october 19, 2001 letter from the siegels to dc comics

8/20/2019 October 19, 2001 Letter From the Siegels to DC Comics

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This is co co^f^m^ ow [elephoê conversaüon of October 9, 2001. The Siegel Family

(tluough Joa^me Síegel and L,au^ Sie$eî Larson, the majoríry owners of the térmiâted copy

ght

interests} has accepted D.C. Gömícs offer of October I6, 200I ín espe

α

t of the "Supe^âå' and

"Spectre" properties. The ê^ns are as follows:

A

"Supernr^^/Spectê Gross Revenues" means DC Comícs' worldwide gross

revenues de^íved from the Property, éxdudíng only revenues de

ved from

D.C. Comic`s pubticatío^s.

L

B

236 72.

o 'tia s.

1 .

"The Property" means all Superman, 5uperboy and related pôpeeties

(ínctudíng, for example, Superg^íl, Steol, Lois & Ci^k and Smaltvílle),

and the Spectre property, and ^^cludes all pre- and post-ê^níâtô^ works

(inciudíng e so-called 5upec

ι

a

library), e

aracce

s, names a

d

hadem^ks reIatíng to the Property.

Fi

angial Te

s.

1 .

Anon-returnable, bait êco^pable advance of $2,000,000.

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CÂNCw, TYRE, '

F{AMER & ORVWN, INC.

John A. Scûtman,

Esq.

êtober19,2aa1

2:

A ao

-remmable, non-recoupabl

sígní

g b

nus of t,000,000.

3.

D.C. Comics wí11 forgív^ the 5250,000 advance from last ê^-stated

adêrwïsc, that payment will gat r^dusé the adva^s^ arboûs, narshall it

b^ recoupable {co^kary tö Paragraph 3 of the January 12, 2001 løtter

agrceme^t}.

4.

Thera will be an aûal guarantee of $500,040 der year payable for 10

yeazs beginning March 31, 2002. 'The anûai g^âta^te^ is recoupable

from royalty payments (under S and

beinw}. Tie aûal guarantee is

paid Mars

31" of each

yeaz If at the end of the aûai guarantee pe

od

(í:e., LO' years}, D.C. s unêcouped, the aûal guarantee will b^ reduced

t^ $I00,000 or 2S% of the avaâge royalties for tlê previous three yeas

(resamputed cash year}, wtîchwe^ ïs greater (for so long as D.C. is

^nrecouped}. If D.C. is êco^^ped, tê^ the aûat guarantee will be 7S%

of tie averago royalties for the previous three

years whíc

ís recor^tputed

each year.

5.

A ^óyatty of

°

of Supernân/Spectre Gross Revenues. Tis applies

(without limitation} to the

use of the entire Property, including the so-called

Superman îíhâry , í^ any and all media now o^ úereafter kôw^ (excluding

DC Camícs

pubücatí^^s

},

í^ öron mers a díse and ín promotions

campaigns. Tåis ^^yalry applies whey the Property ís used atone or ís

lísensed for matio^ pí^mré and t^levisían pro¡

é

s iø accocda

ee with the

"safe

Ø^^^"

motion picture and television deals discussed ^n Pazagraph

C(IO}, Thís

% roy^hy witl be adjusted pro-rata

he^ the P^pe^ty ís used

íu co^ju^ctío^ with ^têr baoh characters (other than ín a "cameo" type of

appearance), buy in no event less tha^.3°1° ex

tat theôâlty çan ê

fu^tlser reduced to {a) I.S° ° in the,case of Justice League of Aine

sa,

"Superf

ends'" and "Superhems" me^^han^íse aid iícensïng, and (b} 1°lo i^

e^tâordînary

cases

suc as D.C. ComícslWam^r

Bros. overall lícensa to

Six Fiags (wi^ích involves numemús characters, í^cludíag D.C. Comíe's

characters a

α

d Looney Tonnes characters}'.

^. A ôâlty of 2°^ó of the cover p

ce of DC Co^^cs'

publications. Tits

^

This redueüon would nit apply ô a license fora "Supe^mari

'specific

ride

o^ atØction.

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GTRB 0303



royalty applies when the Property ís used alone

, and will be adjusted p -

rata when the P^pe^ty ís used ín co^junc^íon with other comic book

chawcters (

o^tlêr than í^ a "cornea" type of appeaânc^

), but ïn ô event

less than O.5%.

Receupment

6egíus as

ofJan

ι ι

ary i, ?A06.

8.

Du

^g thø first calendar yeør ín which advancestguara^teed payments are

made there sØ11 be ô interest

.

