Exhibit 10.1
MARVEL ENTERPRISES, INC.
000 XXXXX XXXXXX
XXX XXXX, XXX XXXX 00000
As of November 1, 1998
Mr. Xxxx Xxx
0000 Xxxxxx Xxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Re: Employment Agreement
Dear Xxxx:
Confirming the various discussions between your attorney Xxxxxx
Xxxxxxxxx and Xxxx Xxxxxx of Marvel, this letter when accepted and agreed to by
you constitutes an agreement between you and Marvel Enterprises, Inc. ("the
Company"), the parent company of Marvel Characters, Inc. ("Marvel"), represented
by us to be the survivor after bankruptcy of Marvel Entertainment Group, Inc.
1. You will serve as an employee of Company, or one of its affiliates as may
be designated by the Company, based in Los Angeles for a term commencing as
of the date hereof and terminating on your death. Notwithstanding such
death, the compensation provided for in Section 4 hereof shall continue
until the last to occur of (i) your death (ii) the death of your present
wife, Xxxx Xxx (provided that she is still your wife upon your death) or
(iii) five years after the death of both you and Xxxx Xxx, provided that
your daughter Xxxx X. Xxx survives both of you.
2. Your services shall be non-exclusive but your work for Marvel shall be on a
preferential basis. You shall not, however, be required to put in more time
on Marvel's behalf than you have averaged in the last two years, which
shall be approximately 10-15 hours per week. Any time in excess of that
shall be at your option but without additional compensation. It is agreed
that you can engage in and be compensated for any activities outside those
performed for the Company or Marvel including activities that are
competitive to those of the company or its affiliates, so long as that
competition does not violate any of the intellectual property or other
rights of the Company or Marvel or result from the unauthorized disclosure
of the Company's proprietary or confidential information, if you are so
advised of the proprietary or confidential nature of such information (at
the time of disclosure) in writing. Your services to Marvel will consist of
the following:
(a) Serve generally as a spokesman for Marvel, including giving speeches
and interviews and visiting conventions on Marvel's behalf, as Marvel
may from time to time reasonably request;
(b) Conferring on a regular basis with the creative staff at Marvel's
various operations, guiding and advising the editorial and art
personnel and the like in existing Marvel characters; and
(c) Work with motion picture and television producers and distributors to
stimulate their licensing of Marvel characters and supervise movie and
television projects of Marvel Characters on Marvel's behalf and be
named executive producer or co-executive producer of such productions.
3. You will continue to serve as Publisher of Marvel Comics and your name and
likeness shall be non-exclusively licensed to Marvel in the manner it has
traditionally appeared on Marvel Comics as more specifically provided for
in paragraph 5 below. At your option, Marvel shall name you as Chairman
Emeritus of the movie or television company as listed in the Hollywood
Creative Directory and/or Publisher or Publisher Emeritus of Marvel Comics,
a division of the Company.
4. As compensation to you for your life notwithstanding any disability, Xxxx
Xxx, your current wife, and Xxxx X. Xxx, your daughter, the Company agrees
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to provide the following compensation:
(a) Base Salary
(i) from the date hereof, through October 31, 2002, you are to be
paid a base salary (the "Base Salary") of $810,000 per year;
(ii) from November 1, 2000 through October 31, 2001 the Base Salary
shall be $850,000;
(iii)from November 1, 2001 through October 31, 2002, the Base Salary
shall be $900,000; and
(iv) from November 1, 2002 until death the Base Salary shall be $1.0
million dollars.
All amounts of Base Salary shall be paid in accordance with customary
payroll policy on a biweekly or semi-monthly basis. You may elect to have all or
any portion of the Base Salary paid to S.L. Productions or any company you so
designate in lieu of making the payments to you individually.
(b) Survivor Payments
(i) Upon your death, your current wife Xxxx Xxx (provided she is your
wife at the time of your death) shall be entitled to receive, for
the balance of her life, an amount equal to 50% of the Base
Salary in effect on the date of your death. Such amounts to be
paid in accordance with customary payroll policy as provided in
paragraph (a) above.
(ii) Upon your death and Xxxx Xxx'x, Xxxx X. Xxx, your daughter, shall
be entitled to receive, for a period of five years, the sum of
$100,000 (payable in accordance with customary Marvel payroll
practices) provided that Xxxx X. Xxx does not predecease either
you or your wife Xxxx Xxx. In such case, no amounts would be due
by the Company.
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(c) Stock Options
(1)The Company agrees to issue to you, in accordance with the
Company's 1995 Stock Option Plan (the "Plan"), a total of 150,000
options to purchase shares of the Company's common stock. Such
options shall be, if possible be within the employee plan and are,
granted as follows: (I) 100,000 options shall be granted at a price
equal to the market bid price as of the date of grant, such grant to
be made as promptly as practicable following execution on this
Letter Agreement, but not later than November 20, 1998; (II) 25,000
options shall be granted not later than the first anniversary of the
execution of this Letter Agreement at a price then equal to the
market bid price and (III) 25,000 options shall be granted at a
price then equal to the market bid price not later than the second
anniversary of the execution of this Letter Agreement, each of the
above options to vest in the year of granting and be for five years
from date of issuance.
