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Exhibit 10.41
Xxxx Xxx Entertainment Inc.
00000 Xxxxxxx Xxxx., Xxxxx 000
Xxxxxx, XX 00000
October 15, 1998
Mr. Xxxx Xxx
0000 Xxxxxx Xxx
Xxx Xxxxxxx, XX 00000
Re: Employment Agreement/Rights Assignment
Dear Xxxx:
Confirming our discussions, this letter, when accepted and agreed by you, shall
constitute an agreement-between you and Xxxx Xxx Entertainment, Inc. (the
"Company") relating to the terms of your employment with the Company as set
forth below:
1. Xxxx Xxx will serve as Chairman and Chief Creative Officer of Company,
based in Los Angeles, for a term commencing as of the date hereof and
terminating on the death of Xxxx Xxx.
2. Xxxx Xxx'x services shall be exclusive with the exception of those
services provided under a lifetime agreement with Marvel Enterprises,
Inc., which shall require no more than an average of 10 - 15 hours per
week on its behalf. All other services performed and intellectual
property created for the Company, or for any other entity, which entity
shall be approved in writing by the Company, shall inure to the benefit
of the Company to the entire extent your participation provides. Your
services to Company shall include, but not be limited to, the following:
(a) Serve, and be listed in all directories and publications, as
Chairman, Publisher and Chief Creative Officer of the Company,
including attending corporate meetings, developing and
supervising development and production of intellectual property
in any and all media, directing and guiding the creative staff
or staffs of the Company, all subsidiaries and affiliates as
reasonably requested by the company.
(b) Act as Executive Producer or Co-Executive Producer for all media
productions and receive customary fees accordingly.
(c) Apply your good faith, best efforts to enhance the brand and
good will of the company, support and stimulate strategic
alliances, joint ventures, sponsors, production partners and all
direct and ancillary business of the company.
(d) Serve as spokesman for the company to all media and assemblies
as reasonably requested by the company.
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(e) Take all actions and contribute all creative talents within your
reasonable capability, pursuant to your good faith determination
of your schedule, as may reasonably be required to advance the
interests of the company.
3. As compensation to you for all rights and services contributed by you,
to the Company hereunder, notwithstanding any disability, the Company
agrees to provide the following compensation for your life:
a) Base Salary - You shall receive a base salary of $250,000 (Two
Hundred Fifty Thousand Dollars) per annum payable in equal
monthly installments commencing February 1, 1999, payable to you
or any company you so designate in lieu of making payments to
you individually.
b) Bonuses - You shall receive bonuses on those projects you
personally initiate and/or accomplish with approved entities
from your participation as assigned to the company. You shall
also receive ten per cent of all net profits after taxes
reported by the Company on its Federal Tax Return. The Company
will compute, account and pay to you your participation due, if
any, on account of said profits, for the annual period ending
each January 31 during your life, on an annual basis within a
reasonable time after the end of each such period.
c) Stock Options - The Company agrees to issue to you, in
accordance with the Company's Stock Option Plan, as and when it
may be adopted, the highest number of options offered to Company
executives.
d) Expenses/Fringe Benefits - 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, and
you shall be permitted your customary style of business travel,
which shall be first class with sedan limousine and stay in
deluxe hotels.
e) Insurance - The company shall no later than December 31, 1998,
secure a term life insurance policy in the minimum principal sum
of two million dollars, providing your designated heir as
co-beneficiary with the company on the event of your death.
4. In express consideration for the performance of the foregoing
obligations of the Company, you agree as follows:
a) I assign, convey and grant to the Company forever, all right,
title and interest I may have or control, now or in the future,
in the following: Any and all ideas, names, titles, characters,
symbols, logos, designs, likenesses, visual representations,
artwork, stories, plots, scripts, episodes, literary property,
and the conceptual universe related thereto, including my name
and likeness (the "Property") which will or have been in whole
or part disclosed in writing to, published, merchandised,
advertised, and/or licensed by Company, its affiliates and
successors in interest and licensees (which by agreement inures
to Company's benefit) or any of them and any copyrights,
trademarks, statutory rights, common
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law, goodwill, moral rights and any other rights whatsoever in
the Property in any and all media and/or fields, including all
rights to renewal or extensions of copyright and make
applications or institute suits therefor (the "Rights").
b) Subject to a material breach of this agreement, I hereby agree
to execute upon request from Company any documents it deems
reasonably necessary to effect the purposes of this agreement,
c) Subject to a material breach of this agreement, I will never
file with the U.S. Copyright or Patent and Trademark Office or
any governmental or public agency, and will never assert or
assist others in asserting on my behalf or in claiming rights
through me, any claim to ownership of the Rights in the
Property, or in making any objection to Company's complete and
unrestricted right to use and exploit said Property or Rights in
any form, manner or medium Company may desire.
5. 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, heirs
and assigns.
6. 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 advantages of any
other provision of this Agreement.
7. This Agreement will constitute the entire understanding between the
parties in connection with Xxxx Xxx'x relationship with the Company from
the date hereof and may not be amended or modified except by a writing
signed by the party charged. This agreement shall be governed by and
construed under the laws of the State of California.
Signed at Los Angeles, California, this 20 day of October, 1998.
Xxxx Xxx Entertainment, Inc.
By: /s/ XXXXXXX X. XXXXXX
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President
/s/ XXXX XXX
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Xxxx Xxx
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