old COLLEGIATE PRODUCTS

COLLEGIATE PRODUCT BUSINESS PLAN FOR ALEXIS PLAYSAFE

J. Brett AllenSeptember 14, 2004

Collegiate Product Business Plan for Alexis PlaySafe

ACTION PLAN

This is a summary of the recommended action plan. More detail can be found in the sections following.

Licenses:

Southwest and Southeast

1. Since we already have or are in the process of obtaining licenses for most institutions in the SEC, ACC, and Big 12 conferences, obtain licenses for the remaining institutions in these conferences, including independent licensors. This will give Alexis PlaySafe a full set of institutions and licenses in Alexis PlaySafe’s primary southwest-to-southeast trading area.

2. Investigate interest for non-BCS-conference institutions in Alexis PlaySafe’s primary southwest-to-southeast trading area (Conference USA, Sun Belt Conference); obtain licenses for these institutions on an institution-by-institution basis as interest warrants. Institutions to particularly consider include those in Conference USA.

Midwest and Northeast

3. Investigate interest in the northeast and/or midwest; if there is sufficient interest, obtain licenses for all Big East and Big 10 conference institutions, respectively.

4. Investigate interest in individual MAC institutions; if there is sufficient interest, obtain licenses for these institutions on an institution-by-institution basis as interest warrants.

West

5. Investigate interest in the western United States; if there is sufficient interest, obtain licenses for all Pac-10 conference institutions.

6. Investigate interest in individual WAC and Mountain West conference institutions; if there is sufficient interest, obtain licenses for these institutions on an institution-by-institution basis as interest warrants. Institutions to particularly consider include those in the Mountain West Conference.

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Products:

Existing Products

As volume and demand permit, expand the existing product line (bodysuits, sleepers, hats, and bibs) as follows:

1. Add new neutral colors, such as grays.2. Add new embroidered designs and verbiage using existing camera-ready artwork.3. Develop, in-house, new creative artwork for approval (mascot caricatures, rivalry

plays, etc.)

New Products (existing Alexis product)

Pursue approval for the following existing Alexis products:

1. Blankets2. Cardigans3. Stocking Caps

New Products (develop in-house)

1. Loveys/Security Blankets 2. Hooded Towels 3. Shirts (tees, mock turtlenecks)4. Pajamas5. Rompers 6. Overalls and Short-alls (perhaps modify an existing Alexis fashion design)7. Decorative Items (Door Hangers, Wall Hangings)8. Novelty (Throw/Decorative/Gift) Pillows and Cushions9. Novelty Hats10. Replica Cheerleader Uniforms

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Marketing:

Regional Marketing Through Brick-and Mortar Outlets

1. Market products to department stores in Alexis PlaySafe’s primary southwest-to-southeast trading area. Primary department store customers in this area include:a. Belkb. Dillard’sc. Rich’s-Lazarus-Goldsmith’s-Macy’s (to be renamed Macy’s Central)d. Burdine’s-Macy’s (to be renamed Macy’s Florida)e. Kohl’sf. Foley’s (May)g. Hecht’s/Strawbridge’s (May)h. McRae’s (Saks)i. Parisian (Saks)j. Proffitt’s (Saks)

2. As department stores in Alexis PlaySafe’s primary southwest-to-southeast trading area are marketed, market to other existing or traditional wholesale customers in the region, such as specialty stores and gift shops carrying infant and children’s apparel.

3. Other potential wholesale customers include the following:a. Gift Shops specializing in collegiate items from a variety of institutionsb. Broad-line Gift Shops (e.g., Cracker Barrel)c. Sporting Goods Retailersd. T-shirt/Casual Apparel Shops specializing in logo/licensed items

4. Licenses to market through campus/local distribution channels are pending (this restriction is not applicable to non-CLC institutions). When licensed, pursue the following markets:a. College Bookstores (both on- and off-campus)b. College Gift Shops (both on- and off-campus)c. College Alumni Associations

5. Increase visibility and exposure through the following wholesale marketing channels:a. Trade Shows

i. Atlanta Gift Marketii. The Gift Fair in Atlantaiii. The Super Show (sporting goods and allied apparel)iv. MAGICv. Licensing International Expo (licensed products)vi. Others

b. B2B Web-based Channelsi. The Collegiate Exchange (hosted by CLC)ii. DesktopExpos Sporting Goods and Apparel Expoiii. Others

6. As additional regions are added, follow a similar sequence of market development.

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National Marketing Through Direct Consumer Sales

Licenses to market through online/catalog distribution channels are pending (this restriction is not applicable to non-CLC institutions). When licensed, pursue the following channels:

1. alexisplaysafe.com Website 2. University-Affiliated Catalogs3. eBay4. Direct Mail to Alumni Association Mailing Lists5. Alumni Publications Advertisements, Inserts, and Offers6. Athletic Conference Websites

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EXISTING GARMENTS AND NEW PRODUCTS

Existing ALEXIS USA Logo Items (Items Currently Licensed to Produce):

• Bibs• Onesies• Sleepers• Knotted Hats

Other Current ALEXIS USA Items Suitable for Logos (NOT Currently Licensed to Produce):

