Document:

Exhibit
10.1

 

Portions
of this Exhibit 10.1 marked by a [__] have been omitted pursuant to a request for confidential treatment filed separately with
the Securities and Exchange Commission.

 

PARTNER
AGREEMENT

 

Partner
Agreement (the “Agreement”) is entered into by and between The Estate of Marilyn Monroe LLC (hereinafter “ABG”),
a Delaware limited liability company, and Pulse Evolution Corporation (hereinafter “Partner”), a Nevada corporation,
and is effective on October 1, 2014 (“Effective Date”).

 

1.
Services. Partner will perform the services (“Services”) and create and deliver the deliverables (“Deliverables”)
as specified on Exhibit A, for ABG. Partner shall respond promptly to all ABG inquiries regarding the Services, and shall provide
written progress reports as requested by ABG.

 

2.
Project Development. Partner will identify and develop various entertainment projects (“Project” or “Projects”)
to exploit a computer-generated likeness of Marilyn Monroe (“Virtual Marilyn”), which would be created by Partner
should the Project provide sufficient capital for such purposes, representing the photo-realistic digital likenesses of the late
celebrity, whose likeness, appearance and publicity rights are controlled by ABG.

 

3.
Advances & Royalties. In consideration for the rights granted to Partner, Partner has agreed to guarantee ABG certain
minimum sums, as set forth in Exhibit A, as an advance against the Royalties. Subject to the terms of the Agreement, and Partner’s
performance hereunder, ABG shall pay Partner the Partner IP Royalty (as defined in Exhibit A) and Partner shall pay ABG a Development
Royalty (as defined in Exhibit A).

 

4.
Ownership

 

	 	(a)	Intellectual
    Property Rights. For purposes of this Agreement, “Intellectual Property Rights” shall mean any and all proprietary
    rights of any kind, tangible or intangible, now known or hereafter existing, including without limitation copyrights, neighboring
    rights and moral rights; trade secret; trademark; and patent and other intellectual property rights, and all registrations,
    and applications thereof now or hereafter in force throughout the universe.
	 	 	 
	 	(b)	Work
    For Hire. Partner acknowledges that all Services performed by Partner (including, without limitation, any and all consultants,
    employees, persons or entities engaged by Partner or rendering services to or through Partner) are at the direction of and
    specifically for the use of ABG. All Deliverables created or performed by Partner shall constitute Works Made For Hire under
    the copyright laws of the United States, and ABG shall own full and exclusive rights in all such Deliverables. If Deliverables
    are deemed not a Work Made for Hire, then Partner hereby transfers, assigns and conveys all rights, title and interest (specifically
    excluding any intellectual property that is owned by partner and can be separated from ABG, intellectual property, hereinafter
    defined as “Partner Property”) in and to the results and proceeds of the Services and Deliverables to ABG and
    ABG shall own all Intellectual Property Rights contained therein. Partner agrees without further consideration to execute,
    and to cause any and all consultants, employees, persons or entities engaged by Partner or rendering services to Partner to
    execute any document reasonably requested by ABG to further evidence or attest to the vesting of such rights in ABG. Partner
    shall and hereby does waive, to the maximum extent permitted by law, the benefits of any provision of law known as droit
    moral or any similar law in any jurisdiction, including 17 U.S.C. §106A, and agree not to permit or prosecute any
    action or suit on the grounds that the work product or Deliverables as used by ABG or any other party constitutes an infringement
    of Partner’s droit moral. For the avoidance of doubt, ABG shall not be able to license any Partner property to a
    third party without the consent of Partner for commercial purposes.
	 	 	 
	 	(c)	Projects
    Developed. ABG will enter into license agreements with Targets, and Partner will enter into Development Agreements with Targets
    the funding for which shall be borne by third-parties or Targets, such as production companies, brand sponsors and/or financial
    investors. ABG and Partner will not be responsible for the animation and production costs related to the development and/or
    production of Projects. In the event either or both of such parties desire to become investors in Projects, such investments
    shall be subject to separate agreements.
	 	 	 
	 	(d)	Partner
    Materials. Partner shall retain ownership of the technology, materials and media which are separable from ABG Property and
    are used in the performance of Services and the execution of Projects, including but without limitation development done directly
    for Targets, and/or creation of Projects (“Partner Materials”). ABG shall be entitled to use the Partner Materials
    on a perpetual, irrevocable, assignable, sub-licensable, worldwide basis in or in connection with the ABG Property subject
    only to ABG paying Partner the Partner IP Royalty.

 

    	1

    	 

    

 

	 	(e)	ABG
    Materials. ABG agrees to provide Partner with the information, and material listed on Exhibit A (the “ABG Materials”).
    ABG hereby grants Partner a limited, nonexclusive, license to use, copy, modify and create derivative works based on the ABG
    Materials solely as the same is necessary for Partner’s performance of Partner’s obligations under this Agreement
    and provided that all such use, copying and modification shall be in strict accordance with ABG’s instructions and for
    the sole benefit of ABG. ABG reserves all rights not expressly granted herein. Partner agrees that it shall not, by virtue
    of this Agreement, acquire any rights in any Deliverables or ABG Materials or any other asset or property of ABG, whether
    tangible or intangible, and whether or not created by Partner or Partner Group (collectively, “ABG Property”),
    and if it has acquired such interest, it hereby assigns such interest back to ABG. Partner agrees not to assert any rights
    inconsistent with ABG’s ownership of the ABG Property. Subject to ABG’s prior written approval as to the content
    and timing, Partner may promote the relationship created by this agreement, on Partner website, social media accounts and
    prospective client pitch materials during the Term, and only in pitch meetings after expiration of the Term. In no instance
    shall Partner reveal the business terms contained in this Agreement or any Confidential Information (as defined below). Partner’s
    use of any materials shall be subject to Partner’s clearance of all third party rights (if applicable) and shall be
    without any warranty from ABG. During the Term and at all times thereafter, ABG will not attack any right, title or interest
    Partner has in or to any Partner Property.
	 	 	 
