Document:

ANTIK
      DENIM, LLC

    LICENSE
      AGREEMENT

     

    THIS
      AGREEMENT entered
      into by and between ANTIK
      DENIM, LLC, a
      California limited liability company, having its principal office at
5804
      E. Slauson Avenue, Commerce, California
      90040 ("Licensor") and NORTH
      STAR, LLC, a
      California limited liability company having
      its principal office at 433 South
      Spring Street, Suite 301, Los Angeles, California 90013 ("Licensee")
      with
      reference to the following recitals:

     

    WHEREAS,
      Licensor
      is the owner of certain proprietary rights in and to the intellectual property
      (trademarks, copyrights and pending patent) identified in Exhibit D (the
      "Property"). Licensor desires to license the Property; and

     

    WHEREAS,
      Licensee
      wishes to use the "Property" upon and in connection with the manufacture, sale,
      marketing and distribution of the products described in the attached Exhibit
      A.
      The products described in the attached Exhibit A on which or in connection
      with
      which Licensee uses the Property shall hereinafter be referred to as "Licensed
      Product(s)".

     

    NOW,
      THEREFORE, in
      consideration of the mutual promises of this Agreement, the parties agree as
      follows:

    

    1. GRANT
      OF
      LICENSE

     

    (a)  Licensor
      grants to Licensee, subject to the terms and conditions of this Agreement,
      and
      subject to Paragraph 1(b) below, the right within the Territory for those
      Licensed Products
      on Exhibit A: (i) to use the Property upon the Licensed Products described
      in
      the attached
      Exhibit
      A and in connection with the Licensed Products' design, development,
      manufacture, sale, marketing
      and distribution to the general wholesale and retail trade; and (ii) to use
      the
      brand names
      copyrighted and/or trademarked to Licensor to merchandise the Licensed Products.
      Licensor reserves any rights, benefits and opportunities not expressly granted
      to Licensee under this Agreement.

     

    (b)  Licensee
      shall have the immediate right to use the Property in connection with the
      marketing, sale and distribution of the Licensed Products within those countries
      in which the Trademarks
      are presently registered or where applications for registration are pending
      (as
      more fully set
      forth
      in Exhibit E) (collectively "Registered Territory"). In the event Licensee
      wishes to use the Property
      in connection with the marketing, sale and/or distribution of the Licensed
      Products outside of
      the
      Registered Territory, Licensee shall request that Licensor register certain
      Trademarks in such
      territory. Licensor, at its sole costs and expense, agrees to file an
      application for registration of Trademarks
      in the requested territory within thirty (30) days of receipt of Licensee's
      request, and to respond
      to any trademark examiner's inquiries or request for additional information
      within a timely
      manner.

     

    (c)  In
      the
      event that Licensor is unable to register a Trademark in a requested territory
      because of the prior existence of a pending application or registration of
      that
      Trademark in the requested territory (or any mark similar thereto or derivative
      thereof) which is not owned by Licensor, then Licensor shall immediately notify
      Licensee in writing and such inability to register the Trademark shall not
      be
      deemed a breach of this Agreement by Licensor; provided, however, that Licensor
      attempted to file any such application for registration of the Trademark within
      thirty (30) days of receipt of Licensee's request therefore.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.TERRITORY

    

    (a) The
      license granted under this Agreement shall be worldwide (the "Territory").

    

    (b) In
      the
      event that Licensor fails to distribute product within a "Key Economic
Territory"
      within twenty-four (24) months from the inception of this Agreement, Licensor
      shall have the
      option to carve out such Key Economic Territory from this Agreement, which
      action shall not be considered
      a breach of this Agreement by Licensor and, further, which action shall have
      no
      affect on the
      Minimum Guaranteed Royalties and Minimum Guaranteed Net Sales requirements
      as
      set forth in
      this
      Agreement. In the event that Licensor carves out any Key Economic Territory
      from
      the Agreement
      pursuant to this Section 2(b), Licensor shall be entitled to grant a license
      to
      a third party
      in such
      Key Economic Territory under any terms and conditions that Licensor deems
      appropriate under
      the
      circumstances. "Key Economic Territory" shall be defined to mean any of the
      following
      countries: United States, Japan, Korea, China, Canada, United Kingdom, Italy,
      France, Germany, Spain, Australia and Mexico.

    

    (c) In
      the
      event that Licensor fails to distribute product within a "Non-Key Economic
      Territory" within thirty (30) months from the inception of this Agreement,
      Licensor shall have
      the
      option to carve out such Non-Key Economic Territory from this Agreement, which
      action shall
      not
      be considered a breach of this Agreement by Licensor and, further, which action
      shall have no
      affect
      on the Minimum Guaranteed Royalties and Minimum Guaranteed Net Sales
      requirements
      as set
      forth in this Agreement. In the event that Licensor carves out any Non-Key
      Economic Territory from the Agreement pursuant to this Section 2(c), Licensor
      shall be entitled to grant a license to a third party in such Non-Key Economic
      Territory under any terms and conditions that Licensor deems appropriate under
      the circumstances. "Non-Key Economic Territory" shall be defined
      to mean any country that is not defined as a Key Economic Territory in section
      2(b) above.

    

    (d) Notwithstanding
      the provisions of Sections 2(b) and (c) herein, Licensor shall only be entitled
      to carve out from this Agreement any Key Economic Territory or Non-Key
Economic
      Territory if, at the time when such right accrues or at any time thereafter
      when
      Licensor elects
      to
      exercise this right, other products bearing the Property are being sold in
      such
      territory, either
      by
      Licensor or under license to a third party.

    

    3.TERM

    

    (a) The
      parties agree that the term of this Agreement commenced on October
      1,
      2006 and
      will extend for an initial "First
      Term" of
      eighteen (18) months from October 1, 2006 through
      March 31, 2008 and will include four (4) one (1)-year "Extended
      Terms", each
      of
      which is subject
      to Licensee's achievement of Minimum Net Sales as described below, unless this
      Agreement
      is
      earlier terminated pursuant to the provisions hereof.

     

    
      
        
        

      

      
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    (b) Further
      Extensions of Term Beyond the Extended Terms. Upon expiration of the last
      Extended Term, this Agreement shall automatically renew for five (5) one (1)
      year renewal terms (the "Renewal Terms"); provided, however, that Licensee
      shall
      not have breached its obligations under Paragraph 4(c) of this Agreement during
      the preceding final year of the Extended Term or the immediately preceding
      Renewal Term, as the case may be, which breach has not been cured within thirty
      (30) days of notice thereof by Licensor. The Initial Term, Extended Terms and
      Renewal Terms are collectively referred to herein as the "Term".

     

    4. ROYALTIES

     

    (a) Licensee
      shall pay to Licensor royalty ("Royalty" or "Royalties") in accordance with
      the
      schedule set forth on Exhibit E hereto. Such Royalty shall be based on Net
      Sales
      of the Licensed Products. Such Royalty shall accrue when the Licensed Products
      are sold, distributed,
      billed and/or paid for, whichever occurs earlier. "Net Sales" shall mean gross
      sales (the gross
      invoice amount billed customers) of the Licensed Products, less discounts,
      freight charges and allowances
      actually shown on the invoice and, further, less any bona fide returns (net
      of
      all returns
      actually
      made or allowed as supported by credit memorandum actually issued to the
      customers) provided such returns do not exceed ten percent (10%) of gross sales
      per Calendar Year (for purposes of this section, a "Calendar Year" shall mean
      the twelve month period commencing on April
      1
      and ending on March 31 during each year of the Term, except for the First Term
      as defined in
      Section
      3(a), which shall commence on October 1, 2006 and shall end on March 31, 2008).
      Costs incurred
      in the manufacturing, selling, advertising and distribution of the Licensed
      Products shall not
      be
      deducted nor shall any deduction be allowed for any uncollectible accounts
      or
      allowances. No deductions
      shall be made for any discounts not reflected on the invoice(s), or commissions,
      for taxes, fees,
      assessments, impositions, payments or expenses of any kind which may be incurred
      or paid by Licensee
      in connection with the transfer of funds or royalties or with the conversion
      of
      any currency
      into
      United States dollars.

