Document:

Exhibit
10.3

     

    LICENSE
AGREEMENT

     

    This
License Agreement is made and entered into as of the 1st day of January 2010
(the “Effective
Date”) by and between Voit Corporation, a Texas corporation with offices
at 4414 Centerview Drive, Suite 204, San Antonio TX 78228 (“Licensor”), and Sport
Supply Group Inc., a Delaware corporation with offices at 1901 Diplomat Drive,
Farmers Branch, TX 75234 (“Licensee”).  Capitalized
terms used in this Agreement and not otherwise defined in the context in which
they are used shall have the meanings ascribed to them in Section 1
herein.

     

    WITNESSETH:

     

    WHEREAS,
Licensor has certain rights in the Voit Intellectual Property (as defined
below); and

     

    WHEREAS,
Licensee desires to use the Voit Intellectual Property in connection with the
sourcing, importing, marketing, sale, and distribution of Licensee Products in
the Territory to its customers in accordance with the terms and conditions set
forth in this Agreement, and Licensor desires to grant to Licensee the right to
use the Voit Intellectual Property in accordance with such terms and conditions;
and

     

    WHEREAS,
Licensee recognizes that the valuable reputation and goodwill attaching to the
Voit Intellectual Property is dependent for its preservation on the high quality
standards set forth in this Agreement, and, accordingly, Licensee is willing to
comply with Licensor's standards, as required by the terms set forth herein, in
order to obtain such quality and to cooperate with Licensor, as required by the
terms contained herein, in preserving the reputation and goodwill attaching to
the Voit Intellectual Property.

     

    NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements contained herein, the parties hereto, intending to be legally bound,
hereby agree as follows:

     

    1     
Definitions:  As
used herein, the following terms shall be defined as set forth
below:

     

    (a)          “Contract Quarter”
means each successive three month period during the Term, commencing with the
Effective Date.

     

    (b)          “Contract Year” means
each successive twelve month period during the Term, commencing with the
Effective Date.

     

    (c)          “Customers” means the
Exclusive Customers and the Non-Exclusive Customers.

     

    (d)          “Exclusive Customers” shall be
specifically:

     

    (A)           Institutional
sporting goods customers, including but not limited to recreational departments,
educational institutions, youth sports leagues, community service groups, PTA’s,
athletic teams, and other team sports associations;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (B)           Any
reseller of sporting goods which realizes more than 50% of its total sporting
goods revenues from customers of the type listed in Section 1(d)(A) above;
and

     

    (C)           Persons
or entities receiving Licensee’s various catalogs, or purchasing by or through
Licensee’s various catalogs and/or websites.

     

    (e)         “Licensee Products” shall mean
the Licensee products of the type listed in Schedule B attached
hereto.

     

    (f)          “Losses” shall mean
all settlements, judgments, awards, fines, penalties, interest, liabilities,
losses, costs, damages and expenses (including reasonable attorneys’ fees and
disbursements and court costs).

     

    (g)         “Marks” shall mean
trademarks listed in Schedule A attached
hereto.

     

    (h)         “Minimum Royalty”
shall mean, for each Contract Year during the Initial Term, an amount equal to
$130,000.  Thereafter, the Minimum Royalty may be increased pursuant
to the terms of this Agreement.

     

    (i)          “Net Sales” shall mean
the total dollar amount of gross sales by Licensee of all Licensee Products at
the invoiced selling price less customary discounts, returns actually made or
allowed. No deductions shall be made for costs incurred in manufacturing,
selling, distributing, or advertising the Licensee Products, or for the
uncollectible accounts, taxes, cash discounts, or similar allowances. In the
case of sales to or use of the Licensee Products by a company associated with
Licensee or any other sales to related companies, the sales price shall be the
price regularly charged to the Licensee's independent bona fide
customers.

     

    (j)          “Non-Exclusive
Customers” shall mean:

     

    (A)           Samsclub.com,
walmart.com, and target.com;

     

    (B)           Amazon.com
pursuant to the terms and provisions of that certain Merchants@Amazon.com Participation
Agreement by and between Amazon.com Payments Inc. and Licensee, a copy of which
has been provided to Licensor or pursuant to Amazon’s Prime program whereby
Amazon purchases and inventories Licensee’s products;

     

    (C)           Premium
and incentive wholesale accounts; and

     

    (D)           Consumers
within the Territory (including without limitation, individual consumers
purchasing for their own account) and On-Line Sellers (as defined below) located
through E-Commerce (as defined below). “On-line Sellers”
shall mean any and all entities that sell, offer to sell, resell or offer to
resell a Licensee Product through E-Commerce. “E-Commerce” shall
mean conducting business (including the advertisement, offer for sale, sale and
distribution of products) through a global, international, national, local or
other electronic network (such as the Internet, private network or corporate
intranet), or any subpart thereof, which may be accessed or created now, or in
the future, and any other current or future means or method of advertisement,
sale, order taking or distribution via an electronic means.

    
      
         

      

      
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    (k)         
“Territory”
shall mean the United States.

     

    (l)      
    “Voit Intellectual
Property shall mean the intellectual property listed in Schedule A attached
hereto, including the Marks.

     

    2      
Scope of
License:

     

    (a)         Licensor
hereby grants to Licensee, and Licensee hereby accepts, (i) an exclusive right
to use the Voit Intellectual Property in the Territory in connection with the
sourcing, importing, marketing, manufacturing, sale, distribution, display,
promotion, and advertising of the Licensee Products to the Exclusive Customers
only, upon the terms and conditions hereinafter set forth and (ii) the
non-exclusive right to use the Voit Intellectual Property in the Territory
in connection with the sourcing, importing, marketing, manufacturing, sale,
distribution, display, promotion, and advertising of the Licensee Products to
the Non-Exclusive Customers.

     

    (b)         The
rights and licenses described in Section 2(a) above
shall extend to any independent contractors, agents, permitted assignees or
sublicensees, or service providers providing services to or on behalf of
Licensee (“Permitted
Third Parties”) but shall not include the right to pledge or otherwise
encumber the Marks or Licensee's right and license to use the
Marks.  Notwithstanding the foregoing, Licensor consents to Licensee’s
limited assignment of Licensee’s rights under this Agreement to Licensee’s
lender(s) so long as such limited assignment is substantially in the form of the
Limited Assignment attached hereto as Schedule
C.

     

    (c)          Licensor
acknowledges that the rights and licenses set forth in this Agreement include,
but are not limited to, the non-exclusive right for On-Line Sellers who have
purchased or agreed to purchase Voit branded Licensee Products from Licensee, to
resell and distribute Voit branded Licensee Products to any person or entity
through E-Commerce.

     

    (d)         Since
the right to sell through E-Commerce (whether on Licensee’s websites or through
On-Line Sellers) contemplates marketing and advertising Voit branded products
throughout the entire world, Licensor hereby grants to Licensee the
non-exclusive right and license for (1) Licensee, (2) customers of Licensee who
have or may purchase Voit branded Licensee Products from Licensee, and (3)
others authorized by Licensee, to display and otherwise promote advertise,
merchandise, and offer for sale all Voit branded Licensee Products throughout
the world to any person or entity of any type, including but not limited to the
general public.

    
      
         

      

      
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    (e)          It
is expressly understood that Licensor and its designees, licensees, successors
and assigns may sell any products of the type listed as Licensee Products to any
customers other than Customers (as defined herein), and that Licensor or its
designees, licensees, successors and assigns may sell to Customers any products
other than products of the same type as any of the Licensee
Products.

     

    3      
Term:

     

    (a)          This
Agreement shall become effective as of the Effective Date.

     

    (b)          The
initial term (“Initial
Term”) of this Agreement shall commence on the Effective Date and shall
continue for five years unless earlier terminated as provided
herein.  This Agreement shall thereafter automatically renew for up to
two subsequent five year periods (the Initial Term and each subsequent five
year period may each hereinafter be referred to as a “Five Year Period” and
collectively as the “Term”) unless either
party notifies the other party of its intention not to renew at least 180 days
before the end of the Initial Term or any such five-year extension, or the
Agreement is otherwise terminated in accordance with the terms
herein.

     

    4      
Royalties and
Payments:

     

    (a)          As
compensation for the rights and license granted hereunder, Licensee shall pay to
Licensor (i) the Minimum Royalty to be paid in advance on or before January 30th
of each Contract Year and (ii) any additional Royalties owed to Licensor
pursuant to Section
4(b) below.  Licensor may increase the Minimum Royalty once per
completion of each Five Year Period provided (A) Licensor provides Licensee
written notice of such increase at least 180 days prior to the last day of the
concluding Five Year Period and (B) the Minimum Royalty is not increased by more
than (x) fifteen (15) percent or (y) the cumulative increase in the rate of
inflation for such Five Year Period, whichever is less.  In order to
determine the increase in inflation during such Five Year Period, the parties
agree to use the Bureau of Labor Statistics Consumer Price Index for all Urban
Consumers (CPI-U), U.S. City Average, all items, base period (1982-1984),
reference period-December.  The reference period for the first Five
Year Period will compare the December 2014 index to the December 2009
index.

     

    (b)          Within
thirty (30) days after the end of each Contract Year, Licensee shall pay
Licensor an amount equal to the difference, if positive, of subtracting (i) four
percent (4%) of all Net Sales during that Contract Year (“Royalty”) minus (ii)
the Minimum Royalty paid by Licensee pursuant to Section 4(a) above.
Such payments shall be made in accordance with the Method of Payment specified
in Section 14
hereto.

    
      
         

      

      
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    (c)          Within
thirty (30) days following each Contract Quarter, Licensee shall submit a
royalty report (“Royalty Report”),
consistent in the format historically sent by Licensee to Licensor, or in
another mutually agreeable format that may be reasonably established by Licensor
from time to time, certified by an officer of Licensee as true and accurate,
including but not limited to detailed information on Net Sales by Licensee
during said Contract Quarter, the computation of Royalties hereunder, and a
statement of Net Sales by the Licensee for each month of the Contract
Quarter.

     

    (d)         Licensee
agrees to pay interest at the lesser of (i) twelve (12%) percent per annum
or (ii) the maximum rate permitted by law on Royalties or Minimum Royalties
due and not paid by Licensee for more than 30 days following Licensee’s receipt
of written notice of such nonpayment from Licensor.