	 	(f)	During
    the Term and at all times thereafter, Partner will not attack any right, title or interest ABG has in or to any Intellectual
    Property, including, without limitation, the rights to any persona and related trademarks, including, without limitation the
    right of publicity and/or any rights arising under Section 1125 of the Lanham Act or any other similar law. During the Term
    and at all times thereafter, Partner will not misuse or bring into disrepute the name and character of ABG, the ABG Property
    or any of the affiliated or related entities or properties of either.

 

5.
Partner Warranties. Partner represents and warrants to ABG that (a) the Services shall be performed and the Deliverables created

 

(i)
in accordance with ABG’s specifications; (ii) in a professional manner, using the highest standards of workmanship, care,
good faith and integrity; and (iii) in accordance with all applicable laws, ordinances, regulations and orders, including without
limitation federal, state or local laws of the United States or any other country, and Partner shall obtain all permits, registrations
and licenses required to comply with such laws, ordinances, regulations and orders; (b) none of the Deliverables, or any part
thereof will (i) contain libelous, injurious or unlawful material; or (ii) infringe the copyright, patent, trademark, trade name,
trade secret or other proprietary rights of any third party; (c) the Deliverables and Services are free and clear of any and all
mortgages, liens or other encumbrances; and (e) neither the execution of this Agreement nor the performance of Services or delivery
of Deliverables violates or will violate any contractual right of any third party.

 

6.
Insurance Both parties shall procure and maintain insurance in an amount of at least one million dollars ($1,000,000 U.S.)
per occurrence and three million dollars ($3,000,000 U.S.) in the aggregate naming the other party as an additional insured, to
defend and protect the parties against third-party claims for personal injury, death, property damage, negligent design, other
liability claims or any advertising injury arising out of or in connection with the Services and Deliverables or either party’s
use thereof. In the event that any insurance policy required hereunder includes or permits a waiver of subrogation, such waiver
shall apply to the other party. In the event that such waiver is required by a third party agreement, then this Agreement shall
be deemed to require such waiver. Any claims covered by the other party’s insurance policies shall not be offset or reduced
in any amount whatsoever by any other insurance which either party may independently maintain. Either party shall notify the other
party of all claims regarding the results and proceeds of Partner’s Services and/or the Deliverables.

 

(ii)
Within thirty (30) days following the execution of this Agreement, both parties shall provide each certificates of insurance certifying
that the other party and any other entity specified by ABG, have been added as additional insureds to each of the insurance policies
set forth above. Before any proposed cancellation or material modification in the coverage the insurance carrier will give the
certificate holder(s) not less than thirty (30) days’ prior written notice thereof. Upon receipt of any such notification,
the certification holder shall, in their sole discretion, have the right, to: declare a material breach of this Agreement (which
must be cured prior to any insurance lapse or result in a termination of this Agreement which termination shall take effect on
the last day of coverage, notwithstanding any provision of this Agreement to the contrary) and/or the right, but not the obligation,
to purchase replacement insurance from an insurance carrier of their choice, and the applicable party agrees to pay all costs
thereof immediately upon request by the other, failing which they may deduct the cost from any monies payable to the other party
hereunder.

 

7.
Indemnity. Partner agrees to indemnify, defend and hold harmless ABG, against any third party claim, and to pay all costs
and damages arising out of such claim (including without limitation attorneys’ fees and court costs), loss or liability
arising out of or relating to (a) the Services or the Deliverables; (b) breach of any warranty provided in this Agreement; or
(c) to the extent caused by the Partner, including without limitation any claim that the Services or Deliverables infringe any
Intellectual Property Rights or any other right or interest of any third party. ABG agrees to provide Partner with notice of any
indemnified claim known to ABG, and to provide Partner with reasonable information and assistance, at Partner’s sole cost
and expense, relative to the defense of any such claim. Partner shall not settle any indemnified claim without ABG’s prior,
written consent. Partner waives any and all immunity under RCW Title 51 or other state workers compensation laws.

 

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8a.
Confidentiality. a) Both Partner and ABG acknowledge that during and prior to the term of this Agreement, both may have access
to information regarding the other party’s business which items confidential and/or proprietary, including without limitation
information relating to technical and financial information; actual or prospective (if known to Partner) clients, customers, business
partners, or investors (collectively “Business Contacts”); business and marketing plans; suppliers; business opportunities,
and current and anticipated products and services. Both parties agree that all such information, including information disclosed
prior to the date of this Agreement, and is the confidential trade secret property of such party (“Proprietary Information”).
Both parties acknowledge and agree that all Deliverables and work product hereunder are Proprietary Information. Both parties
agree not to (i) copy, use or disclose any Proprietary Information or any tangible or intangible work product containing or referring
to such Proprietary Information for any purpose except for the benefit of such party and as necessary for the performance of this
Agreement, and otherwise as authorized in writing by the disclosing party; (ii) take advantage of any business opportunity which,
as the result of access to Proprietary Information, either party knows or should know the other party may, or is likely to consider;
(iii) remove any Proprietary Information from the other’s parties premises without prior written permission from such other
party; or (iv) accept or solicit any work, services, goods, employment or other business if doing so could reasonably be expected
to negatively impact the other parties business relationship with a business contact. Both parties further agree that during the
term of this Agreement and thereafter, they will ensure that they will comply with all of the above restrictions on use and disclosure
of Proprietary Information. Disclosure of Proprietary Information to either party shall not require prior written permission,
provided that party advises each member of the receiving party that Proprietary Information is confidential and is not to be copied
or disclosed, and further provided that each member of Partner to whom Proprietary Information is disclosed executes an agreement
in favor of the other party, agreeing to be bound by the restrictions contained in this Agreement. Proprietary Information does
not include information that disclosing party can document is or has become available to the general public without restriction
and through no breach of any obligation by either party or any other person, or which was rightfully in the possession of the
disclosing party without restriction prior to its disclosure to the other party.