     

    (b) Royalty
      payments shall be made by Licensee to Licensor on all Net Sales. With
      the
      exception of Licensed Products sold as close-outs and irregulars as provided
      in
      Paragraph 8(g),in
      the event that Licensee sells any or all of the Licensed Products to any
      affiliate of Licensee,
      including, without limitation, any individual(s), entity or entities in whole
      or
      in part controlled by Licensee, or having any relationship, contract or
      arrangement with Licensee with respect to any matter
      which affects, or is affected by, this Agreement, the invoice price used to
      determine Net Sales hereunder
      shall be the greater of either (a) the highest wholesale price that Licensee
      receives for such
      styles
      from independent third parties, or (b) the invoice price at which the Licensed
      Products are resold by such individual or entity to an unrelated customer in
      an
      arm's-length transaction.

    

    (c) Guaranteed
      Minimum Royalty:
      Licensee
      agrees to pay to Licensor a non-refundable "Guaranteed Minimum Royalty" listed
      below under "Guarantee", payable in quarterly installments on or before thirty
      (30) days following the end of each Royalty Period (as defined below),
      with the Guaranteed Minimum Royalty for the Initial Term payable upon execution
      of this Agreement,
      and with the next installment of the Guaranteed Minimum Royalty due for the
      quarter
      ending
      June 30, 2008. If, for any reason or no reason, this Agreement is terminated
      prior to full application
      of the payments as set forth below, within thirty (30) days following the
      termination of this
      Agreement, Licensor shall deliver an amount equal to the unused portion of
      any
      the Guaranteed
      Minimum
      Royalty.

     

    
      
        
        

      

      
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              ANNUAL
                PERIOD

            	 	 	
              GUARANTEE

            	 	 	
              MINIMUM
                

              NET
                SALES

            	 
	
              10/01/06-
                03/31/08

            	 	
              $

            	
              180,000.00

            	 	
              $

            	
              4,000,000.00

            	 
	
              04/01/08-
                03/31/09

            	 	
              $

            	
              440,000.00

            	 	
              $

            	
              4,400,000.00

            	 
	
              04/01/09-
                03/31/10

            	 	
              $

            	
              484,000.00

            	 	
              $

            	
              4,840,000.00

            	 
	
              04/01/10-
                03/31/11

            	 	
              $

            	
              532,400.00

            	 	
              $

            	
              5,324,000.00

            	 
	
              04/01/11-
                03/31/12

            	 	
              $

            	
              585,640.00

            	 	
              $

            	
              5,856,400.00

            	 

    

     

    (1)  Minimum
      Net Sales
      - During
      the First Term and for each of the Extended Terms, Licensee agrees to achieve
      "Minimum Net Sales" which sales shall result in minimum earned royalties as
      provided for in Paragraph 4 (c), which minimums shall equate the Licensee's
      Guarantee Minimum Royalty for the basis for renewal of the First Term and each
      of the Extended
      Terms. Licensee acknowledges that failure to pay Guaranteed Minimum Royalties
      would be
      a
      material breach of this Agreement and that failure of Licensee to achieve a
      performance margin
      within
      ten percent (10%) of the Minimum Net Sales is a material breach of this
      Agreement.

    

    (2)  If
      pursuant to Paragraph 3(a), this Agreement is extended beyond the fourth
      (4th)
      Extended Term, and Licensee has not breached the terms and conditions of this
      Agreement
      during the preceding term, Licensee agrees that (a) the Guaranteed Minimum
      Royalty and Minimum
      Net Sales for any year thereafter shall increase by ten percent (10%) over
      the
      immediately preceding
      year. The Guaranteed Minimum Royalty for each year following the fourth
      (4th)
      Extended
      Term
      will be calculated based on the proper ratio of ten percent (10%) of Minimum
      Net
      Sales.

    

    (3)  If
      upon
      termination or expiration of this Agreement the Royalties paid and/or payable
      by
      Licensee to Licensor during the Royalty Period is less than the Guaranteed
      Minimum
      Royalty for such Royalty Period, Licensee shall pay such difference to Licensor;
      provided,
      however,
      if this Agreement is terminated due to Licensor's default, in addition to any
      rights and remedies available to Licensee, Licensee shall only be responsible
      for Royalties earned under Paragraph 4 hereof up to the date of termination
      of
      this Agreement. Royalty payments shall be credited against the Guaranteed
      Minimum Royalty. In the event that during any Term, Extended Term
      or
      Renewal (if
      Renewal
      is included, the
      actual payments for Royalties under Paragraph 4
      hereof
      exceed the Guarantee with respect to that Term, no further Guaranteed Minimum
      Royalty Payments need be made for such Term.

    

    (d)
      Licensor may impose a charge on all overdue payments at a rate equal to the
      lesser
      of
      one and one-half percent (1 I/2%)
      per
      month
      or the maximum rate allowed by law, without
      prejudice to any other rights of Licensor under this Agreement.

     

    (e) All
      of
      Licensee's obligations under this Paragraph 4 shall be performed without any
      right of Licensee to invoke set-offs, deductions and other similar
      rights.

     

    
      
        
        

      

      
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    5.
      ROYALTY PAYMENT AND REPORTING

     

    (a) Licensee
      shall pay the royalties based upon Net Sales in quarterly periods ending
      on
      the last days of June, September, December and March. Payments shall be received
      by Licensor
      on or before the thirty (30) day period after the end of each quarterly period
      (the "Royalty Period").
      The last Royalty Period shall end on the last day of the Term, and the Sell-Off
      Period (as defined
      below), if any, shall be considered its own Royalty Period. At the time of
      payment, Licensee will
      also
      furnish to Licensor by way of electronic reporting forms, to be furnished by
      Licensor, all
      required
      information as requested on the electronic reporting forms (whether or not
      the
      sale of Licensed
      Products are subject to a royalty during the immediately preceding Royalty
      Period) and statements
      of other information as the electronic forms may require. Such electronic
      statements shall be
      furnished to the Licensor whether or not any Licensed Products have been
      shipped, distributed
      and/or
      sold and whether or not actual royalties have been earned during the preceding
      Royalty Period.
      Royalty statements will be certified true and correct by a duly authorized
      officer of Licensee
      if
      Licensee is a corporation or by a principal of Licensee if Licensee is a
      partnership or sole proprietor
      by submitting a hard copy to Licensor or by electronic signature via the
      Internet. Licensee shall
      follow instructions in Paragraph 25 of this Agreement for proper method of
      reporting electronic
      royalty
      statements. All payments to Licensor, as required by this Paragraph will be
      addressed to Licensor
      at the address provided in Paragraph 25. Neither the expiration nor the
      termination of this
      Agreement shall relieve Licensee from its royalty payment
      obligations.

     

    (b) All
      amounts to be paid by Licensee to Licensor under this Agreement shall be payable
      in United States currency according to a method directed by Licensor (including
      by electronic
      transfer) without deduction for taxes (including withholding taxes), levies,
      duties, imports,
      commissions, expenses or charges of any kind.

     

    (c) Neither
      the receipt nor acceptance by Licensor of any royalty payment or royalty
      statement shall prevent Licensor from subsequently challenging the accuracy
      or
      validity of
      such
      payment or statement.

     

    (d) During
      the term of this Agreement and for at least two (2) years following the
termination
      or expiration of this Agreement, Licensee shall maintain at Licensee's principal
      office
      such
      books and records including but not limited to production, inventory and sales
      records (collectively
      "Books and Records") as are necessary to substantiate that (i) all statements
      submitted
      to
      Licensor hereunder were true, complete and accurate, (ii) all royalties and
      other payments due Licensor hereunder shall have been paid to Licensor in
      accordance with the provisions of this Agreement,
      and (iii) no payments have been made, directly or indirectly, by or on behalf
      of
      Licensee to
      or for
      the benefit of any Licensor employee or agent who may reasonably be expected
      to
      influence
      Licensor's decision to enter this Agreement or the amount to be paid by Licensee
      under this Agreement.
      (As used in this Paragraph, "payment" shall include money, property, services,
      and all
      other
      forms of consideration.) All Books and Records shall be maintained in accordance
      with generally accepted accounting principles consistently applied. During
      the
      term of, and for two (2) years after the termination or expiration of this
      Agreement, the Books and Records shall be open to inspection,
      audit and copy by or on behalf of Licensor during business hours, and upon
      reasonable
      notice
      which shall not be less than ten (10) business days. If any such audit reveals
      a
      discrepancy between the royalties owed Licensor and the royalties Licensee
      paid,
      Licensee shall pay such discrepancy,
      plus interest calculated at the lesser of one and one-half percent
      (1 1/2%)
      per
      month
      or the
      maximum rate allowed by law. If such discrepancy is more than fifteen percent
      (15%), Licensee shall
      reimburse Licensor upon demand for the cost of such audit including any
      reasonable attorneys'
      fees in
      connection therewith. If any such audit reveals that Licensee has paid to
      Licensor an overpayment
      of royalties, Licensor shall pay such discrepancy, plus interest calculated
      at
      the lesser of
      one and
      one-half percent (1 1/2%)
      per
      month
      or the maximum rate allowed by law. If such discrepancy
      is more than fifteen percent (15%), Licensor shall reimburse Licensee for any
      reasonable
      attorneys' fees in connection therewith.

