Document:

REGISTRATION
RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT (this
‘‘Agreement’’), is entered
as of December  1,  2006, by and between HandHeld
Entertainment, Inc., a Delaware corporation (the
‘‘Company’’), and Aperio
Technologies, Inc. (the
‘‘Seller’’).

WHEREAS,
pursuant to the terms of a Purchase Agreement, dated as of
December  1,  2006 (the ‘‘Purchase
Agreement’’), entered into by and among the
Company, the Seller and Mary Dunne, an individual, the Company has
agreed, as partial consideration for the acquisition by the Company
from the Seller of the Interest (as defined in the Purchase Agreement)
to issue to the Seller a five (5)-year Convertible Promissory Note in
the principal amount of Six Hundred Thousand Dollars ($600,000) (the
‘‘Note’’);

WHEREAS, the Note
provides that prior to the Maturity Date (as defined in the Note) the
Seller my elect to convert the principal on the Note together with
accrued and unpaid interest thereon into that number of shares of the
Company’s Common Stock, no par value per share
(‘‘Common Stock’’) as determined
pursuant to Section 1.2 of the Note (as converted, the
‘‘Conversion
Shares’’);

WHEREAS, to induce the Seller to
execute and deliver the Purchase Agreement, the Company has agreed to
provide certain registration rights under the Securities Act of 1933,
as amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the ‘‘1933
Act’’), and applicable state securities
laws:

NOW, THEREFORE, in consideration of the premises and
the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Seller hereby agree as
follows:

1.    DEFINITIONS.

As used in this
Agreement, the following terms shall have the following
meanings:

(a)    ‘‘Register,’’
‘‘registered,’’ and
‘‘registration’’ refer to a
registration effected by preparing and filing one or more Registration
Statements in compliance with the 1933 Act and pursuant to Rule 415
under the 1933 Act or any successor rule providing for offering
securities on a continuous basis (‘‘Rule
415’’), and the declaration or ordering of effectiveness
of such Registration Statement(s) by the United States Securities and
Exchange Commission (the
‘‘SEC’’).

(b)    ‘‘Registrable
Securities’’ means (i) the Conversion Shares
issued or issuable upon conversion of the Note; and (ii) any shares of
capital stock issued or issuable with respect to the Conversion Shares
as a result of any stock split, stock dividend, recapitalization,
exchange or similar
event.

(c)    ‘‘Registration
Expenses’’ shall mean all expenses incurred by
the Company in compliance its obligations hereunder, whether or not any
registration statement is filed or becomes effective and whether or not
any Registrable Securities are sold pursuant to such registration
statement, including, without limitation, all registration and filing
fees, printing expenses, fees and disbursements of counsel for the
Company, the expense of any special audits incident to or required by
such registration (but excluding the compensation of regular employees
of the Company, which shall be paid in any event by the
Company);

(d)    ‘‘Registration
Statement’’ means a registration statement of the
Company filed under the 1933
Act.

(e)    ‘‘Selling
Expenses’’ shall mean all underwriting discounts
and selling commissions applicable to the sale of Registrable
Securities and all fees and disbursements of counsel for the Seller, if
any, relating to the sale or disposition of the Registrable Securities
pursuant to any registration statement filed pursuant to this
Agreement.

Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings set forth in the
Purchase Agreement.

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2.    REGISTRATION.

2.1    Mandatory
Registration.    On or prior to ninety (90) days after the date
on which Seller requests (a
‘‘Demand’’) that the Company
Register the Registrable Securities, or the earliest date thereafter
that will not require a new stub-period financial statement audit (such
demand by Seller hereafter defined as the
‘‘Notice’’ and such date
hereafter defined as the ‘‘Demand
Date’’), the Company shall prepare and file with
the SEC a Registration Statement covering for resale all of the
Registrable Securities on Form SB-2, or such other Form as may be
available to the Company for such Registration, and shall indicate on
the cover of such form that such securities are being offered on a
delayed or continuous basis pursuant to Rule 415 under the 1933 Act. In
the event that such Registration does require such audit, the Company
agrees to use its best efforts to complete such audit. Company shall
also use its best efforts to have the Registration Statement become
effective within one hundred and twenty (120) days after the Demand
Date. Seller shall be entitled to only one (1) Demand pursuant to this
Agreement.

2.2    Underwriting.    If the
registration involves an underwriting, the right of the Seller to
registration pursuant to this Section shall be conditioned upon the
Seller’s participation in such underwriting. The Seller shall
(together with the Company and any other stockholders distributing
their securities through such underwriting) enter into an underwriting
agreement in customary form with the representative of the underwriter
or underwriters selected by the Company.