(d) Set-Off
If, after November 1, 2002, you personally receive, or any
company wholly owned or wholly controlled by you receives revenue from
competing business activities, then the Company shall be entitled to
set-off from the amounts due as Base Salary hereunder an amount equal
to 25% of such competing business revenue (before deduction of expenses
and on a pre-tax basis) to a maximum of $190,000 in any contract year
(i.e., November 1, through October 31). You agree each year after
November 1, 2002 to furnish a certified accountant's statement (with
appropriate support) to the Company detailing the computation of said
Set-Off. Where the maximum set-off of $190,000 is being permitted a
simple statement shall be sufficient.
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(e) Expenses/Fringe Benefits
(i) You are to receive prompt reimbursement for all ordinary and
necessary business expenses incurred by you in connection with
your activities on behalf of the Company upon presentation of
appropriate documentation (included expenses shall be a cell
phone) in accordance with Company policy, except that you shall
be permitted your customary style of business travel (which shall
be first class with limousine and stay in luxury hotels).
(ii) You also continue to have the benefit of a single full-time
assistant. (f) In addition, you shall be paid participation equal
to 10% of the profits derived during your life by Marvel
(including subsidiaries and affiliates) from the profits of any
live action or animation television or movie (including ancillary
rights) productions utilizing Marvel characters. This
participation is not to be derived from the fee charged by Marvel
for the licensing of the product or of the characters for
merchandise or otherwise. Marvel will compute, account and pay to
you your participation due, if any, on account of said profits,
for the annual period ending each March 31 during your life, on
an annual basis within a reasonable time after the end of each
such period.
(g) You will have the right to continue to author the syndicated newspaper
comic strip "Spider Man" and receive the same extra compensation
therefrom that you have been receiving, to wit, $125,000 annually
pursuant to your agreement with Marvel. All such comic strips shall
continue to be published as is done in the current circumstances.
5. Subject to paragraph 5(f) below, in express consideration for and expressly
dependent upon the faithful performance of the foregoing obligations of
Marvel, you, Xxxx Xxx, residing at 0000 Xxxxxx Xxx, Xxx Xxxxxxx, Xxxxxxxxxx
00000, agree as follows:
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(a) Except for your name, likeness and the integration of either your name
or likeness with a specific phrase, such as "Stan's Soap Box", "Xxxx
Xxx presents", and except for the term "Excelsior," (as to which
Marvel shall have non-exclusive rights of use, in accordance with the
terms hereof, the "Non-Exclusive Rights"), you hereby assign, convey
and grant (without representations or warranties of any kind except as
set forth herein) to Marvel forever throughout the universe all right,
title and interest solely and exclusively which you may have or
control or which you may have had or controlled in the following: Any
and all ideas, names, titles, characters, symbols, logos, designs,
likenesses, visual representations, artwork, stories, plots, scripts,
comic books or comic strips, episodes, literary property, and the
conceptual universe related thereto which will or have been in whole
or in part disclosed in writing to, published, merchandised,
advertised, and/or licensed by Marvel, its affiliates or their
predecessors and successors in interest and licensees (which by
agreement inures to Marvel's benefit) or any of them (the "Property")
and any copyrights, trademarks, statutory rights, common law,
goodwill, moral rights and any other rights whatsoever in the Property
in any and all manner and media and/or fields, including all rights to
renewal or extensions of copyright or trademarks and to recover for
past infringement and make application or institute suits therefor
(the "Rights"). With respect to the Non-Exclusive Rights, the
foregoing rights of Marvel shall extend solely to the uses heretofore
utilized by Marvel; changes thereto may be made with your permission.
Such prior uses may continue in perpetuity. Specifically excepted from
above, you have represented that you have been receiving royalties on
a number of publications to Marvel's knowledge directly from
third-party publishers. Specifically excepted from the above is the
right during your life to continue receiving such royalties unimpeded.
You have also represented that Marvel has heretofore assigned to you
the character(s) The Femizons. You may continue forever in perpetuity
to so own and exploit the Femizons character(s) for your own benefit.
Notwithstanding what is set forth herein, you may, for publicity,
advertising, public relation, historical and any related purposes (but
excluding any use coupled o commercial usage) refer to or hold
yourself out as founder and/or creator of whatever characters and
images you created or founded on behalf of Marvel, provided such uses
do not confuse ownership or source of origin. Such image uses may not
be story-related, must be substantially identical to prior Marvel uses
and must give full attribution of trademark and copyright to Marvel
and the use of he images must be substantially minor in context.
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(b) You hereby warrant that you have not assigned, licensed, pledged or
otherwise hypothecated, nor attempted to do so any of the Property and
Rights to anyone other than Marvel, its affiliates, predecessors or
their designees and will not do so in the future.
(c) Subject to a material breach of this agreement, you hereby agree to
execute upon request. from Marvel any documents it deems reasonably
necessary to effect the purposes of this assignment.