• Blankets• Cardigans• Stocking Caps• Diaper Covers• Pants

Allied Childrenswear (not current Alexis PlaySafe product) Suitable for Collegiate Logos or Designs:

• Athletic (Football, Baseball, Basketball) Replica Jerseys• Replica Cheerleader Uniforms• Tees• Polos• Collared Onesies• Overalls and Shortalls• Mock Turtlenecks• Socks and Booties• Novelty Hats• Pajamas• Novelty (Throw/Decorative/Gift) Pillows and Cushions• Loveys/Security Blankets• Rompers• Decorative Items (Door Hangers, Wall Hangings)• Hooded Towels• Crib and Bassinet Linens

Design Ideas:

• Caricatures of Mascots (“baby”/juvenile mascots, etc.)• Cheers and Battle Cries

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• Cute Puns• Rivalry Plays (e.g., “I hate two things! Peas and Gators™!”)

In keeping with APS’s core competencies and upscale market, designs would be embroidered and/or appliqued, and not printed.

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INSTITUTIONS

The National Collegiate Athletic Association (NCAA) groups colleges and universities into four divisions (for football; three for all other sports), depending on the size of the school and the scope and size of its athletic programs. These divisions are as follows, from largest to smallest:

• I-A. These are the largest institutions and have strong state and regional followings, and in some cases large national followings. They also have large athletic programs.

• I-AA. Not as large as I-A, many of these institutions have strong state followings. Some of them have quite sizable athletic programs and are working to move up to I-A. Note: Divisions I-A and I-AA are combined for sports other than football.

• II. While some Division II institutions have strong state followings, most interest tends to be local and not as strong as Divisions I-A and I-AA.

• III. Interest tends to be weak and/or local at these institutions.

Institutions are grouped into conferences, which roughly correspond to geographic regions. Division I-A conferences can be informally divided into two groups: the conferences that are members of the Bowl Championship Series (BCS) and are the older, more established conferences; and the newer conferences that are not members of the BCS. Institutions that are members of BCS conferences tend to have larger, more established followings than those that are members of non-BCS conferences.

BCS Conferences:Atlantic Coast Conference (ACC)Big East ConferenceBig 10 ConferenceBig 12 ConferencePac-10 ConferenceSoutheastern Conference (SEC)

Non-BCS Conferences:Conference USAMid-American Conference (MAC)Mountain West ConferenceSun Belt ConferenceWestern Athletic Conference (WAC)

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There are also four independent institutions, as follows (as of the 2005-06 football season):

Institution State Mascot Rank Lic Admin Min Royalty Breakeven RateArmy (USMA) NY Black Knights CLC $200 $2,500 8.00%Navy (USNA) MD Midshipmen LRG $100 $1,250 8.00%Notre Dame IN Fighting Irish 4 CLC $1000++ N/A 8.00%Temple PA Owls CLC $500 $6,250 8.00%

Notes: Rank=CLC sales rank during CLC’s last fiscal year of 7/1/03 through 6/30/04. Breakeven= Sales required to recoup minimum royalty payment.

Notre Dame is a member of the Big East Conference for all sports except football, and has a separate agreement with the BCS for football. The minimum royalty for Notre Dame, for apparel, is per agreement and is between $1,000 and $5,000.

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DIVISION I-A CONFERENCES AND GEOGRAPHIC COVERAGE (AS OF THE 2005-06 FOOTBALL SEASON):

Atlantic Coast Conference (ACC) (BCS)

Institution State Mascot Rank Lic Admin Min Royalty Breakeven RateBoston College MA Eagles CLC $500 $6,250 8.00%Clemson SC Tigers 29 CLC $500 $6,250 8.00%Duke NC Blue Devils 27 CLC $200 $2,500 8.00%Florida State FL Seminoles 13 CLC $1,000 $12,500 8.00%Georgia Tech GA Yellow Jackets 35 CLC $200 $2,500 8.00%Maryland MD Terrapins 25 CLC $500 $6,250 8.00%Miami (FL) FL Hurricanes 16 CLC $500 $6,250 8.00%North Carolina NC Tar Heels 1 CLC $1,000 $12,500 8.00%NC State NC Wolfpack 32 LRG $100 $1,250 8.00%Virginia VA Cavaliers 34 CLC $200 $2,500 8.00%Virginia Tech VA Hokies Indep. $250 $3,125 8.00%Wake Forest NC Demon Deacons LRG $100 $1,333 7.50%

Notes: Rank=CLC sales rank during CLC’s last fiscal year of 7/1/03 through 6/30/04 (NC State switched from CLC to LRG effective 7/1/04). Breakeven=Sales required to recoup minimum royalty payment.

