Document:

EX 10.1

    EXHIBIT
      10.1

     

    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
      Mercier SARL a
      French
      Company having
      its principal office at 1659 Chemin Robert Brun, ZA Camp Laurent 83500, La
      Seyne
      sur Mer, France (“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 C (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 exclusive 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. 

    

    
      	 	
              2.

            	
              TERRITORY

            

    

    

    (a)
‘’The
      Territory’’ is described on exhibit B

    

    (b) In
      the
      event that Licensor fails to distribute product in one or several countries
      of
      the “ Territory” within (18) months from the inception of this Agreement,
      Licensor shall have the option to carve out such countries of the ‘’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 countries
      of the Territory from the Agreement pursuant to this Section 2(b), Licensor
      shall be entitled to grant a license to a third party in such country under
      any
      terms and conditions that Licensor deems appropriate under the
      circumstances.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    
      	
            	3.	
              TERM

            

    

    (a) The
      parties agree that the term of this Agreement commenced on April 18, 2007 and
      will extend for an initial “First
      Term”
      of
      twenty (20) months from April 18, 2007 through December 31st, 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.

    

    (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 D 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.

    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. 

    

    (c) Guaranteed
      Minimum Royalty:
      Licensee agrees upon execution of that agreement to pay Licensor for the
‘’First
      Term’’
      as an
      advance on royalties the sum of two hundred and fifty thousand dollars ($
      250,000). 

    

    For
      the
‘’Extended
      Terms’’
      of that
      agreement, Licensee agrees to pay Licensor a non-refundable “Guaranteed Minimum
      Royalty” listed below under “Guarantee”, allocated in quarterly
      installments.

     

    
      
        	
                ANNUAL
                  PERIOD

              	 	
                GUARANTEE

              	 	
                MINIMUM
                  NET SALES

              	 
	
                04/18/07
                  - 12/31/08

              	 	
                $

              	
                250,000

              	 	
                $

              	
                2
                  500,000

              	 
	
                01/01/09
                  - 12/31/09

              	 	
                $

              	
                250
                  000

              	 	
                $

              	
                2
                  500 000

              	 
	
                01/01/10
                  - 12/31/10

              	 	
                $

              	
                500
                  000

              	 	
                $

              	
                5
                  000 000

              	 
	
                01/0/1/11
                  - 12/31/11

              	 	
                $

              	
                750
                  000

              	 	
                $

              	
                7
                  500 000

              	 
	
                01/01/12
                  - 12/31/12 

              	 	
                $

              	
                1
                  000 000

              	 	
                $

              	
                10
                  000 000

              	 

      

    

    
 

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

     

    (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.. 

    

    (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
      to

     

    
      
        	
                ANNUAL
                  PERIOD

              	 	
                GUARANTEE

              	 	
                MINIMUM
                  NET SALES

              	 
	
                2013

              	 	
                $

              	
                1
                  250 000

              	 	
                $

              	
                12
                  500 000

              	 
	
                2014
                  

              	 	
                $

              	
                1
                  500 000

              	 	
                $

              	
                15
                  000 000

              	 
	
                2015
                  

              	 	
                $

              	
                1
                  750 000

              	 	
                $

              	
                17
                  500 000

              	 
	
                2016
                  

              	 	
                $

              	
                2
                  000 000

              	 	
                $

              	
                20
                  000 000

              	 
	
                2017

              	 	
                $

              	
                2
                  000 000

              	 	
                $

              	
                20
                  000 000

              	 

      

       

    

    (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. 

    

    (d) Licensor
      may impose a charge on all overdue payments at a rate equal to the lesser of
      one
      and one-half percent (1 1⁄2%) 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.

     

    
      	
            	5.	
              ROYALTY
                PAYMENT AND REPORTING

            

    

     

    (a) Licensee
      shall pay the royalties based upon Net Sales in quarterly periods ending on
      the
      last days of January, April, July, and November. 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

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    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 there with.