     

    
      
        
        

      

      
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    6.
      MARKETING AND DISTRIBUTION

    

    (a)  Any
      promotional material proposed to be used in solicitation or marketing
efforts
      must have the prior approval of Licensor in accordance with the procedures
      in
      Paragraph 8. For
      purposes of this Section 6(a), the following items shall not be deemed
      promotional materials: (a)
      items
      associated with Licensee's corporate identification, such as business cards,
      letterhead, invoices;
      (b) line sheets used internally by Licensee's sales force; (c) look books
      created for use by
      Licensee's sales and marketing departments, but not intended for distribution
      to
      retailers or consumers;
      and (d) press kits consisting of press clippings, tear sheets, copies of
      advertisements, etc.

    

    (b)  Licensee
      shall diligently and continuously market and distribute the Licensed
Products
      in the Territory and will use its best efforts to make and maintain adequate
      arrangements
      for the
      marketing and distribution necessary to meet the demand for the Licensed
      Products in the Territory.

    

    (c)  Licensee
      agrees to use its best efforts to produce quantities of the Licensed
Products
      sufficient to supply promptly the reasonably foreseeable demand for the Licensed
      Products.

    

    (d)  If
      after
      one (1) year, Licensee or its sub-licensees has failed to distribute any
of:
      (i)
      the Exclusive Licensed Products, (ii) the Price-Point Products at the specified
      Price Points on
      Exhibit
      A, or (iii) the Exclusive Distribution Licensed Products at the Distribution
      Channels specified in Exhibit A, then such exclusivity grant with respect to
      the
      product, price point or distribution channel shall become non-exclusive.
      Licensee and its sub-licensees may continue to design, develop, manufacture,
      sell, market, and distribute any such Licensed Products on a non-exclusive
      basis, to fulfill that particular product, price point or distribution channel
      that has become
      non-exclusive by virtue of this provision and Licensor and its third party
      licensees will have all rights
      to
      design, develop, manufacture, sell, market and distribute on a non-exclusive
      basis any such
      Licensed
      Products that Licensee previously held which became non-exclusive by virtue
      of
      this provision.

     

    7.  SALE
      OF
      LICENSED PRODUCTS TO LICENSOR

    

    (a)
      Licensee agrees to sell to Licensor the Licensed Products in such quantities,
      as
      Licensor
      may need in connection with its retail activities. All sales by Licensee to
      Licensor of Licensed Product(s) shall be on terms at least as good as those
      given by Licensee to any of its customers
      such that the Licensor can purchase the Licensed Product(s) from the Licensee
      at
      a price never
      to
      exceed the lowest price offered to any other customer of the Licensee and on
      such other terms
      that are as good as the most favorable terms given to any other customers of
      the
      Licensee.

    

    8.  QUALITY
      AND APPROVAL

    

    (a)  Purpose
      of Quality Control.

    

    In
      order
      to maintain the quality reputation of the Property, all Licensed Products and
      promotional or packaging material relating to the Licensed Products must have
      Licensor's approval, not to be unreasonably withheld.

    

    (b)  Design/Concept
      Approval.

    

    Licensee
      shall submit to Licensor for approval, not to be unreasonably withheld,
      pre-production submittals consisting of concepts, designs, line drawings or
      sketches and finished
      artwork, as the case may be, with respect to any proposed Licensed Products
      or
      promotional or
      packaging material relating to the Licensed Products ("Concept Submittal(s)").
      Once Licensor has approved
      the concept for a Licensed Product, Licensee shall be entitled to create
      prototypes which Licensee
      may then use to solicit orders for such Licensed Products. Licensee shall not
      manufacture,
      or
      distribute any promotional or packaging material relating to the Licensed
      Products before obtaining
      Licensor's approval of Concept Submittals for each such Licensed Product. If
      Licensor fails
      to
      communicate its approval or disapproval of any Concept Submittal within five
      (5)
      days after
      receipt
      of Licensee's submission, Licensor shall be deemed to have disapproved such
      Concept Submittal.

    

    (c)  Pre-Production
      Approvals.

    

    Licensee
      shall submit to Licensor for approval, not to be unreasonably withheld,
      printed or embroidered strike-off or pre-production samples for any proposed
      Licensed
      Products
      ("Sample Submittal(s)"). Licensee shall not manufacture, or distribute any
      Licensed Products before obtaining Licensor's approval of the Sample Submittals
      for each such item. If Licensor fails to disapprove any Sample Submittal within
      five (5) days after receipt of Licensee's submission, Licensor shall be deemed
      to approve such Sample Submittal.

    

    (d)  Quality
      Maintenance.

    

    Licensee
      shall maintain the same quality in the Licensed Products and promotional
      and packaging material relating to the Licensed Products produced as in the
      Sample
      Submittals approved by Licensor. Upon commencement of manufacture and
      distribution of the

     

    
      
        
        

      

      
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    Licensed
      Products and/or promotional and packaging material relating to said Licensed
      Products after
      all
      required approvals have been given by Licensor, Licensee shall submit, at its
      own cost, three
      (3) sets
      of the production samples of the Licensed Products and/or promotional and
      packaging material to Licensor. In the event that a Licensed Product is produced
      in more than one color or finish,
      then Licensee shall provide at least one production sample of each color and/or
      finish, but in
      no event
      shall Licensee provide less than three production samples of any particular
      Licensed Product. If the Licensed Product(s) and/or promotional and packaging
      material utilize third party participant
      artwork, three (3) additional production samples are required for the
      participant, which may
      be
      comprised of assorted colors and/or finishes. Licensor may, from time to time,
      request that Licensee
      submit to Licensor, at Licensee's cost, up to six (3) additional sets of
      production samples of
      any
      Licensed Products and/or promotional and packaging material, which Licensee
      shall submit, provided, however, that Licensee has any such additional
      production samples available.

    

    (e) Changes.

    

    If
      during
      the term of this Agreement there is to be any change in the Licensed
      Products
      or the promotional or packaging material relating to the Licensed Products
      after
      the approval
      of production samples, Licensee must comply with the provisions of Paragraph
      8(b) and
      Paragraph 8(c) for such Licensed Product or material before its manufacture,
      sale, marketing or distribution, as the case may be.

    

    (f) Licensee's
      Production Facilities.

    

    Licensee
      agrees to furnish Licensor promptly with the addresses of Licensee's production
      facilities for the Licensed Products and the names and addresses of the persons
      or entities, if
      any,
      which are manufacturing each of the Licensed Products for Licensee. Licensor
      shall have the right
      upon reasonable notice to Licensee, during regular business hours, at its own
      expense to inspect
      any
      production facilities where any Licensed Products are being manufactured for
      the
      purpose of enabling
      Licensor to determine whether Licensee is adhering to the requirements of this
      Agreement relating
      to the nature and quality of the Licensed Products and the use of the Property
      in connection
      therewith. For purposes of this provision, manufacturing shall be deemed to
      mean
      the process of screenprinting, engraving, decorating or any other process used
      by the manufacturer, to apply or attach
      the Property to Licensed Products, and to trims such as buttons, hangtags and
      labels. It would not
      include: major assembly processes such as cutting and sewing, laundry and
      finishing processes.

    

    (g) Close-Outs, Imperfect,
      Irregulars or Second Quality Items.