     

    5      
Quality
Standards:

     

    (a)          Licensor
acknowledges that it has approved Licensee’s current use of the Marks on
Licensee’s Products in existence on the Effective Date and in advertising and
promotional materials, including but not limited to: (i) Licensee’s uses on
binders, tradeshow booths, letterhead, and other marketing materials; and (ii)
the uses in the Licensee’s catalogs, fliers, post cards, web pages and other
marketing materials.   Licensor further acknowledges and agrees
that any use by Licensee or Permitted Third Parties of the Marks on Licensee’s
Products or on Licensee’s advertising and marketing material that does not
materially differ from the uses by Licensee prior to the Effective Date
(including but not limited to replicating such uses on Internet web pages,
fliers, mailers, catalogs and other advertising pieces) will not require any
additional approvals. Licensee shall revise any photographs in its catalogs and
on its websites that do not reflect the type style requested by Licensor as of
the date of this Agreement and such revisions shall be reflected in Licensee’s
Spring 2011 catalog.

     

    (b)         Subject
to the foregoing, prior to any use of any of the Marks on any new products or
new advertising/marketing, Licensee shall furnish to Licensor, for the approval
of Licensor, samples and mock-ups of all Licensee Products and copies of all
formats of all advertising and promotional material on which any such Marks
appear (the “Materials”).  All
samples and mock-ups shall be sent in accordance with the Notice provisions set
forth in Section
17 hereof.  Licensor shall have the right to approve all
Licensee Products or Materials or to require Licensee, as a condition to
Licensor's approval, to make alterations or modifications to such Licensee
Products or Materials and promptly resubmit the same to
Licensor.  Such approval shall not be unreasonably
withheld.  Any Licensee Products and/or Materials submitted to
Licensor shall be deemed approved unless Licensor notifies Licensee to the
contrary within fifteen (15) days after receipt of such Licensee Products and/or
Materials.  Licensee shall not distribute, sell, display or advertise
any Licensee Products unless and until the sample for such Licensee Product has
been approved or deemed approved by Licensor pursuant to this Section
5(b).  All Licensee Products manufactured, distributed, sold,
displayed and/or advertised by Licensee shall conform to the sample approved or
deemed approved by Licensor.  Licensor shall not be obligated to
return to Licensee any samples that it receives pursuant to this Section
5.  Color changes, model changes, style and grade designations,
cosmetic type changes, or changes that do not materially alter the
specifications of a Licensee Product or Materials will not constitute a new
product or advertising that requires Licensor’s approval under this
agreement.

    
      
         

      

      
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    (c)         Upon
request of Licensor but, in any event, not more than once per Contract Year,
Licensee shall furnish, or cause to be furnished, to Licensor current production
samples of the Licensee Products and the advertising, labeling, packaging and
boxing thereof, to allow Licensor to verify that the Licensee Products being
manufactured conform to the samples approved by Licensor pursuant to Section 5(b)
above.  Licensor shall have the same right of approval or disapproval
with respect to each current production sample as it has with respect to samples
pursuant to Section
5(b) above.  In the event that Licensor gives Licensee notice
of disapproval of any current production sample, Licensee shall promptly cure
the non-conformity and resubmit a conforming current production sample to
Licensor for approval.  If a conforming current production sample is
not submitted by Licensee and approved or deemed approved by Licensor within
thirty (30) calendar days of Licensor's initial notice of disapproval, Licensee
shall, on written notice from Licensor, cease manufacture, distribution, and
sale of such Licensee Product until such approval is
obtained.  Licensor acknowledges that, due to the catalog nature of
Licensee’s business, it is not feasible to remove such products from the catalog
until Licensee’s existing catalog is replaced by a new catalog.

     

    (d)         Licensee
shall manufacture, distribute, display, sell and advertise the Licensee Products
in accordance with the standards of quality associated with the Marks as may be
reasonably established by Licensor from time to time and, to insure compliance,
Licensor or its designated representative shall be permitted, no more than once
per Contract Year, upon at least 30 days prior written notice, to inspect any
facility used to manufacture, distribute, display or sell the Licensee
Products.

     

    (e)         Licensee
shall comply at all times at its sole expense with all applicable laws and
regulations pertaining to the sale, display, distribution, advertisement and
performance of the Licensee Products.

     

    (f)          Upon
Licensor's request, Licensee shall provide Licensor with satisfactory evidence
of the types and extent of its uses of the Marks.

     

    6      
Promotion of
Licensee Products:

     

    Licensee
shall use commercially reasonable efforts to promote the Licensee Products sold
under the Marks and to coordinate the manufacture, distribution, sale, display,
and advertising of the Licensee Products sold under the Marks so as to maintain
and enhance the value of the goodwill residing in the Marks.

    
      
         

      

      
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    7      
Licensee
Representations and Warranties:  Licensee hereby represents and
warrants that:

     

    (a)          It
has full right, power, and authority to enter into this Agreement.

     

    (b)          Its
execution, delivery and performance of this Agreement do not and shall not
contravene any contractual restriction binding on or affecting any of its
properties, nor its certificate of incorporation, nor its by-laws.

     

    (c)          This
Agreement has been duly executed and delivered by Licensee and is a legal, valid
and binding obligation of Licensee enforceable against Licensee in accordance
with its terms.

     

    8      
Licensor
Representations, Warranties and
Covenants:  Licensor hereby represents and warrants
that:

     

    (a)          It
has full right, power, and authority to enter into this Agreement.

     

    (b)          It
shall use its best efforts to secure and maintain all necessary rights to
effectuate the terms of this License Agreement.

     

    (c)          Its
execution, delivery, and performance of this Agreement do not and shall not
contravene any contractual restriction binding on or affecting any of its
properties, nor its certificate or articles of incorporation, nor its
by-laws.

     

    (d)         This
Agreement has been duly executed and delivered by Licensor and is a legal,
valid, and binding obligation of Licensor enforceable against Licensor in
accordance with its terms.

     

    (e)          No
other person or entity has been granted a right which would conflict with
Licensee’s rights hereunder.

     

    (f)          Licensor
is not insolvent and this Agreement is not being entered into in contemplation
of Licensor’s insolvency nor are such transactions being consummated with any
intent to hinder, delay or defraud any of Licensee’s creditors.

     

    (g)         Licensor
owns the entire right, title and interest in and to the Voit Intellectual
Property, free and clear of all liens, claims and encumbrances of any kind, and
Licensor has the exclusive rights to license the Voit Intellectual
Property.  Licensee’s use of the Voit Intellectual Property in
accordance with and for the purposes set forth in this Agreement will not
infringe the contractual or proprietary rights of any third party or conflict
with any other agreement.  To Licensor’s knowledge, there is no
infringement of the Voit Intellectual Property by any third
party.  The Voit Intellectual Property includes all of the trademarks
containing the “Voit” name or any derivation thereof that Licensor owns or has
the right to use.

    
      
         

      

      
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    (h)         During
the term of this Agreement, Licensor shall use its best efforts to obtain,
maintain and renew the Voit Intellectual Property and the registrations thereof
and shall not permit other persons to use the Voit Intellectual Property in any
manner that would conflict with Licensee’s rights under this
Agreement.

     

    (i)          Licensor
has not, and neither it nor any successor will, sell, assign, transfer or
otherwise encumber any of its rights in the Voit Intellectual Property or create
any lien, pledge or security interest in the Voit Intellectual Property, or any
part thereof, or permit the Voit Intellectual Property or any part thereof to be
or become subject to any lien, pledge or security interest, attachment or other
encumbrance without first agreeing to give and giving Licensee, in a form and
substance that is customary for license agreements or otherwise mutually
agreeable to Licensor and Licensee, a first lien security interest in the Voit
Intellectual Property to secure Licensor’s performance under this Agreement and
to secure any damages that would accrue to Licensee in the event of a rejection
of this Agreement in any bankruptcy proceeding.  Licensor and Licensee
agree that no security interest or other lien created by Licensor in the Voit
Intellectual Property will be valid until the secured party has agreed in
writing with Licensee that the secured party’s rights and interests in the Voit
Intellectual Property will be subordinate to the rights of Licensee in the Voit
Intellectual Property as provided in this Agreement and pursuant to any security
interest to be granted to Licensee pursuant to the immediately preceding
sentence.

     

    9     
The
Marks:

     

    (a)         Licensee
shall duly include the Marks on or with all Licensee Products sold under the
Marks and shall include all notices and legends with respect to the Marks as are
required by applicable federal, state, and local trademark laws or any other
laws which may be reasonably requested by Licensor.

     

    (b)         Except
(i) as required by law, (ii) with respect to Licensee Products in existence
on the Effective Date, or (iii) as specifically agreed by Licensor by prior
writing, no other name, trademark, inscription or designation whatsoever shall
be affixed to the Licensee Products or packaging for the Licensee Products. If
Licensor does not object in writing to a proposed new use of another designation
on any Voit branded product within fifteen (15) days after its receipt of notice
from Licensee of the intended use, the proposed new use will be deemed
approved.  In connection with the execution of this Agreement,
Licensor has approved Licensee’s use, in any combination with the Marks, of all
designations of any type used in connection with a Voit branded product as shown
in Licensee’s catalogs and websites.  In the event that Licensee seeks
to affix to a Licensee Product the name of an individual endorsing that Licensee
Product, Licensee shall request written approval from the Licensor to do so,
such approval not to be unreasonably withheld.

    
      
         

      

      
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    (c)          Licensee
hereby acknowledges Licensor's right, title and interest in and to the Marks and
Licensor's right to use and license the use of the Marks and agrees not to claim
any title to the Marks or any right to use the Marks except as permitted by this
Agreement. Licensee shall not directly or indirectly question, attack, contest,
or in any other manner, impugn the validity of the Marks or Licensor rights in
and to the Marks, or the license herein granted, including, without limitation
thereto, in any action in which enforcement of the provisions of this Agreement
is sought, nor shall Licensee willingly become a party adverse to Licensor in
litigation in which a third party is contesting the validity of the Marks or
Licensor's right in and to the Marks.

     

    (d)         Licensee
shall at no time adopt or use, without Licensor's prior written consent, any
variation of the Marks or any work or mark likely to be similar to or confusing
with the Marks.

     

    (e)          Licensee
shall conduct the merchandising and sale of the Licensee Products in good faith
and in a dignified manner, consistent with the general reputation of the Marks
and Licensor, and in accordance with commercially reasonable trademark
practice.

     

    (f)          Any
and all goodwill arising from Licensee's use of the Marks shall inure solely to
the benefit of Licensor, and neither during nor after the Term shall Licensee
assert any claim to the Marks or such goodwill. Licensee shall not take any
action that could be detrimental to the goodwill associated with the Marks or
with Licensor.

     

    (g)         Licensee
shall, during the Term of this Agreement and during the two (2) year period
following termination hereof, execute such documents as Licensor may reasonably
request from time to time to ensure that, as between the parties to this
Agreement, all right, title and interest in and to the Voit Intellectual
Property resides in Licensor.