 

8b.
Exceptions to Obligation of Confidentiality. This Agreement shall impose no obligation of confidentiality with respect to
any portion of the proprietary Information received hereunder which is (i) now or hereafter becomes, through no unauthorized act
on recipient’s part, generally known or available; (ii) known to the recipient at the time recipient receives the same from
the disclosing party; (iii) hereafter furnished to recipient by a third party that does not have an obligation of confidentiality
to the disclosing party with respect thereto; (iv) furnished to others by the disclosing party without restriction on disclosure;
or (v) independently developed by Recipient without use of the Disclosing Party’s proprietary Information. Nothing in this
Agreement shall prevent the Recipient from disclosing Confidential Information to the extent the Recipient is required to do so
by the rules of an applicable securities market or exchange or is legally compelled to do so by any governmental investigative
or judicial agency or court pursuant to proceedings over which such agency or court has jurisdiction; provided, however, that
prior to any such disclosure, the Recipient shall (a) assert the confidential nature of the proprietary Information to the market,
exchange or agency or court; (b) promptly notify the disclosing party in writing of the requirement, order or request to disclose;
and (c) at the disclosing party ’s sole cost and expense, cooperate fully with the disclosing party in protecting against
any such disclosure and/or obtaining a protective order narrowing the scope of the compelled disclosure and protecting the confidentiality
of the information. Any proprietary Information that is disclosed under this Section shall otherwise remain subject to the provisions
of this Agreement.

 

9.
Exclusivity.  (i) Project development provided by Partner to Targets or ABG under the terms of this agreement
are exclusive for the first nine (9) months and then non-exclusive for the rest of the Term. ABG is permitted to engage any third
parties to render the same or similar Services. Nothing contained herein shall obligate ABG to use the Deliverables. Except for
the GMR set forth in Exhibit A, neither party makes any representation or warranty to the other about the popularity or success,
or revenue which may be derived from this Agreement. (ii) during the period of exclusivity ABG will not enter into negotiations
or agreements with regard to Marilyn Monroe with any third party company that is engaged in either holographic-like projection
technology or visual effects animation for Live Events and television advertising. 

 

10.
[__]

 

11.
Termination.

 

(a)
Automatic Termination for Repetitive Breach. If Partner breaches a provision of this Agreement, and subsequently breaches
the same provision a second time (a “ Repetitive Breach “), this Agreement shall be deemed automatically terminated,
with all amounts, including but not limited to any Guaranteed Minimum Royalties for the then-current-Term and any and all ABG
Development Royalties payable hereunder becoming due and payable immediately.. ABG shall provide written notice of the initial
breach.

 

(b)
ABG’s Right to Suspend or Terminate. ABG shall have the right to suspend its performance hereunder and/or terminate
this Agreement in its entirety upon the occurrence of any of the following events, including, without limitation:

 

(i)
The failure of Partner to make any payment required to be made under this Agreement, which failure is not cured within five (5)
business days of Partner’s receipt of written notice from ABG specifying the nature of such failure with particularity;
or

 

(ii)
The breach by Partner of any of its representations or warranties herein or the failure of Partner to comply with any of the other
terms of this Agreement or otherwise discharge its duties hereunder, and such breach or failure is not cured within fifteen (15)
days of Partner’s receipt of written notice from ABG specifying the nature of such breach or failure with particularity;
or

 

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(iii)
Any act of gross negligence or wanton misconduct by Partner, and such action is not corrected within ten (10) days of Partner’s
receipt of written notice from ABG specifying the nature of such action with particularity; or

 

(iv)
The making by Partner of an assignment for the benefit of creditors, or the filing by or against Partner of any petition under
any federal, national, state or local bankruptcy, insolvency or similar Laws, if such filing shall not have been dismissed or
stayed within sixty (60) day after the date thereof; or

 

(v)
The failure of Partner to generate the Minimum Net Revenue as set forth in the Summary of Commercial Terms with respect to any
Contract Year.

 

(vi)
Partner hereby acknowledges that Partner shall not have an opportunity to cure any material breach which by its terms, cannot
be cured, including, without limitation, any failure to make the Minimum Net Revenue; release of products using/including ABG
Property without prior approval from ABG; the use of Advertising and Promotional materials on or in connection with Deliverables
which were not approved by ABG; and/or the failure of Partner to assist with intellectual property maintenance in the manner provided
by ABG. For the avoidance of doubt late payments; and unintentional releases of products and promotional material by a third party
shall not be deemed an incurable breach.

 

(c)
Partner’s Right to Suspend or Terminate. Partner shall have the right to suspend its performance hereunder or terminate
this Agreement in its entirety upon the occurrence of the breach by ABG of any of its representations or warranties herein or
the failure of ABG to comply with the terms of this Agreement or otherwise discharge its duties hereunder, and such breach or
failure is not cured within thirty (30) business days of ABG’s receipt of written notice from Partner specifying the nature
of such breach or failure with particularity.

 

12.
Approvals, Quality Standards.

 

	 	(a)	Approval.
    “Approval(s)” or “Approved” shall mean ABG’s prior written consent, which may be given or withheld
    in ABG’s reasonable discretion.
	 	 	 
	 	(b)	Approval
    Rights. ABG shall have the right to approve all elements of the Deliverables and any advertising elements. All submissions
    under this Agreement shall be made in such a manner as ABG shall prescribe from time to time.
	 	 	 
	 	(c)	Partner
    shall create and submit to ABG, ideas, rough and final images. Partner shall not publicly disseminate any ABG Property or
    Deliverables unless and until ABG has fully and finally Approved the same. Each time Partner makes any change, the elements
    must be re-submitted for Approval.
	 	 	 
	 	(d)	Prior
    to the broadcast, publication, posting, public distribution and/or use thereof of sample concepts, designs and samples (“Advertising
    Element”) of any advertisement or other promotional material (each, an “Advertisement”) which is intended
    to be used in conjunction with the sales presentations by Partner, shall submit the Advertising Element to ABG for its Approval.
    Once an Advertising Element has been approved, Partner need not submit variations of that Advertising Element for re-approval
    when such variations are merely of size or date and the like; provided, however, that any substantive changes to the Advertising
    Element must be approved in advance pursuant to this Section 12.
	 	 	 