    

    Licensee
      shall have the right to sell and distribute Licensed Products which
      are close-outs,
      overruns, imperfect, irregular or second quality through such outlets and in
      such manner as
      Licensee may reasonably determine; provided, however, that such products shall
      be limited to ten percent
      (10%) in the aggregate (i.e., 5% for close-outs/overruns and 5% for imperfect,
      irregular or
      second
      quality items)of first quality sales (measured in number of units sold),
      reconciled on an annual basis, and, in the case of imperfect, irregular or
      second quality items, that Licensee shall remove
      or
      deface labels, tags and other packaging which bears or identifies the Property
      prior to the sale
      thereof and provided further that Licensee shall notify Licensor as to the
      retailers selected for the disposition
      of merchandise. The royalty payable to Licensor in respect of such products
      shall be two and
      one/fourth percent (2.25%) during the First Term and five percent (5%) during
      any Extended or
      Renewal
      Term, which shall be deemed the "Royalty" for such products.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    (h) Damaged,
      Defective or Non-Approved Items.

    

    Licensee
      shall not sell any items that are damaged, defective, or
      non-approved. To
      the
      extent that any such items shall exist during the Term of this Agreement,
      Licensee agrees that
      such
      items will be disposed of in accordance with instructions from
      Licensor.

    

    9. RESTRICTIONS
      ON ADVERTISING AND SALES

    

    (a)  Licensee
      shall not advertise the Property and/or Licensed Products on billboard,
      radio, or television without the prior written consent of Licensor, not to
      be
      unreasonably
      withheld.

    

    (b)  Licensee
      agrees that it shall not tie-in the sale of Licensed Products depicting or
      using
      the Property to the sale of other Licensed Products or services and shall not
      depict or associate
      any other person or character along with the Property for any purpose without
      Licensor's
      prior
      written approval.

    

    (c)  Restrictions
      on Purchaser Usage. Licensee
      shall not knowingly sell Licensed Product(s) to any third party who intends
      to
      create a new or different product by affixing the Licensed Product(s) on or
      incorporating the Licensed Products) in the third parties' product. Any
such
      use
      by a third party is prohibited and the license granted hereunder shall not
      extend as to any such
      product. Licensee shall incorporate into any contract with any third party
      regarding a Licensed
      Product
      the following provision:

    

    "Purchaser
      shall not use this product to create a new and different good. Creation of
      a new
      and different good using the product shall constitute an unauthorized and
      unlawful use of the product."

    

    10.
      OWNERSHIP OF RIGHTS

    

    (a)  Licensor
      is the sole and exclusive owner of all rights, title and interest in and
to
      the
      Property. Licensee shall not (i) use any Property in connection with any
      products or services
      other
      than the Licensed Products in the Territory, (ii) use the Trademarks as part
      of
      any Domain Name,
      or
      (iii) authorize, knowingly sell or distribute, directly or indirectly, the
      Licensed Products, to a
      person
      that intends or is likely to resell or distribute them outside the permitted
      channels set forth
      on
      Exhibit A (with the exception of those sales made pursuant to Section
      8(g)).

    

    (b)  Licensee
      warrants that it has not and does not assert any right in the name of
Antik
      Denim, except for its use as a Licensee hereunder. Licensee agrees never to
      claim any other
      kind of
      property right in the Property and agrees not to make any application for state
      or federal trademarks for any Trademark (or any mark similar thereto or
      derivative thereof), without Licensor's
      prior
      approval.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    (c)  Licensor
      and Licensee agree and intend that all artwork and designs created by Licensee
      ("Licensee Created Artwork") or any other person or entity and used as part
      of
      or in connection with the Licensed Products shall be the property of Licensor
      and shall constitute "Property"
      hereunder, and Licensor shall be entitled to use and license to others the
      right
      to use such artwork
      and designs subject to the provisions of this Agreement; provided, however,
      that
      during the
      Term of
      this Agreement, Licensor shall not grant any licenses to others to use any
      such
      Licensee Created
      Artwork without Licensee's prior consent. Licensee assigns to Licensor the
      copyright in all
      such
      artwork and designs, and any renewals thereof, including all registration and
      applications thereof, and the right to exercise such rights in any manner and
      means now known or hereafter devised
      in perpetuity. Licensee agrees to execute any additional documents proposed
      by
      Licensor to
      effectuate and confirm Licensor's sole and exclusive ownership of all copyright
      in and to such artwork
      and designs, and Licensee irrevocably appoints Licensor as its attorney-in-fact
      to execute any
      and
      all such documents if Licensee fails to return executed copies of such documents
      to Licensor
      within
      five (5) days following submission.

     

    (d)  The
      use
      of any additional trademark, service mark, trade dress, word, name, symbol
      or
      device that is not scheduled on Exhibit D to identify or distinguish any of
      the
      Licensed
      Products
      ("New Mark") shall inure to the benefit of Licensor. The use of any such New
      Mark in connection with any of the Licensed Products shall be made only with
      Licensor's prior approval, which
      approval will be at Licensor's sole discretion. If any New Marks are approved
      by
      Licensor,
      such New
      Marks shall be exclusive with respect to this Agreement such that Licensee
      shall
      not manufacture,
      sell, distribute, promote, or advertise, or authorize the manufacture, sale,
      distribution, promotion,
      or advertisement of, any product (other than the Licensed Products) in
      connection with
      such New
      Marks. All trademark rights in any such New Mark shall belong to Licensor and
      shall constitute
      "Property" hereunder and shall be exercised by Licensee only pursuant to
      Licensor's prior, written
      approval. This Paragraph 10(d) shall not apply to the words, names, symbols
      or
      devices set
      forth on
      Exhibit C.

    

    11.
      GOOD
      WILL AND PROMOTIONAL VALUE

     

    (a)  Licensee
      recognizes the value of the good will associated with the Property and
      acknowledges that the Property and all rights therein and the good will
      pertaining thereto belong
      exclusively to Licensor. Licensee further acknowledges that the Property has
      acquired secondary meaning
      in the mind of the public. Licensee agrees that during this Agreement, or
      thereafter, it will not
      challenge or otherwise contest the title or any rights of Licensor to the
      Property or the validity of
      the
      license being granted.

     

    (b)  Licensee's
      use of the Property shall inure to the benefit of Licensor and that Licensee
      shall not, at any time, acquire any rights in the Property by virtue of any
      use
      it may make of
      the
      Property.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    12.
      INFRINGEMENTS

    

    Licensee
      shall assist Licensor in the enforcement of any rights of Licensor in the
      Property. Licensor may commence or prosecute any claims or actions in its own
      name or in the name of Licensee or join Licensee as a party thereto. Licensee
      shall promptly notify Licensor in writing
      of any infringements, misappropriations, or other violations by third parties
      of
      the Property,
      which
      may come to Licensee's attention. Licensor shall have sole right to determine
      whether any action
      shall be taken on account of any infringement, misappropriation or violation.
      Licensee shall not
      contact the third party, make any demands or claims, institute any suit or
      take
      any other action on account
      of such infringements without first obtaining the prior written permission
      of
      Licensor. All
      costs
      and expenses, including attorneys' fees, incurred in connection with any suit
      instituted by Licensee without the consent of Licensor shall be borne solely
      by
      Licensee.

    

    13.
      COOPERATION WITH LICENSOR

    

    (a)  Licensee
      agrees to cooperate with Licensor in the prosecution of any trademark
      or copyright application that Licensor may desire to file, or in the conduct
      of
      any litigation
      relating
      to the Property. Licensee shall supply to Licensor such samples, containers,
      labels, sales information
      and similar material and, upon Licensor's request, shall procure evidence,
      give
      testimony and
      cooperate with Licensor as may reasonably be required in connection with any
      such application
      or
      litigation.

    

    (b)  With
      respect to all claims and actions, including actions in which Licensee is
joined
      as
      a party, Licensor shall have the sole right to employ counsel of its choosing
      and to direct handling
      of the litigation and any settlement thereof. Licensor shall be entitled to
      receive and retain
      all
      amounts awarded as damages, profits or otherwise in connection with such
      actions. Upon Licensor's
      request, Licensee shall assist Licensor in the enforcement of any rights of
      Licensor in the Property,
      and Licensor shall reimburse Licensee for its reasonable expenses incurred
      as a
      result of
      such
      cooperation.

