	

23/06/2000	
 	

1083106	
 	

23/06/2015
	

GSI WHEEL HOUSING	
 	

P65480	
 	

D	
 	

24/03/1999	
 	

7186/1999	
 	

31/03/2000	
 	

1074152	
 	

31/03/2015
	

HARDLITE ATTACHE DESIGN	
 	

P68624	
 	

D	
 	

10/08/2001	
 	

26839/2001	
 	

31/05/2002	
 	

1148050	
 	

31/05/2017
	

HARDLITE FRAME TO SHELL PROCES	
 	

P68360	
 	

Inv	
 	

18/10/2000	
 	

530984/2001	
 	

Patent Pending
	

INNOVATIVE PIGGYBACK	
 	

P27800	
 	

Inv	
 	

14/04/1988	
 	

503900/198	
 	

14/11/1997	
 	

2717684	
 	

14/04/2008
	

INNOVATIVE PIGGYBACK II	
 	

P26440	
 	

D	
 	

04/03/1988	
 	

8668/1988	
 	

27/11/1992	
 	

861385	
 	

27/11/2007
	

OYSTER CASE (3 LATCHES)	
 	

P25070	
 	

Inv	
 	

08/10/1986	
 	

505288/1986	
 	

11/03/1997	
 	

2615028	
 	

08/10/2006
	

PRESSFORM SHELL MOLDING	
 	

P50520	
 	

Inv	
 	

15/10/1991	
 	

518482/1991	
 	

25/02/2000	
 	

3035555	
 	

15/10/2011
	

PROFLINE D-RING	
 	

P67770	
 	

D	
 	

24/11/2000	
 	

37481/2000	
 	

25/04/2003	
 	

1176600	
 	

25/04/2018
	

PROFLINE POCKET CONSTRUCTION	
 	

P69972	
 	

Inv	
 	

23/04/2001	
 	

587618/2001	
 	

Patent Pending
	

PROFLINE SNAP HOOK	
 	

P67773	
 	

D	
 	

24/11/2000	
 	

37478/2000	
 	

22/11/2001	
 	

1131514	
 	

22/11/2016
	

STREAMLINE ZIPPER LOCK	
 	

P66542	
 	

D	
 	

03/02/2000	
 	

4982/2000	
 	

10/08/2001	
 	

1122318	
 	

10/08/2016
	

SWING OUT WHEEL	
 	

P65110	
 	

Inv	
 	

04/04/1998	
 	

538838/1998	
 	

Patent Pending
	

TELESCOPING SOFTSIDE	
 	

P58975	
 	

Inv	
 	

17/01/1995	
 	

519229/1995	
 	

Patent Pending
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

20

 

	

TELESCOPING TROLLEY	
 	

P27500	
 	

D	
 	

03/08/1988	
 	

30898/1988	
 	

13/04/1992	
 	

843744	
 	

13/04/2007
	

VERTICAL PUSHMAN	
 	

P63225	
 	

Inv	
 	

20/11/1996	
 	

519962/1997	
 	

Parent Pending
	

XYLEM SOFT BEAUTY CASE	
 	

P69794	
 	

D	
 	

24/07/2002	
 	

22797/2002	
 	

13/06/2003	
 	

1180912	
 	

13/06/2018
	

XYLEM SOFT DUFFEL	
 	

P69793	
 	

D	
 	

24/07/2002	
 	

22796/2002	
 	

25/04/2003	
 	

1176604	
 	

25/04/2018
	

ZIPLITE	
 	

P57700	
 	

D	
 	

16/08/1994	
 	

24650/1994	
 	

09/05/1997	
 	

988706	
 	

09/05/2012

21

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CONTENTS

SCHEDULE 1 SAMSONITE TRADEMARKS

SCHEDULE 2 SAMSONITE PATENTSQuickLinks
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Exhibit 10.31    
    

 
 

VISTULA COMMUNICATIONS SERVICES, INC.    
    