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ACC (7)

ACC


Big East Conference (BCS)

Institution State Mascot Rank Lic Admin Min Royalty Breakeven RateCincinnati OH Bearcats 40 CLC $400 $5,000 8.00%Connecticut CT Huskies 21 CLC $200 $2,500 8.00%Louisville KY Cardinals 42 CLC $300 $3,750 8.00%Pittsburgh PA Panthers 33 CLC $500 $6,250 8.00%Rutgers NJ Scarlet Knights Indep. $300 $3,750 8.00%South Florida FL Bulls CLC $100 $1,250 8.00%Syracuse NY Orange 30 CLC $500 $6,250 8.00%West Virginia WV Mountaineers Indep. $0 $0 8.00%

Notes: Rank=CLC sales rank during CLC’s last fiscal year of 7/1/03 through 6/30/04. Breakeven=Sales required to recoup minimum royalty payment.

Notre Dame (see Independent Institutions) is a member of the Big East Conference for all sports except football. West Virginia charges a $125 per year administrative fee.

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Big East (8)

Big East


Big Ten Conference (BCS)

Institution State Mascot Rank Lic Admin Min Royalty Breakeven RateIllinois IL Fighting Illini 23 CLC $500 $6,250 8.00%Indiana IN Hoosiers Indep. $250 $3,125 8.00%Iowa IA Hawkeyes Indep. $0 $0 8.00%Michigan MI Wolverines 2 CLC $750 $9,375 8.00%Michigan State MI Spartans Indep. per agr. N/A 8.00%Minnesota MN Golden Gophers Indep. per agreementNorthwestern IL Wildcats CLC $300 $3,750 8.00%Ohio State OH Buckeyes Indep. $1,000 $12,500 8.00%Penn State PA Nittany Lions 10 CLC $750 $9,375 8.00%Purdue IN Boilermakers 28 CLC $500 $6,250 8.00%Wisconsin WI Badgers 17 CLC $500 $6,250 8.00%

Notes:

Rank=CLC sales rank during CLC’s last fiscal year of 7/1/03 through 6/30/04. Breakeven=Sales required to recoup minimum royalty payment.

Numbers in parentheses after CLC reflect sales rank during CLC’s fiscal year of 7/1/03 through 6/30/04. Michigan charges a $250 one-time application fee, and Iowa charges a $500 one-time application fee.

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Big 10 (8)

Big 10


Big 12 Conference (BCS)

Institution State Mascot Rank Lic Admin Min Royalty Breakeven RateBaylor TX Bears CLC $200 $2,667 7.50%Colorado CO Buffaloes 38 CLC $500 $6,250 8.00%Iowa State IA Cyclones Indep. $500 $6,250 8.00%Kansas KS Jayhawks 20 CLC $250 $3,125 8.00%Kansas State KS Wildcats 26 CLC $500 $6,250 8.00%Missouri MO Tigers 31 CLC $500 $6,250 8.00%Nebraska NE Cornhuskers 14 CLC $1,000 $12,500 8.00%Oklahoma OK Sooners 6 CLC $500 $6,250 8.00%Oklahoma State OK Cowboys 19 CLC $200 $2,667 7.50%Texas TX Longhorns 3 CLC $500 $6,250 8.00%Texas A&M TX Aggies LRG $100 $1,250 8.00%Texas Tech TX Red Raiders 37 CLC $200 $2,500 8.00%

Notes:


Texas A&M charges a $260 per year administrative fee.

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Big 12 (7)

Big 12


Pac-10 Conference (BCS)

Institution State Mascot Rank Lic Admin Min Royalty Breakeven RateArizona AZ Wildcats 22 CLC $1,000 $11,765 8.50%Arizona State AZ Sun Devils LRG $100 $1,176 8.50%Cal-Berkeley CA Golden Bears Indep. per agr. N/A 8.00%Oregon OR Ducks Indep. $1,000 N/A 8 to 15%Oregon State OR Beavers Indep. per agreementStanford CA Cardinal 39 CLC $700 $8,750 8.00%UCLA CA Bruins Indep. per agreementSouthern Cal CA Trojans Indep. per agreementWashington WA Huskies 36 CLC $500 $6,250 8.00%Washington St. WA Cougars 43 CLC $250 $3,125 8.00%

Notes:


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Pac-10 (4)

Pac-10


Southeastern Conference (SEC) (BCS)

Institution State Mascot Rank Lic Admin Min Royalty Breakeven RateAlabama AL Crimson Tide 12 CLC $500 $6,250 8.00%Arkansas AR Razorbacks 18 CLC $300 $3,750 8.00%Auburn AL Tigers 15 CLC $750 $9,375 8.00%Florida FL Gators 9 CLC $1,000 $11,765 8.50%Georgia GA Bulldogs 7 CLC $500 $6,250 8.00%Kentucky KY Wildcats 11 CLC $1,000 $12,500 8.00%LSU LA Tigers 5 CLC $500 $6,250 8.00%Mississippi St. MS Bulldogs Indep. $300 $3,750 8.00%Ole Miss MS Rebels 41 CLC $200 $2,500 8.00%South Carolina SC Gamecocks 24 CLC $500 $6,250 8.00%Tennessee TN Volunteers 8 CLC $1,000 $11,765 8.50%Vanderbilt TN Commodores LRG $50 $625 8.00%

Notes:


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SEC (9)

SEC


Conference USA (non-BCS)