    

    14.
      TRADEMARK, PATENT AND COPYRIGHT PROTECTION

    

    (a)  The
      license is conditioned upon Licensee's complete compliance with the provisions
      of the trademark and copyright laws of the United States and the foreign country
      or countries in the licensed Territory.

    

    (b)  Licensor
      has the right but not the obligation, to obtain at its cost appropriate
      trademark, patent and copyright protection for the Property, the Licensed
      Products and/or the promotional and packaging material, and Licensee shall
      reasonably cooperate with Licensor in connection therewith. Licensee shall
      not
      register any of the Property in any manner.

    

    (c)  Licensee
      shall cooperate with Licensor in protecting the Property. In the event
that
      any
      claim or problem arises with respect to the Property in the licensed Territory,
      Licensee shall
      promptly
      advise Licensor in writing of such event. Licensor has no obligation to take
      any
      action whatsoever in the event that any claim or problem arises with respect
      to
      the protection of the

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    Property.
      Licensor shall have the right, however, to proceed with counsel of its own
      choice.

    

    (d)
      Licensee shall not at any time apply for any copyright, trademark or patent
      protection, which would affect Licensor's ownership of any rights in the
      Property nor file any documents
      with any governmental authority or take any other action which could affect
      Licensor's
      ownership of the Property, or aid or abet anyone else in doing so.

    

    15.
      COMPLIANCE WITH GOVERNMENT STANDARDS

    

    Licensee
      represents and warrants that the Licensed Products, their packaging,
marketing,
      sales and distribution shall meet or exceed all Federal, State and local laws,
      ordinances, standards,
      regulations and guidelines pertaining to such Licensed Products or activities,
      including, but
      not
      limited to, those pertaining to product safety, quality, labeling and propriety.
      Licensee agrees
      that it
      will not package, market, sell or distribute any Licensed Products or cause
      or
      permit any Licensed Products to be packaged, marketed, sold or distributed
      in
      violation of any such Federal, State or local law, ordinance, standard,
      regulation or guideline.

    

    16.
      IDENTIFICATION

    

    Licensee
      shall place its own name or identifying mark on the Licensed Products or
      on their
      packaging in an inconspicuous manner so that Licensor can readily identify
      the
      source of the
      Licensed
      Products. Licensee shall utilize security yarns in its woven labels in
      accordance with instructions from Licensor. Licensor may institute a different
      identification program for security purposes, subject to Licensor's approval,
      which approval shall not be unreasonably withheld.

    

    17.
      TRADEMARK AND COPYRIGHT NOTICES

    

    (a) All
      Licensed Products and all promotional and packaging material shall contain
      appropriate legends, markings and/or notices as required from time to time
      by
      Licensor, to
      give
      notice to the public of Licensor's rights. Unless otherwise expressly approved
      in writing by Licensor,
      each usage of the Trademarks shall be followed by either "TM", or the Trademark
      Notice Symbol
      "©". Licensor will provide Licensee with the appropriate legend for each
      Licensed Product
      and/or
      promotional and packaging material during the approval process.

    

    (b) Licensee
      shall use no other markings, legends and/or notices on or in association
      with the Licensed Products or on or in association with the promotional and
      packaging
      material
      other than the specified legend and Licensee's legend, without first obtaining
      Licensor's prior express written approval.

    

    18.
      NOTICE OF FIRST USE

    

    Licensee
      shall upon Licensor's request provide Licensor with a duplicate original
      of
      each of
      the first three (3) invoices for shipments for sale of the Licensed Products
      in
      interstate commerce.
      Licensee shall keep records of and advise Licensor when each of the Licensed
      Products is
      first
      sold in each country in the licensed Territory.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    19.  MANUFACTURER'S
      AGREEMENT

    

    Licensee
      shall not contract with any manufacturer as defined in Paragraph 8(f)
without
      Licensor's authorization. In the event that Licensee desires to have a
      manufacturer produce one
      or
      more Licensed Products, or any component thereof, Licensee shall provide
      Licensor with the name,
      address, telephone number and name of the principal contact of the proposed
      manufacturer. Licensor
      must approve any manufacturer, and the manufacturer must execute in duplicate
      original an
      agreement identical to the attached Exhibit B ("Manufacturer's Agreement")
      prior
      to use of the Property. Licensee shall deliver the original copies of the
      Manufacturer's Agreement signed by Licensee
      and the proposed manufacturer to Licensor, and Licensee shall obtain Licensor's
      signature
      on the
      Manufacturer's Agreements before the manufacturer of Licensed Products. In
      addition, Licensee shall remain fully responsible for ensuring that the products
      are manufactured in accordance
      with the terms herein including approval and the Licensee shall take the steps
      necessary to
      ensure
      that the manufacturer: (a) produces the product only as and when directed by
      Licensee; (b) does
      not
      distribute, sell or supply the Licensed Products to any person or entity other
      than Licensee;
      and (c)
      does not delegate in any manner whatsoever its obligations with respect to
      the
      Licensed Products. Licensee's failure to comply with this Paragraph 19 may
      result in termination of this Agreement
      and confiscation and seizure of products. Licensor hereby reserves the right
      to
      terminate
      in its
      discretion the engagement of any manufacturer at any time.

    

    20.  TERMINATION

    

    (a) Without
      prejudice to any other rights that Licensor may have, Licensor may
      at any
      time
      give written notice of termination effective immediately (unless otherwise
      specified herein),

    

    (1)  If
      within
      one hundred eighty (180) days of execution of this Agreement, Licensee shall
      not
      have begun the bona fide distribution and sale of the Licensed Products in
      commercially reasonable quantities throughout the Territory;

    

    (2)  If
      Licensee shall fail for sixty (60) consecutive days to continue the bona fide
      distribution and sale of the Licensed Products in commercially reasonable
      quantities throughout the Territory;

    

    (3)  If
      Licensee shall fail to timely make any payment due hereunder or submit any
      statement required hereunder and such failure to pay or submit a statement
      is
      not remedied within fifteen (15) days of receipt of written notice
      thereof;

    

    (4)  If
      Licensee shall be unable to pay its obligations when due, shall make any
      assignment for the benefit of creditors, shall file a voluntary petition in
      bankruptcy, shall be adjudicated bankrupt or insolvent, shall have any receiver
      or trustee in bankruptcy or insolvency appointed for its business or property,
      or shall make an assignment for the benefit of creditors;

    

    (5)  If
      the
      quality in any Licensed Products is lower than in the approved samples referred
      to in Paragraph 8 and such failure to maintain the same quality in the
      Licensed

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    Products
      as in the approved samples is not remedied within thirty (30) days of receipt
      of
      written notice thereof ;

     

    (6)  If
      Licensee manufactures, sells, markets, distributes or uses any Licensed
      Products or promotional or packaging material relating to the Licensed Products
      without
      Licensor's approval as provided for by this Agreement or continues to
      manufacture, sell, market, distribute
      or use any Licensed Products or promotional or packaging material relating
      to
      the Licensed Products
      if such breach is not remedied within thirty (30) days of receipt of written
      notice thereof;

     

    (7)  If
      Licensee becomes subject to any voluntary or involuntary order of any
      governmental agency involving the recall of any Licensed Products or promotional
      or packaging
      material
      relating to the Licensed Products because of safety, health or other hazards
      or
      risks to the public;

     

    (8)  If
      Licensee breaches any provision of this Agreement relating to the unauthorized
      assertion of rights in the Property, and such breach is not remedied within
      thirty (30)
      days of
      receipt of written notice thereof;

     

    (9)  If
      Licensee breaches any provision of Paragraph 26 relating to assignment and
      sub-licenses

     

    (10)  If
      Licensee fails to obtain or maintain insurance coverage as required by the
      provisions of this Agreement;

     

    (b)  If
      reasonable grounds for insecurity arise with respect to Licensee's performance
      of this Agreement, Licensor may in writing demand adequate assurance of due
      performance.
      Until Licensor receives such assurance in writing, it may suspend its
      performance of
      this
      Agreement. If Licensor does not receive such written assurance within five
      (5)
      days after Licensee's
      receipt of its request thereof or within such other shorter period of time
      as
      Licensor may reasonably
      designate under the circumstances, the failure by Licensee to furnish such
      assurance will
      constitute a material breach, which entitles Licensor to immediately terminate
      this Agreement.