	 	(e)	Disclaimer.
    Partner acknowledges that it shall bear the responsibility for and expense of compliance with the Approval requirements hereunder.
    Partner further acknowledges that the Approval or disapproval of any Advertising Elements, Deliverables and/or ABG Property
    uses may be based, without limitation, solely on subjective aesthetic standards. This approvals process shall not be deemed
    a legal review, but purely as a process meant to verify that the use of the ABG Property has been done in a manner that complies
    with this Agreement. Any Approval shall not waive, diminish or negate Partner’s indemnification obligations to ABG herein.
	 	 	 
	 	(f)	Brandbook
    & Style Guides. ABG shall provide Partner with a brand book and/or Style Guide, which is subject to seasonal updates and
    other changes from time to time (“Style Guide”). Partner shall follow the rules set forth in the Style Guide.
	 	 	 
	 	(g)	Third
    Party Acts. Partner will use its best efforts to ensure that its subcontractors abide by the terms of this Agreement. All
    acts of any such subcontractors shall be deemed to be the acts of the Partner for all purposes of this Agreement.
	 	 	 
	 	(h)	Goodwill
    and Quality Standards. Partner acknowledges that, if the Deliverables or Advertising Elements are of inferior quality in material
    and/or workmanship, then the substantial goodwill, which ABG has built up and now possesses in the ABG Property, will be impaired.
    Accordingly, Partner warrants to ABG that the Deliverables and Advertising Elements will maintain the high standards, appearance
    and quality of the Approved versions. If there is a substantial or material departure from the Approved versions of anything
    using the ABG Property then ABG shall have the right, in the reasonable exercise of its sole and absolute discretion, to withdraw
    the Approval.

 

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	13.	Law/
    Jx / Dispute Resolution / Law: This Agreement shall be governed by the laws of the State of New York, without regard to its
    choice of law rules. The United Nations Convention for the international sale of goods shall not apply to Agreement. Jurisdiction:
    Partner consents to exclusive jurisdiction of and venue in the state courts located in New York, New York in connection with
    any suit or action arising out of or relating to this Agreement. Service of process may be sent by mail to Partner at the
    address set forth herein, and such service shall be deemed valid service of process. Partner hereby waives any right to object,
    on any basis, to the venue, forum and/or jurisdiction of the state courts located in New York, New York. Dispute Resolution:
    Prior to filing any action as aforesaid, the parties shall submit any dispute arising out of or relating to this Agreement
    to JAMS in New York, New York, with the selection of a mediator being made by the mutual agreement of the parties within 10
    days of either party’s notice of the intent to mediate the dispute. In the event that: (a) the parties are unsuccessful
    at mediation; or (b) the parties do not mutually agree on a mediator in the aforesaid time frame; or (c) either party fails
    or refuses to respond / appear, then the party requesting mediation may file in State Court in New York, New York. The prevailing
    party in any action or suit in law or equity brought to enforce or interpret the provisions of this Agreement shall be entitled
    to recover its costs and expenses incurred in connection with such mediation, action or suit, including without limitation
    reasonable attorneys’ fees incurred in all levels and proceedings, including settlement and appeal, in addition to and
    not in limitation of any other relief to which it may be entitled.
	 	 
	14.	Injunctive
    Relief. Notwithstanding the exclusive jurisdiction clause in Section 13 above, Partner acknowledges that breach of the confidentiality
    or ownership provisions of this Agreement would irreparably injure ABG, which injury could not adequately be compensated by
    money damages. Accordingly, Partner agrees that ABG may seek and obtain injunctive relief from the breach or threatened breach
    of any provision, requirement or covenant of this Agreement, in addition to and not in limitation of any other legal remedies
    and without posting bond therefore in any court in any territory. ABG may seek an injunction before any court of competent
    jurisdiction, not limited to a court located in New York, and Partner agrees not to contest the jurisdiction of any such court,
    nor assert, by way of motion, defense or otherwise, that the Agreement of the subject matter hereof may not be enforced in
    or by such court.
	 	 
	15.	Audit.
    Both Party’s shall keep and maintain accurate account books and records covering all transactions relating to this Agreement.
    Both Party’s are entitled to audit and inspect such records related to this Agreement at either party’s office
    during the term of the Agreement or after the term of the Agreement, but no more than once per statement, once per calendar
    year and upon thirty (30) days prior written notice. If either party or his representatives find a deficiency in the amounts
    paid for any period under audit, the audited party shall promptly pay audit discrepancy to the other party if such discrepancy
    amounts to [ ___].
	 	 
	16.	General.
    Headings are for reference only and shall not be of any effect in construing the contents hereof. Partner shall not assign
    or transfer this Agreement or any right or obligation hereunder, in whole or in part, without the prior written consent of
    ABG. Any attempt to assign or transfer by Partner without the written consent of ABG shall be void and of no force and effect.
    This Agreement, including any exhibits and attachments incorporated herein, contains the entire understanding of the parties
    as to the subject matter hereof, and may not be altered in any way except by an instrument signed by both parties. The provisions
    of this Agreement shall govern any Proprietary Information disclosed, Services performed or work product or Deliverables created
    prior to its effective date. If any provision of this Agreement is held to be illegal, invalid, or unenforceable, that provision
    shall be severed or reformed to the extent necessary to be enforceable, and the remaining provisions hereof shall remain in
    full force and effect. A waiver by either party of any provision of this Agreement must be in writing and signed by such party,
    and shall not imply a subsequent waiver of that or any other provision. Duplicate originals of this Agreement may be executed,
    each of which shall be deemed an original but both of which together shall constitute an Agreement. All notices permitted
    or required to be given under this Agreement shall be in writing and shall be deemed duly given upon personal delivery (against
    receipt) or on the fourth day following the date on which each such notice is deposited postage prepaid in the United States
    Mail, registered or certified, return receipt requested, to the address (es) set forth under each party’s signature
    to this Agreement, and otherwise as requested in writing by a party in accordance herewith.