Thsreafter

(

that ís, begi^^ng January t of

the followì^g year),

there sha l l be interest at the p

me lending rate, and this

ís also recoupable.

9.

Annual guáâ^tces aid royalties

(if D.C. ís filly

recouped

}

are paíd fnr the

dun^ôn of U.S: copy

ght af Actéon Comics

No. 1. However for motion

píctuê and television gôdu^t released near the end of the

[

ertn, ro a ies

will contínus to be paid

as follows

: (

aj Foy ^ motion ^ícture released near

the end af the tern

, royalties shall be pad for five years from the initial

theatríca^ release é

ve^ íf some part ^f

that five year pc

od is atte^ the CJ.S.

copy

ght

expires,

(

ü) far television series , royalties will bé paíd though

the full first rug o£ the se

es

, plus three years t lieêafte^ (

so as to pick up ac

least the fast sy dícatíon sale), even if that period ís after the U.S.

copy

ght

tec^^ expires , and (c

)

for other substantial proj^ts

(akin to

motío^ píciuê and televisío^ projects

),

royalties shall be paid for five years

from the initial theatrical rele ase

ofsuch prö^ëct,

sven íf some part of that

ftveêaz period

is after the J.S. co^^^

ght

expires.

C. Otl

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er Te

τ

s

t. The Siegel Family would Ø^sfer all of its

ghts ín the "S perman" and

"Spectré' properties

.(

i^cluding "S^per boy

"),

resulting ín 100% ownership

to .

D.C. Comics,

as behveen the Siegel

Family and D.C. Comics.

C

GANG, ^^YRE, RAMER ót BR^7WN, (NC.

lohn A, Sehulnân, Esq.

October 19, 2001

236(72.[

If Far

any legal ^r^so^

,

there caôt be a transfer of all

ghts nt this time,

ever^thíng ín thisdeal^ppl

ês a s a prepayment

to any future

transfer ,

except $

í O0,000 per

year would

not be applicable agaí^st the compe^satíon

(if any} fog a fi^tttre hansF er

.

This would nót result ìn addítío al monies

upon perfecting the "Spe^tê

"

te^miâfio^

.

Rather, and by way

of example,

í^ the ^nlike^y situation that She law cha

ges

,

aid this â^sfer is somehow

GTRB 03



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lohn A. S

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Oatobe

(9, 2041

ínval'^dáted o^ limïted by aperatîon af law, and theré is a futwe court

ûdgme^t agaí^st I7 .C. Camüs, ^hís deaf Ovnuld apply against the amount of

such judgem^^^ excøpt to Wø ^xrent af $IOQ,Q00 per yeas For the sake of

cla^íty, this pravísio^ wí11 n at i^^ any cí^cumstance reduce the mo nícs due

ø Sïegøl Fa^^íly undee this desi.

tJntiC the øxpir^tion of the .5. capy

ght £or Action Camícs No_ 1, thøre

wit[ be á crcdít on "Superman

comas sad other publications

,

movíe^ and

t^løvisia^^ pôgráms that reads: "B ^ Specie A ^â^geme^t with the Jerr y

Síegøl Family". The síu and placement of credit is to he í^ I^.C. Comics'

dìsøretío^.

4.

D.C. shill accord cêdít along the lines of"Supe^^â^ created by Je^y

Síegel and Joe Shustør", "Created

by Jerry

Sôgel and Joø Shuster" ar

"B ased on the clâractørs created by Jemmy Siegel and Joe Shuster" or

"Supør

oy created b^ Jerry

Siegel

or "The Spectre created by 7e^^y Siegel

and Børnard Salley" (

as applícabíej oa motion îct^ês

(

main tíeles on

screen, paìd ads}, tetev^sío^ pingrams (mala titles), alt pu^liâ

ons, and on

a t otha^ works where edit to e^øatars ^^ customary.

5. Theaccountíng statcme^ts wilt be rendered Márch 31", and if royalty

payments are due for tØ pôvìous calendar

ye r

ê^ will be paid at the

same t ínê

{

along with the aûal guaranteø for the then present

yø

}

6. íx eespect of t íê mon ies dua under this

ghts deal, D.C. Comics will pay

dêctiy 47:5%t0 J^áê Sïegel

, 23.75%

ta Laura Síegel Larson,

23 75 °/a

to Michael Sïegel

,

and 5 %

to Cang, T^rø,

Ramer & Bmwn, Inc. (counsel to

the Síegel Family).