     

    10     Infringement:

     

    (a)         Each
party shall notify the other promptly of any actual or threatened infringements,
imitations, or unauthorized use of the Marks by others of which such party
becomes aware. Subject to Licensee’s rights and Licensor’s obligations pursuant
to this Section
10, Licensor shall have the sole right, and shall take all reasonable
steps at its expense, to bring any action on account of any such infringements,
limitations or unauthorized use, and Licensee shall, at Licensor’s expense,
cooperate with Licensor, as Licensor may reasonably request, in connection with
any such action brought by Licensor. Licensor shall retain any and all damages,
settlement, and/or compensation paid in connection with any such action brought
by Licensor. If Licensor does not undertake such action within thirty (30)
calendar days after notice from Licensee of such alleged infringement, Licensee
may prosecute the same, at its expense and with counsel of its own choosing,
provided that no settlement shall be made without the prior written approval of
Licensor (which approval shall not be unreasonably withheld) and Licensee shall
advise Licensor periodically of the status of the action and promptly of any
material developments. In the event that any damages, settlement, and/or
compensation are paid in connection with any such action, Licensee shall first
retain an amount in reimbursement of its expenses and any damages Licensee
suffered as a result of such infringement; any remaining amount shall be divided
equally between Licensee and Licensor.

    
      
         

      

      
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    (b)         Licensor,
at its expense, shall defend and indemnify and save and hold Licensee and its
subsidiaries and affiliates and their respective directors, officers,
stockholders, and employees and permitted assigns harmless from and against any
and all liabilities, claims, causes of action, suits, damages, Losses and
expenses, including reasonable attorney's fees and expenses, by reason of
alleged or actual violation or infringement of any trademarks and/or service
marks held by third parties, based on Licensee exercising its rights related to
the Voit Intellectual Property granted pursuant to this Agreement. If Licensor
does not give notice to Licensee of its intent to defend or settle such action
within sixty (60) calendar days after notice from Licensee of such alleged
infringement, Licensee may defend the same, at the sole cost and expense of
Licensor, provided that no settlement shall be made without the prior written
approval of Licensor (which approval shall not be unreasonably withheld) and
Licensee shall advise Licensor periodically of the status of the action and
promptly of any material developments. Licensor reserves the right to
participate at any time in such proceedings.

     

    (c)          Licensor
shall have the right to compromise and settle any suit, claim or proceeding in
the name of Licensee; provided, however, that
Licensor shall not compromise or settle a suit, claim or proceeding (i) unless
it indemnifies Licensee for all Losses arising out of or relating thereto and
(ii) that includes an admission of liability of Licensee or seeks any material
non-monetary relief, without the written consent of Licensee, which consent
shall not be unreasonably withheld.

     

    (d)         The
terms of this Section
10 shall survive the termination of this Agreement.

     

    11    
Books, Records,
and Statements:

     

    (a)         Licensee
shall maintain during the Term of this Agreement and for at least two (2) years
following the termination hereof true and accurate books and records in which
there shall be reflected all sales of the Voit branded Licensee
Products.

    
      
         

      

      
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    (b)         Licensee
shall furnish to Licensor with each payment of Royalties as provided in Section 4 hereof, a
Royalty Report as described in Section 4(c) hereof,
or in another mutually agreeable format that may be reasonably established by
Licensor from time to time. The information on this Royalty Report shall be held
and treated by the Licensor and its representatives and affiliates in confidence
and will not, without the prior written consent of Licensee, be disclosed or
used by the Licensor or its representatives or affiliates other than in
connection with this Agreement.  Notwithstanding the foregoing, the
information in the Royalty Report will not be deemed confidential if such
information becomes generally available to the public other than as a result of
a disclosure by the Licensor or any of its representatives or affiliates. Such
Royalty Report shall be submitted whether or not they reflect any sales. Failure
to submit timely reports and/or any payments will incur an additional charge of
one (1%) per month on any balance unpaid as of the thirtieth day following
Licensee’s receipt of written notice from Licensor of such failure to timely
pay. The receipt or acceptance by Licensor of any Royalty Reports pursuant to
this license or of any Royalties paid hereunder (or the cashing of any Royalty
checks paid hereunder) shall not preclude Licensor or Licensee from questioning
the correctness thereof at any time.

     

    (c)          Licensor,
at its expense, shall have the right, no more than once per Contract Year,
during regular business hours, upon ten (10) business days' notice to Licensee,
to examine or audit the books and accounts and records of Licensee which pertain
to the manufacture, sale, display, advertising, and promotion of Licensee
Products sold under the Mark and any other books and records that may be
reasonably required by Licensor's accountants in order to verify the figures
reported in any Royalty Report.  Such books of accounts and records
shall be made available to Licensor and its accountants at a location mutually
agreed upon by the parties. Licensee shall render all commercially reasonable
assistance to Licensor and its accountants for the purpose of facilitating the
checking or auditing of sales and of the figures set forth in any of Licensee's
Royalty Reports. If, as a result of such examination or audit, Licensor's
accountants determine that the amount of royalties due to Licensor was greater
than the amount of Royalties reported by Licensee in its quarterly Royalty
Reports, Licensor shall promptly furnish to Licensee a copy of the report
furnished of its accountants setting forth the amount of the deficiency in
payment of Royalties (the “Deficiency”) and
showing, in reasonable detail, the bases upon which the same was determined.
Licensee shall remit to Licensor a sum equal to the amount of the Deficiency so
claimed within thirty (30) days after notification of the Deficiency, plus
accrued interest calculated at the rate of twelve percent (12%) per annum. In
addition, if the examination or audit reveals an underpayment of the Royalties
in any six month period and Licensee does not dispute the amount of the alleged
underpayment, Licensee shall promptly remit to Licensor the reasonable cost of
such examination or audit.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    12     Indemnification/Insurance:

    

    (a) Licensee, at its expense, shall
defend and indemnify and save and hold Licensor harmless from and against any
and all liabilities, claims, causes of action, suits, damages and expenses,
including reasonable attorney's fees and expenses, which Licensor becomes liable
for, or may incur or be compelled to pay by reason of acts, whether of omission
or commission, that may be committed or suffered by Licensee or any of its
partners, servants, agents, contractors, consultants, advisors, employees or
affiliates in connection with Licensee's performance of this Agreement or in
connection with the Licensed Products (other than Licensed Products acquired
from Licensor or its affiliates) manufactured, distributed, sold, displayed,
advertised or promoted by Licensee, irrespective of whether any prior approvals
shall have been given by Licensor with respect thereto. The indemnification
shall not apply to any claims initiated because of an act or omission by
Licensor or to any trademark infringement action brought by a third party
against Licensee or Licensor, provided that Licensee has abided by the terms of
this Agreement. The provisions of this Section 12 (a) shall
survive the termination of this Agreement.

    

    (b)
Licensee agrees to obtain and keep in full force and effect, during the term of
this Agreement at its sole cost and expense, policies of insurance insuring
against those risks customarily insured under general liability policies,
including, but not limited to, "product liability" and "completed operations".
Such policies of insurance shall have endorsements or coverage with combined
single limits of not less than one million dollars ($1,000,000) and shall name
the Licensor as an additional insured thereunder. Licensee shall notify Licensor
within thirty (30) days of Licensee’s receipt of any notice of cancellation. It
is also agreed that the "other insurance" clause, if any, will be deleted from
such policy, that the insurance under such policy shall be primary, and that
other insurance in force is neither primary nor contributing.

    

    (c)
Licensee shall provide to Licensor, within thirty (30) days of the effective
date of this Agreement, a certificate showing proof that such policies of
insurance are in effect.

    

    (d)
Licensee shall give Licensor thirty (30) days' prior written notice of any
reduction in limits or termination of such policies of insurance, or of any
intention on the part of Licensee not to pay the premiums thereof.

     

    13     Termination:

     

    (a)          This
Agreement shall be terminable only in accordance with the provisions of this
section.  In the event of any material breach of this Agreement, the
aggrieved party shall promptly provide written notice of the specific material
breach, and, except as set forth in Section 13(b), the
party committing such breach shall have sixty (60) days after its receipt of the
written notice of the specific material breach to effect a cure
thereof.  If such a material breach is not cured within such sixty
(60) day period, the aggrieved party shall have the right to terminate this
Agreement by written notice of termination, provided, however, if such material
breach is of a nature that it is unable to be cured within such sixty (60) day
period despite the good faith efforts of the party receiving the notice, then
the aggrieved party may not terminate this Agreement so long as the other party
is diligently procuring such cure and, in fact, subsequently effects such cure
within a reasonable period of time.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (b)       
  Without prejudice to any other rights hereunder, each party (the
“Terminating
Party”) shall have the right to terminate this Agreement on notice to the
other party (the “Non-Terminating
Party”), effective immediately upon the Non-Terminating Party’s receipt
of said notice, in the event of the occurrence of any of the following
events:

     

    (i)           the
adjudication of insolvency or the making by the Non-Terminating Party of an
assignment for the benefit of creditors;

     

    (ii)           the
filing by or against the Non-Terminating Party of, or the entry of an order
for relief against the Non-Terminating Party in any voluntary or good faith
involuntary proceeding under any bankruptcy, insolvency, reorganization or
receivership law, including without limitation the U.S. Bankruptcy code, or an
admission seeking relief as herein allowed, which filing or order shall not have
been vacated within sixty (60) calendar days from the entry
thereof;

     

    (iii)           the
appointment of a receiver for all or a substantial portion of the
Non-Terminating Party’s property and such appointment shall not be discharged or
vacated within sixty (60) calendar days of the date thereof; or

     

    (iv)           the
assumption of custody, attachment or sequestration by a court of competent
jurisdiction of all or a significant portion of the Non-Terminating Party’s
property.

