Amendment No. 1 to the Girbaud Distribution Agreement (Canada) between Western Glove Works and I.C. Isaacs and Company, L.P.

Summary

This amendment updates the Girbaud Distribution Agreement between Western Glove Works and I.C. Isaacs and Company, L.P. to specify new minimum sales targets and royalty payments for men's and women's products in Canada. The amendment sets annual minimum sales and royalty amounts for both product categories from 2001 to 2004, with future years based on a percentage of U.S. net sales. All other terms of the original agreement remain unchanged.

EX-10.74 4 ex-10_74.txt EXHIBIT 10.74 Exhibit 10.74 AMENDMENT NO. 1 TO THE GIRBAUD DISTRIBUTION AGREEMENT CANADA This is Amendment No. 1 to the Girbaud Distribution Agreement (the "Agreement") dated as of the 15th day of May, 2000 by and between Western Glove Works ("Distributor"), a partnership having its offices at 555 Logan Avenue, Winnipeg, Manitoba, Canada R3A 0S4, and I.C. ISAACS AND COMPANY, L.P. ("ICI"), a limited partnership organized and existing under the laws of Delaware having its offices at 3840 Bank Street, Baltimore, Maryland ###-###-#### and 350 Fifth Avenue, Suite 1029, New York 10118. Defined terms used herein shall have the meaning ascribed to them in the Agreement. This Amendment is entered into as of June 15, 2000. For good and adequate consideration in connection with the execution by ICI of the Agreement contemporaneously herewith, the parties hereby amend the Agreement as follows: Section 5.4, Target Minimum Sales, of the Agreement is hereby amended by inserting the following language at the end of the Section after the existing text of the Section: The Minimum Sales set forth above shall be apportioned between Men's Products and Women's Products during each year, as follows, so that at least the minimum number of Net Sales of Women's and Men's Products set forth below are required to be made by Distributor during the relevant year: WOMEN'S TARGET MINIMUM SALES (IN CANADIAN DOLLARS) - First year - 2001 $ 160,000 Assuming renewal after 2001 - Second year - 2002 $ 200,000 - Third year - 2003 $ 300,000 - Fourth year - 2004 $ 500,000 - Any year thereafter (provided the Agreement remains in place) 10% of US Net Sales of Women's Products of the previous calendar year. -1- MEN'S TARGET MINIMUM SALES (IN CANADIAN DOLLARS) - First year - 2001 $1,440,000 Assuming renewal after 2001 - Second year - 2002 $1,800,000 - Third year - 2003 $2,700,000 - Fourth year - 2004 $4,500,000 - Any year thereafter (provided the Agreement remains in place) 10% of the US Net Sales of Men's Products of the previous calendar year. Based on this, the Minimum Royalties to be paid by Distributor shall be as follows (in Canadian Dollars): For Men's Products: - First year - 2001: $ 90,250 - Second year - 2002: $112,500 - Third year - 2003: $168,750 - Fourth - 2004: $281,250 - Any year thereafter (provided the Agreement remains in place): 6.25% of 10% of the US Net Sales of Men's Products of the previous calendar year. For Women's Products: - First year - 2001: $10,000 - Second year - 2002: $12,500 - Third year - 2003: $18,750 - Fourth year - 2004: $31,250 - Any year thereafter (provided the Distribution Agreement remains in place): 6.25% of 10% of the US Net Sales of Women's Products of the previous calendar year. Except as set forth above, the Agreement remains in effect without changes. -2- IN WITNESS WHEREOF, the parties have executed, by their respective duly authorized officers and intending to be legally bound, this Amendment No. 1 to the Agreement as of the day and year first above written. WESTERN GLOVE WORKS I.C. ISAACS AND COMPANY, L.P. By: /s/ ROBERT J. ARNOT -------------------------------------------- Chairman and CEO of I.C. Isaacs & Company, By: /s/ [ILLEGIBLE] Inc., General Partner -------------------------- Title: PRESIDENT Title: CHAIRMAN & CEO ----------------------- ----------------------------------------- -3-