 

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This Agreement
is accepted by each of the Parties as of the date executed by both parties below:

 

	The
    Estate of Marilyn Monroe LLC	 	Pulse
    Evolution Corporation
	100 West 33rd
    St, Suite 1007	 	10521 SW Village
    Ctr., Suite 201
	NY, NY 10001	 	Port St. Lucie
    FL 34987

 

	/s/
    Terri DiPaolo	 	/s/
    John C. Textor
	Authorized signature	 	Authorized signature

 

	Terri
    DiPaolo, COO & General Counsel	 	John
    Textor, Chairman
	Print name and
    title	 	Print name and
    title
	 	 	 
	10/6/2014	 	October
    6, 2014
	Date	 	Date

 

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EXHIBIT
A

 

This
Exhibit A is subject to the terms and conditions of that certain Partner Agreement (the “Agreement”) between The Estate
of Marilyn Monroe LLC (hereinafter “ABG”), a Delaware limited liability company, and Pulse Evolution Corporation (hereinafter
“Partner”), a Nevada corporation, dated October 1, 2014.

 

1.
Term:

 

		(a)	The
    “Initial Term” shall mean the period beginning on the Effective Date and ending December 31, 2019.

 

	 	(i)	“Contract
    Year 1” shall mean the Effective Date through December 31, 2015.
	 	 	 
	 	(ii)	“Contract
    Year 2” shall mean January 1, 2016 through December 31, 2016.
	 	 	 
	 	(iii)	“Contract
    Year 3” shall mean January 1, 2017 through December 31, 2017.
	 	 	 
	 	(iv)	“Contract
    Year 4” shall mean January 1, 2018 through December 31, 2018.
	 	 	 
	 	(v)	“Contract
    Year 5” shall mean January 1, 2019 through December 31, 2019.

 

	 	(b)	Provided
    that Partner is not in breach of the Agreement, and provided that Minimum Net Revenues of at least [___], Partner shall
    have one (1) option to renew the Agreement (“ Renewal Term Option “) on the terms set forth herein for
    a consecutive period of five (5) years (the “ Renewal Term ” numbered consecutively). Partner shall exercise
    its Renewal Term Option not less than three (3) months and not more than twelve (12) months in advance of the expiration of
    the Initial Term.

 

2.
The Initial Term and the Renewal Term are hereinafter individually and collectively referred to as the “Term”
and individually as a “ Contract Period “. For the purposes of the Agreement, a “ Calendar Quarter
” shall mean each of the following three (3) month periods during a given calendar year: from January 1 through March
31; from April 1 through June 30; from July 1 through September 30; and from October 1 through December 31.

 

3.
Description of Services provided by Partner during the Term: Partner will create and present sales presentations to third parties
(“Targets”), for use in the commercial exploitation of Virtual Marilyn in commercials and live entertainment. When
a Target enters an agreement with Partner, ABG and Target will work directly on a licensing agreement for the Intellectual Property
Rights, and Partner and Target work together on an agreement for Partner’s development services for the Project (“Development
Agreement”).

 

4. Launch
Fee and Royalties:

 

	 	(a)	Launch
Fee: Partner shall pay ABG a Launch Fee of One Million Dollars ($1,000,000) payable, in lieu of cash, in the form of Two Million
Eight Hundred Thousand unregistered, common shares (OTC “PLFX”) of Partner (“Equity Launch Fee Shares”)
issuable upon execution of this Agreement. Partner shall be obligated to file, and cause to become effective, a registration statement
with the Securities Exchange Commission, such that the Equity Launch Fee Shares will be fully registered and freely tradable no
later than April 1, 2015. ABG shall also be entitled to anti-dilution protection, calculated on a weighted average basis, reflective
of the imputed value of the Launch Fee of $0.35 per share. 
	 	   	   
	 	   	 Make-Whole
Provision: In the event the value of the Equity Launch Fee Shares is less than [One Million Dollars ($1,000,000), based on the
most recent 5-day average closing price as of April 1, 2015, or if for any reason the Equity Launch Fee Shares are not registered
and freely tradable as of April 1, 2015, ABG shall be entitled to exchange the Equity Launch Fee Shares for a cash payment by
Partner to ABG equal to One Million Dollars ($1,000,000)], such exchange right continuing for the benefit of ABG through December
31, 2015.  
	 	 	 
	 	(b)	Revenue
    Share of Target agreements: ABG to pay Partner [___] (“Partner IP Royalty”) and keep [___] (“ABG
    IP Royalty”) of [__] from deals with a Target that are secured by Partner during the Term.
	 	 	 
	 	(c)	Partner
    to pay ABG a [___] royalty (“ABG Development Royalty”) and keep [___] (“Partner Development
    Royalty”) of [__].
	 	 	 
	 	(d)	For
    purposes of this Agreement both Partner IP Royalty and ABG Development Royalties are collectively referred to as “
    Royalties “. All Royalties actually earned by ABG shall be used to recoup the balance of the GMR in each Contract
    Year, to the extent Royalties earned by ABG exceed the GMR, ABG shall be entitled to keep such excess.

 

    	- 7 -

    	 

    

 

	 	(i)	Either
    party will only be liable for payments to the other party in cases where payment is actually received from Target.
	 	 	 
	 	(ii)	As
    used herein the term “[___] Royalty Revenue” shall mean [__].

 

	 	(e)	All
    Royalties shall be paid to Partner within thirty (30) days after the conclusion of each Calendar Quarter.

 

5.
The “Guaranteed Minimum Royalty(ies)” for Partner to retain the rights to provide Services (also known as the “GMR(s)”)
shall mean non-returnable advances recoupable against Royalties due in the same Contract Year.

 

	 	(i)	For
    each Contract Year during the Term, the GMR’s payable to ABG by Partner shall be:

 

	Contract
    Year	 	GMR
	1	 	[___]
	2	 	[___]
	3	 	[___]
	4	 	[___]
	5	 	[___]

 

*
GMR for Contract Year 1 shall be payable [___].

 

	 	(i)	For
    each Renewal Term (if any): (A)) [___] of the GMR of the final Contract Year of the prior Contract Period
	 	 	 
	 	(ii)	In
    the event that the annual Royalties earned by ABG exceed the annual GMR paid by Partner under this Agreement, ABG shall retain
    the ABG Royalties.