Institution State Mascot Lic Admin Min Royalty Breakeven RateAla.-Birmingham AL Blazers CLC $100 $1,333 7.50%Central Florida FL Golden Knights CLC $100 $1,250 8.00%Eastern Carolina NC Pirates CLC $100 $1,250 8.00%Houston TX Cougars CLC $100 $1,250 8.00%Marshall WV Thundering Herd CLC $500 $6,250 8.00%Memphis TN Tigers CLC $200 $2,500 8.00%Rice TX Owls CLC $0 $0 7.50%Southern Miss MS Golden Eagles Indep. $250 $3,333 7.50%SMU TX Mustangs CLC $250 $3,333 7.50%Texas-El Paso TX Miners CLC $100 $1,250 8.00%Tulane LA Green Wave CLC $250 $3,333 7.50%Tulsa OK Golden Hurricane CLC $100 $1,333 7.50%

Notes:

Breakeven=Sales required to recoup minimum royalty payment.

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C-USA (9)

Conference USA


Mid-American Conference (MAC) (non-BCS)

Institution State Mascot Lic Admin Min Royalty Breakeven RateAkron OH Zips LRG $50 $667 7.50%Ball State IN Cardinals Indep. $100 $1,250 8.00%Bowling Green KY Falcons LRG $50 $625 8.00%Buffalo NY Bulls SUNY $0 $0 7.50%Central Mich. MI Chippewas LRG $50 $625 8.00%E. Michigan MI Eagles Indep. $100 $1,538 6.50%Kent State OH Golden Flashes LRG $50 $625 8.00%Miami (OH) OH Redhawks LRG $0 $0 8.00%Northern Illinois IL Huskies LRG $50 $667 7.50%Ohio OH Bobcats LRG $50 $667 7.50%Toledo OH Rockets CLC $0 $0 7.50%W. Michigan MI Broncos LRG $100 $1,250 8.00%

Notes:


Buffalo charges administrative fees of $75 + $5 per licensed article per year.

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MAC (6)

MAC


Mountain West Conference (non-BCS)

Institution State Mascot Rank Lic Admin Min Royalty Breakeven RateAir Force CO Falcons CLC $200 $2,500 8.00%Brigham Young UT Cougars 46 CLC $500 $6,667 7.50%Colorado State CO Rams 47 CLC $200 $2,500 8.00%New Mexico NM Lobos 50 CLC $250 $3,125 8.00%San Diego State CA Aztecs CLC $500 $6,667 7.50%TCU TX Horned Frogs CLC $100 $1,429 7.00%UNLV NV Rebels CLC $250 $2,941 8.50%Utah UT Utes 49 CLC $500 $6,250 8.00%Wyoming WY Cowboys CLC $250 $3,333 7.50%

Notes:


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Mtn. West (7)

Mountain West


Sun Belt Conference (non-BCS)

Institution State Mascot Lic Admin Min Royalty Breakeven RateArkansas State AR Indians CLC $200 $2,500 8.00%Florida Atlantic FL Owls SMA $0 $0 7.00%Florida Intl. FL Golden Panthers Indep. per agreementLA-Lafayette LA Ragin' Cajuns CLC $0 $0 8.00%LA-Monroe LA Indians CLC $100 $1,250 8.00%Middle Tenn. TN Blue Raiders LRG $50 $667 7.50%North Texas TX Mean Green CLC $100 $1,333 7.50%Troy State AL Trojans SMA $0 $0 8.00%

Notes:


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Sun Belt (6)

Sun Belt


Western Athletic Conference (WAC) (non-BCS)

Institution State Mascot Lic Admin Min Royalty Breakeven RateBoise State ID Broncos CLC $100 $1,333 7.50%Fresno State CA Bulldogs CLC $100 $1,250 8.00%Hawaii HI Warriors LRG $100 $1,333 7.50%Idaho ID Vandals CLC $100 $1,250 8.00%Louisiana Tech LA Bulldogs CLC $200 $2,500 8.00%Nevada NV Wolf Pack CLC $250 $3,333 7.50%New Mexico St. NM Aggies CLC $175 $2,188 8.00%San Jose State CA Spartans CLC $0 $0 8.00%Utah State UT Aggies CLC $0 $0 7.50%

Notes:


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WAC (7)

WAC


CURRENT AND PENDING ALEXIS PLAYSAFE COLLEGIATE LICENSES (AS OF 9/14/04)