?. Joaê,

Laura ánd Michael cap assïgn o^ ^tberwise

dispose of aQ or part of

their monetary co^tâcmai entit lemen ts u^de^ this deal (athér than

íns^ra^ce ) üp to a maximum of

three tïmes each.

8.

^^.Ç. Comics

to provide mØícat and degyta insuran ce

for-Micâet and

Lamma and Laura'

s c(^íldê^ for so fan g

as they are minors. Laura

is also fo

be reimbursed fir the costs of medical

à^d dental insurance for her sad her

sons since November 2000.

236[72.1

c

a

a



^ÂNG,

TYRE,

RAMER & BROWN, INC.

John A.

Schulman, Esq.

Ocôber [9,200

DC Comics to provìd^ fh^ opportunity for the Síegel Family ta he ïnfowned

about major developments

{

^.^., motion p^c

^res

,

t^êvísio^ pôgâms,

theme park àmactíons

,

major ctâ^ge^ plann ed i^ publications

},

and the

Si^gci Family wil[ have a^ appartuníty to gwe its Wiput, but tt ^s daas not

s^ ta the I^v^l of a ^ro^sultatíon fight. Tbr Sïog^t Family will be info^rêd

of such developments early enough í^ the development process sa Wat

eir

apportu^íty to gîve input ís meaníngihl.

1 0.

Síegel Family to have full audit rights. [ntâ-company transaaô^s wül ê .

c^veêd by "safö harbors" established at a level co^sìste^t with the Salkí^d

S^^pemân ú^ât^ícal

motion pícûr^

dial, the "Lois & Ctazk" television

program deal, the WS Televísia^ Animation deal, aid We existí^g fee

arrangements

with Warner $ros. Co^^sum^r Products. There wilt be a^

expedítod dispute resolution pôced^re f^c ^halkng^ng intro-company deals

w^ích fall ouisíd^ the safe hazbors. D.C. would also íncludo í^ the "safe

harbors" the Salkí^d a^ other

deals as

they may be reduced, but only ^í)

where another ct aract r of comparable

stature co "Supermagi ' (e.g.,

"Batman") is used ín a ômparabte

ma nne r

ín coêctïon with the same

projeat; (ir} on a prorata basis with the adjustment ín the other character's

ghØ deal, and (^ü) ín all events, Wc reduction shall ê

o less Way SO% ar

We o

gíât

gttts deal.

1 ^.

At the end of the U.S. Copy

ght term, the Sîege] Family agrees that ít will

not exploit the Property, even tâugh ít ^s ín the public domain.

1 2.

The Siegel Famïly wau^d agree ro execute furtøer documents, aged D.C.

Comes

would be appointed as at torney

-

ín-fact to execute sucà documents

íf the Siegel Family faits ta do so within a reasonable pe^íod of ^íme.

1 3.

Síegel Famïly would got make any waânti^s as to the nature of rights, but

would êprese^t that they bave not transfeêd ^íê rights to any party. The

Síegel Famí[^ would,agree Wat thore will be no interference with the

Supe^nan

gí^ts; or disparagement of D,C. Comics. D.C. Carmes and

AOL Time Wa^^^

agree n ot to díspaâge the Síegel Fa r^ìly,

I4.

Pull E&O and g^êral liability coverages, and Bull i^demnitíes foi Joanne

Síegel, Lauri Síegel Larson, and Míehaei SíogeI against líab^líty for DC or

affiliate aetìons.

236172.1

GTRB 03



GANG , TvR^,

RAMER & $ROWN, I N C .

Tahn A.

Schuléna^,

Esq.

öctober t9, 200t

Page ^

It ^s also

ageced

that Joanne's widow

'

s êne fit^

(

ineludíng bath payments and ï^s^â^ce),

aro to ô^tínue for her lí fe

, aid will not be heated as an advance agaí^st this dead and aye not

recoupable

from this deal.

Jahn, íf there is any aspeat

of the above that ís somelâw misstated, please Iet me know by

Mø^da^ at 2:00, as I will be out oféhe office

and tíkely ^íff^cu^t to reach-far the fol[owí^g

four weeks.

M any thanks for help and

patíe^^^ ín reaching this manuê^t^^ accord.

Sincerely,

G A N G ,

^ v ^ E , í^ A ^ v Ø ^

BROWN, INC.

Ke4í^ S.

Marks

=

K5M : 1)1

co :

Jaanê Siegei

Laura Síeg^l Larsen

Bûê Ramer

Don Eutso^^

236í72 t

c

october 19, 2001 letter from the siegels to dc comics

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