2.3    Expiration of Demand Right.    In the event
Seller is offered the right to participate in a Registration Statement
pursuant to Section 3 hereinbelow and such Registration Statement is
declared effective by the SEC, Seller shall no longer have the right to
Demand registration of shares pursuant to this
Agreement.

3.    COMPANY
REGISTRATION

3.1    Inclusion in
Registration.    If the Company shall determine to register any
of its equity securities either for its own account or for the account
of any other security holder, other than a registration relating solely
to employee benefit plans, or a registration relating solely to an SEC
Rule 145 transaction, or a registration on any registration form which
does not permit secondary sales, the Company
will:

(a)    Promptly, and in no event
later than 15 days prior to the anticipated filing date of the
registration statement effecting such registration, give to the Seller
a written notice thereof (which shall include a list of the
jurisdictions in which the Company intends to qualify such securities
under the applicable blue sky or other state securities laws);
and

(b)    include in such registration
(and any related qualification under blue sky laws or other
compliance), and in any underwriting involved therein, all the
Registrable Securities specified in a written request made by the
Seller within fifteen (15) days after receipt of the written notice
from the Company described in clause (i) above, except as otherwise
provided in Section 8 below. Such written request may specify all or a
part of the Seller’s Registrable
Securities.

3.2    Underwriting.    If the
registration of which the Company gives notice is for a registered
public offering involving an underwriting, the Company shall so advise
the Seller in the written notice given pursuant to Section (a). In such
event, the right of the Seller to registration pursuant to this Section
3 shall be conditioned upon the Seller’s participation in such
underwriting. The Seller shall (together with the Company and any other
stockholders distributing their securities through such underwriting)
enter into an underwriting agreement in customary form with the
representative of the underwriter or underwriters selected by the
Company.

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4.    EXPENSES OF
REGISTRATION

All Registration Expenses incurred in
connection with any registration or compliance pursuant to this
Agreement shall be borne by the Company, and any and all Selling
Expenses shall be borne by the
Seller.

5.    REGISTRATION
PROCEDURES

In the Notice provided by the Seller to the
Company, the Seller shall inform the Company of the number of shares
the Seller desires to have registered, acknowledging that the Seller
does, at the time of such request, intend to sell all shares that will
be included in the registration statement. After receipt of such
information from the Seller, the Company shall, at its
expense:

(a)    prepare and file with the
Commission, within the time frame specified in paragraph 2.1, above,
the Registration Statement (such date of filing, the
‘‘Filing Date’’) covering
the resale of the Registrable Securities in accordance with the method
or methods of distribution specified by the Seller, and cause the
Registration Statement to become effective and remain effective as
provided herein;

(b)    prepare and file
with the Commission such amendments, including post-effective
amendments, and supplements to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective as
to the Registrable Securities for at least six (6) months following the
date it first becomes effective (the
‘‘Effectiveness Period’’);
provided, however, that the Effectiveness Period
shall be extended for a period of time equal to the period during which
the Seller refrains from selling any securities included in such
registration in accordance with the provisions set forth in Section 7
hereof;

(c)    cause the prospectus
forming a part of the Registration Statement to be amended or
supplemented by any required prospectus supplement, and as so
supplemented or amended to be filed pursuant to Rule 424 (or any
successor rule) under the Securities
Act;

(d)    respond promptly to any
comments received from the Commission with respect to the Registration
Statement or any amendment thereto and promptly provide the Seller and
the Sellers’ counsel true and correct copies of all
correspondence from and to the Commission relating to the Registration
Statement;

(e)    promptly to take such
action as may be reasonably necessary so that (i) each of the
Registration Statement and any amendment thereto and the prospectus
forming part thereof and any amendment or supplement thereto (and each
report or other document incorporated therein by reference in each
case), when it becomes effective, complies in all material respects
with the Securities Act and the Exchange Act and the respective rules
and regulations thereunder,  (ii) each of the Registration
Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances in which
they were made, not misleading and (iii) each of the prospectus forming
part of the Registration Statement, and any amendment or supplement
thereto, does not at any time during the Effectiveness Period include
an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements
therein, in the light of the circumstances in which they were made, not
misleading.

