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Octo6ee14,200
1^l^IL
1 ^ '^COP^Fit ^ ^^ __^^
^T
lnl^ A. 5c^ulma^, Es l.
Excufve clcc P esid^UCrenral Counsel
Wamee Hos. Pemres
OOO W^mce Hou e a d
Mai^ Admi^strato, Raom 226
[3urbank, CA 41522-Ot)22
Re
Deaz John:

This is co co^f^m^ ow [elepho^e conversaon of October !9, 2001. The Siegel Family
(tluough Joa^me Segel and L,au^ Sie$e Larson, the majorry owners of the trmi^ated copy ^ght
interests} has accepted D.C. Gmcs offer of October I6, 200I n ^espe t of the "Supe^^a' and
"Spectre" properties. The ^e^ns are as follows:
o

A.
1.

'tia^s.
"The Property" means all Superman, 5uperboy and related p^opeeties
(nctudng, for example, Superg^l, Steol, Lois & Ci^k and Smaltvlle),
and the Spectre property, and ^^cludes all pre- and post-^e^n^at^o^ works
(inciudng ^e so-called 5upec^a^ library), e ^aracce^s, names a^d
hadem^ks reIatng to the Property.
"Supernr^^/Spect^e Gross Revenues" means DC Comcs' worldwide gross
revenues de^ved from the Property, xdudng only revenues de ^ved from
D.C. Comic`s pubticato^s.

B.

Fi^angial Te^^s.

1.

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

236!72.!

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C^ANCw, TYRE,' F{AMER & ORVWN, INC.

John A. Sc^utman, Esq.
^etober19,2aa1
Page 2
2: '

A ao^-remmable, non-recoupabl ^ sgn^g b^nus of t,000,000.

3.

D.C. Comics w11 forgv^ the 5250,000 advance from last ^e^-stated
ad^erwsc, that payment will gat r^dus the adva^s^ arbo^us, narshall it
b^ recoupable {co^kary t Paragraph 3 of the January 12, 2001 ltter
agrceme^t}.

4.

Thera will be an a^ual guarantee of $500,040 der year payable for 10

yeazs beginning March 31, 2002. 'The an^uai g^^ata^te^ is recoupable
from royalty payments (under S and ^ beinw}. Tie a^ual guarantee is
paid Mars^ 31" of each yeaz. If at the end of the a^uai guarantee pe ^od
(:e., LO' years}, D.C. ^s un^ecouped, the a^ual guarantee will b^ reduced
t^ $I00,000 or 2S% of the ava^age royalties for tl^e previous three yeas
(resamputed cash year}, wt^ichwe^ s greater (for so long as D.C. is
^nrecouped}. If D.C. is ^eco^^ped, t^e^ the a^uat guarantee will be 7S%
of tie averago royalties for the previous three years, whc^ s recor^tputed
each year.

5.

A ^yatty of ^f^ of Supern^an/Spectre Gross Revenues. Tis applies

(without limitation} to the use of the entire Property, including the so-called
Superman h^ary , ^ any and all media now o^ ereafter k^ow^ (excluding
DC Camcs pubcat^^s}, ^ ron mers^a^dse and n promotions!
campaigns. Tis ^^yalry applies whey the Property s used atone or s
lsensed for matio^ p^mr and t^levisan pro ^s i accocda^ee with the
"safe ^^^" motion picture and television deals discussed ^n Pazagraph
C(IO}, Ths ^% roy^hy witl be adjusted pro-rata ^he^ the P^pe^ty s used
u co^ju^cto^ with ^t^er baoh characters (other than n a "cameo" type of
appearance), buy in no event less tha^.31 ex
tat the^o^alty an ^e
fu^tlser reduced to {a) I.S! in the,case of Justice League of Aine ^sa,
"Superf^ends'" and "Superhems" me^^han^se aid icensng, and (b} 1lo i^
e^t^aordnary cases suc^ as D.C. ComcslWam^r Bros. overall lcensa to
Six Fiags (wi^ch involves numems characters, ^cludag D.C. Come's
characters ad Looney Tonnes characters}'.

^.

A ^o^alty of 2^ of the cover p^ce of DC Co^^cs' publications. Tits

^ This redueon would nit apply ^o a license fora "Supe^mari 'specific ride o^ atction.

^6^2.