40
Portman Square, London

United Kingdom W1H 6LT 

August 18,
2004 

Mr. Rupert
Galliers-Pratt

Mawley Hall, Cleobury Mortimer

Worcestershire, DY14 8PN

United Kingdom 

Dear
Mr. Galliers-Pratt: 

        Recently
we have discussed with certain officers and directors of Vistula Communications Services, Inc. ("Vistula") the substantial increase in corporate litigation, which can
subject officers and directors to expensive litigation risks and large claims for damages. We have also discussed the uncertainties involved in obtaining and maintaining directors' and officers'
liability insurance on a reasonable basis as well as the potentially limited scope (and risk of non-renewal) of such insurance as can be obtained. 

        You
have informed us that you are concerned about the level of protection available to you as an officer or director of Vistula in the present legal climate, and we understand that your
willingness to serve or to continue to serve as an officer or director of Vistula depends upon, among other things, assurance of adequate protection on a long-term basis. You have also
informed us that you know of no pending or threatened claim against you relating to Vistula. 

        In
order to attract and retain your services as an officer or director of Vistula, Vistula has agreed to indemnify you to the fullest extent of its authority to do so, subject to the
limitations set forth herein. This letter agreement ("Agreement") is intended to set forth our agreement with respect to your right to indemnification by the Company. 

        Vistula
and you (the "Indemnified Party") hereby agree as follows: 

        1.    Indemnification.    Vistula shall indemnify and hold harmless the Indemnified Party if the Indemnified Party is
or was a party to, or is threatened to be made a party to, or is otherwise involved with, any Proceeding (as such term is defined in Section 20(b) hereof): 

          (i)  by
reason of the fact that the Indemnified Party is or was a director, officer, employee or agent of Vistula or any subsidiary of Vistula, 

         (ii)  by
reason of any action or inaction on the part of the Indemnified Party while a director, officer, employee or agent of Vistula or any subsidiary of Vistula, 

        (iii)  by
reason of the fact that the Indemnified Party is or was serving at the request of Vistula as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, or 

        (iv)  by
reason of the fact that the Indemnified Party is or was serving at the request of Vistula in any capacity with respect to any employee benefit plan, 

against
expenses (including reasonable attorneys' fees), judgments, penalties, fines and amounts paid in settlement (if such settlement is approved in writing in advance by Vistula, which approval
shall not be unreasonably withheld or delayed) actually and reasonably incurred by the Indemnified Party in connection with such Proceeding unless Vistula shall establish, in accordance with the
procedures and standards described in Section 4(d)(i) and Section 4(d)(ii) of this Agreement, that the Indemnified Party was not entitled to indemnification, as described
in Section 2. 

        2.    Limitation on Indemnification.    Notwithstanding any other provision of this Agreement, no indemnification
shall be paid under this Agreement with respect to claims involving acts or omissions as to which the Indemnified Party is finally adjudicated (by court order or judgment from which no right of appeal
exists) not to have acted in good faith in the reasonable belief that the Indemnified Party's action was in or not opposed to the best interests of
Vistula or, to the extent that such matter relates to service with respect to an employee benefit plan, in the best interests of the participants or beneficiaries of such employee benefit plan; and no
indemnification shall be paid under this Agreement with respect to any criminal matter in which the Indemnified Party is finally adjudicated (by court order or judgment from which no right of appeal
exists) to have had reasonable cause to believe that the Indemnified Party's action was unlawful. 

        3.    Notice of Resignation; No Employment Agreement.    In consideration of the protection afforded by this
Agreement, the Indemnified Party agrees not to resign voluntarily from the position now held by him with Vistula without first giving to Vistula not less than three weeks' written notice of his
intention to resign. Notwithstanding the foregoing, in the event that (a) Vistula shall have failed at any time to obtain effective director's and officer's liability insurance coverage
(including any umbrella or other supplemental coverage) pursuant to Section 11, all of the terms of which (including without limitation the amount of coverage, deductible or retention amounts,
scope of coverage, coverage of defense costs or settlement amounts, extended discovery period coverage option or coverage exclusions) are satisfactory to the Indemnified Party in his sole discretion,
(b) any such director's and officer's liability insurance coverage, once obtained by Vistula and in effect, or the terms thereof, are altered or modified in any materially adverse respect with
respect to the Indemnified Party, (c) the Indemnified Party determines in his sole discretion that continued service in such position could result in a risk of personal liability to the
Indemnified Party, whether or not such liability would be covered by the indemnification herein or insurance maintained by Vistula, or (d) Vistula shall become bankrupt or insolvent, or shall
have a receiver appointed for its business or assets, or shall not have the resources to pay and discharge its liabilities as they become due; the Indemnified Party's resignation from any position
held by him with Vistula or any subsidiary of Vistula shall be effective immediately upon receipt by Vistula of a written resignation signed by the Indemnified Party referencing such event. Nothing
contained in this Agreement is intended to create or shall create in the Indemnified Party any right to employment (in the case of a director) or continued employment (in the case of an employee). 