(f)    notify the Seller as
promptly as possible (and, in the case of (i)(A) below, not less than
five (5) Business Days prior to such filing) and (if requested by the
Seller) confirm such notice in writing no later than one (1) Business
Day following the day (i)(A) when a prospectus or any prospectus
supplement or post-effective amendment to the Registration Statement is
proposed to be filed; (B) when the Commission notifies the Company
whether there will be a ‘‘review’’ of such
Registration Statement and whenever the Commission comments in writing
on such Registration Statement and (C) with respect to the Registration
Statement or any post-effective amendment, when the same has become
effective; (ii) of any request by the Commission or any other Federal
or state governmental authority for amendments or supplements to the
Registration Statement or 

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prospectus or for additional information;
(iii) of the issuance by the Commission of any stop order suspending
the effectiveness of the Registration Statement covering any or all of
the Registrable Securities or the initiation of any Proceedings for
that purpose; (iv) if at any time any of the representations and
warranties of the Company contained in any agreement contemplated
hereby cease to be true and correct in all material respects; (v) of
the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any
of the Registrable Securities for sale in any jurisdiction, or the
initiation or threatening of any Proceeding for such purpose; and (vi)
of the occurrence of any event that makes any statement made in the
Registration Statement or prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material
respect or that requires any revisions to the Registration Statement,
prospectus or other documents so that, in the case of the Registration
Statement or the prospectus, as the case may be, it will not contain
any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made,
not misleading;

(g)    cooperate with the
Seller to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold pursuant to
a Registration Statement, which certificates shall be free of all
restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as the Seller may
request at least two  (2) Business Days prior to any sale of
Registrable Securities; and

(h)    furnish
such number of prospectuses and other documents incident thereto as the
Seller from time to time may reasonably
request.

6.    INDEMNIFICATION

6.1    The
Company will indemnify the Seller to the fullest extent permitted by
applicable law with respect to each registration which has been
effected pursuant to this Agreement, and each underwriter, if any, and
each person who controls any underwriter, against all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of
or based on any untrue statement (or alleged untrue statement) of a
material fact contained in any prospectus, offering circular or other
document (including any related registration statement, notification or
the like) incident to such registration, qualification or compliance,
or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the
statements therein not misleading, or any violation by the Company of
the Securities Act, the Exchange Act or the respective rules or
regulations thereunder applicable to the Company and relating to action
or inaction required of the Company in connection with such
registration, qualification or compliance, and will reimburse the
Seller for any legal or other expenses reasonably incurred in
connection with investigating or defending any such claim, loss,
damage, liability or action; provided that the Company will
not be liable in any such case to the extent that any such claim, loss,
damage, liability or expense arises out of or is based on any untrue
statement or omission based upon written information furnished to the
Company by the Seller or underwriter. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on
behalf of an Indemnified Party (as defined in Section 5.3 hereof) and
shall survive the transfer of the Registrable Securities by the
Seller.

6.2    The Seller will, if Registrable Securities
held by him are included in the securities as to which such
registration, qualification or compliance is being effected, indemnify
the Company, each of its directors and officers and each underwriter,
if any, of the Company’s securities covered by such registration
statement, each person who controls the Company or such underwriter,
each other stockholder of the Company participating in such
registration, and each of their respective officers, directors, and
partners, and each person controlling such other stockholder, in each
case, against all claims, losses, damages and liabilities (or actions
in respect thereof) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in such
registration statement, prospectus, offering circular or other document
made by the Seller, or any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to
make the statements by the Seller therein not misleading, and will
reimburse the Company and such other 

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stockholders, directors, officers, members,
partners, persons, underwriters or control persons for any legal or
other expenses reasonably incurred in connection with investigating or
defending any such claim, loss, damage, liability or action, in each
case to the extent, but only to the extent, that such untrue statement
(or alleged untrue statement) or omission (or alleged omission) is made
in such registration statement, prospectus, offering circular or other
document in reliance upon and in conformity with written information
furnished to the Company by the Seller; provided, that the
liability of such Seller pursuant to Section 5.2 and Section 5.4 hereof
shall in no event exceed the net proceeds received by such Seller from
the sale of the Registrable Securities sold by the Seller pursuant to
the Registration Statement.

6.3    Each party entitled to
indemnification under this Section 5 (the
‘‘Indemnified Party’’) shall
give notice to the party required to provide indemnification (the
‘‘Indemnifying Party’’)
promptly after such Indemnified Party has actual knowledge of any claim
as to which indemnity may be sought, and shall permit the Indemnifying
Party to assume the defense of any such claim or any litigation
resulting therefrom; provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any
litigation resulting therefrom, shall be approved by the Indemnified
Party (whose approval shall not unreasonably be withheld) and the
Indemnified Party may participate in such defense at such
party’s expense (unless the Indemnified Party shall have
reasonably concluded that there may be a conflict of interest between
the Indemnifying Party and the Indemnified Party in such action, in
which case the fees and expenses of counsel shall be at the expense of
the Indemnifying Party), and provided further that the failure
of any Indemnified Party to give notice as provided herein shall not
relieve the Indemnifying Party of its obligations under this Agreement
unless the Indemnifying Party is materially prejudiced thereby. No
Indemnifying Party, in the defense of any such claim or litigation
shall, except with the consent of each Indemnified Party, consent to
entry of any judgment or enter into any settlement which does not
include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in
respect to such claim or litigation. Each Indemnified Party shall
furnish such information regarding itself or the claim in question as
an Indemnifying Party may reasonably request in writing and as shall be
reasonably required in connection with the defense of such claim and
litigation resulting therefrom.