     

    (c)         
Licensee’s failure to pay the Minimum Royalty (or any portion thereof) in
accordance with the provisions of Section 4 shall be
considered a material breach of this Agreement that is subject to cure within
ten (10) business days after Licensee’s receipt of a written notice of such
breach.  Licensee’s failure to pay any material amount due under Section 4 of this
Agreement other than the Minimum Royalty shall be considered a material breach
of this Agreement that is subject to cure within thirty (30) days after
Licensee’s receipt of a written notice of the specific amount due to Licensor,
provided, however, if: i) there is a good faith dispute about the amount that is
due to Licensor under Section 4, then
Licensee’s failure to pay the disputed amount will not be a material breach of
this Agreement unless Licensee fails to pay to Licensor any amount ultimately
deemed due within thirty (30) days of the final resolution of the good faith
dispute; or ii) as a result of an audit conducted in accordance with Section 11(c) of this
Agreement, it is determined that Licensee owes Licensor an additional amount
under Section
4, then Licensee’s failure to pay that amount will not be a material
default of this Agreement unless Licensee fails to pay to Licensor any amount
ultimately deemed due within thirty (30) days of the final resolution of the
audit.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (d)          In
the event of any non-material breach under this Agreement, the aggrieved party
shall promptly provide written notice of the non-material breach.  The
parties agree that non-material breaches cannot be a basis for terminating this
Agreement.  The parties further agree that the matters that may result
in non-material breaches include, but are not limited to, the
following:

     

    (i)           Whether
Licensee has sold a Voit-branded product to a customer that is not covered by
Licensee’s license under this Agreement;

     

    (ii)           Whether
Licensee has sold a Voit-branded product that is not covered by Licensee’s
license under this Agreement;

     

    (iii)           Whether
a product advertised, offered or sold by Licensee is a new product that requires
approval under Section
5(b) or is already a Licensee Product as defined in this
Agreement;

     

    (iv)           Whether
Licensee or Licensor has complied with the approval provisions of Section 5;
and

     

    (v)           Whether
Licensee has complied with the requirements of Section
9(b).

     

    Licensee agrees to refrain
from intentionally or willfully taking any actions that would violate the spirit
of this Agreement.

     

     (e)         If
Licensee has intentionally and willfully failed to obtain the approval required
under Section
5(b) for more than five (5) products in any single Contract Year, then
such intentional and willful failure shall constitute a material breach of the
Agreement that is subject to the provisions of Section
13(a).  In that case, Licensee will be deemed to have cured the
breach by either obtaining Licensor’s approval for the products in accordance
with the provisions of Section 5(b) or by
stopping future sales of the products within sixty (60) days of Licensee’s
receipt of the notice required by Section 13(a).

     

    (f)          Upon
termination of this Agreement, unless otherwise permitted by Licensor, Licensee
shall discontinue using the Voit Intellectual Property in connection with the
manufacture, advertisement, sale, distribution and promotion of the Voit-branded
Products, with the following exceptions:

     

    (i)          Licensee
and its Permitted Third Parties shall be permitted to use the Voit Intellectual
Property in accordance with the provisions of this Agreement to fulfill any
orders for Voit-branded Products received as a result of catalogs then in
circulation, including catalogs published by or for customers of
Licensee.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    (ii)         For
twenty-four (24) months (the “Sell-Off Period”)
following the termination of this Agreement in accordance with the provisions of
Section 13,
Licensee shall be permitted to advertise, sell or otherwise distribute
(a) Licensee’s inventory of all Voit-branded products and unfinished
Licensee Products meant to be Voit-branded products when finished, including the
right to finish any work-in-process and use supplies of raw materials on hand or
ordered, (b) all Voit-branded products ordered from a supplier prior to
termination under purchase orders which cannot be cancelled without penalty to
or a claim against Licensee and (c) all Voit-branded products ordered prior
to termination under binding sales orders outstanding at the time of such
termination which sales orders cannot be cancelled without penalty to or a claim
against Licensee.  Licensee will send to Licensor a summary of all of
the inventory of Voit-branded products described in subsections (a), (b) and (c)
of this paragraph.

     

    (iii)         The
parties agree that during the Sell-Off Period, they shall abide by and uphold
their rights and obligations accrued or existing as of termination of the
Agreement.  The parties further agree that the representations, rights
and obligations contained in Sections 5, 7, 8, 10, 11,
12(a), 13, 14, 17, 18, 19 and
20 will survive the termination of this Agreement.

     

    (g)          At
the conclusion of the Sell-Off Period, Licensee’s obligation to pay Licensor any
future royalty, including the Minimum Royalty, shall terminate, provided,
however, this provision will not affect Licensee’s obligation to pay Licensor
any royalty due and owing as of the end of the Sell-Off Period.  If
the Sell-Off Period ends at any time other than the end of a Contract Year, the
Minimum Royalty for that Contract Year will be pro-rated based on a fraction,
the numerator of which is the number of months of the Contract Year that
occurred prior to the end of the Sell-Off Period and the denominator of which
will be 12.

     

    (h)          Any
termination under this Section 13 shall not
affect any rights that have accrued prior to termination (including, without
limitation, royalties due to Licensor) and shall be without prejudice to any
other legal or equitable remedies to which the terminating party may be entitled
by reason of such rights.  Notwithstanding anything to the contrary
contained herein, if this Agreement is terminated during a Contract Year in
which Licensee has paid a Minimum Royalty (i.e., after January 30), then
Licensee shall be subject to the terms of Section 4(b) for the
remainder of such Contract Year and shall only be liable to pay royalties at a
rate equal to four percent (4%) of all Net Sales during the subsequent Contract
Years in the Sell-Off Period with no obligation to pay a Minimum Royalty.
Notwithstanding anything to the contrary contained herein, if this Agreement is
terminated during a Contract Year in which Licensee has not paid a Minimum
Royalty (i.e., before January 30), then Licensee shall only be liable to pay
royalties at a rate equal to four percent (4%) of all Net Sales during the
entire Sell-Off Period with no obligation to pay a Minimum
Royalty.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    14          Method of
Payment:  All payments due pursuant to this Agreement shall be
made by check unless Licensor requests in writing that a specific payment be
sent via electronic transfer and simultaneously provides the electronic transfer
instructions in accordance with Section 17
hereof.

     

    15        Relationship of the
Parties:  The relationship of Licensee to Licensor is that of
an independent contractor and neither Licensee nor its agents or employees shall
be considered employees of the Licensor. Licensor shall pay its costs and
expenses incurred in connection with the preparation of this Agreement and its
representation hereunder. This Agreement does not constitute and should not be
construed as constituting a partnership or joint venture or grant of a franchise
between Licensor and Licensee.

     

    16   Assignment:  This
Agreement may be assigned by Licensor provided assignee agrees to be bound by
the terms and conditions of this Agreement. In the event of a sale, transfer,
assignment, pledge, lien, merger or change of control of either party, this
Agreement will remain binding on the parties and their successors.  It
is the intention of the parties that Licensee or a Permitted Third Party shall
sell and distribute the Licensee Products. Licensee may assign, sublicense
and/or subcontract its right under this Agreement to any direct or indirect,
wholly-owned subsidiary of Licensee by providing Licensor with written notice
thereof.  Notwithstanding anything to the contrary in this Agreement,
Licensee may assign, sublicense and/or subcontract its rights or any part of its
rights under this Agreement to any other entity provided that it obtains prior
written consent from Licensor, which consent a) will not be unreasonably
withheld; and b) will be provided within ten (10) days of Licensor’s receipt of
written notice from Licensee.   For purposes of this Agreement,
neither a merger nor a change of control of Licensee (including, without
limitation, a sale of all or substantially all assets or a majority of the
voting stock of Licensee, or of any permitted assignee, sublicensee or
subcontractor) shall be deemed a transaction requiring Licensor’s consent or
that affects the validity or effectiveness of this Agreement.  In the
event of an assignment, sublicense, subcontract, merger or change of control of
Licensee in accordance with the provision of this paragraph, the Agreement will
remain binding on Licensor’s and Licensee’s successors.  Any consent by
Licensor to the assignment of this Agreement shall not relieve Licensee from its
obligations and liabilities hereunder, unless Licensor shall also expressly in
writing agree to such relief. In the event of any assignment, all reference
herein to Licensee shall mean both Licensee and its assignees, and the assignees
shall not be entitled to make any further assignment of this Agreement without
the prior written consent of Licensor, which consent will not be unreasonably
withheld.

    

     17      Notices; Submissions by Licensee for
Approval:

     

    (a)          Any
notice, demand, waiver, consent, approval or disapproval (collectively referred
to as “notice”)
required or permitted herein shall be in writing, and shall be given either
personally and receipted, by messenger, by air courier, or by prepaid registered
or certified mail, with return receipt requested, addressed to the parties at
the following addresses or at
such other address as Licensor or Licensee may hereafter designate in
writing:

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      
        	
                If
      to Licensor:

              	
                If
      to Licensee:

              
	 
      	 
      
	
                Voit
      Corporation

                4414
      Centerview Drive

                Suite
      204

                San
      Antonio, TX  78228

                Attn:  Mr.
      Jose Ramon Elizondo

              	
                Sport
      Supply Group Inc.

                1901
      Diplomat Drive

                Farmers
      Branch, TX  75234

                Attn:  Mr.
      Terrence M. Babilla

              

      

    

    

    With a
copy sent to:

    Voit
Mexico

    Poniente
128 #579

    Colonia
Industrial Vallejo

    Mexico
City, C.P.02300

    Attn:  Mr.
Manuel Morales

     

    (b)           A
notice shall be deemed received upon the date of deliver if given personally, by
messenger, by air courier, or, if given by mail, on the date set forth on the
registered or certified mail receipt. Any party may change its address for the
purposes of notice by giving notice in accordance with the terms and conditions
of this Section
17.

     

    (c)           Any
materials submitted by Licensee to Licensor for approval pursuant to this
Agreement shall be submitted personally and receipted, by messenger, by air
courier, or by prepaid registered or certified mail, with return receipt
requested.

     

    18    
APPLICABLE
LAW:  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF  TEXAS WITHOUT GIVING EFFECT
TO THE PRINCIPLES OF CONFLICT OF LAWS. ANY CASE, CONTROVERSY, SUIT, ACTION OR
PROCEEDING ARISING OUT OF, IN CONNECTION WITH, OR RELATED TO THIS AGREEMENT
SHALL BE BROUGHT IN ANY FEDERAL OR STATE  COURT LOCATED IN THE COUNTRY
AND STATE OF TEXAS. LICENSOR AND LICENSEE HEREBY EXPRESSLY SUBMIT TO THE
PERSONAL JURISDICTION AND VENUE OF ANY FEDERAL OR STATE COURT LOCATED IN THE
COUNTRY AND STATE OF TEXAS.

     

    19    
Cumulative
Remedies:  All remedies, rights, undertakings, obligations and
agreements contained herein shall be cumulative, and none of them shall be in
limitation of any other remedy, right, undertaking, obligation or agreement of
either party, including without limitation any rights or remedies accruing under
the Uniform Commercial Code and any other applicable law.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    20    
Modification,
Amendment, Supplement or Waiver:  No modification, amendment,
supplement to or waiver of this Agreement or any of its provisions shall be
binding upon the parties hereto unless made in writing and duly signed by the
parties to this Agreement. A failure or delay of any party to this Agreement to
enforce at any time any of the provisions of this Agreement or to require at any
time performance of any of the provisions hereof, shall in no way be construed
to be a waiver of such provisions of this Agreement. A waiver by either party of
any of the terms and conditions of this Agreement in any one instance shall not
be deemed a waiver of such terms or conditions in the future, or of any
subsequent breach thereof.