        4.    Expenses; Indemnification Procedure.    

        (a)    Advancement of Expenses.    Vistula shall advance all expenses reasonably incurred by the Indemnified Party in
connection with the defense of any Proceeding (but not amounts actually paid in settlement of any such Proceeding, which amounts shall be paid under Section 4(d)). The advances to be made
hereunder shall be paid by Vistula to the Indemnified Party within thirty (30) days following delivery of a written request therefor by the Indemnified Party to Vistula. 

        (b)    Reimbursement to Vistula.    The Indemnified Party by this Agreement undertakes to repay such amounts advanced
only if, and to the extent that, it shall ultimately be determined by a court of competent jurisdiction from which no right of appeal exists that the Indemnified Party is not entitled to be
indemnified by Vistula as authorized by this Agreement. 

        (c)    Notice; Cooperation by the Indemnified Party.    The Indemnified Party shall give Vistula prompt notice of the
commencement of any Proceeding, or the threat thereof against the Indemnified Party, for which indemnification will or could be sought under this Agreement. In addition, the Indemnified Party shall
give Vistula such information and cooperation as it may reasonably require and as shall be within the Indemnified Party's power. If for any reason the Indemnified Party is not an employee of Vistula
at the time of any activities performed by the Indemnified Party in connection with the defense of any Proceeding, Vistula shall compensate the Indemnified Party on the basis of $1,000 per day (or
portion thereof) spent by the Indemnified Party on behalf of such activities at the request of Vistula, and reimburse the Indemnified Party for all related and reasonable
out-of-pocket expenses, such compensation and expense reimbursement to be advanced in the manner set forth in Section 4(a). Vistula shall also compensate the 

Indemnified
Party on the basis of (i) $1,000 per day (or portion thereof) spent by the Indemnified Party as a witness (including preparation sessions) in any Proceeding in which Vistula is a
party (but in which the Indemnified Party is not a party) if the Indemnified Party is not an employee of Vistula at the time of any activities performed by the Indemnified Party as a witness in
connection with such Proceeding; provided, however, that the Indemnified Party shall not be entitled to receive such payment if the Indemnified Party would be otherwise entitled to payment of a per
diem payment from Vistula as a director of Vistula with respect to such activities, together with (ii) the reasonable fees and expenses of any independent counsel retained by the Indemnified
Party in connection therewith. 

        (d)    Procedure for Indemnification.    

        (i)    Any
amounts payable by Vistula pursuant to Section 1 shall be paid no later than sixty (60) days after the resolution (by judgment, settlement, dismissal
or otherwise) of the claim to which indemnification is sought. If a claim is brought by the Indemnified Party under this Agreement, under any statute, or under any provision of Vistula's certificate
of incorporation or by-laws, each as amended or restated from time to time, which provision provides for indemnification, and if such claim is not paid in full by Vistula within such time
period, the Indemnified Party may, but need not, at any time thereafter bring an action against Vistula to recover the unpaid amount of the claim and, subject to Section 18 of this Agreement,
the Indemnified Party shall also be entitled to be reimbursed for the expense (including reasonable attorneys' fees) of bringing such action. It shall be a defense to any such action that the
Indemnified Party has not met the standards of conduct which make it permissible under applicable law for Vistula to indemnify the Indemnified Party for the amount claimed.
Section 4(d)(ii) shall apply to any such determination and the burden of proving such defense shall be on Vistula. In addition, the Indemnified Party shall be entitled to receive interim
payments of expenses pursuant to Section 4(a) unless and until such defense shall be finally adjudicated by court order or judgment from which no further right of appeal exists. Vistula shall
not be liable to indemnify the Indemnified Party under this Agreement for any amounts paid in settlement of any action or claim effected without its written consent, which consent shall not be
unreasonably withheld or delayed. 