6.4    If the indemnification
provided for in this Section 5 is held by a court of competent
jurisdiction to be unavailable to an Indemnified Party with respect to
any loss, liability, claim, damage or expense referred to herein, then
the Indemnifying Party, in lieu of indemnifying such Indemnified Party
hereunder, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such loss, liability, claim, damage or
expense in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party on the one hand and of the Indemnified
Party on the other in connection with the statements or omissions which
resulted in such loss, liability, claim, damage or expense, as well as
any other relevant equitable considerations. The relative fault of the
Indemnifying Party and of the Indemnified Party shall be determined by
reference to, among other things, whether the untrue (or alleged
untrue) statement of a material fact or the omission (or alleged
omission) to state a material fact relates to information supplied by
the Indemnifying Party or by the Indemnified Party and the
parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or
omission.

6.5    Notwithstanding the foregoing, to the extent
that the provisions on indemnification and contribution contained in
the underwriting agreement entered into in connection with any
underwritten public offering contemplated by this Agreement are in
conflict with the foregoing provisions, the provisions in such
underwriting agreement shall be controlling.

6.6    The
foregoing indemnity agreement of the Company and the Seller is subject
to the condition that, insofar as they relate to any loss, claim,
liability or damage made in a preliminary prospectus but eliminated or
remedied in the amended prospectus on file with the SEC at the time the
registration statement in question becomes effective or the amended
prospectus filed with the SEC pursuant to SEC Rule 424(b) (the
‘‘Final Prospectus’’), such
indemnity agreement shall not inure to the benefit of any underwriter
if a copy of the Final Prospectus was furnished to the underwriter and
was not furnished to the person asserting the loss, liability, claim or
damage at or prior to the time such action is required by the
Securities Act.

5

7.    INFORMATION BY THE
SELLER

The Seller shall furnish to the Company such
information regarding the Seller and the distribution proposed by the
Seller as the Company may reasonably request in writing and as shall be
reasonably required in connection with any registration, qualification
or compliance referred to in this
Agreement.

8.    ‘‘MARKET
STAND-OFF’’ AGREEMENT

The Seller
agrees, if requested by the Company and an underwriter of common stock
(or other securities) of the Company, not to sell or otherwise transfer
or dispose of any common stock (or other securities) of the Company
held by the Seller during the 90-day period following the effective
date of a registration statement of the Company filed under the
Securities Act which relates solely to securities offered by or on
behalf of the Company. If requested by the underwriters, the Seller
shall execute a separate agreement to the foregoing effect. The Company
may impose stop-transfer instructions with respect to the shares (or
securities) subject to the foregoing restriction until the end of said
period. The provisions of this Section 7 shall be binding upon any
transferee who acquires Registrable Securities, whether or not such
transferee is entitled to the registration rights provided
hereunder.

9.    NO INCONSISTENT
AGREEMENTS.

Neither the Company nor any of its
subsidiaries has, as of the date hereof entered into and currently in
effect, nor shall the Company or any of its subsidiaries, on or after
the date of this Agreement, enter into any agreement with respect to
its securities that is inconsistent with the rights granted to the
Seller in this Agreement or otherwise conflicts with the provisions
hereof. Without limiting the generality of the foregoing, at no time
during the Effectiveness Period shall the Company, grant to any person
or entity the right to request the Company to register any securities
of the Company under the Securities Act unless the rights so granted
are subject in all respects to the prior rights in full of the Seller
set forth herein, and are not otherwise in conflict with the provisions
of this
Agreement.

10.    MISCELLANEOUS

10.1    Governing
Law.    This Agreement shall be governed by and construed in
accordance with the laws of the State of California applicable to
contracts made and to be performed entirely within such State without
regard to principles of conflicts of
law.

10.2    Paragraph and Section
Headings.    The descriptive headings of the several sections of
this Agreement are inserted for convenience only and shall not control
or affect the meaning or construction of any of the provisions
hereof.