     

    21    
Entirety of
Agreement:  This Agreement constitutes the entire agreement
between the parties and supersedes all previous agreements, promises,
representations, understandings, and negotiations, whether written or oral,
between the parties with respect to the subject matter hereof.

     

    22     Severability: In the
event any one or more of the provisions of this Agreement shall for any reason
be held to be invalid, illegal, or unenforceable, the remaining provisions of
this Agreement shall be unimpaired, and the invalid, illegal, or unenforceable
provision(s) shall be replaced by a mutually acceptable provision(s), which,
being valid, legal and enforceable comes closest to the intention of the parties
underlying the invalid, illegal or unenforceable provision(s).

     

    23     Headings: The
headings in this Agreement are for the purposes of reference only and shall not
in any way limit or otherwise affect the meaning or interpretation of any of the
terms hereof.

     

    24    
Schedules:  The
terms and provisions of the schedules attached to this Agreement are hereby
incorporated herein as if fully set forth herein.

     

    [Signature
Page Follows]

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

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

     

    
      
        
          
            
              
                	
                        VOIT
      CORPORATION

                      
	 
      	 
      
	
                        By:

                      	
                        /s/ Jose R. Elizondo

                      
	
                        Name:

                      	
                        Jose
      R. Elizondo

                      
	
                        Title:

                      	
                        CEO

                      
	 
      	 
      
	
                        SPORT
      SUPPLY GROUP, INC.

                      
	 
      	 
      
	
                        By:

                      	
                        /s/ Terrence M. Babilla

                      
	
                        Name:  

                      	
                        Terrence
      M. Babilla

                      
	
                        Title:

                      	
                        President

                      

              

            

          

        

      

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    SCHEDULE
A

     

    TRADEMARKS

     

    Trademarks:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            Owner

                                          	 	
                                            Trademark

                                          	 	
                                            App
      No /

                                            App
      date

                                          	 	
                                            Reg
      No/ Reg

                                            Date

                                          	 	
                                            Status

                                          
	
                                            Voit
      Corporation

                                          	 	
                                            Voit,
      Standard Character Mark

                                          	 	
                                            11/4/2008

                                          	 	
                                            77562705/

                                          	 	
                                            LIVE

                                          
	 	 	 	 	 	 	 	 	 
	
                                            Voit
      Corporation

                                          	 	
                                            Voit,
      Standard Character Mark

                                          	 	
                                            9/4/2008

                                          	 	
                                            77562682/

                                          	 	
                                            LIVE

                                          
	 	 	 	 	 	 	 	 	 
	
                                            Voit
      Corporation

                                          	 	
                                            Voit,
      Typed Drawing

                                          	 	
                                            1/29/2001

                                          	 	
                                            76201542/

                                          	 	
                                            LIVE

                                          
	 	 	 	 	 	 	 	 	 
	
                                            Voit
      Corporation

                                          	 	
                                            Voit,
      Typed Drawing

                                          	 	
                                            5/18/1983

                                          	 	
                                            73426505/

                                          	 	
                                            LIVE

                                          
	 	 	 	 	 	 	 	 	 
	
                                            Voit
      Corporation

                                          	 	
                                            Voit,
      Typed Drawing

                                          	 	
                                            8/20/1981

                                          	 	
                                            73324531/

                                          	 	
                                            LIVE

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Voit
Intellectual Property shall include the trademarks listed above as well as all
graphic designs, patents, copyrights, logos, other designs and intellectual
property rights attributable to VOIT CORPORATION.

      

    
      
         

      

      
        
          Schedule A
- 1  

        

        
          

        

      

      
         

      

    

    SCHEDULE
B

     

    LICENSED
PRODUCTS

     

    
      	
              1.

            	
              Inflated
      balls and accessory items

            

    

     

    
      	
              2.

            	
              Gym
      mats

            

    

     

    
      	
              3.

            	
              Baseballs
      and softballs

            

    

     

    
      	
              4.

            	
              Badminton
      birds

            

    

     

    
      	
              5.

            	
              Baseball
      batting tees

            

    

     

    
      	
              6.

            	
              Field
      markers

            

    

     

    
      	
              7.

            	
              Baseball
      bases

            

    

     

    
      	
              8.

            	
              Baseball
      and softball bats

            

    

     

    
      	
              9.

            	
              Lacrosse
      equipment

            

    

     

    
      	
              10.

            	
              Track
      and field equipment

            

    

     

    
      	
              11.

            	
              Soccer
      equipment including but not limited to shin guards, uniforms, socks, goal
      keeper gloves, indoor/outdoor foam balls, soccer goals and nets, and other
      accessories

            

    

     

    
      	
              12.

            	
              Exercise
      equipment

            

    

     

    
      	
              13.

            	
              Physical
      education equipment and
accessories

            

    
 

    
      
         

      

      
        
          Schedule
B - 1Unassociated Document

    Exhibit
10.2

    Employment
Offer Letter dated March 22, 2010 between Geeknet, Inc. and Matthew
Sweeney

    

    
      
        	
                

              	 	
                650
      Castro Street, Suite 450 Mountain View,
  CA  94041

              

      

    

    

    March
22, 2010

    

    Mr.
Matthew J. Sweeney

    144
Sherman Ct.

    Fairfield,
CT  06824

    

    Dear
Matt,

    

    I am
delighted to offer you the opportunity to join me and the rest of the Geeknet
team (the “Company”) in the position of Chief Revenue Officer. In this role you
will report to me.

    

    In
conjunction with this position, you will receive the following:

    

    
      	
               
      

            	
              ·

            	
              Annual Base
      Salary: You will receive an annual base salary of three hundred
      thousand dollars ($300,000.00), minus applicable tax
      withholdings.  Such compensation shall be paid bi-monthly in
      accordance with normal Company payroll practices.  I am sure you
      recognize that the quotation of an annual salary rate is for purposes of
      communication and is not intended to imply a specific condition or length
      of employment.

            

    

    

    
      	
               
      

            	
              ·

            	
              Variable Target
      Compensation Plan:  You will be eligible to participate
      in a variable target compensation plan.  This plan will be drawn
      up under separate cover within sixty days from your date of hire and will
      be based upon attainment of your individual objectives.  Your
      variable target compensation plan (commission/bonus for this fiscal year)
      will be based on an annual “target” of $300,000.00 prorated from your
      start date.

            

    

    

    
      	
               
      

            	
              ·

            	
              Stock
      Option Plan: If you
      accept this offer of employment, I will recommend that you be granted a
      stock option (“Option”) to purchase four hundred sixty thousand (460,000)
      shares of the Company’s common stock.  This Option is subject to
      approval by the Company’s Board of Directors.  This Option is
      expected to be granted on the last business day of the month in which your
      employment with the Company begins.  The Option price shall be the
      NASDAQ Global Market Official Closing Price on the date of grant. 
      This Option will vest according to the following plan schedule: 25% vested
      after one year and 1/48th per month thereafter. You will be responsible
      for any taxes associated with exercising the Option shares.  The
      granting of Options is wholly discretionary in nature, in recognition of
      performance or anticipated performance, and does not create any obligation
      on the part of the Company to maintain your employment through any part of
      the vesting schedule or to grant additional options in the
      future.

            

    

    

    
      	
               
      

            	
              ·

            	
              Employee
      Benefits: You will receive and be eligible to participate in the
      Company’s normal employee benefits package, including health insurance
      (medical, dental and vision insurance), life and disability insurances,
      flexible spending account program as well as our 401(k) retirement
      plan.  You will also receive 15 working days of paid time off
      (PTO) per year accrued bi-monthly on the basis of your length of
      employment from your date of hire in a regular, full-time
      position.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Mr.
Matthew Sweeney

    March 22,
2010

    Page
Two

    

    At Will
Employment

    

    This
offer of employment, if accepted, does not constitute an employment contract;
your employment with Geeknet, Inc. is “at will” and may be terminated by you or
the Company at any time for any reason or no reason, as permitted by
law.

     

    Entire
Agreement

     

    This offer of employment, and the
associated Employment Agreement dated March 22, 2010 and attached as
Exhibit
A (the
“Agreement”), constitute the entire agreement of the
parties hereto as to the
subject matter herein and supersede and replace all prior or contemporaneous
agreements whether written or oral.  Any conflict between the
provisions of this offer letter and the Agreement shall be resolved in favor of
this Agreement.  This offer letter may not be amended or
altered in any way by oral statements.  Terms of this offer are
confidential.

     

    Effectiveness of
Offer

     

    This
offer of employment shall remain in effect until close of business on Friday,
March 26, 2010.

     

    Additional
Requirements

     

    At the
commencement of your employment, you will be required to sign Company policy
documents on a variety of topics, including confidentiality, conflict of
interest, business conduct and ethics. This offer is contingent on you
satisfactorily passing a background investigation and completion of reference
checks.

     

    The
Immigration Reform Control Act requires employers to verify eligibility of all
personnel for employment in the United States.  Enclosed is the
Eligibility Verification Form (INS form I-9), which specifies which documents
you are required to produce to establish such eligibility.  Please
complete Part A of the I-9 and bring it and the required documentation with you
when you report for work on your first day.

    

    At
Geeknet, Inc., we depend on the commitment, enthusiasm and skills of our team
members to lead the Company’s growth.  Each person has both the luxury
and the duty to contribute to the future success of the Company in the most
meaningful way he or she can.  We therefore expect you to play a key
role in the growth and success of our business.  I look forward to
having you on the team and to working with you to carry out the vision and
mission of Geeknet, Inc.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Mr.
Matthew Sweeney

    March 22,
2010

    Page
Three

    

    Acceptance

    

    Matt, I
trust that this offer reflects both the spirit of our discussions and my
enthusiasm for your candidacy.  Your signature below indicates your
acceptance of this offer of employment.  Please sign and return a copy
to David Fay, our Sr. Director of Human Resources via fax at (650) 425-3776 or
by mail.

    

    
      
        	
                Sincerely

              
	 
      
	
                /s/
      Scott L. Kauffman

              
	
                Scott
      L. Kauffman

              
	
                President
      & CEO

              

      

    

    

    I accept
this offer:

    

    
      
        	
                /S/ Matthew J. Sweeney

              	
                3/25/10

              
	
                Matthew
      J. Sweeney

              	
                Date

              

      

    

    

    Start
Date:  April
5, 2010

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      GEEKNET,
INC.