Institution State Mascot Conf Rank Lic Admin Min Royalty Breakeven Rate StatusArizona State AZ Sun Devils Pac10 LRG $100 $1,176 8.50% ShippingKansas KS Jayhawks Big12 20 CLC $250 $3,125 8.00% ShippingMissouri MO Tigers Big12 31 CLC $500 $6,250 8.00% ShippingOklahoma OK Sooners Big12 6 CLC $500 $6,250 8.00% ShippingTexas TX Longhorns Big12 3 CLC $500 $6,250 8.00% ShippingTexas A&M TX Aggies Big12 LRG $100 $1,250 8.00% ShippingTexas Tech TX Red Raiders Big12 37 CLC $200 $2,500 8.00% ShippingAlabama AL Crimson Tide SEC 12 CLC $500 $6,250 8.00% ShippingArkansas AR Razorbacks SEC 18 CLC $300 $3,750 8.00% Awaiting Sample Approval;

then Manufacture and ShipAuburn AL Tigers SEC 15 CLC $750 $9,375 8.00% ShippingFlorida FL Gators SEC 9 CLC $1,000 $11,765 8.50% ShippingGeorgia GA Bulldogs SEC 7 CLC $500 $6,250 8.00% ManufacturingKentucky KY Wildcats SEC 11 CLC $1,000 $12,500 8.00% Awaiting Artwork ApprovalLSU LA Tigers SEC 5 CLC $500 $6,250 8.00% ShippingSouth Carolina SC Gamecocks SEC 24 CLC $500 $6,250 8.00% Awaiting Artwork ApprovalTennessee TN Volunteers SEC 8 CLC $1,000 $11,765 8.50% Awaiting Concept ApprovalVanderbilt TN Commodores SEC LRG $50 $625 8.00% Awaiting Addendum

SubmissionClemson SC Tigers ACC 29 CLC $500 $6,250 8.00% Awaiting Artwork ApprovalDuke NC Blue Devils ACC 27 CLC $200 $2,500 8.00% Awaiting Artwork ApprovalFlorida State FL Seminoles ACC 13 CLC $1,000 $12,500 8.00% ShippingGeorgia Tech GA Yellow Jackets ACC 35 CLC $200 $2,500 8.00% Awaiting Design ApprovalMiami (FL) FL Hurricanes ACC 16 CLC $500 $6,250 8.00% Awaiting Artwork ApprovalNorth Carolina NC Tar Heels ACC 1 CLC $1,000 $12,500 8.00% Awaiting Artwork ApprovalNC State NC Wolfpack ACC 32 LRG $100 $1,250 8.00% Awaiting Addendum

SubmissionWake Forest NC Demon Deacons ACC LRG $100 $1,333 7.50% Awaiting Addendum

Submission

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Institution State Mascot Conf Rank Lic Admin Min Royalty Breakeven Rate StatusCitadel SC Bulldogs SC CLC $0 $0 6.50% Awaiting Design ApprovalChattanooga TN Mocs SC CLC $0 $0 8.00% Awaiting Design ApprovalGeorgia State GA Panthers CLC $0 $0 7.50% ManufacturingGa. Southern GA Eagles SC Indep. $0 $0 7.00% Submit Sample

Notes:


CLC Approval Process:

1. New Institution Request and Concept Approval2. Get Artwork3. Submit Designs4. Submit Samples (as required)5. Begin Manufacture; Submit Addendum and Minimum Royalty6. Ship

LRG Approval Process:

1. Submit Addendum and Minimum Royalty2. Get Artwork3. Submit Designs4. Submit Samples5. Manufacture and Ship

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DEPARTMENT STORES AND GEOGRAPHIC COVERAGE

Department store chains generally have either nationwide presence or presence primarily in a specific region. The regions in which the regional stores have a strong presence often coincide with the regions covered by one to three athletic conferences.

This makes it easy to present a small yet well-defined package of institutions to each regional department store, simply by presenting those institutions in those conferences where the department store has a strong presence. This package will provide a comprehensive number of regionally popular institutions and ensure that both sides of state or regional rivalries are served, while keeping the number of licenses required down to a manageable and cost-effective number.

Growing the collegiate business by conference also enables the managed, steady growth of the business while keeping up-front investments to a minimum. Once the licenses for a conference or conferences in a particular region have been obtained, other department stores in those conferences’ region can be targeted for business, leveraging the licensing fees and expenses previously incurred. Other conferences and regions can be added incrementally as the business grows and the demand is established.

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Belk

State StoresNC 75GA 41SC 38VA 20FL 20TN 7TX 7AR 5KY 4AL 4MD 2WV 2MS 2

Major Presence: NC, GA, SC, VA, FL, TNPrimary Conferences: ACC, SEC, Conference USA

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41 to 75 (2)38 to 41 (1)7 to 38 (4)4 to 7 (3)2 to 4 (3)

Belk


Dillard’s

State Stores State StoresTX 59 AR 7FL 43 KS 7OH 22 MS 6NC 15 NM 6TN 15 UT 6LA 15 IA 5AZ 15 NE 4MO 14 NV 4AL 13 IN 3OK 13 MT 3CO 11 ID 3VA 10 IL 2GA 10 CA 2KY 9 WY 1SC 8 WY 1

Major Presence: TX, FL, OH, NC, TN, LA, AZ, MO, AL, OK, CO, VA, GA, KY, SC, AR, KSPrimary Conferences: ACC, SEC, Big 12, Conference USA

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22 to 43 (2)11 to 22 (8)7 to 11 (6)4 to 7 (6)1 to 4 (6)

Dillard's


Bon-Macy’s (to be renamed Macy’s Northwest) (Federated)

State StoresWA 25ID 9OR 5MT 3WY 1

Major Presence: WA, ID, ORPrimary Conferences: Pac-10

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25 to 25 (1)9 to 25 (1)5 to 9 (1)3 to 5 (1)1 to 3 (1)