        (ii)   It
is the parties' intention (which intention reflects applicable law) that if Vistula contests the Indemnified Party's right to indemnification, the question of the
Indemnified Party's right to
indemnification shall be for the court to decide. The termination of any action or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not create a presumption that the Indemnified Party was not entitled to indemnification under this Agreement. In addition, neither the
failure of Vistula (including its Board of Directors, any committee or subgroup of the Board of Directors or independent legal counsel) to have made a determination that indemnification of the
Indemnified Party is proper under the circumstances, nor any actual determination by Vistula (including its Board of Directors, any committee or subgroup of the Board of Directors or independent legal
counsel) that the Indemnified Party has not met such applicable standard of conduct, shall create a presumption that the Indemnified Party has or has not met the applicable standard of conduct. 

        5.    Notice to Insurers.    If, at the time of the receipt of a notice of a claim pursuant to Section 4(c) of
this Agreement, Vistula has in effect any insurance, including, without limitation, directors' and officers' liability insurance, which may provide for payment of or reimbursement for such claim,
Vistula shall give prompt notice of the assertion of such claim to each issuer of such insurance in accordance with the procedures set forth in the respective policies. Vistula shall thereafter (if it
is appropriate to do so pursuant to the terms of the applicable insurance policy) take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnified Party, all amounts
payable as a result of such Proceeding in accordance with the terms of such policies. 

        6.    Other Sources of Indemnification.    The Indemnified Party shall not be required to exercise any rights against
any other parties (for example, under any insurance policy purchased by Vistula, the Indemnified Party or any other person or entity) before the Indemnified Party enforces this Agreement. However, to
the extent Vistula actually indemnifies the Indemnified Party or advances expenses, Vistula shall be subrogated to (and shall be entitled to enforce) any such rights which the Indemnified Party may
have against third parties. The Indemnified Party shall assist Vistula in enforcing rights against third parties if Vistula pays the Indemnified Party's reasonable costs and expenses of doing so. 

        7.    Selection of Counsel.    In the event Vistula shall be obligated under Section 4(a) of this Agreement to
pay the expenses of any Proceeding involving the Indemnified Party, Vistula shall be entitled to participate in such Proceeding and, to the extent it shall wish, to assume the defense of such
Proceeding, with counsel chosen by Vistula and approved by the Indemnified Party, which approval shall not be unreasonably withheld or delayed, subject to the right of any insurer providing coverage
to the Indemnified Party to select counsel and/or control the Indemnified Party's defense, provided that Vistula shall not settle any claims against the Indemnified Party on terms other than a
monetary payment without the Indemnified Party's consent, which consent shall not be unreasonably withheld or delayed. Upon the delivery to the Indemnified Party of written notice of its election to
assume such defense, approval of such counsel by the Indemnified Party and retention of such counsel by Vistula, Vistula will not be liable to the Indemnified Party under this Agreement for any fees
of counsel or other expenses subsequently incurred by the Indemnified Party in connection with the defense of the same Proceeding, except for fees and expenses incurred by the Indemnified Party as a
consequence of the Indemnified Party's obligation to cooperate with Vistula in the defense of such matters (as set forth in Section 4(c) of this Agreement). Notwithstanding the foregoing, the
reasonable fees and expenses of
the Indemnified Party's counsel shall be paid by Vistula only if (i) the employment of counsel by the Indemnified Party has been previously authorized by Vistula, (ii) the Indemnified
Party shall have reasonably concluded that, under applicable standards of professional responsibility applicable to attorneys, there may be a material conflict of interest between Vistula and the
Indemnified Party in the conduct of such defense or that such counsel and the Indemnified Party have fundamental and material disagreements as to the proper method of managing the litigation,
(iii) Vistula shall not, in fact, have employed counsel to assume the defense of such Proceeding in accordance with the provisions of this Section 7. The Indemnified Party shall have the
right to employ his own counsel in any such Proceeding at the Indemnified Party's expense. 