       

      EMPLOYMENT
AGREEMENT

       

      This
Employment Agreement (the “Agreement”) is made and entered into by and between
Matthew Sweeney (“Executive”) and Geeknet, Inc. (the “Company”), effective as of
March 22, 2010 (the “Effective Date”).

       

      1.           Duties and Scope of
Employment.

       

      (a)           Position and
Duties.  Executive will serve as Chief Revenue Officer of the
Company.  Executive will render such business and professional
services in the performance of Executive’s duties, consistent with Executive’s
position within the Company, as will reasonably be assigned by the Company’s
President and Chief Executive Officer (“CEO”).  The CEO may modify
Executive’s job title and duties as it deems necessary and appropriate in light
of the Company’s needs and interests from time to time.  The period of
Executive’s employment under this Agreement is referred to herein as the
“Employment Term.”

       

      (b)           Obligations.  Executive
will perform Executive’s duties faithfully and to the best of Executive’s
ability and will devote Executive’s full business efforts and time to the
Company.  For the duration of the Employment Term, Executive agrees
not to actively engage in any other employment, occupation or consulting
activity for any direct or indirect remuneration without the prior approval of
the CEO.

       

      2.           At-Will
Employment.  The Company and Executive acknowledge that
Executive’s employment is and will continue to be at-will, as defined under
applicable law.  If Executive’s employment terminates for any reason,
including (without limitation) any termination prior to or following a Change of
Control, Executive will not be entitled to any acceleration of Award vesting or
severance pay based on termination of employment other than as provided by this
Agreement.

       

      3.           Compensation.

       

      (a)           Base
Salary.  The base salary is described in the Offer
Letter.

       

      (b)           Discretionary
Bonus.  This bonus plan is described in the Offer
Letter.

       

      (c)           Equity.  Executive
will be eligible to receive awards of stock options, restricted stock,
restricted stock units, stock appreciation rights, performance units and
performance shares or other equity awards (“Awards”) pursuant to any plans or
arrangements the Company may have in effect from time to time.  For
the avoidance of doubt, the initial Award is described in the Offer Letter. The
Board or its committee will determine in its discretion whether Executive will
be granted any additional Awards and the terms of any such Award in accordance
with the terms of any applicable plan or arrangement that may be in effect from
time to time.

       

      4.           Employee
Benefits.  Executive will be entitled to participate in the
employee benefit plans currently and hereafter maintained by the Company of
general applicability to other senior executives of the Company.  The
Company reserves the right to cancel or change the benefit plans and programs it
offers to its employees at any time.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      5.           Vacation.  Executive
will be entitled to paid vacation in accordance with the Company’s vacation
policy, with the timing and duration of specific vacations mutually and
reasonably agreed to by the parties hereto.  Upon Executive’s
termination of employment, Executive will be entitled to receive Executive’s
accrued but unpaid vacation through the date of Executive’s
termination.

       

      6.           Expenses.  The
Company will reimburse Executive for reasonable travel, entertainment or other
expenses incurred by Executive in the furtherance of or in connection with the
performance of Executive’s duties hereunder, in accordance with the Company’s
expense reimbursement policy as in effect from time to time.

       

      7.           Severance
Benefits.

       

      (a)           Termination for other than
Cause, Death or Disability Prior to a Change of Control or after Twelve Months
Following a Change of Control.  If prior to a Change of Control
or after twelve (12) months following a Change of Control, the Company (or any
parent or subsidiary of the Company) terminates Executive’s employment other
than for Cause, death or Disability, then, subject to Section 7(c) below,
Executive will receive the following severance from the Company:

       

      (i)              Severance
Payment.  Executive will receive: (A) continuing payments of
severance pay (less applicable withholding taxes) for a period of three (3)
months from the date of such termination equal to the pro-rata portion of
Executive’s Base Salary (as in effect immediately prior to Executive’s
termination) and (B) Executive’s quarterly bonus under the Company’s Named
Executive Officer Bonus Policy and Plan for the entire quarter in which such
termination occurred based on the achievement of the performance goals under
such plan and the quarterly bonus that would have otherwise been
earned.

       

      (ii)             Post-Termination Exercise
Period.  Executive’s outstanding Awards will remain exercisable
for at least ninety (90) days following the date of such termination or such
longer period as prescribed in the respective stock plan and agreement for each
Award.  Notwithstanding the foregoing, in no event may the Award be
exercised after its expiration date as provided in the respective agreement for
each Award.

       

      (iii)            Continued Employee
Benefits.  Executive will receive Company-paid coverage for a
period of three (3) months for the cost of continuation coverage for Executive
and Executive’s eligible dependents under the Company’s Benefit
Plans.

       

      (b)           Termination for other than
Cause, Death or Disability or Constructive Termination Within Twelve Months
Following a Change of Control.  If within twelve (12) months
following a Change of Control, (i) the Company (or any parent or subsidiary of
the Company) terminates Executive’s employment other than for Cause, death or
Disability, or (ii) upon Executive’s Constructive Termination with the Company
(or any parent or subsidiary of the Company), then, subject to Section 7(c)
below, Executive will receive the following severance from the
Company:

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      (i)              Severance
Payment.  Executive will receive: (A) continuing payments of
severance pay (less applicable withholding taxes) for a period of six (6) months
from the date of such termination equal to the pro-rata portion of Executive’s
Base Salary (as in effect immediately prior to Executive’s termination) and (B)
Executive’s quarterly bonus under the Company’s Named Executive Officer Bonus
Policy and Plan for the entire quarter in which such termination occurred based
on the achievement of performance goals under such plan and the quarterly bonus
that would have otherwise been earned.

       

      (ii)             Accelerated
Vesting.  If Executive holds unvested Awards, then the unvested
portion of each Award that would normally vest over the six (6) months following
termination will immediately vest and become exercisable.  The Awards
will remain exercisable, to the extent applicable, following the termination for
the period prescribed in the respective stock plan and agreement for each
Award.

       

      (iii)            Post-Termination Exercise
Period.  Executive’s outstanding Awards will remain exercisable
for at least ninety (90) days following the date of such termination or such
longer period as prescribed in the respective stock plan and agreement for each
Award.  Notwithstanding the foregoing, in no event may the Award be
exercised after its expiration date as provided in the respective agreement for
each Award.

       

      (iv)            Continued Employee
Benefits.  Executive will receive Company-paid coverage for a
period of six (6) months for the cost of continuation coverage for Executive and
Executive’s eligible dependents under the Company’s Benefit Plans.

       

      (c)           Separation and Release of
Claims Agreement.  The receipt of any severance payments or
benefits pursuant to this Agreement is subject to the Executive signing and not
revoking a separation and release of claims agreement in a form reasonably
acceptable to the Company (the “Release”), which must become effective no later
than the 60th day
following the Executive’s termination of employment (the “Release Deadline”),
and if not, the Executive will forfeit any right to severance payments or
benefits under this Agreement.  To become effective, the Release must
be executed by the Executive and any revocation periods (as required by statute,
regulation, or otherwise) must have expired without the Executive having revoked
the Release.  In addition, no severance payments or benefits will be
paid or provided until the Release actually becomes effective.  In the
event the Executive’s termination of employment occurs at a time during the
calendar year where the Release Deadline could occur in the calendar year
following the calendar year in which Executive’s termination occurs, then any
severance payments or benefits under this Agreement that would be considered
Deferred Compensation Separation Benefits (as defined in Section 7(h)) will be
paid on the first payroll date to occur during the calendar year following the
calendar year in which such termination occurs, or such later time as required
by (i) the payment schedule applicable to each payment or benefit as set forth
in Section 7(a) and 7(b), (ii) the date the Release becomes effective,
or (iii) Section 7(h).

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

       

      (d)           Timing of Severance
Payments.  The Company will pay the severance payments to which
Executive is entitled as salary continuation with the same timing as in effect
immediately prior to Executive’s termination of employment.  If
Executive should die before all amounts have been paid, such unpaid amounts will
be paid in a lump sum payment (less any withholding taxes) to Executive’s
designated beneficiary, if living, or otherwise to the personal representative
of Executive’s estate.

       

      (e)           Voluntary Resignation;
Termination due to Death or Disability.  If Executive’s
employment with the Company (or any parent or subsidiary of the Company)
terminates voluntarily by Executive (except upon Constructive Termination
following a Change of Control), or due to Executive’s death or Disability, then
(i) all vesting will terminate immediately with respect to Executive’s
outstanding Awards, (ii) all payments of compensation by the Company to
Executive hereunder will terminate immediately (except as to amounts already
earned through the date of termination), and (iii) Executive will not be
entitled to receive severance or other benefits except for those benefits (if
any) which do not concern acceleration of Award vesting or severance pay based
on termination of employment as may then be established under other Company
policies or programs, if any.

       

      (f)           Termination for
Cause.  If Executive’s employment with the Company terminates
for Cause by the Company (or any parent or subsidiary of the Company), then (i)
all vesting will terminate immediately with respect to Executive’s outstanding
Awards, (ii) all payments of compensation by the Company to Executive hereunder
will terminate immediately (except as to amounts already earned as of the date
Executive receives written notification of Executive’s termination for Cause),
and (iii) Executive will not be entitled to receive severance or other benefits
except for those benefits (if any) which do not concern acceleration of Award
vesting or severance pay based on termination of employment as may then be
established under other Company policies or programs, if any.

       

      (g)           Exclusive
Remedy.  In the event of a termination of Executive’s
employment with the Company (or any parent or subsidiary of the Company), the
provisions of this Section 7 are intended to be and are exclusive and in lieu of
any other rights or remedies to which Executive or the Company may otherwise be
entitled, whether at law, tort or contract, in equity, or under this
Agreement.  Executive will be entitled to no severance or other
benefits upon termination of employment with respect to acceleration of Award
vesting or severance pay other than those benefits expressly set forth in this
Section 7.

       

      (h)          Section
409A.  

       

      (i)              Notwithstanding
anything to the contrary in this Agreement, if Executive is a “specified
employee” within the meaning of Section 409A at the time of Executive’s
termination, then, if required, the severance and benefits payable to Executive
pursuant to this Agreement (other than due to death), if any, and any other
severance payments or separation benefits which may be considered deferred
compensation under Section 409A (together, the “Deferred Compensation Separation
Benefits”), which are otherwise due to Executive on or within the six (6) month
period following Executive’s termination will accrue during such six (6) month
period and will become payable in a lump sum payment on the date six (6) months
and one (1) day following the date of Executive’s termination of employment or
the date of Executive’s death, if earlier.  All subsequent Deferred
Compensation Separation Benefits, if any, will be payable in accordance with the
payment schedule applicable to each payment or benefit.