(d) Subject to a material breach of this agreement, you will never file
with the U.S. Copyright Office or the U.S. Patent and Trademark Office
or any governmental or public agency throughout the world, and will
never assert or assist on your behalf or cooperate with others in
asserting on your behalf or in claiming rights through you, any claim
to ownership (except to Non-Exclusive Rights, subject to Marvel's
license) of the Rights in the Property, or in making any objection to
Marvel's complete and unrestricted right to use and exploit said
Property or Rights throughout the world in any form, manner or medium
Marvel may desire now or hereafter known or devised.
(e) Subject to a material breach of this agreement, you agree not to
contest either directly or indirectly the full and complete ownership
by Marvel, its affiliates, designees, or successors in interest, of
all right, title and interest in and to the Property and Rights or the
validity of the Rights, which may be conferred on Marvel by this
Agreement, or to assist others in so doing. Examples of such
prohibited contestation would be, without limitation, applying for
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copyright, renewal copyright, trademarks, service marks, patents, etc.
for the Property and/or Rights herein specified or the publication by
you or your assigns or agents of literary property which would
infringe upon, violate or be confusingly similar to such Property
and/or Rights.
(f) It is agreed that the failure to pay pursuant to Paragraphs 4(a)--4(c)
hereof for any reason, after notice and a thirty (30) day cure period,
shall be a material breach which shall permit you at your option to
vitiate Paragraphs 5(a)--(5(e) (the Assignment) above and place the
parties to the "Assignment" in the condition that existed between them
just prior to the date of execution of this Agreement and nothing
contained herein, including the existence of the conveyances contained
herein, shall be used as evidence in any subsequent proceeding nor
shall it prevent the parties from taking any position with respect to
the ownership of the Property or the Rights. It is further agreed that
as to all other breaches of this agreement, you shall be relegated
exclusively to a suit for either specific performance or money damages
or both, if appropriate, at your option.
(g) It is acknowledged and agreed that so long as the Company continues to
make the payments required in paragraphs 4(a) - 4(c) and upon full
payment of the amounts required by Paragraphs 4(a) - 4(c) none of the
heirs, executors, estates, or other successors-in-interest of any of
Xxxx Xxx, Xxxx Xxx, or Xxxx X. Xxx shall be entitled to make any claim
for payments under Paragraphs 4(a) - 4(c) and neither Xxxx Xxx nor
Xxxx X. Xxx shall have the right to contest, challenge or otherwise
dispute the grant of Rights in the Property (or Assignment) hereunder
or the rights to the Non-Exclusive Rights.
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6. This Agreement, including the assignment set forth herein, shall be binding
upon the parties hereto, their affiliates and subsidiaries, legal
representatives, successors and predecessors in interest, and assigns.
7. The invalidity of any provision or part hereof or obligation hereunder, or
the contravention thereby of any law, rule or regulation of any State, the
Federal Government or any agency, shall not relieve any party from its
obligation under, nor deprive any party of the advantages of, any other
provision or part of this Agreement.
8. Other Provisions. This Agreement will constitute the entire understanding
between the parties in connection with Xxxx Xxx'x relationship with Marvel
from the date hereof, shall supersede any and all previous agreements and
may not be amended or modified except by a writing signed by the party to
be charged. This agreement will be governed by and construed in accordance
with the laws of the State of New York, N.Y. jurisdiction. All notices to
Marvel shall be given by you at the above address and all notices to you
shall be given to you at 0000 Xxxxxx Xxx, Xxx Xxxxxxx, Xxxxxxxxxx 00000,
with a copy to Xxxxxx X. Xxxxxxxxx at 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, or to such substitute address as a party otherwise designates in
writing.
9. Marvel and the Company agree to submit this agreement together with
appropriate supporting papers to the court overseeing Marvel's bankruptcy
prior to November 25th, 1998 and to obtain court's approval of this
agreement prior to December 5th , 1998. Should the court fail to act on
this agreement, it shall be binding between the parties. Should the court
disapprove this agreement, then paragraph 5(f) shall control and place the
parties in the condition that existed between them just prior to the date
of execution of this agreement.
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10. The Company agrees to pay your reasonable legal fees and expenses in
connection with the negotiation of this agreement. Signed at Los Angeles,
California this 17th day of November, 1998.
/s/ Xxxx Xxx
----------------------
Xxxx Xxx
Signed at New York, New York this day of November, 1998
For good and valuable consideration, the receipt and sufficiency of which I
hereby acknowledge, Xxxx Xxx and Xxxx X. Xxx hereby confirm their agreement to
the foregoing insofar as it concerns the present or future contingent rights in
the foregoing including, but not limited to any renewals or extensions to which
they or either of them are entitled after the death of Xxxx Xxx or Xxxx Xxx.
/s/ Xxxx Xxx
----------------------
Xxxx Xxx
/s/ Xxxx X. Xxx
----------------------
Xxxx X. Xxx
Signed at New York, New York this day of November, 1998
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