     

    (c)  Without
      prejudice to any other rights, which Licensee may have, Licensee may terminate
      this Agreement upon thirty (30) days written notice to Licensor of the
      occurrence of a material breach of any of the material terms, covenants,
      representations and/or warranties of this Agreement
      which breach is not remedied by Licensor to Licensee's reasonable satisfaction
      within
      such
      thirty (30) day notice period.

     

    (d)  Licensee
      acknowledges that breach or threatened breach of this Agreement will
      result in immediate and irremediable damage to Licensor and that money damages
      alone would be
      inadequate to compensate Licensor. Therefore, in the event of a breach or
      threatened breach of this
      Agreement by Licensee, Licensor may, in addition to other remedies, immediately
      obtain and enforce
      injunctive relief prohibiting the breach or threatened breach of this Agreement
      by Licensee or
      infringement of any rights of Licensor. If Licensor employs attorneys or incurs
      other expenses in connection
      with obtaining injunctive relief, Licensee shall reimburse Licensor for its
      reasonable attorneys' fees and other expenses.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    21.
      POST-TERMINATION AND EXPIRATION RIGHTS AND OBLIGATIONS

     

    (a)  If
      this
      Agreement is terminated for any cause under Paragraph 20(a) or (b), Licensee
      and
      Licensee's receivers, representatives, trustees, agents, administrators,
      successors or permitted
      assigns shall have no right after the effective date of termination to
      manufacture, sell, ship, market
      or
      distribute Licensed Products or to use any promotional and packaging material
      relating to the
      Licensed Products. Licensee's final statement and payment of royalties (and
      all
      other amounts due
      hereunder) including the difference, if any, between all royalties based upon
      Net Sales for the
      annual
      period and the Guaranteed Minimum Royalty for such annual period, shall be
      received by Licensor
      within ten (10) days after the effective date of termination. Licensee shall
      send all payments
      and
      statements required by Paragraph 21(a) to Licensor at the address in Paragraph
      24.

     

    (b)  After
      expiration of the Term of this Agreement or the termination of this Agreement
      under any provision other than Paragraph 20(a) or (b), Licensee may sell, ship,
      market and
      distribute Licensed Products which are on hand or in the process of manufacture
      at the date of expiration
      or at the time notice of termination is received for a period of one hundred
      eighty (180) days
      after the date of expiration or the date of notice of termination ("Sell-Off
      Period"), as the case
      may be,
      provided that the Royalties with respect to that period are paid and the
      appropriate statements
      for that period are furnished. Licensee shall make no post-termination sales
      to
      affiliates, except
      in
      the ordinary course of its business operations. For purposes of this
      subparagraph, "affiliate" shall
      mean (i) any entity having any relationship, contract, or arrangement with
      Licensee whereby Licensee
      has or exercises or has the power to exercise, directly or indirectly, any
      manner, control, direction,
      or restraint over the business or operations of such entity, or (ii) Licensee
      and such entity are
      subject to common or mutual control or direction by some other entity. Any
      Licensed Products not
      sold,
      shipped and distributed by Licensee within this one hundred eighty (180) day
      period must
      be
      destroyed or reprocessed so that the Property is no longer present in whole
      or
      in part on the Licensed
      Products or on their packaging material. Upon Licensor's request, Licensee
      shall
      provide evidence
      satisfactory to Licensor of such destruction or reprocessing of remaining
      Licensed Products
      or
      packaging material. After expiration of the Sell-Off Period, Licensee's final
      statement and payment
      of royalties including the difference, if any, between all royalties based
      upon
      Net Sales and
      the full
      Guaranteed Minimum Royalty shall be received by Licensor within thirty (30)
      days
      after expiration of the Sell-Off Period. Licensee shall send all payments and
      statements required by Paragraph
      21(b) to Licensor at the address in Paragraph 24. To maintain the integrity
      of
      the Property
      and the
      reputation and goodwill associated therewith, Licensee shall not sell or
      distribute any Licensed Products through "going out of business," consignment,
      liquidation, or auction sales or similar
      methods, except with the prior written consent of Licensor or as otherwise
      provided in this
      Agreement.

     

    (c)  After
      the
      expiration or termination of this Agreement and except as provided in Paragraph
      21(b), all rights granted to Licensee under this Agreement shall forthwith
      revert to Licensor,
      and Licensee shall refrain from further use of the Property or any further
      reference to the Property,
      either directly or indirectly, or from use of any marks or designs similar
      to
      the Property in connection
      with the manufacture, sale, marketing or distribution of Licensee's products.
      Licensee
      also
      shall turn over to Licensor all molds, silk-screens and other materials, which
      reproduce the Property or shall give evidence satisfactory to Licensor of their
      destruction. Licensee shall be responsible
      to Licensor for any damages caused by the unauthorized use by Licensee or by
      others of
      such
      molds, silk-screens or reproduction materials which are not turned over to
      Licensor.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    (d)  Licensee
      acknowledges that any breach or threatened breach of any of Licensee's covenants
      in this Agreement relating to the Property, including without limitation,
Licensee's
      failure to cease the manufacture, sale, marketing or distribution of the
      Licensed Products
      or the
      promotional and packaging material relating to the Licensed Products at the
      termination or expiration
      of this Agreement, except as provided in Paragraph 21(b), will result in
      immediate and irreparable
      damage to Licensor and to the rights of any subsequent licensee of Licensor.
      Licensee acknowledges
      and admits that there is no adequate remedy at law for any such breach or
      threatened breach,
      and Licensee agrees that in the event of any such breach or threatened breach,
      Licensor shall be
      entitled to injunctive relief and such other relief as any court with
      jurisdiction may deem just and
      proper.

    

    (e)  Within
      twenty (20) business days after expiration or notice of termination of
this
      Agreement, as the case may be, Licensee shall deliver to Licensor a written
      report indicating the
      number
      and description of the Licensed Products, which it had on hand or in the process
      of manufacture
      as of the date of expiration or at the time termination notice is received.
      Licensor may conduct
      a
      physical inventory in order to verify such report. If Licensee fails to submit
      the required written
      report or refuses to permit Licensor to conduct such physical inventory,
      Licensee shall forfeit its
      rights under this Agreement to dispose of such inventory. In addition to such
      forfeiture, Licensor
      shall
      have recourse to all other available remedies.

    

    22.
      INDEMNITY AND INSURANCE

    

    (a)  Licensee
      acknowledges that it will have no claims against Licensor for any damage
      to
      property or injury to persons arising out of the operation of Licensee's
      business. Licensee agrees
      to
      indemnify, hold harmless and defend Licensor with legal counsel acceptable
      to
      Licensor
      from and
      against all demands, claims, injuries, losses, damages, actions, suits, causes
      of action, proceedings,
      judgments, liabilities and expenses, including reasonable attorneys' fees,
      court
      costs and
      other
      legal expenses, arising out of or connected with the Licensed Products, the
      promotional or packaging material relating to the Licensed Products, Licensee's
      methods of manufacturing, marketing,
      selling or distributing the Licensed Products, or any breach by Licensee of
      any
      provision of
      this
      Agreement or of any warranty made by Licensee in this Agreement. No approval
      by
      Licensor
      of any
      action by Licensee shall affect any right of Licensor to indemnification
      hereunder.

    

    (b)  Licensee
      shall obtain and maintain during the term of this Agreement and the one hundred
      eighty (180) day disposal period, if any, provided for in Paragraph 21(b),
      comprehensive
      general liability insurance coverage, including product liability insurance,
      naming
      Licensor
      as additional insured. Such insurance shall be underwritten by insurers
      satisfactory to Licensor
      and shall be written for limits of not less than Two Million Dollars
      ($2,000,000.00) each occurrence
      combined, for bodily injury, including death and property damage. Licensee
      shall
      furnish Licensor
      promptly upon the execution of this Agreement with a certificate of insurance
      stating thereon the limits of liability, the period of coverage, the parties
      insured (including Licensee and Licensor),
      and the insurer's agreement not to terminate or materially modify such insurance
      without
      endeavoring to notify Licensor in writing at least ten (10) days before such
      termination or modification.
      Licensee's coverage shall be primary, and any insurance maintained by Licensor
      shall
      be in
      excess of, and not contributing to, the insurance provided by
      Licensee.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    (c)  Licensee
      has the responsibility to procure legally sufficient permission from
the
      copyright owner(s) of photographs, illustrations, artwork, and recorded and
      published music used in
      conjunction with the manufacture and distribution of the Licensed Products.
      Licensee indemnifies
      and
      holds Licensor harmless from any and all claims made by third parties with
      respect to copyrighted material used by Licensee that is licensed from, or
      owned
      by, a party other than Licensor.