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

       

      (ii)             Any
amount paid under this Agreement that qualifies as a payment made as a result of
an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii)
of the Treasury Regulations that does not exceed the Section 409A Limit (as
defined below) will not constitute Deferred Compensation Separation Benefits for
purposes of clause (i) above.

       

      (iii)            The
foregoing provisions are intended to comply with the requirements of Section
409A so that none of the severance payments and benefits to be provided
hereunder will be subject to the additional tax imposed under Section 409A, and
any ambiguities herein will be interpreted to so comply.  Executive
and the Company agree to work together in good faith to consider amendments to
this Agreement and to take such reasonable actions which are necessary,
appropriate or desirable to avoid imposition of any additional tax or income
recognition prior to actual payment to Executive under Section
409A.

       

      8.           Limitation on
Payments.  In the event that the severance and other benefits
provided for in this Agreement or otherwise payable to Executive (i) constitute
“parachute payments” within the meaning of Section 280G of the Internal Revenue
Code of 1986 (“Code”) and (ii) but for this Section 8, would be subject to the
excise tax imposed by Section 4999 of the Code, then Executive’s severance
benefits will be either:

       

      
        	
                 
      

              	
                (a)

              	
                delivered
      in full, or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                delivered
      as to such lesser extent which would result in no portion of such
      severance benefits being subject to the excise tax under Section 4999 of
      the Code,

              

      

       

      whichever
of the foregoing amounts, taking into account the applicable federal, state and
local income taxes and the excise tax imposed by Section 4999, results in the
receipt by Executive on an after-tax basis, of the greatest amount of severance
benefits, notwithstanding that all or some portion of such severance benefits
may be taxable under Section 4999 of the Code.  If a reduction in the
severance and other benefits constituting “parachute payments” is necessary so
that no portion of such severance benefits is subject to the excise tax under
Section 4999 of the Code, the reduction shall occur in the following order
unless the Company determines in writing a different order: (1) reduction
of the severance payments under Sections 7(a)(i) or 7(b)(i); (2) cancellation of
accelerated vesting of Awards; and (3) reduction of continued employee
benefits.  In the event that acceleration of vesting of Award
compensation is to be reduced, such acceleration of vesting shall be cancelled
in the reverse order of the date of grant of Executive’s Awards.

       

      Unless
the Company and Executive otherwise agree in writing, any determination required
under this Section 8 will be made in writing by an independent firm immediately
prior to Change of Control (the “Firm”), whose determination will be conclusive
and binding upon Executive and the Company for all purposes.  For
purposes of making the calculations required by this Section 8, the Firm
may make reasonable assumptions and approximations concerning applicable taxes
and may rely on reasonable, good faith interpretations concerning the
application of Sections 280G and 4999 of the Code.  The Company and
Executive will furnish to the Firm such information and documents as the Firm
may reasonably request in order to make a determination under this
Section.  The Company will bear all costs the Firm may reasonably
incur in connection with any calculations contemplated by this Section
8.

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

       

      9.           Definition of
Terms.  The following terms referred to in this Agreement will
have the following meanings:

       

      (a)           Benefit
Plans.  For purposes of this Agreement, “Benefit Plans” means
plans, policies or arrangements that the Company sponsors (or participates in)
and that immediately prior to Executive’s termination of employment provide
Executive and/or Executive’s eligible dependents with medical, dental and vision
benefits.  Benefit Plans do not include any other type of benefit
(including, but not by way of limitation, disability, life insurance or
retirement benefits). A requirement that the Company provide Executive and
Executive’s eligible dependents with coverage under the Benefit Plans will not
be satisfied unless the coverage is no less favorable than that provided to
senior executives of the Company at any applicable time during the period
Executive is entitled to receive severance pursuant to Section 7.  The
Company may, at its option, satisfy any requirement that the Company provide
coverage under any Benefit Plan by (i) reimbursing Executive’s premiums
under Title X of the Consolidated Budget Reconciliation Act of 1985, as
amended (“COBRA”) after Executive has properly elected continuation coverage
under COBRA (in which case Executive will be solely responsible for electing
such coverage for Executive’s eligible dependents), or (ii) providing
coverage under a separate plan or plans providing coverage that is sufficient to
provide Executive and Executive’s eligible dependents with equivalent coverage
that is reasonably available to Executive and/or Executive’s eligible
dependents.

       

      (b)           Cause.  “Cause”
is defined as a determination by the Company of any of the following: (i) any
act of personal dishonesty involving Executive in connection with Executive’s
responsibilities as an employee of the Company; (ii) Executive’s conviction of,
or plea of guilty or nolo contendere to, a felony;
(iii) a willful act by Executive which constitutes gross misconduct and which is
injurious to the Company; (iv) continued violations by Executive of Executive’s
obligations as an employee of the Company which are demonstrably willful and
deliberate on Executive’s part after there has been delivered to Executive a
written demand for performance from the Company which describes the basis for
the Company's belief that Executive has not substantially performed Executive’s
duties (unless such violation by its nature cannot be cured, in which case
notice and an opportunity to cure shall not be required); or (v) Executive’s
arrest for any crime involving fraud, embezzlement or any other act of moral
turpitude.

       

      (c)          Change of
Control.  “Change of Control” means the occurrence of any of
the following events:

       

      (i)              the
acquisition by any one person, or more than one person acting as a group (for
these purposes, persons will be considered to be acting as a group if they are
owners of a corporation that enters into a merger, consolidation, purchase or
acquisition of stock, or similar business transaction with the Company),
(“Person”) that or is or becomes the owner, directly or indirectly, of
securities of the Company representing more than fifty percent (50%) of the
total voting power represented by the Company’s then outstanding securities (the
“Voting Securities”); provided, however, that for purposes of this subsection
(i), the acquisition of additional securities by any one Person, who is
considered to own more than fifty percent (50%) of the total voting power of the
securities of the Company shall not be considered a Change of Control;
or

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      (ii)             a
change in the ownership of a substantial portion of the Company’s assets which
occurs on the date that any Person acquires (or has acquired during the twelve
(12) month period ending on the date of the most recent acquisition by such
person or persons) assets from the Company that have a total gross fair market
value equal to or more than fifty percent (50%) of the total fair market value
of all of the assets of the Company immediately prior to such acquisition or
acquisitions; provided, however, that for purposes of this Section 9(c)(ii) the
following shall not constitute a change in the ownership of a substantial
portion of the Company’s assets: (1) a transfer to an entity that is controlled
by the Company’s shareholders immediately after the transfer; or (2) a transfer
of assets by the Company to: (A) a shareholder of the Company (immediately
before the asset transfer) in exchange for or with respect to the Company’s
securities; (B) an entity, fifty percent (50%) or more of the total value or
voting power of which is owned, directly or indirectly, by the Company; (C) a
Person, that owns, directly or indirectly, fifty percent (50%) or more of the
total value or voting power of all the outstanding stock of the Company; or (D)
an entity, at least fifty percent (50%) of the total value or voting power of
which is owned, directly or indirectly, by a Person described in subsection
(C).  For purposes of this Section 9(c)(ii), gross fair market value
means the value of the assets of the Company, or the value of the assets being
disposed of, determined without regard to any liabilities associated with such
assets.

       

      Notwithstanding the foregoing, a transaction shall not
constitute a Change of Control if: (i) its sole purpose is to change the
state of the Company’s incorporation; (ii) its sole purpose is to create a
holding company that will be owned in substantially the same proportions by the
persons who held the Company’s securities immediately before such transaction;
or (iii) it does not constitute a change in control event under Treasury
Regulation 1.409A-3(i)(5)(v) or (vii).

       

      (d)           Constructive
Termination.  “Constructive Termination” means Executive’s
resignation within thirty (30) days following the expiration of any Company cure
period (discussed below) following the occurrence of one or more of the
following events without Executive’s consent: (i) the assignment to Executive of
any duties or the reduction of Executive’s duties, either of which results in a
material diminution in Executive’s authority, duties or responsibilities with
the Company in effect immediately prior to such assignment, or the removal of
Executive from such position and responsibilities, unless Executive is provided
with comparable authority, duties or responsibilities; provided, however, it
being understood that a new position within a larger combined company does not
constitute “Constructive Termination” if it is in the same area of operations
and involves similar scope of management responsibility notwithstanding that
Executive may not retain as senior a position overall within the larger combined
company as Executive’s prior position; (ii) a material reduction of Executive’s
Base Salary; (iii) a material change in the geographic location at which
Executive must perform services (for purposes of this Agreement, the relocation
of Executive to a facility or a location less than fifty (50) miles from
Executive’s then-present location shall not be considered a material change in
geographic location); or (iv) any material breach by the Company of any material
provision of this Agreement.  Executive will not resign for
Constructive Termination without first providing the Company with written notice
of the acts or omissions constituting the grounds for “Constructive Termination”
within ninety (90) days of the initial existence of the grounds for
“Constructive Termination” and a reasonable cure period of not less than thirty
(30) days following the date of such notice.

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

       

      (e)           Disability.  “Disability”
will mean that Executive has been unable to perform Executive’s Company duties
as the result of Executive’s incapacity due to physical or mental illness, and
such inability, at least twenty-six (26) weeks after its commencement, is
determined to be total and permanent by a physician selected by the Company or
its insurers and acceptable to Executive or Executive’s legal representative
(such Agreement as to acceptability not to be unreasonably
withheld).  Termination resulting from Disability may only be effected
after at least thirty (30) days’ written notice by the Company of its intention
to terminate Executive’s employment.  In the event that Executive
resumes the performance of substantially all of Executive’s duties hereunder
before the termination of Executive’s employment becomes effective, the notice
of intent to terminate will automatically be deemed to have been
revoked.

       

      (f)           Section 409A
Limit.  For purposes of this Agreement, “Section 409A Limit”
means the lesser of two (2) times: (i) Executive’s annualized compensation based
upon the annual rate of pay paid to Executive during the Company’s taxable year
preceding the Company’s taxable year of Executive’s termination of employment as
determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal
Revenue Service guidance issued with respect thereto; or (ii) the maximum
amount that may be taken into account under a qualified plan pursuant to
Section 401(a)(17) of the Code for the year in which Executive’s employment
is terminated.