10.3    Notices.    All notices, demands
or other communications to be given or delivered under or by reason of
the provisions of this Agreement shall be in writing and shall be
deemed to have been given (a) when delivered personally to the
recipient, (b) when sent to the recipient by telecopy (receipt
electronically confirmed by sender’s telecopy machine) if during
normal business hours of the recipient, otherwise on the next Business
Day, (c) one Business Day after the date when sent to the recipient by
reputable express courier service (charges prepaid), or (d) seven
Business Days after the date when mailed to the recipient by certified
or registered mail, return receipt requested and postage prepaid. Such
notices, demands and other communications shall be sent to the Seller
and to the Company at the addresses indicated
below:

6

			
	If to the
Seller:		Aperio Technologies, Inc.
ATTN: Mary
Dunne
2433 SW Independence Road
Port St. Lucie, FL
34953
			

			
			Fax:
			

			
	With a copy to:
(which
shall not constitute notice)		Greenberg Traurig
ATTN:
Stephen A. Mendelsohn, Esq.
5100 Town Center Circle, Suite
400,
Boca Raton, FL 33486
			

			
	If to the
Company:		HandHeld Entertainment, Inc.
ATTN: Jeffrey
Oscodar
539 Bryant Street, Suite 403
San Francisco, CA
94107
Fax: 415-495-7708
			

			
	With a copy to:
(which
shall not constitute notice)		Niesar Curls Bartling &
Whyte, LLP
90 New Montgomery Street, 9th Floor
San
Francisco, CA 94105
Attn: Gerald V. Niesar, Esq.
Fax: (415)
882-5400
			

or to such other address as
either party hereto may, from time to time, designate in writing
delivered pursuant to the terms of this
Section.

10.4    Amendments.    The terms,
provisions and conditions of this Agreement may not be changed,
modified or amended in any manner except by an instrument in writing
duly executed by both of the parties
hereto.

10.5    Assignment.    Neither this
Agreement nor any of the rights, duties, or obligations of any party
hereunder may be assigned or delegated (by operation of law or
otherwise) by either party hereto except with the prior written consent
of the other party hereto; provided that all of the terms and
provisions of this Agreement shall inure to the benefit of and shall be
enforceable by the respective legal successors and permitted assigns of
the parties hereto and to any holder of Registrable
Securities.

10.6    Counterparts.    For the
convenience of the parties, any number of counterparts of this
Agreement may be executed by any one or more parties hereto, and each
such executed counterpart shall be, and shall be deemed to be, an
original, but all of which shall constitute, and shall be deemed to
constitute, in the aggregate but one and the same
instrument.

[SIGNATURE PAGE
FOLLOWS]

7

IN WITNESS WHEREOF, each of the parties
hereto has caused this Registration Rights Agreement to be executed on
its behalf by its officers thereunto duly authorized, all as of the day
and year first above
written.

				
	COMPANY			HANDHELD
ENTERTAINMENT, INC.
	 			By:   /s/
Jeff
Oscodar                                        
	 			Name:
Jeffrey
Oscodar
Title:   President
	SELLER			APERIO
TECHNOLOGIES,
INC.
	 			By:   /s/
Mary
Dunne                                        
	 			Name:
Mary Dunne
Title:
	

8Ex-10.1 Amendment No. 2 to Trademark License Agree

 

Exhibit 10.1

AMENDMENT NO. 2 (RENEWAL)

TO TRADEMARK LICENSE AGREEMENT

     This Amendment No. 2 dated November 1, 2006 amends that certain Trademark License Agreement
dated August 9, 2000 (the “Agreement”) and as amended on October 18, 2004 by and between LEVI
STRAUSS & CO., a Delaware corporation, (“LS&CO.”) and GENESCO INC. (“Licensee”), a Tennessee
corporation located at 1415 Murfreesboro Road, Nashville, TN 37217.

     Whereas, LS&CO. and Licensee wish to amend the Agreement as set forth below:

	1.	 	Section 1, “Grant of License” is hereby amended by replacing Exhibit A (Trademarks) in its
entirety with the new Exhibit A attached hereto and by replacing Exhibit B (Products) in its
entirety with the new Exhibit B attached hereto.
	 
	2.	 	Section 2.1, “Initial Term” shall be amended to reflect that the Agreement is renewed
for one additional three (3) year period commencing on January 1, 2007 and ending on December
31, 2009.
	 