    

    (d)  The
      existence of the insurance coverage shall not mitigate, alter or waive the
      indemnity
      provisions of Paragraph 22(a). Licensor shall not be responsible for the payment
      of the
      premiums, charge taxes, assessments or other costs for the
      insurance.

    

    23.  REPRESENTATION,
      WARRANTY AND INDEMNIFICATION

    

    Licensor
      warrants and represents that: (a) Licensor (and the officers executing on its
      behalf) has
      full
      right and power to enter into this Agreement; (b) neither the execution and
      the
      delivery of this
      Agreement, nor the license granted herein, will violate the terms of any
      existing licenses with third
      parties;(c) so long as this Agreement remains in effect, Licensor shall not
      commit any act or
      enter
      into any agreement with any third party which is inconsistent or in conflict
      with this Agreement;
      (d) the Property and any and all other materials delivered by Licensor to
      Licensee shall be
      original or under a valid license to Licensee with right to provide the License
      as set forth herein to
      Licensee; and (e) neither the execution and performance of this Agreement by
      Licensor nor the
      license
      granted herein, infringes, misuses, misappropriates or conflicts with the
      rights, including copyright,
      trademark and other intellectual property rights or contract rights, licensed
      to
      or from, or owned
      by,
      a party other than Licensor. Licensor shall defend, indemnify and hold harmless
      Licensee,
      its
      parent, affiliated companies and partners and their respective officers,
      directors, members, employees
      and agents from and against any and all liabilities, claims, obligations, suits,
      judgments, amounts
      paid in settlement, costs and expenses (including, without limitation,
      reasonable attorneys fees,
      court costs and expenses) which Licensee may incur as a result of a breach
      by
      Licensor of any
      its
      representations, warranties, covenants or undertakings as set forth in this
      Agreement.

    

    24.  NOTICES

    

    Unless
      otherwise specified herein, all notices, requests, demands, payments,
      consents
      and
      other communications hereunder shall be transmitted in writing and shall be
      deemed to have been duly given (i) when hand delivered, (ii) upon delivery
      when
      sent by express mail, courier, overnight
      mail or other overnight or next day deliver service, (iii) when received/sent
      by
      facsimile provided
      that a copy thereof is contemporaneously delivered pursuant to Paragraph 24
      (i),
      (ii), or (iv) hereof,
      or (iv) three (3) days after the date mailed when sent by registered or
      certified United States mail,
      postage prepaid, return receipt requested, or when deposited with a public
      telegraph company
      or
      immediate transmittal, charges prepaid, addressed as follows:

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Licensor:                               
      ANTIK
      DENIM, LLC 5804 

    E.
      Slauson Avenue Commerce, CA 90040 Attn: 

    Mr.
      Paul
      Guez, CEO

    

    And,
      in
      the case of Licensee, to:

    

    NORTH
      STAR, LLC.

    433
      South
      Spring Street, Suite 301 Los Angeles, California 90013 Attn: Mr. Serge Benat,
      President

    

    Licensor
      or Licensee may change its address by giving written notice of such change
      of
      address
      to the
      other.

    

    
      25.  PAYMENT
        AND STATEMENT ADDRESS Licensee
        shall send payments and statements to:

    

     

                                                  
      ANTIK DENIM, LLC 5804
      E.
      Slauson Avenue
      Commerce, CA 90040

    

    26.  ASSIGNMENT
      AND SUBLICENSE

    

    The
      license granted hereunder is personal to Licensee, and Licensee shall not
      assign
      or
      transfer any of its rights under this Agreement or delegate any of its
      obligations under this Agreement (whether voluntarily, by operation of law,
      change in control or otherwise) without Licensor's prior written approval,
      not
      to be unreasonably withheld. Any attempted assignments, transfer,
      or delegation by Licensee without such approval shall be void and a material
      breach of this Agreement.
      A change in the majority ownership or a material change in the management of
      Licensee
      shall
      constitute an assignment of rights under this Paragraph requiring Licensor's
      prior approval. Licensor is entering into this Agreement with Licensee based,
      in
      substantial part, on the unique attributes, which Licensee and its business
      offer, in view of Licensee's management, products and methods
      of operation. Subject to the foregoing, this Agreement will be binding upon,
      and
      inure to the
      benefit
      of, the parties and their respective successors and assigns.

     

    27.  APPROVALS

    

    Any
      approval or consent required by this Agreement to be obtained from Licensor
      must
      be in writing and shall not be unreasonable withheld, conditioned or
      delayed.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    28.  COSTS
      AND
      EXPENSES

    

    Each
      party shall bear and pay all costs and expenses arising in connection with
      its
      performance of this Agreement.

    

    29.  INDEPENDENT
      CONTRACTOR

    

    Licensee
      is an independent contractor and not an agent, partner, joint venturer,
affiliate
      or employee of Licensor. No fiduciary relationship exists between the parties.
      Neither party shall
      be
      liable for any debts, accounts, obligations or other liabilities of the other
      party, its agents or
      employees. Licensee shall have no authority to obligate or bind Licensor in
      any
      manner. Licensor has
      no
      proprietary interest in Licensee and has no interest in the business of
      Licensee, except to the
      extent
      expressly set forth in this Agreement.

    

    30.  SEVERABILITY

     

    If
      any
      provision of this Agreement shall be determined to be illegal and
      unenforceable by
      any
      court of law or
      any competent
      governmental or other authority, the remaining provisions shall be
      severable and enforceable in accordance with their terms so long as this
      Agreement without such
      terms or
      provisions does not fail of its essential purpose or purposes. The parties
      will
      negotiate in good faith to replace any such illegal or unenforceable provision
      or provisions with suitable substitute
      provisions, which will maintain the economic purposes and intentions of this
      Agreement.

    

    31.  EXHIBITS

    

    All
      references to "Exhibit" or "Exhibits" herein shall mean those Exhibits A
      through H
      attached to this Agreement, which Exhibits, wherever referred to herein, are
      hereby incorporated
      into
      this Agreement as though fully set forth herein.

    

    32.  SURVIVAL

    

    Licensee's
      obligations and agreements under Paragraphs 4, 5, 8, 11, 15, and 19
      shall
      survive
      the termination or expiration of this Agreement.

    

    33.  MISCELLANEOUS

    

    (a)  Captions.

    

    The
      captions for each Paragraph have been inserted for the sake of convenience
      and shall not be deemed to be binding upon the parties for the purpose of
      interpretation
      of this
      Agreement.

    

    (b)  Scope
      and Amendment of Agreement.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

    

    This
      Agreement constitutes the entire agreement between the parties with respect
      to
      the subject matter of this Agreement, supersedes any and all prior and
      contemporaneous negotiations,
      understandings or agreements in regard to the license of the Property in
      connection with
      the
      Licensed Products and is intended as a final expression of their
      agreement.

    

    (c)  Governing
      Law.

    

    This
      Agreement will be deemed to have been executed in the State of California
      and will be construed and interpreted according to the laws of that State
      without regard to
      its
      conflicts of law principles or rules. The parties agree that any legal action
      or
      proceeding with respect
      to this Agreement shall be brought in the United States District Court for
      the
      Central District
      of
      California or, if such court does not have jurisdiction, in any court of general
      jurisdiction in the County of Los Angeles, California. Licensee consents to
      the
      personal jurisdiction of such courts, agrees to accept service of process by
      mail and hereby waives any jurisdictional or venue defenses otherwise available
      to it.

    

    (d)  Attorneys'
      Fees.