    

    
      	 	
              6.

            	
              MARKETING
                AND DISTRIBUTION

            

    

    

    (a) Any
      promotional material ) proposed to be used in solicitation or marketing efforts
      must have the prior written approval of Licensor in accordance with the
      procedures in Paragraph

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    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.

     

    

    
      	
            	7.	
              SALE
                OF LICENSED PRODUCTS TO
                LICENSOR

            

    

    

    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 prior written 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 written approval of Concept
      Submittals for each such Licensed Product. If Licensor fails to communicate
      its
      approval or disapproval of any Concept Submittal within eight days (8) days
      after receipt of Licensee's submission, Licensor shall be deemed to have
      approved such Concept Submittal.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    

    
      	
            	(c)	
              Pre-Production
                Approvals.

            

    

    Licensee
      shall submit to Licensor for approval the CADS, not to be unreasonably withheld
      then 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
      written approval of the CADS and Sample Submittals for each such item. If
      Licensor fails to disapprove any Sample Submittal within eight (8) 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 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, one (1) set of the
      production samples of the Licensed Products and/or promotional and packaging
      material to Licensor

     

    
      	
            	(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 screen-printing,
      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

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    percent
      (10%) in the aggregate of first quality sales (measured in number of units
      sold), reconciled on an annual basis, and, provided further that Licensee shall
      notify Licensor as to the retailers selected for the disposition of merchandise.
      . 

    

    
      	
            	(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 Product(s) 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.

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    (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 C 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 written 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. 

     

    
      	
            	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.

     

    
      	
            	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

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    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 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.

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

       

       

    

    
      	
            	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.
Licensee
      may order directly from his supplier (LABELTEX) his security labels

    

    
      	
            	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.

    

    
      	
            	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. . 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

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    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. 

    

    
      	
            	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
      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;

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    (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.

    

    
      	 	
              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

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    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.

    

    (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

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    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 one Million Dollars ($1,000,000.00) 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.

    

    (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.

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    

    
      	
            	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:

    

    

    Licensor:

    ANTIK
      DENIM, LLC

    5804
      E.
      Slauson Avenue

    Commerce,
      CA 90040

    Attn:
      Mr.
      Paul Guez, CEO

    

    

    

    

    Licensee:

    MERCIER
      SARL

    1659
      Chemin Robert Brun 

    ZA
      Camp
      Laurent 83500 la Seyne sur Mer, France 

    Attn:
      Mr.
      Julian Sidonio, CEO 

    

    

    

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

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    
      	
            	25.	
              PAYMENT
                AND STATEMENT ADDRESS

            

    

    

    Licensee
      shall send payments and statements to:

    

    ANTIK
      DENIM, LLC

    5804
      E.
      Slauson Avenue

    Commerce,
      CA 90040, USA

    

    

    
      	
            	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 written 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.

    

    
      	
            	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.

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    
      	
            	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
      D 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.

            

    

    

    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, contracts, understandings or agreements in regard
      to the license of the Property in connection with the Licensed Products in
      the
      Territory 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.

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    
      	
            	(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 have 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.

    

    

    
      	
            	(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. 

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

     

    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:

     

     

    “LICENSEE”

     

    Mercier
      SARL

     

     

    By: 
      /s/
      Julian Sidonio

      
        

      

    

    Julian
      Sidonio, Chief Executive Officer

     

    Date:

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    Licensed
      Products

     

     

    Denim
      and
      Sportswear Apparel for Men and Women bearing the Antik Denim
      Trademark.

    

    Licensor
      undertakes to supply at least one full sample set before each season and on
      a
      more regular basis CADS and TECH PACKS once items completed.