        8.    Additional Indemnification Rights; Nonexclusivity.    

        (a)    Scope.    In the event of any change, after the date of this Agreement, in any applicable law, statute or rule
which expands the right of a Delaware corporation such as Vistula to indemnify a member of its board of directors or an officer, such changes shall, without any further action by Vistula, be included
within the scope of the indemnification provided to the Indemnified Party by, and Vistula's obligations under, this Agreement. In the event of any change in any applicable law, statute or rule that
limits or restricts the right of Vistula to indemnify a member of its Board of Directors or an officer, such changes shall have no effect on this Agreement or the parties' rights and obligations
hereunder, except to the extent specifically required by such law, statute or rule to be applied to this Agreement. 

        (a)    Nonexclusivity.    The indemnification provided by this Agreement shall not be deemed exclusive of any rights
to which the Indemnified Party may be entitled under Vistula's certificate of incorporation or by-laws, any agreement, any vote of disinterested directors, Delaware law, or otherwise, both
as to action in the Indemnified Party's official capacity and as to action or inaction in another capacity while holding such office. The indemnification provided under this Agreement shall continue
as to the Indemnified Party for any action taken or not taken while serving in an indemnified capacity even though he may have ceased to serve in such capacity at the time any covered Proceeding is
commenced. 

        9.    Partial Indemnification.    If the Indemnified Party is entitled under any provision of this Agreement to
indemnification by Vistula for some or a portion of the expenses, judgments, fines or 

penalties
actually or reasonably incurred by him in the investigation, defense, appeal or settlement of any Proceeding, but not, however, for the total amount thereof, Vistula shall nevertheless
indemnify the Indemnified Party for the portion of such expenses, judgments, fines or penalties to which the Indemnified Party is entitled. 

        10.    Mutual Acknowledgment.    Both Vistula and the Indemnified Party acknowledge that in certain instances,
applicable law or applicable public policy could be construed to prohibit Vistula from
indemnifying its directors and officers under this Agreement or otherwise. Nothing in this Agreement is intended to require or shall be construed as requiring Vistula to do or fail to do any act in
violation of any applicable law. Vistula's inability, as a result of a binding order of any court of competent jurisdiction, to perform its obligations under this Agreement shall not constitute a
breach of this Agreement and Vistula's compliance with any such order shall constitute compliance with this Agreement to the extent applicable. 

        11.    Directors' and Officers' Liability Insurance.    Vistula shall, from time to time, make the good faith
determination whether or not it is practicable for Vistula to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of Vistula
with coverage for losses from wrongful acts, or to ensure Vistula's performance of its indemnification obligations under this Agreement. Among other matters, Vistula may consider the costs of
obtaining such insurance coverage, the protection afforded by such coverage and the restrictions or other terms required by such insurance. In all policies of directors' and officers' liability
insurance, the Indemnified Party shall be named as an insured in such a manner as to provide the Indemnified Party the same rights and benefits as are accorded to the most favorably insured of
Vistula's directors, if the Indemnified Party is a director, or of Vistula's officers, if the Indemnified Party is not a director of Vistula but is an officer, or of Vistula's key employees, if the
Indemnified Party is not an officer or director but is a key employee. Notwithstanding the foregoing, Vistula shall have no obligation to obtain or maintain such insurance if Vistula determines in
good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance
is limited by exclusions so as to provide an insufficient benefit, or if the Indemnified Party is covered by similar insurance maintained by a subsidiary or parent of Vistula. Vistula acknowledges
that such insurance may cover claims by the Indemnified Party beyond the scope of the indemnification provided for herein or permitted under applicable law. 