	3.	 	Section 2.2, “Renewal Term” shall be deleted in its entirety and substituted with the
following:
	 
	 	 	“This Agreement may be renewed upon written request of Licensee delivered to LS&CO. not
earlier than February 1, 2009 and not later than March 1, 2009, for one (1) additional three
(3) year term, commencing on January 1, 2010 and ending on December 31, 2012 (if renewed
then, the “Renewal Term”; the Initial Term and the Renewal Term may be referred to
interchangeably as “Term”). The Agreement shall be eligible for renewal only if: (i)
Licensee’s Net Sales of Products for the Annual Period beginning January 1, 2008 exceed
$65,000,000 (ii) Licensee’s projected Net Sales for the Renewal Term submitted pursuant to
this Section 2.2 and used to calculate the Guaranteed Minimum Royalties for the Renewal Term
are equal to or greater than the projected Net Sales for the final Annual Period of the
Initial Term (or 2009), and (iii) Licensee is in compliance with all terms and conditions
contained in this Agreement and there is no outstanding Event of Default existing on the
date Licensee delivers its notice of renewal or at any time during the balance of the Term.
Licensee shall include with its renewal notice data demonstrating that the renewal condition
set out in clause (i) is satisfied, a written certification by the president, a vice
president or the chief financial officer to the effect that the condition set out in clause
(iii) is met and Licensee’s projected Net Sales of Products during the contemplated Renewal
Term. Within thirty (30) days after receipt of Licensee’s renewal notice, LS&CO. shall
notify Licensee whether or not the conditions are met and the Agreement is, in fact,
renewed. If the Agreement is not renewed, it shall expire and terminate at the end of the
relevant Term. Licensee’s failure to timely deliver

 

 

	 	 	its notice of renewal shall be treated as a final decision by Licensee that it has elected
not to renew.”
	4.	 	Section 3.1, “Guaranteed Minimum Royalty” shall be deleted in its entirety and
substituted with the following:

     “3.1 Guaranteed Minimum Royalty. Licensee shall pay to LS&CO. a non-recoupable
guaranteed minimum royalty (the “Guaranteed Minimum Royalty”) in respect of each Annual Period.
The guaranteed Minimum Royalty shall be as follows:

	 	 	 	 	 
	Annual Period	 	Guaranteed Minimum Royalty
	2007
	 	$	3,205,000	 
	2008
	 	$	3,444,000	 
	2009
	 	$	3,274,000	 

Licensee shall pay to LS&CO. no later than thirty (30) days after the end of each quarterly
period an amount equal to one-quarter (1/4) of the Guaranteed Minimum Royalty payment for
that Annual Period plus the excess, if any, of Earned Royalties in a quarter over the
Guaranteed Minimum Royalty for that quarter. The parties understand and acknowledge that,
at the end of any Annual Period, Licensee’s royalty obligations shall be no more than the
greater of the Guaranteed Minimum Royalty payment or the cumulative Earned Royalties for
that Annual Period.

	5.	 	Section 3.2, Earned Royalty shall be deleted in its entirety and substituted with the
following:

     “3.2 Earned Royalty.

     (a) Licensee shall pay to LS&CO. an earned royalty rate on First Quality Products
equal to (redacted) of Net Sales. However, during any Annual Period, should total Product
sales exceed $71,000,000, provided that First Quality sales make up at least $68,500,000 of
the $71,000,000 Net Sales amount (together, the “Net Sales Target”), Licensee shall receive
a reduction in the royalty rate owed on First Quality Products equal to one-half a percent,
such that a royalty rate of (redacted) shall apply to all Net Sales of First Quality
Products during that Annual Period (either rate, the “Earned Royalty Rate”).

     (b) Licensee’s projected Earned Royalty Rate for each Annual Period shall be determined
based on the Sales Plan submitted pursuant to Section 4 of this Agreement; Licensee will
then make royalty payments for the upcoming Annual Period based on the Earned Royalty Rate
dictated by projected Net Sales vis-à-vis the Net Sales Target. If, at any time during the
year, Licensee exceeds

 

 

the Net Sales Target and therefore Licensee’s actual Earned Royalty Rate is less than
the projected Earned Royalty Rate, Licensee shall receive a credit towards its next
quarterly payment due equal to the difference between the actual Earned Royalties owed and
the Earned Royalty amounts paid to date. If, at the end of the year, it turns out that
Licensee’s actual Earned Royalty Rate is greater than the projected Earned Royalty Rate
because Licensee has not met the Net Sales Target as anticipated in the Sales Plan, Licensee
shall pay LS&CO., at the time it delivers the annual statement for that Annual Period as
described in Section 9.2, the difference between the actual Earned Royalties owed and the
Earned Royalty amounts paid to date with its next quarterly payment.