Bon-Macy's


Burdine’s-Macy’s (to be renamed Macy’s Florida) (Federated)

56 Florida Stores

Major Presence: FLPrimary Conferences: SEC, ACC, Conference USA (Central Florida), Big East (South Florida)

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Macy’s East (Federated)

State StoresNJ 25NY 24MA 8PA 6CT 4NH 4VA 4MD 3LA 2DE 1ME 1RI 1

Major Presence: NJ, NY, MAPrimary Conferences: Big East, ACC (Boston College)

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24 to 25 (2)8 to 24 (1)6 to 8 (1)2 to 6 (5)1 to 2 (3)

Macy's East


Macy’s West (Federated)

State StoresCA 94HI 14AZ 7NV 5TX 4MN 1NM 1

Major Presence: CA, HI, AZPrimary Conferences: Pac-10, WAC

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94 to 94 (1)14 to 94 (1)7 to 14 (1)4 to 7 (2)1 to 4 (2)

Macy's West


Rich’s-Lazarus-Goldsmith’s-Macy’s (to be renamed Macy’s Central) (Federated)

State StoresGA 19OH 18TN 5KY 5IN 4PA 4AL 2SC 2WV 1

Major Presence: GA, OH, TN, KYPrimary Conferences: Rich’s: SEC, ACC; Lazarus: Big 10, SEC, MAC; Goldsmith’s: SEC, Conference USA (Memphis)

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19 to 19 (1)18 to 19 (1)5 to 18 (2)4 to 5 (2)1 to 4 (3)

RLG-Macy's


Kohl’s

State Stores State Stores State StoresIL 48 VA 18 NH 6CA 47 MA 17 SC 5TX 45 CO 16 NE 4OH 39 AZ 15 AL 3WI 35 CT 14 DE 3MI 33 MD 12 NV 3PA 30 MO 12 RI 2NJ 29 TN 10 WV 2IN 25 IA 8 MS 1NY 25 KS 7 ND 1MN 23 KY 7 SD 1GA 18 OK 7 VT 1NC 18 AR 6

Major Presence: IL, CA, TX, OH, WI, MI, PA, NJ, IN, NY, MN, GA, NC, VA, MA, CO, AZ, CT, MD, MO, TN, IA, KS, KY, OKPrimary Conferences: All

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29 to 48 (8)16 to 29 (8)8 to 16 (6)4 to 8 (7)1 to 4 (9)

Kohl's


Famous-Barr, LS Ayres, Jones (May)

State StoresMO 16IN 13IL 7KS 4KY 2

Major Presence: MO, IN, ILPrimary Conferences: Big 10, MAC, Big 12 (Missouri)

32

16 to 16 (1)13 to 16 (1)7 to 13 (1)4 to 7 (1)2 to 4 (1)

Famous-Barr Group


Filene’s/Kaufmann’s (May)

State StoresOH 23MA 21NY 20PA 17CT 10NH 4ME 2RI 2VT 1WV 1

Major Presence: OH, MA, NY, PA, CTPrimary Conferences: Big 10 (Ohio State, Penn State), Big East, MAC

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21 to 23 (2)17 to 21 (2)4 to 17 (2)2 to 4 (2)1 to 2 (2)

Filene's/Kaufmann's


Foley’s (May)

State StoresTX 47CO 11OK 5LA 4NM 2

Major Presence: TX, COPrimary Conferences: Big 12, Mountain West, Conference USA

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47 to 47 (1)11 to 47 (1)5 to 11 (1)4 to 5 (1)2 to 4 (1)

Foley's


Hecht’s/Strawbridge’s (May)

State StoresMD 20VA 20PA 15NC 12NJ 5TN 5DE 3DC 1

Major Presence: MD, VA, PA, NCPrimary Conferences: ACC, Big 10 (Penn State), Conference USA (East Carolina), Big East (Pittsburgh)

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20 to 20 (2)12 to 20 (2)5 to 12 (2)1 to 5 (2)

Hecht's/Strawbridge's


Lord & Taylor (May)

State StoresNJ 12NY 10IL 5

MA 5CT 4MD 4VA 4MI 3PA 3MO 2DE 1DC 1

Major Presence: NY, NJPrimary Conferences: Big East

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12 to 12 (1)10 to 12 (1)5 to 10 (2)3 to 5 (5)1 to 3 (3)

Lord & Taylor


Marshall Field’s (May)

State StoresMI 21IL 17

MN 12WI 5ND 3IN 2OH 1SD 1

Major Presence: MI, IL, MNPrimary Conferences: Big 10, MAC

37

21 to 21 (1)17 to 21 (1)5 to 17 (2)2 to 5 (2)1 to 2 (2)

Marshall Field's


Robinsons-May, Meier & Frank (May)

State StoresCA 46AZ 9UT 8OR 7NE 2WA 1

Major Presence: CA, AZ, UT, ORPrimary Conferences: Pac-10, WAC, Mountain West

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46 to 46 (1)9 to 46 (1)8 to 9 (1)7 to 8 (1)1 to 7 (2)