       

      10.         Successors.

       

      (a)           The Company’s
Successors.  Any successor to the Company (whether direct or
indirect and whether by purchase, merger, consolidation, liquidation or
otherwise) to all or substantially all of the Company’s business and/or assets
will assume the obligations under this Agreement and agree expressly to perform
the obligations under this Agreement in the same manner and to the same extent
as the Company would be required to perform such obligations in the absence of a
succession.  For all purposes under this Agreement, the term “Company”
will include any successor to the Company’s business and/or assets which
executes and delivers the assumption agreement described in this Section 10(a)
or which becomes bound by the terms of this Agreement by operation of
law.  The failure of the Company to obtain the assumption of this
Agreement by any successor will constitute a material breach of a material part
of this Agreement.

       

      (b)           Executive’s
Successors.  The terms of this Agreement and all rights of
Executive hereunder will inure to the benefit of, and be enforceable by,
Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

       

      11.         Notice.

       

      (a)           General.  Notices
and all other communications contemplated by this Agreement will be in writing
and will be deemed to have been duly given when personally delivered or when
mailed by U.S. registered or certified mail, return receipt requested and
postage prepaid.  In the case of Executive, mailed notices will be
addressed to Executive at the home address which Executive most recently
communicated to the Company in writing.  In the case of the Company,
mailed notices will be addressed to its corporate headquarters, and all notices
will be directed to the attention of the CEO.

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

       

      (b)          Notice of
Termination.  Any termination by the Company for Cause or by
Executive for Constructive Termination or as a result of a voluntary resignation
by Executive will be communicated by a notice of termination to the other party
hereto given in accordance with Section 11(a) of this Agreement.  Such
notice will indicate the specific termination provision in this Agreement relied
upon, will set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination under the provision so indicated, and will
specify the termination date (which will be not more than thirty (30) days after
the giving of such notice).  The failure by Executive to include in
the notice any fact or circumstance which contributes to a showing of
Constructive Termination will not waive any right of Executive hereunder or
preclude Executive from asserting such fact or circumstance in enforcing
Executive’s rights hereunder.

       

      12.         Arbitration.

       

      (a)           Arbitration.  In
consideration of Executive’s employment with the Company, its promise to
arbitrate all employment-related disputes, and
Executive’s receipt of the compensation, pay raises and other benefits paid to
Executive by the Company, at present and in the future, Executive agrees that
any and all controversies, claims, or disputes with anyone (including the
Company and any employee, officer, director, shareholder or benefit plan of the
Company in their capacity as such or otherwise) arising out of, relating to, or
resulting from Executive’s employment with the Company or termination thereof,
including any breach of this Agreement, will be subject to binding arbitration
under the Arbitration Rules set forth in California Code of Civil Procedure
Section 1280 through 1294.2, including Section 1281.8 (the “Act”), and
pursuant to California law.  The Federal Arbitration Act shall also
continue to apply with full force and effect, notwithstanding the application of
procedural rules set forth under the Act.

       

      (b)           Dispute
Resolution.  Disputes that Executive agrees to
arbitrate, and thereby agrees to waive any right to a trial by jury, include any
statutory claims under local, state, or federal law, including, but not
limited to, claims under Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act of 1990, the Age Discrimination in Employment
Act of 1967, the Older Workers Benefit Protection Act, the Sarbanes Oxley Act,
the Worker Adjustment and Retraining Notification Act, the California Fair
Employment and Housing Act, the Family and Medical Leave Act, the California
Family Rights Act, the California Labor Code, Claims of harassment,
discrimination, and wrongful termination, and any statutory or common law
claims.  Executive further understands that this Agreement to
arbitrate also applies to any disputes that the Company may have with
Executive.

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

       

      (c)           Procedure.  Executive
agrees that any arbitration will be administered by the Judicial Arbitration
& Mediation Services, Inc. (“JAMS”), pursuant to its Employment Arbitration
Rules & Procedures (the “JAMS Rules”).  The arbitrator shall have
the power to decide any motions brought by any party to the arbitration,
including motions for summary judgment and/or adjudication, motions to dismiss
and demurrers, and motions for class certification, prior to any arbitration
hearing.  The arbitrator shall have the power to award any remedies
available under applicable law, and the arbitrator shall award attorneys’ fees
and costs to the prevailing party, except as prohibited by law.  The
Company will pay for any administrative or hearing fees charged by the
administrator or JAMS, except that Executive shall pay any filing fees
associated with any arbitration that Executive initiates, but only so much of
the filing fee as Executive would have instead paid had Executive filed a
complaint in a court of law.  Executive agrees that the arbitrator
shall administer and conduct any arbitration in accordance with California law,
including the California Code of Civil Procedure, and that the arbitrator shall
apply substantive and procedural California law to any dispute or claim, without
reference to the rules of conflict of law.  To the extent that the
JAMS Rules conflict with California law, California law shall take
precedence.  The decision of the arbitrator shall be in
writing.  Any arbitration under this Agreement shall be conducted in
Santa Clara County, California.

       

      (d)          Remedy.  Except
as provided by the Act, arbitration shall be the sole, exclusive, and final
remedy for any dispute between Executive and the Company.  Accordingly, except as provided by
the Act and this Agreement, neither Executive nor the Company will be permitted
to pursue court action regarding claims that are subject to
arbitration.  Notwithstanding, the arbitrator will not have the
authority to disregard or refuse to enforce any lawful Company policy, and the
arbitrator will not order or require the Company to adopt a policy not otherwise
required by law which the Company has not adopted.

       

      (e)           Administrative
Relief.  Executive is not prohibited from pursuing an
administrative claim with a local, state, or federal administrative body or
government agency that is authorized to enforce or administer laws related to
employment, including, but not limited to, the Department of Fair Employment and
Housing, the Equal Employment Opportunity Commission, the National Labor
Relations Board, or the Workers’ Compensation Board.  However,
Executive may not pursue court action regarding any such claim, except as
permitted by law.

       

      (f)           Voluntary Nature of
Agreement.  Executive acknowledges and agrees that Executive is
executing this Agreement voluntarily and without any duress or undue influence
by the Company or anyone else.  Executive further acknowledges and
agrees that Executive has carefully read this Agreement and that Executive has
asked any questions needed for Executive to understand the terms, consequences
and binding effect of this Agreement and fully understands it, including that
EXECUTIVE
IS WAIVING EXECUTIVE’S RIGHT TO A JURY TRIAL.  Finally,
Executive agrees that Executive has been provided an opportunity to seek the
advice of an attorney of Executive’s choice before signing this
Agreement.

       

      13.         Miscellaneous
Provisions.

       

      (a)           No Duty to
Mitigate.  Executive will not be required to mitigate the
amount of any payment contemplated by this Agreement, nor will any such payment
be reduced by any earnings that Executive may receive from any other
source.

       

      (b)           Amendment.  No
provision of this Agreement will be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing and signed by
Executive and by an authorized officer of the Company (other than Executive)
that is expressly designated as an amendment to this Agreement.

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

      (c)           Waiver.  No
waiver by either party of any breach of, or of compliance with, any condition or
provision of this Agreement by the other party will be considered a waiver of
any other condition or provision or of the same condition or provision at
another time.

       

      (d)          Headings.  All
captions and section headings used in this Agreement are for convenient
reference only and do not form a part of this Agreement.

       

      (e)           Entire
Agreement.  The Offer Letter and this Agreement constitute the
entire agreement of the parties hereto as to the subject matter herein and
supersedes and replaces all prior or contemporaneous agreements whether written
or oral including, without limitation.  Executive acknowledges and
agrees that this Agreement encompasses all the rights of Executive to any
acceleration of Award vesting or severance pay based on termination of
employment and Executive hereby agrees that he or she has no such rights except
as stated herein, and Executive agrees that any such rights, whether in an
employment agreement, offer letter, stock option agreement, stock option plan or
other agreement, are hereby waived.

       

      (f)           Choice of
Law.  The validity, interpretation, construction and
performance of this Agreement will be governed by the laws of the State of
California (with the exception of its conflict of laws provisions).

       

      (g)          Severability.  The
invalidity or unenforceability of any provision or provisions of this Agreement
will not affect the validity or enforceability of any other provision hereof,
which will remain in full force and effect.

       

      (h)          Withholding.  All
payments made pursuant to this Agreement will be subject to all applicable
withholdings, including all applicable income and employment taxes, as
determined in the Company’s reasonable judgment.

       

      (i)           Counterparts.  This
Agreement may be executed in counterparts, each of which will be deemed an
original, but all of which together will constitute one and the same
instrument.

       

      IN
WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of
the Company by its duly authorized officer, as of the day and year set forth
below.

      

      
        
          
            
              
                
                  
                    	
                            COMPANY

                          	
                            GEEKNET,
      INC.

                          
	 	 
	 
      	
                            By:

                          	
                            /s/ Scott L. Kauffman

                          
	 	 	 
	 
      	
                            Title:

                          	
                            President
      & CEO

                          
	 
      	 
      	 
      
	
                            EXECUTIVE

                          	
                            By:

                          	
                            /s/ Matthew Sweeney

                          
	 	 	 
	 
      	
                            Title:

                          	
                            Chief Revenue
  Officer

                          

                  

                

              

            

          

        

      

       

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

    

    Amendment
to the March 22, 2010 Offer Letter (“Amendment”)

    

    This
Amendment by and between Matthew J. Sweeney and Geeknet, Inc. hereby amends that
certain Offer Letter dated March 22, 2010 (“Offer Letter”).

    

    
      	
              1.

            	
              The
      second, third and fourth sentences of the paragraph titled “Stock Option
      Plan” are hereby deleted and replaced as
  follows:

            

    

    

    
      	
               
      

            	
              “This
      Option has been approved by the Compensation Committee of the Company’s
      Board of Directors.  This Option will be granted with a vesting
      date commencing on the date your employment begins.  The Option
      price shall be the NASDAQ Global Market Official Closing Price on the date
      your employment begins.

            

    

    

    
      	
              2.

            	
              All
      other provisions of the Offer Letter remain in full force and
      effect.  This Amendment, the Offer Letter and the Employment
      Agreement dated March 22, 2010 constitute the entire understanding of the
      parties on the subject matter
hereof.

            

    

    

    
      
        
          
            
              	
                      Geeknet,
      Inc.

                    	 	
                      /S/ Matthew J. Sweeney

                    
	
                       

                    	 	
                      Matthew
      J. Sweeney

                    
	 
      	 	 
      
	
                      /S/ Scott L. Kauffman

                    	 	
                      April 5, 2010

                    
	
                      Name

                    	 	
                      Date

                    
	 
      	 	 
      
	
                      President & CEO

                    	 	 
      
	
                      Title

                    	 	 
      
	 
      	 	 
      
	
                      4/5/10

                    	 	 
      
	
                      Date

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