        Vistula
shall forthwith notify the Indemnified Party in the event that any director's and officer's liability insurance maintained by Vistula is terminated or cancelled or the terms
thereof (including, without limitation the amount of coverage, deductible or retention amounts, scope of coverage, coverage of defense costs or settlement amounts or coverage exclusions) are altered
or modified in any materially adverse respect with respect to the Indemnified Party, and shall at all times supply Indemnified Party with a complete copy of the director's and officer's liability
insurance policy then in effect together into all endorsements thereto. Upon such termination, cancellation, alteration or modification, Vistula shall upon the Indemnified Party's request, at
Vistula's own expense, purchase any available "tail" extension or additional discovery period coverage under the director's and officer's liability insurance policy maintained by Vistula then in
effect; provided, that the cost of such tail extension or additional discovery period coverage (when calculated on an annualized basis) does not exceed the amount equal to 125% of the then applicable
annual premium cost for the director's and officer's liability insurance policy then in effect. 

        12.    Severability.    Nothing in this Agreement is intended to require or shall be construed as requiring Vistula to
do or fail to do any act in violation of applicable law. The provisions of this Agreement shall be severable as provided in this Section 12. If this Agreement or any portion of this Agreement
shall be invalidated on any ground by any court of competent jurisdiction, then Vistula shall nevertheless indemnify the Indemnified Party to the greatest extent permitted by any applicable law or any
applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms. 

        13.    Exceptions.    Any other provision herein to the contrary notwithstanding, Vistula shall not be obligated
pursuant to the terms of this Agreement: 

        (a)    Excluded Acts.    To indemnify the Indemnified Party for any acts or omissions or transactions from which a
director, officer, employee or agent may not be relieved of liability under applicable Delaware law; or 

        (b)    Claims Initiated by the Indemnified Party.    To indemnify or advance expenses to the Indemnified Party with
respect to proceedings or claims initiated or brought voluntarily by the Indemnified Party and not by way of defense, except (i) with respect to proceedings brought to establish or enforce a
right to advancement of expenses or indemnification under this Agreement or any other statute or law and (ii) declaratory judgment or similar proceedings brought to obtain a judicial
interpretation of an applicable statute or regulation, provided that such indemnification or advancement of expenses may be provided by Vistula in specific cases if the Board of Directors has approved
the initiation or bringing of such suit; or 

        (c)    Lack of Good Faith.    To indemnify the Indemnified Party for any expenses incurred by the Indemnified Party
with respect to any proceeding instituted by the Indemnified Party to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by
the Indemnified Party in such proceeding was not made in good faith or was frivolous; or 

        (d)    Insured or Other Reimbursed Claims.    To indemnify the Indemnified Party for expenses or liabilities of any
type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) which have been reimbursed directly to the Indemnified Party, by an
insurance carrier under a policy of directors' and officers' liability insurance maintained by Vistula, or otherwise by Vistula. 

        (e)    Claims under Exchange Act Section 16(b).    To indemnify the Indemnified Party for expenses and the
payment of profits arising from the purchase and sale by the Indemnified Party of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended ("Exchange Act"),
or any similar successor statute. 

        14.    Sale of Assets.    In case of (i) the sale or other disposition (excluding mortgage or pledge) of all or
substantially all of the assets of Vistula to another corporation or entity, or (ii) the merger or other business combination of Vistula with or into another corporation or entity pursuant to
which Vistula will not survive or will survive only as a subsidiary of another corporation or entity, in either case with the stockholders of Vistula prior to the merger or other business combination
holding less than 50% of the voting shares of the merged or combined companies or entities after such merger or other business combination, or in the event of any other similar reorganization
involving Vistula, Vistula shall to the extent possible cause the acquiring corporation or entity to assume the obligations of Vistula under this Agreement with respect to the Indemnified Party. 

        15.    Duration of Agreement.    

        (a)    This
Agreement shall be effective as of the date set forth on the first page and shall apply to acts or omissions of the Indemnified Party which occurred prior to such
date if the Indemnified Party was an officer, director, employee or other agent of Vistula or any subsidiary, or was serving at the request of Vistula or any subsidiary as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise, at the time such act or omission occurred. 