 

	 	(ii)	Partner
    hereby acknowledges that the GMR is payable to ABG even if Partner fails to develop sell or market during the Term, and is
    a condition of ABG entering into the Agreement. Except for the Launch Fee set forth in Section 4 above, Partner shall pay
    the GMR to ABG [__]. In the events that the [__] Royalty exceeds the [__] portion of the GMR, Partner shall pay the Royalties
    in excess of the previously paid portion of the GMR to ABG [__].

 

6. “Minimum
Net Revenues” shall be defined as Gross Revenues received from Targets by ABG.

 

	Contract
    Year	 	Minimum
    Net Revenues
	1	 	[___]
	2	 	[___]
	3	 	[___]
	4	 	[___]
	5	 	[___]

 

	 	(a)	If
    [___] is earned in Net Revenues in Contract Year 5, Partner shall receive the right for one (1) five year option to
    renew the Agreement (“Renewal Term Option “). If Renewal Term is exercised, Minimum [___] Revenues for
    the Renewal Term shall be:

 

	Contract
    Year	 	Minimum
    Net Revenues
	6	 	[___]
	7	 	[___]
	8	 	[___]
	9	 	[___]
	10	 	[___]

 

7. Territory:
Worldwide

 

    	- 8 -

    	 

    

 

	The
    Estate of Marilyn Monroe LLC	 	(“Partner”)
    Pulse Evolution Corporation
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	 	 	 	 	 
	Printed Name:	 	 	Printed Name:	 
	 	 	 	 	 
	 	 	 	 	 
	Title:	 	 	Title:	 
	 	 	 	 	 
	 	 	 	 	 
	Date:	 	 	Date:	 
	 	 	 	 	 

 

    	- 9 -exhibit10_1.htm

Exhibit 10.1

 

AGREEMENT

 

This AGREEMENT (“Agreement”), dated as of April 21, 2015 (“Effective Date”), is entered into between the Pension Benefit Guaranty Corporation (“PBGC”), Evans & Sutherland Computer Corporation (“E&S”), and E&S’s wholly owned subsidiary, Spitz, Inc. (“Spitz”; E&S and Spitz collectively, the “Obligors”; and the Obligors, collectively with PBGC, the “Parties”).

 

Recitals

A.           PBGC is a wholly owned United States government corporation and agency established under 29 U.S.C. § 1302(a) to administer the pension plan termination insurance program created by Title IV of the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1301-1461 (2012) (“ERISA”).

B.           E&S is located in Salt Lake City, Utah and sponsored the Evans & Sutherland Computer Corporation Pension Plan (the “Plan”), which is a single-employer defined benefit pension plan covered by Title IV of ERISA.

C.           PBGC has perfected statutory liens against all personal and real property of each  Obligor under 26 U.S.C. § 430(k) and its predecessor statute on account of unpaid Plan contributions (the “PBGC Liens”).

D.           The Evans & Sutherland Computer Corporation Pension Plan Administrative Committee (the “Plan Administrator”) filed a distress termination notice for the Plan with PBGC under 29 U.S.C. § 1341(c) on January 7, 2013.

E.           By correspondence dated May 13, 2014, PBGC notified E&S that PBGC determined that the requirements for a distress termination were met.

F.           On April 21, 2015, the Plan Administrator and PBGC entered into an agreement:  (1) terminating the Plan under 29 U.S.C. § 1341(c); (2) establishing March 8, 2013, as the Plan’s termination date under 29 U.S.C. § 1348 (the “DOPT”); and (3) appointing PBGC as statutory trustee of the Plan under 29 U.S.C. § 1342(c)

G.           The Obligors are jointly and severally liable to PBGC for various liabilities under ERISA in connection with the Plan (the “ERISA Liabilities”), specifically unfunded benefit liabilities, due and unpaid Plan contributions, premiums, and interest and any penalties (as may be applicable) with respect to the foregoing.

H.           The Parties have reached an understanding to settle the ERISA Liabilities and all other liabilities relating to the Plan (except for those resulting from any violation of Part 4 of Subtitle B of Title 1 of ERISA (the “Fiduciary Breach Provisions”)) (the “Settled ERISA Liabilities”), and in conjunction therewith, are contemporaneously entering into intercreditor agreements with KeyBank National Association (the "KeyBank Intercreditor Agreement"),

  

  

  

E&S's secured lender, and with Bryn Mawr Trust Company (the “BMT Intercreditor Agreement”), Spitz's secured lender.

 

Accordingly the Obligors, jointly and severally, and PBGC agree as follows:

1.           Payments.  The Obligors shall pay $10.5 million to PBGC as provided in this Section 1.  The Obligors shall make a first payment of $1.5 million within ten days after the Effective Date and thereafter make twelve equal annual payments of $750 thousand each to PBGC (each payment individually, an “Installment,” and collectively, the “Installments”).  Prepayment is permitted without penalty.  The Obligors shall pay the remaining twelve Installments as follows:

 

          (a) $750 thousand on or before October 31, 2015.

 

          (b) $750 thousand on or before October 31, 2016.

 

          (c) $750 thousand on or before October 31, 2017.

 

          (d) $750 thousand on or before October 31, 2018.

 

          (e) $750 thousand on or before October 31, 2019.

 

          (f) $750 thousand on or before October 31, 2020.

 

          (g) $750 thousand on or before October 31, 2021.

 

          (h) $750 thousand on or before October 31, 2022.

 

          (i) $750 thousand on or before October 31, 2023.

 

          (j) $750 thousand on or before October 31, 2024.

 

          (k) $750 thousand on or before October 31, 2025.

 

          (l) $750 thousand on or before October 31, 2026

 

2.           Equity.  Within ten days after the Effective Date, E&S shall issue 88,117 shares of E&S treasury stock (the “Shares”) in the name of PBGC.