GTRB 0303

GANG, ^^YRE, RAMER t BR^7WN, (NC.

lohn A, Sehuln^an, Esq.
October 19, 2001
Page 3

royalty applies when the Property s used alone, and will be adjusted p^rata when the P^pe^ty s used n co^junc^on with other comic book
chawcters (o^tl^er than ^ a "cornea" type of appea^anc^ ), but n ^o event
less than O.5%.
Receupment 6egus as ofJanary i, ?A06.
8.

Du^^g th first calendar yer n which advancestguara^teed payments are

made there s11 be ^o interest . Thsreafter (that s, begi^^ng January t of
the follow^g year), there shall be interest at the p^me lending rate, and this
s also recoupable.

9.

C.

"

Annual gu^a^tces aid royalties (if D.C. s filly recouped} are pad fnr the
dun^^on of U.S: copy^ght af Acton Comics No. 1. However for motion
pctu^e and television g^odu^t released near the end of the [ertn, ro^a^ies
will contnus to be paid as follows : (aj Foy ^ motion ^cture released near
the end af the tern, royalties shall be pad for five years from the initial
theatrca^ release ve^ f some part ^f that five year pc^od is atte^ the CJ.S.
copy^ght expires, () far television series , royalties will b pad though
the full first rug o the se^es, plus three years tlie^eafte^ (so as to pick up ac
least the fast sy^dcaton sale), even if that period s after the U.S.
copy ^ght tec^^ expires, and (c) for other substantial proj^ts (akin to
moto^ pciu^e and televiso^ projects), royalties shall be paid for five years
from the initial theatrical release ofsuch pr^ct, sven f some part of that
ftve^eaz period is after the J.S. co^^^^ght expires.

Otler Te^^s
t.

The Siegel Family would ^sfer all of its ^ghts n the "S^perman" and
"Spectr' properties .(i^cluding "S^perboy "), resulting n 100% ownership
to. D.C. Comics, as behveen the Siegel Family and D.C. Comics.
If Far any legal ^r^so^ , there ca^ot be a transfer of all ^ ghts nt this time,
ever^thng n thisdeal^ppl ^es as a prepayment to any future transfer,
except $ O0,000 per year would not be applicable aga^st the compe^saton
(if any} fog a fi^tttre hansFer . This would nt result n addto^al monies
upon perfecting the "Spe^t^e " te^mi^afio^. Rather, and by way of example,
^ the ^nlike^y situation that She law cha ^ges , aid this ^a^sfer is somehow

236(72.[

GTRB 0304

VA ^V3 ^ t 7FiC^ 17 APAFE'{ CX L7fi ^^VfV ^^C.

lohn A. Shulma^, Ss.
C

Oatobe^ (9, 2041

Page 4
nval'^dted o^ limted by aperaton af law, and ther is a futwe court
^udgme^t aga^st I7 .C. Cams, ^hs deaf Ovnuld apply against the amount of
such judgem^^^ excpt to W ^xrent af $IOQ,Q00 per yeas For the sake of
cla^ty, this pravsio^ w11 nat i^^ any c^cumstance reduce the moncs due
^ Segl Fa^^ly undee this desi.
tJntiC the xpir^tion of the ^.5. capy ^ ght or Action Camcs No_ 1, thre
wit[ be crcdt on "Superman" comas sad other publications , move^ and
t^lvisia^^ p^ogrms that reads: "B^ Specie! A^^a^geme^t with the Jerry
Segl Family". The su and placement of credit is to he ^ I^.C. Comics'
dsreto^.
4.

D.C. shill accord c^edt along the lines of"Supe^^^a^ created by Je^y
Segel and Joe Shustr", "Created by Jerry S^ogel and Jo Shuster" ar
"Based on the cl^aractrs created by Jemmy Siegel and Joe Shuster" or
"Supr^oy created b^ Jerry Siegel " or "The Spectre created by 7e^^y Siegel
and Brnard Salley" (as applcabej oa motion ^ict^^es (main teles on
screen, pad ads}, tetev^so^ pingrams (mala titles), alt pu^li^a ^ons, and on
a!t otha^ works where edit to e^atars ^^ customary.

5.

Theaccountng statcme^ts wilt be rendered Mrch 31", and if royalty

payments are due for t p^ovous calendar year, ^e^ will be paid at the
same tn^e {along with the a^ual guarante for the then present ya^}.

6.

x eespect of t^e monies dua under this ^ ghts deal, D.C. Comics will pay
d^ectiy 47:5%t0 J^^e Segel, 23.75% ta Laura Segel Larson, 23.75 /a
to Michael Segel , and 5% to Cang, T^r, Ramer & Bmwn, Inc. (counsel to
the Segel Family).