Robinsons-May Group


Nordstrom

State Stores State StoresCA 28 NV 1WA 8 CT 1FL 5 NC 1VA 5 PA 1TX 5 RI 1OR 5 IN 1MD 4 KS 1NJ 4 MI 1IL 4 MN 1UT 3 MO 1AZ 2 OH 1NY 2 AK 1CO 2

Major Presence: CA, WAPrimary Conferences: Pac-10, WAC

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5 to 28 (6)4 to 5 (3)3 to 4 (1)2 to 3 (3)1 to 2 (12)

Nordstrom


Bergner’s (Saks)

14 stores in Illinois

Major Presence: ILPrimary Conferences: Big 10

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Boston (Saks)

8 stores in Wisconsin

Major Presence: WIPrimary Conferences: Big 10

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Carson Pirie Scott (Saks)

28 stores in Illinois, and 3 stores in Indiana

Major Presence: ILPrimary Conferences: Big 10

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Herberger’s (Saks)

State StoresMN 16MT 6NE 5ND 4SD 3WI 3CO 1IA 1

WY 1

Major Presence: MNPrimary Conferences: Big 10

43

6 to 16 (2)5 to 6 (1)4 to 5 (1)3 to 4 (2)1 to 3 (3)

Herberger's


McRae’s (Saks)

State StoresMS 15AL 9FL 2LA 2

Major Presence: MS, ALPrimary Conferences: SEC, Conference USA

44

15 to 15 (1)9 to 15 (1)2 to 9 (2)

McRae's


Parisian (Saks)

State StoresAL 15GA 9FL 5SC 3TN 3IN 2MI 2OH 2MS 1

Major Presence: AL, GA, FLPrimary Conferences: SEC, ACC, Conference USA

45

15 to 15 (1)9 to 15 (1)5 to 9 (1)3 to 5 (2)1 to 3 (4)

Parisian


Proffitt’s (Saks)

State StoresTN 12NC 5GA 2KY 2SC 2WV 2VA 1

Major Presence: TN, NCPrimary Conferences: SEC, ACC, Conference USA

46

12 to 12 (1)5 to 12 (1)1 to 5 (5)

Proffitt's


Younkers (Saks)

State StoresIA 19WI 13MI 9NE 5MN 2IL 1SD 1

Major Presence: IA, WI, MIPrimary Conferences: Big 10, Big 12 (Iowa State)

47

19 to 19 (1)13 to 19 (1)9 to 13 (1)2 to 9 (2)1 to 2 (2)

Younkers


Von Maur

State StoresIL 6IA 6IN 3MI 2NE 2KS 1KY 1MN 1

Major Presence: IL, IAPrimary Conferences: Big 10, Big 12 (Iowa State)

48

6 to 6 (2)3 to 6 (1)2 to 3 (2)1 to 2 (3)

Von Maur


Goody’s

State Stores State StoresGA 50 OH 12NC 46 OK 12TN 44 MS 9AL 34 MO 8KY 28 WV 8SC 20 FL 6TX 17 IL 6AR 15 LA 6VA 14 IA 1

Major Presence: GA, NC, TN, AL, KY, SC, TX, AR, VAPrimary Conferences: SEC, ACC, Big 12, Conference USA, Sun Belt Conference

49

34 to 50 (4)17 to 34 (3)14 to 17 (2)8 to 14 (5)1 to 8 (4)

Goody's


Stage/Bealls/Palais Royal (Stage)

State StoresTX 226LA 48OK 34NM 19AR 16MO 11MS 6KS 5AZ 3FL 2AL 1CO 1IA 1

Major Presence: TX, LA, OK, NM, AR, MOPrimary Conferences: SEC, Big 12, Conference USA, Sun Belt Conference

50

48 to 226 (2)19 to 48 (2)6 to 19 (3)2 to 6 (3)1 to 2 (3)

Stage/Bealls/Palais Royal


Peebles (Stage)

State Stores State StoresVA 33 SC 5OH 16 NY 4NC 13 MS 4TN 13 NJ 3KY 11 DE 3PA 9 IN 3AL 8 IL 2MD 7 MO 1WV 7

Major Presence: VA, OH, NC, TN, KY, PA, ALPrimary Conferences: SEC, ACC, Big 10, Big East (Pitt), MAC, Conference USA, Sun Belt Conference

51

13 to 33 (4)8 to 13 (3)5 to 8 (3)4 to 5 (2)1 to 4 (5)

Peebles


Buy Buy Baby

State StoresNY 4NJ 2MD 1

Major Presence: NY, NJPrimary Conferences: Big East, service academies (Army, Navy)

52

4 to 4 (1)2 to 4 (1)1 to 2 (1)

Buy Buy Baby


B. C. Moore & Sons

State StoresSC 30GA 20NC 11AL 9

Major Presence: SC, GA, NC, ALPrimary Conferences: SEC, ACC, Conference USA

53

30 to 30 (1)20 to 30 (1)11 to 20 (1)9 to 11 (1)

B.C. Moore


LICENSING PROCESS CONDITIONS AND RESTRICTIONS

1. LRG does not impose limits on distribution channels. CLC does; we are currently licensed for “Mid-Tier/Better”, which includes all channels of distribution except for mass merchants (discount and grocery), online/catalog, and campus bookstores and gift shops. We have applications pending for campus and online/catalog distribution.