     (c) During each Annual Period, Licensee shall pay to LS&CO. an earned royalty rate on
items produced that are merchantable but not suitable for sale at list price because they
contain minor production or material flaws not affecting proper usage of the Trademarks
(“Seconds”) or First Quality Products sold at a discount off of published wholesale price of
no less than twenty-five percent (25%) (“Closeouts”; Seconds and Closeouts together, “Second
Quality Products”), equal to (redacted). Licensee shall pay First Quality Earned Royalty
Rate on Second Quality Products for any Annual Period to the extent that sales of Second
Quality Products (other than Involuntary Discontinuations as defined below) are greater than
(redacted) of total Product sales (in terms of dollars) (the “Second Quality Cap”). For any
such Annual Period, Licensee shall pay LS&CO., at the time it delivers the annual statement
for that Annual Period as described in Section 9.2, an amount equal to the difference
between the First Quality Earned Royalty Rate and the Second Quality Earned Royalty Rate on
all Net Sales of Second Quality Products above the Second Quality Cap.

     (d) In the event that LS&CO. notifies licensee in writing that one or more of the
Trademarks will be removed form Exhibit A in one hundred fifty (150) days or less, Licensee
may sell Products bearing the formerly approved Trademarks as Closeouts only to those
Approved Retailers approved under Section 8.3 for a period of one hundred twenty (120) days
after Licensee receives written notice from LS&CO. of the removal of said Trademarks from
Exhibit A (“Involuntary Discontinuations”). Licensee shall pay to LS&CO. the Second Quality
Royalty Rate on any Involuntary Discontinuations.

          (e) “Net Sales” shall mean the gross invoice price billed to Approved Retailers or
other customers, if any, less actual and customary returns, separately listed applicable
taxes and separately listed merchandising allowances actually applied to Approved Retailers
in an amount up to one percent (1%) of Net Sales per Annual Period. No other deduction or
recoupment shall be allowed of any kind, including, without limitation and by way of
example, cash discounts, early payment discounts, year end rebates, costs incurred in
manufacturing, selling, distributing, shipping and handling costs, advertising (including
cooperative and promotional allowances, fixturing, merchandising guides, displays, or the
like), uncollectible accounts,

 

 

commissions, or any other amounts, nor shall such deductions or recoupment be netted
against the sales price to arrive at the gross invoice price or any reduced gross invoice
price. A Product shall be considered “sold” on the earlier of the date when the Product is
billed or invoiced, shipped, consigned or paid for. The terms of payment or credit
concerns relating to Approved Retailers or otherwise shall not affect Licensee’s royalty
payment obligations.

	6.	 	Section 4.2 Consumer Advertising shall be deleted in its entirety and substituted
with the following:
	 
	 	 	“During each Annual Period, Licensee shall pay to LS&CO., or to such other person or entity as
LS&CO. may designate, an amount equal to (redacted) of the projected aggregate Net Sales for
that Annual Period (the “Marketing Contribution”) based on the Sales Plan described in Section
4.1. Licensee shall pay these amounts to LS&CO. within thirty (30) days after receipt of
invoices from LS&CO., it being understood that LS&CO. anticipates issuing these invoices at the
time of the underlying expenditure for marketing activities. If actual aggregate Net Sales
exceed projected Net Sales for any Annual Period, then Licensee shall pay to LS&CO. an
additional amount equal to (redacted) of the excess, with that amount payable in, and for use
during, the next Annual Period, in addition to the Marketing Contribution otherwise due for
that Annual Period. Marketing Contributions shall be separate from and shall not be subject to
credit for expenditures by Licensee for cooperative advertising, trade advertising, fixture
programs, trade shows, sampling or any other promotional or sales material. LS&CO. shall use
these funds for consumer marketing of the brand and branded products through vehicles and at
the times and in the manner as LS&CO. may determine, Licensee acknowledging that it may not
receive any direct or pro rata benefit from its Marketing Contributions.”
	 
	7.	 	Section 10, Global Sourcing and Operating Guidelines shall be deleted in its entirety
and substituted with the following:

10. Global Sourcing and Operating Guidelines

     10.1 LS&CO. Reputation. LS&CO. has and is determined to maintain a worldwide
reputation for ethical business conduct. To that end, LS&CO. adopted Global Sourcing and
Operating Guidelines (“GSOG”) setting forth standards of conduct it requires from, among
others, its licensees, including Licensee. Licensee acknowledges that its conduct, and the
conduct of any subcontractor, must reflect positively on LS&CO.’s reputation and accordingly
agrees to the provisions of this Section 10. Additionally, Licensee understands and agrees
that LS&CO. may, from time to time, disclose Licensees’ customers and suppliers, along with
LS&CO.’s customers and suppliers, in governmental or public filings, on LS&CO.’s corporate
website or otherwise in line with the goal of maintaining transparency and high standards of
ethical business conduct.

 

 

     10.2 Ethical Responsibility. Licensee agrees that it shall, and shall cause
its subcontractors to follow the highest standards of business ethics in conducting all
aspects of its operations under this Agreement.

