the point of view of business PARALLEL IMPORTS AND TRADEMARK PROTECTION Protecting distribution networks against parallel imports: the point of view of business 12 June 2010 Veerle Bouckaert Licensing Administration & Legal Affairs

quoted on the Italian Stock Exchange BasicNet S.p.A. headquarters in Turin quoted on the Italian Stock Exchange www.basic.net The BasicNet Group is a major participant in the sector of branded leisurewear and sportswear, footwear and accessories

THE TRADEMARKS

LICENSING LICENSING FOR DISTRIBUTION LICENSING FOR SOURCING

LICENSING FOR DISTRIBUTION (LICENSEES) DISTRIBUTION AND LICENSE AGREEMENT licence of right to use the trademarks license of right to use the know-how

LICENSEES TRADEMARKS right to use certain trademarks for certain products to be sold in certain countries limited to the Channel of Distribution KNOW-HOW a package of substantial practical information resulting from experience and testing and constantly developed by the BasicNet Group and relevant for the proper use of the trademarks: - design, production specification and sourcing of the products, - presentation and sale of the products, - marketing communication and customer management, - administration, logistic and financial management. EXCLUSIVENESS

LICENSING FOR SOURCING (SOURCING CENTERS) SOURCING AGREEMENT Right to use certain trademarks for manufacturing certain products to be sold to the licensees appointed by the BasicNet Group

SALES REPORTS and AUDITING INFORMATION FLOW SALES REPORTS and AUDITING LICENSEES: Sales and royalty reports Information on stocks Information on customers Yearly Financial Statements Annual certification of the Net Turnover Right to audit the accounts of the licensees SOURCING CENTERS: Ordering process by the licensees through the website Sales and sourcing commission reports

NOTIFICATION OF PARALLEL IMPORTATION LICENSEES CUSTOMS JUDICIARY POLICE LOCAL ENTITIES and INTERNATIONAL ORGANIZATIONS

ORIGIN OF PARALLEL IMPORTATION LICENSEES International Distribution Networks Stock Internet SOURCING CENTERS Cancelled orders Overproduction Seconds

LICENSEES & SOURCING CENTERS PREVENTION LICENSEES & SOURCING CENTERS contractual terms limitation of the local production limitation of licensor’s liability limitation of the sources pricing monitoring of purchases and sales identification of the source CUSTOMS CONTROL authorised manufacturers, importers, distributors information on products and product identification

REMEDIES CONTRACTUAL TERMS CO-OPERATION AMONG THE LICENSEES OF THE NETWORK CO-OPERATION LICENSEES AND THE RETAILERS