3.           Security.  On the Effective Date and in order to secure the Obligors’ payment of the Installments and performance of all of their other obligations under the Settlement Documents (as defined below) (all such payment obligations and other obligations, collectively, the “Obligations”):  (a) the Obligors shall enter into a security agreement with PBGC substantially in the form attached hereto as Exhibit A granting to PBGC a security interest on all of the Obligors’ presently owned and after-acquired personal property and proceeds thereof (the “Personalty Collateral”), free and clear of all liens and other encumbrances except those described therein (the “Security Agreement”); and (b) Spitz shall execute a mortgage in favor of PBGC substantially in the form attached hereto as Exhibit B (the “Mortgage”, and collectively with this Agreement and the Security Agreement, the “Settlement Documents”) on Spitz’s real property described therein (the

  

  

  

 

“Realty Collateral”, and collectively with the Personalty Collateral, the “Collateral”; all such liens on the Collateral, the “PBGC Lien”).

4.           Forbearance.  So long as no Event of Default (as defined below) occurs, PBGC shall forbear from taking any action to enforce the Settled ERISA Liabilities.

5.           Default                      .  Each of the following shall constitute an event of default (each, an “Event of Default”) under this Agreement:

 

a.           The Obligors fail to timely pay any Installment and such failure continues for ten days.

b.           E&S fails to timely issue the Shares to PBGC.

c.           The Obligors fail to perform or observe any other term, covenant, condition, undertaking or provision contained in this Agreement and such failure, if capable of being cured, is not cured within 30 days after written notice thereof from PBGC.

d.           Spitz incurs obligations to The Bryn Mawr Trust Company totaling more than $6,500,000 of principal.

e.           A “Default” as defined in the Security Agreement, or an “Event of Default” as defined in any Mortgage(s), occurs.

f.           Any representation or warranty by any Obligor herein or in any other Settlement Document is materially false or misleading when made.

g.           An Obligor:  (1) becomes insolvent; or (2) is unable, or admits in writing its inability, to pay debts as they generally mature; or (3) makes a general assignment for the benefit of creditors or to an agent authorized to liquidate any substantial amount of its property; or (4) makes or sends notice of a bulk transfer; or (5) files, or consents to the filing against it of a petition or other papers commencing a proceeding under Title 11 of the United States Code or any similar type of insolvency proceeding under domestic or international law (an “Insolvency Proceeding”); or (6) has an Insolvency Proceeding filed or instituted against it which has not been dismissed within 60 days after the commencement of the Insolvency Proceeding, or in which an order for relief has been entered against it; or (7) applies to a court for appointment of a receiver, trustee, or custodian for any of its assets; or (8) has a receiver, trustee, or custodian appointed for any of its assets (with or without its consent); or (9) dissolves, suspends, or discontinues doing business.

h.           A default under any agreement, note or other evidence of indebtedness of any Obligor to any creditor that is secured by liens on any Collateral that are or are claimed to be senior to the PBGC Liens on such Collateral, where such default has continued for more than the original cure period, if any, with respect thereto, and such indebtedness is accelerated.

 

  

  

  

 

6.           Remedies; Tolling; Waivers of Suretyship Defenses.  Upon the occurrence of any Event of Default, PBGC may:  (a) declare all Installments immediately due and payable; (b) proceed to enforce the PBGC Lien on any or all of the Collateral; (c) exercise its statutory rights to enforce and collect the Settled ERISA Liabilities (less any Installment payments made hereunder) under Title IV of ERISA (including perfecting and enforcing liens under 29 U.S.C. § 1368), or (d) exercise any and all other remedies available under the Settlement Documents, at law or in equity.  Each and every period within which PBGC may commence a proceeding to collect any of the Settled ERISA Liabilities or liability resulting from any violation of the Fiduciary Breach Provisions or enforce any lien therefor, including each period under 29 U.S.C. §§ 1303, 1368, is tolled from and including the Effective Date to and including the Release Date (as defined below) (the “Tolled Period”).  No Obligor may assert or rely on any statute of limitations under any federal or state law as a defense against any proceeding commenced by PBGC to collect any of the Settled ERISA Liabilities or to enforce any lien therefor or to collect any liability for violation of any Fiduciary Breach Provisions, so long as such proceeding is commenced before the expiration of the applicable limitations period as tolled by the Tolled Period.  No Obligor may use the Tolled Period to assert or rely on the doctrines of waiver, laches or estoppel, or any other doctrine or defense constituting an avoidance of PBGC’s claims that is based on the time within such action was commenced by PBGC.  No remedy described herein is intended to be exclusive of any other right, power or remedy, and any such remedy will, to the extent permitted by law, be cumulative and in addition to every other right, power and remedy given hereunder, now or hereafter existing at law or in equity or otherwise.  The assertion or exercise of any right, power or remedy hereunder, or otherwise, will not prevent the concurrent or subsequent assertion or exercise of any other appropriate right, power or remedy.  No delay or omission of PBGC to exercise any right, power or remedy will impair any such right, power or remedy or constitute a waiver of any such right, power or remedy or an acquiescence in or waiver of any Event of Default.  Each right, power and remedy given by any Settlement Document or by law or equity to PBGC may be exercised from time to time, and as often as may be deemed expedient, by PBGC.  Each Obligor waives any and all defenses based on suretyship or impairment of collateral including, without limitation, all defenses described in Sections 37 through 45 of the Restatement (Third) of the Law of Suretyship and Guaranty, with respect to its obligations under any Settlement Document.  The Parties intend the preceding waiver to have the effects described in Section 48(1) of the Restatement (Third) of the Law of Suretyship and Guaranty.  The provisions of this Section are continuing and will survive the termination of this Agreement.