    

    If
      either
      party brings any legal action or other proceeding to interpret or enforce the
      terms of this Agreement, or retains a collection agent to collect any amounts
      due under this Agreement, then the prevailing party shall be entitled to recover
      reasonable attorneys' fees and any other costs incurred, in addition to any
      other relief to which it is entitled.

    

    (e)  Interpretation.

    

    The
      parties agree that each party and its counsel has reviewed this
      Agreement and
      the
      normal rule of construction that any ambiguities are to be resolved against
      the
      drafting party
      shall
      not be employed in the interpretation of this Agreement.

    

    (f)  Waiver.

    

    The
      failure of Licensor to insist in any one or more instances upon the performance
      of any term, obligation or condition of this Agreement by Licensee or to
      exercise any right or privilege herein conferred upon Licensor shall not be
      construed as thereafter waiving such term,
      obligation, or condition, or relinquishing such right or privilege, and the
      acknowledged waiver or
      relinquishment by Licensor of any default or right shall not constitute waiver
      of any other default or
      right.
      No waiver shall be deemed to have been made unless expressed in writing and
      signed by an
      authorized officer of Licensor.

    

    (g)  Time
      of the Essence.

    

    Time
      is
      of the essence with respect to the obligations to be performed under this
      Agreement.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    (h)     
      Rights
      Cumulative.

    

    Except
      as
      expressly provided in this Agreement, and to the extent permitted by
      law, any
      remedies described in this Agreement are cumulative and not alternative to
      any
      other remedies available at law or in equity.

    

    (i) [Intentionally
      Deleted.]

    

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Agreement to be executed by their
      authorized representatives on the dates indicated below.

    
      	 	 	 
	 	"LICENSOR"
	 	 
	 	ANTIK DENIM, LLC
	 
 	 
 	 
 
	 	By:  	/s/ Paul
              Guez
	 	 	
              
Paul
              Guez, Chief Executive Officer
	 	 	 
	 	Date:	 
	 	
              

            
	 	 

    

    Date: "LICENSEE"

      

     

    
      
        	 	 	 
	 	NORTH
                STAR,
                LLC
	 	 
	 	 
	 	By:  	Serge
                Benat
	 	 	
                
Serge
                Benat, President
	 	 	 
	 	Date:	1-10-07
	 	
                

              
	 	 

      

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

EXHIBIT
      A

     

    Licensed
      Products

     

    Knit
      apparel and headwear in all categories for men and women

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    
      EXHIBIT
      B

     

    MANUFACTURER'S AGREEMENT

    

    This
      Manufacturer's Agreement is made pursuant to the License Agreement between
      Antik
      Denim, LLC. ("Antik") and the undersigned LICENSEE
      ("Licensee")
      The term of this Agreement shall begin on October
      1, 2006 and end
      on March
      31, 2008, unless
      sooner terminated
      in
      accordance with Paragraph 20 of the License Agreement.

     

    Manufacturing
      Company Name

     

    Manufacturer
      Company Street Address (including, City, State, Zip, Country)

     

    Manufacturing
      Location Street Address (including, City, State, Zip, Country)

     

    Contact
      Person and Telephone and/or Fax Number

     

    List
      the
      Licensed Products you will manufacture (Attach a separate sheet, if necessary
      to
      list all of the Licensed Products you will manufacture)

    

    Manufacturer
      desires to manufacture and sell to Licensee the above listed Licensed Products
      bearing the name intellectual property listed in Exhibit
      D
      (herein after referred to as the "Property"). Such Licensed Products shall
      be
      manufactured only at Manufacturing Location. In consideration
      of Antik's approval of the manufacture by Manufacturer of any Article listed
      in
      Exhibit A of the License Agreement bearing the
      Property, the parties agree as follows:

    

    Manufacturer
      acknowledges the validity of and Antik's sole title to the Property.
      Manufacturer agrees that its right to manufacture Licensed Products
      with the Property thereon is in all respects subject to the terms and conditions
      in the License Agreement, including, but not limited to,
      the
      termination provisions and restrictions on the use of the Property. Manufacturer
      agrees that the provisions of the License Agreement shall
      take precedence over and supersede any agreements between Licensee and
      Manufacturer. Manufacturer shall sell Licensed Products with
      the
      Property thereon only to Licensee. Manufacturer agrees that its manufacture
      of
      Licensed Products shall give Manufacturer no right to
      use
      the Property or to sell Licensed Products bearing the Property beyond the
      expiration or termination of the License Agreement. If Licensee's
      right to use the Property expires or terminates, Manufacturer agrees to make
      no
      claim against Antik Denim, LLC or its parents,
      affiliates or subsidiaries, for any reason.

    

    ANTIK
      DENIM, LLC MANUFACTURER

    

      
        	
                ANTIK
                  DENIM, LLC

              	
                MANUFACTURER

              	 
	 	 	 
	 	 	 
	
                By:_____________________________

              	 	
                By:

              
	 	 	 
	
                Title____________________________

              	
                Title:_________________________________________

              	 
	 	 	 
	
                Date:___________________________

              	 	
                Date:

              
	 	 	 
	
                NORTH
                  STAR, LLC By:_____________

              	 	 
	 	 	 
	
                Title:___________________________

              	 	 
	 	 	 
	
                Date:___________________________

              	 	 

      

    

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    EXHIBIT
      C

    Word,
      Name, Symbol or Device of Licensee

     

    None.

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    EXHIBIT
      D

    Intellectual
      Property

     

    Trademarks
      (Registered and Pending)

     

    Word
      Mark

     

    Eagle
      Logo Mark Pocket Design Copyrights

     

    Pocket
      Design Logo With Words Logo Without Words

     

    Patent

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    EXHIBIT
      E ROYALTIES

    
      
        	 	 
	
                Year
                  One

              	
                4.5%
                  of Net Sales of up to $4,000,000.00
                  10% of Net Sales above $4,000,000.00

              
	 	 
	
                All
                  Other Years

              	
                10%
                  of Net Sales

              

      

    

    
       

      
        
           

        

        
          25FAITH
      CONNEXION

    License
      Terms

    
      	 	 	 
	 	 	 
	
              Purpose:

            	
              To
                enter into a license agreement for the purposes of exploiting the
                Faith
                Connexion trademark (the “Mark”) in International Class 025 in the
                Territory.

            	 
	 	 	 
	
              Parties:

            	
              Faith
                Connexion S.A.R.L., French corporation

            	 
	 	
              Blue
                Holdings, Inc., a Nevada corporation

            	 
	 	 	 
	
              Term:

            	
              3
                years, with a first year of 18 months and a second year of 6
                months

            	 
	 	 	 
	
              Territory:

            	
              The
                entire North American and South American continents, Japan and
                Korea

            	 
	 	 	 
	
              Royalty:

            	
              Year
                1 

            	
              9%
                Net Sales

            
	 	
              Year
                2 

            	
              9%
                Net Sales

            
	 	
              Year
                3

            	
              9.5%
                Net Sales

            
	 	 	 
	
              Minimum

            	 	 
	
              Royalties:

            	
              Year
                1

            	
              $450,000

            
	 	
              Year
                2

            	
              $315,000

            
	 	
              Year
                3

            	
              $950,000

            
	 	 	 
	
              Minimum
                Net

            	
              Year
                1

            	
              $5.0
                million

            
	
              Sales:

            	
              Year
                2

            	
              $3.5
                million

            
	 	
              Year
                3

            	
              $10
                million

            
	 	 	 
	
              Marketing
                &

            	 	 
	
              Promotion:

            	
              Licensee
                is obligated to invest in advertising, marketing and promotion a
                sum
                equivalent to 3% of the actual net sales

            	 
	 	 	 
	
              Distribution:

            	
              Specialty
                boutiques and better department stores

            	 
	 	 	 
	
              Design:

            	
              All
                designs to be created by Licensor. 

            	 
	 	 	 
	
              Manufacturing:

            	
              Licensee
                shall be entitled to procure manufacturing through Licensor’s sources, or
                to request tech packs from Licensor and source its own manufacturing,
                subject to Licensor’s reasonable approval.

            	 
	 	 	 
	
              Sales:

            	
              Licensee
                is responsible for all costs associated with selling the licensed
                products
                in the territory, including salaries, commissions, trade show and
                showroom
                expenses.

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