2. As a practical matter, we cannot sell second quality goods.3. We cannot sell CLC institution goods through the outlet store or other offline retail

storefront of ours without a special license.4. Goods sold directly to the consumer (e.g., online/catalog) are assessed royalties on

the retail price.5. LRG and many of the independently licensed institutions charge an annual fee for

each institution licensed. LRG’s fee is $60 per institution, except for Texas A&M which is $260.

6. CLC requires concept approval by most of its institutions for new institution requests. LRG does not.

7. Both CLC and LRG require approval of new products prior to submitting new product artwork to currently licensed institutions.

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ADDITIONAL RETAIL ACCOUNTS AND OTHER CHANNELS OF DISTRIBUTION

Additionally, as regional business is established with larger department store accounts and the appropriate licenses are obtained, smaller accounts in those regions can be targeted for business. These smaller accounts include the following types of retailers beyond Alexis PlaySafe’s existing customer base.

Note that LRG does not impose limits on distribution channels. CLC does; we are currently licensed for “Mid-Tier/Better”, which includes all channels of distribution except for mass merchants (discount and grocery), online/catalog, campus bookstores and gift shops, and campus and alumni organizations. We have applications pending for both campus/local and online/catalog distribution.

• College Bookstores (both on- and off-campus)• College Gift Shops (both on- and off-campus)• College Sporting Event Concessions (primarily football and basketball)• Campus Student Organizations

• Fraternities and Sororities• Philanthropic Organizations • Spirit Clubs

• College Alumni Associations• Some alumni associations, such as the University of Georgia Alumni Association,

will highlight licensed product manufactured by companies associated with that institution’s alumni

• Some alumni associations have “Baby Clubs” for children of alumni, providing a collection of baby-related premiums (bibs, hats, plush, baby bags, rattles, sippy cups, hooded towels, coin banks, etc.) in exchange for a membership fee—opportunity to provide premiums for the club or even sponsor the club

• Gift Shops specializing in collegiate items from a variety of institutions• Broad-line Gift Shops (e.g., Cracker Barrel)• Sporting Goods Retailers• Card and Stationery Shops (e.g., Hallmark)• T-shirt/Casual Apparel Shops specializing in logo/licensed items• Theme Park Gift and Apparel Shops• Hotel Gift Shops

Other channels of promotion and distribution include:

• alexisplaysafe.com Website • Wholesale/B2B• Retail/B2C

• Trade Shows (Wholesale/Buyer)

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• Atlanta Gift Market (held periodically throughout the year at the Atlanta Merchandise Mart)

• The Gift Fair in Atlanta (GWCC, January and July)• The Super Show (sporting goods and allied apparel, Orlando, January)• MAGIC• Licensing International Expo• Other Gift Shows (numerous)

• B2B Web-based Channels• The Collegiate Exchange (hosted by CLC)• DesktopExpos Sporting Goods and Apparel Expo

• Specialty Catalogs• University Bookstore Catalogs• Alumni Association Catalogs

• eBay• Direct Mail to Alumni Association Mailing List• Alumni Publications Advertisements, Inserts, and Offers• Athletic Conference Websites

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FUTURE LICENSED PRODUCT BUSINESS GROWTH

One advantage of collegiate licensing is that the college alumni and fan base tends to be very loyal. Other licensable properties include the following:

• National Association of Stock Car Automobile Racing (NASCAR) – • Fans tend to be very loyal, although loyalty is to individual drivers and not teams,

and as a result the fan base for a particular driver can “disappear” if a driver retires or otherwise leaves the sport. Problems can also arise if a driver changes teams or cars.

• Properties have to be licensed from each team individually; NASCAR is not involved in this process.

• Team sponsors can change annually; high rate of obsolescence if product design is not carefully planned to avoid depicting names and logos of team sponsors. Some sponsors (e.g., beer, certain pharmaceuticals) may not be appropriate for children’s products, and those sponsors may refuse to allow their logos or names to be depicted on children’s products, even if normally depicted on a team’s car or uniform.

• National Football League (NFL) – • Some teams have large, loyal fan bases, some do not. In general, NFL fans tend

to be more fickle and “fair-weather” than college alumni and fans.• Most teams are licensed through NFL Properties; some (e.g., Dallas Cowboys) are

not.• Major League Baseball (MLB) – Similar to NFL. Major League Baseball also

licenses the properties of minor league teams. Names and likenesses of players are licensed separately through the Major League Baseball Player’s Association (MLBPA).

• National Basketball Association (NBA), National Hockey League (NHL) – Less fan interest than other professional sports.

• Collegiate “Hot Markets” – Bowl games, rivalry games, championships. Interest in these themes for our products likely to be limited.

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Documents

old COLLEGIATE PRODUCTS