        (b)    This
Agreement shall continue until and terminate upon the later of: (a) ten years after the Indemnified Party has ceased to serve in any of the capacities set
forth in Section 1 above; and (b) the final termination of all pending or threatened actions, suits, proceedings or investigations to which the Indemnified Party may be subject by reason
of his service in any such capacity. The indemnification provided under this Agreement shall continue as to the Indemnified Party even though he may have ceased to be a director, officer, employee or
agent of Vistula. 

        16.    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall constitute an
original. 

        17.    Successors and Assigns.    This Agreement shall be binding upon Vistula and its successors and assigns, and
shall inure to the benefit of the Indemnified Party and the Indemnified Party's spouse, estate, heirs and legal representatives. 

        18.    Attorneys' Fees.    In the event that any action is instituted by the Indemnified Party under this Agreement to
enforce or interpret any of the terms of this Agreement, the Indemnified Party shall be entitled to be paid all court costs and expenses, including reasonable attorneys' fees, incurred by the
Indemnified Party with respect to such action, unless as a part of such action, a court of competent jurisdiction determines that each of the material assertions made by the Indemnified Party as a
basis for such action was not made in good faith or was frivolous. In the event of an action instituted by or in the name of Vistula under this Agreement or to enforce or interpret any of the terms of
this Agreement, the Indemnified Party shall be entitled to be paid all court costs and expenses, including attorneys' fees incurred by the Indemnified Party in defense of such action (including with
respect to the Indemnified Party's counterclaims and cross-claims made in such action), unless as a part of such action the court determines that each of the Indemnified Party's material defenses to
such was made in bad faith or was frivolous. 

        19.    Notices.    All notices, requests, demands and other communications under this Agreement shall be in writing
and shall be deemed duly given if delivered by hand, sent by facsimile transmission with confirmation of receipt, sent via a reputable overnight courier service with confirmation of receipt requested,
or mailed by domestic certified or registered mail with postage prepaid and return receipt requested, to the Indemnified Party at the address on the first page of this Agreement and a copy to
                        and to Vistula at the address below (or at such other address for a party as shall be specified by like
notice), and shall be deemed given on the date on which delivered by hand or
otherwise on the date of receipt as confirmed: 

Vistula
Communications Services, Inc.

40 Portman Square, London

United Kingdom W1H 6LT

Phone: +44 207 495 6702

Fax: +44 207 409 1810

Attention: Chairman and Chief Executive Officer 

With
copies to: 

Paul
Bork, Esq.

Foley Hoag LLP

155 Seaport Boulevard

Boston, Massachusetts 02210

Phone: 617-832-1000

Fax:    617-832-7000 

        20.    Construction Of Certain Words and Phrases.    

        (a)    The
term "expense" shall include all attorneys' fees, retainers, court costs, transcript costs, fees of experts, travel
expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend or investigating a Proceeding. 

        (b)    "Proceeding" shall include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing or any other proceeding whether civil, criminal, administrative or investigative, except one initiated by the Indemnified Party. 

        21.    Choice of Law.    This Agreement shall be governed by and its provisions construed in accordance with the laws
of the State of Delaware without regard to its conflicts of law rules. 

        22.    Expenses.    Vistula shall reimburse the Indemnified Party for all costs and expenses (including reasonable
attorneys' fees and expenses) incurred by the Indemnified Party in connection with the negotiation of this Agreement and the content and issuance of director's and officer's liability insurance
coverage up to a maximum aggregate amount of $10,000. 

[Remainder of page intentionally left blank]

        If
the foregoing correctly sets forth our understanding, I would appreciate your executing the enclosed counterpart of this Agreement and returning it to me. Upon your signature this
letter agreement shall constitute a binding agreement. 

	 	 	Vistula Communications Services, Inc.
	

 	
 	
By:	

/s/  RUPERT GALLIERS-PRATT      
 Chief Executive Officer

	Accepted and agreed to:	 	 	 	 
	

/s/  RUPERT GALLIERS-PRATT      
 Rupert Galliers-Pratt	
 	

 	
 	

 

QuickLinks

Exhibit 10.31

VISTULA COMMUNICATIONS SERVICES, INC.

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