7.           Release.

a.      As soon as reasonably practicable after the 91st day after the perfection of all consensual liens granted to PBGC by all grantors in connection with the Agreement, if no bankruptcy petition has been filed by or against any grantor thereof prior to such 91st day, or, if a bankruptcy petition has been filed against any grantor prior to such 91st day and is contested by such grantor, as soon as reasonably practicable on or after the later of such 91st day and the date on which such bankruptcy petition is dismissed,

  

  

  

 

PBGC shall withdraw all lien notices with respect to the statutory liens it perfected on behalf of the Plan under 26 U.S.C. § 430(k) or its predecessor statute with respect to all real and personal property of such grantors.

b.      On the 91st day after the full payment of all Installments, if no bankruptcy petition has been filed by or against either Obligor before such 91st day (or, if a bankruptcy petition has been filed against such Obligor prior to such 91st day and is contested by such Obligor, on the later of such 91st day and the date on which such bankruptcy petition is dismissed) (such 91st day or, if applicable such date on which such bankruptcy petition is dismissed, the “Release Date”), PBGC will be deemed to have released the Obligors and any other members of the Obligors’ “controlled group” (as defined under 29 U.S.C. § 1301(a)(14)) as of the DOPT (individually, “Controlled Group Member,” and all such members, including the Obligors, collectively, the “Controlled Group Members”) from the Settled ERISA Liabilities.  Notwithstanding anything in this Agreement to the contrary, nothing herein releases any person or entity from any liability in connection with a violation of any Fiduciary Breach Provisions, and PBGC expressly retains any and all claims with respect to any such liability.

8.           Governing Law.  Except to any extent preempted by federal law, the laws of the State of Utah (without giving effect to its principles of conflicts of law) govern all matters relating to this Agreement.  Each Party:  (a) consents to the non-exclusive jurisdiction of the U.S. District Court for the District of Columbia and its appellate courts for all matters relating to this Agreement; (b) consents that any action or proceeding relating to this Agreement may be brought in any such court; and (c) waives any objection that it may now or hereafter have to the venue of any such action or proceeding in such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same.

9.           Entire Agreement.  Except to the extent of any references herein to any other Settlement Document, this Agreement constitutes the entire and final agreement between the Parties with respect to the matters provided for herein, and no other agreement or understanding exists between the Parties with respect to such matters.

10.           This Agreement may not be altered, amended, modified, or otherwise changed in any respect except by an instrument in writing executed by the Party to be charged with such alteration, amendment, modification, or other change.

11.           This Agreement may be executed in one or more counterparts and by different Parties on separate counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by emailed PDF file (to stanhecht@keightleyashner.com for Obligors; to Salembier.Cameo@pbgc.gov for PBGC) will be equally as effective as delivery of an original executed counterpart of this Agreement.

 

  

  

  

 

12.           If any provision in this Agreement shall be invalid, inoperative or unenforceable, the remaining provisions of this Agreement shall remain in effect if both the economic and legal substance of the transactions contemplated hereby are not materially affected in any manner adverse to either Party.  Otherwise, the Parties shall negotiate in good faith to rewrite any such provision so as to, as nearly and fairly as possible, approach the economic and legal substance originally intended.

13.           Construction.  The language used in this Agreement will be deemed to be the language chosen by the Parties to express their mutual intent, and no rule of strict construction will be applied against either Party.  Nor will any rule of construction that favors a non-draftsman be applied.  A reference to any statute will be deemed also to refer to all rules and regulations promulgated under the statute, unless the context requires otherwise.  In this Agreement, unless specifically otherwise provided or the context otherwise requires, the singular includes the plural and the plural the singular; the word “or” is deemed to include “and/or”; the words “including”, “includes” and “include” are deemed to be followed by the words “without limitation”; pronouns in masculine, feminine, or neuter genders include any other gender; and references to sections, exhibits or schedules are to those of this Agreement.  The words “herein,” “hereof,” “hereby,” “hereunder,” “herewith,” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited.  Headings and captions in this Agreement are included for convenience of reference only and do not constitute a part of this Agreement for any other purpose.

14.           Notices. All notices, demands, instructions, and other communications required or permitted under the Agreement to any Party (a “Notice”) must be in writing, will be effective upon receipt, and must be delivered by a nationally recognized pre-paid overnight delivery service.  Unless otherwise specified in a Notice sent or delivered in accordance with the foregoing provisions of this Section, Notices must be sent to the Parties as indicated below:

In the case of the Obligors, to:

David Bateman

President and CEO

Evans & Sutherland Computer Corporation

770 Komas Drive

Salt Lake City, UT 84108

With a copy to:

Stanley M. Hecht, Esq.

Keightley & Ashner LLP

One Metro Center

700 12th Street, N.W., Suite 700

Washington, D.C. 20005

and:

 

  

  

  

Jeffrey M. Jones, Esq.

Durham Jones & Pinegar

111 East Broadway, Suite 900

Salt Lake City, UT 84111

In the case of PBGC to:

 

Pension Benefit Guaranty Corporation

Office of the Chief Counsel

Attn: Cameo M. Salembier

1200 K Street, N.W., Suite 340

Washington, D.C. 20005-4026

15.           Authorization.  Each Party represents and warrants that it is authorized to enter into this Agreement.  Each signatory represents and warrants that he or she is authorized to execute this Agreement on behalf of the Party for whom he or she has signed.

 

16.           Advice of Counsel.  Each Party represents and warrants to each other that it has been represented and advised by counsel or has had full opportunity to be represented and advised by counsel with respect to the Settlement Documents and all matters covered by them.

17.           Costs.  Each Party shall bear its own costs and expenses, including attorneys’ fees, in connection with the preparation, execution, and delivery of the Settlement Documents, and in connection with the consummation of the transactions contemplated thereby.

18.           No Third-Party Beneficiaries.  This Agreement is intended to be and is for the sole and exclusive benefit of E&S, Spitz and PBGC, any other Controlled Group Members (but only with respect to Sections 4 and 7) and their respective successors and assigns.  Nothing expressed or mentioned in or to be implied from this Agreement gives any person or entity any legal or equitable right, remedy, or claim against the Parties under or in respect of this Agreement.

 

  

  

  

IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the Effective Date.

 

Evans & Sutherland Computer Corporation

 

/s/ David  Bateman

Name: David Bateman

Title: President & CEO

 

Spitz, Inc.

/s/ David  Bateman

Name: David Bateman

Title: President & CEO

 

Pension Benefit Guaranty Corporation

 

/s/ Dana Cann

Name: Dana Cann

Title: Director, Corporate Finance and Restructuring Department

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