     10.3 Global Sourcing and Operating Guidelines.

          (a) Licensee represents and warrants that its key officers and managers have read and
understand the GSOG, including but not limited to its Business Partner Terms of Engagement
(“TOE”) and the Country Assessment Guidelines attached to this Agreement as Exhibit
H.

          (b) Licensee agrees that it shall, and shall cause its permitted subcontractors to,
comply with the requirements of the GSOG at all times.

     10.4 Effect on Compliance with Laws. Licensee shall be fully responsible for
compliance with all local laws and regulations applicable to Licensee’s operations. If the
requirements of the GSOG are stricter than the requirements of applicable law, the
requirements of the GSOG shall control.

     10.5 TOE Assessment. Licensee acknowledges that LS&CO. requires official,
approved TOE assessments (“TOE Assessments”) to be performed from time to time to ensure TOE
compliance on all manufacturing facilities or subcontractors used by Licensee to produce any
Products, including branded samples. Licensee shall, at Licensee’s sole expense, conduct
all TOE Assessments required by LS&CO. through Verité Inc. or another LS&CO. approved
third-party monitoring company.

          (a) For the purposes of monitoring compliance with this Section Licensee shall provide
LS&CO. with a complete list of all the manufacturing facilities, subcontractors and
suppliers it intends to use, including details of the purposes of the proposed use of such
manufacturing facilities, subcontractors and suppliers. Licensee represents that it is
presently using the third-parties listed on Exhibit J to manufacture Products, and
that it is not subcontracting with a third party beyond those listed on Exhibit J.
Licensee shall, within thirty (30) days after completion of a manufacturing facility TOE
Assessment, deliver a copy of the assessment to LS&CO. Licensee shall not begin production
at any manufacturing facility until LS&CO. reviews and approves, as specified under Section
19, the TOE Assessment. Licensee acknowledges that LS&CO.’s goal is to provide visibility
with respect to all of the contractors and suppliers producing products bearing LS&CO.
brands. To that end, LS&CO. may, from time to time, disclose Licensee’s contractors and
suppliers in governmental or public filings, on LS&CO.’s corporate website or otherwise.

          (b) It is understood and agreed that LS&CO. makes no representations or warranties with
respect to the GSOG, including the TOE and the TOE Assessments, and that LS&CO. shall not be
liable to Licensee or its

 

 

subcontractors or its suppliers for any failure to comply with the GSOG, the TOE or the
LS&CO. Restricted Substances List. Any verification or monitoring shall not relieve
Licensee from its obligation to strictly comply with the GSOG, the TOE, the LS&CO.
Restricted Substances List and all applicable laws and regulations.

          10.6 Effect of Breach. This Section 10 is of the essence of this Agreement.
Any failure by Licensee or any of its subcontractors to comply with the GSOG shall be
grounds for declaration of an Event of Default by LS&CO. under Section 13.

          10.7 Effluent Guidelines. Licensee agrees to follow LS&CO.’s Worldwide
Effluent Guidelines set out on Exhibit K-1. Licensee shall submit a quarterly
report in the form set out on Exhibit K-2 attesting to its compliance with those
guidelines and an annual report in the form set out on Exhibit K-3 attesting to its
compliance with guidelines relating to metal discharge, and deliver copies of each report to
LS&CO. as specified on Exhibit K-2 and Exhibit K-3.

	8.	 	Section 24. “Notices” shall be amended by substituting LS&CO.’s contacts as follows:

If to LS&CO.:

Jim Tibbs

Sr. VP Men’s Merchandising & Design and Brand Licensing, Dockers®

Levi Strauss & Co.

1155 Battery Street

San Francisco, CA 94111

Telephone: (415) 501-6000

Facsimile: (415) 501-1484

With a copy to:

Hilary A. Fenner

Assistant General Counsel

Levi Strauss & Co.

1155 Battery Street

San Francisco, CA 94111

Telephone: (415) 501-6000

Facsimile: (415) 501-7650

	9.	 	Except as set forth above, all other terms and conditions contained in the Agreement shall
remain in full force and effect.

 

 

     IN WITNESS WHEREOF, the parties have executed this Amendment No. 3 by their respective
officers hereunto duly authorized as of the day and year first written above.

	 	 	 	 	 	 	 	 	 	 	 
	LEVI STRAUSS & CO.	 	 	 	GENESCO, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ John Goodman
 

John Goodman

President and Commercial General

Manager, Dockersâ
	 	 	 	By:

Name:

Title:
	 	/s/ Jonathan Caplan
 

Jonathan Caplan

CEO — Brand Group

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