?.

Joa^e, Laura nd Michael cap assgn o^ ^tberwise dispose of aQ or part of

their monetary co^t^acmai entitlements u^de^ this deal (athr than
ns^ra^ce) p to a maximum of three tmes each.

8.

^^.. Comics to provide mcat and degyta! insurance for-Mic^aet and

Lamma, and Laura's c(^ld^e^ for so fang as they are minors. Laura is also fo
be reimbursed fir the costs of medical ^d dental insurance for her sad her
sons since November 2000.

236[72.1

c^^^ a^as

^^ANG, TYRE, RAMER & BROWN, INC.

John A. Schulman, Esq.
Oc^ober [9,200!
Page 5
DC Comics to provd^ fh^ opportunity for the Segel Family ta he nfowned
about major developments {^.^., motion p^c^^res, t^^evsio^ p^og^ams,
theme park mactons , major ct^a^ge^ planned i^ publications }, and the
Si^gci Family wil[ have a^^ appartunty to gwe its Wiput, but tt^^s daas not
^ s^ ta the I^v^l of a ^ro^sultaton fight. Tbr Sog^t Family will be info^r^ed
of such developments early enough ^ the development process sa Wat ^eir
apportu^ty to gve input s meanngihl.
10.

Segel Family to have full audit rights. [nt^a-company transaa^o^s wl ^e .

c^ve^ed by "saf harbors" established at a level co^sste^t with the Salk^d
S^^pem^an ^^at^cal motion pc^ur^ dial, the "Lois & Ctazk" television
program deal, the WS Televsia^ Animation deal, aid We exist^g fee
arrangements with Warner $ros. Co^^sum^r Products. There wilt be a^
expedtod dispute resolution p^oced^re f^c ^halkng^ng intro-company deals
w^ch fall ouisd^ the safe hazbors. D.C. would also ncludo ^ the "safe
harbors" the Salk^d a^ other deals as they may be reduced, but only ^)
where another ct^aract^r of comparable stature co "Supermagi ' (e.g.,
"Batman") is used n a ^omparabte manner n co^ecton with the same
projeat; (ir} on a prorata basis with the adjustment n the other character's
^gh deal, and (^) n all events, Wc reduction shall ^e ^o less Way SO% ar
We o^g^at ^gttts deal.

1 ^.

At the end of the U.S. Copy^ ght term, the Sege] Family agrees that t will
not exploit the Property, even t^augh t ^s n the public domain.

12.

The Siegel Famly wau^d agree ro execute furter documents, aged D.C.
Comes would be appointed as attorney - n-fact to execute suc documents
f the Siegel Family faits ta do so within a reasonable pe^od of ^me.

13.

Segel Famly would got make any wa^anti^s as to the nature of rights, but
would ^eprese^t that they bave not transfe^ed ^^e rights to any party. The
Segel Fam[^ would,agree Wat thore will be no interference with the
Supe^nan ^ g^ts; or disparagement of D,C. Comics. D.C. Carmes and
AOL Time Wa^^^ agree not to dspa^age the Segel Far^ly,

I4.

Pull E&O and g^^eral liability coverages, and Bull i^demnites foi Joanne
Segel, Lauri Segel Larson, and Mehaei SogeI against lab^lty for DC or
affiliate aetons.

236172.1

GTRB 0306

GANG, TvR^,

RAMER & $ROWN,

INC.

Tahn A. Schulna^, Esq.

ctober t9, 200t
Page ^

It ^s also ageced that Joanne's widow 's ^enefit^ (ineludng bath payments and ^s^^a^ce),
aro to ^o^tnue for her lfe , aid will not be heated as an advance aga^st this dead and aye not
recoupable from this deal.
Jahn, f there is any aspeat . of the above that s somel^aw misstated, please Iet me know by
M^da^ at 2:00, as I will be out ofhe office - and tkely ^ff^cu^t to reach-far the fol[ow^g
four weeks.

Many thanks for help and pate^^^ n reaching this manu^e^t^^ accord.
Sincerely,

GANG,

^'v^E, ^A^v^ & BROWN, INC.

By

Ke4^ S. Marks

K5M:1)1
co:

Jaan^e Siegei
Laura Seg^l Larsen
B^u^e Ramer
Don Eutso^^

l=

23672.t

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