Trademark License Renewal Agreement between Wilson Sporting Goods Co. and Auburn Hosiery Mills, Inc. (Gerber Childrenswear, Inc.)

Summary

This agreement confirms the renewal of a trademark license between Wilson Sporting Goods Co. and Auburn Hosiery Mills, Inc., with Gerber Childrenswear, Inc. involved as a purchaser of Auburn's stock. The renewal extends the license term through December 31, 2007, based on Auburn meeting required sales targets. The agreement also requests confirmation of Auburn's current legal status. Wilson reserves all rights under the renewed agreement.

EX-10.31 4 g74972ex10-31.txt TRADEMARK LICENSE RENEWAL AGREEMENT EXHIBIT 10.31 - WILSON LICENSE RENEWAL [ Wilson Letterhead] Raymond M. Berens General Counsel By Fax (212 ###-###-####) and Regular Mail March 27, 2002 Gerber Childrenswear, Inc. c/o Mr. Kevin Angliss 1333 Broadway, Suite 700 New York, NY 10018 Re: License Agreement Renewal Confirmation Ladies/Gentlemen: This letter concerns the Trademark License Agreement between Wilson Sporting Goods Co. ("Wilson") and Auburn Hosiery Mills, Inc., dated as of May 28, 1997, and amended of December 8, 1997 (the "Agreement"). Wilson confirms its receipt of your renewal notice dated January 31, 2002 (copy attached). Wilson confirms that such notice extended the Term of the Agreement through December 31, 2007. Wilson also confirms its understanding, under the terms of the December 8, 1997 amendment, that all of the outstanding capital stock Auburn Hosiery Mills, Inc. was to be purchased by Gerber Childrenswear, Inc. Please let me know whether this did or did not in fact occur, and whether Auburn Mills, Inc. does or does not exist as a legal entity today. Wilson reserves all rights under the Agreement, as renewed. Sincerely, /s/ Ray Berens Ray Berens WILSON SPORTING GOODS CO. 8700 W. BRYN MAWR AVENUE CHICAGO, IL 60631 TEL ###-###-#### FAX ###-###-#### EMAIL: ***@*** ONLINE: http://www.wilsonsports.com [WILSON SPORT SOCKS COMPANY LETTERHEAD] January 31, 2002 Mr. Al Bender Director of Licensing Wilson Sporting Goods Company 8700 West Bryn Mawr Avenue Chicago, Il. 60631-3584 Dear Al: For your information, attached is a recap of our Wilson sales for the year 2001. Our total sales for both the U.S. and International equate to $57,251,684. Total royalties sent to Wilson equal $2,715,067. Despite losing K-Mart business of over 4 million dollars for 2001, our total sales were down approximately 1.1 million from last year. Our Pro-Staff program continues to benefit us with new programs in select Sporting Goods and Retail accounts. Our license agreement dated 5/28/97 gives us an option to renew for the years 2003-2007. This option is based on our achieving royalty bearing sales for years 1998 though 2001 of 110% of the listed targeted sales for those years. The license spells out the total targeted sales for those years to be 204 million. 110% of that figure would equate to $224,400.000. Our total royalty bearing sales for years in question equate to $228,786.782. We, therefore, formerly advise you that we wish to exercise our option for years 2003-2007. Please confirm in writing that the renewal option is in place. We look forward to our continued growth with the Wilson Sport sock brand. Sincerely, /s/ Kevin Angliss Kevin Angliss President/C.O.O. KA:am Enc. Cc: Mr. Ray Berens Mr. Jim Baugh RENEWAL OPTION ACCEPTED /s/ Al Bender ----------------------- 2/14/02 - -------------------------------------------------------------------------------- 2001 Wilson Sales - -------------------------------------------------------------------------------- Quarter Wilson, U.S. International Royalty 1st 10,855,984 3,215,258 $844,274 2nd 11,131,381 3,066,459 $711,489 3rd 9,397,780 3,820,091 $528,715 4th 12,972,531 2,792,200 $630,589 ====================================================================== 44,357,676 12,894,008 $2,715,067 Total Wilson Sales = 57,251,684 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Wilson Sport Socks Auburn Hosiery Mills - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Target Actual Royalty Year Sales Bearing Sales - -------------------------------------------------------------------------------- 1998 48,000,000 53,135 ###-###-#### 50,000,000 60,072,078 2000 52,000,000 58,327,166 2001 54,000,000 57,251,684 ================================================================================ 204,000,000 228,786,782 x 110% 224,400,000 Total Royalty's Paid (4 Years) $10,851,472 - --------------------------------------------------------------------------------