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

     

    Exhibit
      B

     Territory

     

     

    France,
      Spain, Italy, Germany, Austria, Portugal, Benelux, England, Ireland,
      Switzerland, Greece, Portugal, Denmark, Sweden, Norway 

    

    And
      all
      other European territories now or in the future

     

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

    EXHIBIT
      C

    Intellectual
      Property

     

     

    Trademarks
      (Registered and Pending)

     

    Word
      Mark

     

    Eagle
      Logo Mark

     

    Pocket
      Design

     

     

    Copyrights

     

    Pocket
      Design

     

    Logo
      with
      Words

     

    Logo
      without Words

     

     

    Patent

     

    Pocket
      Design

     

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

     

    EXHIBIT
      D

     
      Royalties

     

     

    10%
      of
      Net Sales 

     

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

     

    EXHIBIT
      E

    Hot
      Item Clause

     

    

    Specific
      to Products of the moment deemed hot and in order to exploit best market, three
      items per category and per season may be presented by Licensee to Licensor
      in
      TECH PACKS with swatch sample provided that the quality of those items is same
      as the standard of the rest of the Licensed Products

     

    
      
         

      

        -24-Unassociated Document

    EXHIBIT
      10.2

     

    AMENDMENT
      No.1

    TO
      LICENSE AGREEMENT

    

    

    This
      Amendment to the License Agreement (this “Amendment”)
      is
      entered into as of April 25, 2007 by and between Antik Denim, LLC (“Licensor”),
      with
      its principal place of business located at 5804 E. Slauson Avenue, Commerce,
      California, 90040 and North Star, LLC (“Licensee”),
      with
      its principal place of business located at 433 South Spring Street, Suite 301,
      Los Angeles, California 90013.

     

    RECITALS

     

    A.    The
      parties have entered into that certain License Agreement effective as of October
      1st
      2006
      (the “Agreement”),
      under
      which Licensee obtained an exclusive license to manufacture and distribute
      Antik
      Denim brand apparel in the knit and headwear categories, as more fully set
      forth
      in the Agreement.

     

    B.    The
      parties desire to amend the Agreement on the terms set forth
      herein.

     

    AGREEMENT

    

    NOW,
      THEREFORE, in consideration of the foregoing and of the mutual covenants and
      undertakings hereinafter set forth, the Agreement is hereby amended as follows:
      

    

    
      	I.	
              Article
                2
                of
                the Agreement is hereby deleted in its entirety and replaced with
                the
                following:

            

    

    

    “2.
      TERRITORY. The Licensee shall be authorized to sell the Products within the
      Territory set forth in Exhibit F hereto.”

    

    
      	II.	
              A
                new Exhibit F is hereby added to the Agreement to read in its entirety
                as
                follows: 

            

    

     

    EXHIBIT
      F

    

    The
      Territory

     

    The
      territory shall be worldwide, except as follows (collectively, the
“Territory”):

     

    (a) The
      Licensee shall have no rights to sell the Products in any country located on
      the
      European continent.

     

    (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, 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,
      excluding countries that are already excluded pursuant to subsection (a)
      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. 

     

    III    Miscellaneous.
      The
      Agreement and this Amendment constitute the entire agreement between the parties
      on the subject matter hereof and thereof, and no amendment of the terms herein
      or therein shall be valid unless made in a writing signed by the parties.
      California law shall govern the interpretation and enforcement of this Amendment
      without regard to conflicts of laws principles. Unless otherwise defined herein,
      terms used herein shall bear the same respective meanings ascribed to such
      terms
      in the Agreement. Except as amended hereby, the Agreement and its Exhibits
      shall
      remain in full force and effect. This Amendment may be executed in counterparts
      and by facsimile, and each counterpart shall be deemed an original.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Amendment or caused
      the
      same to be executed by a duly authorized officer as of the day and year first
      above written:

    

    
      	 	
              “LICENSEE”

               

              North
                Star, LLC ,

               

              By: 
                /s/ Serge Bennat

              
                

              

              Its:

            
	 	 
	 	
              “LICENSOR”

               

              Antik
                Denim, LLC

               

              By: 
                /s/
                Paul Guez

              
                

              

              Its:
                Chief Executive Officer

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